Question

Coca-Cola has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few. These are examples ofa) product modifications.b) functional modifications.c) aesthetic modifications.d) line extensions.e) product lining.

Answer 1

Answer:

D) Line Extensions

Explanation:

Line extensions represent a strategy undertaken by manufacturers to introduce additional items/products to the same product category and most times under the same brand name. Examples of how this works is to introduce new forms, colours, new ingredients, sizes or new flavours.

The goal of this strategy most times is to gain a market share of consumers who would take the already existing product but with preference for certain characteristics.

For instance, Mr. A does not like Caffeine, so even though he loves Coca-Cola, his aversion for Caffeine will make him stay away from the product. Once, the Caffeine-free Coke is introduced, then his desires and wants are satisfied, he can begin to take the product. Coca-Cola has not created a new product in a different category, but have removed a particular content to expand the existing line.

The opposite of line extension is brand extension which is the introduction of a new product in a totally different product category.