Line Extension: Out of Ideas on How to Continue Company Growth?

Moreover, it cemented the path to launching new products like the iPhone, which sold over 77 million units in the first quarter of 2018. Most of the time, the existing loyalty of the consumers helps companies widen their reach. Consumers have to make several choices in a short period whenever they’re shopping. So, naturally, they tend to base their decisions on their previous knowledge or experience. To remain relevant in the market, the brand’s competitors must likewise pull up their socks and devise a plan for Product Line Extension.

In that case, you can route all calls to the manager first and then to a team member only if the manager is unavailable. Not everyone within the business needs an extension while others may well require a fully-fledged virtual number. Typically, senior executives and those in roles like reception will need numbers. Other employees within a department like technical support or accounts can get by with extensions. As your staff numbers grow, so do your communication requirements. Every new employee needs their own phone number and ways to contact colleagues in other departments or offices.

It is also very crucial to ask them if they are actually looking for any sort of variations in the product in terms of color, shapes, flavor, size, packaging, and more. The brand has also launched regular coke in an array of packaging materials and sizes as well. Over its successful and vibrant years in the market, the beverage giant has launched various versions such as regular coke, vanilla coke, and cherry coke amongst others.

What’s the Difference Between Line Extension and Brand Extension?

Because the brand, or corporation, is a well-known name, the name alone might entice people to try new goods that are wholly unrelated to the earlier product lines. The competitors of the brand also pull up their socks and come up with the strategy of their Product Line Extension in order to stay relevant in the market. And if the competitor’s products range better in terms of features and attributes, it can affect the sales and profits of the firm.

They are both virtual in the sense that they are not attached to a specific location or zip code. Both are made up of numbers, although extensions are often shorter. The difference between the two depends on the context in which they are used. Project teams or departments can have their own extensions as well.

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On the other hand, a misfired brand extension can degrade the reputation of the parent brand. The firm earns a competitive advantage in the market against its contemporary brands as is able to serve the consumers with a wide array of options. The options can range from flavors, shapes, sizes, price, packaging, and much more. With more number of products in a similar line and type, the brand gets more shelf space in the retail stores.

• However, the company used its popularity to sell something that could create a related effect.
• With extensions, you can connect every link in your company to each other and to you.
• But, you don’t want to overexpose your brand to the point where consumers are confused about what types of products you offer.
• If a customer does not know the extension number of the person they’re trying to reach, the auto-attendant allows them to select the department and forward the call to the correct extension.
• But shortcuts taken in product development came back to haunt Pepsi, and many people who tried Crystal Pepsi never came back for a second bottle.

It’s possible by sharing a handful of external lines through extensions. This system works because employees will not use the phones at all times. There are two risks you need to consider before extending a product line or band. First, any time a company introduces a new brand or line, the company name could become tarnished if the product proves to be an immense failure. Consumers might feel less inclined to support the company’s new products in the future. For example, if a soft drink producer launches a line of juices or bottled water under its brand name, this is an example of brand expansion.

Test new product line extensions in small quantities

https://1investing.in/ and beverage brands are poised to leverage the hype from new products because they can make flavor changes relatively easily. A line extension is within the same category, while a brand extension moves beyond. A new variant of an existing product that competes in the same category. Companies serving the middle market might decide to stretch their line in both directions.

Practically, when line extension meanings apply a product extension strategy they can often benefit from the new addition or additions. This is as extending their product line enlarges their product portfolio and as a result provides the consumers with more variety to choose from. This is positive, as consumers tend to enjoy being able to have choice and through expanding a brands product line, the brand is providing this choice. Next, you’ll need to understand how promotional displays factor into buying decisions.

Many a time, the unique and exclusive appeal and attributes of the original product are killed owing to the number of options and alternatives available. If the Product Line Extension if not very well received by the target audience, it affects the brand loyalty and value of the original product. The world’s most famous and favorite contraception brand is always high on the strategy of Product Line Extension. Launching a new product in an existing line is reasonable if there is a strong reason.

However, phone extensions work differently in a consumer or business context. Brand extensions use the same brand to announce new products to clients, using the existing consumer base to secure a strong launch. As a result of its ability to provide consumers with a diverse range of alternatives, the company acquires a competitive edge in the market over its current competitors. Flavors, forms, sizes, pricing, packaging, and other factors might all be considered. With a greater number of items in the same line and kind, the brand receives more shelf space in retail outlets.

Line Extensionmeans the provision of facilities necessary for delivering electrical energy from the point of origin to one or more of the customer’s points of delivery. Product-line stretching not only provides customers with more choice, it strengthens the company against competitive attacks. A small group of people online with a trained moderator to chat about a product, service, … As quite a number of times, the customers are highly attracted to the product that is one of a kind and unique.

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The strategy for an extension could be a different color or size, and it may have different ingredients or come in different flavors. The company is marketing the value and quality of the existing product line to introduce more choices to consumers. For example, a company selling clothes cannot just start selling electronic goods to their customer base one day. The brand extension should always be somehow related to the brand or the chain of existing products.

Even though hemp varieties of cannabis plants can’t be used to “get high,” the scrutiny and the stigma around the plant made it impossible for farmers to grow profitably. The company may wish to tie up lower-end competitors who might otherwise try to move up-market. If the company has been attacked by a low-end competitor, it often decides to counterattack by entering the low end of the market. Lastly, you’ll need to present your new product to them in a location and at a price point that will encourage them to make the purchase. First, you need to fully understand what shoppers expect from your brand and what existing gaps you can fill.

Phrases Containing extension

Brand extension is when businesses create new products that are in completely new product categories but still use the branded name of the company. For example, if a cookie company decided to start selling ice cream, drinks, and gum. The key difference between line extension and brand extension is that line extension typically involves creating new products that are variations of or closely related to their existing products. Whereas brand extension involves using an existing name or identity to launch a new product in a different category. Both strategies can be effective ways to expand and diversify a company’s product portfolio, but they must be implemented carefully to maintain brand consistency and avoid alienating existing customers. When discussing line extension and brand extension, it is useful to explore the potential risks of these processes as well as when and why they happen.

This is a good strategy to leverage if you have especially strong brand equity. While you may be familiar with their sportswear lines and accessories, did you know they sell shower caps? Very few brands would be able to pull that off and have such a seemingly unrelated product fly off the shelves. It is a testament to the strength of their brand and understanding of what their customers are willing to pay for.

• The sauce products are sold as Hellmann’s in central and eastern US and Canada, and Best Foods on the west coast.
• It normally cannot deviate too far from the primary service or enter a considerably different pricing tier since this is likely to generate consumer confusion.
• Brand extensions use the same brand to announce new products to clients, using the existing consumer base to secure a strong launch.
• An advantage to downward product line extension is it creates more competition between brands.
• Less advertising and communication is required because of the similarity to the old and well-known products.

Many brands find themselves at a point where they have achieved some success with their line of products, and they are feeling pressure from investors and business partners to keep growing. The solution seems to be launching more products similar to their successful product. Dove has also undergone a brand extension by adding lotions, deodorants, hair care, and men’s products.

An overextended brand name might lose some of its specific meaning. Or heavily extended brands can cause consumer confusion or frustration. It launches its condoms in the various flavors, textures, and types keeping the interests of the customers alive with them waiting for the new arrival of the same product category. Marketing executives and product managers develop and launch products as something to do. A new product launch is an easy way to fake progress to executives, and a product launch comes with clear deliverables and timelines.

But after the arrival of the harbour railway line extension in the 1990s, there was an increase in population. Get ready with Test&Train , the online practice tool from Cambridge. Build your confidence with hundreds of exam questions with hints, tips and instant feedback.

The firm can conduct surveys with the customers on a one to one basis or through the digital mediums. And the data collected works quite handy and useful before deciding the next manufacturing and product formulation strategy. Quite a number of times the marketers go overboard on the front of marketing and promotional expenditure with the Product Line Extension that adds to the overheads of the firm. It is essential that product developers and marketers compellingly answer all these questions for the executives and the people who will buy the new product. If a company has developed a new technology to solve an old problem, it makes sense to launch a new product alongside the old product and then transition the long-time users to the latest tech. Many brands introduce variations just to monopolize store shelf space.

The company has negotiated an extension to the deadline for its £275 million cash-and-paper offer, originally expected tomorrow. An extension is also any of the telephones connected to a central system, esp. in a business. Chair Calaycay stated that in the long term staff needs to keep the thought process open to possibilities, especially with the Gold Line extension, Metrolink services changes, and Bus Rapid Transit. If your original and primary product offering is quite unique in nature and you are offering its variants just to stay relevant in the competition can be a bad idea. And the same case is applicable whilst deciding on the business strategy of Product Line Extension. 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.

Or when a toothpaste company has a product that focuses on whitening teeth and then provides a toothpaste that reduces tooth sensitivity. Product line extensions help companies identify and tend to the needs of refined target markets. If applied appropriately, their advantage within the intended market is endless. To summarize, there are three sides to a line or brand extension roll out. Oral-B has also extended its brand, though not dramatically, with dental floss, floss picks, whitening products, and toothpaste.