A company therefore must regularly pare the product and brand lineup to give others a chance. The strategy for an extension could be a different color or size, and it may have different ingredients or come in different flavors. However, abrand extensionis when an existing brand offers a new product in a product category the brand has never competed in. The relationship between the marketer and trade partners gets strained 5. Let's call them YumYum Cookies. Callaway: from golf clubs into footwear, apparel and golf accessories. This often occurs when a company wants to capitalize on the success of a particular product by making it available in different forms. Slide Rail Extensions. Add to Quelch and Kennys risks of line extensions the risk of diluting a brands equity dramatically with multiple line extensions. Could Crest and Colgate have ignored the threat from Arm & Hammers baking-soda toothpaste? Thus, Lysol was able to market products in several additional household-cleaning categories without sacrificing volume or share for the parent brand. The biggest market for Lux White Impress is India, but the soap is distributed and marketed all over South-East Asia and beyond. A line extension is within the same category, while a brand extension moves beyond. Since then, it has become one of the company's most popular products and spawned multiple line extensions, including Diet Coke Plus, Diet Coke With Splenda, and others. Advanced Appetite Suppress, 60 vegetarian capsules. There are several risks associated with line extension, including the risk that the new product may not be well-received by consumers or that it will compete too closely with existing products in the company's portfolio. As the authors illustrate in a case study, Snackcos Fall and Rise, companies that focus a product line can increase profits and sales volume. The very famous retail famous apparel brand is one of the highly liked and adored brands by fashion lovers all across the globe. In fact, line extensions may be the answer to building sales and moving your company in a whole new . To diversify a company's existing product portfolio: Companies may also choose to use line extension as part of their overall strategy for diversifying their product portfolios, which can help them in times of economic uncertainty or when market conditions are unpredictable. A brand extension is when a company uses an existing brand to create new product categories. If youre ordering small quantities, you might be paying more per unit, but thats preferable to writing a check for $20,000 to bring in X amount of the same product if you don't know how well theyre going to sell. For example, when the BMW Group offers the All-Electric Mini Cooper, are they extending the Cooper product line? No problem! What is a product line extension? 100% Remy Hair Extensions Length: 12inch, 14inch, 16inch, 18inch, 20inch. Hondas introduction and management of the Si trim level in the Civic product line have envigorated the brand. The key is to carefully consider the needs of the target market and the overall objectives of the company before making a decision. Shipping and handling. Fortunately, the brand has made 20 other flavors for you to choose from. Celebrity chefs like Rachel Ray have been promoting the health benefits of extra-virgin olive oil for years. In 1997, Nissan experimented with theAltra, a sizeable electric wagon or van, but it only sold a few hundred in Japan and the United States. Depending on your brand, you might be able to recruit a focus group or get your audience to take a survey in one of a few ways. Weve covered Mr. Clean before in our examples of umbrella brands. It was probably the best idea Ive ever had and the most poorly executed, said David Novak, the marketing executive behind Crystal Pepsi. Companies often expand product lines to increase demand for products and mitigate competitive threats. The taste was similar to classic Pepsi, but the drink was clear and caffeine-free. Brand line extension occurs when a company introduces a new item in a completely different product category. Stay closer by creating groups - Keep in better touch with your family, school friends, and other people important to you. John B. Balson is President and CEO, Sandhill Group, Jupiter, Florida. The best Proctor & Gamble (owners of the Mr. Clean brand) can hope for us to move people over to Clean Freak over time. Gallos prior association with lower price points clearly reduced the appeal of the new varietal line. Line extensions are safer than brand extensions. There may be times when a brand extension is a better marketing decision. Oreo has also expanded its brand. If you swapped someones shampoo for conditioner, then they cannot wash their hair. Hello produces and sells personal care products with cannabidiol (CBD) and other less-processed / more natural ingredients. Marketing executives and product managers develop and launch products as something to do. For example, a company that sells designer handbags could introduce similar lines of handbags that are more affordable to appeal to a wider range of consumers. Honda extended their line of compact cars with an sport hatchback. We have hair extensions for home and professional use to make every day a great hair day. Have a look at your available resources on the front of strategy, ideation, manufacturing, and execution. Colgate Calming Clean using hemp seed oil as a filler which soothes the mouth during brushing. Both Lux soap and light skin are tied to glamour and Bollywood, so a skin-whitening soap was a natural line extension for the Lux line of soaps. This shift will ultimately damage the egos and finances of many senior managers. It resulted in some free promotion, it connected Coca-Cola with the holiday season, and I am sure it displaced some competitive products in store for the three months. When you already have a database of customers, it creates a favorable environment for you to launch the product. Lead clients toward new trend opportunities. The main purpose of this website is to share all concepts, strategies, analysis and various Business and Marketing resources to help beginners and professionals. At a bare minimum, an extension must pass the simple tests of consumer benefit, share-of-requirements growth, brand image, longevity, and activity-based profits. In this case, customers may become confused about your brand and about what types of products you offer. Even if the new brand succeeds, however, its niche may develop into a strong market segment. Start a free trial and enjoy 3 months of Shopify for $1/month on select plans. The promise means arebrandingof Fair & Lovely because fair is in the brand name, which will be a significant financial hit for Unilever as it is the leading brand in many markets. Product Line Overview & Examples | What is Product Line? For example, Pepsi's recent introduction of the 1893 line of craft sodas was a response to the growing popularity of artisanal beverages. Coca-Cola extended their line of soft drinks with a seasonal cinnamon flavored version. Explore product line extensions. Law of Effect | What is Thorndike's Law of Effect? Pepsi spent an enormous amount of money on the brand and, regardless, we killed it, said former Coca-Cola executive Sergio Zyma noted in the book, Killing Giants: 10 Strategies to Topple the Goliath in Your Industry. Making a chocolate chip version, a mint version, or ice cream sandwich version are types of line extensions. It could mean offering different colors and designs of the same product. The goal? But, the US turned on cannabis. Just as a natural cataclysm wiped out the dinosaurs 65 million years ago, a technological cataclysm eliminated the horse and buggy 100 years ago. To respond to environmental concerns: As consumers become more aware of environmental issues, they may seek out products that are more environmentally friendly. Mass production 3. Creating line extensions solve this problem. With their popularity, the company continues to undergo product line extensions. All other trademarks and copyrights are the property of their respective owners. For example, when a soft drink company offers a new flavor of soda. To stay relevant and successfully survive and thrive in the market, it is always necessary to keep a thorough check on the competition and their ongoing business activities. Furthermore, a company that extends its line risks undermining brand loyalty. Advent of electronic communication New-to-the-market products Therefore, one of my favorite adages applies: Dont mess with success.. Product line competition How to compete on the basis of Product lines? Its a strategy that has worked for Bushbalm, an online skincare retailer. What Is Brand Equity? Line extension may also occur from small variations of ingredients such as if a company that makes a well-known cracker creates a new version of the cracker with slightly different components and flavors. 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. So I hate to break it to you, but you are not going to get high brushing your teeth with this product. Ever wonder why there are so many variations of something as simple as peanut butter? Now you can get Dove soap in body wash, travel-size bars, unscented, sensitive skin, pink, exfoliating, and more. The disinfectant Lysol, for example, proved that a brand can be extended across several categoriesif a common and important consumer benefit exists in both the products and consumer perceptions. Now Nissan seems to be preparing the Zero Emissions brand to encompass more vehicles than the Leaf. It doesnt matter whether you are selling ice cream or toothpaste, line extensions should be part of your marketing mix. The lesson here is that expansions dont have to be a massive project. Many brands introduce variations just to monopolize store shelf space. As product categories evolve, a company must continuously adapt its product lines. Blocking or Inhibiting Competitors. That is the spirit in which I interpret Quelch and Kennys suggestions for steering a course between variety and redundancy. Moneybonuses, stock options, and salariesdrives short-term decisions. have resisted the urge to introduce meaningless line extensions. This system, which produces duplication, also encourages brands to innovate or be left behind. Line extensions refers back to the strategy of increasing an present product line. I feel like its a lifeline. Alexander L. Biel is President, Alexander L. Biel & Associates, Mill Valley, California. Proctor & Gamble extended their line of spray cleaners with a new technology. It was challenging. Off-topic note: olive oil is better in many ways to other oils, but only for room temperature uses. All major items usually suffer in this situation because managers decide what to push based on their fear of cannibalization rather than on consumer response. Building Your Brand with Brand Line Extensions* This file is third in a five-part series on building and developing a brand in the market. Apart from conducting external research such as competitive and market study, it is also very imperative to conduct internal research as well. There are numerous product line extension examples in modern times. The new item may differ slightly from what a company already offers, such as in flavor, color, form, ingredients or packaging size. Burger King failed to explain the advantage of Satisfries, so customers wondered why they would pay more for french fries with a different name. Its a quick way to get those products out into the world, and when you see which ones perform well, you can switch to printing them yourself or holding inventory without the risk of pre-ordering all of your original designs. Lux White Impress can be purchased as both bar soap, and a body wash. White Impress is the only Lux soap to promise skin lightening; some products like Lux Creamy Perfection offer moisturizers, but most variants, like Hypnotic Rose or Iconic Iris, simply have different scents. Cultivating such information is not a simple or cheap exercise. The new definitions released by CMS expand the number of drugs eligible to be considered a "line extension" product. This ad became a meme around the internet, and the new product benefitted from the free promotion that came with all the GIFs and social media comments. We are all familiar with the spray bottles, which use the mechanical action of squeezing the trigger to propel a fan of droplets onto a surface. There are two types of product line extensions: These line extensions are typically related to the products a brand already creates. A customer that prefers a grape drink may not be a customer of the company due to the unavailability of such a product. Quelch and Kenny illustrate only one among many brand and product-line strategies that result from poor decision making. There is less risk, but there is less potential reward as well. Advanced Curcumin Elite Turmeric . The Nissan LEAF is a battery electric vehicle (BEV) that dominated the market for a decade. Hemp is a classification of Cannabis plants which have less than 0.3% THC content, or less. The second generation and current generation of the LEAF (2017 to present) was a far more conventional-looking car and brought the visual language from other Nissan models so that the LEAF didnt look so obscure. Low Depth. For example, if a company already sells a popular bag of potato chips, it may decide to create different flavors or sizes of bags of potato chips. In the a classic case of throwing out the baby with the bathwater, hemp and its usefulness got tossed out too. Not having to have the cleaning solution travel through a plastic stray and pump made for pennies has allowed the chemical engineers to reformulate. The second-generation LEAF gave drivers the option of one-pedal driving. I was aware that the Nissan LEAF was popular because they are ubiquitous amongst the cars plugged into the public charging ports. Just as in biological niches, where inhabitants constantly compete for resources and mutate over time, cereals, soft drinks, and other goods change and evolve. This may confuse consumers. They are trying to innovate on those crummy but ubiquitous bottles. These labels offer a product as good as or superior to the national brand leader at prices 30% to 50% below the leaders price. Sometimes aline extensionis called aproduct extension. One of the most significant risks associated with line extension is the danger of diluting and overexposing the brand. Product line extension is the practice of using an already established product's brand name to introduce a new merchandise in the same product category.

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