Product mix and its dimensions, with examples

Meaning of product mix

The product mix, also called the product assortment or portfolio, is everything a company sells, taken together: all its product lines and the items in them. Deciding it is one of the product decisions in the marketing mix. A product line is a family of products that do a similar job, reach the same buyers, move through the same outlets or sit in one price band; a product item is one particular version within a line. The product mix shows the overall scope of a firm's offerings and is a key basis of its product strategy.

Dimensions of the product mix

To illustrate, consider a hypothetical company, Sahyadri Foods Ltd., with the following lines:

1. Width (breadth). The number of different product lines the company carries. Sahyadri has four lines, so the width of its mix is 4. A large consumer-goods company may carry many lines spanning food, personal care and home care; a specialist firm carries few.
2. Length. The total number of items in all the lines. Sahyadri has 5 + 3 + 2 + 2 = 12 items. The average length of a line is 12 ÷ 4 = 3. A longer mix offers more choices and covers more price points.
3. Depth. How many variants of each product the line offers: sizes, flavours, pack types. If Sahyadri's cream biscuit comes in chocolate, vanilla and strawberry, each in two pack sizes, its depth is 3 × 2 = 6. Depth lets the firm meet different tastes and budgets.
4. Consistency. How far the lines belong together: similar uses, similar production, the same channels. All four of Sahyadri's lines are packaged foods and beverages sold through the same grocery outlets, so its mix is highly consistent. A company that also made cement would have a far less consistent mix.

Real-world illustration: a large Indian consumer-goods company has a wide mix (soaps, detergents, shampoos, tea, packaged foods); a car maker has a long line of models from small hatchbacks to utility vehicles; a biscuit brand offered in many flavours and pack sizes is deep; and a paint company that makes only decorative and industrial paints has a consistent mix.

Conclusion

The four dimensions give the company four ways to grow its business: add new lines (widen), add items (lengthen), add variants (deepen), or keep the mix related (consistent) to build a strong reputation in one field. Decisions on these dimensions also affect costs, shelf space and the firm's competitive position.