What is product line downward stretching?

What is product line downward stretching?

Downward stretching occurs when a new product is introduced into an already established line of products. Often the new product is launched at a lower price point than its peers in the same brand.

What is upward product line stretching?

introducing a new product into a product line at the higher priced end of the market.

What are the three approaches to stretching a product line?

There are three approaches to stretching the product line, namely:

  • stretching downwards.
  • stretching upwards.
  • stretching both ways.

How do you extend a product line?

Tips for product line extension Before creating a new line, look at how your current products perform in the market. Examine factors such as sales, profit, market growth, return on investment and market share. Understand how these items relate to your company’s success and that of your direct competitors.

What is downward line?

introducing a new product into a product line at the lower priced end of the market.

What is upward strategy?

Upward Strategies works with entrepreneurs who are outstanding at delivering quality products or services to their clients but who fall short in ability, interest, or time to make their own businesses thrive.

What is the purpose of product line extension?

Line extensions refers to the process of expanding an existing product line. This is when a company with an established brand introduces additional items in a product category. The company uses the value of the existing product to market and introduce new choices to consumers.

What is product line extension example?

A product line extension is when an existing brand launches new products in a product category they already offer products within. For example, when a soft drink company offers a new flavor of soda.

What is product line decision?

Product line refers to a group of same products. Product line decisions refer to decisions relating to addition or deletion of product from the existing product line. Addition and deletions in product can be explained as follows: Line Stretching Decisions: Line stretching implies increasing the length of product line.

What is product line filling?

Product line filling is the addition of further items to the current line of products that a company is dealing in. Eg. Maruti Suzuki had launched Alto in the year 2000 which was a product between two other models of Maruti- Maruti 800 and Maruti Zen.

What is a line extension of Coca Cola?

A brand extension is when a company uses an existing brand to create a new product category. Line extensions can include different colors, sizes, flavors or styles. They enable the brand to meet the changing wants and needs of its customers. Coca-Cola line extended its brand by introducing Diet Coke.