The product range
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.
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
These strategies focus on two
variables, quality and price
, so we can identify 3 strategies:
Product range characteristics
- 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
- 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.