Product mix is the sum total of all products that a company offers. For example, a pet food manufacturer may offer several varieties of dog and cat food. These multiple products may serve different customers, dog and cat owners, but the products are all part of the company's product mix. Products within a product mix can either be similar or variegated. There are also 4 dimensions to product mix: width, length, depth and consistency.
A range of associated products that yields larger sales revenue when marketed together than if they were marketed individually or in isolation from others.
Width : The width of product mix includes all the product lines that a company sells. For example, if a vitamin company sells various vitamins, diet products and sports drinks, its product width is three.
Length: The length of a company's product mix pertains to the total number of products the company sells, For example, a small consumer products company may have three product lines: snacks, cereal and canned meats. This consumer products company may sell five snack items, four cereals and three varieties of canned meats. Therefore, the company's product mix length is 12.
Depth: A company's product mix depth pertains to the total number of variations for each product. Product variation can include flavor, fragrance, size and any other salient attribute. For example, if a small pastry manufacturer sells 3 flavors of pastries and two sizes of each flavor, the product depth is six.
Consistency: Consistency in product mix
refers to the relationship between product lines, including use, production and
distribution. For example, a small fruit drink manufacturer may use similar
production lines for several different types of drinks. Hence, the production
of that company's product mix is highly consistent.
Strategy of product mix
Almost all companies start with
limited width, length and depth in their product mix. Additionally, a company's
product mix will also be highly consistent early on. However, competition or
technology may force a company to become more diversified. For example, a small
lavatory manufacturer may need to sell vessels, various styles of sinks and
faucets to gain more exposure at a kitchen and bath dealership. Consequently,
the additional products will likely add to the width, length and depth of the
company's product mix.