Product Line Example
Please tell me the example of product line, product mix, product extension and product filling of the particular company.
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.
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.
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.
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.
In any given company, a product line refers to a variety of different products that are related and grouped together by the same company. Product lines are used as a means to enlarge the consumer base by appealing to consumer demand through the introduction of a diverse range of products. For example, a consumer may not like Starbucks coffee, but maybe they will like Starbucks ice cream. Both products are grouped under the Starbucks product line, so Starbucks profits from the sale of both. More broadly, a product mix refers to the total number of product lines that a company owns. This includes the width, length, depth, and consistency of the company's product mix. Width is the total number of product lines a company owns, length is the total number of products, depth is the total number of alternate versions of the product, and consistency is the degree of similarity between each product line in relation to each other. An example of product mix would be Starbucks's inclusion of both whole bean and dark roast coffee. In contrast, product extension simply refers to the expansion of the product line to include product alterations that meet market demand. This extension could include introducing lower-priced products (down-market), higher-priced products (up-market), or both (two-way). Starbucks would be an "up-market" stretch. Finally, product filling refers to the increase in the number of products within a given product line in order to meet market demand. An example would be Starbucks introducing Pumpkin Spice Lattes in order to meet seasonal demands.
Product line, product mix, and product line extensions are terms frequently used to refers to different aspects of the range of products offered for sale by a company. I am not aware of a term like "product filling" associated with this. Also it appears the term product extension in the question refers to product line extension. I have explained below each of the three commonly used terms.
Product mix, also called product assortment is the term with the most wide coverage. It includes all the products that are sold by a company. Some company may have just a few or even only one product in its product mix. For example a cement plant may sell just one type of cement. Other companies, such as a large chain of retail stores may contain tens or even hundreds of thousands of products in its product mix.
All the products sold by a multi-product company at times can be classified in broad categories which are called product lines. The most common example is the different product lines that are usually sold by large retail companies like Wal-Mart. Typical descriptions of product lines used in retail industry include apparel, green grocery, dry grocery, household appliances, personal care items, and so on. A company may have just one product line in its product mix, Alternatively it can also have multiple product lines. For example, we have retailers that specialize in only one line such watches, and white goods. WE also have store that sell from the same retail outlet both these lines of product, plus many more lines.
Product line extension:
Product line is a relative terms. It refers to addition of items to a product line beyond the previously sold items in the the line. For example, a company selling cosmetic products selling just one variety of cold cream, may decide to extend the cosmetic product line by adding two new varieties of cold cream that are meant to be used by people with extra dry and extra oily skin.