Product structure refers to the proportion of various products sold by enterprises in quality structure and quantity. It is manifested in three aspects: breadth, depth and relevance. The different proportions of these three aspects constitute different product combinations.
The width (also called breadth) of product portfolio refers to the number of product lines marketed by an enterprise. The more production lines, the wider the product portfolio, and vice versa. Product line, also known as product category, is a group of similar product items with similar functions but different specifications and models. A product line usually includes a series of product items. Product items refer to all products listed in the product catalog. Generally speaking, large enterprises have a wide product portfolio, while small and medium-sized enterprises have a narrow product portfolio.
The depth of product portfolio refers to the number of product items in each product line marketed by enterprises. The more projects, the longer the product line, that is, the deeper the product portfolio, and vice versa.
The correlation degree of product portfolio (also called density) refers to the degree of connection between product lines in terms of end use, production conditions and sales channels. The closer the connection, the greater the correlation.
According to the width, depth and relevance of product lines, different product combinations can be formed. For example, the product combination can be deep and narrow; It can also be that the product combination has a large width and a small depth; It can also be a strong correlation between product lines, or a weak correlation, or even no correlation between product lines. Different product combinations are suitable for different economic conditions. Enterprises can choose according to their own conditions.
It is of great significance to carry out the research on product mix for the development of enterprises. If enterprises can reasonably expand the width of product portfolio, they can continuously improve their social influence and give full play to their potential; If enterprises can properly explore the depth of product portfolio, they can attract different customers and occupy more markets in similar products; If the products of an enterprise are highly relevant, it will increase the marketing strength of the enterprise and improve its market position.
2. The type of product portfolio can be divided from different angles, and there are two common methods:
(1) According to the factors that make up the product mix, it can be divided into horizontal type, vertical type and comprehensive type.
(1) horizontal combination refers to the combination of products that enterprises market in width, that is, by increasing product lines.
② Vertical combination refers to the product combination of enterprise in-depth marketing, that is, adding product items in the product line without increasing the product line.
Comprehensive combination refers to the combination of different types of products marketed by enterprises, which is realized by increasing the width and depth and weakening the degree of correlation.
(2) according to the product itself.
It can be divided into performance combination, quality combination, grade combination, style tone, specification combination, trademark packaging combination, marketing service combination and comprehensive combination.
① Performance combination refers to the combination of different performance products sold by enterprises. Because users have different requirements for products. Form commodities with different properties. Enterprises selling products with different performances can carry out deep processing on the basis of the original products, increase the radiation power of products and reduce marketing risks. However, adopting this combination requires enterprises to have high technical strength.
② Quality combination refers to the combination of products with different quality sold by enterprises. Include combinations of different quality standards and combinations of different qualities. The combination of different quality standards refers to the combination of international standards, national standards, ministerial standards, industry standards, enterprise standards and various standards; The combination of different qualities refers to the combination of high quality, medium quality, low quality and their mixtures under the same quality standard. Quality is the basis of competition. However, due to the different production technology level of enterprises and the interests pursued by consumers when purchasing goods, the quality of products produced and demanded is also different, thus forming different product quality combinations of enterprises. At present, most enterprises in China adopt mixed quality combination. For example, some products of enterprises adopt international standards and some adopt ministerial standards; Some won gold and silver awards in the national quality appraisal, or were rated as excellent products of the Ministry and the province, and some were of low quality, and there was a phenomenon that first-class, second-class and third-class products coexisted. Adopting different quality combinations is beneficial to the enterprise to make the best use of its talents and materials.
(3) Grade combination refers to the combination of products of different grades sold by enterprises. It is divided into four forms: high-grade product combination, middle-grade product combination, low-grade product combination and mixed-grade product combination. High-end product mix means that enterprises are marketing high-end products to meet the needs of consumers with high purchasing power; Mid-range product mix refers to the marketing of mid-range products by enterprises to meet the market demand of middle-income people; Low-end product mix means that enterprises are marketing low-end products to meet the consumption needs of those low-income people; Mixed-grade product mix refers to the combination of high, medium and low-grade products marketed by enterprises to meet the market needs of consumers at different levels.
④ Style hue refers to the combination of products with different styles and colors sold by enterprises. Enterprises dealing in food should also include the combination of products with different flavors. By combining different styles and colors, enterprises can expand the market scope and attract more customers.
⑤ The combination of specifications and models is the combination of products with different specifications and models sold by enterprises. Adopting different combinations of specifications and models is conducive to giving full play to the advantages of enterprises and improving their competitiveness.
⑥ Trademark packaging combination refers to the combination of different trademarks and different packaging products sold by enterprises. Because the products marketed by enterprises can adopt uniform trademarks and similar packaging, products of different product lines and different product items can only have one expression. However, in order to distinguish their products from varieties, quality and specifications, many enterprises have different combinations of trademarks and packaging. What kind of combination should be adopted should obey the requirements of the overall strategy of the enterprise.
⑦ Marketing service combination refers to the combination that provides services for enterprise marketing products. Some services are required by all products, such as "three guarantees" service; Some products are different, for example, some need delivery, some need maintenance, and some need installation. The marketing service combination should be determined according to the product requirements.
⑧ Comprehensive combination refers to the combination of different varieties, quality, performance, grades, styles, colors, specifications, models, trademarks, packaging and services in different categories. In terms of specific combination, some enterprises adopt many combination factors, while others only adopt a few factors. The advantage of this combination is to use the power of various combinations to occupy a broad market.
3. Product mix strategy and its selection
Product combination strategy refers to the optimal combination decision on the width, depth and relevance of product combination according to the marketing objectives of enterprises. Because the types of marketing products of enterprises are limited by manpower, financial resources, material resources, market demand and competitive conditions, it is necessary to make the optimal combination decision of marketing products according to these limiting factors. There are five common product mix strategies:
(1) omni-directional combination strategy
Also known as "multi-series comprehensive combination strategy". It refers to the combination of multiple product lines and multiple product items in each product line, that is, the combination with large width and depth and high correlation. The characteristic of this strategy is to provide all products that any customer needs, that is, to take care of the needs of the whole market. The advantage of this strategy is that the market is vast, but only those powerful large enterprises can do it.
(2) Market professional combination strategy
This strategy refers to the combination of multiple product lines and multiple product items, that is, the combination with large width and depth but small correlation. It is characterized by the combination of various products to meet the needs of the professional market. The advantage of this strategy is that it is easy to meet the needs of some customers. Because you are familiar with them, it is easy to occupy the professional market as soon as possible. But this is still a strategy that only large enterprises can adopt.
(3) the specialization strategy of product series
This strategy refers to the combination of several product items and several product lines with high correlation, that is, the combination with small width and depth but high correlation. The characteristic of this strategy is to produce a product to meet the requirements of all customers. Its advantages are specialized production and high efficiency.
(4) product series centralization strategy
This strategy refers to concentrating the strength of enterprises to produce several product items in a single product line, that is, the combination with the smallest width, slightly larger depth and close correlation. Its characteristic is to produce a single series of products to meet the needs of a single market. The advantage of this strategy is that products and markets are relatively concentrated, and it is easy to concentrate and occupy. This is a combination strategy often adopted by small and medium-sized enterprises.
(5) the specialization strategy of special product series
This strategy means that enterprises use their own specialties to produce some best-selling products of special product lines to meet the special needs of the market. For example, the production of some handicrafts. The advantage of this strategy is weak market competition; The disadvantage is that the market scope is small.
Product mix strategy provides content and form for enterprises to determine product mix, but which form is more suitable for enterprises and which combination can bring greater benefits to enterprises is different. Therefore, enterprises must carefully analyze various conditions and determine their own product mix.
Enterprises choose the product mix strategy mainly considering the following factors:
First, enterprises do. Enterprise strength is the primary factor that determines the choice of enterprise product portfolio. Because the number of product lines, the depth of each product line and the correlation between product lines must be completed through the human, financial and material resources of the enterprise. Therefore, generally speaking, large enterprises with strong strength can adopt all-round strategy and product series specialization strategy; Small and medium-sized enterprises should adopt product series specialization strategy and product series centralization strategy; For enterprises with special technology, we can adopt the strategy of specialization of special product series.
Second, the development potential. Enterprises should not only see the current sales situation, but also see the development potential of various products when choosing product mix strategy. The development potential of products is shown in three aspects: market share, sales growth rate and market scope. The continuous improvement of market share shows that the market share of enterprises is expanding; The increase of sales growth rate shows that the position of the product in the enterprise has improved; The expansion of market scope will benefit all competitive enterprises, because even if the market share remains unchanged or decreases at this time, as long as the market expansion is greater than the market share decrease, its total volume is expanding. According to these three factors, the product mix of enterprises should choose those products that are high in all aspects.
Third, profitability. Profitability means that product mix can bring greater benefits to enterprises. Profitability is related to the future development of enterprises. Therefore, it is an important basis for choosing product mix strategy.
When the above conditions are used to select the product mix strategy. Attention must be paid to the following issues:
First, we should look at all conditions from the perspective of development, consider the current situation and long-term development together, and avoid that the current choice is not suitable for future development.
Second, we should look at all conditions from a comprehensive point of view, because these conditions are a unified whole, and we should avoid the wrong tendency of emphasizing one hand over the other to ensure the correctness of strategic choice.