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Essay / Product mix: Toyota ZARA - 780
Toyota1. Product line (or product assortment) is a collection of all products and items offered for sale by a company. A product line consists of several product lines and can be characterized by parameters such as width (number of product lines in a product line), length (total number of items in a product line), depth (number of variants in the product range). and consistency (proximity of product lines in terms of production, distribution and use) (Kotler & Keller, 2012). Toyota offers a full range of cars for sale, from family and sports cars to minivans and trucks. Toyota's product line consists of sedans, coupes, hybrids, vans, SUVs and trucks. The breadth of Toyota's product line is quite large. The length of the product line includes a number of different models within a product line: Prius, Avalon, Corolla, Camry, Lexus, RAV4, Land Cruiser, Tacoma, Tundra, Scion and others. An example of the depth of the Toyota product line could be the possible variants of the Lexus model (ES300, ES 350, IS series).2. Kotler and Keller define six product line pricing methods: product line pricing, optional feature pricing, captive product pricing, two-part pricing, by-product pricing, and product bundling pricing (Kotler and Keller , 2012). An optional pricing method involves offering optional features, products and services in addition to the main product, with some attributes included in the standard price and others charged separately. Toyota may implement this type of pricing in its manufacturing process. For example, the company could set a standard price for its "mono-spec" Scion and offer several customization items at dealerships for a separate price. Toyota may also use the product line pricing method, which suggests charging different prices for different models...... middle of paper ...... bution. All merchandise is distributed from Spain in just 24 hours in Europe and in 48 hours in the United States and Asia. All stores receive bi-weekly shipping. However, the idea of the model is to provide only the minimum volumes for each item type or category. This way, very little storage is required in stores. Such an approach encourages consumers to come to stores more often, leading to up to 85 percent of products being sold at full price. Facilitating features are those that make the process easier for both the manufacturer and the consumers. Zara prides itself on owning 90% of its stores physically, located primarily in popular, high-traffic locations, which is an effective advertising technique. Bibliography: Kotler, P. and Keller, K. (2012). A Framework for Marketing Management (Fifth ed.). Harlow: Pearson Education Limited.