downward stretching

GBK English to German Marketing Marketing / Market Research

Definition from MBA Skool:

It occurs when a new product is introduced into an already established line of products. Often the new product is launched at a lower price point than its peers in the same brand. The objective of downward stretching is to use the brand equity or existing positive brand image of an existing line of products to launch new items.

Example sentences:

However there are significant dangers to downward stretching, particularly for a prestige brand, including: product cannibalization of their higher-margin products, overall deterioration in their brand image, needing to support multiple products in the marketplace, or multiple positionings. (Marketing Study Guide)

A more serious problem with downward stretching is that the new low-end item might eat away at the sales of or cannibalize the company's higher-end items, leaving the company worse off. (ZABANGA Marketing)

In the year 2008, TATA motors had launched their car price at Rs.1 lakh. Initially they had targeted the upper and middle class consumers for the models SUMO and Indica , the launch of NANO indicates downward stretching, where TATA extended its products to the lower class category of consumers. (CareerRide.com)

Proposed translations (German)

Produkterweiterung in den Niedrigpreisbereich

erika rubinstein