Major Types of Product Mix Strategies
1) Expansion Strategy: A firm may decide to expand its present mix by increase the number of lines or the depth within the lines. Now lines may be related or unrelated to the present products. The company may also increase the number of items in its product mix.
2) Contraction Strategy: Another product strategy is to narrow the product mix, either by eliminating entire line or by simplifying the assortment with in a line. The objective is to eliminate low-profit products and to get more profit from fewer products.
3) Alteration of existing product: Sometimes organization instead of developing a complete new product improve and establishes product that can be more profitable and less risky than developing completely new one.
For material goods, especially, redesigning is often the key to products, and renaissance packaging has been a very popular area for product alteration, particularly in consumer products.
4) Positioning Strategy: Positioning of product in the market is a major determinant of company profits. A product position is the image that the product projects in relation to competitive product and to other products marketed by the same company.