1.

Product line and product mix

Besides deciding how to build products and services separately, marketers also need to build a product
line. This is a group of related products which are in a similar manner, sold to the same customer groups,
and marketed under a single brand name by the same company. The product line decisions involve
product line length – the number of items in this product line. Based on this, marketers can decide to cut
or add more items to increase profits. There are 2 ways for companies to expand the product line.

- Line filling: adding more items to existing line to satisfy dealers or standout from other
competitors. However, overuse of this way leads to an effect on the profit of the present product
and consumer confusions.
- Line stretching: companies can stretch the line including orientation, price, quality of products
downward or upward to make their product suitable with the current market demand.

Companies that own different product lines have a product mix. In product mix, besides all the product
lines, there are other items that sellers offer for sales. It includes 4 crucial dimensions: width, length,
depth, and consistency.

- Width: the number of product lines in company

- Length: total number of items within product lines
- Depth: the variety within a single product line.
- Consistency: brand’s product consistency describes how similar brand offerings are to one
another in use, production requirements, distribution channels,…

Based on these dimensions, company can find an appropriate direction to build product strategy.
Sometimes, a company needs to streamline its product mix to drop unprofitable products and focus on
the main direction.

2. Services marketing

Services has grown significantly and accounts for most of GDP of many countries in the world. Services
industries are divided into different parts:

- Government: provide police and fire service or hospital,…

- Private not-for-profit organizations: museum, churches
- Business organizations: banks, airlines, hotels,…
3. Nature and characteristics of services

Service industry include 4 main characteristics: intangibility, inseparability, variability, and perishability

- Intangibility: customers cannot observe the result of services before purchase. So companies
need to make a promise and conclusion for their brand quality or finds ways to build trust on
customers
- Inseparability: services need to attach with providers even people or machines. Even employees
provide services and customers will engage in thee process of service marketing.
- Perishability: services cannot be stored and delayed for later use. Because over a time period,
the quality and demand of that service may change and decrease.
- Variability: product quality depends on providers and the situation it is provided
With this new lipstick version of M.O.I, we plan to present it to the public around March and April in
2024. This is also the period that OFÉLIA announced that they will also release a new collection of
lipstick. So if we can win the market in this time, M.O.I can affirm our reputation in this cosmetics field.

4. Marketing strategies for service firms

Any firms that provide services to customers also need an effective marketing strategy to differentiate
and position themselves in customers’ mind.

5. Service differentiation

Using paper packaging with simple pattern printed is a key factor to help this version different and
outstanding from other brand. Simple but still fancy and building a new vision in protecting environment
which is the issue that consumer care recently. Thus, we can gain a unique image for this collection.

6. Service quality

Quality is an important element to differentiate and position brands in competitive markets. Quality
needs to meet, even exceed the expectations of customers. Companies need to observe not only the
performance of their own product or service but also from competitors. Quality in product and service
have something different but after all, good quality can bring customers trust on brands.

With this collection, we intend to use virtual beauty studio, which help customers to test which color is
suitable with their skin without going to store to test. This support from AI will facilitate this new
collection to stand out from other brands.