Brand extension pathway for niche-players (original) (raw)

Brand Extension Strategy : Literature Review and Conceptual Model Development

2016

IntroductionAccording to David Aaker, the brand is not just a name, term, sign or symbol of a product, but the extremely priceless asset of that company. A robust brand always helps in increasing the customer loyalty of the company which will eventually result in higher profits for the company (Aaker, 1990). The commonly accepted fact in the market is that acquiring new customers is relatively more complex than retaining the available pool of customers. Strategies are inevitable for organisations which are planning to rope for success and launching new products in the market irrespective of consumer durables or non-durables. The usage of brand extension, to be precise "using established brand names for launching new products", is increasingly popular and influence on new product starters (Volcker et al, 2010). Arslan & Altuna (2010) had defined brand extension as 'Using a successful current brand for the introduction of new products". The majority, say up to 95%, ...

Types of Brand Extension Strategies and Their Role in Brand Congruency in Corporate Brand Extensions

Cross-Currents: An International Peer-Reviewed Journal on Humanities & Social Sciences

Owing to the high costs of launching new products, brand extensions have been the basis of national and international strategic growth for many firms over the past few decades. Brand extension strategy consists of using an established brand name to launch new product. One of the main advantages of using brand extensions is the reduction of communication costs; as a result of the synergies generated between experience and communication of any products of the firm. Furthermore, brand extensions reduce the costs of brand name introduction and enhance the probability of success since consumers transfer their perceptions and attitudes from the original brand to the extension. Brand extensions can also have positive effects for the parent brand. They can strengthen the brand meaning, help to build brand equity, and encourage purchasing of other products from the firm, particularly amongst nonusers of the parent brand.

Brand Extension: a Strategy for Competitive Advantage

2012

The success of a product depends upon its positioning which in turn is related to its brand name. A brand name may be defined as, a name, term, sign, symbol, or design, or a combination of these, that identifies the manufacturer or seller of a product or service (Kotler and Armstrong, 2002). Zikmund and d’Amico (1984) defined brand as any name, term, symbol sign, design, or unifying combination of all these that identifies and distinguishes one product from another competitive product.

Corporate Brand Extension: A Review of Literature

IOSR Journal of Business and Management , 2021

The purpose of this paper is to review the literature of corporate brand extensions-the story so far. There are various aspects covered in this paper which would help the researcher in the field of corporate brand management and extension to get an overall understanding in this area. Aspects such as Corporate brand extension evaluation, positive and negative effects of extension and the study conducted so far. As we know, brand extensions allow consumers to draw conclusions and form expectations about the potential performance of a new product (i.e. the brand extension) based on their existing knowledge about the brand. This research paper would also benefit the organisations who adopt Corporate branding strategies, specially when it comes to corporate brand extension. This would in turn benefit the organisations in taking Corporate strategic decisions specially with respect to products to be launched in an unknown category.

Brand extensions: A manager's perspective

Journal of Brand Management, 2005

Earlier brand extension research has aimed to explain the underlying mechanism of consumers' evaluation and purchase intention regarding brand extensions. With a few exceptions 6-8 this research has predominantly focused on consumers' evaluations. 9 Drawing mainly from psychological theories, it has provided an understanding of the key variables that consumers use for evaluating brand extensions. 10 Recently, researchers have been more concerned with the external validity of their models, and have included more extension attribute information. 11-13 Despite the large body of work on consumers' evaluations of brand extensions, little academic attention

The Impact of Brand Extension on the Parent Brand Image Final Proposal

Brand extension is a business strategy in which a company marketing a product with a well-established image uses the same brand name in a different and newer product category. The extended product is called a spin-off. Organizations use this strategy to increase brand equity and profitability. By being associated with a strong parent brand, brand-extensions gain instant consumer recognition, providing marketing cost efficiencies. Brand extension strategies are of great importance from both a theoretical and a managerial perspective, by directly affecting opportunities of value creation. In actual fact, while firms have constantly increased the implementation of these strategies to penetrate into newer markets, many researches have been committed to investigating the factors that are likely to influence brand extensions' success.

What really matters? A triumph of brand extension: Evidence from Engro Corporation

2018

The intent of this study is twofold; firstly, to find out the different elements of the brand extension in different category product that influences it, secondly, evaluate the impact of these dimensions on brand extension. The study considered Engro as parent brand. The targeted brand was Engro Foods. A total of two hundred valid responses were collected from Lahore and Sahiwal through a self-administered survey. Reliability was tested by using Cronbach’s alpha. The study used descriptive statistics; correlation analysis and regression analysis. Correlation results indicate that all variables; similarity, perceived risk, brand reputation, and innovativeness were positively correlated with evaluation of brand extensions. However, “brand reputation” was strongly correlated with the evaluation of extensions as compared to other variables. As far as regression analysis is concerned adjusted R 2 indicates that 48.0% of “Engro” extension was affected by the independent variable. The mean...

A process-tracing study of brand extension evaluation

Journal of marketing research, 1991

The authors explore the implications of considering a brand as representing a category consisting of its products. They report results of a laboratory experiment in which response times and verbal protocols were used to examine processes related to the evaluation of brand extensions. Evaluations of brand extensions were influenced both by the extension's similarity to the brand's current products (brand extension typicality) and by the variation among a brand's current products (brand breadth). An inverted U describes the relationship between brand extension typicality and evaluation process measures. Moderately typical extensions were evaluated in a more piecemeal and less global way than were either extremely typical or extremely atypical extensions. Subjects' attitudes toward brand extensions were correlated highly with their ratings of brand extension typicality. A Process-Tracing Study of Brand Extension Evaluation Brand extension has been called "the guiding strategy of product planners in the 1980's" (Tauber 1988, p. 26). With such products as Zenith computers, Atari fax machines, and Ivory shampoo, businesses attempt to use the equity built up in established brand names to help launch new products.' Capitalizing on an established brand name is a growth strategy that seems destined to increase in popularity as the cost of launching a new brand name skyrockets. Recent cost estimates for developing a new brand range from 80millionto80 million to 80millionto150 million (Aaker and Keller 1989; Tauber 1988). Successful brand extension depends importantly on IThe specificity of the term "product" affects whether a new product offering represents a real extension of the brand. A 19-inch portable color television set also can be described as an "electronic product" or simply as a "television set." Here we generally refer)0 "products" and "brand extensions" at the latter intermediate level of specificity (e.g., "television set").