What Is a Product Line?
A product line is a collection of interconnected products, all promoted under a single brand name, within a company’s portfolio. This strategy enables businesses to create distinct product categories to cater to various consumer needs, ultimately improving market reach and consumer loyalty.
Companies frequently broaden their product lines, leveraging existing brand recognition to entice new and repeat purchases. The entire range of a firm’s product lines composes its product mix or product portfolio.
Key Takeaways
- A product line consists of related products marketed under the same brand name by a single company.
- Firms diversify their offerings through various product lines, differentiated by price, quality, targeted demographics, and other factors.
- Expanding existing product lines capitalizes on customer familiarity and loyalty to drive more sales.
- Non-performing product lines should usually be discontinued unless serving a strategic role, like a loss leader.
- The collective array of product lines represents a company’s product mix.
How Product Lines Work
Product lines serve as a strategic marketing tool to attract continual sales from consumers loyal to a brand. When consumers positively associate with a brand, they are likely to purchase its new offerings based on past experiences with the brand.
For instance, a cosmetic company might introduce a lower-priced product line that’s an expansion of its high-priced offerings, targeting a wider audience. Product lines can vary in many aspects such as quality, price, and target markets, providing insights on trends and consumer behavior.
The Evolution of Product Lines
Companies can attract new customers and maximize market reach by constantly adding new items to their product lines, known as product-line extensions. As illustrated in the automotive sector, manufacturers produce various product lines ranging from economy to luxury and eco-friendly vehicles to cater to different consumer segments.
Product Line vs. Product Mix
A product line refers to specific goods or services branded and sold by a company. For example, a food company might have a product line of various flavor potato chips. Introducing pretzels would create a new product line, whereas additional chip flavors expand the existing one.
Analyzing the product mix helps to identify which market segments exhibit certain trends. Successful product lines can inspire innovative additions, while underperforming lines may be restructured or discontinued.
Special Considerations
Product lines facilitate targeting various regions and demographics, sometimes even globally. For example, fast-food chains adapt their product lines to local tastes. Certain product lines serve as loss leaders to attract new customers, driving future revenue through subsequent profitable sales.
Examples of Product Lines
- Microsoft Corporation offers product lines such as Windows, MS Office, and Xbox.
- Nike Inc. features product lines for various sports including track and field, basketball, and soccer, offering footwear, clothing, and equipment.
- PepsiCo owns diverse product lines like Frito Lay, Gatorade, Quaker Oats, and Tropicana.
- Starbucks Corporation product offerings include coffee, ice cream, and drinkware.
Some firms focus on sustaining a single product line to become market leaders in a niche, such as Michelin with tires and Gorilla with adhesives.
Frequently Asked Questions
What Are the Main Types of Product Lines?
The main types of product lines include:
- New to World: Innovations or new products introduced post R&D investment, carrying high-risk, high-reward potential.
- New Additions: New product lines introduced to compete in a market, while not necessarily new to consumers.
- Product Revision: Upgrades or replacements of existing products, fulfilling latest consumer expectations (e.g., various iPhone models).
- Reposition: Marketing existing products to new audiences or different use-cases.
What Is Product Line Filling?
Filling involves adding more items to an existing product line to bridge gaps and accommodate a broader customer base, such as including larger sizes in a clothing line.
What Is Product Line Pricing?
Pricing involves offering versions of a product or service at various price points, appealing to different budgets and consumer spending preferences, like automotive trims.
How Do You Create a Product Line?
Creating a product line involves R&D, market testing, and advertising tailored to the business’s expertise. Unsuccessful lines should be discontinued in favor of more viable opportunities.
Related Terms: Product Portfolio, Product Family, Product Line Extension, Brand Management.
References
- PepsiCo. “Product Information”.
