Extension Strategies

1. Improving the quality of the product

Cottonelle not only improved the softness and satisfaction of the product, they also changed the entire brand image, creating an image of extreme elegance.

2. Converting non-users

Ford  has featured ads in which they let a person use a Ford vehicle for a week for free to see if they would like to use it.

3. New Flavours and Scents

While Kit Kat has released flavours like Chunky, Peanut Butter and White Chocolate in North America, they are a lot more adventurous in Japan where they have flavours like Cheese, Aloe Vera and Gold. As well, they have region specific flavours.

4. Improved Style

A&W Restaurants have updated their style of restaurant in order to keep up with trends and styles over the years.

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Product Life Cycles

Fad

Tamagotchi is the one of the original virtual pet games. Created in Japan in 1996, they were wildly popular in North America from 1997-1999. Tamagotchis are still around, but have not been as popular since then. I think they were popular, because a lot of children can't have pets, so this was something they could have to make them feel like they were taking care of something. Also, as a video game, children might have liked the challenge of taking care of an animal, and the fun of the other features. It's been theorized the downfall in popularity was due to the gameplay of taking care of the animal, as if the animal is ignored for six hours, it dies. That lead to schools banning the devices, due to distractions.

Long Lasting Product

Arm and Hammer Baking Soda has been sold since 1867. It's lasted so long because there's so many uses for it, as well as the fact that Baking Soda is such a simple product, that it's always been needed and always will be needed. You can't invent something to replace it as it's a product that's completely pure. Also, Arm and Hammer is a pretty well known and trusted brand name, and when people buy baking soda, they're going to go with the one they know the best.
Tech Device

The Playstation 2 was the sequel to Sony's first game console and is the best selling game console of all time selling 153 million as of November 2011, being released in 2001. While the Playstation 3 was released in 2006, new games are still being released and Sony won't quit support until they stop. It's lasted such a long time because they were the first to introduce online gaming, and secured game exclusives from the start. Over time, it became a pretty cheap option compared to all the other consoles, so that if someone needed a cheap entertainment option quickly, the Playstation 2 has you covered.

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Luxury Brands- Ferrari

Ferrari is an Italian sports car company founded in 1929 by Enzo Ferrari. The company sells cars for street and consumer use, as well as Formula One racing, and others. The price ranges from $150,000-$350,000. They sell their products at specific dealers, as well as online. The target market is older adults, who are now able to afford a car such as this, and have been imagining exactly what they want. Many celebrities own a Ferrai, such as Kim Kardashian, Nicholas Cage and Tommy Hilfiger.

It appeals to me, because they are really cool cars. They are well made, and they have a really good reputation for being reliable. And who doesn't like to go really fast? People are willing to splurge because of the reputation, as well as the fact that they've probably worked hard all their life thinking of buying such a car and they want to reward themselves with the actual thing.

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