Product Line
Candlefocus EditorProduct lines help businesses to increase sales and profits as customers are more likely to purchase items from brands they already know and trust. It is also easier to roll out new products within the same product line as the brand awareness is already established. Therefore, firms can expect to see a higher return on their investments when launching new products.
Businesses may expand their offerings by adding to existing product lines or launching entirely new product lines to capture market share in a new market or promote a new product. Because of the cost associated with product line relaunches, businesses will often retire or abandon product lines if they become unprofitable. This is especially true if they become “loss leaders” and cannot be profitable.
Customer engagement is another important factor when it comes to product lines. Customers can be more likely to engage with product lines that concentrate on the same subject matter. For example, a company may launch product lines related to outdoor recreation, kitchenware, baby gear, or fashion accessories. By providing customers with multiple product lines, businesses can create a more interactive shopping experience and can engage customers in multiple ways.
Finally, the collection of all product lines comprises a company's product mix or portfolio of product lines. Analyzing the various product lines within a product mix can give companies insight into what customers may want and how to better target their customers. This can help companies determine which product lines are more suitable for their customers and should be continued or expanded, and which product lines should be retired or discontinued.
In summary, product lines are becoming increasingly important for businesses wishing to maximize their return on investments. By offering their customers product lines that are differentiated by country, price, niche, quality, or target demographic, businesses can create a more engaging customer experience while maximizing their profits. Analyzing the product mix of all available product lines can help businesses determine which product lines should be continued, developing, or retired, to maximize profits and better serve their customer base.