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Product, Classification of Products, Product Line and Product Mix
Product, Classification of Products, Product Line and Product Mix
Theodre Levit
Core Benefit
• High Volumes
The volume of the product required is very high.
Eg. An average family may require 3-4 Soaps a
month… Imagine No. of family using it in the whole
country???
If the organization cannot ensure high sales volume,
they will have difficulties in surviving.
• Low Margins
As the product is required in high volume, there
is an intense competition which makes the
marketer sell the product with very less margin.
They earn through high volume sales to
maximize their turnover.
• Line Stretching
Downward Stretch : It takes place when
the company finds a particular segment
(Lower) which is un-attended by the
existing product. And introduces a product
to cater that lower segment.
Upward Stretch : It is when company a
company enters Upper market
through Line Extension.
• Line Filling : A product line can be extended by
adding more items to the existing range.
Reasons:
Reaching for more profits
Trying to satisfy dealers who complain about lost
sales due to missing items in the line
Trying to utilize excess capacity
Trying to offer a full line of the production
Trying to plug holes in the positioning map.
• Line Modernization : Modernization is
carried out continuously as
competitors are constantly growing
and coming out with new products and
ideas.
• In this process an Organization should not
be too early, if so, It can harm the existing
product or late so that competitors
already have a hold in the market.
• Line Featuring
Its about featuring a particular product of
the product line, so as to increase foot
falls and then making the consumer
exposed to other products too.
Growth Strategies for F
• Multi-brand Strategy
When a company nurtures number of brands in
a single category.
Strategy: To capture as much market share as
possible by trying to cater as much possible
segments.
Eg. HUL Bathing Soaps:
Names??????
P&G Shampoos?
Names?????
• Product Flanking
Basically offering same product in different
and price combinations to tap diverse
market opportunities.
• Brand Extensions
This enables the company to enter new
product categories more easily.
Eg. Lifebuoy: Lifebuoy Plus, Lifebuoy
Liquid, Lifebuoy Gold.
Eg. Amul: Amul Butter, Amul Ghee, Amul
cheese, Amul Milk, Amul Chocolates
• Building Product Lines
Companies add related new product line
to the existing Line.
Eg. Britannia: It has all Baked food items
which are increasing. Have also added
milk products to its kitty.
• New Product Development
Its due to ever increasing Competition in
the market
• Innovations in Core Product
The life of a FMCG product is short. The
marketer continuously tries to introduce
new products and a consumer is also
open to try new products.
• Long Term Outlook
Eg. Kelloggs
• Extending the PLC
• Expanding Markets by Usage
c.Increase the Number of Customers
d.Encouraging more consumption.