Line extension
Line extension, or brand extension, is a marketing strategy in which a company introduces new products under an existing brand name. This allows the company to leverage the brand equity and customer loyalty associated with the original product to drive sales of the new products.
For example, Coca-Cola has successfully used line extension with products such as Diet Coke, Coke Zero, and Coca-Cola Cherry. By using the Coca-Cola brand name on these new products, the company was able to attract customers who are loyal to the original Coca-Cola product.
Line extension can be a cost-effective way for companies to introduce new products, as they do not have to establish a new brand name or build brand awareness from scratch. However, there is a risk that the new products may not align with the original brand image, leading to confusion or disappointment among customers.
Overall, line extension can be a powerful tool for companies looking to expand their product offerings and reach new customers while capitalizing on the strength of their existing brands.
Example of line extension:
- Apple introducing different models of the iPhone (e.g., iPhone XS, iPhone 11, iPhone 12)
- Toyota launching the Prius line with various hybrid models
For more information on line extension, visit Wikipedia.