PRODUCT RANGE, LINE, AND MIX

ds of a num ber of diff ere nt targ et ma rke ts, mo st org ani zations offer a
In order to meet the nee
ety of pro duc ts and ser vic es. Alt hou gh som e offe r an ass ortment bas ed on an individual
vari
t, it is rare tha t an org ani zation offe rs jus t a sin gle pro duc t. Consumer organizations,
core produc
r a ran ge of sha vin g pro duc ts for me n; ind ust rial org ani zations, such as
such as Gillette, offe
er Valves, offer a ran ge of valv es for the offs hor e and ons hore petrochemical, gas, and
Oliv
erat ion ind ustr ies. In ord er to ma ke sen se of, and und erstand, the relationships
power gen
pro duc ts hav e wit h ano the r, a var iety of term s hav e em erged. Table 8.2 sets
that one set of
out these different terms.
 Ex pla nat ion
~ · Th e total group of products offere
·product d by an org
anization: at Nokia this would me
all the phones and all the accessories an
they offer
A group of closely related products-r
elated through technical, marketing,
considerations, for example, all the tou or user
chscreen phones offered by Nokia con
a product line stitute
product item A distinct product within a product line
. Nokia's NS is a product item
:pro~uct une length The number of products available in
a product line: the nine products availab
within the 'NSeries' le
~~duct tine depth The number of variations available wit
hin a product line: the 12 types of
· touchscreen phone
f~duci roil< width The number of product lines within
a product mix: 13 different forms of
f· . . . . . functionality offered by Nokia

pRODUCT LI FECYCLES
d rpinning the product lifecycle con
cept (PLC) is the belief that produc
Un :ential, pre-determined pattern of ts move through a
development similar to the biologica
sei w This pathway, known as the l path that lifeforms
product lifecycle, consists of five dis
fol : ;pment, introduction, growth tinct stages, namely
1 , maturity, and decline. Sales and
deV the various lifestages of the pro profits rise and fall
5 duct, as shown in Figure 8.3.
acr;;oducts move through an overall
cycle that consists of different stages
th ugh the stages will vary, bu t eac . Speed of movement
h product has a limited lifespan. Alt
r~uct can be extended in many wa hough the life of a
ys, such as introducing new ways
:di ng new users, and developing new of using the product,
attributes, the majority of products
have a finite period

.,
1II.
'0
C

.,.,
Ill

'i
Profits
Ill

Development Introduction Growth Maturity Decline

FIGURE 8.3 The product
lifecycle
 re tu rn s on th e in ve st m en t made in ea ch
. th . .
axiffilZe elfan overall lifespan of 9- 12 m on th s so it Is
d to m
. hich management nee b -1 phones have rough maturity. Apple an d others do this
dunng w oducts. In Sweden, mo _1 e ·a11 th sing
f th eir pr 'Ph y ne cu st om er s th e possibility of purcha
sales penod, ~s~eci 1 0
?mportant to extend thhe fi ffers ex. istm g
, n an d Nilsson, 2009). do the
differ at ea ch. st ag e so
1 rm o
through 'appstore s. T e 1ste er gr ou ps
and gamest r(Lon e uct
additional applications 1 s of custot m m ar ke tin g st ra te gies, relatmg to. th e prod
d expec a •t& . as to
Just as the natu. re anTh' eans that d1 ieren d to be deployed at pa rti cu la r times so
. d' IS m .
competitive con 1tions. neet· life
prici ng , and promotio~, e
and its di str ib ut
.
io n,
. a prod uc t s en ire
od uc ts
·
in th e sa m e way. For example, som
return on a 1 to all pr comes clear th at there
is
maximize the fi~anc1al an d th en di e as it be
es not dpp t~ stage hang
The product lifecycdle fdothe intro uc 10n ducts follow th e pa th into decline an d then
h °
products reach t e ·enth product Some prdo sales promotions, or th ey get recycled ba
ck into
e d ~s in g an d then fade
no market to sustam ities . So m e pr od uc ts grow really quickly an .
a~ a _veg activ d grew qmckly, but
around sustained byrehe s1 uo m n st in tro du ce d de m an
th growth stage by Cpo Noodles products were fir f or th'1s w as th at m an y people
e . ge. The re as on •
away ra pidly. When tup the end of. the growth sta . • re pe at b uym g.
. . 1Y a d so th er e w as hm 1t ed .
then died of f ste ep rly pr od uc ts an h a
• th e tast e of these ea go od s (F M CG ) ar e su st am ed throug
did no t lik e st-moving cons um er
The brands of many fa ~ lf sp ac~ to a ~o~petitor,
inating a listed brand,
a~ lo s~ ng th e _s he
cult and
supermarket listing. Term tti ng th e hs tm g m th e first pl ac e 1s so diffi
ply because ge e br an d si nc e its concep
tion. In
is difficult to accept sim ha s be en pu t in to th
l investment th at fo rm in g br an d, unless
the
because of the substantia ill de lis t an un de rp er
that the supermarket w br an d (Clark, 2009).
reality what happens is e of re pl ac in g th e ai lin g
suitable variant, capabl t exactly is being desc
ribed.
brand ~wner presents a ta ke n to cl ar ify w ha
C care must be uc t form (a laptop), or
a
When discussing the PL s (c om pu te rs ), a pr od
ply to' a product clas vi ng th e longest cycle
The PLC concept can ap with pr od uc t cl as se s ha
e of th e curve varies, comply m os t closely
with the
brand (Sony). The shap od uc t fo rm s te nd to
ten extend~d. Pr st. This is be ca us e they
are
as the mature stage is of te nd to be th e sh or te
whereas brand cycles ac k ca rs (product form
)
traditional cycle shape, . So , w he re as ha tc hb
rces an d sudden change an d have
subject to competitive fo ch as th e M ar ut i Ba leno ha d sh or te r cycles
ccess, brands su d features, in this case
, the
enjoy a long period of su em po ra ry de si gn s an
at have more cont
been replaced by cars th
Maruti SX4.

Concept
Usefulness of the PLC ef ul m ea ns of explaining th
e broad
nc ep t an d is a us
n and popular co product, service or br
and
The PLC is a well-know rly se ts ou t th at no
has taken. It also clea '
ap t strategies and
path a product or brand al l ·
tin g m an ag er s to ad
th PLC concept ows marke
lasts. forever. In prin. ciple, e d pr od uc t ci rcumstances. In this se
nse it is
iti on s an
s of evolving cond t of great us e For exam '
ple
t;ctics ~o meet tbe nee~ ac tic e th e PL C is no
able. However, in pr h ·
c ear, simple,_ ~ d predict ng w hi ch st d as re ac he d in th e cy cle. H ist or ical sales data
one problem IS Iden . tifyi . age a pro uc t
d0 t h 1
m an ag er s Id en tif y w he n a produ t ov~s from on e stage to another. This means
no e P cast sal dh c m
e th e fut e sh ap e of th e PLC curve.
that it is difficult to fore es, an enhce dehtermm ur
ly w II t l . an d no t
The model worke d re as on ab e w den t e en vi ro nm
en was re atively st ab le
. ings or short -1Iv . er prefe rences. However, co nt em porary
subJect to dynamic sw w
e custom
h h .
. not concerned h
ere t elf. brand is W I'th•rn t e pr od uc t lifecycle: th
ere
marketmg managers are d
ar many other more meaningful ways a n metncs to un d er st and th e co m petitive strength
e
and development of a brand, for example, benchmarking. Some brands do not follow the
classical S-shaped curve, but rise steeply and then fall away immediately after sales reach
a crest. These shapes reflect a consumer fad, a craze for a particular piece of merchandise,
typified by fashion clothing, skateboards, and toys. So, great care is required when using
the PLC, as its roles in commerce and when developing strategy are weak, but it is helpful
generally as a way of explaining how brands develop (see Market Insight 8.2).

MARKET I N S I G H T 8.2
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YesStyle.tom, the online fashion house

· . Courtesy. www.yesstyle.com

LIFECYCLING ONLINE FASHION sales period, manage.the stocking requirements, and

plan for the introduction of new ranges. Fo~ example in
l Firms such as Oli, ColorPlus, a premium Indian the world of online fashion the following'cycte might be .
l casualwear brand, YesStyle.com, who offer a •_ . : •"r. ~ -~- _.: / ....•. • ·· ..
t. · • evident: - ..
f range of Asian fashion online, and ASOS, the UK's. · · · • lntroductio~ new skirt'1s presen o l
~ market leader in online fashion retailing, each have . :· ' .· _··. given lots'ofvisibility, and · · ·
I thousands of product items on their websites and ; i ·.:·-· ... newsletters and social m
J: each can in.troduce hundreds of ~e~ items ~ch_~eek.· _... : ~-.-~ ~he hoi:nepag:. So_~e ~s
·. Und erstand mg the principles underpinning the lifecycle ' · '·. · new skirt, w~ile digital
\ can help these firms work out the length of each i lerted rev

(contd)