I think that line-extension will be successful in general. However, it will not necessarily be effective for everyone. For it to be successful, a company must know its customers and its brand’s limitations (TippingSprung, 2012).
Although some do not favor line extensions, it cannot be denied that a lot of companies have successfully implemented this strategy up to this day. For example, Kraft came out with Jell-O Instant Pudding, which was available in many varieties (Gordon, 2004). Gillette has also successfully implemented line extensions. For example, it has extended its razors and blades product line to Sensor, Mach 3, and Lady Gillette among others, while its toiletries line includes Right Guard, Dry Idea, and Gillette Foamy (Gordon, 2004). Even the Starbucks Coffee liqueur was named the top brand extension in the liquor category (TippingSprung, 2012).
Although the product launch of Dr. Pepper Ten, a soft drink that’s made for men (Khan, 2011), was met with a lot of criticism, it was mostly because of its advertisements, which were perceived as sexist, and not because of the product itself. After all, it was not the first diet soft drink that was targeted at the male market. For example, Coke continues to enjoy success with Coke Zero and Pepsi with Pepsi Max (Bouckley, 2011).
When implemented properly, line extension can facilitate the acceptance of a new product (“Brand Extension,” 2012). It can increase brand image and reduce the risk perceived by the customers. With a well established brand name, there won’t be a problem getting customers to try the new product. In addition, the promotional, selling, and advertising costs are reduced, and the cost that would be used for developing a new brand is saved. Moreover, it allows consumers to seek for variety and it can promote efficiencies in labeling and packaging. As well, it can reduce the costs incurred from introductory and follow-up marketing programs.
References
Bouckley, B. (2011, October 13). Macho men will fall for Dr Pepper Ten, analyst predicts.
Retrieved from http://www.beveragedaily.com/Markets/Macho-men-will-fall-for-Dr-
Pepper-Ten-analyst-predicts
Brand extension – Meaning, advantages and disadvantages. Retrieved from
http://www.managementstudyguide.com/brand-extension.htm.
Gordon, K. T. (2004, June 7). Pros and cons of expanding your product line. Retrieved from
http://www.entrepreneur.com/article/71094
Khan, A. (2011, October 10). Dr Pepper Ten -- the manliest soft drink of them all? Los Angeles
Times. Retrieved from http://articles.latimes.com/2011/oct/10/news/la-heb-dr-pepper-
diet-ten-diet-soda-men-20111010
TippingSprung. (2012). Top brand extensions. Retrieved from
http://www.brandchannel.com/papers_review.asp?sp_id=1222
