How do product lines increase your total business revenues?
One branding theory says the following fact: The branding trend is to reduce as much as you can the product ranges or product lines from your portfolio. Even it’s said that the best solution is to disband all the branded product lines and to follow the new success key: individual products.
We don’t believe in this theory.
Of course, product lines are not suitable for all types of businesses. But in some cases, having product ranges or collections can become a powerful strategy of increasing a lot your total revenues.
From this article you find out three important information:
- How product lines or ranges are able to increase your total business revenues
- For what type of brands product lines are suitable
- A concrete example of outstanding product lines strategy applied at Franke Group
How product lines or ranges are able to increase your total business revenues
- A collection may increase the individual package investment for each of your customers
Our life has moved on the “fast forward” button. We don’t have enough time to search for everything we need. Sometimes we know what we have to find but sometimes we don’t have enough patience to search for absolutely all the things we may need. That is why, promoting attractive packages of complementary products, is able to stimulate the interest of your customers. Without product lines, the standard customer will search and buy maybe one or two products. If you have some complementary products gathered in a product range, the customer can make an important choice: He is still able to buy a single product, but he has also the alternative to buy an entire package. If the second option becomes reality, bingo for you! The total invoice for a single customer will be at least doubled.
- A collection may increase the interest of the customers on other products from your portfolio
If your stock of products has one or two stars which are making a lot of sales and the other products have a low level of sales, for sure you have a problem. You have a lot of money blocked in the entire stock and the business development of the company is completely stucked or has a very low level. You may think that a discount policy may bring your expected results. Maybe it’s a good solution. On short term only. Also take into consideration that a product line may bring you another type of result, on long term. If a discount policy is able to get rid of the old stock, transforming your current stock into product ranges is able to increase your customers’ interest for many of your products. And who knows…? Maybe you will find your third “star” for your business.
- Product lines are able to attract a new audience for your products
An example? If you are selling fragrances for women but also for men and the men are not so interested in buying them, you may take into consideration a “His and Her” collection. For sure, this solution will bring an increase on your market share.
For what type of brands product lines are suitable
We can tell you that product lines are suitable in a lot of fields, but further on you will have a shortlist of the best areas where you can apply this strategy:
- Home appliances
- Consumer Goods
- Food & beverages
- Software products
Of course, launching some product line requires a special attention on the naming & branding process. The product lines must be treated as new entities, as sub-brands of the mother brand. The main logic in this process is the following: a product line must target a specific audience. If this doesn't happen, it’s completely useless. If you need more specific details on this case, you may contact us.
A concrete example of outstanding product lines strategy applied at Franke Group
Franke Group is the world leader provider of products and solutions for kitchens and bathrooms, professional foodservice and coffee preparation.
The “star” of the company is the Residential Kitchens field.
Basically, Franke produces all the types of home appliances you may need for your kitchen. Most of their competitors are promoting their products in an individually way. If you want to buy all your kitchen’s appliances you have to buy one by one a fridge, an oven, a hood and so on. If you have some design inspiration, you’re lucky. Because you will make the best choices. But if you are not so inspired, I’m sorry for you.
And that’s exactly the problem solved by Franke. Recently, they have launched four collections of complete kitchen appliances systems. Let's see how they look, how they are named and what their messages are:
Crystal Collection – Let it shine!
(Stylish, Cosmopolitan, Modern)
Mythos – The Art of Contemporary Cooking
(Artistic, Creative, For Cooking Enthusiasts)
Maris – We are a Family
(Experience, Family, Fun Together)
Frames by Franke – Dream Kitchen
(High Class, Outstanding, Flagship of the brand)
Franke Group has managed to increase a lot of their total revenues by creating this types of lines. They are still selling individual products, but they also sell these collections as special entities.
We are very glad that we were part of their branding process because we had the chance to work with Franke in Europe on branding projects.
If you need more information about creating product lines or you need our help in this case, just drop us a line! Let’s increase together your total revenues and create an outstanding brand architecture in the same time!
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