What are extension strategies

Extension strategies help prolong the sales and profit of matured products

They include;

1. New versions of existing products, with different variety of colour and sizes

2. Accessing new markets in other locations

3. Additional features on existing products

4. New distribution channels

5. Free delivery, trade-ins, extended warranty and other after sales services such as free installation

6. Buy 1 free 1 promotions

What other extension strategies can you think off? Comment to discuss.

RELEVANT CONCEPTS

1. Product Life Cycle

2. Revenue / Sales

3. Profit

PAST YEAR QUESTIONS

1. Do you think targeting new markets is a better extension strategy than new packaging for a manufacturing business? Justify your answer (6 marks) May/June 2020/13