Product
Line
A product line can be thought of as a brand. In other
words, it is a collection of products grouped together and sold by a company. Companies will
utilize different product lines for different purposes. For example, a company might sell
different product lines in different regions or at different price points.
Product Mix
A product mix or assortment
is the grouping of all product lines sold by a company. These can be understood according to
four dimensions:
- Width €“ The number of product lines a company
sells. - Length €“ The total number of products a company sells.
- Depth €“ The measure of variations among all products a company sells.
- Consistency €“ The measure of how closely related a companys product lines are to each
other in terms of use, production, and distribution.
Product Extension
A product
extension is the method a company uses when new products are added to an existing product line
or brand (think of all of the variations on Coke that Coca-Cola has implemented). This strategy
helps bring variety to a product line and attracts new customers.
Product Filling
A product filling is
the extension of the number of products to meet demand. This is not the addition of new products
(like a product extension is), but rather the increase in the amount of a particular product
sold in order to adjust for demand. This could be based on sales trends (a particular product
selling better or worse) or seasonal offerings.
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