What is the meaning of product line stretching?
What is the meaning of product line stretching?
Line stretching is an expanding strategy by a company where the new products are launched in the same product line but beyond the current product range with some additional or different features. Line stretching can be done down market, up market or both ways.
What is product filling?
The introduction of new products into a product line at about the same price as existing products. From: product line filling in A Dictionary of Marketing »
What are the reasons for product line stretching?
Firms would engage in downward stretching of their product line for several reasons:
- to block competitor activities and competitive product offerings.
- to compete in the budget end of the market, particularly if it is a high volume part of the market.
What is product line filling example?
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 the difference between line filling and line stretching?
A company can expand its product line in two ways: Line Filling and Line Stretching. Both of these product line decisions involve adding items to the line. Line filling means adding more items within the present range of the line. Line stretching means lengthening the product line beyond the current range.
How does filling a product line help the company retain customers?
Companies add new items to their product lines, sometimes referred to as a product-line extension, to introduce brands to new customers. Expanding product lines enables a company to target consumers who are either already buying the brand or are likely to buy the brand.
What is line stretching and line filling?
What is the difference between product line and product mix?
A product line is one line of similar products that are sold within a company, whereas a product mix is the combined total of all the product lines sold in a company.
What is a line stretching example?
For example BMW automobiles are located in the upper price range of the automobile market. Line stretching occurs when a company lengthens its product line beyond the current product range. The company can stretch its line down market or up market or both ways.
Which stretching offers products in the same line for lower prices?
The product line length within a company keeps changing. Generally, there are three price bands which exists in any market – Lower priced products, middle priced products and premium products. One brand concentrates on one price brand.
What are the disadvantages of expanding your product lines?
Disadvantages of business growth
- shortage of cash – you may need to borrow money to meet expansion costs, eg buy new premises or equipment.
- compromised quality – increasing your production output may lead to a decline in quality, which can lead to loss of customers or sales.
What are the advantages of product line?
Product Line Benefits
- large-scale productivity gains.
- decreased time to market.
- increased product quality.
- decreased product risk.
- increased market agility.
- increased customer satisfaction.
- more efficient use of human resources.
- ability to maintain market presence.
What does marketing line filling and line stretching mean?
Marketing LINE FILLING AND LINE STRETCHING Product line: The group of related products which uses same marketing efforts to reach the consumer. The product line identifies profitable and unprofitable products and helps in allocation of resources according to that.
Which is the best way to stretch the product line?
Ways to stretch the product line 1 Stretching downwards. A downward stretch of the product line is when a firm introduces lower quality products that they are normally associated with – such as the Apple example above. 2 Stretching upwards. 3 Both upward and downward stretching at the same time. 4 Product line filling.
Why do companies do down market product line stretching?
There are multiple reasons that a company might do down market product line stretching It wants to get rid of lower level competition which can become upper level competition if allowed to survive The middle or lower market might have been ignored which can be swooped up by the upper market player.
Which is the best definition of line filling?
The concept of Line Filling can be defined as the business strategy where the firm plans to increase the number of products in the existing product line. The main idea and intention behind the same are to reduce the level of competition in the market and take advantage of the gap in the market.
