PRODUCT LINE

PRODUCT LINE

A group of products clubbed together by

virtue of satisfying a particular class of needs or
distributed through the same channel or possessing
common physical and technical characteristics.

Dabur - Food, Shampoo, Hair oil

 PRODUCT LINE ANALYSIS

•Product lining is the marketing strategy of

offering for sale several related products.
•Line depth refers to the number of product
variants in a line.
•Line consistency refers to how closely related
the products that make up the line are.
•Line vulnerability refers to the percentage of
sales or profits that are derived from only a
few products in the line.
•
 PRODUCT LINE- STRETCHING
DECISIONS
Downward Stretch Upward Stretch Two-way Stretch
New
H H H Produc
Present New
ts
Produc Produc
ts ts Present
Produc

Price
Price

Price
ts
New Present New
Produc Produc Produc
L ts L ts L ts
L Quality H L Quality H L Quality H
Titan
Nescafe Maruthi
Product Mix
 PRODUCT MIX

A Product mix is the set of all products and items a

particular seller offers for Sale. Eg :- Dabur
Components are
• The Width of a product mix refers to how many
different product lines the company carries.
• The Length of a product mix refers to the total
number of items in the mix.
• The Depth of a product mix refers to how many
variants are offered of each product in the line.
• The Consistency is the degree to which product
lines are related
Length And Width

Hair Oils Shampoo Oral Care Skin care Health

Hair Oils Shampoo Oral Care Skin care Health
Supplements
Supplemen
Dabur Dabur Dabur ts
Dabur Dabur Dabur Red
Red Gulabari
Gulabari Dabur
Dabur
Amla
Amla Hair
Hair Vatika
Vatika Toothpaste
Toothpaste Skin
Skin Care
Care Chyawanpr
Chyawanpr
Oil
Oil Shampoo
Shampoo ash
ash
Vatika
Vatika Hair
Hair Babool
Babool Dabur
Dabur Dabur
Dabur
Oil
Oil Toothpaste
Toothpaste Uveda
Uveda Honey
Honey
Dabur Promise Dabur
Dabur
Anmol Promise Dabur
Glucose
Anmol Glucose
Meswak
Meswak
DEPTH
DEPTH
 CONSISTENCY
•The Consistency is the degree to which
product lines are related
•
•It also refers to how closely related the
various product lines are in end use,
production requirements, distribution
channels, or in some other way.
•
PRODUCT LIFE CYCLE
•
ORIGIN
•

• THE idea of the Product Life Cycle was first developed in 1965
by Theodore Levitt in an article entitled “Exploit the Product
Life Cycle” published in the Harvard Business Review on 1
November 1965.
•
 INTRODUCTION

All products and services have certain life cycles. The life cycle
refers to the period from the product’s first launch into the
market until its final withdrawal and it is split up in phases.
During this period significant changes are made in the way that
the product is behaving into the market i.e. its reflection in
respect of sales to the company that introduced it into the
market. Since an increase in profits is the major goal of a
company that introduces a product into a market,
 PRODUCT LIFE CYCLE

The “Product Life Cycle” is the name given to the stages through
•

which a product passes over time. The classic Product Life Cycle has
four stages:
1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline
•
 Product Development
Stage

Product development is the incubation stage of the product

life cycle. There are no sales and the firm prepares to
introduce the product. As the product progresses through its
life cycle, changes in the marketing mix usually are required
in order to adjust to the evolving challenges and opportunities
 INTRODUCTION STAGE

•At the market introduction stage the size of the market, sales
volumes and sales growth are small. A product will also normally be
subject to little or no competition. The primary goal in the
introduction stage is to establish a market and build consumer
demand for the product.
•During the introduction stage, the primary goal is to establish a

market and build primary demand for the product class.

 GROWTH STAGE

•The growth stage is a period of rapid revenue growth. Sales

increase as more customers become aware of the product and
its benefits and additional market segments are targeted. During
the growth stage, the goal is to gain consumer preference and
increase sales.
 Maturity Stage
The maturity stage is the most profitable. While sales continue
to increase into this stage, they do so at a slower pace. Because
brand awareness is strong, advertising expenditures will be
reduced. Competition may result in decreased market share
and/or prices. The competing products may be very similar at
this point, increasing the difficulty of the product. The firm
places effort into encouraging competitors' customers to
switch, increasing usage per customer, and converting non-
users into customers. Sales promotions may be offered to
encourage retailers to give the product more shelf space over
competing products. During the maturity stage, the primary
goal is to maintain market share and extend the product life
cycle.
 Decline Stage
• Eventually sales begin to decline as the market becomes saturated, the
product becomes technologically obsolete, or customer tastes change.
If the product has developed brand
• loyalty, the profitability may be maintained longer. Unit costs may
increase with the declining production volumes and eventually no
more profit can be made. During the decline phase, the firm generally
has three options:
a) Maintain the product in hopes that competitors will exit. Reduce
costs and find new uses for the product.
b) · Harvest it, reducing marketing support and coasting along until no
more profit can be made.
c) · Discontinue the product when no more profit can be made or there is
a successor product.
 Development Introduction Growth phase Maturity phase Decline phase
phase phase
Product Limited no. of Introduction of improvement Price decrease Models that are
variations product variationupgrade of not profitable
& models product withdrown

Price High sales to Aggressive price Re-estimation of Defensive price Maintain price
middle man policy for sales price policy policy level for small
increase profit
Promotion Creation of Reinforcement Reinforcement Maintain loyal Gradual
public market of product of middle man to middle man decrease
product awareness &
awareness performance
Distribution Through certain Distribution Distribution Distribution Withdrawal
distribution throughall with good with good from most
channels channels supply but with supply but with distribution
available low margins of low margins of channel
profit profit