product line expansion strategy

Product line expansion refers to the existing product line to use the same brand, when to increase the product line of products, still use the original brand. The new products are often partial to improve existing products, such as adding new features, packaging, design and style, and so on. Usually manufacturers of these products will be marked on the packaging of different specifications, different features or different users. Expanded product line are many reasons for, such as to take full advantage of surplus production capacity; meet new consumer needs first to become a full product line for the company to fill the market gap, with the introduction of new competitors or competitive products In order to get more shelf position. Product line expansion of interests: the survival rate higher than the expansion of products of new products and new products are usually the failure rate of 80% to 90%; meet the needs of different market segments; complete product line can be competitors of defense Attacks. Product line expansion of the negative: it may lose its brand name to a particular significance. With the growing product line, will dilute the original brand identity and image, increase consumer awareness and choice of the difficulty sometimes because the original brand is too strong, causing confusion product line expansion, with sales volume insufficient to They offset the development and marketing costs if the consumer fails to distinguish between the eyes to a variety of products, will create a product line with the old and new products in the fratricidal situation.