small companies can deploy the practice in the same way that large firms have, in order to increase sales of a popular product by offering variations. well-established consumer goods companies have grown sales by appealing to more consumers with new products that differ from the original on factors such as flavor, design and price point. levi’s over the years has introduced several different styles and fits for its jeans, and gillette has sold variations on its razors and blades, including versions geared to women. according to the consulting firm national marketing federation inc., extending a product line under an existing brand can attract buyers who have different preferences, lessen the cost of reaching buyers in the same market category who are already familiar with the brand, and ultimately boost profitability.
adding too many extensions to an existing product line poses the risk of cannibalizing sales of the original product. and even if product extensions sell well, retailers are limited in the shelf space they can set aside for variations. product line extensions need to be carefully researched to ensure they will actually serve an unmet demand in the marketplace, without drastically reducing sales of the company’s current products. lou hirsh has been writing and editing for more than 25 years, specializing in business, finance and the economy.
the brand refers to the recognized product or company name such as kraft, pepsi or apple. line extension refers to the expansion of an existing product line. in short, line extension adds variety to its existing product for the sake of reaching a more diverse customer base and enticing existing customers with new options. brand extension refers to the expansion of the brand itself into new territories or markets. a line extension can reinvigorate a product line, bringing it back into the public awareness by drawing new customers and higher profits.
line extensions and brand extensions both allow companies to promote new products with reduced promotional costs because the new lines or brands benefit from being part of an established name. first, any time a company introduces a new brand or line, the company name could become tarnished if the product proves to be an immense failure. secondly, extending into a new product or service that doesn’t suit your current offerings could cause an otherwise great product to fail. consider volkswagen’s failed attempt to extend it’s popular, generally affordable, brand into the luxury car market with the vw phaeton. as drivertribe reminds us, this was primarily because the logo didn’t fit the new brand.
product extension is the strategy of placing an established product’s brand name on a new product that is in the same category. small companies can deploy the practice in the same way that large firms have, in order to increase sales of a popular product by offering variations. a product line extension is the use of an established product brand name for a new item in the same product category. the release of premium versions of a product designed to appeal to customers who are willing to pay, product extension example, product extension example, brand extension, product extension meaning, product extension merger. a product line extension is the use of an established product brand name for a new item in the same product category.\nline extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors, forms, colors, added ingredients, package sizes.
a product line extension is when an existing brand launches new products in a product category they product extension is when a business takes an established brand name and applies it to new products a product line extension is when a company creates a new product in the same product line of an existing brand., product extension strategies, product line extension, product extension in sports, vertical product extension
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