Posted in Marketing and Strategy Terms, Total Reads: 1000
Definition: Product Range
A company that has specialized in some set of products or services can provide with different variations of the products known as product range in order to appeal a large set of customers. Having a complete portfolio of products with enough variety in taste, size, colour or functionality will help the company attract different kind of customers and hence get a higher reach. There can be many reasons or situations in which company would like to expand its product line.
1) Product Life Cycle: In most cases, a product moves through four stages – Introduction, Maturity and Decline. When the product reached the maturity stage, company starts thinking about launching new variants to maintain the excitement among the customers or it will soon start to lose its customers to its competitors which have better functionalities.
2) New Market Opportunities: When there is an emerging opportunity in a market sector, a company will launch various product variants in order to match the customer needs.
3) Customer Needs: Introducing new products with emerging consumer needs. Getting customer insights and feedback through market research will help identifying those needs
4) Customer Loyalty: When a company wants to avoid the cost of acquiring new customers, it would launch new variants for the existing loyal customers.
For example: Apple launched various variants of iPod once it reached the Maturity stage to retain its loyal customers.