Product Mix Strategy | Definition And Overview

Do you know what it takes to run a successful business, well it’s definitely not just about choosing the right product and services. A product goes through a number of series of updates and development to reach the end game. But how to reach more customers, sales and growth?

Product mix strategy analyzes the company’s existing products and allocates resources to meet the most important needs in a short span. Well but how does product mix strategy ensure the product success, let us know the entire thing in detail.

What is the Product Mix Strategy?

Product mix strategy is a smart move by the organisation, a smart and innovative strategy adopted by companies to manage different categories of products with a wide range of options for each product.

A well balanced product helps businesses attract a range of wider audience, meet diverse customer preferences and most importantly it increases sales. Company’s product mix also plays an important role in positioning and brand value in the market. Product mix strategy involves two major stages.

Determining the right type of products to sell
Determining the right number of products to sell
Marketing strategies for targeted promotions

Importance of Product Mix Strategy

Product mix strategy plays a major role in determining organisational success. Let us check the importance below.

1. Meet Diverse Customer Needs

Customer report is one of the most important parameters which every business keeps in mind before starting. With diverse projects, different customer preferences, budgets and requirements.

2. Increase Market Share

Companies can produce a broader market share with a range of products featured in the catalog. For example, Apple has a wide variant of smartphones available to appeal to a large section of audience with multiple demographics.

3. Cross Selling Opportunities

With a wide range of products in hand a company can easily get cross selling and upselling opportunities. For example, suppose an electronic store where it is providing laptops, smartphones, tablets, and more.

Along with these main items that can also sell items like phone cover, software package, antivirus, and more. This will help boost the overall revenue of an organisation.

4. Improved Brand Loyalty

With a well curated product mix strategy customer loyalty can be enhanced and customers can choose from our range of product line. When customers trust a brand’s quality then they are more likely to purchase and also increase the chances of repeated business.

5. Adaptability

Market demands keep on changing on a daily or weekly basis. Companies can maintain different products to ensure availability when needed. For example, During COVID 19 most companies started expanding their product base with all essentials such as PPE, sanitizers to adapt to the new market

7 P’s of Product Mix Strategy

Check the ultimate 7 P’s of Product mix strategy given below.

1. Product

The product is the core of the complete product mix strategy as it depicts what you are selling and how it is going to solve problems of your customers. This does not include only physical items or service but also the quality, features, designs, packaging, branding, and more. For a successful product market research and unique value for the customers are important.

2. Price

Price is the amount which a company charges for its product and for customers it is the value for which they pay. The prices of a product must be competitive and reflect the brand quality, good value, and target market. Organisations can adopt strategies like discounts, premium pricing, or bundling can be used to attract different customer segments and maximize revenue without compromising profitability.

3. Place

Place is the channel or the method by which a product is delivered to the customer. It includes the online stores, physical location, partners, mobile platforms, and more. The main objective is to make your product accessible and convenient for your target audience, ensuring it’s available where and when they need it.

4. Promotion

Promotion is the way you communicate with your target customers conveying them the value of your product. This includes social media, marketing, influencer campaigns, and public relations. A good promotion strategy raises awareness, generates interest, builds desire, and ultimately encourages action for helping your product reach and convert more potential buyers.

5. People

People are the group or team who delivers your product or service to users or to a stage in development. People who knows their role well can easily stand on users’ expectations and ensure satisfaction.

6. Process

Process refers to the systems and workflows that ensure your product is delivered efficiently and reliably. This includes everything from order processing and payment systems to customer onboarding and complaint handling. A smooth, consistent process not only improves customer experience but also builds trust and brand reputation.

7. Physical Evidence

Physical evidence includes all the visible and tangible elements to support your brand and product which include website design, store layout, customer reviews, promotional materials, and more.

These evidence helps customers evaluate their product’s quality and credibility, especially in cases where they can’t physically experience the product before purchase.

How Does a Product Mix Strategy Help Businesses?

Product mix strategy is the range of products which a company offers. Following Product mix strategy these are the main points where it can help businesses.

It helps cater to a diverse consumers and target audience by offering various products, businesses can provide to a large range of consumers.
Diversification due to product mix strategy lowers the risk for companies as they are no longer depending on a single product.
Expanding product mix because of customer needs and preferences changing over time. This can help increase customer satisfaction and repeated business.
Companies must maintain the integrity of the business by providing quality product lines.

Dimensions of Product Mix

The dimension of a product mix is important for a company as it defines the structure and range of products.

1. Width

The number of product lines a company offers is the width of product lines. A broader product mix means the company provides more types of products to its consumers.

For example, A company like Samsung offers product lines such as smartphones, TVs, refrigerators, washing machines, and laptops that means its product mix has a wide width.

2. Length

The total number of products within all product lines is called length of the product mix strategy. For example, if a company has three different product lines and each has 2 products then the length of the product mix would be 6

3. Depth

Depth is the number of variants for each product in a line. It includes different product characteristics such as size, color or flavor. For example, a company selling toothpaste might offer different flavors and sizes of the same product to satisfy customer preferences.

4. Consistency

Consistency is the degree of similarity between the different items in a product line which can be based on their usage, distribution channels, and production.

For example, Apple product lines such as Apple watches, iPads, MacBooks, iPhones, and more are very consistent and they all belong to consumer electronics and share distribution channels and technology.

Also Read:

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Product Mix Strategy FAQs

Q1. What is the Product Mix strategy?

Ans: Product mix strategy is a smart move by the organisation, a smart and innovative strategy adopted by companies to manage different categories of products with a wide range of options for each product.

Q2. What are the dimensions of the Product mix?

Ans: Product width, Product length, Product Depth and consistency are some of the dimensions of Product mix.

Q3. Why is product mix strategy important?

Ans: Product mix strategy provides diversification by providing users with valuable options to choose from. It can increase market share, offer adaptability, improve brand quality and more.

Q4. What are the 7 P’s of Product Mix?

Ans: The 7 Ps of Product mix strategy are Product, Price, Promotion, Place, People, Packaging, and Process.

Q5. What is the benefit of Product mix strategy?

Ans: With a proper product mix strategy organisation can meet diverse customer needs, increase market share, get cross selling opportunities, improve brand loyalty, and adaptability.