Product range

From CEOpedia | Management online

A product range is the set of all types and kinds of products offered to customers by the company or any of its units. It can also be understood as a set of products offered by the entire industry. This range can be more or less specialized or generic. It is described by width, length, depth and consistency (described below in detail). Range of offered products should correspond to the expectations of target market of the company.

Product range impact on company success

A product range is important for a company for several reasons:

  • Revenue: A wide, long, deep, and consistent product range can increase a company's revenue by providing customers with a wide variety of products to choose from, making it more likely that they will find something they like and want to purchase.
  • Competitive advantage: A well-designed product range can give a company a competitive advantage over its rivals by meeting the specific needs and preferences of its target market.
  • Brand image: A consistent product range can help establish and maintain a company's brand image by providing customers with a clear idea of what the company stands for and what they can expect when purchasing its products.
  • Customer base: A wide, long, deep, and consistent product range can attract a larger customer base by providing a diverse selection of products that appeal to a wide range of customers.
  • Risk management: Having a diversified product range can help a company spread its risk across different product lines, which can mitigate the impact of any downturns in a particular product line.
  • Market positioning: A company's product range is a key factor in its market positioning. A company that has a wide, long, deep and consistent product range will be able to position itself as a one-stop-shop or as a specialist in a particular niche.

Overall, a company's product range is an important aspect of its overall business strategy, and can have a significant impact on its competitiveness and profitability.

Product range width

Product range width refers to the number of different product lines or categories that a company offers. A company with a wide product range offers a diverse selection of products, which can attract a larger customer base and increase revenue.

For example, a department store would have a wide product range as they offer a variety of products such as clothing, electronics, home goods, toys, and more. On the other hand, a specialty store that only sells one type of product such as clothing or electronics would have a narrow product range.

Another example is a fast food chain that offers a wide product range by having multiple items on the menu such as burgers, chicken, sandwiches, salads and deserts.

A company that sells multiple brands or product lines also has a wide product range. For example, a company that sells various car brands such as Mercedes-Benz, BMW and Toyota would have a wide product range.

A wide product range means that a company offers a diverse selection of products across multiple lines or categories, which can help increase revenue and attract a larger customer base.

Product range length

Product range length refers to the number of products within each product line or category. A company with a long product range offers a wide variety of products within each product line, which can attract a larger customer base and increase revenue.

For example, a clothing store that offers a wide range of sizes, styles, and colors for each item of clothing would have a long product range. This allows customers to find a wide variety of options within each product line, making it more likely that they will find something they like. On the other hand, a clothing store that only offers a limited selection of sizes, styles, and colors would have a short product range.

Another example is a company that manufactures and sells different types of electronic gadgets. A company that offers a wide range of smartphones, laptops, tablets, and smartwatches would have a long product range within the electronic gadgets category.

A long product range means that a company offers a wide variety of products within each product line or category, which can help increase revenue and attract a larger customer base by providing more options to choose from.

Product range depth

Product range depth refers to the number of variations or options available within each product. A company with a deep product range offers a wide variety of options for each product, which can attract a larger customer base and increase revenue.

For example, a car manufacturer that offers different trim levels and options such as different engines, transmissions, and features for each model would have a deep product range. This allows customers to choose from a wide variety of options within each product, making it more likely that they will find a car that meets their specific needs and preferences.

Another example is a company that sells kitchen appliances. A company that offers a wide variety of models of refrigerators, such as French door, side-by-side, and top-freezer models with different sizes, colors, and features would have a deep product range.

A deep product range means that a company offers a wide variety of options within each product line, which can help increase revenue and attract a larger customer base by providing customers with more choices and meeting their specific needs and preferences.

Product range consistency

Product range consistency refers to how well the products within a product range complement each other and align with the company's overall brand and image. A company with a consistent product range will have products that are easily recognizable as belonging to that company, and that complement each other in terms of style, quality, and pricing.

For example, a luxury fashion brand that consistently offers high-end, designer clothing and accessories would have a consistent product range. The products within the range complement each other in terms of style and quality, and are easily recognizable as belonging to that brand.

Another example is a company that sells outdoor gear and equipment. A company that offers a consistent product range of high-quality, durable and functional outdoor gear such as camping equipment, backpacks, and outdoor clothing that are designed to withstand the rigors of outdoor use would have a consistent product range.

A consistent product range means that the products within a product range complement each other in terms of style, quality, and pricing and align with the company's overall brand and image, this can help increase revenue and attract a larger customer base by providing a clear image of what the company stands for and what customers can expect when buying its products.


Product range — recommended articles
Product line pricing — Convenience product — Scrambled merchandising — Brand — Substitute goods — Market niche strategy — Customary pricing — Core product — Competition-based pricing

References

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