37 Ways to Innovate – Innovation Tip #13 Create Brand or Product Line Extensions

 

 

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This idea suggests that we build on the success of the success of the original branded product.
Here are some interesting notes from how product extension strategies are being done.
 
 
from Wikipedia

product line extension is the use of an established product’s brand name for a new item in the same product category.

Product Line Extensions occur when a company introduces additional items in the same product category under the same brand name such as new flavors, forms, colors, added ingredients, package sizes. This is as opposed to brand extension which is a new product in a totally different product category.  Line extension occurs when the company lengthens its product line beyond its current range. The company can extend its product line down-market stretch, up-market stretch, or both ways.

Down-Market Stretch describes a company positioned in the middle market wanting to introduce a lower-priced product line while the Up-Market Stretch describes a company who may wish to enter the high end of the market for more growth, higher margins, or simply to position themselves as full-line manufacturers.  Also possible is Two-Way Stretch where a company serving the middle market might decide to stretch their line in both directions.
 
Down-Market Stretch example is the netbook which was introduced and aggressively priced at below 20k. Up-Market Stretch example is the introduction of the Macbook Pro laptops which carried all the best features for the best computing experience.  We can also say that Apple employed this strategy when they introduced the affordable tablet computer called iPad and then the high-end Macbook Pro with Retina display which is priced around 80 thousand pesos.  Now that Apple has down-market products and Up-Market products, then they are able to fulfill the 2-Way Market Stretch.
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