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When you go shopping, it’s easy to see a single company offering a variety of options. For example, plain flour and multigrain flour are available. Plain butter and garlic-flavored butter are also available. In modern business and market research, this strategy is called “product line extension.” 

Major brands and e-commerce companies use this strategy to meet changing customer preferences, strengthen their market presence, and appeal to diverse consumer segments. This isn’t a coincidence; it’s a deeply thoughtful business strategy that provides companies with numerous commercial advantages. 

Some well-known brands

ITC: This company sells Aashirvaad Atta in various variants like Select, Sharbati and Multigrain.

Marico: This company manufactures plain oats as well as masala oats, muesli and granola.

Britannia Industries: This company sells Good Day biscuits in various flavours like butter, cashew, choco chip and fruit & nut.

Amul: Apart from plain butter, this company also sells light butter, garlic butter and table butter.

Parle Products: This company’s Hide and Seek biscuits also have many different variants available in the market.

What benefits does this bring to companies?

Attracting people of all budgets: By varying prices, both a customer spending fifty rupees and a customer spending two hundred rupees remain with the company. This way, the company never loses a customer.

Meeting everyone’s different needs: Some want multigrain, some want high-protein, some want sugar-free, and some want gluten-free. By offering a variety of similar options, the company caters to every type of person.

Earn more from expensive products : Compared to ordinary products, expensive and premium products cost more and yield higher profits. The company doesn’t incur as much manufacturing cost as they recover through good packaging and a big name.

Displacing others in the market: Store shelves are often limited. If four or five different versions of a single company are displayed, there’s no room left for other companies’ products. This makes it very difficult for other companies to reach customers.

Retaining customers with your own brand: If a customer’s income increases and they want a better product, they may switch to another brand. Companies already have high-end and high-quality options ready.

What should customers understand when making a purchase?

When should you buy expensive items: When the item has some new and good benefit like some better ingredient or some special health benefit which is not available in the plain one.

When simple is better: When expensive items have just had their packaging or name changed, and the contents are the same old stuff, there’s no point in spending more money .

Why you should read the back label: Not every expensive product is necessarily the best. Often, people are tempted by just a big name and flashy appearance. Therefore, before buying, you should definitely read the label and see for yourself what the real difference is.