Page 40 - PRODUCT
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PRODUCT- LINE LENGTH
1) Line Stretching
Occur when a company lengthens its product line beyond its current
range
a) Down-Market Stretch
A company at a high market wish to enter a low market
They may want to introduce a lower-priced line for any of 3
reasons:
i.The company may notice strong growth opportunities
ii.The company may wish to tie up or counterattack lower-end
competitors who might otherwise try to move up-market.
Mercedes Benz has introduce an A class model car which price is
more cheaper than an E class model.
