Final answer:
The correct answer is: It has no effect on the other products in the company's product line.
Step-by-step explanation:
When a product line extension is very similar to the existing products of a company, it often leads to a phenomenon known as cannibalization. This occurs when the new product extension starts to reduce the sales of the company's other products because customers switch from purchasing the existing products to the new one. This effect is due to the similarities between the products, which results in customers seeing little differentiation and choosing based on novelty or slight preference shifts. However, it's not always the case that a product line extension will reduce the sales of other products; sometimes they can complement each other, depending on how the extension is marketed and positioned within the market.
For instance, a new flavor of laundry detergent may appear to the market, reducing sales of the original flavor from the same brand. Yet, if the brand positions the new flavor as a complement rather than a substitute—for example, by marketing one for cold washes and the other for tough stains—this could potentially increase the overall sales for the company's product line.