What is Product Mix?

Product mix, also known as product assortment

or product portfolio, refers to the complete set of
products and/or services offered by a firm. A
product mix consists of product lines, which are
associated items that consumers tend to use
together or think of as similar products or
services.
Dimensions of a Product Mix

#1 Width
Width, also known as breadth, refers to the number of product lines
offered by a company. For example, Kellogg’s product lines consist of:
(1) Ready-to-eat cereal, (2) Pastries and breakfast snacks, (3)
Crackers and cookies, and (4) Frozen/Organic/Natural goods.

#2 Length

Length refers to the total number of products in a firm’s product mix. For
example, consider a car company with two car product lines (3-series and
5-series). Within each product line series are three types of cars. In this
example, the product length of the company would be six.
#3 Depth
Depth refers to the number of variations within a product line. For
example, continuing with the car company example above, a 3-
series product line may offer several variations such as coupe,
sedan, truck, and convertible. In such a case, the depth of the 3-
series product line would be four.

#4 Consistency

Consistency refers to how closely related product lines are to each

other. It is in reference to their use, production, and
distribution channels. The consistency of a product mix is
advantageous for firms attempting to position themselves as a
niche producer or distributor. In addition, consistency aids with
ensuring a firm’s brand image is synonymous with the product or
 PRODUCT MIX STRATEGIES
William J.Stanton suggests eight
different strategies of product mix.They are
the following;--
1 Expansion of product mix
2 Contraction of product mix
3 Deepening product mix Depth
4 Alteration of existing products
 PRODUCT MIX STRATEGIES

5 Developing new uses of Existing

products
6 Trading up
7 Trading down
8 Product Differentiation
 1. Expansion of Product Mix:
Expansion of product mix implies
increasing the number of product lines. New
lines may be related or unrelated to the present
products. For example, Bajaj Company adds car
(unrelated expansion) in its product mix or may
add new varieties in two wheelers and three
wheelers. When company finds it difficult to
stand in market with existing product lines, it
may decide to expand its product mix.
 2. Contraction of Product Mix:
Sometimes, a company contracts
its product mix. Contraction consists of dropping
or eliminating one or more product lines or
product items. Some models or varieties, which
are not profitable, are eliminated. This strategy
results into more profits from fewer products. If
Hindustan Unilever Limited decides to eliminate
particular brand of toilet shop from the toilet
shop product line, it is example of contraction.
 3. Deepening Product Mix Depth:
Here, a company will not add
new product lines, but expands one or more
existing product lines. Here, some product
lines become fat from thin. For example,
Hindustan Unilever Limited offering ten
varieties in its edible items decides to add
four more varieties.
 4. Alteration or Changes in Existing
Products: Instead of developing completely a
new product, marketer may improve one or
more established products. Improvement or
alteration can be more profitable and less risky
compared to completely a new product. For
example, Maruti Udyog Limited decides to
improve fuel efficiency of existing models.
Modification is in forms of improvement of
 5. Developing New Uses of Existing Products:

This product mix strategy concerns

with finding and communicating new uses of
products. No attempts are made to disturb
product lines and product items. It is possible in
terms of more occasions, more quantity at a
time, or more varied uses of existing product.
For example, Coca Cola may convince to use its
soft drink along with lunch.
 6. Trading Up:
Trading up consists of adding the
high-price-prestige products in its existing product
line. The new product is intended to strengthen the
prestige and goodwill of the company. New
prestigious product increases popularity of
company and improves image in the mind of
customers. By trading up product mix strategy,
demand of its cheap and ordinary products can be
encouraged.
 7. Trading Down:
The trading down product mix strategy is
quite opposite to trading up strategy. A company
producing and selling costly, prestigious, and premium
quality products decides to add lower- priced items in its
costly and prestigious product lines.

Those who cannot afford the original high-priced products

can buy less expensive products of the same company.
Trading down strategy leads to attract price-sensitive
customers. Consumers can buy the high status products of
famous company at a low price.
 8. Product Differentiation:
This is a unique product mix strategy. This strategy
involves no change in price, qualities, features, or varieties. In
short, products are not undergone any change. Product
differentiation involves establishing superiority of products over
the competitors.

By using rigorous advertising, effective salesmanship, strong sales

promotion techniques, and/or publicity, the company tries to
convince consumers that its products can offer more benefits,
TYPES OF BRANDING
 1) Product Branding:

This is the most common and easiest type of branding. Product branding is a
symbol or design that identifies and differentiates a product from other products.
Product branding is very easily noticeable when you walk through a supermarket filled
with different products as most products are branded with a unique colour, design and

logo.
 2) Personal Branding:

This type of branding is very common among politicians,

athletes and celebrities. Personal branding makes it possible for famous

people to reflect a good image of themselves to the public. Politicians, for

instance, use personal branding to create a good impression and

convince voters that they are right for an office.

 3) Corporate Branding:
This type of branding is used by businesses interested in creating and
maintaining a good reputation. Corporate branding thus cuts across an organisation’s
services, products, employees, corporate culture as well as corporate social
responsibility. Every activity carried out by an organisation has a positive or negative
effect on its reputation A wrong decision can in fact have an adverse effect on the
corporate brand.
 4) Geographical Branding:

This type of branding is used for specific services and

products that are peculiar to a particular region. Geographical
branding is commonly used in the tourism industry. Various
countries and regions try to brand things that make them
different from other areas. Landscape, tourist centres within a
popular region are usually advertised and eventually become
associated with the region.
 5) Retail Branding:

Retail branding is mostly used by industry giants to

increase the interest of consumers and make product sales
outpace the competition. A lot of money is spent to develop
unique brand images that convince consumers to select their
brand instead of others. Retail branding however requires a
lot of planning. The right strategy needs to be adopted to
ensure its success.
 6) Co-Branding:
Co-branding is a type of branding that associates the
brands of two or more companies with a specific product or
service. It can also be described as marketing partnership
between two or more brands such that the success of one
brand rubs off on the other. Co-branding is effective in
building business, increasing awareness and breaking into
new markets.
PACKAGING