When a company provides several different products related and marketed under the same brand name, it is called a product line. These products in the product line are related to all products related to the same industry or the main product or customer. Since they all are offered under the same brand name, it helps the customer follow the products of the product line easily. The brand image plays a significant role in the success of the product line. A company tends to offer different product lines with different brand names. These different product lines may be from unrelated industries. Since a product line relates to one industry, a company aims to add and remove products based on the need to the market. The company tries to maintain its market share in that industry and grow it further. To do so, they remove obsolete products and provide updated or modified products as per the customers’ changing needs. This helps the company to keep the product line viable and profitable.
Product Mix
The mix of all different products and services that a company provides in the market is called product mix. These products may belong to the same industry, related industry, or unrelated industry. Each product mix can be defined by its width, depth, and length.
Each product mix has different product lines. Product line means that there are different products offered under the same brand name. These products are related. The total number of product lines a company has denotes the width of the product mix.
Further, the number of products in each product line provides the product mix depth.
Finally, the total number of different products that the company provides is called product length.
Advantages and Disadvantages of Product Mix
A company offers several products so that it is not dependent only on one product. The more the products, the lesser is the risk of company bankruptcy. By entering different markets, the company tends to capture different customer segments and make more profits. It not only helps the company to earn large profits but also makes the company a popular brand across different industries. A company earns profit from a product that is at a maturity phase of the product life cycle and invests it in a product that is in the introduction or growth phase. This permits the company to avoid losses and risks. It allows the company to make profitable investments and use its resources more efficiently.
Disadvantages of Product Mix are that if firm produce only one product and if the product fails then the firm would also fail. If there is an unfavorable promotion for one commodity it may injure the company’s whole picture. The cost of producing and selling of more products are too high.
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