contestada

Jane Hernandez owns and operates a women’s clothing shop. Her product mix
consists of casual wear, semiformal and formal wear, shoes, accessories, jeans, jewelry, and
medical uniforms. Business has always been good, but in the past year, Jane has noticed a drastic
drop in sales, particularly in jeans and uniforms.
Jane has asked for your help. After some investigation, you find that a store specializing in medical
uniforms opened at the mall a year ago. In addition, nine out of 10 stores in the area offer women’s
jeans. Which product-mix strategy does your group suggest?

Respuesta :

Answer: Our group will suggest strategy of Contraction of product mix

Explanation:

Our group will suggest a contraction of the product mix strategy. As per this strategy, we can eliminate one or more product lines or product items from the product mix. This will contract our product mix. The products like medical uniforms and women jeans which are having no sale and are not profitable now can be eliminated.

A company can target the customer for those products which are still in the product mix.