Wednesday, June 10, 2009

Relavance of Product Extensions

Wipro has come up with its EGO range of netbooks. All leading PC manufacturers like HP, Acer and Lenovo have launched their netbooks and as such, Wipro doesn't lag behind. They too have launched their netbooks under the brand name, EGO.

Well, how relevant do you think is this line extension. Wipro has already been in to maufacturing and sales of laptops, which are nowhere in the market. Wipo couldn't attract customers to buy the product. I don't know the exact causes of the product failure, but possible reasons could be inadequate market communication. Also, Indians do have a stigma when it comes to India based technology products.

Well, whatever be the reasons for Wipro's failure in laptops category, I personally think that extending the product line is not a great idea. Why so?

It may sound stereotypic to you, but thats what it is. Wipro as a brand is not in the Evoked set or Consideration set of consumers. As such, even POP branding is not gonna convince the customers to turn your consumers. I think Wipro must try to build its brand before launching new product lines, as these new products won't sell. Consumers aren't aware of it and as such, don't want it.

Let's see how the new product fares in the market.

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