Some time nirma had only a single detergent brand and

some time, Nirma had only a single detergent brand and subsequently added a new
product line by introducing a bathing soap. HLL realized the serious threat from
Nirma washing powder and introduced cheaper versions of detergents.
Companies make decisions that concern either adding new items in existing
product lines, deleting products from existing product lines, or adding new product
lines. Another aspect relates to upgrading the existing technology either to reduce the
product costs or to improve quality, for stretching (downwards, upwards, or both
ways), or line filling.
Product managers need to closely examine the sales and profits of each item in a
product line decisions. The findings will help them decide whether to build, maintain,
harvest, or divest different items in a particular product line decisions.
A product line is a group of products that are closely related because they
function in a similar manner, are sold to the same customer groups, are marketed
through the same types of outlet, or fall within given price ranges.
Diana’s perfume became so popular that she always running out of stock. To cope
with the excess demand, she later experiment with manufacturing and selling the first
five scents of fragrance that nobody had before such as violet, white, rose, lily, and
white musk. Manufacturing through the plant that she and her brother built enabled
her to fulfil at the quantity that required by the customers. She was a successful sales
lady in the town, pioneering the direct selling method of encouraging customers to
buy the products.
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Product Line Stretching
Product lines tend to lengthen over the years for different reasons such as excess
manufacturing capacity, new market opportunities, demand from sales force and
resellers for a richer product line to satisfy customers with varied preferences, and
competitive compulsions. Lengthening of lines raises costs in many areas and
decisions are based on a careful appraisal. However, at some point in time somebody,
often the top management intervenes and stops this.
i. Downward Line Stretch
Companies sometimes introduce new products with an objective of
communicating an image of technical excellence and high quality and locate at
the upper end of the market. Subsequently, the company might stretch
downwards due to competitor’s attack by introducing a low-end product in
response to a competitive attack, or a company may introduce a low-end
product to fill up a vacant slot that may seem attractive to a new competitor.
Another possibility is that market may become more attractive at low-end due
to faster growth rate. For example, P&G introduced its Ariel Microsystem
detergent at the high-end assuring high quality. Customer response was not
encouraging and the company saw more opportunities at a lower end and
introduced cheaper green alternative Ariel Super Soaker. Mercedes have
offered its E-Class model to compete at much lower price point than its high-
end S-Class models.