Limits And Benefits Of Product Line Extension

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BENEFITS AND RISKS OF PRODUCT LINE EXTENSION

Rapidly developing technologies, changing trends and societal norms affect not only individual’s lives, but also businesses and markets. In the market, most companies are seeking solutions to catch the market’s current trends to reach the people, or at least to survive. These solutions could be varied. They may be related to public relations, promotions, advertising, or they could be product-based or brand-based strategies. One of the product-based strategies is product line extensions. According to Oxford Dictionaries Online, the definition of product line extension is “the addition of a product or service with different features, sizes, prices, etc., to an existing range of products”. For example, Head & Shoulders brand has different variety of products for different user groups, which are anti-hair fall, smooth and silky, clean and balanced and so on, in the one single category that is hair cleaning product. These product line extensions could be very beneficial as well as being risky.
To begin with the benefits, product line extensions meet the different segments’ needs. Products in a certain line sometimes may not attract wide variety of different segments. In these situations, the company could decide to introduce a new product into the market to increase …show more content…

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