Product range management
The product range contains all the products that a company offers. Mostly, this consists in more product lines, with similar characteristics.The product line is a group of homogeneous products, strongly interconnected because they function in similar ways, are sold to the same clients category, are distributed through the same channel and are in the same price range.
The item is the basic unit of the product line depending on the size, model, color. Inside a product line there are several item lines.
The item line is defined by its size, depending on the number of products existing inside the line.
Strategies for expanding the product line
These strategies focus on two variables, quality and price, so we can identify 3 strategies:
- Downstream expansion strategy – when the company decides to offer products of a lower quality than those provided until now. It also implies a lower price.
- Upstream expansion strategy – the company offers higher quality products, at higher prices.
- Both sides expansion strategy – the company approaches simultaneously the two strategies mentioned above.
The product range is usually defined by two indicators:
- Product range dimension:
- range width = the number of existing product lines
- range length = the total number of items
- Range uniformity – consists in similarities between product lines regarding the satisfied needs, manufacturing technologies, distribution channels.