Product hierarchy and line

Product hierarchy and line

1. PRODUCT HIERARCHY

2. Producthierarchyistheclassificationofa
productintoitsessentialcomponents.Itisinevitable
thataproductisrelatedorconnectedtoanother.
Thehierarchyoftheproductsstretchesfrombasic
fundamentalneedstospecificitemsthatsatiatethe
particularneeds.

3. 1-PRODUCT NEED
Theproductneedistheprimaryreasonforthe
existenceofaproduct.Forexample,motorvehiclesexist
becausepeoplehavetoandwanttotravel.Thisisthecore
productneed,forexample,Toyota,Hyundai,Volkswagen..

4. 2-PRODUCT FAMILY
Inproductfamily,thecoreneedsatisfiedbya
productisthefocus.Thismeansthattheattentionshould
notbeontheindividualmarketbutrathertheentire
businessmarket.Forexample,iftravellingisthecore
need,thenitcanbesatisfiedbyplanes,trainsorships.In
thiscase,theProductfamilyispassengertravelandthe
productfamilyofVolkswagenisCars.

5. 3) PRODUCT CLASS
Productclassandproductfamilyhavealotin
commonandcanbeusedinterchangeably.Volkswagen,for
example,makesbusesandtwo-seaterluxuryautomobiles,
aswellasothermulti-passengertransportationvehicles.As
aresult,productclassisusedtocategorisevariousgoods
withinthefirm(ratherthanoutsidethecompany,asin
productfamily)

6. 4-PRODUCT LINE
Theproductlinereferstothewholerangeofitemswithin
asingleproductcategory.So,ifwe'retalkingabout
Volkswagenpassengervehicles,we'vegottheVolkswagenPolo
andtheVolkswagenVento,aswellasotherVolkswagenmodels.
Audi,ontheotherhand,isaVolkswagenbrandthatis
separatedintonumerousmodellines,includingtheQseries.So,
theQseriesisonlyoneofAudi'sproductlines,andtherewillbe
others.

7. 5-PRODUCT TYPE
InsidetheProductlinetherearedifferentitemtypes.For
instance–IfwediscussHyundai'sI20,then,atthatpointthereis
I20Asta,I20MagnajustasI20Sportz.SoI20turnsintoanitem
typeanddifferentmodelsbecomeitemunits(clarified
underneath).

8. 6-PRODUCT UNIT
Theproductunit,oftenknownastheSKU,isthelastelement
intheProducthierarchy.Continuingwiththeprevious
example,theHyundaiI20AstaandtheHyundaiI20Magna
arebothProductunits.Ifaproductisself-containedandnot
dependentonotherproducts,itisreferredtoasan
individualproductunit.

9. THANKS