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. Show
The Product Line Extension can be in the form of new colors, forms, shapes, sizes, flavors, packaging, and ingredients. The main idea and agenda behind the same are to increase the sales and reach of the already established product at the market place. Examples of Product Line Extension1) Coca Cola: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. The main motive behind the same was to offer something or the other innovative to the loyal consumers of the brand with the edge of taste and flavor. Diet Coke is one of the most famous Product Line Extension of the brand. The brand has also launched regular coke in an array of packaging materials and sizes as well. Related: Marketing Strategy of Close up – Close up Marketing Strategy 2) Levis:The very famous retail famous apparel brand is one of the highly liked and adored brands by fashion lovers all across the globe. It is known for its shades and hues of blue jeans. But its Product Line Extension includes various fits for the various body types. Right from the narrow bottom, slim fit, comfort fit to baggy fits, and more; Levis has fits for every taste and body type. 3) Durex:The world’s most famous and favorite contraception brand is always high on the strategy of Product Line Extension. 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. The brand launches its new line of products with much fanfare and marketing gimmicks. Merits of Product Lines Extension
Related: 6 types of Product Mix pricing to push products in the market Demerits of Product Lines Extension
Vital considerations before indulging in Product Lines Extension1) Check the growth and progress of your existing product line :Before finalizing the strategy of Product Line Extension, it is always necessary to check how your current product is performing in the market. Consider the factors such as market growth, sales, profits, return on investment, and market share as compared to the products of the competitors in the market. It is also vital to take some time and let the existing product gain momentum. Aftermath gauges its market performance and then decide if you want to go ahead with the Product Line Extension. 2) Ask your customers:Asking your customers before taking a plunge into the Product Line Extension is one of the most significant decisions. Always ask your customers if they are happy with your product offering and if they want any sort of changes or alterations in the same. Also, ask them what the specific features are and attributes of the product that attracts them the most and makes them finally purchase the product. 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 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. 3) Take a look at the competition: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. And the same case is applicable whilst deciding on the business strategy of Product Line Extension. Take a look at your competitor’s product that is similar in nature and features:
It is always advisable to run a detailed competitive study and research before finalizing the strategy of Product Line Extension. 4) Have a look at your finances and available resourcesApart from conducting external research such as competitive and market study, it is also very imperative to conduct internal research as well. Have a look at your finances to check if you have extra funds in hand to launch a Product Line Extension. Have a look at your available resources on the front of strategy, ideation, manufacturing, and execution. Have a look if you have the required expertise, knowledge, and know-how to indulge in the Product Line Extension. Related: SWOT analysis of JCB 5) The product should remain exclusiveBefore getting your hands on the strategy of Product Line Extension, always keep in mind that it shouldn’t hamper or hurt the exclusivity of your product. 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. As quite a number of times, the customers are highly attracted to the product that is one of a kind and unique. ConclusionThe business strategy of Product Line Extension is applied and owned by quite many famous brands in the market, and it has worked wonders for them. But before taking the plunge, it is always advisable to conduct internal and external market research. |