Did you notice that most people have a range of electronic devices from the same company like TV, Microwave, Refrigerator, Washing Machine, etc.. Product line refers to a range of product items which are similar in nature, characteristics and function. On the other hand, product mix is the complete range of products that a firm manufactures and offers for sale.
There are four elements of the promotion mix, and the product is one of its elements. Product implies the goods and services that fulfill the needs and wants of customers. In this regard, product mix and product line are often a part of the discussion. So, here we will explore the differences between product line and product mix.
For any business selling multiple products two important concepts are the product line and product mix. Though they sound similar there are some key differences between the two. In this article, we’ll explore what product lines and product mixes are, how they differ, and why understanding both is crucial for business growth and branding.
What is a Product Line?
A product line refers to a group of related products that are designed to satisfy similar needs, sold through the same types of outlets fall within a certain price range or cater to the same consumer group. For example Microsoft has different product lines like Surface, Xbox and Microsoft 365.
Within a product line, the products are closely related in terms of function and marketing. They may simply differ in attributes like size, flavor, color etc. The goal of a product line is to cover a range of price points and varieties within a product category to attract different consumer segments.
Key Characteristics of a Product Line
- Products serve a similar purpose or function
- Share common production/distribution channels
- Target the same consumer group
- Fall within a similar price range
- Have a unified brand identity
Examples of Product Lines
- L’Oréal Paris has product lines for haircare, skincare, cosmetics, fragrances etc.
- Sony has product lines for televisions, audio devices, gaming consoles, cameras etc.
- Apple has different product lines like iPhone, iPad, MacBook, Apple Watch etc.
What is a Product Mix?
A product mix refers to the total number of product lines that a company offers to its consumers. It is also known as product assortment. The product mix has four key dimensions:
Width – The total number of different product lines
Length – Total number of items across all product lines
Depth – Number of variations within each product line
Consistency – How closely products are related to each other
For example, a clothing brand may have product lines for menswear, womenswear, children’s wear and accessories. The length of the product mix is the total number of clothing items across these product lines. The depth refers to variations within each line, like color, size or fit.
Key Differences between Product Line and Product Mix
-
A product line focuses on a single product category while the product mix includes multiple product lines across categories.
-
Product lines are designed to meet specific consumer needs. The product mix aims to fulfill diverse consumer needs across segments.
-
Items in a product line are closely related in function and marketing. Items in the product mix can be totally unrelated.
-
Product line length refers to number of products within a line. Product mix length equals total products across all lines.
-
Product lines use similar branding. Each line in the product mix may have distinct branding.
-
A new product line extends a company’s breadth. New products in a line increase its depth.
Why Understanding Both Concepts is Crucial?
For companies selling multiple product categories, managing both product lines and the overall product mix is key for growth.
Targeting Diverse Consumers
Different product lines help target specific consumer segments based on their needs and preferences. The wider product mix expands a company’s reach across consumer groups.
Optimizing Resources
Focusing on individual product lines allows optimization of manufacturing, marketing and sales for each target segment.
Brand Building
Distinct but related product lines reinforce brand identity. Diverse product mix conveys brand as fulfilling range of consumer needs.
Increase Sales
Wider product mix provides more purchase options and upsell opportunities to boost revenues. New varieties within lines attract larger consumer share.
Mitigate Risks
Multiple product lines reduce over-dependency on any one product category. A wider mix also balances out seasonal fluctuations in demand.
Enhanced Competitiveness
Broader product assortment makes a brand more competitive and makes it harder for new entrants to displace it.
Best Practices for Product Lines and Mix
Here are some tips for effectively managing product lines and product mix:
-
Conduct market research to identify consumer demand and gaps in product offerings.
-
Focus on core competencies when adding new product lines.
-
Ensure adequate differentiation between products within a line. Too many similar items can cannibalize sales.
-
Measure sales and profits by product line to focus investment on most productive ones.
-
Analyze sales seasonality across product mix to optimize production and inventory.
-
Eliminate underperforming products from a line to sharpen focus on profitable items.
-
Review product mix regularly to discontinue non-core product lines if needed.
-
Leverage common distribution channels and marketing for individual product lines for efficiency.
Key Takeaways
-
Product line refers to a group of closely related products serving a specific consumer segment.
-
Product mix includes the full range of different product lines offered by a company.
-
Product lines boost segmentation and branding while product mix enhances consumer reach.
-
Managing product line width and depth along with optimal product mix is crucial for profits.
-
Regular review of product line sales and product mix seasonality provides actionable insights.
In today’s dynamic markets, having clearly defined product lines and a diverse product mix is crucial for sustained growth and profitability. Companies need to constantly assess market trends and consumer needs to refine their product offerings accordingly.
Content: Product Line Vs Product Mix
| Basis for Comparison | Product Line | Product Mix |
|---|---|---|
| Meaning | Product Line is a set of products that are related and has similar functions. | Product Mix is a full assortment of products and items that a company introduces and offers for sale. |
| Factors | Price Range, functionality, brand, and target audience. | Companys age, financial standing and brand identity. |
| Objective | To meet the needs of specific customer within a particular market segment. | To cater a wide range of customer needs, accross various market segments. |
| Relationship | Products in a product line are quite related and have common features, benefits and uses. | Products in product mix may or may not be related, as there is a wide range of categories. |
| Strategy | It is used to catering a wider audience of a particular market segment by offereing different variants of a product to fulfill various needs of customers. | Product mix is used for diversifying the offerings and reducing risks, to cater to different markets and market segments. |
| Variations | Different color, size, features, specifications, technology used, etc | Different product categories. |
| Management | Own management and marketing strategies. | Holistic approach is required for managing different product lines collectively. |
| Strategy for growth | Firms can expand by launching new models or variants within the existing product line. | Adding a new product line for catering different markets and segments. |
What is a Product Line?
Product Line implies a single line of identical products that a company manufactures and offers for sale to its customers. These products perform similar functions, i.e. they are used to satisfy the same want, have the same price range and target the same audience or customer groups. Also, they distribute products using the same channels.
The marketer may ascertain various product lines offered to the buyers by taking into account the buyer’s consideration, distribution and economy of production.
Generally, the companies introduce more and more variants in the product line of each product to widen the customer base by filling the gaps in the offering. This will also prevent new players from entering into the market.
A product line is regarded as short when the profits increase by adding more items to it. Conversely, the product line is said to be long if the profits increase by reducing some products. It attracts new customers, improves the brand’s competitiveness and influences the market or field. Product Line comprises a number of several sublines, which include a number of product items.
Suppose a company sells Hair care products may have a first product line that sells Hair oils, a second product line that sells shampoo and a third product line that sells conditioners.
- It comprises closely related product items. One can distinguish these products only on the basis of shape, size, colour, performance, model, weight, etc.
- Products in a product line complement each other.
- Product Lines make use of the same distribution channel, which means that products are marketed through the same outlets.
- The objective of offering similar products in every product line is to attract customers by supplying more varieties.
- The items of a single product line are produced using the same technology or resources.
- Their function is similar, and they require similar skills for using them.
- Items of a product line are sold to the same customer group. Hence, they satisfy the needs of the same group.
- Line Stretching: If a company lengthens its product line over and above its present range.
- Line Filling: It is the addition of more variants or items within the current range of products to strengthen the product line. So, it is a technique to increase profits by selling those items that are missing from the current product line.
- Line Modernization: It is when the company likes to upgrade their products with new technology to make customers switch to better, and high-priced items.
- Line Featuring: Featuring refers to one or two products in line to attract customers to the store. Thereafter, showcasing the various models.
Also Read: Difference Between Product based and Service based Marketing
