Factors to ensure successful brand extension. The can sometimes be impact that are positive on extension of brands. A brand extension that is successful aids the parent brand in getting loyalty brands. (Chen & Liu, 2004). It came out or was noticed also that value or quality of brand extension and its adequate at the market do not weak the attitude brand by the parent brand.
Thus, there are different disadvantages that can be taken. Dilution of the existing brand image is that the extensions are using the most important asset of the company that is its brand name. It can be a major advantage for the extension but it represents as well a huge risk for the existing brand because the brand image can be diluted. Those positive and negative consequences are reciprocity effects and defined as a change in the initial customer’s behaviour regarding the brand, after an extension. A brand extension can damage the brand.
Brand extension refers to marketing strategy in which same name of a brand is used in a different product category. In short it is similar to brand stretching. Brand extension helps in evaluating opportunities related top product category, it identifies resource need and it helps organization to increase brand equity. brand extension is successful when customers value and goals match with that of core business and when these goals and value are personified in a brand then the brand is more acceptable by the customers in a business. brand extension is done for some purpose like for growth and development, trend in industry ,Economic Benefits and also for creating competition.
The morecexposure of brand extension can be seen in fast moving consumer goods segment (fmcgs) such as personal care products (Ambler and styles, 1997) . Myriad academic studies have increasingly indulge in exploring phenomena of prosperous brand extension dimension and consumer reactions towards it (Aaker and keller, 1990;Ambler and style , 1997; barone ,2005 ;bottomley and Holden , 2001;fedoekhin , park and Thomson , 2008) . In branding literature there exist a wast horizon of knowledge related to brand extension and increasingly researchers are directing their efforts to investigate it (czellar , 2003) . The affiliation of new product with existing brand can improve consumer knowledge and can reduce their reluctance and confusion to shop that new product . Keeping this in mind corporate world is increasingly indulging in brand extension and facing its consequences in terms of success and failures .
Every company hopes to utilize brand extension leverage with its competitors and increase the sales or profits with the new product they offer. The purpose is to attract potential customers and retain loyal customers. When conduct brand extension, company should use a well-known
Introduction: A brand extension is understood to be using the current brand name for another product to enter in a market, brand extension can be described as new product development strategies that can reduce financial risk by using the name of the brand which already existing to enhance the confidence of the consumer. Example connected with brand extensions are Coca Cola, Pepsi, Nestle, P& G, Uniliver, Fine and etc. Successful brand extensions count on consumers perceived fit, Innovation, concept and Consistency, perceived quality, brand familiarity. For many years researchers tried to find the major factor that affects the brand extension of the firms and how it does affect the business. It is studied that brand extensions can result in
A slogan or jingle creatively pairs the brand and the appropriate cues. Other brand elements like logos, symbols, characters, and packaging also aid recall. The way marketers link the brand and its product category, such as with an advertising slogan, helps specify the power of product category links. For brand with strong category associations, like ford cars, the distinction between brand recognition and recall may not matter such, consumers thinking of the category are likely to think of the brand. 2.2 What is Brand image, and how do we achieve
Priyadharsini et al. (2013) studied on Brand Extension which basically, is a peculiar strategy related to the Brand management. There are various factors that tend to affect the brand extension process. These may include Parent Brand experience and awareness, brand image, perceived extension fit, perceived Quality, perceived performance and similarity of the products. Moreover, the parent brand loyalty, equity and personality also play a huge part in the brand extension process.
Talking about rare pieces of works, what entering right into our minds is to preserve it. In a business world, we also decide to preserve our position to strengthen our images. For some entrepreneurs, the word ‘Brand Extension’ might mean ‘devalue’ because this action brings about some consequences that lead to change the brand positioning according to several cases that have been failed with brand extension. For instance, in 1999, the famous women magazine named Cosmopolitan has launched the new product that really contrast with what they actually do, The Cosmopolitan yogurt. Sounds awkward?
Brand image is nothing but organization character. Brand image may create by good experience or sometime by observation. A positive brand image is created when a person is associated with a specific brand and recommend that brand to others. Brand image is one of the most powerful aspects that establish the reputation of a specific brand in the marketplace. Without a positive and strong Brand Image, companies cannot