Line extension
Line extension is a marketing strategy used by companies to leverage their existing brand by introducing new products in the same product category. It involves extending the product line to include variations of the original product or new products that cater to the same target market.
For example, a company that sells shampoo may introduce a new line of conditioners, styling products, or treatments under the same brand name. By doing so, the company can capitalize on its existing brand equity and customer loyalty to drive sales and increase market share.
Line extension can be a cost-effective way for companies to introduce new products without having to create an entirely new brand. It allows them to leverage the success of their existing products and benefit from the brand recognition and consumer trust that they have already established.
However, line extension can also pose risks, such as diluting the brand image or cannibalizing sales of existing products. Companies must carefully consider the potential impact on their brand and market position before deciding to pursue a line extension strategy.
Benefits of Line Extension:
- Expands product offerings
- Capitalizes on brand equity
- Increases market share
- Enhances customer loyalty
Overall, line extension can be a powerful tool for companies looking to grow their business and reach new customers within their target market.
For more information on line extension, you can visit Wikipedia.