What is a range of products?
A product line is a group of related products marketed under one brand and sold by the same company. Companies sell several ranges of products under their different brands, seeking to distinguish them from each other for better usability for consumers.
Companies often expand their offering by adding existing product lines, as consumers are more likely to buy branded products they already know.
Operation of product ranges
Product lines are created by companies as a marketing strategy to capture sales from consumers who already buy the brand. The operating principle is that consumers are more likely to respond positively to the brands they know and love and will be ready to buy new products based on their positive experiences with the brand in the past.
For example, a cosmetics company that already sells a range of high-priced makeup products (which could include foundation, concealer, powder, blush, eyeliner, eyeshadow, mascara and lipstick) under one of its well-known brands could launch line of products under the same brand but at a lower price. Product ranges can vary in terms of quality, price and target market. Businesses use product lines to assess trends, which helps them determine which markets to target.
A product line is a marketing strategy that allows a company to expand its activities by targeting consumers who are already buying the brand or who are likely to buy it.
The evolution of product ranges
Companies add new items to their product lines, sometimes called product line extensions, to introduce the brands to new customers. Consumers who are not interested in a company’s sporting goods, for example, may be more interested in purchasing its line of energy bars or sports drinks. The extension of product ranges allows companies to maximize their reach.
The way companies use product lines is clearly evident in the automotive industry. Car manufacturers famously produce a variety of product lines to reach the widest possible range of consumers.
For this reason, they produce ranges of economical vehicles, eco-friendly vehicles and luxury vehicles, all under their main brands. Some are marketed to families, some to individuals, some to the young, some to the elderly – some are marketed to everyone.
Product ranges allow companies to reach regions and socio-economic groups, sometimes even global. In some cases, like the cosmetics industry, companies are also launching product lines under their best-selling brands to capture sales by consumers of various ethnic or age groups. Multinational companies, such as restaurants, often launch product lines specifically for the countries in which they operate, as is the case for fast food restaurants operating in Asia.
Examples of product ranges
Microsoft Corporation (MSFT) as a brand sells several lines of highly recognized products, including Windows, Office, Xbox and SharePoint. Nike Inc. (NKE) offers product lines for various sports, such as athletics, basketball and football. The company’s product lines include shoes, clothing and equipment. PepsiCo (PEP) owns and markets, among others, around the world, Frito Lay, Gatorade, Quaker Oats, Tropicana and Garden of Eatin ‘. The Starbucks Corporation (SBUX) product lines include coffee, ice cream and glasses.
Key points to remember
- A product line is a group of connected products marketed under a single brand by the same company.
- Companies sell several ranges of products under their different brands, often differentiating themselves by price, quality, country or targeted demography.
- Companies often expand their offering by adding existing product lines, as consumers are more likely to buy branded products they already know.