What Are Some Reasons For Contracting A Product Line?

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) What are some reasons a firm might determine it should expand a product line? What are some reasons for contracting a product line? Why do many firms have a product mix strategy? A product line consist of a specific product introduced in order to suit a specific target market. When a firm decides to extend a product, it’s essentially introducing different models, or modified products. An example that can demonstrate a product line extension would be an IPod. The IPod came in so many different types; Gen 1, Gen 2, Gen 3, Nano, etc.. All these stayed within the same line, and maintained a specific target market, but also kept extending. When a company identifies that the product is not very successful/profitable in the market, contracting…show more content…
Marketing managers often have to renovate a current product advertisement in order to maintain the product visuals modern, this promotes the product, as well as maintains its brand relevance in the market. 6) What is a brand extension? What is sub-branding? Brand extension entails the introduction of a new product with the same brand name as a strong existing brand, “Coca-Cola” for example, customers recognize the brand globally and products such as; Fanta, Sprite, Vitamin Water, and Powerade would be an example of sub-branding. This products were introduced by Coca-Cola, essentially creating a secondary product within a main brand which can help the consumer differentiate among the product lines. 8) What does it mean to license a brand? What is cobranding? When a firm license a brand it’s essentially allowing another company to utilize their name with a specific purpose, and for a determined time. When two companies agree between two brands to work together in order to market a new product. One example of this is the Dorito taco shells that Taco bell sells. 9) What are the functions of packaging? What are some important elements of effective package design? Packaging provides not only appearance but also gives personality to a product, packaging also protects the product, they are essential in order to conserve the product intact until it arrive to the consumer’s hand. In order to have an effective packaging you must
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