Product Line and Mix

Product mix The composite of products that a company sells to

consumers. A company's family of products.

Gerber makes baby food, baby clothes, nursery equipment, vaporizers.

Kraft cheese, salad dressing, cereal, barbecue sauce, syrup, crackers, cookies, frozen pizza, jello, etc.

General Motors: Chevrolet, Buick, Chrysler, Saturn, Cadillac, Pontiac, GMC

Ideally, there are synergies across product lines.

Product Line and Mix, con’t

Product line: A group of closely related, similar items that are considered

a unit because of end-use considerations. Coke, Diet Coke, Coke-Zero, Sprite, Mountain Dew, Mr. Pibb

Procter & Gamble: Tide, Cheer, Oxydol, Era, Bold

Ford Focus, Ford Fusion, Ford Taurus, Ford Mustang

Each item in product line targeted to different segment. Must coordinate marketing mixes.

Product Line and Mix, con’t Width and Depth:

width refers to breadth of product mix (variety)

depth refers to breadth of a product line (assortment) Baskin-Robbins has narrow product mix (little variety), but

very deep product line (large assortment)

Rose-Hill makes occasional tables: narrow mix, deep line.

Lane makes recliners, motion, stationary, sofa-sleepers, etc. Wide mix and deep lines.

Wal-Mart has wide selection, but not deep

Width and Depth has implications for pricing, promotion, and distribution

Complementary products (joint products)

Two products that are mutually dependent. Use one product to help sell the other. Must understand

the relationships among all of the products and coordinate marketing efforts. Gillette: razors and blades

Chiropractor: free consultation, then pay for visits

General Electric: aircraft engines and engine parts

Classic example: Kodak sold cameras at relatively low price. Makes most of its money when customers buy film/disks.