What is Product Range ?
A product range refers to a collection of different versions of a single product, each tailored to appeal to distinct market segments. These variations aim to maximize sales and broaden the customer base by offering a range of choices.
The product range should have an efficient and smooth flow from low-end to high-end. The customer should be able to see all products in the range and understand which one suits them best.
It may be challenging for a company to decide on the best product range for their business model and target market, especially when they have more than one type of customer.
Why a Product Range is Crucial for Business Growth?
Most companies begin with a flagship product that propels their business and establishes brand recognition. However, as time goes on, the product's life cycle will run its course, leading to stagnant or declining sales.
Moreover, expansion is essential for sustained growth. While a single product can take your business to a certain level, further growth necessitates the introduction of additional products.
This is where having a product range becomes essential.
For businesses that have already established a niche in a particular product category, a product range represents a low-hanging fruit. Rather than creating entirely new products to attract more customers, you can develop variations of your existing product. It could be as simple as adding extra features to create a premium version.
Another advantage is the reduced need for extensive research and development. Your existing user data can provide valuable insights into which additional features, upgrades, or modifications are likely to generate the most interest. You also have an existing brand to work with, making tasks such as logo design and packaging creation more straightforward.
In summary, a product range can significantly expand the market for your core product, and it's relatively easy to determine which product variations will be the most successful when you're already collecting user data.
Comparing Product Range to Product Mix
Product range and product mix are two strategies for expanding reach and increasing sales, but they achieve this in distinct ways.
A product range involves creating variations of a single product, with each variation targeting a unique market segment.
On the other hand, a product mix comprises different products that are complementary and appeal to the same target market.
To illustrate, a product range consisting of 20 variations can attract 20 buyers, each purchasing a single product. In contrast, a product mix with four complementary products can attract five buyers, each purchasing all four products, resulting in a total of 20 sales.
Examples of Successful Product Ranges Numerous top-performing companies have leveraged product ranges to maximize their sales potential. These companies understand that while they may have a highly popular product, they can sell even more with slight variations.
Even a behemoth like Coca-Cola maintains a diverse product range. While their regular Coke remains wildly successful after more than 125 years, they have expanded their range to include:
- Diet Coke
- Coke Zero
- Coke Life
- Cherry Coke
- Vanilla Coke
- Orange Vanilla Coke
Coca-Cola also seizes special events to diversify its product range with limited-edition offerings like Coca-Cola Cinnamon, capitalizing on the holiday season.
Moreover, Coca-Cola offers merchandise adorned with its logo in its online shop and allows customers to purchase personalized bottles with their names, demonstrating their commitment to serving diverse markets.
Additionally, Coca-Cola has branched out beyond beverages, acquiring brands like GLACÉAU Smartwater and Vitaminwater, showcasing their expansion into different markets.
Johnson & Johnson Baby Shampoo
Johnson & Johnson, known for its extensive product portfolio, is most recognized today for its baby shampoo. Their baby product line originated in 1894, but it truly gained prominence with the introduction of "no more tears" shampoo in 1953.
Using this exceptionally popular product as a foundation, the company has developed a range of baby shampoos that includes:
- The original Baby Shampoo
- Head-to-Toe Wash & Shampoo
- Calming Shampoo
- Clean and Fresh Shampoo & Body Wash
This selection evolves over time as consumer preferences and needs change, illustrating how a product range can adapt to shifting consumer behaviors.
Despite the iPhone's status as one of the 21st century's most revolutionary inventions, there is still room for a product range. Initially, Apple released one iPhone model every year or two, relying on innovation and minimal competition.
However, in 2013, Apple introduced the iPhone 5S and iPhone 5C. The 5S boasted three metallic finishes, increased storage, and more features, while the cheaper 5C came in five vibrant colors, catering to diverse market segments.
Subsequently, in 2014, Apple unveiled the Plus version of the iPhone, featuring a larger screen and a higher price point to attract consumers seeking more screen real estate, competing effectively with sizable competitors like the Samsung Galaxy smartphone.
Today, Apple's iPhone lineup includes a Pro model and a Pro Max version with a larger screen, as well as six color choices for the regular iPhone 11.
Frequently Asked Questions For Product Range
What is product range analysis?
Product range analysis is the process of determining the product range of a product. It involves determining the number and types of products that a company has, their sizes and locations, and their prices and margins.
What are the types of product range?
The product range is the most crucial concept for product marketers. It defines what kind of products a company sells and how they are categorized.
There are two types of product range:
1. Product range with a single product and its price
2. Product range with multiple products with their prices
What is the benefit of the product range?
The product range is the part of a product that defines its features and benefits. It helps the customer to make an informed decision when buying a product.