Magnitude is a Tucson brand marketing, public relations, and interactive agency. Our services include mobile app development, e-commerce, SMM, and web content creation. However, we’re more than media and marketing. Our strategic business development and product mix analysis team lead by Tony Ford can help identify improvements at the root of your customer experience. Magnitude Means Business Growth.
What is Product Mix Analysis?
Before we get to explain what is a product mix of a company, let’s define what a product line is. A product line “refers to the list of all the related products manufactured or marketed by a single firm.” Moreover, the items within one product line might be similar regarding the target audience’s needs, staff, or technology. On the other hand, a product mix is a total number of product lines offered to the customers by your business.
Your product mix is a vital part of your company’s business model. It’s defined by four characteristics, such as width, length, depth, and consistency. First, width defines the variety of the product lines the business has to offer, while length defines a number of products in the product mix. Second, depth refers to the product variants within one product line. Finally, consistency is the relations between product lines regarding price, media channel, distribution, and so on.
How you can leverage product mix analysis
Many businesses do a product mix analysis when they are going to introduce a new product. An analysis done right can make all the difference for the future success of your brand. Here are some tips on how you can leverage your analysis.
Analyze what worked in the past
Make sure to evaluate the sales data from the past to see what worked with your target audience and what didn’t. As a result, you’ll know which sales practices should remain and which you should remove from your company’s operations. Based on past trends, make these decisions.
Look at the bigger picture
Of course, every element of your product sale strategies is important. However, don’t forget to look at the bigger picture. If you pay too much attention to details, you might not notice how the new products will affect your whole product line.
Make predictions based on findings
By using the findings of your current and past products, you can measure how they impact your company’s bottom line. Furthermore, use this information to predict the performance of other products. As a result, you will always have ideas about how to expand your product mix.
Motivate your team
For your sales reps to drive a richer product mix, you’ll need to share all your findings with them and create an incentive. As such, these can be detailed guides on why and how to sell specific products from your product lines.
Why should you let us work on your product mix analysis?
When it comes to product mix analysis, many businesses don’t understand clearly its impact on their bottom line. Hence, they don’t have an accurate way of measuring it. We at Magnitude Management believe that to thrive in the mobile based and social commerce environment, companies must adapt and iterate quickly. Our experienced team members look forward to speaking with you about your next project. Schedule your consultation and let us bring your business to the next level.
If you would like to know more about product mix analysis, you will find these sources helpful.
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