2. Product Line Stretching
The definition of product line stretching is
essentially, introducing new products into a
product line. This means that company
produces more products in different ranges;
3. Successful Product Line
Stretching
• Sales was increased
• Access to different markets
• New customers
• Competitive ability
• Improving a reputation
6. Brand Extension
A common method of launching a new
product by using an existing brand name on a
new product in a different category. A
company using brand extension hopes to
leverage its existing customer base and
brand loyalty to increase its profits with a new
product offering.
For brand extension to be successful,
there usually must be some logical
association between the original product and
the new one.
8. Unsuccessful Brand Extension
Colgate’s Kitchen Entrees
Colgate decided to use its name on a
range of food products called Colgate’s
Kitchen Entrees. The idea must have been
that consumers would eat their Colgate meal,
then brush their teeth with Colgate
toothpaste.
This not only failed to draw customer
attention, but also reduced its sales of
toothpaste.
This brand extension was a total
failure because it breaks with all consumer's
associations to the brand's values and goals.