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Product line extension
A product line extension is the use of an established product brand name for a new item in the same product category.
Line extensions occur when a company introduces new items in the same product category under an established brand name. These products might adjust the original with new flavors, forms, colors, added ingredients, or different package sizes. This is done to satisfy a refined segment in the market.
This differs to brand extension, in which an established brand name is used for a new product in a different product category.
There are two types of product line extensions, horizontal and vertical.
Horizontal extensions consist of keeping the price and quality the same, but altering factors like flavour or colour to differentiate the products.
Vertical extensions consist of increasing and decreasing the quality and price to create inferior and luxury goods. These product line extensions are often closely related to existing products in a brands portfolio. Brands are able to target specific consumers through this approach.
If applied appropriately product line extensions can help companies identify and tend to the needs of target markets.
Product line extension gives consumers greater choice.
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Product line extension AI simulator
(@Product line extension_simulator)
Product line extension
A product line extension is the use of an established product brand name for a new item in the same product category.
Line extensions occur when a company introduces new items in the same product category under an established brand name. These products might adjust the original with new flavors, forms, colors, added ingredients, or different package sizes. This is done to satisfy a refined segment in the market.
This differs to brand extension, in which an established brand name is used for a new product in a different product category.
There are two types of product line extensions, horizontal and vertical.
Horizontal extensions consist of keeping the price and quality the same, but altering factors like flavour or colour to differentiate the products.
Vertical extensions consist of increasing and decreasing the quality and price to create inferior and luxury goods. These product line extensions are often closely related to existing products in a brands portfolio. Brands are able to target specific consumers through this approach.
If applied appropriately product line extensions can help companies identify and tend to the needs of target markets.
Product line extension gives consumers greater choice.