PLANNING PRODUCT STRATEGYMARKETING MANAGEMENT

Prof: Ivashkova N.I.

PRODUCT LINE STRETCHING

-is increasing the number of products within an existing product range with similar products that have additional or different features

3 kinds: Upward Stretching Downward Stretching Two way Stretching

PRODUCT LINE STRETCHING(EXAMPLE OF SUCCESS)

Target Market:

Intro: Originally target sports players basketball 1940’s emerged in pop culture Growth: Target “youth” female and male Musicians, artists, film stars Maturity/Decline/Remarketing: All ages, all sizes Pass through generations Converse “lifestyle” Product Planning: Innovation- new style basketball shoe40s- boots and war gear for soldiers, football, running50s- work boots60s- blue heel patch, higher rubber, wrestling70s- skateboarding, ski boots, heel patch change, smaller toe, longer tongue80s- basketball shoe redone, funky colors to match the times, thinner laces,

bigger toe90s- shorter, flat lacesToday- new materials, simpler logos

Product line stretching doubled sales

Converse's higher end shoes: new segments

and target different types of customers

PRODUCT LINE STRETCHING(EXAMPLE OF FAILURE)

2006- a wave of success

Strategy to diversify the line and acquire new

business

Sales dropped

Millions of dollars debt and huge surplus of

shoes

Mistakes of CROCS:

1. Flooded market with the product+ new styles = undermine brand’s specialness and exclusiveness

2. Buying up others companies (Teva and Fury Hockey) = destroyed power of brand

3. Trying to focus on all consumer targets

Jibbits

BRAND EXTENSION

Brand extension or brand stretching is a marketing strategy in which a firm

marketing a product with a well-developed

image uses the same brand name in a

different product category.

The new product is called a spin-off.

Organizations use this strategy to increase and leverage brand equity.

BRAND EXTENSION (EXAMPLE OF SUCCESS)

Polo Ralph Lauren

Recently reported annual revenue of $1.47 billion and profits of $120 million.

Ralph Lauren's Polo brand successfully extended from clothing to home furnishings such as bedding and towels. Both clothing and bedding are made of linen and fulfill a similar consumer function of comfort and hominess. 

BRAND EXTENSION (EXAMPLE OF FAILURE)

BIC Company

known for its disposable pens, its disposable razors, and its disposable cigarette lighters. 

They created a line of

women’s disposable pantyhose:

• Production and distribution problems

• No link between the products• Consumers were totally

confused

THANK YOU FOR ATTENTION!

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