The company’s product selection expands as it increases. Some of the new goods are upgrades, remakes, or expansions of old ones, while others fall into a completely new category. These many categories are frequently offered as separate product line brands.
A product line refers to a collection of similar items sold under a single brand. Companies that seek to connect customers with a wide selection of items to satisfy their requirements require a product line. Consumers can venture out and try new goods in the line to get more familiar with the brand. We’ll go through how product lines function in this post and some instances of how a company might profit from having its product line.
Coca-Cola, for example, has about 3,500 product category brands, such as Minute Maid, Costa Coffee, and Smartwater. Despite their differences, these brands are all managed and operated by the same parent brand Coca-Cola. The parent brand’s product line is the many product categories (or brands).
What Is A Product Line?
A product line is a group of similar items promoted and sold by a single company under a single brand. The following are some essential points to consider to grasp this definition of product line:
Product lines are collections of linked items depending on a product of factors such as target demographic, value proposition, the technology utilized, customer choice, etc.
Sold under a specific brand:
These items are grouped under a single sub-brand or sold directly under the parent brand’s name, and they all have a similar brand personality.
Here’s an example to help you understand the definition better:
Nike is a global business that manufactures and distributes sports shoes, products, and equipment. These three categories were then subdivided into sub-categories based on sports and purposes. For example, a bakery may provide a variety of items under multiple brand names, some aimed at budget-conscious customers and others at those who prioritize quality above price, in addition to its usual product-lines.
Product Line Examples
The following are the more notable examples:
- Amul has a myriad of product lines that are linked yet distinct from one another. It sells milk, flavored milk, chocolate, butter, curd, yogurt, ghee, and other products.
- Frito Lay, Quaker Oats, Gatorade, and Tropicana are just a few PepsiCo’s many sub-brands that appeal to diverse product sectors.
- Microsoft Corporation has a variety of goods for various markets. It sells several well-known product lines, including Microsoft Office, Windows, and Xbox.
Product Line Expansion
The phrase “product line extension” describes a circumstance in which a company releases a new product distinct from the firm’s existing product-line. This technique aims to increase the number of alternatives accessible to customers under a single brand.
The following are the primary advantages of the extension:
- It lowers the risk of bringing new items to the market. Existing clients who are familiar with the previous set of items become the new product’s consumers.
- It aids in expanding the range of options available to clients, resulting in increased market share. The options might be in the form of higher and lower-priced versions that appeal to various client needs and segments.
Advantages Of Product line
- It can help you expand your business by utilizing your existing and loyal consumer base.
- Long-standing connections with retailers and suppliers aid marketability.
- It has a cheap cost of manufacture due to current knowledge, partly due to economies of scale.
- It assists in meeting a wide range of customer demands.
Disadvantages Of Product line
- Any error in product-line extension may lead to a loss of brand memory and trust. The new variety might have negative consequences for the original product, which may be disastrous for the entire brand.
- There’s a danger the product-line extension will fail if it doesn’t give the company a competitive advantage over its competitors in the category.
The Product Line And Product Mix
Even though they are sometimes mistaken, the product mix and product line are not the same. A product line is a company’s one-of-a-kind product category or brand. It may be thought of as a product category encompassing all of the related items that come under that heading.
On the other hand, product mix refers to a company’s overall number of product lines available to customers. The product-line is a subset of the product mix in essential words. Consider the case of a dairy company that sells –
- Milk
- Cheese
- Butter
- Dietary Supplements
Assume that this company sells three types of milk, fifteen cheese products, two butter products, and ten diet goods. The product lines are made up of various product groupings, and the company’s product mix is made up of an array of these product lines.
Examples of Product Lines
Almost every company that sells more than it offers has examples of product lines. Here are a few famous examples:
Nestle’s Product-Line
Nestle is the world’s largest food company, with over 8500 brands and 30,000 items. Nestle’s key product-lines, according to the company’s website, include:
- Felix
- Merrick
- Nido
- Haagen Dazs
- Maggi
- Kit Kat
- Pure Life
- Nespresso
- Nescafe
- Milo
- Illuma
- NAN
- Garden of Life
- Purina ONE
Coca-Cola’s Product-Line
Coca-Cola has approximately 500 brands under its brand, and practically all of them are part of its product-line. Coca-prominent Cola’s product lines include:
- Coca-Cola
- Sprite
- Fanta
- Dasani
- Smartwater
- Minute Maid
- Georgia Coffee
- Costa Coffee
- Fuze Tea
- Fresca
How Do Product Lines Function?
Product lines are created as a marketing tactic to maximize the brand’s client base. The approach is founded on the idea that people are more likely to respond positively to personal brands and are more eager to acquire new items based on previous positive encounters.
Many product lines are added under the same brand name to capitalize on the parent brand’s reputation. Product-line extensions, in which new flavors, shapes, colors, ingredients, and other goods are introduced to the identical product category under the same brand name, are also unique.
Product Line Decisions
Choices on adding or removing products from current product-lines are referred to as product-line decisions. These choices are further subdivided into —
Line Filling Decisions:
It entails introducing a new product to an existing product-line to compete and expand the shelf life and client base.
Line Pruning Decisions:
This entails eliminating a loss-making product from a current product-line to avoid losses and boost average profitability.
Conclusion
As can be seen, marketing specialists believe the product-line gives the company a competitive advantage over its competitors. As a result, businesses continue to introduce new items or expand current ones to strengthen their product mix and gain a competitive edge.
However, it is equally crucial to keep each line in good working order; otherwise, the company’s reputation may suffer.
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