What is ‘product’
A product family is a group of related products manufactured by one company. Companies benefit from creating product families, as they can use their existing customer loyalty to an existing product to get them to buy additional, related products. Family of products also enable companies to attract new customers to their brand, providing a full range of products that are similar but meet slightly different needs. Customers benefit from product families, because they can rely on their positive experience with an existing brand when choosing a new product.
Breaking down the ‘product’
As an example of the power product family, the gardener backyard could be using the same pesticides for many years to control caterpillars, which try to eat your tomato plants. One year, he decides to try growing sugar peas for the first time and learns that he needs a new product to control the disease, powdery mildew, which affects their culture. Company that produces caterpillar pesticides and a whole family of products to help the home gardener to successfully grow a variety of crops, so when the gardener goes to the store to buy groceries for his new challenge he’s looking for one of the same brand, which he already uses. The gardener can shop quickly and get peace of mind when buying from the product family they already have experience with, and the company’s product gardening gets additional business from existing customers.
The product family includes products in various sizes, types, colors, qualities and prices. The product family also can generate a collection of sub-categories of products. The “match line“ refers to how closely related the products that make up a product family (or string). Vulnerability refers to the percentage of sales or profits from multiple products of a product family.
Product family and product packages
Product options includes offering a range of products as one combined item at a special promotional price, which is intended to create differentiation and greater value. On the contrary, family, product strategy focuses on the sale of a collection of related products individually. Products in family product comes in various sizes, colors, qualities and prices. For example, various coffees offered in the cafe, is one of a family of products and it may consist of a flat white, cappuccino, short black, latte, mocha, etc. in addition, family product juices, pastries and sandwiches can also be found in cafes. The benefits of having a successful line of products not only sales but also brand loyalty from customers, which is earned through consistent create a satisfactory customer service. Successful product family increases the probability of customers purchasing new products from the company that helps build the most important result.