The Law of Line Extension - Deepstash

The Law of Line Extension

There's an irresistible pressure to extend the equity of a brand.

At one time, a company is deeply focused on a single product that is highly profitable, but the next moment the same company is spread thin over many products and making a loss.

  1. Marketing is a battle of perception, not the product. In the mind, the product and the brand name is one and the same.
  2. Line extensions seldom work in the long run. The leader in any category is the brand that is not line extended. Management may believe that line extensions work, and it does in the short term, but it is a loser in the long run.

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