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 line extension in brand strategy
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 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 the purpose of a product line extension
The goal of line extension is to satisfy a refined customer segment in the market.
There are two types of product line extensions: Horizontal extensions, which involve maintaining the same price and quality of a product but changing factors like color or adding ingredients to differentiate the products.
What is the difference between brand line extension and brand category extension explain with proper examples
Brand extension is the use of the same brand name to launch a new product in a different product line.
On the other hand, Line extension is the use of the same brand to launch and market a new product in the same product line.
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.
What is product line extension 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 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 in pharma
A line extension is a marketing authorisation the same marketing authorisation holder, where for instance the pharmaceutical form and/or strength differs from one or more other pharmaceutical products for which the applicant already holds a marketing authorisation.
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 are brand extensions
Brand extension is a marketing strategy that uses an already established brand name to introduce a product to its target customer base.
What is a brand extension with example
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.
Which is the best definition of a brand extension
Brand extension is a strategy where a company creates a new product category under its well-known brand name.
It helps launch new products easily, obtain higher profit, reduce costs necessary to launch a new business, and meet customers’ needs and wants.
What is brand line
What is a Brand Line? Brand line is a marketing term used to describe all the products sold under a single brand name.
New flavors, package sizes, nutritional content, or products containing special additives are included in this definition.
What is a brand line
Brand line is a marketing term used to describe all the products sold under a single brand name.
New flavors, package sizes, nutritional content, or products containing special additives are included in this definition.
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 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 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 vertical brand extension
Vertical extensions: Vertical extension means introducing related brand in the same product category in either of two directions, i.e., upscale extension, where a new product with higher price and quality characteristics, than the original, is introduced; or downscale extension, where a new product with lower quality
What is an example of a line extension
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 are the advantages of brand extension
Advantages of Brand Extension It increases brand image. The risk perceived by the customers reduces.
The likelihood of gaining distribution and trial increases. An established brand name increases consumer interest and willingness to try new product having the established brand name.
What are the disadvantages of line extension?
- 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’s the difference between a brand and a line
Brand extension is the use of the same brand name to launch a new product in a different product line.
On the other hand, Line extension is the use of the same brand to launch and market a new product in the same product line.
Line extension only represents an increase in a product’s line’s depth.
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?
What are the components of brand extension
A comprehensive literature review identifies six elements which are crucial to the success of brand extension.
These elements are Parent Brand Image, Parent Brand Fit, Parent Brand Strength, Marketing Support, Quality of Parent Brand and Parent Brand Consumer Experience.
What is brand line development
Brand development is a strategic process of creating and distinguishing your company’s image, products and services from your competitors.
Development includes aligning your brand with your business objectives, communicating your brand to your target market and updating or strengthening your brand as necessary.
What are two types of brand extensions?
- Product extension
- Line extension
- Customer franchise extension
- Company expertise extension
- Brand distinction extension
- Transfer of component extension
- Leveraging a lifestyle extension
What is a successful brand extension
Successful brand extensions allow companies to diversify their offerings and increase market share. They can give the company a competitive advantage over its rivals that don’t offer similar products.
The existing brand serves as an effective and inexpensive marketing tool for the new product.
What are the benefits of brand extension?
- It increases brand image
- The risk perceived by the customers reduces
- The likelihood of gaining distribution and trial increases
- The efficiency of promotional expenditure increases
- Cost of developing new brand is saved
- Consumers can now seek for a variety
What is the law of line extension
The Law of Line Extension says that it is a mistake to take the name of one product and apply it to another.
Companies do this often, but it basically never works. We think that the power of the brand will help sell the new product.
Instead, the brand itself is tarnished.
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.
References
https://www.ebaqdesign.com/blog/branding-mistakes
https://mailchimp.com/courier/article/building-your-product-portfolio/
https://www.extension.iastate.edu/agdm/wholefarm/html/c5-52.html
https://www.investopedia.com/terms/b/brand-extension.asp
https://www.investopedia.com/terms/b/brand-identity.asp
