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ASCOLINE 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.

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ASCO

 An Example«

4

Product Sizes

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6

Flavours

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7

Ingredient

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8

Form

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ASCOWhy Line Extensions?

In most of the product categories including

fast moving consumer goods, consumer 

durables and services, line extension hasbeen the name of the game.

It is an expansionist move.

The firms seem to seek growth more

vigorously.

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ASCOProminent Reasons..

Customer Segmentation

Customer need for variety

Pricing Breadth

Capacity Utilization Quick gains

Competitive Reasons

Trade Demands Counter Competition

Image Benefits

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ASCOLine Extension Risks

There are several dangers associated withline extensions.

Line Confusion- Marketers sometimesadd products to their line without soundlogic and reasoning, without any clear roleand goal. This may confuse the customersand the retailers and will affect the brand¶sowner company in the long run.

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ASCOLine Extension Risks

Encourage Variety seeking ± Brand

loyalty is every marketers dream. By line

extension, customers practice andbecome the habitant of variety seeking.

Hence it influence brand switching

behaviors. The loyalty is thus weakened.

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ASCOLine Extension Risk

Success Myopia ± An idea may be a

grand enough to be converted into a full-

fledged independent brand. But the lure of extension seems to be so strong that the

ideas are brought into the market as line

extensions. This implies loss of a winning

asset in the long-term.

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ASCOLine Extension Risks

Strained relations - When the linesexpand, marketers tend to pressurize their trade partners such as wholesalers and

retailers to carry the complete line inaccordance with their wishes. Thepressure appears to be applied moreintensely at the retail level. The marketersseek adequate shelf space, promotion and

information. But at the retailers end, itbrings confusion and chaos.

The result is the strained relationsbetween the marketer and the retailer.

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ASCO

BRAND EXTENSIONS

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ASCOBRAND 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.

Category remains constant whereas in brand

extensions product category is a variable.

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ASCOWhy Brand Extension?

Cost of New launches

Promotional Efficiency

Consumer Benefits Feedback effects

Returns

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ASCO

Related Brand Extension

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ASCO

Unrelated Brand Extension

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ASCO

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ASCO