Product -Lining

This installment of Marketing2015 will again focus around sports, but this time is about the sales and pricing strategies used by equipment manufactures. This strategy to which I am referring is the idea of “product-lining.” Firms in industries other than sporting goods and equipment employ this strategy as well, but product-lining is most prevalent and useful in those markets.

The idea behind releasing an entire product line makes sense in a sport such as hockey because many players have many different needs of their equipment depending on factors such as skill level, frequency of playing, and budget. The way that a company such as Bauer (considered by many the worlds foremost expert in hockey equipment) handles such a diversity of needs is to release a product line with multiple options rather than a single, “one-size-fits-all,” product. Currently Bauer has three major product lines Supreme, Vapor, and Nexus, which all are complete product lines in themselves that have differences between them in fit, function, and performance.

 Not only are there three product lines, but also there are generally about 7 products per item, per product line. What does that mean for producer and consumer? For the producer it means a great deal of market coverage and segmentation, reaching many different individuals from an NHL superstars like Ryan Kesler (face of the Nexus line) to the first timer just looking to play some pond hockey. Product lining also seems to be very conducive to high levels of brand loyalty and, more specifically, even product line loyalty. The expense of this is very high overhead costs for manufacturing and storing so many different items, as well as marketing in enough areas to reach all desired segements. For consumers it means being able to find a product that fits best physically and economically, no matter whom you are and what level of performance you need.

The image above shows the top four models of the Vapor line, which has a total of 9 different skates in its lineup, following the same pattern seen down to the X40 skate. The top skate of this line is $700 currently but you can get a pair of the lowest grade X40 for just under $100. The difference in price is influenced by many factors such as materials used, production method (hand-stitched vs. machined,) warranty level, and protection level to the user. Not only does the boot itself change, the performance that can be expected of it increases along with price, where the top of the line products will be much stiffer and stronger, as well as likely being a lighter weight overall. Other than skates, using this strategy has lead to success in the sales of gloves and sticks as well where novice players don’t demand their equipment to be as high-performance.

            The product-lining strategy is also used in the sales of items such as golf clubs and balls, baseball bats and gloves, as well as tennis racquets just to name a few. Outside of sporting goods, product-lining can be seen in vehicles, moving from a base model and adding trim packages and desired options to create a vehicle more tailored to the buyer. This strategy also is used in the sales of services such as insurance sales or banking where different price points can reflect different levels of coverage or options available.

Works Cited:

Jones, Steve. "Bauer Hockey Introduces New Product Line Inspired by Needs of Top Professionals." Business Wire. N.p., 15 June 12. Web. 23 Mar. 2015.