Applied Research On Niche Theory Among Line Extensions Strategy Of Daily Chemical Products

Faced with increasing fierce competition in the market situation as well as high-riskmarket for new products,line extensions strategy becomes an effective way for anenterprise to gain market share and profit in the short term. However, if the inappropriateuse of this strategy, it will stimulate the potential effect of cannibalism, this effect not onlyreflects Homogeneous self-replacement incompletely,leading the market share phagocyticin each other,it also contains the insignificant market share growth of new productsbecause of the brand name over-extension and the original products dragged down by newproducts, leading to marked decline in market share. Cannibalism effect is oftenoverlooked by these enterprises in the practice of line extensions strategy. In order tomaximize the effect of the cannibalism, this article bases on the related concept ofpopulation, through analogy analysis, introduces the concept of population-related researchto product, proposes the concept of product-population; with the use of niche theory, baseson the dimensions of customer perceived value, builds super-dimensional volume niche ofproducts, form the solution based on niche separation theory and niche overlap theory toachieve balance and reconcile of product replacement and brand fit finally.First, the article references the research result of product ecology, define the conceptand the relationship between product-population and its sub-specie clearly, combined withecological studies on the relationship between population, explain the drivers of theenterprise taking advantage of line extensions strategy in-depth analysis. Secondly, fromthe point of the customers, structures the ultra-dimensional volume niche of products,baseon Sheth-Newman-Gross consumption value model,analysises the dimensions of customerperceived value in the context of line extensions strategy.Through additions andamendments,determines the four dimensions ultimately: functional value of products,situational value of products,epistemic value of products and social value ofbrands.Finally,through the amendments and additions of the dimensions of customerperceived value, builds super-dimensional volume niche of products and divides thevarious dimensions,makes the product-populations and their sub-species possess thedifferent parts or possess the same part to achieve the purpose of niche separation of theproducts and niche overlap of the brands to guide the daily chemical products enterprises the rational use of line extensions strategy and reduce the negative impact of cannibalismeffect.