And when i use the term product line, what i really means is kind of different versions of the same product. Aug 03, 2014 discuss different productmix and productline strategies. The strategy for an extension could be a different color or size, and it may have. Product line extension strategy new product development.
Product line pricing principles price discrimination. When the product is a part of product mix or portfolio, companies adopt five kinds of pricing strategies in marketing which are as under product line pricing this strategy is used for setting the price for entire product line. In section 2, we give a short introduction to software product lines using a running example and we present an overview on important software analysis that have been applied to soft. Product lines are not to be confused with product bundling, which combines various items into one type of product. And a product category is related set of products such as, dairy products, computer products, furniture, motor vehicles, and so on. Stretching the product line means taking it beyond the established positioning of the range of products. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Companies may develop one product line, or may diversify to appeal to the masses. Findingsfindings of the research revealed that all four hypotheses were supported signifying that product line strategies have significant effects on the competitive advantage of foods and. Pricing is one of the most important elements of the marketing mix and has the most effect on whether or not the strategy is successful.
Oct 28, 2019 a product line is a similar group of products that are sold by the company under the same brand. A product line refers to a number of products that are related and developed by the same manufacturer. Product line management is fundamental to the new it. Product mix and product line understanding product length. Product offerings and product line length dynamics stanford. Apr 08, 2020 product mix, also known as product assortment, is the total number of product lines that a company offers to its customers. Digitization efforts are bigger and broader than ever, and they require it to fundamentally rethink its operating. Analysis strategies for software product lines 3 we refer the reader to a recent survey benavides et al. A matrix approach article pdf available in journal of marketing january 1976 with 339 reads how we measure reads. Then i will expand the information to the efficient strategies for making a profitable marketing, such as branding, segmenting, and pricing. Product line analysis is part of product line development.
A company has several strategies at its disposal with respect to the width, depth and consistency of its product mix. Mar, 2011 product mix strategies product line analysis too short vs too long companys objectives affect product line length market share and higher profitability 7. The objectives of the marketing strategy will be to enable the new product s entry to the market more efficiently, gaining a market share with old and new customers faster than with the case companys conventional marketing activities, and creating a positive brand image for the product. Productline dynamics arise from shocks to preference heterogeneity. Development of a strategic plan for the existing product line is. Discuss different product mix and productline strategies. The production plans and techniques used to create products vary widely from organization to organization and from one product line to another. A company may sell multiple products under one product line, and it can also have multiple product lines under its brand. Indepth and interactive exploration of how to develop powerful product line strategies coupled with detailed execution roadmaps.
Once you have these goals in placeand, ideally, on a prioritized list of importanceyou can then use them to inform your specific plans for features, functionality, and other aspects of the product youre going to build. Another way of thinking of these product goals is as key success metrics for your producta way of gauging whether your product strategy is working or needs adjusting. It is important for companies to know this point, as it will help determine realistic sales projections and strategies. A product line is a similar group of products that are sold by the company under the same brand. But what is a product line, and how should it be set up. Distribution includes both sales and delivery of everything that surrounds a product including customer service and customer experience. Benefits of a product line extension the marketing study. The width of the product mix is equal to the number of product lines within a company. The product lines may range from one to many and the company may have many products under the same product line as well. When selling a product line, a firm has to consider the costs of communicating about the different products to the consumers. These products that theyre selling may or may not be part of a product line. Price lining and bundle pricing optional and captive product pricing product mix pricing strategies adjusting prices to maximize the profitability for a group of products. The product strategy describes how product management will help the company achieve the company vision and business goals. Beyond decisions about individual products and services, the product strategy also requires product line decisions.
Distribution, promotion, and pricing strategies depend very heavily upon what the product is, its attributes, and its function. Product line pricing is generally used by companies and retailers in order to separate goods and services into cost categories in order to create various perceived quality levels in the minds of consumers. Any sales after this point represent profit for the company. This equation is also known as product line length. Thus, taking the above example, if there are 4 product lines within the company, and 10 products within each product line, than the product line width is 4 only.
Its entitled the profound impact of product line strategies. Product line length number of items in the product line twoway downward upward filling lengthen within current range. Product line management is fundamental to the new it operating model. A group of individual products that are closely related in some way. A software product line is a set of software products that share a common set of features. Line stretching is an expanding strategy by a company where the new products are launched in the same product line but beyond the current product range with some additional or different features. The process of this thesis will start by a brief definition of product life cycle and used strategies in each stage of the cycling. Product mix and product line understanding product. Product lines are created by companies as a marketing strategy to capture the sales of consumers who are already buying the brand. 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. Determining whether to create, expand or retire product lines is part of the overall product line strategy. Serviceline strategies for us hospitals all signs point to a more specialized future for us hospitals. Jan 17, 2017 it addressed the need to move air to enhance the environmenta hunter fan brand proposition, confirmed by research and accepted by home depot. This happens to most product forms and brands at a certain moment.
Line stretching can be done down market, up market or both ways. Pdf linking product line strategies to competitive advantage. A productproduct is anything that can be offered to a market for. Product line strategy in this case study sawtooth technologies conducted research into consumer preferences regarding mortgage product lines, modeled preferences for client and competitive products, and recommended an unexpected product strategy. Dec 03, 2019 to learn how to gain from smart product line strategies which include multigenerational product plans, please consider reading my book. Sep 27, 2018 7 steps to develop a product strategy how to develop a product strategy. Product line is too short if profits can be increased by adding items to product line. This close relationship comes from several product attributes. Pdf purposethis study examines the relationships between product line strategies and competitive advantage in nigerian foods and. Porter winners inbusiness playroughand dontapologize forit. Most of these strategies involve a change in the product mix. Ch8 managing products, product lines, brands, packaging.
The development of the term constituted a step forward in the classification of interrelated marketing efforts. The product based strategy is a bruteforce approach. Normally any strategic process has three distinct stages which are analy. This was a new product line as it catered to a different group, different need and also required different channels of distribution. When selling a product with a positive contribution margin there is a point at which revenue is equal to expenses this is the breakeven point. Dealing with product line strategies is nevertheless one of the most important areas in market strategy. An effective product line pricing involves having adequate price gaps between categories and items to inform possible buyers of difference in quality that exists. If a company launches a product, then it has a vision of where the product will reach. Software product lines challenge traditional analysis techniques, such as type checking, testing, and formal veri cation, in their quest of ensuring correctness and reliability of software. Line stretching a company stretches its product line beyond the current range of products. The total assortment of products and services marketed by a firm. A product strategy template is similar to a roadmap which has all destinations earmarked. Push or pull strategies push strategies producers use sales promotions to push products through the food distribution channel uses tradeoriented promotions negotiation with retailers to stock your product point of sale displays pull strategies aim to induce consumers to purchase and request more.
They oversee the product line s full lifecycle, continually shifting funding and resources when the product line s strategy and investment roadmap change. A product line is a group of products that are closely related manufactured by a single company. Thefivegeneric competitive strategies whichonetoemploy. A product line extension is any new product brought to market that is in the same product category that the firm already produces and markets.
A product line is a group of related products under a single brand sold by the same company. Finally, product life cycle strategies for the decline stage must be chosen. Product mix pricing strategies in marketing study lecture notes. Communication strategies and product line design marketing. By roman pichler read all of roman pichlers articles. Project report marketing management product strategy of coca cola. Again if we use the apple example above, in the mobile phone market apple only offers smart phones of high quality. Product line strategies help the company determine which items to produce and how they should be marketed. A distribution strategy is a plan to reach customers with goods and services. Stretching the product line the marketing study guide. Product mix pricing strategies x involve adjusting prices to maximize the profitability for a group of products rather than for just one item.
The new design was a proquality, portable contractor fan for use on construction sites in hot, humid conditions. The remainder of this survey is structured as follows. The product strategy is the bare bone planning of the steps to ensure the product reaches the desired space. Pdf on jan 1, 1976, jerry wind and others published planning product line strategy. Companys objectives also influence product line length. A lot of product analysis is needed to develop a strategy. Product line decisions building a strong product line. Companies sell multiple product lines under their various brands. Product line is too long if profit can be reduced by dropping items from product line. Product line strategy greatly improving strategies and. This may affect the product line design in general, and which products or services are offered in particular. This may affect the product line design in general, and which products.
Items within a product line generally share the same basic theme, and with the help of a successful marketing plan these products can be. A matrix approach find, read and cite all the research. Feb 19, 2016 this was a new product line as it catered to a different group, different need and also required different channels of distribution. Thus, the company has witnessed consistent aboveaverage market growth in the year 2016 and is a strong global contender. A product strategy is the foundation of a product life cycle and the execution plan for further development.
The decline stage is the stage in which the products sales decline. A product line is a group of items manufactured by a company which are similar or related. Such a strategy helps in setting the right direction for the product. Think about bicycles, you know, the 200 series, the 300 series, the 400 series, etc. Elements of an effective product strategy roman pichler. A product line extension is when a company creates a new product in the same product line of an existing brand. Product characteristics and marketing strategy 19 the term marketing mix suggests a relationship between interacting, elements. Sutaria july 2008 for us hospitals battered by competition, trying to be all things to all patients is no longer a viable strategy. Conceptually, the three strategies of product line verication have different strengths and weaknesses. Paul oconnors new book for 2018, the profound impact of product line strategy, talks straight about how to turn poor product lines into great ones and start superb new product line strategies from scratch. A product line strategy is a coherent approach that focuses work and decisions across related products. Mar 14, 2020 the width of the product mix is equal to the number of product lines within a company.
The product development strategy is typically set by the head of product. Thus, product line width is a depiction of the number of product lines which a company has. There are five common product line pricing strategies captive pricing, leader pricing, bait pricing, price lining, and price bundling. Guidelines for developing a product line production plan. Besides product, you need to analyze your competitors, the market and various segments so that you can come up with the right product strategy.
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