1. PLANNING PRODUCT STRATEGY
MARKETING MANAGEMENT
Prof: Ivashkova N.I.

2. 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

3. 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 shoe
40s- boots and war gear for soldiers, football, running
50s- work boots
60s- blue heel patch, higher rubber, wrestling
70s- skateboarding, ski boots, heel patch change, smaller toe, longer tongue
80s- basketball shoe redone, funky colors to match the times, thinner laces, bigger toe
90s- shorter, flat laces
Today- new materials, simpler logos
Product line stretching
doubled sales
Converse's higher end
shoes: new segments
and target different types
of customers

4. 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

5. 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.

6. 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.

7. 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

8. THANK YOU FOR ATTENTION!
ANY QUESTIONS?