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The purpose of this article is to present Line Logic™ as a means of developing and building a company's portfolio of products.

The paper uses a sporting goods company in the USA as a case study to portray the implementation of Line Logic™.

An extensive analysis of the company and its implementation of the Line Logic™ methodology found that the company was operating in conjunction with a bow tie channel strategy.

A case study does an excellent job of capturing phenomena at a particular company. The Line Logic™ framework needs to be explored and reported in various companies, thus allowing multiple sources of data to highlight strengths and weaknesses of the Line Logic™ methodology.

There is no magic formula or prescription for managing a company's line of product offerings. Line Logic™ offers a disciplined approach to creating and presenting a full complement of product choices. As shown here, the implementation of Line Logic™ assists companies in understanding both strategic and tactical issues related to competitors and channel members.

While there are companies that execute some of the Line Logic™ system, this paper illustrates the importance of line logic in the sporting goods industry. Additionally, the paper introduces the concept of the bow tie in product line planning.

In most businesses, strategic decisions are implemented by changes in the components of the product line or shifts in emphasis within a product line. In fact, most products actually belong to a line sold through the same distribution channel and this is true for cars, dog foods, electronic equipment, or even raw materials or travel tour packages. Also, each individual product is a quite rigid offering which cannot easily meet the changes in the market place. Thus gradual changes in emphasis within a product line make possible adaptive strategic moves that satisfy the needs for continuity in the business and for discretion in respect to competitors. But this fundamental business aspect is often overlooked. Marketeers wonder if they should decrease the price of their existing products to make room for a newcomer. They wonder if they have enough products in the line. They wonder if they should advertise the highest or the lowest part of their product line, and do not find easy ready answers. In fact, most business or marketing concepts seem to be related to individual products or different markets. Dealing with product line strategies is nevertheless one of the most important areas in market strategy.

The purpose of this study is to analyze the problem of optimal product line design in marketing channels.

This paper develops a game theoretic model, in which a firm markets a line of a limited number of products at different quality levels to serve a market composed of multiple consumer segments. The consumer segments are modeled as clusters of somewhat heterogeneous consumers as typically observed in the real world. These model characteristics allow us to consider a broader set of targeting strategies such as sub-segmentation and partial cannibalization which have not been considered previously. By considering both a vertically integrated channel and a decentralized channel, we investigate how channel structure influences optimal product line design. We analyze the model mathematically with supplemental numerical analyses.

Our analysis shows that “quality distortion” in product line design is not limited to the low-end product, as previously reported, but can happen to the high-end product. The direction of these quality distortions may be downward or upward, leading to either increased or decreased differentiation between the two products. Furthermore, channel decentralization makes it more likely for the firm to strategically choose upward partial cannibalization or sub-segmentation. Consequently, contrary to previous studies, we demonstrate that there exist conditions under which channel decentralization leads to higher product quality.

Our model reflects a more realistic market environment and a firm’s practical constraints than previous studies, which typically assume perfect homogeneity within each segment and/or the feasibility of offering an infinite number of products. This extension produces interesting new results and insights that provide more practical implications for a firm’s optimal product line design strategy.

Past work on the role of brands in the acceptance of organic products is partial and inconclusive. Research has failed to examine the consumer sense-making process underpinning fit assessment, despite the centrality of this assessment in the acceptance of line extensions. This study reconceptualizes the fit construct, showing the relationship of the fit dimensions (noncompensatory) and contributes to the literature with a deeper understanding of the role of a brand's association in the assessment process, which has been poorly examined in the past.

Grounded theory was used to unearth the process followed by consumers to assess the fit of organic line extensions. The study was based on 14 in-depth interviews.

The findings show that the dimensions of fit that consumers consider in assessing organic line extensions depend on the schema used in the assessment process. Moreover, it demonstrates that these dimensions have disparate structural relationships with one another, depending on consumers' previous commitment to organic products. Finally, the paper identifies three possible behavioral reactions by consumers toward organic line extensions.

The main limitation of this research concerns the settings in which it was developed. Therefore, and as stated by Strauss and Corbin (1990) the model applies to the situation analyzed and not to others. Future research could study if there are cultural differences in the assessment process of an organic line extension. Moreover, the contribution presented in this paper needs further empirical testing; specifically, the configuration of dimensions needed to accept an organic line extension and the relationship among dimensions.

This paper contributes to the literature by studying the impact of brand association on assessing an organic line extension and reconceptualizing the fit construct by showing the dimensions and the relationship between them that are not additive to the overall fit, as shown in past literature. Additionally, it provides a guide to brands wishing to launch an organic product using a line extension strategy and the potential implications for the parent brand that should be considered.

The Nature of Business Policy Business policy — or general management — is concerned with the following six major functions:

Understanding the economics and dynamics of channel marketing systems is the keystone to implementing successful channel marketing strategies.

In recent years, assembly lines have been reintroduced in the Swedish automotive industry and, in many cases, have replaced those so‐called alternative assembly systems which had their roots in the 1970s. This paper reviews and evaluates some explicit reasons given for the return to the assembly line. It also considers whether the decisions to replace alternative assembly systems with assembly lines may have been driven by other factors and mechanisms than those implicit in these arguments and, if so, what other factors could explain their reintroduction. There is also a discussion of which dimensions that should be taken into account when choosing between alternative assembly systems and assembly lines and empirical data are used to shed more light on the issues discussed in the article. The authors report one study that compares automobile assembly in an alternative assembly system with assembly of the same products after introducing an assembly line. They also briefly discuss reasons for and experiences from the recent introduction of alternative assembly systems in the Japanese electronics industry. In this case, so‐called cellular assembly systems have replaced assembly lines.

A software product line (SPL) captures commonalities and variations (C&V) within a family of systems. Although, feature‐oriented approaches have been proposed for building product lines, none of them provide a systematic approach for identifying features. This paper proposes a domain analysis method for creating SPL based on scenarios, goals and features. In particular, the paper presents a domain requirements model (DRM) that integrates features with goals and scenarios, and a domain requirements modeling method that uses the DRM. This approach has been applied to the home integration system (HIS) domain to demonstrate its feasibility. This approach makes it possible to systematically identify features and provide the rationale for both features and C&V.

Literature in brand extensions has relied greatly on categorization theory and on prototypical models of categorization to explain the affect transfer from a parent brand to its extensions. Drawing on the range theory exemplar models of categorization, this paper aims to show the effects of parent brand endpoint prices on consumer judgments of vertical line extensions.

Three experiments have been conducted. Experiment 1 tests the hypothesis that consumers rely on the parent brand price range when making judgments of an upscale extension. Experiment 2 tests the hypothesis that the effect of price range on extension evaluation is mediated by perceived risks for upscale extensions but not downscale extensions. The final experiment shows a boundary condition to the product line range effect on upscale extensions.

This research shows that upscale extensions are judged more favorably in the context of a wide versus a narrow product line even when the highest endpoints in both product lines are equally close to the extension and that this effect is mediated by perceived consistency and perceived risk. The range effect disappears, however, when consumers have a broad focus in which attention shifts to category endpoint prices, making parent brand prices less diagnostic of upscale extension judgments.

Managers may display a wider range of products and/or reduce prices of low-end models to expand product line price width. In consequence, low-end products become more competitive in terms of price and at the same time improve favorability ratings of the new upscale product.

Vertical line extensions and product line pricing are important topics to both academics and practitioners. Nonetheless, this is the first research to demonstrate how product line price width can influence consumer perceptions of vertical line extensions.

Increasing specialisation and segmentation of the market, combined with the reduced growth in some areas, has resulted over the last few years in a big increase in product ranges, particularly in frozen foods. This growth has tended to reduce the volume of the major lines by fragmentation and has produced an increasing number of lines whose sales are very small. At the same time costs have been rising steadily in most areas, not least in physical distribution, which accounts for between 15 per cent and 25 per cent of total costs. It is the view of many people responsible for distribution that one significant cause of the rise of distribution costs has been the proliferation of product lines and the consequent complexity of operations which result from this.