Product line stretching

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Product Line Stretching & Brand Extension Made by: Solovyeva Tatiana

Transcript of Product line stretching

Page 1: Product line stretching

Product Line Stretching & Brand Extension

Made by:Solovyeva Tatiana

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Product Line Stretching

The definition of product line stretching is essentially, introducing new products into a product line. This means that company produces more products in different ranges;

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Successful Product Line Stretching

• Sales was increased

• Access to different markets

• New customers

• Competitive ability

• Improving a reputation

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Successful Product Line Stretching

• New customers

• Selling millions of units per year

• Company became more popular

• Improving of reputation

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Successful Product Line Stretching

• Sales was increased• New customers• Competitive ability• Improving a reputation

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Brand Extension

A common method of launching a new product by using an existing brand name on a new product in a different category. A company using brand extension hopes to leverage its existing customer base and brand loyalty to increase its profits with a new product offering.

For brand extension to be successful, there usually must be some logical association between the original product and the new one.

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Successful Brand Extension

Colgate tooth brushes

• Sales was increased• New customers• Competitive ability• Improving a reputation

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Unsuccessful Brand Extension

Colgate’s Kitchen Entrees Colgate decided to use its name

on a range of food products called Colgate’s Kitchen Entrees. The idea must have been that consumers would eat their Colgate meal, then brush their teeth with Colgate toothpaste.

This not only failed to draw customer attention, but also reduced its sales of toothpaste.

This brand extension was a total failure because it breaks with all consumer's associations to the brand's values and goals.

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Thank you for attention!