REVIEW OF PRODUCT MIX OF A COMPANY

Akansha- 61Akshara – 62

Ali – 63Alok -64

Question!

WHAT IS PRODUCT MIX?

YES! Exactly!

• Product Mix or Product Portfolio refers to all the products that a seller has to offer.

• Example:1. Sony: TV, Cell phones, Audio, Laptops,

Gaming2. Ferrari: Cars, Bags, Perfumes, Watches3. Cadbury: Chocolates, Beverages, Biscuits

About Cadbury! – A Brief History

1. Started by John Cadbury in Birmingham in 1824 in family grocery store.

2. Expanded by sons – Richard and George. They also established a town Bournville as a part of expansion.

3. 60 countries4. 50,000 worldwide employees5. HQ – London, England.6. More than 300 different products in all

countries combined.

About Cadbury India!

• In India since 1948 – with importing chocolates .• 4 plants - Thane, Pune, Gwalior, Baddi (HP)• Head Office - Mumbai• 4 Regional Offices - New Delhi, Kolkata, Chennai,

Mumbai • More than 50 products in all categories• Sells 22,000 tonnes worth Rs. 650 crores• 74% Market Share in Chocolate in India.

Product Mix

Width - number of different product

lines

Length - total number of itemswithin the lines

Depth - number of versions of each

product

Product Mix - all the product

lines offered

Con

sist

ency

Different types of products

offered by the

company

Various brands offered under each type of

product

Different sizes in which each brand is available

Dr. Reeti Agarwal

PRODUCT MIX

The product mix of Cadbury includes (with few examples):

1. Chocolates – Dairy Milk, 5 Star, Perk, Gems, Silk etc.

2. Candy – Halls, Eclairs3. Biscuit – Oreo.4. Beverages & Health Drinks – Bournvita, Tang.

FLOWCHART REPRESENTATIONChocolate Candy/Gum Biscuit Beverages

DairyMilk Eclairs Oreo Tang Celebration Halls Bournvita Bournville Bubbaloo Hot Chocolate 5 Star Cocoa Powder Perk Gems Temptation

The product width is 4 The product length is 15.

QUESTION!

Which is the latest product launched by Cadbury??

Hint : It’s a Chocolate!

Product Depth

• Dairy Milk: Rs. 2, 5, 10, 20, 30(Almond, Crackle, Fruit & Nut), 50, 60 (Silk)

• Temptation: 5 Flavors – All Rs. 55• Bournville: 4 Flavors – 2 Sizes – Rs. 75 & 30• Gems: Rs. 5, 10, 115.• Celebration: 50, 75, 100, 150, 450, 600.• Perk: 2 variants for Rs. 5 each and one for Rs. 30• 5 Star: Rs. 5, 10, 15(Crunchy), 20(Fruit & Nut), 30.

LINE STRETCHING

Down Line Stretching

Up LineStretching

Two Way Line

Stretching

DOWNWARD STRETCHING

• SHOTS launched in 2008.• For Both Consumers and New User• Make Chocolate even more affordable(Value

for Money)• Slogan – “Rs. 2 mein 2 Laddu”

UPWARD STRETCHING

• SILK & BOURNVILLE• Launched in 2009, 2010 respectively.• To fill in premier chocolate segment.• Slogans used to make project claasy and

premium. – “ HAVE YOU FELT THE SILK YET” & “YOU DON’T BUY A BOURNVILLE, YOU EARN IT”

LINE FILLING

• PERK• Combination of Chocolate and Snack.• Competition: KIT KAT• For Rs. 5• Users: People who eat chocolate and light

snacks.

LINE MODERNIZATION

• A strategy in which items in a product line are modified to suit modern styling and tastes and re-launched.

• Example:1. 5 Star Crunchy 2. Perk Glucose3. Choco Eclair

LINE PRUNING

• Reducing the depth of a product line by deleting less profitable offerings in a particular product category.

Question!

Q) What is the Slogan for 5 Star?

PRODUCT CONSISTENCY• The term consistency in reference to the

product mix has to do with the closeness of the products in relation to use, distribution outlets, target markets and price range.

PRODUCTION

Same Ingredients

Same Quality

END USER

Chocolate = Joy

Increase sugar level in the

body.

DISTRIBUTION

Directly to retailers and wholesaler

(Same distribution

channel)

Facts & Conclusion• Use Amitabh Bachchan & Ranbir Kapoor as Ambassadors –

Higher Reach, Reliable and Brand Value.

• Availability: Directly sold to retail outlets. No middlemen. Available at Kirana Stores, Medical Stores, Malls, Cafeterias and Gift Shops.

• Demographic: Children 55%, Adults 12%, Young Adults 12%

• Celebrations: For gifting purposes – Birthdays, Anniversaries, Diwali, Raksha Bandhan.

THANK YOU!QUESTIONS WELCOME!