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MANAGING PRODUCT

LINE AND PRODUCT


MIX
GROUP :2
PRODUCT
• Anything that can be offered to a market for
attention, acquisition, use, or consumption and
that might satisfy a want or need.

• Products include: physical goods, services,


experiences, events, persons,
places, properties, organizations,
information, ideas
PRODUCT

Core
Product
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 FILLING
• Product Line Filling is the process of adding a
new product within the current range of an
incomplete line.
• Motives for Line Filling. Weber’s Law:
Customers are more attuned to relative than
absolute difference. Line Modernization &
Featuring
PRODUCT LINE- STRETCHING
DECISIONS
Downward Stretch Upward Stretch Two-way Stretch

H H New
H Products
Present New
Products Products
Present

Price
Price
Price

Products

New Present New


Products Products Products
L L L
L Quality H L Quality H L Quality H
Titan
Nescafe Maruthi
PRODUCT MIX
• A Product mix is the set of all products and items
a particular seller offers for Sale.
– Eg :- Dabur
Compenents 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
DABUR
• Established in 1884 by D r. S. K. Burman

• Dabur India Limited is India's leading FMCG Company


with interests in health care, personal care and foods.
• Dabur has two major strategic business units (SBU)-
Consumer Care Division (CCD) and Consumer Health
Division (CHD).
Length And Width

Hair Oils
Hair Oils Shampoo
Shampoo Oral Care
Oral Care Skin care
Skin care Health
Health
Supplemen
Supplemen
ts
Dabur Amla Dabur Dabur Red Gulabari Dabur
Hair Oil Vatika Toothpaste Skin Care Chyawanpra
Shampoo sh

Vatika Hair Babool Dabur Dabur


Oil Toothpaste Uveda Honey

Dabur Promise Dabur


Anmol Glucose

Meswak
Meswak
• The Depth of a product mix refers to how
many variants are offered of each product in
the line.
DEPTH

Hair Oil

Amla Vatika Anmol

Flower Enriched Enriched


Mustard
Magic Coconut Almond
DEPTH

Shampoo

Vatika

Smooth & Dandruff Root


Black Shine Total Protect
Silky Control Strengthening
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.
CONSISTENCY

• Dabur India mainly focus Personal Care


and Health Care. The product line
discussed are broadly classified in the
above two category.
• Hair oils, Shampoo, Oral and Skin Care
comes under Personal Care.
• Health Supplements comes under Health
Care.
BCG Matrix

High Question
Star
mark
Market growth
rate

Cash
Low Dog
cow

High Low
Relative Market
BOSTON CONSULTING GROUP (BCG)
MATRIX is developed by BRUCE
HENDERSON of the BOSTON
CONSULTING GROUP IN THE EARLY
1970’s.

According to this technique, businesses or


products are classified as low or high performers
depending upon their market growth rate and
relative market share.
THE BCG GROWTH-SHARE
MATRIX

• It is a portfolio planning model which is based on the


observation that a company’s business units can be classified in
to four categories:
 Stars
 Question marks
 Cash cows
 Dogs

• It is based on the combination of market growth and market


share relative to the next best competitor.
STARS
High growth, High market share
• Stars are leaders in business.
• They also require heavy investment, to
maintain its large market share.
• It leads to large amount of cash consumption
and cash generation.
• Attempts should be made to hold the market
share otherwise the star will become a
CASH COW.
CASH COWS
Low growth , High market share

• They are foundation of the company and


often the stars of yesterday.
• They generate more cash than required.
• They extract the profits by investing as little
cash as possible
• They are located in an industry that is
mature, not growing or declining.
DOGS
Low growth, Low market share

• Dogs are the cash traps.


• Dogs do not have potential to bring in
much cash.
• Number of dogs in the company should
be minimized.
• Business is situated at a declining
stage.
QUESTION MARKS

High growth , Low market share

• Most businesses start of as question


marks.
• They will absorb great amounts of cash if
the market share remains unchanged,
(low).
• Why question marks?
• Question marks have potential to become
star and eventually cash cow but can also
become a dog.
• Investments should be high for question
marks.
WHY BCG MATRIX ?

To assess :
 Profiles of products/businesses
 The cash demands of products
 The development cycles of products
 Resource allocation and divestment
decisions
BENEFITS

• BCG MATRIX is simple and easy to


understand.
• It helps you to quickly and simply screen
the opportunities open to you, and helps
you think about how you can make the
most of them.
• It is used to identify how corporate cash
resources can best be used to maximize a
company’s future growth and profitability.