A supermarket, for example, may sell the line of car accessories, as well as a line of household cleaning agents, a line of bread related products, or a line of fruit and vegetables. The line of products typically shares the same logo, brand and color scheme. Product diversification definition — AccountingTools For example, Businesses A and B sell the same type of product and Business A has a tagline that makes it easy for its audience to perceive the value of its product. Also, some companies opt to target a single market with a wide range of products. Selling products in the age of omnichannel distribution takes a lot of tools. Each of the product lines is completely different from the others. Product Mix – Width, Length, Depth, Consistency with Examples For example, if Company A is a toy manufacturer, an example of a direct material cost would be the plastic used to make the toys. 1. The Product-Line Profitability metric calculates the total amount of profit gained from all products within a product line, minus the expenses used to produce and sell them. Combine the ones that fit you the best and always test different options. For example, if a store primarily sells greeting cards, it likely has a lot of product depth, such as 100 different types of sympathy cards. A product line is a related set of products offered by a firm. 2. A “new-to-the-market product” is a good or a service that has not been available to consumers or manufacturers in the past—for example, the PowerSki Jetboard. The Macintosh product line includes the MacBook, MacBook Pro, MacBook Air, Mac Mini, iMac, and Mac Pro. For example; 1. The three basic categories of product costs are detailed below: 1. The lesser the variations between the products, the more is the product line consistency. The Product Executive Track. Consumer packaged goods (CPG) brands are the reigning royalty of product line extension. The strategy should answer key questions such as who the product will serve (personas), how it will benefit those personas, and the company’s goals for the product throughout its life cycle. According to Philip Kotler, a product line can be defined as “a group of products that are closely related because they function in a similar manner, and sold to the same customer groups, are marketed through these same types of outlets, fall within given price range.” In the above definition, Philip Kotler emphasizes a few p… An example may be a computer company that carries a line of computers, monitors, and printers, but only two or three models in each product line. Reporting frequency. For example, when a company creates a group of products that deal with hygiene, such as shaving cream, soap and shampoo, this is known as a product line. A product line is a group of related products under a single brand sold by the same company. Companies sell multiple product lines under their various brands. For example, Samsung offers mobiles, T.V’s, A.C’s, washing machines, etc. Product Line Filling. The example below shows a business model developed by Aha! 2: Expanding the product line . Amul offers a plethora of product lines that are closely related to each other but still different. 1) Coca Cola: 2) Levis: 3) Durex: Merits of Product Lines Extension. Line extensions refers to the process of expanding an existing product line. product line. A product line extension strategy is an approach to developing new products for your existing customers or for prospects who do not currently buy from you. Extending a product line involves adding new features to existing products, rather than developing completely new products. A product strategy is a high-level plan describing what a business hopes to accomplish with its product and how it plans to do so. There are many types of business models — including lean canvas, Porter's 5 forces, and the 10Ps marketing matrix, among others. Before defining a product vision, it’s important to have some valid data. Relevant information includes the revenues and costs which are directly related to a product line or department. Definition: A product is the item offered for sale. Product depth is the number of variations or subcategories of a product that a retailer offers. A product Mix consists of various product lines. For example, Demerits of Product Lines Extension. In other words, the product mix is the number of product lines a firm has under its umbrella. Flavors. Product extensions. Product line analysis is part of product line development.2 The decision to develop and man-age a product line begins with identifying a business opportunity that, potentially, can be real-ized by exploiting strategic reuse; that is, creating sets of related products from common parts. The meaning of PRODUCT LINE is all goods made by a manufacturing firm. Product Line Decisions no. Product development strategy examples (Technology) Amazon’s product development strategy. It may be possible to sell several versions of the same product, perhaps by adding additional features or by offering the product in different colors. The next best example for the Line Filling is the automobile brands work on the constant endeavor to offer the vehicles for every target market and segment. Understanding the product life cycle allows you to keep reinventing and innovating with an existing product (like the iPhone) to reinvigorate demand and elongate the product’s market life. Product category: High-end foundation makeup. And because this particular product is for retailers therefore making that loud and clear is a no-brainer, hence the phrase “ sell in-person ”. Product mix, also known as product assortment, refers to the total number of product lines a company offers to its customers. 6 Killer Line Sheet Template Ideas from 6 Industries. A product can be a service or an item. Product line filling is the addition of further items to the current line of products that a company is dealing in. Some companies place the list on the back of a business card. The executive track begins with Director and Senior Director roles. The chart below shows the entire Apple product portfolio, arranged by product line. For example, Crayola starts making a new color of marker or Mercedes makes a wagon version of their C-Class car line. A line producer is a type of film producer that functions as the key manager during the daily operations of a feature film, television film or an episode of a TV program. A line producer works on one film at a time. They are responsible for human resources and handling any problems that come up during production. Product line pricing involves the separation of goods and services into cost categories in order to create various perceived quality levels in the minds of consumers. ... Keep pricing across the product line consistent. The product line length can be influenced by company objectives and resources. Their product strategy is focused entirely around customer needs. The product line length can be influenced by company objectives and resources. A product line is a family of products derived from the same ancestry. For example, Depth refers to the number of variations within a product line. Specifically, it takes a lot of sales and marketing tools: Product sheets, sell sheets, catalogs, online brand portals, and more. Here mobiles is one product line, T.V is one product line, etc. This section should help round out your knowledge of exactly how, and why, product segmentation works. Samsung offers many different products which are treated as different product lines, together called as product mix of samsung. A line extension is when a brand introduces a new product in the same category. Product Line Pricing Strategy is a process that companies use to separate products into various cost categories that helps consumers differentiate among quality levels of the products in the same category. Nike Inc. (NKE) has product lines for various sports, such as track and field, basketball, and soccer. For example, if a company has a product line with 18 variations amongst all of the products within the line, then the product depth for that line is 18. Now, there are four dimensions associated with a company’s product mix and the product line breadth is one of them. Examples. Afterwards, the production line may be reconfigured for a batch … For example, rent paid for Barbeque Company’s retail store is allocated to all three product lines because it is not easily traced to each product line. Group of related products: Product lines are product groups consisting of related products based on – target audienc… Decision to Add or Drop Product Line. For example, think of products for the military. The design used in product layout differs from process layout and fixed-position layout in that the assembly line is arranged in a logical order of assembly. 2: Expanding the product line . You might also hear product line pricing referred to as price lining, but they refer to the same practice. Ever since then, for twenty years, Apple’s product line has been growing. that focuses on why your product is worth buying. However, the product line is a subset of the product mix. A decision whether or not to continue an old product line or department, or to start a new one is called an add-or-drop decision. BMB has an article with 9 interesting examples of Product Line Extensions. The company uses the value of the existing product to market and introduce new choices to consumers. As you should see, each related set of products is considered to be a product line. While Hindustan Machines and Tools produce wrist watches as well as tractors, it … A product mix is a group of everythinga company sells. Product Length: refers to total number of products sold within a product line. Expanding the product line is the second one of the product line decisions. Image source. Direct material. The production plans and techniques used to create products vary widely from organization to organization and from one product line to another. The company's product lines include footwear, clothing, and equipment. Bringing your vision for an original product to life is frequently one of the biggest hurdles for aspiring entrepreneurs. Examples would be solar panels, geothermal, and duct cleaning. Within each product line series are three types of cars. Example: a mature company in an established market might have a product portfolio resource allocation of 70% for core products, 20% for adjacent and 10% for transformational product lines. Granny Foods Co. is a company that produces and distributes food products for the retail market. Software Product Line Engineering as a field of study can be traced back to the mid-1970s, although examples of actual software product lines built by far-sighted practitioners can be found much earlier. However, the retail store rent likely will not decrease if the charcoal barbecues product line is eliminated (unless the company chooses to move to a smaller, less costly store). What Is an Assembly Line: Definition & Examples. For example, product lines of Philips India Ltd., include radios, bulbs and tubes, different television sets, VCR, CD-DVD player, tape recorders, etc., can have higher consistency. The legendary Steve Jobs 2 x 2 product matrix. Its product includes This is the part of your business plan where you will describe the specific products and services you’re going to offer. Additional flavors such as a line of organic fruit-only jams that adds a cherry jam to … If a company has more than one product line that you want to determine the product depth for, you can repeat these steps for each product line you plan on analyzing. A product line is a group of products that are closely related and are promoted together. For instance, Apple offers smartwatches, smartphones, Mp3 players, computers, tablets, etc. Monthly. For example, The product width is therefore determined by how many different … For instance, if an automobile brand is quite successful with its range of sedan and hatch bag car models and figures out that there are a need and gap for the SUV vehicles in the market. Admittedly, it helps to have singer and business powerhouse Rihanna at the helm. For example, Apple offers computers, smart phones, tablets, MP3 players, smart watches, and online services. In some cases, this simple manufacturing layout is realized as a single manufacturing line with various workstations. Diet Coke is a product extension of Coke, introduced to meet the need for a low-calorie cola drink. This is a good start, but there isn’t enough real estate on a card for this. A product-line extension is when someone adds new products into their product line to try to entice new customers to purchase. For example, your company may sell multiple lines of products . Product line pricing is more effective when there are ample price gaps between each category so that the consumer is well informed of the quality differentials. A product range is a group of products that generally have something in common or compliment each other in … Some of the prime examples are discussed below – 1. Business Plan Section 4: Products and Services. For example, all the courses a university offers constitute its product mix, courses in the marketing department constitute a product line, and the principles of marketing course is a product item. P&G has product lines in Baby Care, Family Care, Feminine Care, Fabric Care, Home Care, and Hair Care. 9 Product Category Marketing Examples. Examples of Product Line Extension. With minor improvements, you can convert more visitors into customers and increase your sales revenue. For example, a company might sell multiple lines of products, with the product lines being fairly similar, such as toothpaste, toothbrush, or mouthwash, and also other such toiletries. An add-or-drop decision must be based only on relevant information. However, the entire Apple product portfolio is much more complicated, comprising six product lines and numerous products within each line. Product Depth Defined . Here it is. 1) Check the growth and progress of your existing product line : 2) Ask your customers: Product line depth is also sometimes expressed as merchandise depth or merchandise assortment. An “extension to an existing product line” is a new product developed as a variation of an already existing product—for example, Peeps chocolate eggs. There are five common product line pricing strategies – captive pricing, leader pricing, bait pricing, price lining, and price bundling. Under each of these product lines they would offer a variety of different products. Answer (1 of 2): A product line is vertical whereas a product range is horizontal. Companies keep changing their product line. For example, a car company decides to build a sports car that is positioned at the top end of its product line. Why not let the customer know exactly what you can do for them? #3 Depth. It can be physical or in virtual or cyber form. Each of these would be considered a separate product line and under each product line they could offer a broad range of different products designed for different needs. A product line organization creates such a plan to ensure that the correct core assets are used appropriately to build a specific product in a specific way. For instance, a manufacturer of cleaning products might sell liquid soap, mops and sponges, aiming to create a complementary product line that customers trust. When a product is present in multiple industries, it is described as a horizontal market product and can support a wide range of customer needs. Product Mix, another name as Product Assortment, refers to a number of products that a company offers to its customers. There could be one or more product under a product line. Direct material costs are the costs of raw materials or parts that go directly into producing products. Product line – a product line consists of the entire group of products included in a class of products and these products are related because they perform a comparable function, are purchased by the same group of customers or fall within a certain price range. Apple's approach was to deliberately simplify its product line by offering just one model a year for all customers while making it an expensive, high-end product. Product Mix, or product assortment, or product portfolio is the categories products that a firm offers. For instance, a company might want to maintain longer product lines to protect against economic swings. Generally, a production line is a semi-automated system in which products go through a production process. Doing so keeps customers with the product line, since it offers them every possible variation on their needs. Say an iPhone 4, 6, 7 then 8. Product line – a product line consists of the entire group of products included in a class of products and these products are related because they perform a comparable function, are purchased by the same group of customers or fall within a certain price range. Procter & Gamble (P&G) is a good example of a company with several product lines. Phrasing the product vision in one inspiring sentence. For example, The example product launch subject line above presents you in a subtle way how their new product is going to solve your problem by including the phrase “Everything you need”. For example, a general accounting platform can be used by all business types. Product Length: refers to total number of products sold within a product line. For example, phones marketed at business were often deliberately stripped of cameras or the ability to play music and games. A new variant of an existing product that competes in the same category. Expanding the product line is the second one of the product line decisions. For example, phones marketed at business were often deliberately stripped of cameras or the ability to play music and games. There are five common product line pricing strategies – captive pricing, leader pricing, bait pricing, price lining, and price bundling. For example, a mobile phone company offering different smartphones with different features at different prices. There will be examples with each type of strategy. For instance, a company might want to maintain longer product lines to protect against economic swings. A few keyphrases to focus on to understand this definition of product line are – 1. 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