extension strategies

Question 1

lowering the price of a product (e.g through a ‘sale’)

Answer 1

reducing prices will make the product more affordable and therefore appeal more market segments

Question 2

changing the place the product is sold (eg. selling online)

Answer 2

making the product available in more places will mean it is seen by more potential customers (e.g. using e-commerce will mean a product can be sold worldwide)

Question 3

altering the methods of promotion

Answer 3

changing the way a product is promoted can increase sales simply by raising awareness of the product

Question 4

developing variations of the product (eg. new flavours)

Answer 4

developing new varieties can mean the product appeals to the tastes and desires of different market segments.

updating the product can utilise the latest technology so make customers want the product again (eg. the annual launches of the latest, updated smartphones)

Question 5

rebranding the product

Answer 5

changing the name of the product can create ‘hype’. a new name can appeal to different or wider market segments (eg. Jif changed to Cif as they found that continental Europeans couldn’t pronounce Jif)

Question 6

changing the packaging

Answer 6

redesigning the packaging can make the product appeal to a new market segment (eg. Harry Potter books also come in a more mature-looking front cover to entice more adults to buy them)

Question 7

changing the use of the product

Answer 7

extending or changing the use of a product can make it appeal to new markets or suit seasonal tastes (eg. Cadbury’s Minirolls were released in ice-cream-inspired flavours and are suitable for freezing, ideal fro summer)