Product line and product mix are two terms that are often used interchangeably, but they actually refer to two different things. A product line is a group of products that are all similar, while a product mix is a combination of products that are different. So, what’s the difference between the two?
A product line is a group of products that are all similar. They may be different sizes, colors, or styles, but they all serve the same purpose. For example, a clothing company may have a product line of t-shirts. Each t-shirt may be different, but they’re all t-shirts.
A product mix, on the other hand, is a combination of products that are different. For example, a grocery store offers a mix of products, including food, cleaning supplies, and health and beauty products. A clothing store may offer a mix of products, including shirts, pants, and dresses.
What is a product mix?
Every product that a company creates and sells is included in the product mix. There are four dimensions—width, length, depth, and consistency—within a product mix. Here is a brief description of each dimension:
What is a product line?
A product line is a collection of related goods produced and marketed by the same business. Due to their financial resources and comprehension of their customers’ needs, many larger and more established companies have multiple product lines, while newer companies typically have fewer.
Businesses classify products into product lines based on attributes like functionality and price range. For instance, a company selling nail care products may have two product lines: one selling various shades of nail polish, and the other selling various kinds of nail polish removers. The nail polishes belong to the same product line because they serve the same purpose. The polish and polish remover are in different product lines because they are not used for the same purpose.
Product line vs. product mix
Product line and product mix have some similar characteristics. Both involve products that a business produces and sells to customers. Additionally, a business must first have product lines in order to have a product mix. In contrast, there are a few significant distinctions to be aware of when comparing product lines vs product mixes:
Definition
A product mix is the total sales of all the product lines that a company sells, as opposed to a product line, which is a line of comparable goods. Depending on the variety of products they sell and the level of financial support they have, some companies have many product lines and very large product mixes, while others are much smaller.
Factors
Price range, functionality, target market, and brand are some of the elements that influence a company’s product line. One product line may contain goods with a similar price range, while another may contain goods with a completely different function and target market.
Age, financial standing, and brand identity of the company are some variables that affect the product mix. A more established company is more likely to have a higher product mix than one that has only recently opened because it already has a strong brand, a customer base that purchases its products, and knowledge of the products that are most effective for their business.
Cross-selling
Selling products that are related to or may be useful to a customer who is already purchasing another product is known as cross-selling. When a company sells to customers, cross-selling is probably used more frequently within the company’s product mix.
For instance, a company selling technology products might have a number of product lines and be able to cross-sell between them. Customers might want to buy a laptop case along with their laptops, so the tech industry can advise a business buying laptops from them to also buy a variety of laptop cases. There would be less cross-selling because the products would be so similar if a retailer bought laptops from a business that only sold laptops.
Why is understanding product line and product mix important?
Understanding the differences between product lines and product mixes can help your company make decisions about how many product lines might be advantageous for it and which ones are most likely to appeal to its core clientele. Here are some justifications for why it’s crucial to comprehend product line and product mix:
Inventory management
It is simpler to offer customers the best product mix when you are aware of which products from the product mix are best-sellers and which are less well-liked. Product line managers can use data analysis to identify which products they should think about removing from the line to make room for those that customers are more likely to buy in greater quantities.
Company image
The marketing strategy used by a company affects how a brand is perceived. Adding a product geared toward a male audience may change the brand’s image, which could confuse current customers if the products in your mix typically target female consumers between the ages of 20 and 40. An organization can maintain consistency with the products in their mix by understanding the mix of their brand. This gives them the chance to launch goods that will complement the brand associated with their core clientele.
Product focus
Businesses occasionally consider expanding their product lines or developing entirely new product categories. Knowing which products your core customers buy from your product mix can help you determine whether adding a new product would be financially advantageous for your company.
Example of product line and product mix
Here is an illustration of how a product line and product mix might appear in a well-established business:
What is a product mix? Understand Product lines, Product mix length, Product mix depth, etc
FAQ
What is a product line example?
A company usually sells different types of products. Coca-Cola, as an illustration, has about 3500 product brands in its portfolio. These different product brands are also known as product lines. The product mix consists of a combination of all these product lines.
Is product line a part of product mix?
Product Lines Examples The company’s product lines include clothing, footwear, and equipment. Frito Lay, Gatorade, Quaker Oats, and Tropicana are just a few of the international brands owned by PepsiCo (PEP). 1. Coffee, ice cream, and drinkware are just a few of Starbucks Corporation’s (SBUX) numerous product lines.
What is the difference between a product line and a product mix quizlet?
The full range of goods and/or services that a company offers is referred to as product mix, also known as product assortment or product portfolio. Product lines, which are connected items that customers frequently use together or perceive as similar goods or services, make up a product mix.
