MANAGING PRODUCT

LINE AND PRODUCT

MIX
GROUP :2
 PRODUCT
• Anything that can be offered to a market for
attention, acquisition, use, or consumption and
that might satisfy a want or need.
•
• Products include: physical goods, services,
experiences, events, persons, places,
properties, organizations, information, ideas
•
PRODUCT

Potential Product
Augmented Product
Expected Product
Basic Product
Core
Product
 PRODUCT LINE

A group of products clubbed together by virtue

of satisfying a particular class of needs or
distributed through the same channel or
possessing common physical and technical
characteristics.

Dabur - Food, Shampoo, Hair oil

 PRODUCT LINE ANALYSIS

•Product lining is the marketing strategy of

offering for sale several related products.
•Line depth refers to the number of product
variants in a line.
•Line consistency refers to how closely related
the products that make up the line are.
•Line vulnerability refers to the percentage of
sales or profits that are derived from only a
few products in the line.
•
 PRODUCT LINE FILLING
•Product Line Filling is the process of adding a
new product within the current range of an
incomplete line.
•Motives for Line Filling. Weber’s Law:
Customers are more attuned to relative than
absolute difference. Line Modernization &
Featuring
•
 PRODUCT LINE- STRETCHING
DECISIONS
Downward Stretch Upward Stretch Two-way Stretch
New
H Presen H H Produ
New
t cts
Produ Presen
Produ
cts t
cts

Price
Produ
Price
Price

New Presen cts

New
Produ t
Produ
cts Produ
L L L cts
cts
L Quality H L Quality H L Quality H
Nescafe Maruthi Titan
 PRODUCT MIX
• A Product mix is the set of all products and items
a particular seller offers for Sale.
– Eg :- Dabur
• Compenents are

• The Width of a product mix refers to how many

different product lines the company carries.
• The Length of a product mix refers to the total
number of items in the mix.
• The Depth of a product mix refers to how many
variants are offered of each product in the line.
• The Consistency is the degree to which product
lines are related
1.
 DABUR
• Established in 1884 by D r. S. K. Burman
•
• Dabur India Limited is India's leading FMCG Company
with interests in health care, personal care and foods.
• Dabur has two major strategic business units (SBU)-
Consumer Care Division (CCD) and Consumer Health
Division (CHD).
•
Length And Width

Hair Oils Shampoo Oral Care Skin care Health

Hair Oils Shampoo Oral Care Skin care Health
Supplements
Supplemen
Dabur Dabur Dabur ts
Dabur Dabur Dabur Red
Red Gulabari
Gulabari Dabur
Dabur
Amla
Amla Hair
Hair Vatika
Vatika Toothpaste
Toothpaste Skin
Skin Care
Care Chyawanpr
Chyawanpr
Oil
Oil Shampoo
Shampoo ash
ash
Vatika
Vatika Hair
Hair Babool
Babool Dabur
Dabur Dabur
Dabur
Oil
Oil Toothpaste
Toothpaste Uveda
Uveda Honey
Honey
Dabur Promise Dabur
Dabur
Anmol Promise Dabur
Glucose
Anmol Glucose
Meswak
Meswak
• The Depth of a product mix refers to how
many variants are offered of each product
in the line.
•
DEPTH
DEPTH
 CONSISTENCY
• The Consistency is the degree to which
product lines are related
•
• It also refers to how closely related the
various product lines are in end use,
production requirements, distribution
channels, or in some other way.
•
 CONSISTENCY

•Dabur India mainly focus Personal Care

and Health Care. The product line
discussed are broadly classified in the
above two category.
•Hair oils, Shampoo, Oral and Skin Care
comes under Personal Care.
•Health Supplements comes under Health
Care.
•
 BCG Matrix

High
M
ar
k
et
gr
o Low
w
th
ra
te High Low
ar

ar
et

at
el
iv

R
S
e

e
k
ØBOSTON CONSULTING GROUP (BCG)
MATRIX is developed by BRUCE
HENDERSON of the BOSTON
CONSULTING GROUP IN THE EARLY
1970’s.

ØAccording to this technique, businesses or

products are classified as low or high performers
depending upon their market growth rate and
relative market share.
 THE BCG GROWTH-SHARE
MATRIX

•It is a portfolio planning model which is based on the observation

that a company’s business units can be classified in to four
categories:
ü Stars
ü Question marks
ü Cash cows
ü Dogs

•It is based on the combination of market growth and market share

relative to the next best competitor.
 STARS
High growth, High market share
•Stars are leaders in business.
•They also require heavy investment, to
maintain its large market share.
•It leads to large amount of cash consumption
and cash generation.
•Attempts should be made to hold the market
share otherwise the star will become a
CASH COW.
•
 CASH COWS
Low growth , High market share

•They are foundation of the company and

often the stars of yesterday.
•They generate more cash than required.
•They extract the profits by investing as little
cash as possible
•They are located in an industry that is
mature, not growing or declining.
 DOGS
Low growth, Low market share

•Dogs are the cash traps.

•Dogs do not have potential to bring in
much cash.
•Number of dogs in the company should
be minimized.
•Business is situated at a declining
stage.
 QUESTION MARKS

High growth , Low market share

•Most businesses start of as question marks.

•They will absorb great amounts of cash if
the market share remains unchanged,
(low).
•Why question marks?
•Question marks have potential to become
star and eventually cash cow but can also
become a dog.
•Investments should be high for question
marks.
 WHY BCG MATRIX ?

To assess :
§Profiles of products/businesses
§The cash demands of products
§The development cycles of products
§Resource allocation and divestment
decisions
 BENEFITS

•BCG MATRIX is simple and easy to

understand.
•It helps you to quickly and simply screen
the opportunities open to you, and helps
you think about how you can make the
most of them.
•It is used to identify how corporate cash
resources can best be used to maximize a
company’s future growth and profitability.
 … .
U …
Y O
N K
H A
T