1. Product Mix of a company refers to a set of all products, lines and items that a particular seller offers for purchase to buyers / consumers. Conversely,
2.A company’s product line refers to a group of products closely related (due to the fact that they function in a similar manner) and are sold to the same customer groups, marketed through the same type of outlets or fall within a given price range. They satisfy the characteristics below: –
- Satisfy similar needs.
- Consumed together
- Produced together
- Distributed similarly or
- Fall within the same price range
- Product Mix Depth refers to the number of variances offered for each product in the line (for example, in the soft drink industry Crest comes in three sizes and two formulations ‘regular’ and ‘mint’ – thus Crest has a depth of six.) This can be used to expand a company’s product portfolio if it is made deeper by adding more product variances to each product e.g. adding more sizes in the packaging variation or adding more formulations.
- Product Mix Length: Refers to the total number of items in its product mix. For example in the soft drink industry, a company like Coca Cola International may include Coke, Sprite, Fanta and Crest. Thus, if we want the average length of a Coca Cola soft drink product then we may calculate it as follows: A company can use product mix length to expand its product portfolio by introducing more brands of its items to the existing ones and making sure its current product lines are full ones.
- Product Mix Width: Refers to how many different product lines the company carries (for example Coca Cola International has one product line: soft drinks).
- Product Mix Width can be used to expand a company’s product portfolio if the company introduces new product lines like beer, water, juice or bread for example.
- Consistency – how closely related the individual product lines are in end use, production requirements, and distribution channels or in some other way.
3. Product mix assortment: Is the set of all products and the items that a particular seller offers for sale to the buyers.
4. Product item: Is a distinct unit within a brand or product line that is distinguishable by size, price, appearance or some other attributes?