PRESENTER: Hi. Today we will be looking at product line versus brand extension. Line extension-- line extension is when a brand that already exists comes out with another product that is similar or in the same category as another one of the brand's products. Many times, the new products are very similar to the old ones.

It is considered a line extension when the product comes out with new flavors and colors, new forms of the product, different ingredients, different sizes and packaging, or any type of improvement on the existing product. The benefits of line extension-- the benefits are that it gives the customer more options to choose from. There will be more variety of the products. New products are being promoted which can produce profit. Brands also gain more recognition.

We will now see some examples of product lines. As we can see here, Olay has a very extensive product line. They have numerous types of face creams for women of all ages. They are different but similar products, and they are all the same brand.

Dove also has an extensive product line. They have multiple colors and scents for their different lotions and soaps. Here, we can also see how Old Spice has a different deodorants with multiple types of smells which people can choose from. They also have shampoos and body washes that can all fall in the same category.

Brand extension-- on the other hand, brand extension is when an already existing brand creates a new product in a different category. And these can be part of a new market or department. The products can be very different. Only the brand is the same.

The benefits-- the benefits of brand extension is that customers will recognize the brand name when they see the new products. The sales can increase and the brand profits in different departments. It can also bring awareness to the brand by promoting the new products.

A good example of this, as we can see here, is Jack Daniel's. As we see here, there are different products of Jack Daniel's food. But what is Jack Daniel's famous for? Yep, you got it. They're famous for their whiskey. So we can see different products in different categories and sharing the same brand.

Similarities-- similarities of line and brand extensions is that brands use them both. They are both used to help promote brands and help with sales. And if done efficiently, they can help the brand increase their profit. Thank you. Business 130.