Analysis of the structure of a product line of alcoholic beverages

AB This article deals with marketing decisions on the optimal product line of alcoholic beverages manufactured under the brand name «Praskoveyskoe». KEY WORDS Product line, turnover analysis, ABC-analysis, production of alcoholic beverages, policy to optimize a product line INTRODUCTION A product line is a concept useful from the producers perspective , whereas a product assortment takes the expectations of the customers or target market into account. A product line is a group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same channels or outlets, or fall within given price ranges (Kotler, 2010). A modern enterprise is assumed to optimize its product line in relation to both the needs of customers and its contribution to company profi ts. The purpose of this policy is, on the one hand, to offer product variety that is closely matching customer needs and, on the other hand, to allow the company to exploit its resources such that it can optimize its profi t. The effect of price competition may be reduced in case a particular company succeeds better in balancing its product line corresponding to customer needs than another company. Both marketing and economic analyses can support the optimal composition of a product line