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The product line refers to groups of products that are related in function, sold to the same customer groups, similarly marketed, and fall within the same price range. The product mix is the set of overall product lines and items a retail store will be offering to its customers.
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Strategies set around the product line are to
- narrow the product line and focus on higher levels of service
- offer specialty products
- offer individualized attention to customer needs
- widen the product line to try to bring in more diverse customers
Product strategies can lead to scrambled merchandising, where items are brought in that are not within the normal product line in order to increase profits via cross-selling. This can be done on a store basis, such as a drug store carrying various grocery items, or even specific locations within a store, such as a grocery store selling batteries halfway down a row of canned goods. Another product strategy is to offer various sampling or product demonstrations. This can be particularly effective when a company is changing its product mix in some way. It is a method used to introduce the customer to new products.
The product has a significant effect on the brand of the company. A company manages its brand very carefully. It must know the brand’s positioning in the mind of its target consumer. From there, the product must be designed to always exemplify that positioning. A company must pay particular attention to its brand when releasing new products to be sure the new products work to strengthen the existing brand equity.
The product has a significant effect on the brand of the company. A company manages its brand very carefully. It must know the brand’s positioning in the mind of its target consumer. From there, the product must be designed to always exemplify that positioning. A company must pay particular attention to its brand when releasing new products to be sure the new products work to strengthen the existing brand equity.
To help further explain what branding is and to see an example of branding, click on “Nurture - Nike Case Study” to view a short informative video.
Reflective Journal:
Open a Google Document and report on the strategies set around the product line.
Open a Google Document and report on the strategies set around the product line.
- During your shopping field trip, take a good look at the various product choices available. Look at the different features, the different colours, the different packaging, and quantities.
Ask yourself why companies came out with these various products.
For whom are they creating these products?
What needs are they trying to fill in the market?