A product is anything that is offered to a market to satisfy customer wants and needs. Product includes both tangible and intangible items available for sale in the market. A company may sell one product or many types of products at a time i.e. Samsung LEDs, mobile devices, tablets etc.
A product line is a group of closely related products with similar functions, customer groups, outlets and same price ranges. The example of Nike product line includes, Footwear, Apparel and Sports equipment and every product line have similar products.
What is Product Mix
Product mix or product assortment is a set of total number of products lines that a seller offers in the market to its buyers. The company may have one or several product lines and each product line may have several products. When these product lines get together are known as product mix of the company.
Product Mix – Width
Width or breath is the company’s product mix that means the total number of product lines that a company offers to sell.
For instance, if a company offers milk and yogurts, this indicates the that its product mix has two lines. Similarly, a cosmetic company manufactures four different types of products – jewellery, cosmetics, fashion and household items. Its product mix width is 4.
Product Mix – Depth
Depth of product mix means the total number of products a company offers within a certain product line. There may be different variations in the product e.g. size, flavor, taste and many other characteristics. For example, Medicam toothpaste sells four sizes and two flavors mean it has a depth of eight.
Another thing I want to discuss is average depth of product line. Suppose a company first line depth is 8 and second one is 10 the average depth is 19.
Product Mix – Length
The length of product mix means total number of products within a company’s product lines. For example, if a company has 10 product lines and each line has 3 product variations then product mix length is (10×3) = 30.
Length of the product mix refers to the total number of products in the mix. If a company has 5 product lines and 10 products under each product lines, the length of the mix will be 50 [5 x 10].
Product Mix Consistency
At last, the consistency of a product mix is the close relationship between different product lines. The more product variation means less product consistency. For example, a dairy company has two product lines milk and yogurt. Both the lines have same users and distribution channels. Due to low product variation and high product mix consistency. Take another example of Philips Electronics with 7 product lines having high production mix variation and low consistency.
Product Mix Example
Let us take a small example to understand the product mix of Nike.
Footwear – Boots for strikers, Midfielders, Defenders, Sneakers
Apparels – Headwear, Tops/Polos, Jersey, Jackets, Shorts, Shocks
Equipment – Ball, Bags, Watches
Product Depth – 4 in Footwear, 6 in Apparels and 4 in Equipment
Product Length – 14
Product Width – 3
Product consistency – High consistency Nike focus on health-conscious people.
Hope it will give you a better understanding of product mix concept
Different between Product Mix and Product Line
Product mix refers to the total number of products of a company offer to sell. On the other hand, product line refers to related products with similar users and functions. In the above example of Nike, the footwear, apparels and equipment are all product lines. When these product lines come together known as product mix.