What Is Product Mix?

The product mix of a business includes product lines and individual products. A product line is a set of products in the product mix that are closely interrelated either because they serve in a similar way, sold to the similar client groups or have same price range. A product is a unique component in the product line that is different in size, cost, look, or some other attribute. Product choices at these levels are normally of 2 sorts: Those that have variety and range of the product line and those that are modified in the product mix occur over time.

Product Mix is the total number of product choices a company offers their customer. If you make muffins, and you offer Blueberry and Cranberry, your product mix has 2 choices.  The product mix grows as the number of features on the product grows.  A true evaluation of the mix can ONLY be done with a feature/option level analysis.  That is because customers buy features and options.  The strength of the mix is based on how well the feature choices are capturing sales and market demand.  

It is the entire range or products of a company for sale Product mix need not consist of related products.  For example, the product mix of HMT includes a diverse range of products such as watches, machine tools, tractors, printing machinery and electric lamp.