Line extension is a marketing strategy implemented by the company.
It involves adding a product to an existing line of products belonging to the same brand.
This strategy is adopted when the product line is very successful, and therefore, it is developed and expanded with additional products.
Advantages of line extension
Thanks to the expansion of a product line, we can observe several advantages that this strategy brings to the company:
- Lower costs: due to promotional and advertising expenses;
- A better corporate image: an increase in awareness and reputation of the entire line;
- Perception of improved service: given the wider range, consumers perceive that they are receiving a better service compared to competitors.
In conclusion, line extension generates additional product increments only if those already part of it promote their own sale and are differentiated from each other.
Therefore, it favors brand penetration in the market more than the purchase rate.
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