Q.1
Answer: Product line extension
Q.2
Penfold’s G3 is a product line extension. This is because the company used its already established product brand and name to make a new item within the same product category. G3 is a blend of three vintages to make a completely new product within a new price range. Even the pricing strategy is different from the other products within the same category. Essentially, the new product is a new flavor that rides on the wave of previous products, brand, and name. product line extension means that a company lengthens the product line beyond the current range. Here, Penfold’s G3 uses an established brand name to alter certain features of a product in order to meet the needs of a given market segment. By blending different flavors to acquire a new taste, the G3 has ideally become an independent product under the same product line and brand. A new flavor, new form, color, and packaging have made the G3 a product line extension.
Product modification, on the other hand, is a basic improvement of an existing product by making some important changes in its characteristics, size, colour, packaging, and nature of the product in order to deal effectively with the consumer demands. It means that the company immediately begins producing the new product to replace the older version. For example, when Coca-Cola changes its Sprite packaging to include a more modern and stylish look, every other Sprite produced looks like the improved version.
