What are product line extensions?
Adding products to an existing product lineCould get overextended
Product line extensions refer to the introduction of new products or variants to an existing product line that is already established in the market. This is done as a way of expanding the product line by offering additional options to consumers. Product line extensions can come in different forms such as new flavors, packaging options, sizes, colors, or even ingredients. The goal of product line extensions is to capture new market segments, increase sales, and maintain customer loyalty by providing them with more choices.
For example, a company that produces potato chips may introduce new flavors or packaging options to meet the varying tastes and preferences of its customers. This could include introducing sour cream and onion flavor, cheese flavor, or spicy flavor. Another example is a cosmetic company that may introduce new shades of lipstick or add a new formulation to its existing product line in order to cater to the diverse makeup needs of their customers.
Product line extensions are often less expensive than launching an entirely new product from scratch, as they capitalize on the existing brand recognition and marketing efforts of the company. However, there is also a risk of cannibalizing sales from existing products in the same product line. Therefore, companies need to carefully consider the impact of product line extensions on their existing products and the overall brand strategy before introducing them to the market.
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