Content
- What is a product line?
- Product matrix: broader than a line
- Goals of creating product lines
- Types of product lines
- Structure of a product line
- How to manage a product line
What is a product line?
A product line is a collection of goods or services that share similar characteristics, targeted at close market segments or fulfilling similar consumer needs. Manufacturers create a variety of products that are interconnected but differ in specific attributes, such as flavor, functionality, or design. A group of homogeneous goods forms a product line. For example, Rich offers several product lines, such as juices, tonics, soft drinks, and iced tea. Each of these lines includes similar but distinct products.
Product matrix: broader than a line
The product (goods) matrix is a broader concept encompassing all goods and services offered by a company. Within the matrix, there can be several product lines, each aimed at satisfying specific needs. Companies create product lines to address the following tasks:
- Differentiation of offerings: Increasing market share by meeting diverse consumer needs and attracting a wide audience.
- Enhancing loyalty: Meeting all of the customer's needs so they do not turn to competitors for additional products.
- Increasing sales: A wide selection of goods increases the likelihood of purchase and customer interest.
- Marketing efficiency: Focusing on promoting the main product line without the need for separate advertising for each item.
- Strengthening competitiveness: Quickly adapting to market changes and offering unique solutions.
Goals of creating product lines
Product lines help companies achieve specific goals. For example, the Milka Bubbles line features various types of chocolate, and the advertising emphasizes the flagship product — porous milk chocolate. This helps ensure a high level of brand recognition and image. The success of the main product facilitates the easier introduction of new items to the market.
Types of product lines
There are three main types of product lines:
- Tiered line: Consists of similar products that differ in quality level, functionality, and price. Examples: Volkswagen cars or Samsung smartphones.
- Variative line: Includes products that meet the same need but differ in characteristics, such as juices with different flavors.
- Complex line: A set of interrelated goods that solve one problem or belong to one niche, for example, a line of cosmetics that includes creams, tonics, and masks.
Structure of a product line
To enhance the effectiveness of a product line, it includes goods, each of which fulfills a specific function. This forms the classic sales funnel:
- Lead magnet: A free product or service that attracts consumers (e.g., samples or demo versions).
- Tripwire: An inexpensive basic product that fulfills part of the customer's need.
- Main product: The key item for which the customer approaches the company.
- Profit maximizer: Additional goods and services that increase the average transaction value.
- Premium product: The most expensive item targeted at a narrow category of buyers.
How to manage a product line
Managing a product line includes product development and marketing strategy, pricing, and continuous assortment updates. The stages of managing a product line include:
- Market research: Analyzing competitors and studying consumer preferences.
- Market segmentation: Dividing consumers into groups for a more accurate definition of the target audience.
- Product line matrix: Identifying the most popular products and planning new items.
- Concept development: Generating ideas and analyzing strengths and weaknesses.
- Marketing strategy: Defining the unique selling proposition and developing a promotion strategy.
- Launch and monitoring: Testing the product and analyzing its success in the market.
Effective management of a product line allows companies to adapt to market changes, offer unique solutions, and maintain competitiveness.