Definition Of Product Line

What Is A Product Line?

A product line is a collection of related goods that are manufactured by a single firm and sold under a single brand name. The items are comparable and aim to compete in the same segment of the market. It's possible that their functions or channel distributions are identical or comparable to one another. It's possible that their outward appearances, pricing, levels of quality, and even types of clients are identical. We refer to this kind of action as product lining.

The term "Product Line" refers to the assortment of similar items that are sold under the umbrella of a single brand name. This brand name may serve as the company's primary identifier. In most cases, businesses broaden their product offerings by introducing brand-new versions of the goods they currently sell. This is done with the hope that existing customers would continue to purchase more items from the same firms whose products they already buy. 

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How Does The Product Line Work?

Companies often use the product line as one of the greatest marketing tactics in order to extend their market reach by capturing the sales of consumers who are already devoted purchasers of the brand. This strategy is regarded to be one of the best in the industry. This marketing strategy is based on the idea that consumers have a positive reaction to brands that they are already familiar with, and as a result, they are more likely to purchase new products based on their previous positive experience with the brand or something that is related to brand recall. This is the operating principle behind the strategy.

For example, a company that specialises in baking may sell a variety of goods under various brand names. Some of these goods may be aimed at customers who are price-conscious, while others may be marketed toward customers who place a higher priority on quality. These goods may exist alongside the company's standard product lines. We are also providing contribution margin analysis by our top experts.

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What Are Product Line Types?

According to the requirements for bringing a product line to market, there are four distinct classes of product lines that may be used. These are the following:

New to world

A fresh new product or technology that has just been released into the world, often after significant expenditure in research and development. These come with a great potential for loss but also a tremendous potential for gain if they are successful.

New additions

These are new product lines that a corporation has added to its manufacturing, but they are not necessarily new to the market as a whole. They are referred to as "new additions." These are problems that develop when new companies join a market.

Product revision

The third type is product revision, which includes replacements for or improvements to already-existing items. The iPhone X is a whole product, and it cannot be compared to the iPhone 4S in any way.

Reposition

Repositioning is the process of taking an existing product and beginning marketing efforts directed at a different demographic for an entirely new use-case scenario.

What Are The Examples of Product Lines?

The following is a discussion of some of the more prominent examples:

• The Microsoft Corporation provides a selection of goods to cater to a variety of markets. Microsoft Office, Windows, and Xbox are just a few of the well-known product lines that are offered for sale by this company.
• Amul provides a wide variety of product lines that are distinct from one another despite their close relationship to one another. Milk, flavoured milk, chocolate, butter, curd, yoghurt, ghee, and other dairy products are among the company's offerings.
• Frito Lay, Quaker Oats, Gatorade, and Tropicana are just few of the many additional sub-brands that fall under the PepsiCo umbrella. PepsiCo is a worldwide brand that encompasses a wide variety of product categories.

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What Are The Advantages Of Product Line?

• Established and devoted customer base: When a corporation offers another iteration of an established brand, they are capitalising on the consumers' pre-existing attachment to the brand as well as the favorability with which it is already regarded. This indicates that there is a significantly increased likelihood of rapid sales and profits, as well as an increase in both total customer equity and customer lifetime value.
• Experience that is already present: If a firm focuses its efforts on the range of goods that it currently manufactures and sells, it can rest comfortable that it already has the necessary expertise inside the business to be successful in the implementation of a product line expansion.
• Relationships with retailers: As long as the company stays within the same product category and only expands the product range, it is probable that the company already has established wholesaler and retailer distribution channels in place. This indicates that the new product should be readily available in a pretty large quantity within a reasonable amount of time, and this should be accomplished without the need for extensive trade marketing.
• Low production costs: If a company already possesses the necessary knowledge and processes to manufacture this type of product, then it is highly likely that their production costs will be on the lower end of the cost spectrum. This is because the new product will be manufactured utilising the company's already established systems.
• Barriers to competition: If a company sells a wide variety of items that fall under the same general category, it makes it harder for rival companies to identify clear voids in the market.
• Since the firm has already developed and sold products of this kind in the past, it is extremely probable that the new product creation process and marketing launch will be fairly straightforward for the company to put into action.