Near Line Extension

Posted in Marketing and Strategy Terms, Total Reads: 699

Definition: Near Line Extension

Near line extension are those products that have very little differences between them. Near line extension is just a simple addition or modification in an existing product. Since the products are more or less similar with little difference it is a near line extension.

Examples of near line extension are Surf Excel Blue, Surf Excel, and Surf or Coca Cola, Diet Coke, Coke zero, and Coke vanilla etc.

Where as distant line extension are those products that are significant differences between them. Line extension also helps in maintaining loyalty of consumers towards the brand. But disadvantages too like line extension may lead to cannibalization of near line extension products.

There are two kinds of product line extension, they are: near line extension and distant line extension.

Line extension is a marketing terminology related to strategic marketing. Line extension or product line extension means launching a new product under the established brand name in the same product category. Generally, this kind of move is followed by many firms with a motive that new product may get easy recognition due to the acquaintance with the brand name of the product which is already popular among masses. It is also done to cater the needs of various market segments and the people with varied choices. Common products where such kind of marketing is seen are the FMCG goods like detergents, shampoos, soaps, toothpaste, food items etc.

Also examples of distant line extension are Maggi noodles, Maggi soup, and Maggi sauce or Sunfeast biscuits, Sunfeast pasta, Sunfeast noodles.

We notice that in line extension we are so much loyal to these products that we hardly ever think of the name of the firm producing it. For example in above case it’s HUL (Surf), ITC (Sunfeast), and Nestle (Maggi). Also we see that near line extension products are just a variant of same kind of product that is all are detergents of brand Surf. But in case of distant line extension the products are quite different but uses the same brand i.e. Sunfeast brand but the products are noodles, biscuits, pasta etc.

Hence, this concludes the definition of Near Line Extension along with its overview.


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