This document discusses line and brand extension strategies. It defines line extension as introducing new products that are slightly different from existing product lines to attract new customers. Brand extension involves using an established brand name in a new product category. The document provides examples of different types of brand extensions, such as using the same brand for similar products in new forms, flavors, prices, or customer needs. It also discusses extending brands into new geographic areas or demographics. Maintaining a classic brand name over the long term is also mentioned.

1. Line & brand extension
Presented to:- Presented by:-
Ast. Prof. Neha mam Priyank Singh

2. What is Line Extension
• When a company rolls out a new product that carries
slight differences from its existing product lines, it is
part of a product line extension.
• The object of a product line extension is bringing in
customers who may not be familiar with the
standard product line.

3. • Products in New Areas
• Businesses can benefit from introducing their successful products in
new geographic areas. When a product meets the needs of
customers in one city or state, the company can extend that
product line to meet the needs of customers in other states.
• Products for New Demographics
• A product line that shows that it meets the needs of one group of
customers often can be extended to meet the same or similar
needs of another group. Unilever, the company behind the popular
Dove beauty products for women, extended its product line with
"Dove For Men" skin care products in an attempt to appeal to a
different demographic while maintaining the trust that customers
place in the Dove brand name.

4. • Products at New Price Points
• Companies also can appeal to new customers by producing similar
products at different price points.
• Products for New Needs
• The biggest reason for a product line extension is meeting
customer needs that previous products have not addressed.

5. Line extension strategy

7. Brand extension
• Brand extension or brand stretching is
a marketing strategy in which a firm marketing a
product with a well-developed image uses the
same brand name in a different product category.
• A brand's "extendibility" depends on how strong
consumer's associations are to the brand's values
and goals.

8. Types of Brand Extension
• Similar product in a different form from the original
parent product. This is where a company changes the
form of the product from the original parent product.
(Snickers Ice Cream Bars identified in our brand extension study. The original
Snickers bar is a shelf stable candy.)
• Distinctive flavor/ingredient/component in the new
item. When a brand “owns” a flavor, ingredient or
component, there may be other categories where
consumers want that property.

9. • Expertise. Over time, certain brands may gain a reputation for
having an expertise in a given area. Leverage can be achieved
when extending into areas where this special expertise is deemed
important. (ex:- johnson & johnson baby products kit)
• Companion products. Some brand extensions are a “natural”
companion to the products the company already makes. (AMUL)
• Same customer base. Many brand extensions represent a
marketer’s effort to sell something else to its customer base.
• Ex:- VISA launched travelers checks directed to its credit card
customers.

10. One name brand
• Long term maintenance of a classic brand
name
• Kit Kat was launched in 1937. Since then, it has consistently
been one of the best selling chocolate bars on the market and
has acquired an instantly recognisable brand name and
identity. In 1997, British sales of Kit Kat amounted to some
£227 million, which made it easily the most popular
confectionery product on the market.