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Product Levels Example:

5. Introduce New Features

4. L

ong Battery Life3. Robust & Durable

2. Mobile Phone

1.

Communicate

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Product Hierarchy:

Need Family: To pass time while on move Product Family: Entertainment

Product Class: Portable Entertainment

Instruments Product Line/Category: Portable DVD

players, CD players, MP3 players

Product Type/Form: Audio ipods Brand: Apple

Item/SKU: Apple ipod nano 4GB

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Other Product Hierarchy Concepts:

Product System: Product Mix

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Product Classifications:

On Basis of Durability & Tangibility:Non Durable Goods

Eg: FMCG products

Durable Goods

Eg: TV, Mobiles

Services

Eg: Aviation Industry

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Consumer Goods Classification:

Convenience Goods: Purchased Frequentlywith min. effort.

Staples: Eg: Food items, soaps etc.

Impulse Goods: Eg: Chocolates, Magazines etc.

Emergency Goods: Eg: Some pharma products

Shopping Goods: Selection & Comparison

Process before purchase Eg: Apparel, Furniture

Specialty Goods: Unique Characteristics/Brand

Eg: Mercedes Benz, Bose Speakers

Unsought Goods: Consumer normally doesn’t

buy them till persisted Eg: Helmets, Reflectors

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Industrial Goods Classification:

Materials & Parts:Raw Material: Eg: Milk for Ice Cream etc.

Manufactured Material: Eg: Cement

Capital Items: Installations: Eg: Factories, power plants

Equipment: Eg: Tools, Lift trucks

Supplies & Business ServiceEg: Office Stationary, cleaning services

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Product Mix:

Width of Product Mix (Product Categories):Eg: For HUL it is Detergents, Deodorants,

Soap, Shampoo, Tea, Ice Cream etc.

Length of Product Mix (Brands): Eg: For HUL it is Surf, Rin, Lux, Axe, Sun Silk,

Brooke Bond, Lipton, Kwality-Walls etc.

Depth of Product Mix (SKUs): Variants of each brand.

Consistency of Product Mix: Close relation

among product categories

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Product Line Strategies:

Line Stretching: Taking product line to newsegmentDown Market Stretching/Trading Down: Eg:

Tata’s 1 lakh car Up Market Stretching/Trading Up: Eg: Hyundai’s

Verna, Elantra, Sonata, Tuscon

Two-Way Stretching:Eg: Nokia Mobile Models

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Line Filling: Adding More Variants/FillingProduct DepthMaruti’s Strategy

Line Modernization: Eg: Onida’s newtechnologically advanced products

Line Featuring: Eg: Tata Indica & Indigo

Line Pruning: Eg: HUL concentrating on 30

power brands out of its 110 brands.

Product Line Strategies (Cont.):