Product line extension. They may create a subtle variation by offering something for specific demographics or providing different sizes. This brand is best known for its original coke taste, but using brand extension, Coca-Cola has launched a whole new line of various coke products, such as Coke Zero and Cherry Coke flavor. Brand extension vs line extension. In fact, consider including what’s called a Apr 12, 2021 · This is a line extension. A line extension is where a brand launches a new range of products that fall into the same category as the existing product line. Brand Extension: A Comparative Analysis. 2 Feb 15, 2024 · Product line extension. Example of line extension: Coca-Cola expanding from its original flavour to Coke Zero, Diet Coke and more. At Vault49 we define a brand extension to mean taking an existing brand name and using it on a new product or service within a market that is different from the original. There are many examples of brands who have used product extensions as part of their brand extension strategy. May 16, 2022 · Product Line: A product line is a group of related products under a single brand sold by the same company. Brand line example – Magi noodles, Cadbury dairy milk, coca-cola. Market Penetration and Competitive Positioning. Therefore, the brand avoids the difficulties of adding an entirely new product category. chiral forms/isomers and active metabolites. Sometimes, a brand line extension is also called a vertical extension because it can also apply to products with tiered options. A good example of this is Apple’s iPhone, which has been launching yearly for more than a decade and is one of the most highly anticipated tech Jun 24, 2021 · Line extensions refers to the process of expanding an existing product line. The degree to which line extensions and original products are sub-stitutable varies and discussed in Section 2. Consumers’ perceived risk can go down with brand extensions. The goal of line extension is to satisfy a refined customer segment Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. Sep 15, 2009 · Some sub-brands result from the core brand being extended into new product categories while others result from the core brand being extended into new customer market segments. Hal ini karena perusahaan dapat menghasilkan lebih banyak produk dengan biaya produksi yang relatif sama. Jun 17, 2020 · Brand extension is the use of the same brand name to launch a new product in a different product line. e. They are designed to challenge a competitor with a value offer or unique positioning, protecting the flagship brand from diluting its brand premium. Find out what it is, why it's important, and how to do it effectively with market research and SWOT analysis. This is an example of creating a brand extension vs. Differentiate your product. Ensure that every salesperson can state—in one sentence—the strategic role that an extension plays in your product line. Carlsberg is one example — the multinational brewery group offers their standard Danish pilsner in bottles, cans, on tap, and in many more forms. For example, a candle brand may launch a special Christmas range of Jan 1, 2021 · 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. The goal of line extension is to satisfy a refined customer segment product, line extensions and original products are typically in the same therapeutic class and are imperfect substitutes. Jul 11, 2023 · A line extension is when a firm extends an existing product line. Nov 26, 1998 · Abstract. A line extension is likely the least challenging type, as it doesn’t involve creating a new product category and can use a similar marketing strategy to its other products of the same type. Start to explore adjacent categories (support by research is vital) in which your brand could be relevant and meaningful. Brand extension allows companies to leverage their existing brand 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. Now that you have an idea of what product line extension is, it’s time Aug 4, 2021 · A brand extension is a marketing strategy that uses an established brand to create new products or enter a new brand category. Brand extensions are used to build brand equity. 2. This can be achieved by adding new features, changing the product’s design, or altering its price point. Drug prices were average wholesale prices from Product line extension dalam bisnis memiliki beberapa manfaat yang penting bagi perusahaan, yaitu sebagai berikut: 1. In simple words – Apr 24, 2024 · But Gillette later introduced shaving products for women under the name ‘Gillette Venus. Jun 1, 2009 · The brand halo effect for vertical product line extensions is analyzed using the central nucleus theory. These strategies are typically used when a product reaches the maturity stage of its life cycle, and sales begin to decline. com. Complementary product extension. They can also improve the overall brand image. This could be a good option if you have a successful range of products that could benefit from additional variations. Jan 11, 2023 · Another type of brand extension is line extension, which refers to the process of expanding a brand's existing product line by adding new products or variants within the same category. From Retail Detail. Companies sell multiple product lines under their various brands. Feb 12, 2019 · Product Line Extension Strategy. Source: tokopedia. Jul 15, 1990 · In contrast, using an established brand name can substantially reduce the introduction investment and increase the probability of success. Capitalizing on brand positioning in existing independent retailers, Cellucor established a stronghold in these locations while negotiating deals with GNC, Costco Jun 24, 2021 · Line extensions refers to the process of expanding an existing product line. In simple words – Oct 3, 2022 · Brand extension, also called brand stretching, is a marketing strategy companies use to apply their recognizable brand name to a new product or service. The goal of line extension is to satisfy a refined customer segment Jul 1, 2003 · New formulations. Line extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavours, forms, colours, added ingredients and packet sizes. See: Product Line Product Line Stretching. In 1995, Amazon began as an online bookseller. The company uses the value of the existing product to market and introduce new choices to consumers. For example, when social media software Hootsuite launched new analytics tools to complement their existing social media Jun 10, 2023 · Types of Brand Extensions. Find out how to create engaging and user-friendly websites with Strikingly for your product line extension. The products resulting from a brand extension may or may not be closely related to the The product line is the grouping of similar products under one brand that the company is offering. This is when a company with an established brand introduces additional items in a product category. When you introduce unrelated new product the brand extension fails and creates a bad association as well. Types of Product Line Extensions . 4. If the product category is new for the brand, then it is considered a brand extension, if the category is the same as old products for the brand, then it is merely a line extension Various Brand Extension strategies are- Line branding, Range branding Line Extension. Ideally, this method works best when brands release products or services Jun 12, 2023 · 2) Levis: The very famous retail famous apparel brand is one of the highly liked and adored brands by fashion lovers all across the globe. Since then, the brand has extended into everything from music What is Product Extension? Product extension is a type of branding strategy where a parent brand covers a new product under same category it currently serves with new color, sizes, pack size and forms. Is Disney a brand extension? Disney is a company that used its brand to extend into many Aug 13, 2021 · Here are three different approaches you can take to brand extension: 1. Brand extension strategy refers to the use of an established company’s name or brand to enter a new product class or industry. They can help the product be easily accepted. Differentiating Factors Between Line and Brand Extension. Using the `new empirical industrial organization' methodology, we examine the impact of a line extension on price competition between two national yogurt Apr 19, 2024 · A product line is a collection of products that are advertised and marketed under a single brand. Sep 15, 2021 · Tujuan dari Product line extension ini adalah untuk memberikan variasi produk yang berbeda kepada konsumen. Mampu meningkatkan jangkauan dan loyalitas konsumen. A line extension (also known as product line extension) is a newcomer launched in the market by a company with an established brand in the same product category. adding depth to an existing product line by introducing new products in the same product category; product line extensions give customers greater choice and help to protect the firm from a flanking attack by a competitor. Here are some examples of extension strategies and a real-world example:Product line extension: This involves introducing new products or services that are similar to the Jan 17, 2017 · It is classic product line extension. a product extension. And a product category is related set of products – such as, dairy products, computer products, furniture, motor vehicles, and so on. Jan 31, 2022 · The Definition Of Line Extension. Jun 24, 2021 · Line extensions refers to the process of expanding an existing 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. Brand line and brand extension both need the marketing and promotion of their product after extending. ’. Line Extensions. Perhaps one of the most well-known giants of brand extension is Amazon. But its Product Line Extension includes various fits for the various body types. This strategy allows for the new product to enter the market with pre-established brand awareness. A brand extension is a strategy to launch a product in a tangential market or category, sometimes closely related to the core product, and other times unrelated. Meningkatkan Pendapatan Perusahaan. To me, designations such as “Light” or “Gold” are more line extensions or variations on the core brand’s theme than they are full blown sub-brands. Mary Kay Cosmetics limits its product line to 225 SKUs, so its beauty Nov 27, 2023 · Line extensions, as a special type of brand extensions, would also have a significant impact on consumers’ categorization processes at both the brand and product feature levels. Since the company has established the brand name as trustworthy and popular, they can also increase the interest of consumers and make them consider a new product. Usually, line extension is associated with a product’s Dec 22, 2015 · We demonstrate that, by adding a low-end product line extension, an OEM can induce a strategic supplier to offer more favorable pricing. Hal tersebut terjadi karena semakin banyak Oct 31, 2022 · Advantages of brand extension. Two types exist: Horizontal extensions: Maintain product price and quality, varying factors like colour or ingredients to differentiate. The goal of line extension is to satisfy a refined customer segment May 1, 2018 · The inter-rater agreement for product extensions exceeded 79%, with the remaining cases being agreed upon after discussion. A ‘product line extension’ is when a company introduces a new item in the same category as its existing products. It increases brand image. Contoh sederhananya, anda adalah pelaku usaha minuman sehat kekinian seperti smoothies dan jus buah. As we note and show in our General Discussion section, the distinction between product and line extensions is critical. Line Extension Vs. Like brand extension, line extension is also done to leverage on the brand Jun 24, 2021 · Line extensions refers to the process of expanding an existing product line. 6. Generally, line extensions are less risky since it’s within the same product category. A product line extension is any new product brought to market that is in the same product category that the firm already produces and markets. A product line extension occurs when an existing brand introduces new items in a product category in which it currently sells products. The easiest way to define a line extension is: “A new version of an established product that competes in the same category as the original. A goal of a differentiation strategy is to highlight the quality and characteristics of your product that make your product stand out from the rest. And in doing so ensures the new product capitalizes on the already established brand’s reputation and customers’ familiarity. Carlsberg. 1. Apr 28, 2021 · A company that makes shaving cream for men might add a line for women. Many brand extensions are so-called vertical line extensions, that is the introduction of a. Impact on Brand Equity and Perceived Value. It involves taking an existing product and simply changing its form. Product Line Extension Example (done right) Years after launching its initial product line, Cellucor released the C4 energy drink in 2011, taking the supplement industry by storm. Costa Coffee. The empirical study is based on experimentation linked to six brands in the automotive sector. The strategy for an extension could be a different color or size, and it may have Perhaps the most common type of brand extension, a line extension — or product line extension — is the expansion of an existing product, either by adding features, new versions, or upgrades. Email address. They can launch a completely new products line or extend the current one. Brand extensions can take various forms, such as introducing a new product line, targeting different customer segments, or expanding into related product categories. ”. Product line extension involves adding new products to a company's existing product lines, while brand extension involves leveraging an established brand to introduce new products or services to an unrelated market. The new product is called a spin-off . Product line extensions help keep your customer base coming back for more. Feb 14, 2023 · Line Extension . Moreover, depending upon the cost structure and relative performance of the product line extension, the OEM may benefit even more from the low-end line extension if it is produced by a rival instead of by Jan 4, 2021 · branding strategy. Line extensions involve expanding an established product line, leveraging the brand’s existing value to introduce new choices. The aim is to cater to a refined customer segment. The likelihood of gaining distribution and trial increases. This is brand extension. Mention and/or link to your brand extension from your allied brand’s social media pages (and vice-versa), and then do the same with your websites. Line extension is a product management strategy that can help companies to stay competitive, increase revenue, and leverage their existing brand and customer base. Right from the narrow bottom, slim fit, comfort fit to baggy fits, and more Mar 6, 2023 · 2. Extending a product line involves adding new features to existing products, rather than developing completely new products. Consumer Perception and Brand Loyalty. It is known for its shades and hues of blue jeans. A line extension is a term used to describe brand extensions where a brand launches a new product line in a category that the brand is already associated with. Think Crest toothpaste or Yoplait yogurt—the Consumer Packaged Goods industry is full of these types of brands. For example, a company may decide to launch multiple flavors or sizes for an existing product or to introduce complementary products that can be used alongside Nov 23, 2022 · A line extension is the subcategory of brand extension; Companies may also offer a line, or “product form,” extension by providing more options within their existing product category. Example of line extension: Coca-Cola expanding from its original flavor to Coke Zero, Diet Coke and more. These are extensions of a current line of products rather than an entirely new product—this is an example of May 13, 2022 · Examples of brand line extensions. It might even give the new line a new name. Therefore, if Toyota was to introduce a new car, then that would still be considered to be an existing product, because they already offer and market cars. Jun 5, 2018 · There are ways to test out new products that don’t involve placing big bets or extensive inventory management these days. Menambah varian produk membuat usahamu bisa menjangkau konsumen lebih luas dari semua kalangan, tidak hanya itu, product line extension juga akan mendapatkan loyalitas dari konsumen lama. “So when you’re trying to figure out your inventory and product line, pick something, give it a go and test it to see . A brand extension strategy, also known as brand stretching, is a marketing strategy in which a company uses its well-established brand name to launch a new or modified product. Line extensions are part of product lifecycle management strategies when they help the manufacturer of an Mar 10, 2020 · กลยุทธ์ทั้ง Brand Extension และ Line Extension นั้น ความสำคัญอยู่ในเรื่องของการสร้างความชัดเจนในตัวตนของแบรนด์ วัตถุประสงค์และแผนการทำ The results from prior research regarding the effectiveness of product line extension strategies on market-level brand performance are equivocal. A great example of this is the established brand, Coca-Cola. The product in this type of extension would fall in the same category as the company’s current offerings, making them easy to market to their existing clients. These line extensions diminish the risk related to the development of a new product. This can reduce the cost of product development as well as Nov 21, 2023 · The product can be a new product, an expansion of an existing line, or a companion product to the original. Product Line Extension. The marketers and the products lines managers are the key figures responsible for the growth Apr 9, 2021 · Instead of ‘staying in their lane’, so to speak, many brands seem to be launching extensions to generate further revenue (based on the existing awareness and success of their company). Product form: This is the most common type of brand extension. Aug 4, 2022 · A product line extension is the addition of new products to an existing product line within the same product category. process technologies, such as purification and expression systems. For example, a company that makes a popular line of shampoo could launch a conditioner that is in the same product category. It’s the same product in a new line - but, it has an enticing flavor to draw Coca-Cola’s loyal audience back to try it. Oct 3, 2022 · A line extension is one of the most straightforward brand extension examples and involves a brand launching a product that would already be familiar to its audience. For example, a brand adds “Vanilla” or “Lemon” flavor to its cola line and creates a variety of available products. The risk perceived by the customers reduces. Learn what product line extension is, why it is important for businesses, and how to optimize it with SEO strategies. Risks of line extension include brand dilution, cannibalization of existing products, and damage to the brand’s reputation if the new products fail to meet expectations. Line extension refers to businesses offering an extension to an existing product line. This strategy helps businesses expand its offerings by relying upon its existing strengths. A line extension is the extension of the product line, while the brand extension is the extension of the width of the product mix. It can be confusing since both clients and agencies can be loose with their use of these phrases. , the introduction of a new product that is a variation of a firm's existing product) are an important competitive instrument in consumer non-durable products. While it presents several challenges, line extension can be an effective way for companies to introduce new products and meet the changing needs of customers. Even though line extensions and brand extensions are sometimes mistaken to be the same, there is a considerable difference between the two. Brand extension is the strategy of launching a new product into the marketplace under a well-established brand name that is already recognized in a different product category. Three independent raters examined the different types of brand Definition brand extension strategy. Long-term Sustainability and Growth Potential. The more a brand offers (and can do well), the more valuable the brand may become. Product line extension dapat meningkatkan pendapatan perusahaan. 3. See successful examples from Apple, Coca-Cola, and Nike. Remember, this is a strategy for existing brands with an established customer base. The goal of line extension is to satisfy a refined customer segment Mar 22, 2023 · Brand Extension Vs. The aim is to capitalize on the existing brand’s reputation, customer loyalty, and market presence to drive the success and acceptance of the new offerings. Di samping itu, product line extension juga digunakan sebagai langkah melebarkan jangkauan bisnis dan produk yang dimiliki sebuah brand. Learn how to diversify your product offerings and reach new customers with product line extension. This is an excellent example of brand extension as Gillette managed to expand its customer base by targeting the female demographic and creating shaving products customized to their needs. The main difference between line extensions and brand extensions is the product category. Organizations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability Jun 24, 2021 · Line extensions refers to the process of expanding an existing product line. Brand Extension has following advantages: It makes acceptance of new product easy. This strategy allows companies to reach a larger audience, utilize established brand loyalty, and diversify their offerings to cater to a broader range of customer needs. A study of 7,000 supermarket products introduced in the 1970s found that fully two-thirds of the ninety-three products that grossed over $15 million were line extensions. Many successful product extensions come through formulation changes such as: controlled release and delivery systems. Each product in a product line can serve different purposes or target specific customer preferences. The benefits of this approach include: Common branding — Products within a line share the same brand name. when you are adding varieties or variations or flavors of the same branded product, you are basically doing line extension. The primary objective of this strategy is to leverage the Oct 31, 2005 · Product-line extension was defined as the appearance of another product that a company introduces within the same market after its existing product. Key Characteristics of Line Extension (or product extension) is a marketing strategy according to which the scope of the product a brand represents is increased i. A line extension is a product that Product line extension comes in many forms, and these are just a few of them. Next, establish the connection. A product line extension is a new product that is slightly different to a company’s existing range. Well established consumer goods company have successfully implemented this strategy and Sep 30, 2022 · Manfaat Product Line Extension. The risk Jun 24, 2021 · Line extensions refers to the process of expanding an existing product line. Rather than Aug 10, 2023 · Think: apps, websites, newsletters, social media pages, and so on (again, just as you would with any other brand). Line extensions aim to cater to different consumer preferences and expand a brand’s presence within a familiar market. Nov 21, 2023 · A product line extension is when a company creates a new product in the same product line of an existing brand. vertically differentiated product into a category in which the firm is already acti Jan 1, 2021 · Brand extension 101. Most Popular. In fact, line extensions may be the answer to building sales and moving your company in a whole new Sep 7, 2021 · The different types of brand extension are: 1. Companies often expand Jun 24, 2021 · This starter guide will walk you through examples and tips on creating a product line extension strategy, so you can build a more profitable business. Thus, categorization theory and the empirical findings in the brand extension literature apply also to line extensions. A manufacturer brings a new product to the product category that a company already manufactures. drug delivery systems such as patches, devices, and implants. Line Extension. An example would be a new pack size of an existing food product line, such as children’s Feb 16, 2016 · Extension strategies refer to methods used by businesses to extend the life of a product or service. Product line extension; Multi-brand; Brand extension; New brand; Please note that the top axis refers to the product category – that is, a set of products – not an individual product. Brand extension example – APPLE, Ferrari, etc. Learn how to extend your product line to reach new markets, strengthen brand loyalty, and increase revenue streams. An organization initiates a line extension on account of a well-established products brand name to pitch a new, vaguely different item in the same category. Highlight the differences that set your product apart from market competitor products. For example, Coca-Cola has released varying flavors of its traditional cola flavor products such as cherry, vanilla, zero, etc. Some studies show that brands benefit from horizontal line extensions while other studies show vertical line extensions as being a preferable approach to brand leveraging within a product category. Line extensions (i. This new product may be in the same product category (line extension) or a different one (category extension). Although the new product is unfamiliar to Jun 24, 2021 · What is a product line extension? Line extensions refers to the process of expanding an existing product line. A line extension allows businesses to capitalize on existing customer trust and loyalty in the core brand. 1 Longevity of Product Life Cycle ; 2 What Are Consumer Cues? 3 How Would the Marketing Mix Change at Different Stages of the Product Life Cycle? Jun 7, 2004 · A: There are many reasons to add new products-or line extensions-to your company's product mix. Line extension only represents an increase in a product’s line’s depth. “These days you can test stuff at a very low cost, at a very low barrier to entry,” says Marc. Even if consumers aren’t familiar with the new offering, they’ll know and trust the brand name enough to try it. Rather than Here are 11 extension strategies to consider for your business and brand: 1. In today's highly competitive business environment, companies need to explore various strategies to maintain their market position A product line extension is the use of an established product brand name for a new item in the same product category. It’s easy to realize that Line extension Sep 24, 2023 · Benefits of line extension include meeting customer needs, increasing market share, and cost efficiencies. But then look further. Type of brand extensions. The goal of line extension is to satisfy a refined customer segment Feb 10, 2023 · A line extension is a marketing strategy where a company takes an existing product and creates a variation to target new customer segments. An established brand name increases consumer interest and willingness to try new product having the established brand name. A line extension is the most straightforward type of brand extension – in fact, there’s a chance you’ve already done it. Mar 22, 2023 · Brand Extension Vs. A line extension, on the other hand, is a strategy where a brand introduces new variations, flavors, or products within an existing product category that align with its core offerings. Usually, businesses and companies offer various products lines under one brand. The product extension is also known as line extension. lppshcmwqeldozcyrgqj
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