A product line is a group of related products offered by a company that are similar either in use, production, or marketing requirements. The depth of a product line refers to the number of distinct products within that line. For instance, a company’s product line might include different sizes, models, colors, or features of a similar product.
Types of Product Lines
- Product-Based Lines: Products are grouped based on their similarities in function or category.
- Price-Based Lines: Products vary by price points catering to different market segments.
- Market-Based Lines: Products are designed for different target markets or user demographics.
Special Considerations
- Consistent Branding: All products within a line should follow uniform branding and marketing strategies to reinforce the brand identity.
- Balanced Portfolio: A well-managed product line balances the number of products to avoid cannibalization yet ensures customer choice.
- Lifecycle Management: Continuous monitoring of each product’s lifecycle, including introduction, growth, maturity, and decline stages.
Examples
- Automobile Industry: A manufacturer like Toyota may have a product line consisting of various models like Corolla, Camry, and Prius.
- Technology: Apple’s iPhone product line includes different variations like the iPhone 12, iPhone 13, and iPhone SE.
Historical Context
The concept of the product line evolved with the industrial revolution and mass production techniques, significantly influencing the strategies of companies worldwide. Pioneers in car manufacturing, like Ford with its Model T, showcased early adaptations of product lines.
Applicability in Business Strategy
- Market Penetration: Expanding product lines to capture more market share.
- Product Development: Innovating within an existing product line to maintain competitiveness.
- Diversification: Introducing new product lines related to the existing brand for business growth.
Comparisons
- Product Mix: Refers to the total assortment of products a company offers, which can include multiple product lines.
- Product Line Depth vs. Breadth: Depth refers to the range of variants within a line, while breadth indicates the number of different product lines offered by the company.
Related Terms
- Product Portfolio: The complete array of products a company offers.
- SKU (Stock Keeping Unit): A specific product item within a product line distinguishable by attributes such as color, size, etc.
- Cannibalization: The reduction in sales volume of one product due to the introduction of a new product by the same producer.
FAQs
What is the difference between a product line and a product mix?
Why is product line depth important?
How do companies decide on product line expansions?
References
- Kotler, P., & Keller, K. L. (2016). Marketing Management. Pearson Education.
- Cooper, R. G. (2001). Winning at New Products: Accelerating the Process from Idea to Launch. Basic Books.
Summary
In summary, a product line is a pivotal element in a company’s product strategy, impacting how products are marketed, perceived, and managed. Understanding product lines, along with their depth and strategic management, can significantly influence a company’s success in satisfying customer needs and achieving market growth.
