productmix

Product mix, or product assortment, is the set of all products and services a company offers to its customers. It is often described using four dimensions: width (the number of distinct product lines), length (the total number of items within all lines), depth (the number of versions of a particular product), and consistency (how closely related the lines are). A well-managed product mix aligns with the company's brand, capabilities, and market strategy.

Managers make decisions to widen or narrow the mix, extend or prune lines, and add or remove variants. Width expansion adds new lines to reach new customer needs; depth increases the number of options within a line to capture more market segments; line extensions add variations of an existing line. Pruning reduces complexity by removing underperforming lines or SKUs. These decisions balance growth, cannibalization risk, supply chain efficiency, and brand clarity.

Performance is evaluated by metrics such as sales, gross margin, contribution margin, and SKU profitability, as well as metrics like sell-through rate and product life-cycle stage. Tools include product portfolio analysis, ABC or XYZ classification, and scenario modeling to forecast cannibalization and channel impact. Effective management requires coordination across product development, marketing, sales, and operations.

In practice, the product mix interacts with overall marketing strategy and business goals. A broad, shallow mix may attract more customers but dilute brand identity, while a narrow, deep mix may strengthen specialization but reduce reach. Companies continually adjust the mix in response to market trends, competitive moves, and internal capabilities.