Setting product strategy II

Each product is related to certain other products. The product hierarchy stretches from basic needs to particular items that satisfy those needs. We can identify six levels of the product hierarchy and align them to our product i.e. Classic Milds:

• Need family: What is the basic need being fulfilled? E.g. Relaxation
• Product family: The umbrella term that encompasses product classes that have the potential to satisfy that need. E.g. Tobacco products
• Product class: A group of products that are homogeneous or generally considered as substitutes for each other. The class is considered as narrow or broad depending on how substitutable the various products are. E.g. Cigarettes
• Product line: A group of products marketed by an organization to one general market. The products have some characteristics, customers, and/or uses in common, and may also share technologies, distribution channels, prices, services, etc. There can be product lines within product lines. E.g. Wills Classic
• Product type: A grouping of similar kinds of manufactured goods or services. A product type might be used by the marketing team of a business to structure its overall marketing strategy and direct it toward optimally interested consumers. E.g. Wills Classic Milds
• Item: The specific product which fulfills the need. E.g. A box of Will Classic Milds Special Edition

Product Mix is used to highlight the various product types which are catered to by a company.

In this case, the company is the corporation that produces Classic Milds, i.e. ITC Limited
Width: How many different types of tobacco products are manufactured by ITC Limited? Cigarettes
Depth: Under each cigarette type, what are the various other lines? Depth refers to the collection of all the lines offered by the company under each category
Lines: Under each cigarette type, what are the various sources of revenue for the company? Wills Classic, Goldflake, India Kings, Navy Cut