The logic of product-line extensions

Most companies are pursuing product-line extensions full steam ahead. However, evidence indicates that such aggressive tactics can be hazardous. To avoid pitfalls of wanton line extensions and sharpen product line strategies, companies should: 1. Improve cost accounting. 2. Allocate resources to pop...

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Bibliographic Details
Published in:Harvard business review 1994-11, Vol.72 (6), p.53
Main Authors: Hardle, Bruce G S, Lodish, Leonard M, Kilmer, James V, Beatty, David R
Format: Magazinearticle
Language:English
Subjects:
Extensions
Guidelines
Market strategy
Product lines
Online Access:Get full text
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Summary:Most companies are pursuing product-line extensions full steam ahead. However, evidence indicates that such aggressive tactics can be hazardous. To avoid pitfalls of wanton line extensions and sharpen product line strategies, companies should: 1. Improve cost accounting. 2. Allocate resources to popular products. 3. Research consumer behavior. 4. Coordinate marketing efforts. 5. Work with channel partners. 6. Foster a climate in which product-line deletions are encouraged. Nine experts offer their views on product-line management and the logic of line extensions.
ISSN:0017-8012