Product Line:
A product line refers to a group of related products that are offered by a company under a single brand or category.
- These products usually function in a similar way, are marketed to the same customer group, or fall within the same price range.
Example: A shampoo company might offer a product line that includes anti-dandruff shampoo, moisturizing shampoo, and color-protect shampoo.
Product Line Strategies:
1.) Line Stretching:
- Involves expanding the product line beyond its current range.
Types:
- Upward Stretching – Adding higher-end products (better quality or premium priced).
- E.g., A budget smartphone brand introduces a flagship model.
- Downward Stretching – Adding lower-end products to attract budget-conscious customers.
- E.g., A luxury car brand offers an affordable compact version.
- Two-way Stretching – Adding both lower and higher-end products.
2.) Line Filling:
- Adding more items within the existing product range (same price and quality level) to fill market gaps.
- Purpose is to target niche segments, block competitors, or improve shelf presence.
Product Mix:
The product mix (or product assortment) is the complete set of products and services that a company offers to its customers.
- Example: Nestlé’s product mix includes coffee, cereals, chocolates, bottled water, dairy products, and more.
Dimensions of Product Mix (Product Mix Strategies):
1.) Width:
- Refers to the number of different product lines a company offers.
- E.g., A company offering personal care, food, and electronics has a wide product mix.
2.) Length:
- The total number of products in all the lines.
- If a company has 3 product lines with 5 products each, the length is 15.
3.) Depth:
- The number of variations offered for each product.
- E.g., A toothpaste product may come in 3 sizes, 4 flavors – that’s depth.
4.) Consistency:
- Refers to how closely related the product lines are in terms of use, production, and distribution.
- E.g., A company selling only food items has high consistency; a firm selling clothes, electronics, and food has low consistency.
