What is a specific model brand or size of a product within a product line?
In a market, we rarely see companies market individual products. Instead, they group similar products and market them under one big umbrella. This is known as a product line. Using product lines can help the company reduce customer acquisition costs, build brand loyalty, and improve overall sales. In this explanation, you'll delve deeper into the concept of product lines and their benefits to a business. Show
Product Line DefinitionA product line is a group of related products marketed under the same brand. These products are often sold to the same group of customers within a given price range. A company can have multiple product lines sold under different brand names. The total of all product lines within a company is called the product mix. A product line is a group of related products targeting the same customers. To understand a company's product line, we must first consider the types of products it has. For example, Coca-Cola has three main product types: sodas, Minute Maid, and mineral water. The soft drinks line has five products - Coca-Cola, Diet Coke, Coke Zero, Fanta, and Sprite. The Minute Maid product line has three products (Guava, Mango, and Mixed Fruit), and mineral water has 1 product.1 In this example, the number of Coca-Cola product lines is 3. Companies develop product lines to maximize the profit of popular items. For example, Coca-Cola is a popular soft drink many people worldwide enjoy. To leverage the success of the original Coke, the company introduced several varieties to this product line, such as Coke Zero, Diet Coke, Vanilla Coke, etc. Product Line StrategiesProduct line strategies often involve adding or removing items from a certain product line. This allows the company to attract more buyers or enter a new market. There are three main product line strategies. Product Line LengthProduct line length refers to all products in the same product line. Long product line length can expand the market segment, while shorter product length can increase the company's profit. But companies can also increase profit by lengthening the product line. There are two strategies to decrease or increase the product line: Line ExpansionLine expansion means adding new products to the product line. It includes two strategies: product line filling and product line stretching.
Line contractionThe opposite of line expansion is line contraction. When targeting a new market, companies may have to abandon certain products that do not meet the market demand. This is called line contraction. Line contraction frees up space for companies to produce new products that better match customer needs. It also increases the firm's competitiveness and control of the market. Product line modificationTo keep up with competition, companies must constantly update and renew their products. This process is known as product line modification. Product line modification may require a lot of researching and analyzing market needs. Colgate is a company that keeps updating its toothpaste formula to improve customer experience. For example, Colgate Renewal is the latest product version that helps protect your teeth whilst simultaneously being vegan, sugar-free, and gluten-free.2 Product Line FeaturingThis strategy refers to adding products of different price ranges to the same product line to attract different groups of customers. Types of Product LineAlong with product line strategies, there are five types of product lines that companies can add to their portfolio:
Product Line PricingProduct line pricing means offering different versions of products or services at different price points depending on customer preferences and perceptions. It comes with two main benefits. First, differential prices allow companies to extend their reach. For example, a bakery has a low-priced drink or dessert to attract more people to the store while selling higher-value products. Second, companies can target customers of different levels, including high-income, middle-income, and low-income. There are four main product line pricing strategies:
Product Line ExampleThere are many product line examples in real life. Let's look at the Body Shop, a company specializing in beauty and skincare products. The Body Shop has a vast product mix with seven main product lines:
Each of these product lines is made up of different products. For example:
Each product category is made up of different varieties. For example, in the 'bath and body' line, the body moisturizer consists of body lotion and body butter with different scents such as strawberry, cocoa, olive, British rose, etc.5 Here are more examples of major brands with multiple product lines:
Product Line vs Product MixBoth product line and product mix comprise products in the company's portfolio. However, the product mix is much broader than the product line. It is the total of all product lines within a portfolio. The product mix of Pepsi is made up of different product lines: the energy drink product line with 7UP, Pepsi, Marinda, Mountain Dew, and the food product line with Quaker Oat, for instance. Product LineProduct MixDefinitionA group of closely related products sold under a brand.Refers to all products sold by the company.Factors influencingPrice range, target audience, product functions.Company's age, financial position, reputation. Table 1. Product Line vs Product Mix. Source: Indeed.6 Companies with a vast product mix can cross-sell between product lines. Cross-selling means selling related products to customers purchasing another product. Product Dimensions The product mix is the product portfolio of a company. It consists of 4 dimensions - length, width, depth, and consistency. Here's a breakdown of each dimension:
Product Line - Key takeaways
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