<P> Companies may wish to enter the high end of the market for more growth, higher margins, or simply to position themselves as full - line manufacturers . Many markets have spawned surprising upscale segments: Starbucks in coffee, Haagen - Dazs in ice cream and Evian in bottled water . Leading Japanese auto companies have each introduced an upscale automobile: Toyota's Lexus, Nissan's Infiniti, and Honda's Acura . Note that they invented entirely new names rather than using or including their own names . </P> <P> Brands extending their product lines upward successfully can benefit through the increasing amount of middle - class consumers that are becoming more capable and willing to invest their money in luxury products . Brands can adjust pricing to coincide with trends within the economy, to ensure the luxury goods do not lose too much of their consumer demand within their most popular market segments . </P> <P> Upward product line extension can advantage the brand through associating the new luxury product addition with the existing brand name . Additional high quality, high priced products can improve the image of the brand and create a new outlook within the consumer market through consumers associating the brand with its more exclusive and elite products . This can help with sales and demand if the luxury goods become quite popular and favourable . </P> <P> However, cheaper products may draw attention and demand away from a brands upward product line extension . A way to combat this is to increase the quality of the brands luxury goods, as well as targeting aspects of the consumer market that are able and prepared to pay more for the higher quality product . </P>

What is a line extension describe how one of the following might create a line extension