Line extensions are a type of branding strategy in which businesses come up with new and innovative ways to introduce new products to the world. In this strategy, owners of a particular brand decide to use their brand name to sell other products. In most cases well known brands venture off into completely different products than the ones they originally sell, or they decide to keep the product and make minimal but effective changes. This strategy serves as a means to get the community to fulfill various needs, but still have a sense of stability and trust in the brand that they are familiar with.
Numerous companies embark on this branding strategy, one of which being the Coca- Cola Company. The Coca Cola Company has been around since 1890 and still continues to grow strong. Coca –Cola first appeared in bottles in 1895 and has been evolving its image ever since. The company understands that society is always changing and always in demand for new products, and they keep up with it. In the turn of the twenty-first century, it was and now continues to be all the rage to be fit and live a healthier lifestyle. The Coca-Cola Company saw this change and decided to expand its brand and create a Diet Coke that was artificially sweetened and contained no sugar, fat, or cholesterol. This beverage later led to the development of Coke Zero, one of Coca Colas biggest successes. The company makes other beverages such as sparkling waters, and even alcoholic beverage mixers. The popularity of the brand has allowed Coca Cola to be one of the most successful beverage companies in the world. People trust its name, and have no problem purchasing any product the Coca- Cola Company endorses or creates.
The Term Paper on Red Bull Product Company Brand
I. RED BULL'S HISTORY. Corporate legend has it that in the early 1980 s, while traveling to Asia on business, Austrian Dietrich Mateschiz came across some very popular "energy drinks." With his (self-describe) "uncanny instinct for successful product innovations", he schlepped a small sample of energy beverages back to Europe along with a big idea. Then with a clear vision and a lot of scientific ...
Dove care products are another excellent example of line extension. The dove company has gone from making standard body bars, to making body bars in a variety of scents and uses. The company’s success has allowed them to venture in to a new line of skin care products. Dove now houses a variety of lotions, shampoos, conditioners, and deodorant. Although usually associated with woman products, Dove has tried to further expand their company by creating a line of male body washes and face bars. The male products that dove created were smart in the sense that they were able to appeal to an entirely new group of people. This line extension aided the Dove Company, and set them aside as a brand to be aware and vigilant of.
Companies are constantly trying to get its customers to buy and support any brand of products it comes out with. Whether it be the Coca-Cola Company coming out with a line of energy drinks, or the Dove Company coming out with a line of shaving cream. These companies use these line extensions to entice the buyer, and have them support what ever they create. This business strategy has the ability to raise thousands, even millions of dollars and save companies from being put out of business.
The Coca- Cola Company and the Dove Company are two examples of how simply changing a flavor, a scent, or even the shape of a container can alter a business for the better. Their immense profits are an indication of the success that may occur if one decides to endeavor on this tricky yet simple path of brand extension.
