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PRODUCT MIX OF

  • Hindustan Unilever Limited is an Indian consumer goods company based in Mumbai, India
  • Owned by Anglo-Dutch company Unilever.
  • Its products include food, beverages, cleaning agents, personal care and water purifiers.

About the company

What is Product Mix?

Product mix

Set of all products offered for sale by company.

It consists of various product line.

Any company's product mix has four dimensions:

  • Width
  • Length
  • Depth
  • Consistency

1

Digging deeper

  • Product Mix, also known as product assortment, is the total number of product lines that a company offers to its customers.
  • Product line refers to a single product category or brand that the company offers to its customers.
  • The Product Mix is a subset of Marketing Mix-(4Ps of marketing, viz. Product, Price, Place, Promotion) and is an important part of the business model of the company.
  • On the other hand, product line is a subset of product mix.

2

Dimension of Product Mix in Detail

  • Product width: This refers to the number of product lines the company has to offer.
  • Product length: This refers to the total number of products in the mix. For instance, if the company has 5 product lines and 10 products under each, then here the product length is 50 [5 X 10]
  • Product depth: This refers to the total number of products within a product line. These can include variations in the products of the same product line.
  • Consistency: Product mix consistency refers to how closely products are linked to each other.

Less the variation among products more is the consistency. For example, a company dealing in just dairy products has more consistency than a company dealing in all types of electronics.

3

Understanding with a diagram

PRODUCT MIX OF Hindustan Unilever Limited

HUL's Product Mix

Food

and

refreshments

FOOD AND BEVERAGE

Beauty and Personal care

BEAUTY AND PERSONAL CARE

Home care products

HOME CARE

Water purifier - PureIT

WATER PURIFIERS

Product line Analysis

Product line managers need to know the sales and profits of each item in their line to determine which item to build, maintain, harvest or divest. They also need to understand each product line's market profile and image

Sales and Profits

Companies should recognize that different items will allow for different margins and respond differently to changes in level of advertising

Market Profile and Image

Product mapping is the practice of matching your products to your competitor's products in order to make accurate, apples-to-apples price comparisons. This allows retailers to gain a better understanding of these products and implement data-driven interventions to improve conversions.

Product line length

Line stretching

Line Stretching

Line Stretching occurs when a company lengthens its product line beyond its current range whether down-market, up-market or both ways.

  • Down-market stretch: A company positioned in the middle market may want to introduce a lower-priced line when they see growth opportunities, to tie up lower-competitors trying to move up-market or if they find the middle market stagnating or declining.
  • Up-market stretch: Companies may wish to enter the high end of the market to achieve more growth, realize more profits or simply position themselves as full-line manufacturers. Some may also use modifiers to signal a quality improvement.
  • Two-way stretch: Companies serving in the middle market might stretch their lines in both directions.

Line Filling

Line filling

A firm lengthens its product line by adding more items within the present range.

Motives for line filling include

  • reaching for incremental profits
  • satisfying dealers who complain about loss of sales because of items missing from the line
  • utilizing excess capacity
  • trying to become the leading full-line company
  • plugging holes to keep out competitors

Line filling is overdone if it results in cannibalization and customer confusion.

The company needs to differentiate each item in the consumer's mind with a just-noticeable difference.

Product Mix Pricing

Product Mix Pricing

In this, the firm searches for a set of prices that maximizes profits on the total mix. This is a challenging process because various products have demand and cost interrelationships and subject to different degrees of competition.

  • Product line pricing- price steps
  • Optional-feature pricing
  • Captive-product pricing
  • Two-part pricing
  • By-product pricing
  • Product-bundling pricing

Thank You

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