Product Mix - businesskites

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Simplified Business Studies

Product Mix

Product mix, also known as product assortment, refers to the collection of products or services offered by a company. A well-planned product mix can help a company to attract and retain customers, increase sales, and achieve its business objectives. In this study material, we will discuss the concept of product mix in detail with examples from India.

 Elements of Product Mix

A product mix typically consists of several elements, including:

Product Line: It refers to a group of related products or services that are marketed under a single brand name. For example, Titan offers a range of watches under different sub-brands like Fastrack, Sonata, and Titan.

Product Width: It refers to the number of product lines that a company offers. For example, Tata Motors offers a range of products in different categories like passenger cars, commercial vehicles, and defense vehicles.

Product Length: It refers to the total number of products within a product line. For example, Maruti Suzuki offers different models within its Swift product line, including Swift Lxi, Swift Vxi, and Swift Zxi.

Product Depth: It refers to the variety of products within a product line. For example, Hindustan Unilever offers a variety of shampoos under its brand name like Dove, Clinic Plus, Sunsilk, and Clear.

The concept of product mix is not limited to the manufacturing sector alone, but also applicable to the services sector. In the service industry, a product mix refers to a range of services offered by a company to meet the diverse needs of its customers. Lets, discuss three examples of product mix in the services sector in India.

State Bank of India (SBI):

SBI is the largest bank in India and offers a range of services to its customers. The product mix of SBI includes various services like personal banking, corporate banking, agricultural banking, and international banking. Under personal banking, SBI offers products like savings account, current account, fixed deposits, recurring deposits, home loans, car loans, personal loans, credit cards, and insurance products. Under corporate banking, SBI offers services like working capital finance, term loans, project finance, trade finance, cash management services, and forex services. The product mix of SBI allows it to cater to the diverse financial needs of its customers.

 OYO Rooms:

OYO Rooms is a hospitality company that offers affordable and standardized hotel rooms across India. The product mix of OYO Rooms includes services like budget hotels, premium hotels, flagship hotels, townhouses, and home stays. Budget hotels are designed for travelers who are looking for affordable accommodation options, while premium hotels cater to customers who are looking for a luxurious stay. Flagship hotels are designed for business travelers, and townhouses and home stays are designed for families and groups. The product mix of OYO Rooms allows it to cater to the diverse needs of its customers and expand its customer base.

 Apollo Hospitals:

Apollo Hospitals is a leading healthcare service provider in India. The product mix of Apollo Hospitals includes services like inpatient services, outpatient services, diagnostics services, and telemedicine services. Inpatient services include services like hospitalization, surgery, critical care, and emergency care. Outpatient services include consultation, diagnosis, and treatment for minor illnesses and injuries. Diagnostics services include pathology and radiology services. Telemedicine services allow patients to consult doctors from the comfort of their homes. The product mix of Apollo Hospitals allows it to provide comprehensive healthcare services to its customers.

The product mix is an important marketing concept that can help companies to achieve their business objectives. A well-planned product mix can help a company to meet the needs of its customers, increase sales, and gain a competitive advantage in the market. Companies in India, like Nestle, Hindustan Unilever, Samsung, Tata Motors, and Titan, have successfully implemented a product mix strategy to meet the diverse needs of their customers.

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