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Which of the following is an example of product line extension?Multiple choice question.Kellogg's, in addition to its existing cereals, begins to sell branded bowls and spoons.Coke, in addition to its existing Diet Coke flavors, introduces chocolate-flavored Diet Coke.Honda, in addition to its vehicles, begins to sell gasoline.Ritz, in addition to its crackers, begins to sell cheeses.

Question

Which of the following is an example of product line extension?Multiple choice question.Kellogg's, in addition to its existing cereals, begins to sell branded bowls and spoons.Coke, in addition to its existing Diet Coke flavors, introduces chocolate-flavored Diet Coke.Honda, in addition to its vehicles, begins to sell gasoline.Ritz, in addition to its crackers, begins to sell cheeses.

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Solution

The example of a product line extension in the options provided is: "Coke, in addition to its existing Diet Coke flavors, introduces chocolate-flavored Diet Coke."

A product line extension refers to the addition of new products under a successful brand name to increase sales and enter in a new market segment. In this case, Coke is extending its product line (Diet Coke) by introducing a new flavor (chocolate-flavored Diet Coke). The other options involve companies branching out into different product categories, which is known as diversification, not product line extension.

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