Product line is something which can help businesses avoid risks, boost customer satisfaction and sales at the same time. This practice focuses on providing a group of related products by a company under the same brand or category.
Complete focus is kept on different variants of a single product category. In this article, we will learn more about the product line and its importance in detail.
What is the Product Line?
Product line is the list of all products with similar prices, contexts, customers and goals. All the products listed in the Product line are sold under one brand name.. Businesses often have to modify their offers when they add existing product lines as consumers trust the brands they are connected for comparatively longer time.
Product lines must be abandoned if they are of no use. In this blog, we will learn about the importance of product lines, types and their limitations.
Read More: What is Product Market Fit? | Definition and Examples
Working of Product Line
Product line is an important element in the marketing strategy of an organisation. It goes through a series of steps to complete the running process
1. Definition & Structure
It is important to find the target customers along with the right set of planning and structure to begin working on the product development life cycle. The complete structuring of marketing of products in the product line must be arranged properly.
2. Finding the Target Group
It is important to find the specific segment or category of a product line to satisfy the specific needs of the audience. All efforts must be taken to understand the specific needs of the target group so that the business can deliver products as per the requirement.
3. Branding Product Line
Products lying in the same line have a common brand name and identity which builds trust and loyalty with the product. Also, it makes it simpler for customers to easily relate new products with the established ones.
Read More: Product Specs | Definition and Overview
4. Product Variations
Multiple variations in products within the same line can be included such as size, flavor, packaging, features, and more. Different variations can be implemented in the product to address different tastes of customers.
For example, a packet of chips have different flavors and even health flavored options. Customers can choose as per their reference.
5. Cross Promotion
When you have a well structured product line then cross promotion of products becomes a better option where organisations can easily promote the new variations alongside the others.
This is completely focused on encouraging customers to try new products along with the existing ones. Make sure the product is well defined and cleared in the mind of customers. This helps in effective cross promotion of the product.
6. Flexibility in Products
The product line offers flexibility to organisations to adapt to changing conditions such as market trends and consumer preferences. It provides a better way of responding to different situations.
Feedbacks are helpful for companies to decide whether to continue the underperforming products. The product line must be flexible to quickly adjust to market trends and consumer preferences.
Read More: Product Mix Strategy | Definition and Overview
7. Performance Evaluation
Companies must arrange a schedule to record the overall performance of the product line by assessing market share, profitability, sales, and more. This helps in making strong marketing decisions regarding all major tasks.
8. Expansion with Product
Products which are successful can act as a base for expansion of company presence in the market. A complete new product line can be implemented based on the success of the product.
Types of Product Line In Market
Check some of the major classification of product lines in the market, given below.
1. Length-Based Product Line
This type of product line refers to the total number of products included in a single category. For example, a shampoo brand offering different types of shampoos based on specific conditions and requirements of the users including dry hair, oily hair, dandruff, color protection, etc. The higher the product line length more will be the options available with the users.
2. Line Stretching
This type of product line offers adding products that are either higher or lower in price and quality when compared with the current product in the line. There are three types of line stretching, such as upward stretching, downward stretching, and two way stretching.
- Upward Stretching: This offers more premium or expensive versions.
- Downward Stretching: This offers more affordable or budget options.
- Two-Way Stretching: This is used for both i,e. adding both high-end and low-end versions to the line.
3. Line Filling
This type of product line takes place when a company adds more items within the existing range of items to fill any gaps and keep the customers inclined with the products offered by the company. For example, suppose a company is having two different models of phone priced at ₹10,000 and ₹15,000. Owners can also include a phone at a price point of 12,000 to 13,000. This will keep them engaged and block competitors.
A. Horizontal Product Line
This type of product line includes products which are similar in quality and are inside the same price segments but are different in size, colors, features, flavors, and more.
For example, you are at a juice shop and you have multiple options or say flavor to choose from at the same price point. This is horizontal product line where customers can earn without any change in price
B. Vertical Product Line
In this type company offers the same product type at different prices and quality levels. Suppose you are purchasing a course, then you will have options like beginner level courses and professional courses i,e. , basic to premium version
Read More: Problem Solving Products: How to Find the Best Ones to Sell
Benefits of Product Line For Businesses
Some major benefits of the product line for businesses are given below.
1. Increase Sales and Revenue
When we have multiple different products then businesses can target different customers based on their needs and preferences. There will be sufficient variants for everyone which will surely boost customer satisfaction and sales.
For example, someone may prefer a simple basic version, while some people might ask for a premium model. This range of variety leads to more purchases, which increases overall revenue. It also encourages customers to try more than one product from the same brand.
2. Attracts Different Customer Segments
The product line can provide options for people with different budgets or taste to get whatever they want. This means that brand can easily reach beginners, students, professionals, or premium buyers all at a single time.
For example, when you go to buy a car there is a base model at lower price and top models with higher price having various functionality. There are also some middle variants. These options provide enough materials for customers to choose from.
3. Builds Brand Loyalty
Product Line ensures customer satisfaction first and when customers are happy and satisfied then they are more likely to tell about the product to their colleagues, friends or family members or even someone in need. This helps in building a circle of trust and loyalty.
Read More: Product Launch Strategy: A Comprehensive Guide for Success
4. Improves Market Presence
When an organisation lists multiple products within the same line then the visibility and usage of the same brand increases online and in offline stores too. When there are more search results it can make the brand more noticeable to customers leading to higher sales and presence in the market.
5. Reduces Business Risk
When there are multiple products in the box if one product fails or underperforms others can still perform well and generate impressive income thus reducing risks. This helps balance the business risks and performance of the product. It is more safe than relying on a single product as the success of a line does not depend on a single item.
6. Encourages Innovation
With a proper product line there are always the latest and most competitive products listed to solve users’ current problems. Also, businesses often create new features, designs, or variations. This trigger continuous improvement and innovation helping the brand stay relevant and visible to customers.
7. Simplifies Marketing and Branding
When businesses adopt the practice of promoting a group of products under one brand name then it makes the marketing easier and cost effective. This can increase the marketing campaign efficiency, also save money and resources.
Read More: Product Vision: How To Define Yours In 4 Steps?
Disadvantages of Product Line In Business
Check some of the major benefits of the product line in business below.
- When there are many new products within the same product line then it might lead to an effect i,e. Cannibalization which might affect the sales of existing products.
- It also adds to the overhead or complexity where managing multiple products under the same line becomes a tedious task.
- There might also be situations leading to market saturation due to many products under the same category or line.
- There is a greater risk of brand dilution due to too many products in the same category. It might also confuse consumers in making decisions.
Also Read:
- What is Product Pricing? Objectives, Types, and Factors
- Technical Product Manager | Definition and Overview
- What is Product Marketing? The Ultimate Guide
- What is a Product Feature? Plus tips, templates, and examples
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Product Line FAQs
Q1. What is the product line?
Ans: Product line is the list of all products with similar prices, contexts, customers and goals. All the products listed in the Product line are sold under one brand name.
Q2. What is the benefit of a Product line?
Ans: Product line is important as it allows businesses to offer a variety of related products that provide different customer needs, preferences and budgets. This helps target sales boost and market reach.
Q3. What are the types of product line?
Ans: Length based product line, line stretching, line filling are three most important types of product line.
Q4. What is the scope of the product line?
Ans: Product line is used to target a specific group of markets within a particular category. It is narrower in scope and more optimised.
