Post on 19-Aug-2014
description
Product
ITEMS LINES
MIXES &
Companies often have
more than one product.
These products can be
broken down into items,
lines, and Mixes.
Product
LINE is a group of closely related
products manufactured by a
business
A
For Example The company Rubbermaid
has a product line of brooms.
Product
ITEM is a specific model, brand, or
size of a product within a line
of products.
A
For Example Armani’s Slim-Fit Suit in
Chintzed Wool, is just one
product from a line of suits.
Product
M I X is all the types of products a company makes or sells
A
For Example John Deere has a wide range of products for lawn care, farming, and construction.
Product
W I D T H is the number of different product lines a company is producing.
A
Product WIDTH
A company’s
Product WIDTH
is considered NARROW if it has few product lines.
A company’s
Product WIDTH
is considered NARROW if it has few product lines.
A company’s
Which benefits the company by being simple, cost efficient, consistent, and puts an ease on management.
For Example Pedigree could be considered to have a narrow product width because its product line is only food for dogs.
Product WIDTH
A company’s
Product WIDTH
is considered BROAD with the more product lines it has.
A company’s
Product WIDTH
is considered BROAD with the more product lines it has.
A company’s
Which benefits the company by appealing to more markets and adding competitive advantages.
For Example Johnson & Johnson have a broad product width because they have a many product lines including nutritional snacks, first aid and skin care products.
Product Depth The number of items
offered within each
product line.
For Example Adidas has a deep product mix because it offers many styles and sizes of shoes within their shoe product lines.
Why is this Important?
Businesses must plan their
product mix carefully because they
cannot offer all the products that
customers may want.
They have to find the product
mix that allows them to be
profitable in the market place