line extension brand extension

product line extensions are a process where companies with an established brand alter the factors of a product or products to satisfy a refined segment in the market. this is as extending their product line enlarges their product portfolio and as a result provides the consumers with more variety to choose from. [1] an issue also connected to the extensions, could result in the production process becoming more and more complicated as a result of new products, this could affect the company’s efficiency and quality in the production of the brands product range.

this can be good for the consumer as product prices may become more competitive, and goods may become cheaper to purchase. when extending the product line downward, the new product or products become more available to consumers and most likely, cheaper. brands extending their product lines upward successfully can benefit through the increasing amount of middle-class consumers that are becoming more capable and willing to invest their money in luxury products. a way to combat this is to increase the quality of the brands luxury goods, as well as targeting aspects of the consumer market that are able and prepared to pay more for the higher quality product.

if executed properly, brand and line extensions can give you greater efficiency in production and marketing while decreasing your promotion costs. a line extension is a product that incorporates a slight twist on an established brand. more than 50 percent of all new product launches each year are for line extensions that simply have a new flavor, size or nutritional content, according to iowa state university. in the food and beverage industry, for example, many line extensions are simply diet, organic, whole grain or gluten-free versions of the original brand or are simply new flavors. companies with well-established brands that have solid consumer loyalty often use brand extension tactics, such as starbucks with its 2009 launch of a premium ice cream line and kodak’s foray into batteries.

in order for a brand extension to be successful, it must be distinctly different from the parent brand, but related enough so that consumers are not confused. line extensions are often implemented with a very specific niche audience in mind, which is often geographical in nature. this is a good way to cater to a local audience, while leveraging a strong brand presence and minimizing the cost of bringing the product to market. if not executed properly, brand and line extensions can be risky business. in the consumer goods industry, cannibalization occurs when a line extension appears to succeed but instead of creating incremental sales, its sales are all from consumers who would have otherwise purchased the parent brand.

a product line extension is the use of an established product brand name for a new item in the same product category. if executed properly, brand and line extensions can give you greater efficiency in production and marketing while line extension (or product extension) is a marketing strategy according to which the scope of the product a brand, line extension examples, line extension examples, brand extension examples, category extension examples, line extension strategy. what is a brand line extension? a company introduces a brand line extension by using an established product\’s brand name to launch a new, slightly different item in the same product category. for example, diet coke\u2122 is a line extension of the parent brand coke\u2122. a line extension can reinvigorate a product line, bringing it back into the public awareness by drawing new customers and higher profits. a brand extension can increase profits by allowing manufacturers to tap into new markets and offer increased diversity in their inventory.

the main difference between line extensions and brand extensions is the product category. if the product brand extension refers to the use of brand name for a whole new product or a product that is different product line extension. a product line extension is introducing a new product – that is similar to what the company already, line extension meaning, brand extension strategy, line extension examples in india, product line extension ppt

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