9.2 Product Items, Product Lines, and Product Mixes

Companies offer a range of products to meet diverse customer needs. From individual items to product lines and entire mixes, businesses strategically craft their offerings to appeal to different market segments and maximize their market presence.

Product line length and depth play crucial roles in positioning and differentiation. Companies use various strategies like line filling and stretching to expand their offerings, capture new markets, and stay competitive. These approaches help businesses adapt to changing consumer preferences and market dynamics.

Product Offerings and Strategies

Product items, lines, and mixes

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• Product item represents a single, distinct product or service offering with unique features and benefits (iPhone 14 Pro Max, Nike Air Force 1 sneaker)
• Product line consists of a group of closely related product items that share similar characteristics, target the same customer needs, or utilize the same distribution channels (Apple's iPhone line, Nike's Air Force 1 line)
• Product mix (or product assortment) encompasses all the product lines and individual items that a company offers to its customers, representing the company's complete product portfolio (Apple's mix: iPhones, iPads, Macs, Apple Watches, and services; Nike's mix: footwear, apparel, and equipment across various sports categories)
• Product items, lines, and mixes play crucial roles in a company's offering by allowing them to cater to specific customer needs, target different market segments, and diversify their product portfolio to appeal to a wider customer base
  • Market segmentation helps companies identify distinct groups of customers with similar needs and preferences, enabling more targeted product development and marketing strategies

Product line length vs depth

• Product line length refers to the number of distinct product items within a single product line, with a longer line offering more choices and variety to consumers (Apple's iPhone line: iPhone 14, iPhone 14 Plus, iPhone 14 Pro, iPhone 14 Pro Max)
• Product line depth represents the number of variations or options available for each product item within a line, such as different sizes, colors, features, or price points, allowing for greater personalization and targeting of specific customer preferences (iPhone 14 Pro available in 128GB, 256GB, 512GB, and 1TB storage capacities; color options: Deep Purple, Gold, Silver, and Space Black)
• The length and depth of a product line impact a company's market positioning by influencing customer perception
  • A longer line can position the company as a comprehensive solution provider catering to diverse needs
  • A deeper line can position the company as a specialist offering high levels of customization
• Companies must balance product line length and depth to optimize market coverage, effectively target customer segments, and maintain a strong market position
  • Product differentiation strategies can be employed to distinguish offerings within a product line, creating unique value propositions for different customer segments

Strategies for product line expansion

• Product line filling involves adding new product items within the existing range of a product line to capture untapped market segments, respond to competitor offerings, and maintain customer interest and loyalty (Apple introducing iPhone 14 Plus to offer a larger screen size option within the iPhone 14 line)
• Product line stretching extends a product line beyond its current range, either upward by adding premium, higher-priced products or downward by introducing more affordable, basic options
  1. Upward stretching attracts affluent customers and enables entry into new markets (Apple launching iPhone 14 Pro and Pro Max with advanced features and higher price points)
  2. Downward stretching captures price-sensitive customers and expands market share (Apple offering iPhone SE as a budget-friendly option within its iPhone product mix)
• Product line filling and stretching strategies help companies address evolving consumer needs, capitalize on emerging market opportunities, and maintain a competitive edge by offering a diverse range of products that appeal to various customer segments, ultimately driving sales growth and increasing market share
  • Brand extension strategies can be used to leverage existing brand equity when expanding product lines into new categories or markets

Product Lifecycle and Marketing Strategies

• The product lifecycle consists of four stages: introduction, growth, maturity, and decline
• Each stage requires different marketing strategies to maximize product success and profitability
• Companies must carefully manage their product portfolio to avoid cannibalization, where new products compete with and reduce sales of existing products
• Product bundling strategies can be employed at various stages of the product lifecycle to create additional value for customers and boost sales