Product Line
Product Line: A product line is a collection of similar items offered by the same firm under a single brand name. Companies offer many product lines under distinct brand names in order to differentiate them from one another for better customer usage.
Consumers are more inclined to acquire items from brands with which they are already acquainted, thus companies often extend their offers by adding to current product lines.
Product lines enable businesses to reach out to certain areas and socioeconomic categories, sometimes even globally. Companies establish product lines under their best-selling brands in certain circumstances, such as the cosmetics business, to grab revenue from customers of diverse ethnic or age groups. Multinational firms, such as restaurants, often introduce product lines tailored to the markets in which they operate, as fast food restaurants in Asia do.
Product Line
What Are Product Lines and How Do They Work?
Companies build product lines as a marketing technique to collect revenue from customers who already purchase the brand. Consumers are more likely to react favourably to brands they already know and love, and will be eager to purchase new items based on their previous positive experiences with the brand.
For example, a cosmetics firm that currently sells a high-priced makeup line (which may include foundation, concealer, powder, blush, eyeliner, eye shadow, mascara, and lipstick) under one of its well-known names could introduce a lower-priced line under the same brand name. Quality, pricing, and target market may all differ amongst product lines. Product lines are used by businesses to assess trends and select which markets to pursue.
Expansion of the Product Line
Product line extension occurs when a firm introduces a new product that differs significantly from the company’s present product line. It gives clients more options under a single brand. The following are some of the benefits of expanding a product line:
Risk
When a new variety is added to an existing product line, the risk of developing a new product is reduced. Consumers are already acquainted with the current product line, therefore if a new product provides the same quality and meets the customers’ demands as the old one, it reduces risk.
Customer Satisfaction
Customers will pick the firm’s product above its rivals when a company expands its product range by offering a variety of products, which will assist to preserve consumer loyalty.
Market development
It is self-evident that expanding the product range would broaden the client base and hence boost market share. To appeal to various client groups, the corporation may also provide higher and lower priced versions that fulfil customer expectations.
Branding
Customers are more inclined to purchase a product from a well-known and well-known brand. However, when a corporation sells low-cost line items, branding becomes more challenging since the parent brand may suffer as a result of the lower quality. It is preferable to sell a low-cost product with a different brand name in this situation.
Versions of the product
Introducing many versions of a same product is a low-risk method, since each edition may contain new or decreased functionality compared to the basic version. This might assist in getting more clients.
People are frequently drawn to the goods of companies they have previously used or can readily depend on, therefore adding to the current range of items is regarded the ideal method for expanding the company.
Product Lines Have Changed Over Time
To promote brands to new consumers, companies add new goods to their product lines, which is referred to as a product-line extension. Consumers who aren’t interested in a company’s athletic goods items, for example, may be interested in its energy bar or sports beverage line. Extending product ranges helps businesses to reach a wider audience.
The car business is a good example of how firms employ product lines. Automobile manufacturers are well-known for producing a variety of car product lines in order to appeal to as many people as possible.
As a result, under their top brands, they create lines of economy automobiles, environmentally friendly vehicles, and luxury vehicles. Some are targeted at families, while others are targeted at individuals. Some are targeted at the young, while others are targeted at the elderly.
Product Lines Examples
Microsoft Corporation (MSFT) is a well-known brand that offers a number of well-known product lines such as Windows, Office, Xbox, and SharePoint. Nike Inc. (NKE) produces product lines for track and field, basketball, and soccer, among other sports. Footwear, apparel, and equipment are among the company’s product ranges. Frito Lay, Gatorade, Quaker Oats, Tropicana, and Garden of Eatin’ are just a few of the brands owned by PepsiCo (PEP). Starbucks Corporation’s (SBUX) product lines include coffee, ice cream, and drinkware.
A product line is a collection of similar items offered by the same firm under a single brand name.
Companies offer many product lines under distinct brand names, typically distinguishing them based on price, quality, geography, or demographic focus.
Consumers are more inclined to purchase items from brands they recognise, thus companies often extend their offers by adding to current product lines.
A product line is a marketing strategy that allows a firm to grow its business by focusing on customers who are currently purchasing or are likely to purchase the brand.