Line Extension

Line extension is when a company introduces a new product that builds on an existing brand or product line. For example, if a popular soda brand adds a new flavor or a different size, that's a line extension. It allows the company to target different customer preferences or markets without creating an entirely new brand. This strategy leverages the existing brand’s reputation and customer loyalty, making it easier to attract new buyers or satisfy changing preferences. Line extensions can boost sales and market presence but should be managed carefully to avoid brand dilution or customer confusion.