WHAT IS A PRODUCT LINE? HOW IT WORKS, TYPES & MORE

Can you remember the particular time you wanted to purchase a product from a company like a car, a laptop, or even a mobile phone?

How did it feel when the car company, take for instance, Toyota or Apple for your mobile phone, didn't just have a few products without variations but a whole bunch of them just waiting for you to make your choice? It felt great, right?

I'm sure it did, and that's also because it helped you a great deal, right? Well, that's what a product line is for, and that's why companies have them.

I'll be mainly addressing in this article the meaning of a product line, how it works (very important), common types, and also examples of companies that use of them in real time.

You'll enjoy your reading, but you'll also come to the understanding of their need to satisfy customers. So as a company owner, executive, or individual, this article will be helpful. Without further ado, let's begin!

What is a Product Line?

A product line simply refers to the assembly of products togetger and sold by a company under a particular brand or category.

For example, a company that deals on technology can have a product line of smart phones made up of smart phones of different models, specifications, and pricing.

These products, which are grouped to form a product line, usually have things in common.

They have similar characteristics, target markets, functionalities, etc., which makes it easy for a company to meet the different preferences of their broad customer base while leveraging the same marketing and distribution channels.

What this means is that they do not have to spend extra for each product individually, especially when they can all come under a single category.

How does Product Line work?

Since we now know what a product line is, the next thing that's needed is the understanding of how it works and you can use it efficiently for your products.

To understand how it works, we'll need to go through a couple of simple steps, which should do the trick:

Step 1: First, to understand how product lines work, companies try as much as they can to understand who their customers are—their target market.

They want to get every piece of information on them, including what product(s) they prefer the most, why they do it, and how to cover lapses that may cause them to lose a customer.

From gathering to analyzing customer data, companies make market research a priority, and this is something you should also do.

Step 2: In this next step, companies take action on the information they've gathered and then channel it into product development.

The range of products they develop to meet their different market segments should have a common theme or brand, even though they'll have different features, specifications, pricing, and all that.

Step 3: After product development, companies want to make sure that their target market do not get mentally worked up or confused when identifying their products.

So, companies ensure that every product within a product line has the same brand.

In branding, they'll have the same logo design, story, etc., which will help the products to be well positioned in the marketplace for customers to see and patronize—this is definitely what companies want!

Step 4: In this fourth step, companies "unleash" their marketing strategies to effectively let everyone know that they are there and that they have something great to offer.

This is the point where companies put their best foot forward by leveraging their unique selling points.

The better their marketing strategies are, the more they'll appear before the right eyes and cause a positive response to their products—straight and simple!

Step 5: In this fifth and last step, I'd like to summarize every other thing that happens after the marketing efforts.

These include distribution and sales, getting feedback on customer choices, and the life cycle management of products.

The other two are quite common, but I'll want to stress the importance of managing product line's life cycle.

This means that at some point, some of the products in the product line will need to change, and some newer ones will need to be added, so constant review and improvement must be made.

At the end of these steps, I'm sure you now know how it works? Well, there you have it: understanding how product lines work in five simple steps. You'll want to review those steps as often as you need to.

Types of Product Lines

There are different types of product lines available for classifying you products, and this is to help companies know which one will best help them achieve their goals. Let's consider some of the common types of product lines:

Product Line by Quality or Price

Product line by quality or price is an attempt by companies to offer a range of products in the same category at varying qualities and price levels.

For a simpler explanation, take, for instance, a car manufacturer that offers varying qualities of cars, such as basic, mid-range, and luxury models, in a product line.

These different models can allow customers to make their choices based on how much their budget is and what they are willing to spend on any of the models.

Product Line by their End Use

For this type of product line, companies classify their products based on their end use (what their application will be used for).

So, for instance, Johnny Group & Co. is a company that manufactures cleaning products. Because cleaning products have a wide range, the company will have product lines for household cleaning, industrial cleaning, etc.

Along side offering different products that customers can choose from, they also help their customers find the right products easily under a specific product line.

Accessory Product Line

Accessory product line comprises products designed specifically to complement other products. They may not be very useful by themselves, except when used with other products.

This type of product line is best explained in the example of Mr. John, who owns a smart phone company but also has a phone accessory product line that offers phone casings, headphones, screen covers, and others.

By offering this assessory product line, Mr. John will reach a broader audience, meet a range of preferences, and get his brand established.

Product Line by Age and Gender

Product lines by age and gender are often employed by companies by categorizing their products into different age grades and genders.

For example, a company can create products that are for men, women, children, or a specific age group. This makes it easier for customers to have a wide range of products to choose from that also meet their very specific needs.

By having product lines that cater to different demographics, companies stand a better chance of reaching a wider audience and gaining patronage.

Product Line by Functionality

This involves grouping products in a product line based on their functionalities, features, and capabilities. In a more simple term, it means grouping products based on what they can do.

It offers customers a variety of products in its product line to choose from.

A typical example will be a company that manufactures fitness wearables that are designed to perform different functions, have different features and capabilities, and meet the needs of customers with different fitness goals.

Examples of a Product Line

There are several examples of product lines owned by businesses all over the world that have helped and are still helping businesses better meet the needs of their customers.

Let's consider two very well-known and prominent examples:

Toyota Corolla

Toyota Motor Corporation is a multinational Japanese automobile company with its headquarters situated in Toyota City, Aichi, Japan.

As a multinational company, Toyota has many vehicles categorized into different product lines. One of their product lines is the Corolla.

Toyota Corolla, one of the most famous and widely used brands across the globe, has different models such as Corolla Sedan, Corolla Hybrid, Corolla Hatchback, etc. (including the one that's very common where you are).

What Toyota did with the Corolla product line was to offer cars with different features, sizes, and specifications that appealed to the needs and preferences of their large customer base.

Apple iPhone

Apple, a giant in the gadget world and one of, if not the most sought-after product, when it has to do with their mobile phones, laptops, smart watches, and so on.

Due to their wide range of products, they have different product lines to help their customers better, one of which is the iPhone.

Their iPhones come in different models, such as the iPhone 14, iPhone 14 Pro, and iPhone 14 Pro Max. These different iPhones have different specifications, like camera quality, features, and definitely their price.

Having a range of iPhones has helped Apple meet the needs and preferences of their customers, and proof of that is that Apple is still very much in business, with a net income of $94.760 billion at the end of the 12-month period that ended in June 2023.

Product Line vs. Product Mix

It's easy to get confused with product line and product mix. Are they similar? Do they do the same thing? Or are they different?

These questions are usually asked when it comes to businesses doing their best to categorize products to help their customers make selections from a range of products that cater to their needs and preferences.

So, as I've earlier said from the definition of what a product line is, it refers to products that are grouped together and sold by a company under a particular brand or category, and they usually share similarities in their audience, market share, and so on.

While a product mix (or product portfolio) refers to all the products that a company offers to its customers. As the name implies, it's a mix of all product lines in all categories that a company offers.

So, in a simple analogy, product lines are like the blocks that form the building called the product mix. While both of them deal with products, they are not the same!

Frequently Asked Questions

Can a single product be a part of multiple product lines?

Yes, a single product can fit into multiple product lines, but it has to meet the criteria and target audience that those other product lines meet. So, for instance, an accessory product that's very versatile can fit in different product lines because it meets their criteria.

How does product line extension differ from product line filling?

Product line extension differs from product line filling in that product line extension concerns itself with adding new models within an already existing product line, while product line filling has to do with adding products to fill in gaps in a product line with the aim of meeting their customers' needs.

Conclusion

Product lines have, in many ways, helped companies categorize their products to meet their customers' needs and preferences.

On the side of customers, product lines help them have multiple options to choose from when they want to make a purchase.

So they know that they could get a model of product that suits their lifestyle, income, and needs—what a great experience that could bring to the customer!

Product lines will remain helpful as long as the business landscape is concerned and as long as humans have needs that must be met.