Hershey’s introduction of a sugar-free version of its candy bar is an example of line extension.
The correct answer and explanation is :
The correct answer is line extension.
A line extension refers to the practice of a company introducing new products within the same product category or brand but with variations in features, such as flavor, size, or ingredients. It is a strategy used by companies to expand their existing product lines and attract different segments of customers without introducing entirely new products or brands.
In the case of Hershey’s introduction of a sugar-free version of its candy bar, this is a classic example of line extension. Hershey’s already offers a line of traditional candy bars with sugar, and by introducing a sugar-free version, the company is expanding its existing product range to cater to a new consumer segment. This segment may include individuals who are diabetic, health-conscious, or those who prefer to limit their sugar intake.
The sugar-free version still maintains the same brand identity as the original Hershey’s candy bar. While the formulation changes (removing sugar and possibly using alternative sweeteners), the core brand remains the same. This allows Hershey’s to capitalize on its already established brand recognition while addressing the growing demand for healthier, sugar-conscious products. By offering a sugar-free option, Hershey’s not only serves the existing market but also broadens its appeal to a new customer base that may not have considered purchasing the regular candy bars.
Line extensions, like the one introduced by Hershey’s, typically have several benefits, such as leveraging brand equity, reaching new customers, and differentiating from competitors without the risks associated with launching a completely new brand. However, it can also dilute the brand if not executed carefully, as customers may become confused about the core identity of the brand if too many variations are introduced. Nonetheless, in this case, the sugar-free version aligns with consumer trends toward healthier alternatives and reinforces Hershey’s position in the marketplace.