Podcast
Questions and Answers
Which factors are considered in product line decisions? (Select all that apply)
Which factors are considered in product line decisions? (Select all that apply)
What is product line contraction?
What is product line contraction?
Reducing the number of product items in a line.
Give an example of product line expansion.
Give an example of product line expansion.
Philips expanded into electrical goods.
Quality variation refers to offering the same quality product at varying prices.
Quality variation refers to offering the same quality product at varying prices.
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What does a product mix consist of?
What does a product mix consist of?
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Which of the following companies was mentioned as having various product lines?
Which of the following companies was mentioned as having various product lines?
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Study Notes
Product Line Decisions
- Consider various factors when making product line decisions
- Consumer preferences: Understanding consumer demand is crucial
- Competitor strategies and tactics: Analyze competitors' actions to stay competitive
- Firm's cost structure: Evaluate internal costs to ensure profitability
- Changes in demand: Adapt product lines to changing market trends
- Buying habits and patterns: Analyze consumer purchasing behaviors
- Marketing influences: Assess the impact of marketing campaigns
- Product influences: Consider existing product strengths and weaknesses
- Company objectives: Align product line decisions with overall business goals
- Product specialization: Focus on specific product niches to gain expertise
- Line modernization: Update products to remain relevant in the market
Product Line Modification
- Modifying product lines can enhance a company's offerings
- Product Line Contraction: Reducing the number of products can eliminate unviable options
- Example: Karnataka Soaps and Detergents Ltd. discontinuing "Mysore Gold" soap due to poor customer reception
- Example: Standard Motors ceasing production of "Gazal" and "Standard Herald" cars
- Product Line Expansion: Adding new products to broaden the product portfolio
- Example: Philips expanding into electrical goods, tape recorders, and television sets
- Example: Colgate introducing Colgate Gel toothpaste
- Example: Dettol Talcum powder, Dettol Extra Soap, and Nima toilet soap
Product Decisions
- Different strategies for product decision-making to target specific consumer segments
- Quality Variation: Offering products with varied quality and price points
- Trading Up: Introducing higher quality products to attract a premium audience
- Example: Maruti Esteem and Zen automobiles
- Trading Down: Launching lower quality products to reach a broader market segment
- Example: Bajaj Sunny moped
- Example: Balasana Hygiene Products adding Babul to their existing line for rural markets
Product Mix
- A complete set of products offered by a company is referred to as a product mix or product portfolio.
- Multiple product lines constitute a product mix
- Example: Godrej's diverse product lines including furniture, soap, shaving products, locks, typewriters, refrigerators, computers, and heavy chemicals.
- Example: LG Electronics with 12 product categories
- Example: HUL with 12 product lines, Tata Motors with 4 categories, each with 12 passenger cars.
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Description
This quiz explores the critical factors involved in making product line decisions and the importance of modifying these lines to meet market demands. Topics include understanding consumer preferences, analyzing competitor strategies, and evaluating a firm's cost structure. By assessing these elements, businesses can align their product offerings with overall goals and current market trends.
