LINE EXTENSIONS

The product line is now far more

representative of customers varying quantity
needs.
It suggests the presence of usage
segmentation.
Customers differs in terms of their usage
quantities.
The brand has to fill the whole spectrum with
products as per the needs of various
segments.







EXAMPLE
Bisleri is the pioneering brand in the mineral water
category.
Originally, Bisleri used to come in a one litre bottle.
But recently, Bisleri has exhibited a spate of
innovations.
The brand launched bottles of different sizes and
quantities.
The Bisleri portfolio now includes one litre, 1.2 litre,
1.5 litre and 5 litre bottles.
LINE EXTENSION STRATEGIES
Product Sizes
Bisleri
1.1 ltr
Bisleri
5 ltr
Bisleri
1.5 ltr
Bisleri
1.2 ltr
Bisleri
.5 ltr
Colour
Etc.,

Pantene
Pink
Pantene
Black
Pantene
White
Flavours
Ingredient
Rasna
Orange
Rasna
Mango
Rasa Rose ,
etc
Colgate
gel
Colgate
Herbal
Colgate
Salt etc.,
Form
Vim
Liquid
Vim
Powder
Vim
Bar
WHY LINE EXTENSIONS?
In most of the product categories including fast moving consumer
goods, consumer durables and services, line extension has been
the name of the game.
It is an expansionist move.
The firms seem to seek growth more vigorously.

Brand Extensions


BRAND EXTENSIONS
Using an existing brand name to promote a product in a different
category, is Brand Extension.
The key difference between line and brand extension is the product
category.
In line extension the pdt. Category remains constant whereas in
brand extensions product category is a variable.
EXAMPLE
Ponds - Cold cream, Toilet soap Shampoo, Tooth paste,
Moisturising lotion, Talc & Face wash.
LG Television, Refridgerators, Computer monitors, Microwaves,
Air Conditioners, Washing Machines & Mobile phones.
Park Avenue Shirts, Shaving cream, Jeans, Belts, Perfumes,
Soap & Razar.
BRAND EQUITY- CORPORATE ASSET
Brand extension
Using an existing brand name to promote a product
in a different category. Eg.
Ponds
Cold
cream
Toilet
soaps

Face
wash
Talc Shampoo
Moisturising
lotion
Toothpaste
Park
avenue
Shirts
Shaving
cream
Jeans
Belt Perfumes
Soaps
Razor
ADVANTAGES
Enhance the parent brand image

Convey broader brand meaning to consumers

Increase market coverage and returns

Reduce risk perceived by customers & distributors

Increase efficiency of promotional expenditures , packaging, labeling
distribution channels

Revitalise the brand

DISADVANTAGES
Dilution of the existing brand image
Cannibalization
A disaster can occur
TYPES OF EXTENSIONS
Product Form Extension

Amul Milk Amul Condensed Milk

Real Juices Real Juice Concentrate
Companion Product The idea here is to capitalise on product complimentarity .

Colgate Dental Cream Colgate Tooth Brush

Gillette Razors Gillette Shaving Cream Gillette After Shave










SAME CUSTOMER BASE:-
It launch a range of products to meet the needs of this group of
consumer.Eg Loreals.
DISTINTIVE TASTE/INGREDIENT
To launch a brand in a different category.
Eg:-
Amul:- milk,icecream,chocolate,cheese,liquid fresh milketc.
MAGGI
Nestle India introduced the Maggi brand
in 1982

In 1997 ,Nestle changes the formulation
of Maggi noodles

In 1998, the sale of Maggi declined

In 1999, Nestle reintroduced the old
formulation of noodles
MAGGI EXTENSIONS
Veg.Atta Noodles
Dal Atta Noodles
Rice Noodles
IMAGE RELATED BRAND EXTENSION
The company leverage its image to launch new products.

Manufactured by Glaxo Smith Kline
Consumer Healthcare Products

Leader in health food beverages in
India

Horlicks holds 58% of market

HORLICKS EXTENSIONS
Horlicks Variants
Mother Horlicks
Horlicks Lite
Women Horlicks
Junior Horlicks
Horlicks Lite Bite
BARBIE
IM A BLONDE BIMBO GIRL, IN A FANTASY
WORLD.....LIFE IN PLASTIC. ITS FANTASTIC
Launched in March 1959
Fashion doll manufactured by
Mattel.Inc.
The doll was marketed as a "Teen-age
Fashion Model
The first Barbie dolls were manufactured
in Japan
Debuted at the American Toy Fair
in New York City

BARBIE EXTENSIONS
CATEGORY RELATED
EXTENSION
DETTOL
Dettol a brand of Reckitt Benckiser stood for trusted brand in
India since 1933
Popularity extends over 100 countries
Consumers-- King of Germ kill
Brand offers both rational & emotional benefits
Dettol perceived as --Doctors Friend
Dettols Extension
Dettol
liquid
Dettol
soap
Dettol
plaster
Dettol shaving
cream
Dettol
hand wash
Dettol
body wash
UNRELATED EXTENSION:-
Eg:- Reliance venture enter into the retail from
petroleum,textile..etc
COMPANY EXPERTISE
Companies uses their expertise to launch brand extension in
different product categories.
For eg Samsung uses is innovative ,technology to leverage its
expertise to make Samsung television,smartphone,refrigertors..etc.
COMPANY EXPERTISE
Brand Extensions often come in the forms of different product
category introductions using a common name but emanating
from a common expertise pool. This strategy is particularly seen
in Japanese companies.

Honda
Cars
Honda
Lawn
movers

Honda
scooters

BRAND IMAGE OR PRESTIGE
Status brand offer prestige,and hence create an image of the
product.
Eg:- Lifestyle,Designers..etc.
BRAND IMAGE OR PRESTIGE
A brand extension may involve a foray into unrelated product
categories based on a brands exclusive image or prestige value.


Steel, Automobile, Heavy Vehicles, Watches, S/W devpt. Training etc.,
DISTINCT FEATURES OR BENEFITS OF THE BRAND.
Eg:- the Himani Navratna oil specially made for cooling Purpose.

BRAND DISTINCTION
Many brands achieve distinction in the form of a unique
attribute, benefit or feature which gets uniquely associated
with the brand.
For instance, Parachute may have expertise of coconut
nourishment in customers minds over time. This would give
Marico Industries, the brand owner, the opportunity to launch
a variety of products exploiting this distinction.
Parachute
Hair
Oil
Shampoo
Cream
Cooking
Oil
Baby
Soap
Baby
Oil
FAILURE OF BRAND NAME TO
ADD VALUE
1. Negative association
2. Problem of fit
3. Cannibalization of parent brands sales
4. Creation of undesirable associations.
5. Weakning of existing association
6. Effect of brand crisis.