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Product mix and product depth are essential concepts for businesses of all kinds.
Product mix encompasses all the product lines a company offers. Product depth refers to the variety within each product line.
By focusing on the two, companies can create a smart product management strategy and cater to their customers’ needs.
This guide will help explore product mix and depth in greater detail, complete with realistic examples and practical tips.
TL;DR
- Product mix refers to the total collection of products and services offered by a company. This encompasses all product lines, categories, and individual items.
- Product depth refers to the range of variants available for each product within a product line. Variations may include different sizes, colors, features, plans, etc.
- Providing depth helps address diverse customer needs to boost sales, revenue, and loyalty while differentiating your company from the competition.
- You can find examples of product depth across business spheres, from cosmetics to SaaS.
- The key steps for defining product depth include identifying core products and user segments, listing various features, creating versions, setting pricing, and regularly adjusting based on feedback.
- Ready to perfect your product mix and depth strategies? Schedule a Userpilot demo and see how you can get started.
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What is product mix?
Product mix, also known as product assortment, refers to the total range of products a company offers for sale. This includes all the product lines and individual items within those lines.
There are several elements to consider when creating product mix strategies, such as:
- Product line: Refers to a range of related products offered by a company, often under a single brand or category.
- Product width: The number of different product categories or lines a company offers.
- Product length: The total number of products within a particular product line.
- Consistency: The degree to which a product’s features, quality, and performance are uniform and reliable across different units.
- Product depth: The variety of options or variations available within a specific product line.
For example, Procter & Gamble has a wide product mix that includes various product lines, such as beauty and grooming, health care, and home care.
Within these product lines, they offer numerous products (length), each with multiple variations (depth) as well.
Lastly, the degree of relatedness among these lines would define the consistency of their product mix.
In SaaS, product mix refers to the overall suite of software products and services a company offers.
This includes all the different types of software solutions a company provides.
For example, Semrush is known as an SEO and content marketing platform. But it also offers a wide range of apps and products for competitive analysis, marketing analytics, and more.
What is product depth?
Product depth includes the number of variants or versions offered for each product in a company’s product line. These variations include different sizes, colors, flavors, styles, features, and other attributes.
Offering depth allows customers to select products that best meet their individual needs or preferences, therefore creating greater product value.
For example, a brand might offer shampoo for different purposes or in multiple scents, providing depth within the same product.
Similarly, for SaaS companies, product depth refers to offering different versions of a specific software product. This can include various tiers or pricing plans of the same software, each with different levels of features and functionalities.
For example, a common strategy is to provide multiple pricing plans, like below.
Why is product depth important?
- Different audiences and needs: Allows your company to equally cater to diverse customer preferences, needs, and wants.
- Competition: Helps differentiate your company’s offerings from competitors by providing more choices.
- Revenue: Increases potential sales by appealing to a broader range of customers with varying needs and budgets.
- Customer loyalty: Builds your brand image and loyalty by offering a solution for each customer need, therefore encouraging repeat business.
The top 3 product depth examples
Next, let’s look at some examples to better understand product depth in action. These examples are great for learning since they cover a wide array of product categories, from electronics to SaaS.
1. Electronics manufacturer
Looking at Apple, it offers its iPhone 14 series in 4 models, each available in 3 storage capacities and 6 colors. As a result, we can conclude that there are 72 different iPhone variations providing customers with a wide range of choices to suit their needs.
- Models: 4 (iPhone 14, iPhone 14 Plus, iPhone 14 Pro, iPhone 14 Pro Max)
- Storage Capacities: 3 (128GB, 256GB, 512GB)
- Colors: 6 (Black, White, Red, Blue, Purple, Yellow)
Total Variations: 4×3×6 = 72
2. Cosmetics brand
Next, there’s a cosmetics brand like Maybelline, which offers a lipstick line with 10 different shades, 3 finishes, and 2 formulations.
As a result, it offers 60 different lipstick options, allowing customers to find the perfect match for their preferences.
- Shades: 10 (Nude, Red, Pink, etc.)
- Finishes: 3 (Matte, Glossy, Satin)
- Formulations: 2 (Liquid, Bullet)
Total Variations: 10×3×2 = 60
3. SaaS company
SaaS companies may offer several tiers within the same brand of software solution.
Imagine that Salesforce has 5 pricing editions, 6 add-ons, and 3 user types. As a result, they would offer 90 variations for users to pick from to customize a package suited to their use case and JTBD.
- Editions: 5 (Starter, Professional, Enterprise, Unlimited, Einstein 1 Sales)
- Add-ons: 6 (Sales Cloud Einstein, Sales Program, Revenue Intelligence, CPQ Software, Partner Relationship Management, Sales Team Productivity)
- User types: 3 (Standard, Platform, Lightning Platform)
Total Variations: 5×6×3 = 90
How to define product depth
There are 5 crucial steps to follow to effectively define your product-depth strategy and meet diverse customer needs and market demands.
1. Identify core product and customer segments
To begin with, clearly define your main product, along with understanding the various user segments you are targeting. This also includes learning more about your customer’s needs and preferences.
By doing so, you will be better able to align your product depth offerings with the requirements of your target audience.
2. List key features and functionalities
Next, identify essential features and functionalities that can be included or enhanced to create different versions of your product.
For example, providing priority customer support is a functionality you could offer only to users on the Premium or above pricing tier.
3. Create version/plan tiers
Now start developing distinct versions or plans, e.g., Basic, Standard, Premium, and Enterprise packages.
Within each version or tier, offer varying features and services tailored to specific customer segments.
4. Set pricing and value proposition
Next, assign pricing to each version based on the value provided and the target customer segment.
Also, ensure a clear progression of value from basic to advanced versions.
5. Test, validate, and adjust
Lastly, collect feedback from customers to validate the different versions and features.
Additionally, make sure to continuously monitor and adjust the depth based on feedback, along with changing market trends.
Conclusion
Mastering product depth helps companies attract more customers by meeting their specific needs.
The steps for defining product depth include listing core products, creating versions, setting prices, and optimizing based on customer feedback.
Want to get started defining your product depth? Get a Userpilot Demo and see how you can boost customer satisfaction.
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