The Importance of Planning Product or Service Lines

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: What is a Marketing Plan? - Definition & Sample

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
Your next lesson will play in 10 seconds
  • 0:03 Product Lines
  • 1:08 Familiarity
  • 2:03 Brand Diversification…
  • 3:09 Creates Value
  • 4:13 Lesson Summary
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Speed Speed
Lesson Transcript
Instructor: LeRon Haire
In this lesson, we will define what a product/service line is, along with addressing the factors which make product/service lines so important and providing examples of several product lines.

Product Lines

Have you ever known of any business that has started on Day One as a complete success? Most businesses begin slowly, and the successful ones eventually grow and evolve into a successful venture. One of the primary factors related to the success, or lack thereof, of a business is product or service lines.

A product line is a set of related products which are sold to consumers under a sole name or brand. Organizations may have several product lines in an effort to reach many different consumers. Before we take a look at some of the reasons why product lines are important, let's take a glimpse at a few examples of well-known companies with multiple product lines:

  • Johnson & Johnson has baby products, mouthwash, band-aids, and lotion
  • Proctor & Gamble has paper towels, female hygiene products, shampoo, and laundry detergent
  • Kodak has cameras, projectors, printers, and software
  • Coca-Cola has soft drinks, water, clothing apparel, and tea

Now let's take a look at some of the factors which make product lines important, starting with familiarity.


One of the great things about businesses building strong reputations with the general public is that they have the opportunity to capitalize on those relationships. For example, let us assume that you have been a consumer of Johnson & Johnson's baby products for each of your two kids. You are now in the store and shopping for some typical household products. When you look on the store shelves, you realize that Johnson & Johnson is also responsible for mouthwash and lotion products as well.

Although you have previously always depended on another brand for these products, you decide to select the Johnson & Johnson products this time around because you are familiar and satisfied with the quality of their other products. Many businesses succeed with establishing additional product lines because of the prior success and popularity of their previous products. A good rule of thumb is that customers have a better chance of buying products from an organization or brand that they are familiar with.

Brand Diversification Through Market Penetration

The most successful businesses in the world are masters at penetrating the market. The phrase 'penetrating the market' simply means that businesses are attempting to increase the market share of their products through different strategies. One of those strategies is by having diversified, or different, products lines. For example, Coca-Cola established a very successful business by providing a cola soft drink beverage to consumers. However, at some point, Coca-Cola decided that it wanted to expand its empire by diversifying and entering markets other than the one that it had conquered.

To unlock this lesson you must be a Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use

Become a member and start learning now.
Become a Member  Back
What teachers are saying about
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account