A company can expand or diversify its product-portfolio in four ways.
The multiplication of products in a company requires thinking on how the system of brand identities (names and symbols) given to products will be organized. This system should be able to clarify the overall offer and structure it in such a way that it is easily understood. Naturally, it should help to achieve greater cost-effectiveness, and positively impact sales and promotions in the short term and help build the overall brand equity in the long term. There is no one-size-fits all solution to this and each company may choose to employ its own system of organizing its portfolio. However, despite many exceptions, there are some commonsense guidelines.
| New Product Category | Same Product Category | |
| New Brand Name | New Offerings | Flanker brands |
| Same Brand Name | Brand Franchise Extensions | Line Extensions |
The multiplication of products in a company requires thinking on how the system of brand identities (names and symbols) given to products will be organized. This system should be able to clarify the overall offer and structure it in such a way that it is easily understood. Naturally, it should help to achieve greater cost-effectiveness, and positively impact sales and promotions in the short term and help build the overall brand equity in the long term. There is no one-size-fits all solution to this and each company may choose to employ its own system of organizing its portfolio. However, despite many exceptions, there are some commonsense guidelines.