What are product line extensions and how do they work?
Posted on Aug 06th 2021
What is a product line extension?
Line extensions allude to the expansion of a current product line. This is the point at which an organization with a set up brand presents extra things in an item category. The organization utilizes the value of the existing item to market and introduce new things to the consumers. The objective of line extension is to fulfill a refined client segment on the market.
There are two kinds of product line extensions:
Horizontal extensions, which include keeping up similar cost and nature of an item however changing variables like tone or adding ingredients to distinguish the items.
Vertical extensions, which include expanding or diminishing the quality and cost of an item to make a lesser quality or luxury item.
Advantages of Product Line Extensions
A product line extension is a part of each organization's advertising strategy. It is an okay method to address the issues of different client sections and can be utilized as a good tool to expand a brand's control over the market.
It improves brand awareness in a good way:
Line extensions are generally well as compared to entering another item classification. You as of now have a fruitful brand, so any connected items you deliver will probably be welcomed by client sections. Customers may know your image but are trusting that the right products will come their way.
It gives clients more options:
Maybe the clearest benefit to line extension is that it gives clients more options. The customary perspective on the decision is that it's a bad choice and that having more options can prompt decision fatigue. In any case, that is not generally the situation—you simply need to discover the balance.
It increases the profits:
Line extensions are a fast and minimal cost approach to spike sales temporarily. An organization with a setup creation cycle and the ability to deliver new items implies a lower upfront investment.
Organizations frequently extend product lines to increase interest in products and decrease competitive threats.