M.L.Manufacturers Inc.is an American clothes manufacturing firm that sells women's fashion apparel under the brand name DressChic.After extensive market research,the firm introduces a line of children's clothes under the brand name Mischief and a line of affordable work wear for women under the brand name DressSmart.In this example,M.L.Manufacturers Inc.uses which of the following strategies?

Question

Quizplus · Accepted Answer

M.L. Manufacturers Inc. is introducing new product lines under different brand names, DressChic, Mischief, and DressSmart. This is an example of a horizontal brand-line extension strategy, where a company adds new product lines under the same brand name. Vertical brand-line extension strategy involves introducing new products within the same category or product line, while new product-market brand extension strategy involves introducing a brand into entirely new markets. Co-branding involves two or more brands collaborating to create a product, and product bundling involves offering several products as a package deal.

MLManufacturers Inc