Page 41 - PRODUCT

PRODUCT- LINE LENGTH

b) Up-Market Stretch

Companies at a low market may wish to enter the high market
Reason: Achieve more growth, higher margins, or simply to

position themselves as full-line manufacturers
They invented entirely new names rather than using or including

their own names, because consumers may not have given the
brand “permission” to stretch upward at the time when those

different lines where introduced

Toyota Motor Corporation has introduce LEXUS as their luxury

vehicle

c) Two-Way Stretch

•Companies serving the middle market might decide to stretch their
line in both directions

•The major risk with this strategy is customer will trade down to
lower-priced models if they perceive few differences between the

products
•For example, Toyota has two-way stretch of its product line.

Alongside its midrange Corolla model, it added the Camry to serve

the upper end of the car market, and the Vios to serve the compact
car market. It also introduced the Lexus as a premium offering for the
luxury car segment