Product Line
A product line is a group of related products manufactured by a single company. These products function in a similar manner or cater to a similar customer base, and they may be used together or be able to support each other in terms of sales. Typically, they are associated with a specific product category or have been developed to serve a particular market segment.
For instance, consider the company Apple. Apple has several product lines, including the iPhone line (iPhone 12, iPhone 12 Pro, iPhone 12 Pro Max, etc.), the iPad line (iPad, iPad Pro, iPad Mini), the Mac line (MacBook Air, MacBook Pro, iMac), and so on. Each of these product lines consists of products that serve a specific sector of the market and meet different consumer needs but are still under the broader category of consumer electronics.
Having multiple product lines allows a company to target different customer segments, expand its market share, and diversify its risk. If one product line underperforms, the others may compensate. Furthermore, different product lines can appeal to different customer preferences, such as price, quality level, feature set, and more. It also allows the company to leverage its brand and take advantage of economies of scale in production and marketing.
However, managing multiple product lines can be complex and requires careful strategy in terms of pricing, positioning, promotion, and development to ensure that the product lines are not cannibalizing each other’s sales and are contributing to the overall profitability and growth of the company.
Example of a Product Line
Let’s take the example of Procter & Gamble (P&G), a multinational consumer goods company. P&G owns numerous well-known brands, each of which constitutes a product line. Here are a few examples:
- Tide: Tide is a product line of laundry detergents. Within this line, there are several different products, such as Tide PODS, Tide Liquid, Tide Powder, and more. Each of these products serves a similar purpose (cleaning clothes) but comes in different forms and may have additional features (e.g., stain fighting, color protection, fragrance).
- Pampers: Pampers is a product line dedicated to baby care, primarily known for its diapers. However, within the Pampers product line, there are various kinds of diapers for different stages of a child’s growth (Pampers Swaddlers, Pampers Cruisers, Pampers Baby Dry), as well as related products like Pampers wipes.
- Crest: Crest is a product line focused on oral care. This line includes a variety of products, including different types of toothpaste (whitening, cavity protection, gum detoxify, etc.), mouthwashes, and toothbrushes.
- Gillette: Gillette is a product line targeted towards shaving and personal care. It includes razors, shaving creams, gels, foams, aftershave products, and more.
Each of these product lines has its own target audience, marketing strategy, and pricing structure, but they all fall under the larger P&G company umbrella. This allows P&G to cater to a wide variety of consumer needs and market segments, while leveraging its overall brand strength and operational efficiencies.
