Whats the Difference Between Line Extension and Brand Extension? Wiser Retail Strategies

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line extension meaning

And if the competitor’s products range better in terms of features and attributes, it can affect the sales and profits of the firm. The concept of Product Line Extension can be defined as a business strategy where the firm plans to expand its established product brand name with the new range of items in the product category. Both Lux soap and light skin are tied to glamour and Bollywood, so a skin-whitening soap was a natural line extension for the Lux line of soaps. Lux White Impress can be purchased as both bar soap, and a body wash.

Line Extension vs. Brand Extension

Additionally, they may also choose to create new products that utilize variations of size, price, or packaging from existing products. Food and beverage companies may require flavors for new products, product line extensions (e.g., low fat versions of existing products) or changes in formula or processing for existing products. A line extension can reinvigorate a product line, bringing it back into the public awareness by drawing new customers and higher profits. A brand extension can increase profits by allowing manufacturers to tap into new markets and offer increased diversity in their inventory. Line extensions and brand extensions both allow companies to promote new products with reduced promotional costs because the new lines or brands benefit from being part of an established name. A line extension is a strategy to offer customers more options by changing your existing product lines slightly.

Similarly, the timeline of construction of the south line extension was also pushed up several years due to increasing population and traffic volume. But after the arrival of the harbour railway line extension in the 1990s, there was an increase in population. A line extension of lower quality is called “trading down” or “down-market stretch”. The word in the example sentence does not match the entry word. Get ready with Test&Train , the online practice tool from Cambridge.

  • Marketing executives and product managers develop and launch products as something to do.
  • In a traditional office, staff needs time off for doctor visits, to pick up kids from school, visit ailing parents, etc.
  • Unilever India extended their line of soaps with a promoting lighter skin.
  • There are two risks you need to consider before extending a product line or band.

French fries are the default side dish at most fast food places and are more than half the reason that fast food is unhealthy. Burger King extended their line of french fries with ones with less fat. Now, people seem to want Tesla’s first, and if the availability or price isn’t line extension meaning acceptable for them, then they look to BMW, Nissan, Hyundai, or Chevrolet. Zero Emission is the technology branding that Nissan used to differentiate the LEAF from the popular Toyota Prius, a more efficient car, but still emitted CO2 and other pollutants that the LEAF does not.


It would be almost impossible for an engineer, designer, or architect to describe in words the shape, size, and relationship of a complex object. The firm can conduct surveys with the customers on a one to one basis or through the digital mediums. And the data collected works quite handy and useful before deciding the next manufacturing and product formulation strategy. With the strategy of Product Line Extension, the firm is able to cater to the different segments of the customers that prefer the product in other variants such as shape, color, flavor, and more.

A line extension is within the same category, while a brand extension moves beyond. For example, when a soft drink company offers a new flavor of soda. Or when a toothpaste company has a product that focuses on whitening teeth and then provides a toothpaste that reduces tooth sensitivity. A new variant of an existing product that competes in the same category. From the line extension to brand extension, however, there are many different types of extension such as brand alliance, co-branding or brand franchise extension. In the meantime, start building your store with a free 3-day trial of Shopify.

Consumers might feel less inclined to support the company’s new products in the future. Coca-Cola also launched a product, Tab Clear, with the sole purpose of confusing the buyers of Crystal Pepsi. Coke’s product was a diet soda with artificial sweeteners, which cut right against Crystal Pepsi’s brand image of being natural. Executives at Pepsi were committed to packaging the product in a clear bottle despite the warnings from their food scientists. The clear bottle ultimately made the drink spoil in direct sunlight, much to the disgust of the customer who tried to drink it. Franchisees and people from the head office have a tough relationship.

Why is product line extension important?

The Product Line Extension can be in the form of new colors, forms, shapes, sizes, flavors, packaging, and ingredients. You have done a really good study on different brands and their strategy. I consulted for a franchised national pizza restaurant, and we had to market the menu changes as much to franchisees as to end customers. You should consider using P&G’s levels of execution when evaluating your new products.

line extension meaning

The franchisees are both investors, licensors, and customers of corporate. They have a lot of their money invested in the store and are risk-averse. An idea that is great for one level of execution but diminishes the other would not be greenlit. All of P&G’s innovations like Clean Freak Mist need to work at the levels of product, packaging, brand communication, retail execution, and value. I am glad Unilever is taking steps to improve their marketing so that people aren’t left hating their natural appearance, but I do no condemn them for providing products that were demanded by the market.

Additionally, extending a brand’s product line can also help to improve customer perception by giving customers more options and making the company seem more responsive and customer-focused. Another excellent use for phone extensions is to track and analyze call patterns, specifically for customer-facing departments like sales or tech support. An organization will often have multiple products and services. Whether or not you have dedicated teams for each product line it is still useful to see which products need more support and why. They allow employees to work from multiple locations or even on the road as necessary.

In 1997, Nissan experimented with theAltra, a sizeable electric wagon or van, but it only sold a few hundred in Japan and the United States. In the same year, Nissan released the Hypermini, which was a tiny commuter car for the urban market in Japan. Olive oil has some legitimate health benefits over other oils, but it has now achieved a sacred status; any food dish that contains olive oil is assumed to https://1investing.in/ be better. Unilever is aware that the presence and advertising of their products, such as Lux White Impress and Fair & Lovely, have contributed to discrimination against darker-skinned people and a loss of self-worth. TV spots have historically featured women struggling to impress people until they use the products, flaunt their dramatically lighter skin, and get the job or proposal they were seeking.

What Is Product Extension in Marketing?

Is using a security service for protection against online attacks. The service requires full cookie support in order to view this website. Line Extensionmeans an extension of the Company’s overhead or underground electric distribution facilities within its franchise territory. Line Extensionmeans a water or sewer main constructed from the termination point of an existing District main to provide service beyond the existing main. Alternatively, check out theMarketing91 Academy, which provides you access to 10+ marketing courses and 100s of Case studies. Before getting your hands on the strategy of Product Line Extension, always keep in mind that it shouldn’t hamper or hurt the exclusivity of your product.

Also, Daron Payne got a similar extension after getting placed on the franchise tag by the Washington Commanders. All of these extensions show the fact that Miami Dolphins defensive lineman Christian Wilkins will get extended at some point but the question will be for the terms of the deal. About Us Learn more about Stack Overflow the company, and our products. By signing up for a free trial of VoIPstudio, you will have complete access to all the features available for your business phone system. Do you have a mobile workforce that often travels for work?

Honda’s introduction and management of the Si trim level in the Civic product line have envigorated the brand. The Honda brand has benefitted from a reputation of being fun-to-drive and a brand association with racing. The Si trim level endured through the years, and predictably gave the Civic of the time a high revving engine, manual transmission, and upgraded brakes and suspension. It is the model people seek if they want the comforts and presentability of a compact sedan, but want a little excitement in their lives too. Of the 80 races between 1988 and 1992, McLaren Hondas won 44 of them.” Their success in Formula one directly benefitted the Honda Civic Si and the reputation it has today. Film and television executives actively cast light-skinned Indian men and women as the protagonists, especially if there is a romantic element to the story.

For Coca-Cola, the strategy to reach you may be Coca-Cola Vanilla, a flavored version of the original product. With a product line extension, you have an existing brand. You are looking to add slightly different products to this brand. With a brand extension, you are venturing into other product categories.

When someone calls your phone number, all devices in the house will ring allowing you to answer the call from anywhere. As your staff numbers grow, so do your communication requirements. Every new employee needs their own phone number and ways to contact colleagues in other departments or offices.

Many brands introduce variations just to monopolize store shelf space. Ever wonder why there are so many variations of something as simple as peanut butter? Because every one of those SKUs takes up a space that a competitor can no longer take.

In 2015, Unilever responded to the market preference for healthy and simple ingredients by replacing some of the soybean oil in their standard mayonnaise with olive oil and marketing it as a new product. The variant also leaves less space on grocery store shelves for competing products. Hello Products is a very fast-growing brand because of its alignment of values with its customers. Both the company and the customers are willing to experiment with personal care products with interesting and natural ingredients. The addition of hemp seed oil makes the toothpaste more soothing and moisturizing to the mouth and gums.