Line Extension
A new product which is a variation on a product already offered. This new product is introduced in order to exploit the equity already built up in other product(s) in the line and / or as a competitive reaction to the strategies of other firms in the market.
Implications
The introduction of new products or variations under an existing brand name, often used to leverage brand equity and reach new customer segments or meet different customer needs, relevant in product development and brand management strategies.
Example
Example: A snack company launches a line extension by introducing a new flavor of its popular chips, targeting health-conscious consumers with a baked, low-fat option under the same brand name.
Related Terms
Different from brand extension, which involves launching new products in different categories under the same brand name, line extension stays within the existing product category but introduces new variations.
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