Post on 07-May-2015
PLANNING PRODUCT STRATEGYMARKETING MANAGEMENT
Prof: Ivashkova N.I.
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
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 shoe40s- boots and war gear for soldiers, football, running50s- work boots60s- blue heel patch, higher rubber, wrestling70s- skateboarding, ski boots, heel patch change, smaller toe, longer tongue80s- basketball shoe redone, funky colors to match the times, thinner laces,
bigger toe90s- shorter, flat lacesToday- new materials, simpler logos
Product line stretching doubled sales
Converse's higher end shoes: new segments
and target different types of customers
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
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.
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.
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
THANK YOU FOR ATTENTION!
ANY QUESTIONS?