What is the difference between product line stretching and line filling?

Line Stretching Vs Line Filling The difference is that life filling is when you add more product items within the present range of the product line. On the other hand, line stretching is when you increase the current product line beyond the current product range.

What is 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 are the reasons for product line stretching?

Stretching downwards 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 opposite of line stretching?

Up Market Product line stretching Naturally, it is the exact opposite of Down market stretching and in this case, companies which are from the lower market, introduce premium product range so as to enter the premium market.

What does product line filling mean?

Adding more products to an existing product Line in order to leave no gaps into which competitors might move. When product lines are increased by moving up or down market to attract new customers, the process is sometimes called line stretching.

What is line filling with example?

the practice of adding new products to a product range to make it more complete: Line filling means making sure we have everything from a calls-only phone to a smart phone nearly as good as a netbook.

How does filling a product line help the company retain customers?

Filling refers to adding more items to a product line family in order to address any perceived gaps in the potential customer base. For instance, adding larger sizes to a clothing line can accommodate people with bigger bodies.

What is line filling decision?

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.

What is line filling strategy examples?

Examples of Line Filling To discuss in detail the concept of Line Filling, cosmetic brands are one of the best examples. Supposedly a brand offers the range of mascara, kohl eye pencil, nail paints, and lipsticks that are quite famous amongst the target audience.

What is brand filling?

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 are the disadvantages of expanding your product lines?

Some of the common disadvantages of business expansions are: 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 is downward stretching?

Downward stretching occurs when a new product is introduced into an already established line of products. Often the new product is launched at a lower price point than its peers in the same brand.

Categories: Common