Product line stretching and brand extension involve introducing new products under an established brand name in order to leverage brand recognition and equity. This allows companies to expand their product ranges from higher to lower end offerings. Examples show both successful extensions, like Danone milk products and Baltika Beer adding various types, and failures when new products did not meet consumer expectations, such as Crystal Pepsi and McDonald's Arch Deluxe hamburger. Effective brand extension grows brand awareness while ineffective ones can damage the brand's reputation.

1. Product Line Stretching
Introducing new products into a product line; the use of an
established product’s brand name for a new item in the same
product category.
This means that company produce more products in different
ranges; from higher end to lower end products.

2. J7 Juice
• J7 means Seven Juices in 1992
• Within 8 years brand stretched by 3 times – 9
juices+11 nectars

3. Baltika Beer
• Beer appeared in 1993 as «Baltika Original»
• Added: «№ 1 Special», «№ 2 Extra» и «№ 3
Blonde», and «Original» became № 4
• Now: 13 types of beer+4 types of beer
coctails+snacks

4. Danone milk products

5. Green Coke
• Healthy lifestyle trend
• New version - «Coca-Cola
Life»
• Positions as healthy alternative
• Green label instead of red
• If green = life, then red=death

6. Crystal Pepsi
• Crystal Pepsi — without caffeine
• Healthy alternative
• Consumers got used to the color of classic
Pepsi
• failure

7. Lay’s Frito-Lay WOW!
• Fat-free chips – too good to be truth
• Fat was substituted by very harmful staff called
“Olestra”
• Digestive problems

8. McDonald’s Аrch deluxe
• The Arch Deluxe was a signature hamburger sold
by McDonald's in 1996
• marketed specifically to adults
• The Arch Deluxe was a quarter pound of beef, on a split-top potato
flour sesame seed bun topped with a circular piece of peppered bacon,
leaf lettuce, tomato, American cheese, onions, ketchup, and a
"secret" mustard and mayonnaise sauce
• one of the most expensive flops of all time

9. Brand extension
• Brand extension involves the use of a brand
name established in one product class as a
vehicle to enter another product class.

10. Brand extension by Lady
Gaga

12. Brand extension by Apple
in 1986

13. Creative brand
extension by Apple in
1986

15. Brand extension by Camel

17. Brand extension by Harley
Davidson

18. Brand extension by Harley
Davidson

19. Bran extension by
Caterpillar

20. Successful brand extension
by Caterpillar

21. Brand extension
by Xerox