Brandname: Chicks
Company Name: Chun Au Kitting Factory Ltd
Management Function Analysis
The company exhibits a good illustration of effective use of the Product Lining Strategy in its Product Development and Product Portfolio Management.

Product lining is the marketing strategy of offering for sale several related products. Unlike product bundling, where several products are combined into one, lining involves offering several related products individually. The lining strategy is a direct result of the Product Life Cycle and the Technology Life Cycle effects on company's classical product and therefore, there is a need to "trading up" the product line extension to capture the new technology and new customer demand and culture. In fact, the line extension products have an advantage of sharing the brand image of the company's "Image Anchor" which is its historical product.
Implications for SMEs
The case highlights the importance of Product Management in facing up the reality of Product Life Cycle and Technology Life Cycle. Products, once in a Growth stage, may have to face the stage of Decline, due to competition, change of consumer culture, technology development, or change in regulatory legisations etc.

Product Lining strategy is a good way to enable the SMEs to have sustained presence in the market, while maintaining its brand or product image built up by the phased out products. When the company adds a new product to a line, it is referred to as a line extension. When the company adds a line extension that is of better quality than the other products in the line, this is referred to as trading up or brand leveraging. When the company adds a line extension that is of lower quality than the other products of the line, this is referred to as trading down. When the company trades down, it will likely reduce its brand equity and the company is gaining short-term sales at the expense of long term sales. "Trading Up" and "Trading Down" strategies are the sort of alternatives that the SMEs can adopt, depending on the characteristics of the target market segment in which the product is launched.