Line extension

Definition

A line extension is a marketing strategy where a company introduces new product variations under an existing product line, such as new flavors, colors, sizes, or forms. These variations are designed to target different customer segments or needs while leveraging the brand's established market presence.

Related terms

Brand Equity: The value derived from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.

Market Segmentation:

The process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.

Product Differentiation:

A marketing strategy that showcases the differences between products to make a company's product more attractive than its competitors'