What is a product line extension? Line extensions refers to the process of expanding an existing product line.
This is when a company with an established brand introduces additional items in a product category.
The company uses the value of the existing product to market and introduce new choices to consumers.
Which is an example of a line extension marketing
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™ is a line extension of the parent brand Coke™.
What is a line extension quizlet
Line extensions. The development of a product closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs.
What is a line extension and how does it differ from a product modification
A line extension is the development of a product closely related to one or more products in the existing line but designed specifically to meet different customer needs.
Product modification is the changing of one or more characteristics of a product.
What is the primary distinction between a line extension
What is the primary distinction between a line extension and a product modification? a) A product modification results in a completely new product while a line extension is simply changing an old product.
What is line extension strategy
Product line extension is a marketing strategy that uses an established brand to introduce a new item into the same product line.
The new item may differ slightly from what a company already offers, such as in flavor, color, form, ingredients or packaging size.
What is a line extension give an example
A line extension is when a parent brand launches a new product line in a category already familiar with its customers.
With a line extension, brands don’t have to create new categories. An excellent example of a line extension is when soft drink companies introduce new flavors to their existing drink lineup.
Why do companies use product line extensions
Brand Extensions Increase Customer Loyalty By choosing to offer additional offerings in the same category, you’ll give customers more opportunities to purchase your products as opposed to buying from one of your competitors.
Why do company uses product line extension quizlet
Line extensions are more common than new products because they are a less expensive, lower-risk alternative for increasing sales.
What are the benefits of line extension
Product line extensions increase the variety of its existing products so that the products can appeal to a wider and more diversified audience.
They also entice the current customers to make more purchases.
What’s the difference between a product line and brand extension
Product Line Extension vs Brand Extension A product line extension refers to adding new features to products in a particular category.
On the other hand, brand extension is using an established brand name in new product categories.
What is the difference between brand and line extension
Line 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.
This is as opposed to brand extension which is a new product in a totally different product category.
What is the difference between brand extension and line extension quizlet
What is the difference between a line extension and a brand extension? A line extension uses a current brand name to enter a new market segment in its product class, whereas a brand extension uses a current brand name to enter a completely different product class.
Is a line extension good
Line Extensions are More Cost-Effective than Brand Extensions. Expanding the types of products that you offer can be expensive.
Paying for product development in a food or beverage vertical that you’re already familiar with is less of a financial risk than crossing over into a new market segment.
What is horizontal line extension
Horizontal extension refers to instances when an existing brand name is applied to. a new product, in either the same product class (line extension) or in a new product. class/category (franchise/brand extension), with the same price positioning or quality.
What is horizontal extension in marketing
A horizontal brand extension is when a brand name is applied to a new product or service in either a related product class or in a product category completely new to the firm, for example FHM Magazine launching a credit card.
Which of the following is an example of product line extension
Which of the following is an example of product line extension? Coke, in addition to its existing Diet Coke flavors, introduces chocolate-flavored Diet Coke.
What are the disadvantages of line extension
Challenges of a product line extension The challenges of a product line extension include: Potential product cannibalization Minor increases in sales volume Cluttering or confusing the market Less efficiency of production and marketing Unresponsive retail channels Potential product cannibalization A product line
How do you extend a product line?
- Analyze customer data
- New products & services
- Find new markets
- Expand distribution channels
- Target existing customers
What do you mean by market extension
A market extension merger refers to the coming together of two companies that produce or sell the same type of product but to different markets.
The main benefit of this type of merger is to give the companies that merge a larger market reach and client base as a result of its new capacity.
Is Coca Cola a line extension
Coca-Cola. During its 130+ years in business, Coca-Cola has launched its fair share of product line extensions.
If you look on any grocery shelf, you’ll notice a few different flavors and styles of Coca-Cola, such as Coca-Cola Life, Coca-Cola Zero Sugar, Coca-Cola Vanilla, and so on.
What is the main risk of a brand extension or a line extension
Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far.
An organization must research the product categories in which the established brand name will work.
There is a risk that the new product may generate implications that damage the image of the core/original brand.
What line extension strategy would you suggest to counter competition
A product line extension strategy is an approach to developing new products for your existing customers or for prospects who do not currently buy from you.
Extending a product line involves adding new features to existing products, rather than developing completely new products.
What is line extension trap
If you follow the prevailing logic of most modern companies, you will inevitably fall into this trap.
Line extension is using an existing brand name or image and extending it to new products.
Sounds like a good idea, right? Why not use the equity of your known brand to draw attention to a new product?
Which of the following is a risk associated with a product line extension
Which of the following is a risk associated with a product-line extension? Too many categories or types of products can dilute the brand’s meaning in the minds of target customers.
What is a brand line
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™ is a line extension of the parent brand Coke™.
What is product line with example
A product line refers to a particular good or service that a company makes and markets to customers.
A food company may extend a product line by adding various similar or related products (e.g., adding mesquite BBQ flavor to its existing potato chips line), and create a more diversified product family.
What is a product line example
Examples of Product Lines The company’s product lines include footwear, clothing, and equipment. The various product lines for Starbucks Corporation (SBUX) include coffee, ice cream, and drinkware.
Is advertising an extension strategy
Extension strategies extend the life of the product before it goes into decline. Again businesses use marketing techniques to improve sales.
Examples of the techniques are: Advertising – try to gain a new audience or remind the current audience.
What companies use extension strategies?
- Apple: from personal computers into MP3 players
- Callaway: from golf clubs into footwear, apparel and golf accessories
- Dyson: from vacuum cleaners into desk lamps
- Starbucks: coffee-based beverages into energy drinks
- Mailchimp: email marketing to Facebook ads
What are the types of product line
Types of Product Line Decisions – Product Line Strategies The product line decisions are (1) product line expansion, (2) product line reposition and (3) product line contraction.
The marketing executive will make a variety of product line decisions over the life of a product.
Citations
https://www.linkedin.com/pulse/20140122142620-3458678-the-no-1-reason-why-brand-extensions-fail
https://www.canto.com/blog/brand-extensions/
https://en.wikipedia.org/wiki/Umbrella_brand
