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HorlicksBrand Extension and Product Line Extension 1 SIVAKUMAR 2 Origin1873 J a m e s H o r l i c k Wi l l i a m =f o u n d e d J W Ho r l i c k sI n I n d i a o v e r 2 Bi l l i o n c u p s o fHo r l i c k s a r e d r u n k e v e r y y e a r 3 HorlicksThe Market Leader 4
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A product line extension is when a company creates a new product in the same product line of an existing brand The strategy for an extension could be a
What is A Product Line According to Philip Kotler a product line can be defined as a group of products that are closely related because they function in a similar manner and sold to the same customer groups are marketed through these same types of outlets fall within given price range In the above definition Philip Kotler emphasizes a few points which I want to discuss below
A product line extension is the launch of a new product in a product category where the brand already sells products The new product sells alongside the existing products Typically a line extension is a new flavor scent formula color size or style of a product in a current product line
Product line extension is a concept we are all familiar with whether we know it or not It s taking an existing product and making various versions of it to satisfy consumers different tastes
Individual products exist within each of the product lines In other words Gillette s line of blades and razors extends to Lady Gillette Mach 3 Sensor and others
Not a pivot or a line extension A full brand pivot or extending an existing product line with a new product are NOT brand extensions Note that a brand extension is not a pivot A brand pivot is when a company typically a startup completely gives up making a type of product
Potential product cannibalization Probably the main concern with a product line extension particularly for a simple variation of an existing brand/productsuch as a flavor or size variationis cannibalization of existing sales That means that the sales generated by the new products are at the expense of existing products that are
Brand Extension is often confused for Line Extension and vise versa So let s clarify these two terms with a few examples Brand Extension is a marketing strategy according to which a well known brand uses the same brand name to enter into a totally unrelated product category is done primarily to leverage on the existing brand equity
Product Line Extension The term product line extension refers to the situation where a company introduces a new product that somewhat different than the company s existing range of products The idea behind this strategy is to expand the number of options available to a customer under a single brand Some of the major benefits of the
A line extension is when the brand creates a variation of an existing product to target new customer segments Product line extension examples Now that you have an idea of what line extensions are let s look at two real life examples Bushbalm Skincare provider Bushbalm has an extensive product line that has expanded over time The brand
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A line extension is the extension of the product line while the brand extension is the extension of the width of the product mix In simple wordsLine extension involves an extension of the existing product category For example Coca Cola releasing its Diet Coke variant was a line extension where the product didn t release in a
A line extension is a strategy to offer customers more options by changing your existing product lines slightly Think of this as adding a bit of variety to your current offerings without going too far off base Take Hanes for example
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Brand extension is the use of the same brand name to launch a new product in a different 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 Line extension only represents an increase in a product s line s depth
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Typically a line extension is a new flavour fragrance formula colour size or style of a product in a current product line WAMCO s Peak 1 2 3 milk is an extension of the popular peak milk For example Diet Coke is a line extension of the parent brand Coke While the products have distinct differences they are in the same product category
Whether or not to extend a product line is above all a matter of common sense At a bare minimum an extension must pass the simple tests of consumer benefit share of requirements growth brand
product line extensions In contrast the transfer of peripheral associations appears to be range dependent increasing or decreasing linkages between such associations and the product line extension according to the range level considered Key words Vertical product line extension brand image halo effect social representations
Brand extension is the use of the same brand name to launch a new product in a different 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 Line extension only represents an increase in a product s line s depth
product line extension definition 1 the addition of a product or service with different features sizes prices etc to an Learn more
product in the same product class or to a product category altogether new to the company it is called horizontal brand extension According to Aaker and Keller 1990 based on their focus there are two varieties of horizontal brand extensions viz line extensions and franchise extensions In line extension a current brand name is used to
Top Product Line Extension Examples to Watch Consumer packaged goods CPG brands are the reigning royalty of product line extension Think Tide s Free Gentle line Dove s Men Care or the classic example of Diet Coke
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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 And a product category is related set of productssuch as dairy products computer products furniture motor vehicles and so on
Product extension is the use of an established brand name for a new product in the same product category as an existing product line This has several common variations
Product Line Extensions A product line extension is the use of an established product s brand name for a new item in the same product category 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 or package sizes
The concept of Product Line Extension can be defined as a business strategy where the firm plans to expand its established product brand name with the new range of items in the product category The Product Line Extension can be in the form of new
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As an extension to this simple framework we also consider other market factors that could affect the firm s decision to expand its product line Industry Clusters The tremendous expansion of the craft brewing industry over the past 30 years also led to extensive product differentiation and introduction of a number of styles of beer never
Product extension is a type of branding strategy The product extension is also known as line extension where a parent brand covers a new product under a product category it currently serves with new color sizes pack size and forms Well established consumer goods company have successfully implemented this strategy and have grown their sales
Product Line Extension Strategy 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 Extending a product line involves adding new features to existing products rather than developing completely new products This
