line extension and brand extension address the marketing of commercial goods. 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.
the object of a product line extension is bringing in customers who may not be familiar with the standard product line. businesses with a successful product line in one arena can employ a product line extension to reach new geographic areas, appeal to different audiences or meet specific price points. when a product meets the needs of customers in one city or state, the company can extend that product line to meet the needs of customers in other states. a product line that shows that it meets the needs of one group of customers often can be extended to meet the same or similar needs of another group.
the product line extension can be employed as either a down-market stretch, where the new product line appeals to bargain-minded customers, or as an up-market stretch, which appeals to luxury-minded shoppers. the biggest reason for a product line extension is meeting customer needs that previous products have not addressed. during the fitness craze of the 1970s, major soft drink manufacturers developed diet drinks with artificial sweeteners as a product line extension to meet the needs of calorie-conscious consumers. 2 soda in the united states in 2010, behind coca-cola and ahead of pepsi-cola. living in houston, gerald hanks has been a writer since 2008. he has contributed to several special-interest national publications.
a soft drink bottler, for example could offer different flavors of its popular cola drink. the company’s brand strength allows examples of ple brand equity. over its successful and vibrant years in the market, the beverage brand extension examples 1. reese’s puffs cereal (the best) 2. aunt jemima’s pancake & waffle, brand extension example, brand extension example, product line extension strategy, product extension, line extension meaning.
a brand extension is when a company uses an existing brand to create new product categories. this gives a for example, diet coke™ is a line extension of the parent brand coke™. while the products have distinct differences, a product line extension is the use of an established product brand for example, walmart is widely known for its low prices and availability, so this consumer image of the brand would not impact the, product line extension ppt, line extension examples 2018, coca-cola line extension examples, brand extension examples in india, line extension advantages and disadvantages, brand extension ideas, colgate brand extension, brand stretching examples
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