Product Line Vs. Product Mix | Bizfluent
For example product mix of Bajaj Company has more than items in various product lines, such as fans, bulbs and tubes, heaters, motorbikes, shooters. Understand the relationship between the product mix and the product line or lines of a company, and how to effectively monitor this mix. Let us take an example of P&G as a company and understand product mix. This will be not be.
The products are not exactly the same, but they typically share some of the same characteristics.
Product Mix, Product Line and Product Items
Product Mix The product mix of a company involves all of the products that a company has for sale. The product mix could include several lines of products or individual products that do not fall into a line.
For example, if a company owns a line of hygiene products and also owns a line of house cleaning products, all of those products together would constitute the product mix for the company.
Each line would combine with the other to come up with the total mix. Video of the Day Brought to you by Techwalla Brought to you by Techwalla Diversification Many companies focus on product mix because it helps them diversify their offerings.
Product Mix Decisions - Width, length, depth and consistency
Instead of focusing in on a particular type of product, a company may come up with a wide range of products to offer. This way, even if one group of products does not sell well, the other products can pick up the slack. In some cases, companies can get a product mix that is too wide and it ends up eating up resources that the company could have better used in other ways. Product-Line Pricing One of the potential applications of using a product line is to help with pricing.
When a company comes out with a line of products that are very similar to one other, it can use this to price the products effectively. For example, many companies use a "good, better, best" method of pricing products. It includes the total number of varieties or models offered by the company.
Let us define the term: In each product group, a number of varieties are offered.
The set of all these products main range and product varieties in each range can be said as product mix.
Product mix of a particular company includes major product lines. Product mix has various dimensions, such as: It refers to the total number of items in all the product lines in product mix.
For example product mix of Bajaj Company has more than items in various product lines, such as fans, bulbs and tubes, heaters, motorbikes, shooters, rich-show, processing machines, and many other ranges.
Product Mix Width or Breadth: It indicates the total number of product lines a company carries. For example, two wheelers including various models constitutes one of the product lines of Bajaj Company. It refers to a number of varieties in forms of sizes, colors, and models offered within each product line.
Product Mix decisions – Width, length, depth and consistency
It can be said as the average number of product items offered by the firm in each product line. It refers to degree to which different product lines are related in one or other ways. It indicates how closely various product lines are related. The consistency can be judged on the basis of production requirements, uses of products, distribution channels, or some other ways.
For example, product lines of Philips India Ltd. While Hindustan Machines and Tools produce wrist watches as well as tractors, it is called inconsistent product mix.
Difference between Product Mix and Product Line
Product line is a group of product items that can satisfy the same needs and wants, they have more or less similar features. For example, Bajaj Auto Ltd.
The similarity may be seen in one or more ways.
Product line consists of product items belonging to same class. The definition suggests following five ways the items are closely related: They function in similar manner.