Product Policy

Product mix Product mix strategies Managing product lines

Product Policy
Can be understood as: Product mix
Width Length Depth Consistency Expansion of product mix Contraction of product mix

Product mix strategies

Altering existing products

Positioning the product

Trading up Trading down
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Product Mix
The assortment of products that a company offers to a market Width how many different product lines? Length the number of items in the product mix Depth The no. of variants offered in a product line Consistency how closely the product lines are related in usage

PRODUCT MIX OF HUL

COLOR CONFECTIONA COSMETI HAIR RIE CS CARE Max Lakme SKIN CARE Fair & Sunsilk Lovely ORAL CARE Peposo dent Axe SOAPS AND DEODO DETERGE TOILET BEVERAG RANTS NTS SOAPS ES FOOD Surf Liril 3 Roses Knorr Anapur na Ata Anapur na salt

Aviance Clinic

Close Pond's up

Pond's Rin

Dove

Rexona Wheel

lipoton Lifebou Yellow y label lipton green Lux label

modern lipton ice food Denim OK Breeze tea range Kwality 501 Pears Red Label Walls Sunlight Hamam Taj Mahal Kissan Brooke Ala Rexona Bond Taza Vim Dove Bru 4 Savlon

Product Mix Strategies

Expansion of product mix Contraction of product mix Altering existing products Positioning the product
In relation to competitors product In relation to target market In relation to product class By price and quality

Trading Up Trading Down

5

Managing Product Lines

Product line analysis Product line length: too long when profits increase by dropping a product in the line too short when profits increase by adding products to the product line
Line stretching Line filling

Product-line modernization Line pruning

Managing Product Lines

Product line analysis Product line length: can be increased in two ways Line stretching
Line filling

Product line modernization Line pruning Reasons for line extension Limitation of product line extension

Managing Product Lines contd..

Reasons for line extension:- Provide wide variety of goods under one umbrella
- less time and cost is involved as compared to introducing new products - high price for premium products - reduce cost for market research

Managing Product Lines contd..

Limitations of product line extension:- Weaker lines - Lowers Brand Loyalty - Under exploitation of ideas - Stagnant Demands - Profits earned is short lived - It can dilute brand image - Complexity in logistic