This document discusses product line stretching and brand extension strategies. It provides examples of each strategy's success and failure. Product line stretching involves adding new products within an existing product range that have additional or different features. Converse is given as an example of success, gradually adding new styles over decades to target broader audiences while maintaining the brand. Croc's failure is analyzed, with mistakes including over-saturating the market, undermining exclusivity, and trying to target all consumers. Brand extension involves using an established brand name in a new product category. Ralph Lauren extended its Polo brand successfully to home goods. In contrast, BIC's extension to women's pantyhose caused confusion as the products lacked

1. PLANNING PRODUCT STRATEGY
MARKETING MANAGEMENT
Prof: Ivashkova N.I.

2. PRODUCT LINE STRETCHING
-is increasing the number
of products within an
existing product range
with similar products that
have additional or
different features
3 kinds:
 Upward Stretching
 Downward Stretching
 Two way Stretching

3. PRODUCT LINE STRETCHING
(EXAMPLE OF SUCCESS)
Target Market:
 Intro: Originally target sports players basketball
 1940’s emerged in pop culture
 Growth: Target “youth”  female and male
 Musicians, artists, film stars
 Maturity/Decline/Remarketing: All ages, all sizes
 Pass through generations Converse “lifestyle”
Product Planning:
Innovation- new style basketball shoe
40s- boots and war gear for soldiers, football, running
50s- work boots
60s- blue heel patch, higher rubber, wrestling
70s- skateboarding, ski boots, heel patch change, smaller toe, longer tongue
80s- basketball shoe redone, funky colors to match the times, thinner laces, bigger toe
90s- shorter, flat laces
Today- new materials, simpler logos
Product line stretching
doubled sales
Converse's higher end
shoes: new segments
and target different types
of customers

4. PRODUCT LINE STRETCHING
(EXAMPLE OF FAILURE)
2006- a wave of success
Strategy to diversify the line
and acquire new business
Sales dropped
Millions of dollars debt and
huge surplus of shoes
Mistakes of CROCS:
1. Flooded market with the product+ new styles =
undermine brand’s specialness and
exclusiveness
2. Buying up others companies (Teva and Fury
Hockey) = destroyed power of brand
3. Trying to focus on all consumer targets
Jibbits

5. 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.
 The new product is called a spin-off.
 Organizations use this strategy to increase and
leverage brand equity.

6. BRAND EXTENSION
(EXAMPLE OF SUCCESS)
Polo Ralph Lauren
 Recently reported annual
revenue of $1.47 billion and
profits of $120 million.
Ralph Lauren's Polo brand
successfully extended from
clothing to home furnishings
such as bedding and towels.
Both clothing and bedding are
made of linen and fulfill a
similar consumer function of
comfort and hominess.

7. BRAND EXTENSION
(EXAMPLE OF FAILURE)
BIC Company
 known for its disposable
pens, its disposable razors,
and its disposable cigarette
lighters.
 They created a line of
women’s disposable
pantyhose:
• Production and distribution
problems
• No link between the products
• Consumers were totally
confused

8. THANK YOU FOR ATTENTION!
ANY QUESTIONS?