Product Line decision

“ A group of products that are closely related because they function in a similar manner are sold to the same customer groups, are marked through the same types of outlets, or fall within given price range”.

For example :- Nike products several lines of athletic shoes, Motorola products several lines of telecommunications products and AT&T offers several lines of long distance telephone services.

A major product line decision involves product line length.

  • The number of items in the product line.

  • The line is too short if the manager can increase profits by adding items.

  • The line is too long if the manager can increase profits by dropping items.

Product line length is influenced by company objectives and resources.