Introduction of another strength of a medicine by a pharmaceutical company is an example of:
|A. Brand extension|
B. Line extension
C. Brand diversification
D. All of the given options
The Correct Answer Is:
- B. Line extension
The correct answer is “B. Line extension” for introducing another strength of a medicine by a pharmaceutical company. Line extension is a marketing strategy where a company introduces variations or extensions of an existing product line, often to cater to different customer preferences, needs, or market segments. In the case of a pharmaceutical company introducing different strengths of a medicine, it is considered a line extension.
Let’s explore in detail why this answer is correct and why the other options are not suitable for describing this scenario:
B. Line extension:
Line extension involves expanding a product line by introducing new variants or versions of an existing product, typically under the same brand name. In the context of a pharmaceutical company, this would mean offering the same medicine in different strengths or dosages.
For example, a pharmaceutical company might manufacture a popular pain reliever in various strengths, such as 250mg, 500mg, and 750mg tablets, to accommodate a range of consumer needs and medical requirements. Line extensions are common in the pharmaceutical industry as they allow companies to leverage the success of an established brand and cater to a broader customer base.
Now, let’s discuss why the other options are not correct:
A. Brand extension:
Brand extension refers to the marketing strategy of using an existing brand name to launch a new product or product category that is somewhat related to the original brand. This strategy is typically used when a company wants to leverage the equity and recognition of an established brand to introduce a new product.
In the context of a pharmaceutical company introducing another strength of a medicine, this scenario does not involve launching an entirely new product category but rather expanding the existing product line. Therefore, it is not a brand extension.
C. Brand diversification:
Brand diversification refers to a strategy where a company expands into entirely new and unrelated product categories or industries. This strategy aims to reduce risk by entering new markets that are different from the company’s core business.
In the case of a pharmaceutical company introducing different strengths of a medicine, this action is not considered brand diversification. It is an extension of the existing product line within the same industry and product category, rather than venturing into completely unrelated markets.
D. All of the given options:
Selecting “D. All of the given options” suggests that all of the provided options (brand extension, line extension, and brand diversification) apply to the scenario of introducing another strength of a medicine by a pharmaceutical company. However, as explained above, the correct choice is “B.
Line extension” because it accurately reflects the situation where variations of an existing product are introduced under the same brand to cater to different customer needs, which is the case with different strengths of medicines.
In summary, “B. Line extension” is the correct term for describing the introduction of another strength of a medicine by a pharmaceutical company.
Line extension is a strategic move that allows companies to leverage the equity of their existing product and brand while meeting the diverse needs of their customers within the same product category. It is a well-established practice in the pharmaceutical industry and effectively illustrates the concept of product line expansion.