Line & brand extension

Presented to:- Presented by:- Ast. Prof. Neha mam Priyank Singh

What is Line Extension• When a company rolls out a new product that carries

slight differences from its existing product lines, it is part of a product line extension.

• The object of a product line extension is bringing in customers who may not be familiar with the standard product line.

• Products in New Areas• Businesses can benefit from introducing their successful products in

new geographic areas. When a product meets the needs of customers in one city or state, the company can extend that product line to meet the needs of customers in other states.

• Products for New Demographics• A product line that shows that it meets the needs of one group of

customers often can be extended to meet the same or similar needs of another group. Unilever, the company behind the popular Dove beauty products for women, extended its product line with "Dove For Men" skin care products in an attempt to appeal to a different demographic while maintaining the trust that customers place in the Dove brand name.

• Products at New Price Points• Companies also can appeal to new customers by producing similar

products at different price points.

• Products for New Needs• The biggest reason for a product line extension is meeting

customer needs that previous products have not addressed.

Line extension strategy

Product size

Color & flavor

Brand extension • 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.

• A brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals.

Types of Brand Extension

• Similar product in a different form from the original parent product. This is where a company changes the form of the product from the original parent product. (Snickers Ice Cream Bars identified in our brand extension study. The original Snickers bar is a shelf stable candy.)

• Distinctive flavor/ingredient/component in the new item. When a brand “owns” a flavor, ingredient or component, there may be other categories where consumers want that property.

• Expertise. Over time, certain brands may gain a reputation for

having an expertise in a given area. Leverage can be achieved when extending into areas where this special expertise is deemed important. (ex:- johnson & johnson baby products kit)

• Companion products. Some brand extensions are a “natural” companion to the products the company already makes. (AMUL)

• Same customer base. Many brand extensions represent a marketer’s effort to sell something else to its customer base.

• Ex:- VISA launched travelers checks directed to its credit card customers.

One name brand• Long term maintenance of a classic brand

name• Kit Kat was launched in 1937. Since then, it has consistently

been one of the best selling chocolate bars on the market and has acquired an instantly recognisable brand name and identity. In 1997, British sales of Kit Kat amounted to some £227 million, which made it easily the most popular confectionery product on the market.