The results from prior research regarding the effectiveness of product line extension strategies on market level brand performance are equivocal. Some studies show that brands benefit from horizontal line extensions while other studies show vertical line extensions as being a preferable approach to brand leveraging within a product category.
This question of vertical extensions is part of the more general issue of how the vertical structure of a product line relates to brand equity. The specific research questions addressed in this paper are 1 do premium or high quality products enhance the brand equity associated with the other products in the line
May 01 2018 Brand extension is categorized in two dimensions vertical extension and horizontal extension. Vertical brand extension refers to the launching of new products or services in the same product/service category as the parent brand but at a different price or quality point Keller and Aaker 1992 .
An appropriate strategy for achieving this is a product line extension strategy that increases the brand’s shelf space. Product line extension as a concept can be defined as the introduction of a new product that is a variant of the firm s existing product in a given product category Kadiyali et al. 1999 pp.339 340 .
Extension strategies. Developing new products is expensive and takes time so businesses will usually try to extend the life cycle of a product and prevent it from going into decline. To do this
Nov 09 2005 Product line extension was defined as the appearance of another product that a company introduces within the same market after its existing product. Drug prices were average wholesale prices from the Drug Topics Red Book. The relationship between product line extension and market success was examined using a logistic regression analysis.
Vertical Product Line Extension Strategies An Evaluation of Brand Halo Effect according to Range Level . By Éric Tafani Géraldine Michel and Emmanuelle Rosa. Cite . BibTex Full citation Publisher SAGE Publications. Year 2013. DOI identifier 10.1177/. OAI
The emphasis of product related diversification is on operational synergies because in this strategy production resources are shared to have a cost competitive advantage. In the financial literature the term operational synergy has been used as a synonym for economies of scope Tanriverdi and Vendkatraman 2005 .
Jun 14 2021 Here are five different extension strategies that could work for you. Line Extension. A line extension is when a parent brand launches a new product line in a category already familiar with its customers. With a line extension brands don t have to create new categories. An excellent example of a line extension is when soft drink companies
Our framework is superior to Kotler s 1991 framework product line stretching because whereas Kotler s framework could apply for line extensions and multibrand strategies with different brand names our framework is more specific in terms of it being relevant for line extensions only.
Dec 14 2020 A typical growth strategy in fast moving goods is to piggy bank on a brand name and launch another variant with a twist a different flavor smell better feature s etc. . We
Mar 03 2019 Product Mix Strategy. A product mix definition is the list of products and/or services a business offers for sale. For a company selling dog collars a product mix example could be all the different styles and designs of collars. Development of successful product mix strategies depends on analyzing existing products for market growth and market
Nov 09 2005 A line extension is a variation of an existing product.15 The variation can be a new formulation of an existing product or a new modification of an existing molecular entity. The general marketing literature documents many types of line extensions such as novel versus older line extensions first time vs. repeated
Mar 05 2018 The four brand strategies are line extension brand extension new brand strategy and flanker/fight brand strategy. Line Extension Brand Strategy. The line extension brand growth strategy involves creating additional products in response to consumer needs. A closer look at line extension strategy would be easier to see from an example.
The brand halo effect for vertical product line extensions is analyzed using the central nucleus theory. The empirical study is based on experimentation linked to six brands in the automotive sector. This research shows that central brand associations are transferred to the vertical product line extension regardless of range level low middle or high end range and that such
The difference between the two banks‟ strategies is the direction of the vertical extension where Capitec is utilising an upward VSLE and Absa is utilising a downward VSLE. Not enough attention has been given to service line extensions compared to extensions of
Step 3 of a Product Line Extension Strategy Choose The Right Licensee Once a product category that qualifies for brand extension has been identified and you the licensor has chosen brand licensing as the preferred method to achieve this extension then it is time to scout for prospective licensees within the selected product category.
Dec 02 2015 The products under the same brand name within the same category compose of a product line. 89 new products are introduced through line extensions Aaker 1991 . Scholars divide product lines into vertical product lines and horizontal product lines.
Mar 03 2016 A product line extension is the use of an established product brand name for a new item in the same product category. Line Extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors forms colors added ingredients package sizes.
Nov 21 2016 5. Make the brand extension a logical fit The new product must be a logical fit to the brand compatible expected and follow the current brand story. The link between the new product and the parent brand should be easily tracked. The biggest brand extension pitfalls fall into this category. 6. Create a Brand Extension Strategy
May 26 2021 To cope with the non deceptive counterfeiters one of the strategies for the authentic firm is to engage in vertical product line extension by additionally introducing a new upgraded high quality product such that the non deceptive counterfeiters are unable to copy the new product within a certain period.
The vertical product line extension strategy has become a common practice for companies seeking to provide a range of products under an existing trademark from entry level to premium products for product categories where branding is a differentiating factor Keller 2008 . The vertical product line extensionrepresents a new
Apr 13 2019 Various distinct strategies can support profitable growth and development. Two examples of these strategies are Vertical and Horizontal expansion. Although both are viable each method depends entirely upon your goals and resources. Vertical development consists of abiding by a natural chain of value added commerce.
In contrast a vertical brand extension involves the introduction of a product or service in the same product category as the core brand but at a different price point or quality level. We suggest that vertical brand extensions are actually line extensions because introducing a new product or service into an existing market is an extension of
Nov 02 2015 The most recognized product extensions might be new flavors or different package sizes of a product. For example Diet Coke would be a great example of a product line extension but if Coke came out with a new line of juices it would be considered a brand extension. One of the top brand extensions that I will discuss today is McDonald’s McCafe.
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