Brand Extension, Line Extension, Product Extension

The Differences between Brand, Line, Product Extensions:

Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. Organisations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name).

When done successfully, brand extension can have several advantages:

• Distributors may perceive there is less risk with a new product if it carries a familiar brand name. If a new food product carries the Heinz brand, it is likely that customers will buy it

• Customers will associate the quality of the established brand name with the new product. They will be more likely to trust the new product.

• The new product will attract quicker customer awareness and willingness to trial or sample the product

• Promotional launch costs (particularly advertising) are likely to be substantially lower.

While there can be significant benefits in brand extension strategies, there can also be significant risks, resulting in a diluted or severely damaged brand image. Poor choices for brand extension may dilute and deteriorate the core brand and damage the brand equity.

Product extensions are versions of the same parent product that serve a segment of the target market and increase the variety of an offering. An example of a product extension is Coke vs. Diet Coke in same product category of soft drinks. This tactic is undertaken due to the brand loyalty and brand awareness they enjoy consumers are more likely to buy a new product that has a tried and trusted brand name on it.

Line extensions examples are different variant of 7Up, Coke, Nachos, Dove soap etc.
Indian example is HUL's Wheel Vs RIN both which offer the same core benefit which is a washing detergent, but targeted at different segments.

This is where the confusion between line and product extensions occur, because under which area would you put a Good Night mosquito mat and a Good Night mosquito Liquid. They fall under the same core benefit, which is eradicating mosquitoes, but are different categories.

Yamaha music instruments and Yamaha bikes can be termed as Product extensions, since here each category, i.e. music does not leverage upon their presence in bikes and vice versa.

But if this is true, then Good Night would fall under Line extension.

Let the arguments continue..Do throw any more clarity on these three topics if available.