A product line refers to a group of products under a specific brand that has similar functions and target markets. So it is an essential aspect of a company’s product strategy and helps them expand its market reach and revenue.
{tocify} {$title=Table of Contents}
Definition of a Product Line
According to Philip Kotler, “Product line is a group of products that are closely related because they function in a similar way, are sold to same customer groups, are marketed through the same type of outlets, or fall within given price range.”
So on the other hand, a product line extension refers to the situation where a company introduces a new product that is somewhat different from the company’s existing range of products, aiming to expand the number of options available to a customer under a single brand. Product one includes in Product Mix.
Importance of a Product Line for Companies
A well-defined product line is crucial for companies to increase their market reach and revenue. So here are some of the major benefits of having a product line for companies:
Diversifying Revenue Streams
Having a diverse range of products in a product line helps companies to diversify their revenue streams. This, in turn, helps them migrate the risk of relying on a single product or market. By having multiple products in their product line, companies can cater to a wider range of customers and increase their chances of generating more revenue.
Enhancing Brand Image
A product line helps companies to enhance their brand image and reputation in the market. So by having a range of products that cater to different customer needs and preferences, companies can showcase their expertise and establish themselves as a trustworthy brand in the market. This, in turn, can help them increase customer loyalty and brand recognition.
Improving Customer Satisfaction
Having a diverse range of products in a product line can help companies to improve customer satisfaction. So by offering a range of options to customers, companies can cater to different customer needs and preferences, increasing the chances of customers finding what they are looking for. This, in turn, can lead to improved customer satisfaction and loyalty.
Facilitating Product Development
Having a well-defined product line can also help companies in their product development efforts. So by having a clear understanding of their target market and the products that cater to their needs, companies can more effectively design and develop new products that are aligned with their target market’s needs and preferences.
Streamlining Marketing Efforts
A product line can help companies streamline their marketing efforts. So by having a clear understanding of their target market and the products that cater to their needs. Companies can more effectively allocate their marketing resources and design targeted marketing campaigns that effectively reach their target market.
Product line as a group of products under a single brand
A product line is a collection of related products that a company markets under a single brand name. So that the products within a product line are similar in some way. Such as their target market sector, function, channel distribution, physical attributes, prices, quality, or type of customers. This allows companies to market and sell products to specific customer groups more effectively. As the products within a product line have similar characteristics and demand to similar customers.
For example:- A company has a product line of high-end, luxury beauty products that target rich customers, while another product line might focus on affordable, all-natural skin care products for budget-conscious customers. So the company can then focus its marketing efforts on each product line to reach its specific target customers more effectively.
In India, product lines are a common way for companies to sell and market their products. The responsibility for creating and managing product lines often falls to product managers and other marketers. Companies may run several product lines under a single brand or multiple brands, and they may release new product lines or extend existing ones.
Conclusion
The product line is a crucial aspect of a company’s product strategy and can help companies increase their market reach, revenue, and customer satisfaction. By having a well-defined product line, companies can diversify their revenue streams, enhance their brand image, improve customer satisfaction, facilitate product development, and streamline their marketing efforts.
| Nespresso | Nescafe |
| Milo | Illuma |
| NAN | Garden of Life |
| Purina ONE | Felix |
| Merrick | Nido |
| Haagen Dazs | Maggi |
| Kit Kat | Pure Life |