Scenario 1-2
Chug Enterprises is planning to create a new line of products and enter into the sports drink market. They plan to advertise the first product to teenagers as being the best-tasting sports drink on the market. The second product will be advertised to adults as being the lowest calorie sports drink one can buy. The third product will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure. Each product will have separate, distinctive packaging.
-(Scenario 1-2)Chug's three different sports drinks are very popular in markets across the world.Now the company plans to launch a similar range of carbonated drinks by building on the popularity of the previous products.This is an example of ________.

Question

Scenario 1-2
Chug Enterprises is planning to create a new line of products and enter into the sports drink market. They plan to advertise the first product to teenagers as being the best-tasting sports drink on the market. The second product will be advertised to adults as being the lowest calorie sports drink one can buy. The third product will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure. Each product will have separate, distinctive packaging. 
-(Scenario 1-2)Chug's three different sports drinks are very popular in markets across the world.Now the company plans to launch a similar range of carbonated drinks by building on the popularity of the previous products.This is an example of ________.

Quizplus · Accepted Answer

This is an example of a brand extension, which is when a company introduces a new product under an existing brand with the hope that the popularity of the original product will carry over to the new product. Chug Enterprises is using the popularity of their sports drinks to launch a similar range of carbonated drinks. Market segmentation is not evident in this scenario as the company is not dividing the market into different segments based on demographics or behavior. National advertising and differentiation strategies may be used, but they are not the primary focus of the scenario.

Scenario 1-2 Chug Enterprises Is Planning to Create a New Line of Line