What is the relationship between product item, product line and product mix? Explain various product line and product mix strategies suitable for consumer goods.

 Concept Of Product Item: Product items are various varieties offered within product line, which are similar in one or other ways. Such varieties are based on quality, size, color, capacity, price, model, performance, and so on.

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., in its two wheeler line, makes Discover, Boxer, Boss, Pulsar, Cub scooter, Bajaj Sunny, etc.

Philip Kotler: "Product line is a group Of products that are closely related because they function in a similar way, are sold to same customer groups, are marketed through the same type of outlets, or fall within given price range." Thus, product line is the group of similar products. 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:

(i) They function in similar manner.

(ii) They Offer similar benefits, or meet similar expectations.

(iii) They are sold to similar customer groups.

(iv) They are marketed by similar outlets.

(v) They fall within same price range.

Characteristics of Product Line:

Main characteristics of product line can be listed as:

I. Product line consists of closely related product items. Difference is only found in terms of colour, size, shape, model, performance, weight, and capacity.

2. It is a compose of various similar items.

3. Product items are complementary to one another. For example, tube, tyre, and related materials.

4. There is difference in price. For example, Hero Honda charges different price for different models.

5. The purpose of offering similar items in each ofthe product line may be to attract customers by offering more varieties, and to create a good image or reputation.

6. Different items Of a product line can be manufactured using same technology and/or inputs.

7. Product items in each of the product lines are distributed in same distribution channel. That is, similar outlets market them.

8. Product items in each product line function in same manner. They need same technical skills to use them.

Product Mix: Product mix Of a company is made Of all product lines and items. It includes the total number Of varieties or models offered by the company.

Let us define the term:

Philip Kotler:

"A product mix is the set of all product lines and items that a particular seller offers for the sale to buyers."

PRODUCT LINE AND PRODUCT MIX STRATEGIES:

1. Contraction of the Product Line: When a company fields that some of its products are no more profitable, it may decide to suspend their production. Similarly, changes in the marketing environment may also necessitate with-drawl ofa product. A product may also be dropped from the product line if it is found that the same resources used for the production Of the product can be put to merge profitable use by producing another product. Decisions relating to these aspects are termed as "Contraction of the Product Line". Thus, thinning out the product mix either by eliminating an entire line or simplifying the product items within the line is called contraction Of product line. This is also called Contraction of Production Mix or Product Line Simplification. This strategy is adopted mainly to eliminate low-profit products and to get more profit from fewer products.

2. Expansion of Product Mix: To cash on available opportunities, a company decides to expand its present product line. It may also increase the number of product lines and/or the depth within a line. Such new lines may be related or unrelated to the existing product mix. For example, a company dealing in drugs and, chemicals may add products in a relatively new area like Computers.

3. Changes in Quality: When the market expectations undergo a change, a firm may have to react by altering the quality standards Of the products. Such changes can be brought about through Trading Up and Trading Down techniques.

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