Question

Some companies have very narrow product mixes, producing just one or two products, whereas others have many different products. What are the advantages of each approach?

(around 250 words)

Answer 1

The company offering the product range is working on variations on the theme. The company specializes in specific products or services, but offers additions or changes to suit different types of customers. As the company develops strong core product lines, the product range allows the company to focus on those product lines while still offering a wide range of sizes, colors, flavors or functions to attract potential customers.
Product integration differs from the product range in that companies that offer product combinations offer many different product lines in the market. The main advantage of product mix is ​​that it gives the company more opportunities to reach customers. Most products in a product combination are interconnected, so customers who choose items from one product line will also consider choosing items from a related product line, for example from a company that sells soaps, creams and razors under the same brand.

The company can gain customer loyalty with a solid product mix. When customers trust products from this brand, customers are more likely to trust products from the same brand. For example, sportswear manufacturers can encourage customers to buy shoes, socks, training shoes, baseball caps and golf shirts. Small businesses that make kitchen appliances can diversify their product combinations, including cooking utensils, pots, knives, carving and cutting boards.