trading up product-mix strategy

Big top 8 Alternative Mathematical product Mix Strategies

Article divided up past :

The major alternative ware mix strategies (given by William Stanton and others) have been discussed briefly as under:

1. Expansion of Production Mix:

Expansion of product combine implies increasing the number of product lines. Inexperienced lines may be related or misrelated to the in attendance products. For example, Bajaj Company adds car (unrelated expansion) in its product mix or may add unaccustomed varieties in two wheelers and leash wheelers. When company finds it difficult to sub market with existing mathematical product lines, it English hawthorn decide to expand its production mix.

For instance, Hindustan Unilever Limited has various products in its merchandise merge so much as:

(1) Toilet soaps, detergent cakes, washing powders, etc.

(2) Aesthetic products,

(3) Edible items,

(4) Shaving creams and blades,

(5) Pesticides, etc.

If company adds voiced drink arsenic a new product line, information technology is the exemplar of expansion of cartesian product mix.

2. Compression of Product Mix :

Sometimes, a company contracts its merchandise mix. Contraction consists of descending or eliminating one or Thomas More ware lines or merchandise items. Hither, fat product lines are made thin. Some models or varieties, which are not advantageous, are eliminated. This strategy results into Sir Thomas More profits from less products. If Hindustan Unilever Limited decides to eliminate particular brand of potty shop from the toilet store product line, information technology is example of contraction.

3. Deepening Production Mix in Depth :

Here, a company will not add new product lines, but expands one Oregon more excising product lines. Here, whatsoever mathematical product lines become fat from thin. For example, Hindustan Unilever Limited offering ten varieties in its editable items decides to add tetrad more varieties.

4. Alteration or Changes in Existing Products :

Instead of developing completely a hot production, marketer may ameliorate one or more established products. Melioration surgery alteration can glucinium more profitable and less unsafe compared to all a new product. For example, Maruti Udyog Limited decides to better fire efficiency of existent models. Modification is in forms of advance of qualities or features or some.

5. Developing New Uses of Existing Products :

This product merge strategy concerns with finding and communicating new uses of products. Nobelium attempts are made to disturb product lines and production items. It is possible in footing of more occasions, Sir Thomas More measure at a time, or to a greater extent diversified uses of existing merchandise. For lesson, Coca Cola may convince to employ its soft drink along with tiffin.

6. Trading Up :

Trading awake consists of adding the high-Leontyne Price-prestigiousness products in its existing product line. The new product is intended to strengthen the prestigiousness and good will of the society. New prestigious product increases popularity of company and improves image in the mind of customers. By trading up product mix strategy, demand of its sleazy and usual products can comprise bucked up.

7. Trading Down :

The trading down product mix strategy is quite polar to trading rising strategy. A company producing and selling costly, influential, and premium quality products decides to add bring dow- priced items in its dearly-won and prestigious product lines.

Those WHO cannot yield the underivative high-priced products can buy to a lesser extent expensive products of the same company. Trading down strategy leads to attract price-sensitive customers. Consumers can buy the high condition products of celebrated troupe for a song.

8. Product Differentiation :

This is a unique product mingle strategy. This strategy involves no change in price, qualities, features, or varieties. In short, products are not undergone whatever change. Product differentiation involves establishing superiority of products over the competitors.

By using rigorous advertising, hard-hitting salesmanship, strong sales promotion techniques, and/surgery publicity, the company tries to convert consumers that its products tooshie offer more benefits, services, and superior performance. Company can convey the people the distinct benefits of its products.