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Success Drivers for Line Extensions: Research Insights and Market Trends

Discover key findings on line extensions from a 1994 research study by S.R. Reddy, S. Holak, and S. Bhat. Strong brand extensions outperform weak ones, while symbolic brands show higher market success. Early entries in product sub-categories fare better, especially for strong brands. Firm size and marketing competencies also impact extension success. Learn how earlier line extensions boost parent brand market expansion and how incremental sales can offset cannibalization losses.

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Success Drivers for Line Extensions: Research Insights and Market Trends

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  1. Research Findings Concerning Line Extensions

  2. LineExtensions • Line Extensions of strong brands are more successul than extensions of weak brands • Line extensions of symbolic brands enjoy greater market success that those of less symbolic brands. • Line extensions entering earlier into a product sub-category are more successful than extensions entering later, but only if they are extensions of strong brands. • Firm size and marketing competencies also play a part in an extension’s success. Extracted from S.R. Reddy, S. Holak and S. Bhat, “To Extend or Not Extend: Success Determinants of Line Extensions”, (May 1994)

  3. Line Extensions • Earlier line extensions have helped in the market expansion of the parent brand. • Incremental sales generated by line extesions may more than compensate for the loss in sales due to cannibalization. Extracted from S.R. Reddy, S. Holak and S. Bhat, “To Extend or Not Extend: Success Determinants of Line Extensions”, (May 1994)

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