Low-Extender Product

A type of Price Leader product where the user benefits are lower than the Standard Leader product while the buyer benefits are the same. Standard Leader competitors usually introduce Low-Extender products to broaden their product line to cover the lower end of the market.

Low-Extender Product:
A type of Price Leader product where the user benefits are lower than the Standard Leader product while the buyer benefits are the same. Standard Leader competitors usually introduce Low-Extender products to broaden their product line to cover the lower end of the market.

Example 1:

RJR almost single-handedly created the market for discount cigarettes in 1985 when it launched Doral, selling for 40% less than its regular Camels and Winstons.
(Year 1985-SIC 2111)

Explanation: RJR is a Standard Leader competitor in the industry. It introduced a Low-Extender Price Leader product with its Dural brand.

Example 2:

IBM will launch a different subsidiary, Ambra, to sell its ultra-cheap machines that won't bear IBM's name.
(Year 1993-SIC 3571)

Explanation: IBM is a Standard Leader company introducing the Ambra brand name as a Low-Extender Price Leader product.

Example 3:

Celeron marked Intel's entry into the market for chips to go into PCs costing less than $1,000. Critics said that it was a stripped-down product that didn't deliver the speed PC users needed.
(Year 1998-SIC 3674)

Explanation: Intel is the Standard Leader in the industry. Its has introduced the Celeron as a Low-Extender Price Leader product.

Example 4:

Jaguar is advertising its Select Edition pre-owned Jaguars to make the initial purchase of its cars more affordable. Each car is no more than 5 years old, has been driven no more than 60,000 miles and is backed by a special Select Edition 12 month or 12,000 mile factory warranty.
(Year 1987-SIC 3711)

Explanation: Jaguar is a Performance Leader company selling Performance Leader products. However, the Select Edition is a Low-Extender Price Leader product in its market.

Example 5:

GE will offer a more affordable magnetic resonance imager. Because it uses less powerful magnets than those found in top-of-the-line units, it will cost about 30% less. But the less sophisticated model is not as useful for some diagnostic functions.
(Year 1987-SIC 3845)

Explanation: GE is a Standard Leader in this industry introducing a Low-Extender Price Leader product to its product line.