Product organization structures are an integral part of running a successful business. A product organization structure should be designed to meet the needs of the company and its customers. There are many different ways to organize your products, so choosing the right one for you will take some time and thought. Product organization structures allow companies to focus on the customers they want to serve and how best to meet their goals. There are several factors that you will need to consider when planning your product organization structure:
Product Line Organization
Product lines refer to a group of products within a company that either share a common feature set, benefit from common distribution, or are marketed as a group. Product lines are often organized by the customer’s perceived similarities and shared attributes. Product lines can include individual parts, components, and variations of a specific product like car seats, car seat base, car seat connectors, or mobile device cases made from different materials, such as rubberized plastic, leather, silicone, and aluminum. Product lines can also include different model types of a particular product, such as brands of ovens, smartphones, or laptops.
Product line organization is often used to divide products into similar categories based on features, size or material type, or any combination thereof. Product lines are useful to businesses because they allow the company to focus on making their products as good as possible within each separate category. Product lines are generally organized by grouping together individual product offerings that offer the same benefits but may vary slightly in form factor, color, materials, etc., and market them as a group. Product line organizations can separate products with differing benefits and markets but share the same branding, marketing, and retail positioning.
Product lines allow companies to target specific segments that purchase these comprehensive product collections or bundles, such as consumers who love Android devices that purchase multiple different brands of Android phones; or parents who want all their children’s car seats from the same brand so they look similar and function similarly. Product lines are separated by grouping together products that offer the same type of benefit but may vary slightly in form factor, color, materials, etc., and market them as a group. Product lines make it easier for customers to understand what they need without overwhelming them with too much information about each product.
Product Type Organization
Product type refers to distinct products that share very few common benefits other than being produced by the same manufacturing process. Product type organizations are often used when a company is unsure of what products they will need to produce in the future. Product type groups are generally organized by grouping similar products together from an assembly line process; for example, computers or smartphones would have a common manufacturing process. Product type groups can also include dissimilar items that share only a single manufacturer process, for example, vehicles and air conditioners. Product type organizations can be difficult if you’re unsure which product types your business should focus on. Still, overall, product type organization ensures that staff is fully knowledgeable about how to assemble each specific product when it comes time to do so.
Product Family Organization
Product family organizational structures are used when grouping together families of very similar products with slight variations between them. Product families are often used when a company has many similar products that can be sold together to the same customers, for example, printers, printer ink cartridges, and printer paper. Product family organizations are great because they allow companies to target specific customers within their demographic with products that meet distinct needs while still producing other products that are far more flexible. Product family groups are also useful because they allow staff members to specialize in certain product types or lines. Product family organizational structures provide flexibility in production so businesses can adapt quickly when new opportunities arise. Product line organization is often not ideal when there is high variation in parts used between different products in the same groupings, so it’s best suited for companies who stick with consistent materials across all of their product offerings. Product family organization is generally the best organizational structure for companies that sell similar products with slight variation.
Product Family Group
A product family group is a type of product line, and it is used when grouping together families of very similar products but with slight variations between them. Product family organization can be difficult if you’re unsure of which product types your business should focus on, but overall product family organizational structures ensure that staff members are fully knowledgeable about how to assemble each specific product when it comes time to do so. Product line organizations make monitoring progress much easier because they allow groups like accounting or marketing to track results across all items in the same category rather than having to monitor individual goods. Product line organization is typically not suitable if there is high variation in parts used between different products in the same type of grouping. Product family groups are useful because they allow staff members to specialize in certain product types or lines. It provides flexibility in production so businesses can adapt quickly when new opportunities arise. Product family organization is generally best suited for companies that stick with consistent materials across their product offerings.
Conclusion
Product line organizational structures provide good opportunities for making money by increasing price-charging power, market bargaining power, and exploiting economies of scale. Still, it can be difficult to monitor progress on a per-item basis. Product line organizations make monitoring progress much easier because they allow groups like accounting or marketing to track results across all items in the same category rather than monitor individual goods. Product line organization is typically not suitable when there is high variation in parts used between different products in the same type of grouping. Product line organizations are good business choices for companies that sell similar items and need to be able to change prices quickly, but they can be difficult if you’re unsure of which product types your business should focus on; Product family groups allow staff members to specialize in certain product types or lines and it provides flexibility in production so businesses can adapt quickly when new opportunities arise. Product line organization is generally best suited for companies who stick with consistent materials across their product offerings.
