PRODUCT LINE STRETCH

PRODUCT LINE: A group of products that are closely related because they function in a
similar manner, are sold to the same customer groups, are marketed through the same types
of outlets, or fall within given price range.

PRODDUCT LINE STRETCH: According to Philip Kotler and Armstrong, “A product

line stretching occurs when a company wants to lengthen its product lines beyond its
current line”.
Product line stretch can be done in following ways:
 Downward Product Line Stretching: Downward stretching occurs when a company is already
offering medium and premium level products in the market. The company has got a
high level of consumptions of the lower level product and the brand doesn’t want to
lose its market.
 Upward Product Line Stretching: Upward product line stretching is contrary to downward
stretching. Businesses and companies that follow the upward product line strategy
usually operate the business at the lower level product market. They follow the upward
product line strategy when they start offering premium level products.
 Two Way Product Line Stretching: A two-way stretching occurs when a brand targets both
lower and premium level markets at the same time. The goal of two-way product line
stretching is to cover and target the majority of the market. If a brand offers a medium-
level product, and it considers that the market requires lower and premium level
product stretching, then it has the option to offer two-way stretching.

EXAMPLE OF PRODUCT LINE STRETCHING:

NESCAFE
The Nestle NESCAFE Coffee gives a perfect blended idea about the product line stretching. The
various segment and types of coffee launched over the years by the company to have major
market is marvelous. All the segments were not launched together, the company did product
line stretching as per the needed times.
 A SHORT IDEA ABOUT NESCAFE

PRODUCT TYPE Coffee

OWNER Nestle
COUNTRY Switzerland
INTRODUCED April 1,1938(84 years)
TAG LINE It all starts with a Nescafe

Different Segment of Coffee available in market by NESCAFE:

 NESCAFE CLASSIC (1938)
 NESCAFE GOLD (1965)
 NESCAFE ESPRESSO AND CAPPUCCINO (1986)
 NESCAFE MILANO (2011)
Another than the above stated segments, Nescafe also sells Roast black, Sunrise, ALL in
One, and different ready cold coffees. The company made the product line stretching
simultaneously. The Nescafe Classic had been a preference but some customers were left out
due to its economical nature. Introduction of Nescafe Gold lead to the targeting the premium
set of customers with an improved quality and strong essence of coffee. The infusion of new
product strategy helped to achieve new stage of market share.
Leading after that, with competitors beating, Nescafe introduced the company started to
merge with Italian coffee culture; Espresso and Cappuccino came up. In the upcoming years,
they introduced Nescafe ALL in One, for the teenagers and office people, for shortage of
time.

Hence, Nescafe stretched their product over the years by adding some of the extra features to
sustain the market and share the cream segment of the market.