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.
What is line extension example
A line extension is when a firm extends an existing product line. A manufacturer brings a new product to the product category that a company already manufactures.
For example, a brand adds “Vanilla” or “Lemon” flavor to its cola line and creates a variety of products that are available for consumers.
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 the importance of line extension
Why are brand line extensions important? Brand line extensions reduce risk associated with new product development.
Due to the established success of the parent brand, consumers will have instant recognition of the product name and will be more likely to try the new line extension.
What is an extension of a product line
Product line extension (also known as expansion) involves a business adding a new product to one of its pre-existing product lines.
What is a line extension drug
• Definition of “line extension” 42 C.F.R. § 447.502 (85 Fed. Reg. 87,034, 87,101) Line extension means, for a drug, a new formulation of the drug, but does not include an abuse-deterrent formulation of the drug (as determined by the Secretary).
What is the meaning of line extension in marketing
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 a product line extension strategy give example
A product line extension is when an existing brand launches new products in a product category they already offer products within.
For example, when a soft drink company offers a new flavor of soda.
What is an example of a product line
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.
What are examples of product line
Examples of Product Lines (NKE) has product lines for various sports, such as track and field, basketball, and soccer.
The company’s product lines include footwear, clothing, and equipment. The various product lines for Starbucks Corporation (SBUX) include coffee, ice cream, and drinkware.
What is process 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.
What is product line or brand extension
A product line extension is when a company creates a new product in the same product line of an existing brand.
The strategy for an extension could be a different color or size, and it may have different ingredients or come in different flavors.
Is a line extension a new product
Overall, a brand extension involves expanding the company into new product categories where it’s less known.
A line extension is when the brand creates a variation of an existing product to target new customer segments.
What are the benefits of product line extension?
- It Draws In New Customers
- It Keeps the Existing Customers Excited
- It Increases Profits
- It Helps in Achieving Economies of Scale
- It Enhances Marketing Efficiency
- It Enables the Business to Occupy Larger Shelf Space
Why do companies use product line extensions
Product line extension is a part of every company’s marketing strategy. It’s a low-risk way to meet the needs of various customer segments and can be used as a competitive weapon to increase a brand’s control over the market.
What is the brand 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 is the best example of brand extension
A brand extension (some times called a category extension) is when a brand is known for one type of product starts selling a different type of product.
Some example of brand extension are: Apple: from personal computers into MP3 players. Callaway: from golf clubs into footwear, apparel and golf accessories.
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 a line extension of Coca Cola
A brand extension is when a company uses an existing brand to create a new product category.
Line extensions can include different colors, sizes, flavors or styles. They enable the brand to meet the changing wants and needs of its customers.
Coca-Cola line extended its brand by introducing Diet coke.
What is brand extension example
Brand extension can be as obvious as offering the original product in a new form.
For example, the Boston Market restaurant chain launched a line of frozen dinners under its own name, offering similar fare.
Another form of brand extension combines two well-known products.
What is Nike line extension
Examples of Product Line Extension vs Brand Extension Nike implements a mixture of brand and product line extensions to expand its market reach and increase sales.
Nike’s Air Force 1, Cortez, Metcon 5, and React Infinity Run are results of product line extensions.
What is the main risk of a brand extension or a line extension
Risks of Extending a Brand 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.
Consumers might feel less inclined to support the company’s new products in the future.
What are the types of brand extension?
- Product extension
- Line extension
- Customer franchise extension
- Company expertise extension
- Brand distinction extension
- Transfer of component extension
- Leveraging a lifestyle extension
What are types of brand extension
Basically, a brand extension is leveraging an existing brand to promote a product in a different category.
There are various types of brand extension such as product form, companion product, expertise, customer franchise and brand image type.
What is an example of brand extension strategy
Definition brand extension strategy Perhaps one of the most well-known giants of brand extension is Amazon.
In 1995, Amazon began as an online bookseller. Since then, the brand has extended into everything from music, grocery delivery, consumer goods, movies and more.
Is Diet Coke a brand extension or line extension
The most well-known example of a line extension was Coca-Cola’s release of Diet Coke in 1982.
It was used to target the growing weight- and calorie-conscious market.
What is the main business use of an extension strategy
An extension strategy is a practice used to increase the market share for a given product or service and thus keep it in the maturity phase of the marketing product lifecycle rather than going into decline.
Extension strategies include rebranding, price discounting and seeking new markets.
What are the risks inherent in brand extensions and expanding product lines?
- Expanded line without any clear cut role leads to confused customers and confused retailers
- Brand loyalty is weakened
- Variants are copied with an intention to neutralize competition
- The relationship between the marketer and trade partners gets strained
What is the difference between brand extension and brand stretching
Brand stretching involves introducing a new product into the market that is similar to an existing product in terms of functional benefits, but different in terms of price or branding.
Brand extension involves introducing a new product that has little or no relationship with the original brand and its customers.
What are the advantages of brand extensions?
- It makes acceptance of new products easy: a
- There are feedback benefits to the parent brand and the organization: a
Does Amazon have any brand extensions
Amazon’s Latest Brand Extension Puts Groceries Straight to the Trunk of Your Car. The launch of AmazonFresh Pickup, lets customers place their grocery order online, drive to an AmazonFresh location, and have someone place the order straight into their trunk.
Citations
https://anthembranding.com/blog/what-is-brand-extension-and-what-can-it-mean-for-your-business
https://yourbusiness.azcentral.com/product-line-extension-strategy-28398.html
https://extensionaus.com.au/extension-practice/1852-2/
https://www.figadvertising.com/news/brand-extension-amazonfresh
https://www.lucidadvertising.com/blog/what-is-brand-development/
