What is a line extension?

A line extension refers to the strategy of introducing additional items within the same product category that are under the same brand name. This could involve new versions of a product that may vary in flavor, color, size, or other attributes, while still being categorized under the original product line.

The concept of line extension capitalizes on the existing brand equity, allowing companies to attract the existing customer base along with new customers who are looking for variations of the product they already like. It allows companies to meet different consumer preferences or needs without creating a wholly new brand.

The other options reflect different concepts. Introducing a product in a new category refers to brand extension, which is about moving into an entirely different market segment. An entirely different brand signifies the establishment of a new brand identity, while a collaborative product indicates a partnership between brands, which involves more complex product development strategies. Thus, the correct understanding of a line extension lies in how it maintains the same brand identity while diversifying within its product line.