PRODUCT LINE

ANALYSIS
RISHAB RAJORA
NITIN KUMAR
SIDDHARTH VISHNOI
 PRODUCT LINE
• Group of products that are closely related.
• Function in a similar manner.
• Sold to the same consumer group.
• Marketed through the same outlet.
• Fall within a given price range.
• For example : Footwear(Nike and Adidas) , Hotel Chains(Hyatt and Marriot)
 PRODUCT LINE DECISION
The major product line decision is product line length. It refers to the no of
products in a line.
A) Line too short is where the manager can increase profits by adding items.
B) Line too long is where profits can be increased by dropping items.
The product line needs to analysed at a regular interval as to what products are
generating profits and vice versa.
It also tells as how each item is contributing to the line’s overall performance.
 Expansion of product line
A company can expand its product line in two ways :
1) Product line filling : Adding more items in the current range of the line . The
company must ensure the new items are different from the existing one.
Reasons :
a) Generate extra profits.
b) Satisfying dealers .
c) Become a leading full line company .
d) Keep out competitors.
Drawbacks :

• Overdoing can cannibalize the company’s own product.

• Can create Confusion within customers.
• Customers can jump to other brands.
2) Product line stretching : It occurs when a company lengthens its product beyond its
current range. The company can stretch it upward, downward or both ways.

Reasons :
a) Increase customer base. Companies which are located at upper end can
stretch downward. For example : High end car makers , Clothing.
b) Generate fast growth. Mainly downward as lower segment grows fast.
c) Plug market hole that otherwise attract new competition.
d) To add Prestige to the Company . Upward stretch.
TAKEWAYS
• Connected product marketed under a single brand name by the same
company.
• Companies sell multiple products under various names based on :
a) Price
b) Quality
c) Country
d) Demographic