UNIVERSITY OF CAGAYAN VALLEY
(Formerly Cagayan Colleges Tuguegarao)
Tuguegarao City, Cagayan, Philippines
SCHOOL OF BUSINESS ADMINISTRATION AND GOVERNANCE
Name: ______________________________________Year/Section: _____________
Subject: ______________________________________Teacher_________________
Module No. 3
Title CHAPTER III: Product Range Analysis
Overview The subject PRODUCT MANAGEMENT will provide the student
with a general overview about the role played by the product and
the product range in the marketing strategy and operational
scenarios.
The course is divided in 5 parts: A general overview about the
today`s product concept, including product classifications,
branding and positioning
Second part bring us to the main tools for product range analysis:
Information sources, main ratios, strategic and operative matrixes
and product life cycle.
At the third step, new product launch is covered. Including the
most used programs to secure the success of the product
launching plan.
Finally, we devote some the last part of the module, to study the
peculiarities of the services. What they have in common with the
tangibles and the main differences
With this program the student will go across all relevant items on
product policy, from the very simple concept, such as the product
as it is in today´s business, to the more complex developments
as the new products launch and development.
Product will be linked with all marketing variables in order to give
the students a whole view of today´s competitive markets
Learning By the end of the course, the student should be able to:
Outcomes
1. Obtain knowledge on product range definition, dimensions and
its role to making an effective marketing strategy.
2. Discuss Large versus short product range
3. Determine Roles on the product lines
Learning
Objectives Upon the conclusion of this course, the students will be able to
Use a decision-making process to make marketing
decisions.
Develop and evaluate a product range analysis
Evaluate the difference of Large versus short product
range
Analyze the different Roles on the product lines
Revision No. Details Organizer Reviewer Approving Date Page No.
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UNIVERSITY OF CAGAYAN VALLEY
(Formerly Cagayan Colleges Tuguegarao)
Tuguegarao City, Cagayan, Philippines
SCHOOL OF BUSINESS ADMINISTRATION AND GOVERNANCE
Apply concepts into real life situations of product
management.
INTRODUCTION
The success of product marketing in any business, small or large, is a direct result of
having a satisfying array of products. Companies create and market these products
to customers of varying ages, incomes, purchasing behavior and product likes and
dislikes. Making sure the product range is right is a top priority for companies. Even
companies as large as Coca-Cola continually assess their product marketing strategy
to drive more growth
Understanding the Product Range
A product range (or product line) is a group of products (mobile phones, laptops,
microwaves, etc.) that have these similar characteristics:
are closely related in form and/or function
are similarly priced
are marketed and sold through similar customer groups
When a company develops a strong core product range, the product range allows
the company to focus on those product lines while still offering enough variety in
size, color, taste or functionality to appeal to a wide range of potential customers.
Advantages of Product Range
When companies roll out a product range, they are seeking to attract customers in a
certain demographic, with common aspirations, income and purchasing behavior
patterns. For example, a company may offer an excellent shampoo, like these on
display at Matrix, and then develop alterations to the original formula for common
audience targets.
Companies may also opt to create a product line extension from its product range,
notes The Marketing Study Guide. A popular soft drink may opt to add in hints of
pumpkin and cinnamon to capitalize on fall-winter taste themes. This has already
happened in coffees and alcoholic beers.
Product Range
A product range refers to variations of a single product that are made in order to
create similar yet distinctly different products. Each version of the product is
designed to attract a different market segment with the intention of maximizing
sales and building the customer base.
How a Product Range Benefits a Business
Many companies have a flagship product that helps launch the business and build
brand awareness. But the product lifecycle will eventually run its course, and sales
will either level out or drop off.
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UNIVERSITY OF CAGAYAN VALLEY
(Formerly Cagayan Colleges Tuguegarao)
Tuguegarao City, Cagayan, Philippines
SCHOOL OF BUSINESS ADMINISTRATION AND GOVERNANCE
There’s also the matter of expansion. A single product will grow your business to a
certain level, but more products are needed to continue the growth.
That’s why having a product range is important.
A product range is relatively low-hanging fruit for a business that’s already carved
out a niche for a specific type of product. Instead of creating something entirely new
to attract more customers you just have to come up with variations of your existing
product. It could be as simple as adding additional features to create a premium
version.
Another benefit is you don’t have to invest as much in research and development.
Your existing user behavior data can provide insight into which additional features,
upgrades or changes are likely to generate the most interest. You also already have
a brand to work with so things like logos and packaging are easier to create.
In short, having a product range can significantly expand the market of a core
product, and it’s easy to discover which product variations will be the most
successful if you’re already collecting user data.
How Product Range Compares to Product Mix
A product range and a product mix are two strategies for expanding reach and sales,
but they do so in different ways.
A product range is a variation on one product with each variation designed to
appeal to a unique market segment.
A product mix is different products that are complementary and appeal to the
same target market.
You can think of it this way. A product range of 20 products can attract 20 buyers
that each purchase a single product, whereas a product mix of 4 products can
attract 5 buyers that purchase all four products for a total of 20 sales.
Product Range Examples
Examples of a product range can include a peanut butter maker, offering its peanut
butter in a variety of similarly priced versions of crunchy, creamy, and no added
sugar peanut butter. A television manufacturer might offer its TV components in a
basic 32-inch version, then offer increasingly larger versions for more demanding
consumers. At its top end it might offer a 4K version of its TV technology. The
products may have more features in each of the larger sizes, but the core TV
product remains the same.
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UNIVERSITY OF CAGAYAN VALLEY
(Formerly Cagayan Colleges Tuguegarao)
Tuguegarao City, Cagayan, Philippines
SCHOOL OF BUSINESS ADMINISTRATION AND GOVERNANCE
There are many examples of product ranges from top-performing companies. These
companies understand that they have a product that’s highly popular, but they can
sell even more with a little variation.
Coca-Cola
Even a business as large and successful as Coca-Cola has a product range. Their
flagship product, regular Coke, is wildly successful and has been for over 125 years.
But they’ve expanded with a product range that includes:
Diet Coke
Coke Zero
Coke Life
Cherry Coke
Vanilla Coke
Orange Vanilla Coke
Coca-Cola even takes advantage of special events to expand their product range
with limited production products. For the holidays they’ve created Coca-Cola
Cinnamon. The company’s marketing says the “festive new flavor is the perfect way
to spice up the season.”
But Coca-Cola products go well beyond beverages these days with a healthy product
mix. They have a whole range of merchandise emblazoned with their logo in the
Coca-Cola online shop. They also give customers the ability to purchase customized
bottles with a person’s name in place of the Coca-Cola logo.
And did you know Coca-Cola also now owns GLACÉAU Smartwater and
Vitaminwater? Those aren’t part of the branded Coca-Cola product range but it’s an
example of how the company is expanding to serve more markets.
Johnson & Johnson Baby Shampoo
Johnson & Johnson has one of the largest product mixes in the world. But the
product they are probably best known for today is baby shampoo. The J&J baby
product line started way back in 1894, but when they introduced the “no more
tears” shampoo in 1953 it was a clear winner.
The company has taken that one extremely popular product and created a range of
shampoos for babies that includes:
The original Baby Shampoo
Head-to-Toe Wash & Shampoo
Calming Shampoo
Revision No. Details Organizer Reviewer Approving Date Page No.
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UNIVERSITY OF CAGAYAN VALLEY
(Formerly Cagayan Colleges Tuguegarao)
Tuguegarao City, Cagayan, Philippines
SCHOOL OF BUSINESS ADMINISTRATION AND GOVERNANCE
Clean and Fresh Shampoo & Body Wash
Of course, this is just the current selection. Over the years Johnson & Johnson has
relaunched their baby shampoo line. The original is always available, but the
company uses feedback from mothers to develop new products based on the most
recent needs and concerns. It’s a great example of how a product range can change
over time as consumer behaviors and desires change.
Apple iPhone
The iPhone may be the biggest invention of the 21st Century, but that doesn’t mean
there isn’t room for a product range. To begin with, Apple released just one iPhone
model every year or two. It was so innovative and there was such a lack of
competition that Apple didn’t need other versions to attract different market
segments other than adding two different finishes in 2008.
All that changed in 2013. That year Apple released the iPhone 5S and iPhone 5C.
The 5S had three metallic finishes, greater storage and more features compared to
the cheaper 5C that came in five vibrant colors.
Then in 2014, Apple introduced the Plus version of the iPhone. It had a notably
larger screen than the regular iPhone and a bigger price tag. But the Plus was able
to attract the market segment that wanted more screen space and could compete
with competitors like the sizeable Samsung Galaxy smartphone.
The latest round of iPhones now includes a Pro model and a Pro Max version with a
larger screen. Another addition is six color choices for the regular iPhone 11.
Conclusion
Creating one amazing product is just the start. Finding ways to expand the product
with variations can help you capture an even larger market share and attract new
customers. Once you have a successful product the next step is to begin building a
product range that will maximize profitability.
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