What Is a Product Line?
Product Line refers to a group of related products that may have similar functions and are sold to the same customer group, through the same sales channel, or within the same price range. If you can determine the optimal length of the product line, you can bring the most profit to the company
product line
- Product Line refers to a group of related products that may have similar functions and are sold to the same customer group, through the same sales channel, or within the same price range. If you can determine the optimal length of the product line, you can bring the most profit to the company
- Product (combined) width
- Refers to the number of product lines owned. If a company has cleaners, toothpaste, bar soap, paper diapers, toilet paper, it has a width of 5.
- Product line length
- The number of product items in each product line is called the length of the product line. Of course, if a company has multiple product lines, the company can add the length of all product lines to get the total length of the company's product portfolio, divided by the width. You can get the company's average product line length.
- Product (combined) depth
- The number of varieties in each product is called the depth of the product portfolio, such as a brand
- Sales volume and profit analysis
- This analysis is important to determine the contribution of each item on the product line to total sales and profits. general
Increased product line length
- (1) Develop into the gap in the product project positioning chart. Increasing the number of items can be achieved by exploring unmet
- product line
- (2) Expand to the weak link in the product project positioning map. Look for competitors' unstable projects, then take the right solution and develop new projects.
Reduced product line length
- Sometimes shortening the length of the product line will increase the total profit of the product line. This is because reducing the projects that account for a small proportion of profit can save costs and focus on the advantages of developing projects that account for a large proportion of profits.
- The reduction of projects with low or loss of profit is to concentrate on operating good varieties with a high proportion of profits. The reduction of products that are inferior to competition is due to the fact that competitors have a great advantage in the same project, and the company's projects have continued to decline. But companies can't compete with them through their efforts. This can avoid unhelpful investment.