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Product-Mix Strategies

Product-Mix Strategies. PRODUCT MIX. What are some Major Product Mix Strategies?. PRODUCT MIX AND PRODUCT LINE. The product mix is the full list of all products offered for a sale by a company. A product mix has two dimensions: Breadth (Width) - Different lines.

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Product-Mix Strategies

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  1. Product-Mix Strategies

  2. PRODUCT MIX • What are some Major Product Mix Strategies?

  3. PRODUCT MIX AND PRODUCT LINE • The product mix is the full list of all products offered for a sale by a company. • A product mix has two dimensions: • Breadth (Width) - Different lines. • Depth- Assortment within a line. • A product line is a broad group of products, intended for essentially similar uses and possessing reasonably similar physical characteristics.

  4. BREADTH (DIFFERENT LINES) Lawn mowers Gardening tools Lawn furniture DEPTH (ASSORTMENT WITHIN A LINE) Power rotary Rakes Chairs Power reel Hoes Chaise lounges Hand-powered Shovels Benches Various sizes and prices in redwood or aluminum with plastic webbing Each in various sizes and prices Each in various sizes and prices

  5. DEPTH SHALLOW DEEP NARROW WIDTH WIDE PRODUCT MIX ALTERNATIVES

  6. MAJOR PRODUCT MIX STRATEGIES • Expansion of Product Mix • Breadth- Mix extension. • Depth - Line extension. • Contraction of Product Mix • Breadth • Depth • Alteration of Existing Products • Positioning the Product • Position is the image that the product projects in relation to competitive products and to other products marketed by the company.

  7. POSITIONING - ATTRIBUTE

  8. Long Life Luxury Home Summer Cottage Luxury Home Furnishings Low Visibility Foreign Vacations Luxury Car Short Life PRODUCT POSITION IN THE “STATUS SYMBOL” MARKET High Visibility

  9. Has a Touch of Class a Car I’d Be Proud to Own Distinctive Looking Lincoln Cadillac Mercedes Porsche BMW Chrysler Buick Pontiac Oldsmobile Conservative Looking Appeals to Older People Has Spirited Performance Appeals to Young People Fun to Drive Sporty Looking Chevrolet Ford Datsun Toyota Dodge VW Plymouth Very Practical Provides Good Gas Mileage Affordable PERCEPTUAL MAP - BRAND IMAGES

  10. PRODUCT POSITIONING OF JEANS High Price Calvin Klein Sasson Jordache I1 (Status seeker) Lee Levi I2 (Dependable shopper) HighStatus Low Status Gap store brand I3 (Economizer) Low Price

  11. PRODUCT SPACE FOR THE CHICAGO BEER MARKET Light 8 Miller 5 9 2 7 B C 3 Hamm’s Low-priced High-priced A D Schlitz 1 Budweiser 4 6 Heavy

  12. COMPARISON OF POLISHES 10 Zymol 8 IMAGE 10 MothersMcGuires 6 Excalibur Blue Coral Price Polish 4 Eagle 1 Wax Shop NuFinish 2 Turtle Wax Rain Dance 0 10 4 6 8 Quality

  13. TRADING UP AND TRADING DOWN • Trading up: Adding a higher-priced, prestige product to a line in the hope of increasing the sales of existing lower-priced products. • Trading down: Adding a lower-priced item to a line of prestige products in the hopes that people who cannot afford the original product will want to buy the new one, because it carries some of the status of the higher-priced good. • Problems • May confuse buyers • Sales are at the expense of older products • May permanently harm company reputation

  14. PRODUCT DIFFERENTIATION AND MARKET SEGMENTATION • Product differentiation: Developing and promoting an awareness of differences between one company's product and those of competitors • Market Segmentation: To develop different products each one suited to one or more segments of the market.

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