What Is a Product Line Extension?


Types of product line extensions

Two types of product line extensions exist. They include:


Horizontal product line extensions are those that modify specific, potentially insignificant factors to distinguish the new items from those the brand currently produces or those of the competition while maintaining the price and quality of the existing items. Examples of horizontal product line extension could include goods with new flavors or colors.


In order to make the new product appear more opulent or affordable to potential customers, vertical product line extensions raise or lower the price or quality of the item. These goods were made to appeal to particular consumers, even though they are still closely related to other items produced by the company. Vertical product line extensions can include things like products that have new forms, ingredients, or packaging sizes.

What is product line extension?

Product line extension is a marketing tactic that makes use of a recognized brand to add a new product to an existing product line. The new product might be slightly different from what a business already sells in terms of, for example, flavor, color, form, ingredients, or packaging size.

Uses and benefits of product line extension

Product line extensions may be advantageous and practical for businesses in a number of ways, including:

Identifying the needs of a niche market

Product line expansions could assist businesses in discovering and serving a niche market. A company may be able to capitalize on an unmet need by changing the form of an item or adding new ingredients to a popular product to appeal to a particular segment of consumers.

Providing product variety for customers

Product line expansions may give businesses the chance to offer customers variety. Customers may be able to continue using a specific item even if their mood or preference changes by offering similar products with different flavors or added features, especially in the food, fashion, technology, and makeup industries.

Meeting changing market needs

Certain markets and industries may be particularly vulnerable to shifts in public perception and trend Companies might be able to accommodate such changes with little disruption to their present manufacturing and distribution processes by adding a product line extension.

Increasing a brands portfolio

A brand may be able to expand their product line and grow their portfolio by doing so. Without spending a lot of money on new materials or investing time and resources in research or alternative production techniques, this kind of marketing strategy could help businesses offer more products similar to those they already produce.

Increasing a companys revenue

Adding new product lines to an existing brand could help a business generate more revenue. Their production costs may remain largely the same if the products are similar to those they currently produce, but as they can produce and market more goods, they have the potential to earn more money.

Engaging with direct competitors

Making a product line extension could be a way to interact with rivals directly. This might be typical in sectors affected by ongoing societal and cultural change, such as the food or fashion industries. By extending your product line, you can surpass or catch up with your rivals on a new trend item.

Reducing risks associated with product development

There may be fewer opportunities for risks or uncertainty in the development process because product line extensions are similar to the products a company already produces and sells. Similar products could increase consumer confidence in their purchases and reduce the need for focus groups, test groups, and other market research prior to product launch.

Maintaining customer loyalty

Adding new product lines could be a way for businesses to keep their existing clientele. Customers may recognize a company’s willingness to grow and expand to meet their needs if it keeps track of trends, capitalizes on niche markets, and monitors and meets those trends. This may increase their loyalty and, also, their purchases.

Line extension vs. brand extension

Both brand extension and line extension are marketing techniques that aim to increase the size of a commercial goods market. However, brand extension refers to the expansion of the business into a new market or region. This indicates that a business markets and sells a good that is significantly dissimilar from what it currently produces. It is the brand, not the product, that influences consumer buying Brand extension might be used by, for instance, a well-known shoe company that releases a line of handbags.

Tips for product line extension

Make use of the following advice to implement a product line extension in your own business:

Review growth and progress of existing lines

Examine the market performance of your current products before developing a new line. Examine elements like sales, profit, market expansion, ROI, and market share. Recognize how these factors affect the success of your business and your direct competitors. If your current line or lines are still relatively new on the market, you might want to wait to expand them until they have established customer loyalty and brand recognition.

Get customer feedback

Asking your target market and customers what they want from a new product line may help your development process and sales. Ask customers via phone interviews, feedback forms, or digital response options what they like and would change about your current product lines, as well as what products they would like to see more of. Consider eliciting their preferences for certain products and the circumstances that would increase their likelihood of purchasing, such as packaging or size.

Evaluate the competition

Pay attention to the product line extensions your competitors make. To better understand what your target audience wants and how you can improve on their lines to make yours unique, do research on what makes their new lines successful.

Evaluate your finances and resources

Review your resources and funding before launching a new product line. Each company may have a different threshold for when a new line can be launched. Consider implementing different strategies to increase your resource pool or finances to enable expansion in the future if you’re unsure that you have what it takes to launch a new business.


What is product line extension?

When an established brand introduces new products in a product category they already offer products in, this is known as a product line extension. For instance, when a soft drink manufacturer releases a brand-new soda flavor

What is a line extension in marketing?

The process of extending an existing product line is known as “line extensions.” This occurs when a business with a well-known brand adds more products to a particular product category. The business markets existing products and gives customers new options by leveraging their value.

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