Product and Service Line extension appears to be the most logical business strategy to most senior managers and executive all over the world in order to increase revenues. The idea behind line extension is always the same, "You sell more when you target more people, serve more industries". The popularity of this business strategy is obvious from the research (Taylor 2004) which says "Over 80 per cent of marketing directors in a recent brandgym survey said that brand extension would be the main way of launching new innovation in the next two to three years".
However, in reality, majority of line extension endeavors fail. The idea that seems most logical creates disasters for even the well established brands. A recent post - The Classic Mistake - by Laura Ries explains how Pizza Hut is inviting trouble by changing its name to "The Hut" just to add Chicken Wings and Pasta to its menu.
Inspired from: http://ries.typepad.com/ries_blog/2009/06/the-classic-mistake.html
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