Now let's talk about the concept of product mix.
The product mix includes all product lines.
The amplitude of the product mix refers to the quantity of the product lines
with in the categories that the organization place in.
For example, here at Fnac, we can see that Sony is present in consoles,
in watches, in cameras, in TVs, in phones, etc, etc.
Therefore, a product line is a group of products that fulfil the same function.
Each product line can be described in terms of their longital,
the total number of elements of product line.
We can see here at the TVs that we are under the same name brand.
We have UHD 4K or LED or Smart TVs.
Then we have the def, the number of version and
variants of each product within the same line.
For example, within Sony UHD 4K and
49 inches we have once that may have a higher resolution or
they have 4K reality pro with MHL or
they have more USB ports or they have a 1000 Hertz and then we have.
Another ones which have different resolutions, and they have different
ports, and they have what's called SCART with 200 Hertz, among others.
As you can see, understanding your product mix is also crucial,
because it needs to be differentiated enough to address distinctive
needs from the customer's point of view.
And I want to clarify that not from RND's point of view.
Why else are we continue talking about this?
Because the main challenges that you will encounter in managing your product mix
are that your organization must determine the optimal number of product lines
as well as the longitude and the depth of each one.
And you should consider the consistency of a product mix.
Understand which characteristics are shared by product lines.
For example, do they have the same technology that we can leverage, or
are the products addressed at the same market segment?
Are they commercialized through the same channels, etc.?
All of these questions will impact the development of your new product and
your marketing and sales approach.
That is why I'm encouraged you think about them from the get-go.
I hope you've enjoyed your visit to Fnac.
It is now time to discuss the product life stages.
Yes, like humans, they're born, they mature and they die.
That is the topic of our next lecture.
See you there.
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