an analysis on consumer perception towards brand extension
DESCRIPTION
a study on brand extensionTRANSCRIPT
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DISSERTATION REPORT ON
“AN ANALYSIS ON CONSUMER PERCEPTION TOWARDS
BRAND EXTENSION”
FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF
MASTER IN BUSINESS ADMINISTRATION
SUBMITED BY
SAVIRAL CHOUDHARY
(MBA M&S-IV)
UNDER THE GUIDANCE OF
Ms PARUL VERMA
(Lecturer ABS)
AMITY UNIVERSITY RAJASTHAN
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PREFACE
The Dissertation work is an excellent opportunity to give theoretical knowledge a
practical shape .This research is done to know the consumer perception towards
“Brand Extensions” .The research was conducted in the month of April 2013.
The researcher used a well structured Questionnaire to collect the secondary data
and books, research paper were used to collect primary data to be used in
preparation of report.
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ACKNOWLEDGEMENT
I dedicate this page to all those who have silently or actively left indelible mark on
my project report, so that they may give credits which richly deserve.
Talent and capabilities are of course necessary but opportunities and right guidance
is two very important backups without which any person cannot climb the ladder
for success. Proper guidance and direction is required in order to achieve goal and
making optimum of each and every opportunity.
It is my great privilege to have dissertation in such a good area.
I am thankful from the core of my heart and express my feeling of gratitude and
acknowledgement to my project guide Ms Parul Verma(Lecturer ABS) whose
constant support and faith in me always motivated me and their knowledge and
brilliance has pulled me out of doldrums in this project.
I would also like to express my gratitude to Major Gen BN Kaul (Pro VC) and
Mr Ashish Kumar (Deputy Director ABS) whose enormous assistance helped me
in completion of this project.
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DECLARATION
I hereby declare that this project report “An Analysis on consumer perception
towards Brand Extension” in partial fulfillment of the requirement of Master in
Business Administration(MBA) at Amity University, Rajasthan which is carried
out during my research project in 4th semester (session: 2011-2013) is based on
primary and secondary data collected by me under the guidance of Ms Parul
Verma and is true to the best of my knowledge.
SAVIRAL CHOUDHARY
MBA (M&S) IV SEM
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CERTIFICATE BY FACULTY GUIDE
This to certify that SAVIRAL CHOUDHARY (A20001911045) a student of
Master Of Business Administration (MBA-M&S) , class of 2013, Amity Business
School, Amity University Rajasthan has done the Dissertation Project under my
guidance for the project Title “An Analysis on consumer perception towards
Brand Extension”
This project report is prepared in partial fulfillment of Master of Business
Administration (MBA) to be awarded by Amity Business School, Amity
University Rajasthan.
SAVIRAL CHOUDHARY Ms PARUL VERMA
Faculty (ABS)
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EXECUTIVE SUMMARY
Brand plays an important role of creating identification and differentiation within
products. Brand extension means use of established brand name in product
categories. This dissertation analyzes consumer perception towards an extension.
In this study respondents are asked questions and the questions were based on
some parameters. A exploratory study is conducted with help of a Questionnaire on
110 respondents to know their general views regarding how they evaluate any
Brand extension.
This project also measures the purchase willingness towards target extension by
asking consumer their likelihood of purchase of extension if they find it in stores.
This project also measures respondents willingness to give preference towards
extension when they are exposed to scenario where they have two or more options.
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TABLE OF CONTENTS
1) Introduction to Study………………………………………………………….
2) Literature Review……………………………………………………………..
3) Research Methodology……………………………………………………….
4) Introduction of Brand Extension……………………………………………...
5) Data Analysis and Interpretation……………………………………………...
6) Finding and Conclusion………………………………………………………
7) Bibliography…………………………………………………………………..
8) Annexure……………………………………………………………………...
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CHAPTER I: INTRODUCTION TO STUDY
Brand plays a important role of creating identification and differentiation within
products and services for customers. It means that brand is reference that
consumers recognize and consider in their purchase decisions ; and it also provides
a medium for marketers to target and engage with their customers. By increasing
market competition and fragmentation of products, both academia and business
professionals have drawn their attention to effectiveness of Brands . Many
different aspects of branding have been investigated including brand extension.
Brand extension provides opportunity for sustainable growth by catching consumer
value through famous Brand names . The main advantage of the Brand extension
are it reduces the cost of communication, reduce the cost of Brand name
introduction and enhance the probability of success; and disadvantages of the
extension are it may change the beliefs and the parent brand and reduce the sales of
the other produce for same and brand which ultimately cause the loss of equity .
Hence it inevitable to understand the success factors involved in making brand
extension successful.
Brand extension that is use of established brand names to launch new product
represent one of the most frequently used branding strategies. Extending brand
both within and beyond the original product category is deemed to be profitable.
Nevertheless, the success of brand extensions is uncertain. Failure rates of brand
extensions in many FMCG product categories are approximately 80 %. Therefore,
potential determinants of brand extension success have emerged as an important
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focus of research inquiry to provide insights that may help managers reduce the
failure rates of brand extensions.
Launching new products can be an attractive growth strategy, however this is not
without risks. Some estimate that 30-35% of all new products fail while others are
even more pessimistic, citing that only two out of ten new launches succeed. Due
to factors such as high advertising costs and the increasing competition for shelf
space, it has become more difficult to succeed with new products. An increasingly
popular approach to reducing risk when launching new products is to follow a
brand extension strategy.
Given the importance of brand extensions, a better understanding of this topic is
needed. Researchers have predominately investigated brand extensions amongst
tangible goods. By contrast few have investigated the service sectors a surprising
finding given the significant economic importance of services.
Many brand extension studies have used laboratory experiments with students and
fictitious brands. The external validity of these studies has been questioned and
criticisms leveled against generalisability. This study will explain that how
customer perceive Brand extension when they are under different circumstances.
By knowing the consumer evaluations of brand extensions will help the company’s
to design their marketing strategies.
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CHAPTER II: LITERATURE REVIEW
BRAND EXTENSION
Brand extension is a “large network of sub-brands built by a company.” Sub –
brands allow a company to enter new product categories, new consumer markets
and new situational uses for brands. Companies consider brand extension as a cost-
effective, low –risk way to introduce new products or services in response to a new
consumer need or a different demographic.
Brand extensions affect recall and recognition because they take on the parent
brand’s name. They influence the consumer’s attitude towards the brand extension
in three steps: recognition, sub typification (establishing imagery based on the
parent brand) , and the transfer of associations and attitudes.
BRAND EXTENSION STRATEGY
There are two major types of brand extension strategy; horizontal and vertical (
Aaker and Keller, 1990; Chung, Anne & Margo, 2001; Laser et al., 1995;
Rangaswamy et al. 1993).
Horizontal Extension Strategy
Horizontal brand extensions involve applying the existing brand name to a new
product to be introduced in the market. This newly extended product can either be
in a similar product class or as a product category which is entirely new to the
firm( Chung et al.,2001). For example, Ivory soap introduced Ivory detergent as its
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newly extended brand. Here Ivory detergent is a new product class from its
original brand. Ivory soap (Chung et al.,2001) .Aaker and Keller (1990) further
suggested that based on the difference in focus; there are two additional types of
horizontal brand extensions: line extension and franchise extension. Line extension
strategy employs a current parent brand name to enter a new market segment in the
same product class such as Diet Coke and Diet Pepsi are specifically targeted
towards health conscious consumers. Franchise extension strategy uses a current
parent brand name to enter a new market with a different product category that is
relatively new to the company. For example, Caterpillar, one of the world’s leading
manufacturers of construction and mining equipment launching its clothing lines is
an ideal for the franchise extension (Pitta & Katsanis, 1995).
Vertical Extension Strategy
A vertical brand extension involves using the existing brand name to the same
product category to be introduced in the market, at a different price/quality
continuum ( Aaker & Keller, 1990). For example, Riders by Lee is an extension of
the product Lee Brand , which concentrates on apparel or clothing for both and
men and women. Researchers state that vertical extensions provide the
management an opportunity to leverage the core brand’s equity more quickly (Pitta
& Katsanis, 1995). Vertical brand extension strategy has been a common practice
among various industries, such as automobiles like Acura, Lexus and Infiniti are
also good examples of such extensions. However previous researches have
suggested that a vertical brand extension strategy might create negative impact on
the core brand and its evaluation if the extended product was not perceived
appropriately by consumers (Dacin & Smith, 1994; John,1993; Ries & Tout,
1986).
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It is observable that the brand owners must realize that brands are one of the most
precious assets and need to be managed with care and deliberation when deciding
to extend brand . There are many indicators from the consumer perspective, which
the company might investigate in order to track its external environment’s reaction
toward their brand executions. Such study would help the company to make sure
that the indispensable values and qualities of the brand are clearly understood and
communicated to its final consumers.
In an rising competitive environment the brand marketers are looking for ways to
expand the their portfolios and at the same time decrease the cost of the new
products introduced as well as diminish the risk of new product failure. One of the
most popular ways to achieve this is to put a new product created in another
category under the name of existing brand. This is called brand extension (Fox et
al., 2001).
According to Keller and Sanjay (2003), the advantage of a strong brand is the fact
that it makes it easier for consumers to accept a brand extension. Due to the fact
that brand extension diminishes the risk regarding consumers and decreases the
cost with marketing and promotion, It has become the most frequent product
strategy over the last two decades. Still, “brand extension can be a double-edged
sword” (Keller and Sanjay, 2003,p.12)
Accoding to Murphy (1990), the key factor in brand extension is to understand the
main values that the brand stands for and to develop a well structured plan of
action for brand equity.
In the evaluation of service brand extensions perceived similarity is a crucial
factor. This finding concurs with the hypothesis that any brand which is extended
into similar categories should receive high consumer evaluations ( see, eg, Aaker
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and Keller 1990).Secondly the likelihood of successful brand extension is
influenced by parent brand. Building a favourable reputation for a parent brand is
an important contributor to the success of brand extension. Also the perceptions of
the risk associated with new product categories is an important factor influencing
brand extension judgements for durable goods and services.
Extension Similarity:
Park et al. (1991), stated that similarity is a function of both or either of “ brand
concept consistency” and “brand breadth”; where concept consistency is
continuation of general brand image and brand breadth refers to closeness of
extended product category with existing product range. According to Huifang Mao
and Krishnan (2006) consumers favors those extension when product category
similarity is high.
Perceived similarity influences consumers to shift their beliefs and experiences
from original brand to new extension, so eventually consider the new product
credible ( Boush 1997 ; Build et al. 2009; Batra et al. 2010). However negative
feedback can also be received if perceived similarity is low, because consumers
perceive that extended product belongs to other category which parent brand does
not have.
Assumption in the use of brand extension is that strong brands offer greater
leverage for extension than weaker brands (Aaker 1990;Aaker and Keller 1990) .
Consumer predispositions towards brand implicitly defines brand strength
(Marketing Science Institute 1988). Established brand tend to be used as quality
cues (Bellizzi and Martin 1982; jacoby, olson and Haddock1973; Wernerfelt
1988).
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Fit and similarity
Many authors suggested that an effective brand extension must be perceived as a
“fit” with the original brand (Aaker and Keller 1990; University of Minnesto
Consumer Behabior Seminar 1987; Tauber 1988)
Tauber (1988) defines Fit as the extent to which a consumer accepts the new
product as a logical and expected extension of the brand. A poor fit between the
original brand and the extension may diminish the appeal of the new product.
Aaker and Keller (1990) studied three aspects of fit: (1) complementarity, defined
as the extent to which two products can be utilized in common usage situations or
can together satisfy some need ( eg, glf clubs and golf balls); (2) substitutability,
or the extent to which the two products can replace the other in satisfying the same
need( i.e, potato chips and pretzels); (3) transferability, defined as the extent to
which manufacturer’s expertise in one category transfers to the extension product .
This expertise includes production facilities, employees and the skillsof the firm.
Aaker and Keller (1990) found that neither complementarity nor substitutability
had significant main effects in rating the brand extensions. Rather the
complementarity and substitutability measures interacted with the perceived
quality of the original brand to predict brand extension evaluation. Transferability
had a direct impact on the evaluation of brand extensions.
Categorization and brand extensions:
Using the concept of categorization theory a number of studies have examined
consumer evaluations of brand extensions ( Bousch and Loken 1991; Farquhar,
Herr and Fazio 1990; Hartman, Price and Duncan 1990; Kardes and Allen 1991).
A category contains all the information for a class of objects considered to be
equivalent. People tend to organize things by classifying them into different
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categories. Attributes and characteristics are common in objects within a category
(Mervis and Rosch 1981). If an object has more associations with other category
members, the more likely it is to be perceived as a prototypical of that category
(Rosch and Mervis 1973; Smith and Medin 1981). Individuals perceive members
of a category to vary in the degree to which they are typical of category. In the
context of brand extension, the degree to which the extension can be categorized
with the original product may influence acceptance by the consumer.
Bousch and Loken(1991) used categorization theory to explain consumer
evaluations of brand extensions. In this study they examine the effect of brand
category breadth and brand extension typicality on extension evaluations. When a
brand name is associated with a diverse number of products in different product
categories, it is considered a broad category. In contrast , a brand name associated
with one or a few products , would be considered a narrow category.
In a similar study, Kardes and Allen (1991) investigated the role of perceived
variability in consumer inference by manipulating brand name and new product
concept information. The result of this study indicates that the umbrella category
does not automatically provide more leverage than a niche brand. Kardes and Allen
(1991) state that when a parent brand name is stretched too far, additional
extension may have negative impact on judgements about the parent brand. The
authors attribute their results to consumer tends to make conservative judgements.
Sequential Brand Extensions : Potential negative effects on the Brand
The effectiveness of Brand may diminish if number of extensions associated with
it increases (Aaker 1990; Kesler 1987; Ogiba 1988; Tauber 1985, 1988) The
underlying concern seems to be that the identity or meaning of the Brand will
become blurred in the minds of consumers as the number of products associated
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with that brand increases. Aaker (1990) offers some cautions about negative results
that can occur from poorly conceived brand extensions. Consequences mentioned
include undesirable associations to the parent brand , weakening of existing
associations and a tarnished quality image.
Romeo(1991) warned that there is danger inherent in creating brand extensions
within the same product category . If the extension is the target of negative
information , both the family brand and the extension may be negatively impacted.
Contrary to this perspective, Park, Jawrski and MacInnis (1986) offer a convincing
argument that the systematic extension of a brand can strengthen its status in the
minds of consumers. A normative framework called brand concept management
was proposed by Park, Jaworski and MacInnis (1986). The framework consists of a
sequential process of selecting, introducing, elaborating and fortifying the brand
concept. Park et al. recommend strategies for maintaining the brand image, varying
according to whether the brand concept is functional , symbolic or experimental.
Skills
Both Aaker and Keller (1990) and Sunde and Brodie (1993) findings suggested
that extension shall be positively evaluated if the consumers believes that the
parent brand has the skill required to make new product in new category. So it
means that even if the product category is new for original brand, extension may be
favorably evaluated if the consumers have confidence that original brand has skills
to do so. It means that consumer have positive attitude towards if they perceive
high similarity in technology/skills. Similarly, Youl Jun et al. (1999) suggested that
consumers attitude towards brand extension was found positive when technology
same or similar.
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Endorsing above arguments, Hem and Iversen (2009) suggested that it is essential
to have “high” perceived similarity in at least those dimensions or product features
which are most relevant or desired. That is new extension should have high
similarity in those dimensions which are more critical for consumers perspective .
Information
Consumer required information in developing the perceived similarity between the
parent brand and extension ( Bijmolt et al. 1998) . If the attributed information is
added in stimuli through better communication, and with the frequent consumer
exposure with extension the effect of similarity may increase (Klink and Smith
2001) . Also when there is low similarity, then elaborative communication strategy
which focuses to address the concerns of consumers improves the favorability of
the extension evaluation (Bridges et al. 2000)
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CHAPTER III: RESEARCH METHODOLOGY
Research methodology is used to give clear cut idea on what the researcher is
carrying out his or her research. In order to plan in a right point of time and to
advance the research work methodology makes the right platform for the
researcher to mapping out the research work in relevance to make solid plans.
Moreover methodology guides the researcher to involve and to be active in his or
her particular field of enquiry. Most of the situations the aim of the research and
the research topic won’t be same at all time it varies from its objective and flow of
the research but by adopting a suitable methodology this can be achieved.
Right from selecting the topic and carrying out till recommendations research
methodology drives the researcher in the right track. The entire research plan is
based on the concept of right methodology.
It details the procedure necessary for obtaining the required information, and its
purpose is to design a study that will test the hypotheses of interest, determine
possible answers to the research questions, and provide the information needed for
decision making.
RESEARCH OBJECTIVE
An evaluation of the overall Brand extensions in general
Analyzing consumer perceptions towards Brand extensions
To know the Factors contributing to success of Brand Extensions
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SIGNIFICANCE OF RESEARCH
Every research is conducted to fulfill some objectives and these objectives
fulfill some purpose and are significance of further researches. This research
will help organizations to generate profit and to increase there product
portfolio by analyzing the factors behind Brand Extension success and this
will also help them to understand the perception of consumers towards
Brand Extension.
This study will also help companies to formulate there marketing strategies
by understanding the Brand Extension in a better way,
RESEARCH DESIGN
A research design is a framework or blueprint for conducting the marketing
research project. It details the procedure necessary for obtaining the required
information, and its purpose is to design a study that will test the hypotheses of
interest, determine possible answers to the research questions, and provide needed
information needed for decision making.
Types of Research Design
There are following types of research design used in marketing research work
1) Exploratory research design
2) Conclusive research design
3) Descriptive research
4) Causal research
5) Cross sectional
6) Longitudinal
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7) Single cross sectional
8) Multiple cross sectional
A exploratory study was conducted for the research.
Exploratory research is designed to provide a background, to familiarize
and as the word implies just “explore” the general subject. A part of
exploratory research is the investigation of relationships among
variables without knowing why they are studied.
SAMPLING PROCEDURE
The term “sampling” indicates the selection of a part of a group or an aggregate
with a view to obtaining information about the whole. This aggregate or the totality
of all members is known as population although they need not be human beings.
The selected part which is used to ascertain the characteristics of the population is
called sample. While choosing a sample the population is assumed to be composed
of individual units or members, some of which are included in the sample. The
total number of members of the population and the member included in the sample
are called population size and sample size respectively.
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Types of Sampling
There are mainly two types of sampling probability and Non-probability which are
further divided into sub categories.
1) Probability sampling-In probability sampling method every element of the
population has a known chance of being selected. In probability sampling
method there is no chance of arbitrary or biased selection and therefore the
laws of probability apply.
Types of probability sampling
These are the following types of probability sampling
a) Simple Random Sampling
b) Systematic Sampling
c) Stratified Sampling
d) Cluster Sampling
2) Non-Probability Sampling-These methods do not provide every item of
population may known chance of being selected in the sample. The elements
of sample are selected on the judgement of the researcher .
Tpyes of Non- probability sampling
There are following non-probability sampling in marketing research
a) Convenience Sampling
a) Judgement Sampling
b) Quota Sampling
c) Snowball Sampling
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In this research Random Sampling is used because the respondents were selected
randomly and there was a equal probability of selecting respondents.
Data Source: Data source was primary, which include customers. The
customers were personally contacted by the researcher to collect the required
data.
Research Instrument: A schedule was used as the research instrument . In
this schedule the researcher included close ended questions only.
Sampling Plan: Sampling plan consisted of sampling unit, sample size.
Sampling Unit – A Sampling unit may be a natural geographical unit such as a
state, a district, a village, or a constructed unit. It may be a social entity such as a
family or a school. It may be also be an individual.
In this research customers from different places formed the sampling unit.
Sampling size-A sample size simply indicate that how many respondents should
be there in a sample. In this research sample size is of 110 customer.
Contact Method- Once the sampling plan is determined the researcher has
to decide how respondents should be contacted, Here a questionnaire was
developed and the respondents were personally contacted by the researcher.
Analyzing the Information:
Data preparation includes the editing, coding, transcription and verification of
Data. Each questionnaire or observation form is inspected, or edited and if
necessary corrected. Number or letter codes are assigned to represent each
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response to each question in the questionnaire. The data from the questionnaire are
transcribed or key-punched on to magnetic tape, or disks or input directly into the
computer.
The researcher tabulated the Data and then applied all statistical and graphical
methods for presenting the same.
Data Presentation Technique
The entire project should be documented in a written report which addresses the
specific research questions identified , describes the approach, the research design,
data collection, and data analysis procedures adopted, and presents the results and
major findings. The findings should be presented in a comprehensible format so
that they can be readily used in the decision making process. In addition, an oral
presentation should be made to management using tables, figures, and graphs to
enhance clarity and impact. It is the last step in research process is to present the
findings to relevant parties. The conclusion and recommendation on the basis of
data collected is presented in a systematic manner.
SCOPE OF STUDY
The study was conducted in the month of April 2013. This study analyses the
consumer perception towards Brand extension. The study will help companies to
understand that how consumer perceive an extension and what is there buying
behavior for an extension. This will help marketers to formulate there marketing
strategies and earn profit by introducing extensions. This is study will also be
helpful for companies which are planning to launch some new products by
providing them useful knowledge about extension and factors behind their success
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CHAPTER IV: INTRODUCTION OF BRAND EXTENSION
BRANDING
Every product or service has a brand, an identity that consumers recognize.
According to American Marketing Association , a brand is defined as a “name,
term ,sign ,symbol or design, or a combination of them intended to identify the
goods and services of one seller or a group of sellers and to differentiate them from
those of competition.” Branding is one of the most important assets accompany
can have. When thinking of a brand in ontological manner, it is neither true nor
false, nor is it absent or present. It is simple an entity that is unstable and
experienced differently through the eyes of every consumer. Simply put the brand
synthesizes knowledge, beliefs and emotions to reflect the essence of the product
or service; they create subjective, intangible views of the brand believed to be true.
The term “branding” did not gain prominence until the 1960s and 1970s, when the
world experienced a financial crisis and increased competition in the publishing
market place. The market intensified and brought the move towards “
humanization of commodities” and the development of niche marketing. The
human element of the product helps build trust between the brand and the
consumer.
Brands allow consumers to derive greater satisfaction from the product or service,
and the lower the risk of choosing the wrong product by reducing anxiety and
doubt. Powerful brands have longevity, perhaps immortality, when managed
correctly. Ultimately, a brands purpose is to affect consumer behavior.
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ROLE OF BRANDS
Brands identify the source or maker of a product and allow consumers either
individuals or organizations to assign responsibility for its performance to a
particular manufacturer or distributor. Consumers may evaluate the identical
product differently depending on how it is branded. Consumers learn about brands
through past experiences with the product and its marketing program, finding out
which brands satisfy their needs and which do not.
Brands also perform valuable functions for firms. First, they simplify product
handling or tracing. Brands help to organize inventory and accounting records. A
brand also offers the firm legal protection for unique features or aspects of the
product. The brand name can be protected through registered trademarks;
manufacturing processes can be protected through patents; and packaging can be
protected through copyrights and proprietary designs.
Brands signal a certain level of quality so that satisfied buyers can easily choose
the product again. Brand loyalty provides predictability and security of demand for
the firm, and it creates barriers to entry that make it difficult for other firms to enter
the market. Loyalty can also translate into consumer willingness to pay higher
price more than competing brands.
To firms brand represent enormously valuable pieces of legal property that can
influence consumer behavior, be bought and sold and provide the security of
sustained future revenues to their owner. Companies have paid large earning
multiplies for brands in merges or acquisitions, often justifying the price premium
on the basis of extra profits to be extracted and sustained from the brands, as well
as the tremendous difficulty and expense of creating similar brands from scratch.
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SCOPE OF BRANDING
Branding is endowing products and services with the power of a brand. Its all
about creating differences between products. Marketers need to teach consumers
“who” the product is by giving a name and other brand elements to identify it as
well as what the product does and why consumers should care. Branding creates
mental structures that help consumers organize their knowledge about products and
services in a way that clarifies their decision making and in the process, provides
value to the firm.
For branding strategies to be successful and brand value to be created, consumers
must be convinced there are meaningful differences among brands in the product
or service category. Brand differences are often related to attributes or benefits of
the product itself.
Marketers can apply branding virtually anywhere a consumer has a choice. It is
possible to brand a physical good, a service, a store, a person, a place, an
organization or an idea.
BRAND EXTENSION
Brand extension is the use of established brand name in new product categories.
This new category to which the brand is extended can be related or unrelated to the
existing product categories. A renowned/successful brand help an organization to
launch products in new categories more easily. For instance, Nike’s brand core
product is shoes. But it is now extended to sunglasses, soccer balls, basket balls
and golf equipments. An existing brand that gives rise to a brand extension is
referred to as parent brand. If the customers of new business have values and
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aspirations synchronizing/matching those of the core business and if these values
and aspirations are embodied in the brand. It is likely to be accepted by customers
in the new business.
CHAPTER V: DATA ANALYSIS AND
INTERPRETATION
1) To know the perception of respondents towards the image of extension.
OPTION
STRONGLY DISAGREE
STRONGLY AGREE
Interpretation:- Graph shows that 57.27 % of respondents have a positive image
towards extension while 42.72
positive image.
47
0
10
20
30
40
50
60
70
Strongly Disagree
CHAPTER V: DATA ANALYSIS AND
INTERPRETATION
To know the perception of respondents towards the image of extension.
RESPONSE
47
63
Graph shows that 57.27 % of respondents have a positive image
42.72% respondents says that extension does not carry a
63
strongly agree
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CHAPTER V: DATA ANALYSIS AND
To know the perception of respondents towards the image of extension.
Graph shows that 57.27 % of respondents have a positive image
says that extension does not carry a
responses
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2) To know the level of likeness towards the extension.
OPTION RESPONSE
STRONGLY DISASGREE 39
STRONGLY AGREE 71
Interpretation:-Graph shows that 64.54% respondents agree that they like
extensions while 35.45& respondents dislike extensions.
39
71
responses
strongly disagree
strongly agree
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3) To know how customers perceive the relationship between parent brand and
extension.
OPTION RESPONSE
STRONGLY DISAGREE 42
STRONGLY AGREE 68
Interpretation:- The above Graph shows that 61.81% respondents agree that
extensions are closer to parent Brand while 38.18 does not agree that there is
closeness between parent brand and extension.
42
68
0
10
20
30
40
50
60
70
80
strongly disagree strongly agree
responses
strongly disagree
strongly agree
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4) To know that whether the customer would like to try extension.
OPTION RESPONSE
STRONGLY DISAGREE 3
FAIR DISAGREE 7
DISAGREE 2
NEUTRAL 30
AGREE 55
FAIRLY AGREE 7
STRONGLY AGREE 6
Interpretation:- Graph shows that 61.81% of respondents would like to try
extension, 27.27% of respondents are uncertain about trial and 10.90% respondents
think not to go for trial.
37
2
30
55
7 6
0
10
20
30
40
50
60
strongly disagre
fairly disagree
disagree neutral agree fairly agree strongly agree
responses
responses
5) To know that whether respondents will buy a extension if they happened to see
that extension in a store.
OPTION
STRONGLY DISAGREE
FAIR DISAGREE
DISAGREE
NEUTRAL
AGREE
FAIR AGREE
STRONGLY AGREE
Interpretation:- It shows that 45.45% of respondents will buy extension if they
see it in store,39.09 respondents are uncertain that whether they will buy it or not
and 15.45% will not buy the extension.
27
05
101520253035404550
strongly disagre
fairly disagree
disagree
5) To know that whether respondents will buy a extension if they happened to see
RESPONSE
2
7
8
43
36
9
5
It shows that 45.45% of respondents will buy extension if they
see it in store,39.09 respondents are uncertain that whether they will buy it or not
and 15.45% will not buy the extension.
8
43
36
95
disagree neutral agree fairly agree strogly agree
responses
Page | 32
5) To know that whether respondents will buy a extension if they happened to see
It shows that 45.45% of respondents will buy extension if they
see it in store,39.09 respondents are uncertain that whether they will buy it or not
strogly
responses
Page | 33
6) To know that respondent will look for an extension in a store to purchase it.
OPTION RESPONSE
STONGLY DISAGREE 8
FAIR DISAGREE 11
DISAGREE 6
NEUTRAL 35
AGREE 38
FAIR AGREE 9
STRONGLY AGREE 3
Interpretation:-Graph shows that 45.45% of respondents will look for extension
in a store to purchase it, 31.81% are uncertain and 22.72% of respondents will not
look for extension.
811
6
3538
9
3
0
5
10
15
20
25
30
35
40
strongly disagree
fairly disagree
disagree neutral agree fairly agree strongly agree
response
responses
Page | 34
7) To know the future purchase intention of respondents for extension.
OPTION RESPONSE
STRONGLY DISAGREE 6
FAIR DISAGREE 5
DISAGREE 9
NEUTRAL 32
AGREE 40
FAIR AGREE 11
STRONGLY AGREE 7
Interpretation:- It shows that52.72% of respondents will purchase extension in
future, 29.09% of respondents are uncertain and 18.18% of respondents will not
buy extension in future.
6 59
32
40
117
05
1015202530354045
strongly disagree
fairly disagree
disagree neutral agree fairly agree strongly agree
response
response
8) To know whether or not it make a sense to buy a particular extension from a
brand instead of any other brand, even if they are same.
OPTION
STRONGLY DIAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
Interpretation:-It shows that 49.09% respondents will buy the particular extension
from brand instead of any other brand even if they are same, 31.81% of
respondents are uncertain and 19.09 will buy extension from other brand if choices
are available.
5
16
05
101520253035404550
strongly disagree disagree
8) To know whether or not it make a sense to buy a particular extension from a
brand instead of any other brand, even if they are same.
RESPONSE
5
16
35
43
11
shows that 49.09% respondents will buy the particular extension
from brand instead of any other brand even if they are same, 31.81% of
respondents are uncertain and 19.09 will buy extension from other brand if choices
35
43
11
disagree neutral agree strongly agree
response
Page | 35
8) To know whether or not it make a sense to buy a particular extension from a
shows that 49.09% respondents will buy the particular extension
from brand instead of any other brand even if they are same, 31.81% of
respondents are uncertain and 19.09 will buy extension from other brand if choices
strongly agree
response
9) To know whether or not respondents would like to buy particular extension from
a brand, even if some other brands have similar features.
OPTION
STRONGLY DISAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
Interpretation:-It shows that 19.09
extension, 40.90 % are uncertain and 40 % of respondents will not buy if features
are similar.
6
38
05
101520253035404550
strongly disagree disagree
not respondents would like to buy particular extension from
a brand, even if some other brands have similar features.
RESPONSE
6
38
45
13
8
It shows that 19.09 % of respondents will buy particular
extension, 40.90 % are uncertain and 40 % of respondents will not buy if features
45
138
disagree neutral agree strongly agree
responses
Page | 36
not respondents would like to buy particular extension from
respondents will buy particular
extension, 40.90 % are uncertain and 40 % of respondents will not buy if features
strongly agree
responses
10) To know whether or not respondents will buy a particular extension even if
some same product is as good as that particular e
OPTION
STRONGLY DISAGREE
DISAGEE
NEUTRAL
AGREE
STRONGLY AGREE
Interpretation:-It shows that 43.63 % of respondents would buy that particular
extension even if some other product is as good as that particular
25.45% of respondents are uncertain while 30.90% of respondents would go for
some other product.
9
25
0
5
10
15
20
25
30
35
40
strongly disagree disagree
To know whether or not respondents will buy a particular extension even if
some same product is as good as that particular extension.
RESPONSE
9
25
28
36
12
It shows that 43.63 % of respondents would buy that particular
extension even if some other product is as good as that particular
25.45% of respondents are uncertain while 30.90% of respondents would go for
28
36
12
disagree neutral agree strongly agree
responses
Page | 37
To know whether or not respondents will buy a particular extension even if
It shows that 43.63 % of respondents would buy that particular
extension even if some other product is as good as that particular extension,
25.45% of respondents are uncertain while 30.90% of respondents would go for
strongly agree
responses
11) To know whether or not respondents would go
particular brand for if another s
brand in anyway.
OPTION
STRONGLY DISAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
Interpretation:-Graph shows that 32.72% of respondents will buy the extension
from a particular brand even if some another product is
different from that particular brand, 35.45% are uncertain and 31.81% of
respondents will buy another product if it is not different from that particular
brand.
7
28
0
5
10
15
20
25
30
35
40
45
strongly disagree disagree
To know whether or not respondents would go for a extension from a
another same product is not different from that
RESPONSE
7
28
39
25
11
Graph shows that 32.72% of respondents will buy the extension
from a particular brand even if some another product is available which is not
different from that particular brand, 35.45% are uncertain and 31.81% of
respondents will buy another product if it is not different from that particular
39
25
11
neutral agree strongly agree
responses
Page | 38
extension from a
ame product is not different from that particular
Graph shows that 32.72% of respondents will buy the extension
available which is not
different from that particular brand, 35.45% are uncertain and 31.81% of
respondents will buy another product if it is not different from that particular
responses
12) To know that about the risk in buying a extension.
OPTION
STRONGLY DISAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
Interpretation:- Graph shows that 24.54% respondents thinks that there is risk in
buying a extension,33.63% are uncertain and 41.81 % of respondents thinks that
there is no risk in buying an extension.
19
27
0
5
10
15
20
25
30
35
40
strongly disagree disagree
t about the risk in buying a extension.
RESPONSE
19
27
37
18
9
Graph shows that 24.54% respondents thinks that there is risk in
buying a extension,33.63% are uncertain and 41.81 % of respondents thinks that
risk in buying an extension.
37
18
9
disagree neutral agree strongly agree
responses
Page | 39
Graph shows that 24.54% respondents thinks that there is risk in
buying a extension,33.63% are uncertain and 41.81 % of respondents thinks that
strongly agree
responses
13) To know that respondents buy a extension because parent brand has good
image.
OPTION
STRONGLY DISAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
Interpretation:- It shows that 50.90
parent brand has good image,31.81 % are uncertain and 17.27 % of respondents
does not agree.
811
0
5
10
15
20
25
30
35
40
45
strongly disagree disagree
13) To know that respondents buy a extension because parent brand has good
RESPONSE
8
11
35
42
14
It shows that 50.90% of respondents buy a extension because
parent brand has good image,31.81 % are uncertain and 17.27 % of respondents
35
42
14
disagree neutral agree strongly agree
responses
Page | 40
13) To know that respondents buy a extension because parent brand has good
respondents buy a extension because
parent brand has good image,31.81 % are uncertain and 17.27 % of respondents
strongly agree
responses
14) To know that a particular extensi
extensions.
OPTION
STRONGLY DISAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
Interpretation:- It shows that 55.45 % of respondents agree that a particular
extension generate eagerness in them to buy extensions, 25.45% are uncertain and
19.09 % does not feel like that.
129
0
10
20
30
40
50
60
strongly disagree disagree
14) To know that a particular extension insists the respondent to buy other
RESPONSE
12
9
28
51
10
It shows that 55.45 % of respondents agree that a particular
extension generate eagerness in them to buy extensions, 25.45% are uncertain and
19.09 % does not feel like that.
28
51
10
disagree neutral agree strongly agree
responses
Page | 41
on insists the respondent to buy other
It shows that 55.45 % of respondents agree that a particular
extension generate eagerness in them to buy extensions, 25.45% are uncertain and
strongly agree
responses
Page | 42
CHAPTER VI: FINDING AND CONCLUSION
1) The finding shows that customers carry a positive image towards extension and
will like to try an extension and purchase it in future.
2) Research also shows that one extension insists eagerness in customers to buy
other extensions.
3) Majority of customers thinks that there is no risk in buying an extension.
4) Parent brand has a direct effect on extension and most of the customers think
that it is good to buy an extension if parent brand has good image.
5) Customer will look out for a particular extension if they visit a store.
6) Parent Brand Image, Extension similarity are some of the factors which leads to
success of an Extension.
7) Consumers think that there is less risk in buying Brand Extensions and
consumers will take the risk to purchase that Extension
8) Brand Extension plays a significant role for companies to formulate there
marketing strategies.
9) Brand Extension is a strategy adopted by most of the companies nowadays to
increase there product portfolio and increase market share.
10) People will stick to the particular extension even if some other Brands have
similar features
11) The Brand Extension reinforces the core product.
Page | 43
CHAPTER VII: BIBLIOGRAPHY
1) Books
1.1) Marketing management by Philip Kotler
1.2) Notes on Marketing Research
2) Journal
2.1) Muhammad Annes-ur-Rehman,(2012),” What makes Brand Extension
successful:An empirical study of direct and indirect effect”,European Journal of
Business and Social Sciences,Vol.1. No.4,pp 76-97.
2.2) Dr Leif E.Hem,(2001), “Factors influencing successful brand extensions”
2.3) DA Pitta, (1995) “Understanding Brand Equity for successful Brand
Extension”,Journal of Consumer Marketing Vol.12 No.4 1995.
2.4) Aaker, D.A. and Keller, k.L. (1990),”Consumer evaluations of brand
extensions,” Journal of Marketing, Vol 54 No. 1.pp.27-41.
2.5) Barone, Michael J. Miniard, Paul W. and Romeo, Jean B. (2000).” The
influence of positive mood on Brand Extension Evaluations”, Journal of Consumer
Research, 26(March),pp.386-400
3) Websites
3.1) http://bear.warrington.ufl.edu/weitz/mar7786/Articles/Volckner%202006.pdf
3.2) http://www.sbaer.uca.edu/research/swma/1995/pdf/18.pdf
Page | 44
CHAPTER VIII: ANNEXURE
QUESTIONNAIRE
Dear Respondents
This is a confidential survey for research purpose only .The research is on Brand extension
which means use of established brand name in new product categories . In this questionnaire
brand extension XYZ is a extension of established brand name ABC. Please give the answer best
to your choice and Knowledge. I shall be grateful to you.
Please tick mark the correct response.
1) Name
2) Gender
a) Male b) Female
3) Age
a) below 25 b) 25-35 c) 35-45 d) above 45
4) Occupation
a) Student b) professional c) self employer
d) housewife e) government staff f) other
Page | 45
5) Monthly Income
a) below 10000 b) 10000-20000 c) 20000-30000 d) above 30000
6) You have positive image towards extension XYZ?
Strongly disagree Strongly agree
7) You like extension XYZ from brand ABC?
Strongly disagree Strongly agree
8) You perceive the extension XYZ closer to parent Brand ABC?
Strongly disagree Strongly agree
9) You like to try extension XYZ from brand ABC?
Strongly fair disagree neutral agree fairly strongly
Disagree disagree agree agree
10) You will buy extension XYZ, if you happened to see it in store?
Strongly fair disagree neutral agree fairly strongly
Disagree disagree agree agree
Page | 46
11) Would you actively seek out for extension XYZ in store to purchase it?
Strongly fair disagree neutral agree fairly strongly
Disagree disagree agree agree
12) Will you make another purchase for extension XYZ from brand ABC in future?
Strongly fair disagree neutral agree fairly strongly
Disagree disagree agree agree
13) Does it make sense to you to buy extension XYZ from brand ABC, instead of any other brand even if
they are same ?
Strongly disagree disagree neutral agree strongly agree
14) Would you like to buy extension XYZ from brand ABC even if some other brands have similar
features?
Strongly disagree disagree neutral agree strongly agree
15) Would you like to buy extension XYZ even if some same product is as good as extension XYZ?
Strongly disagree disagree neutral agree strongly agree
Page | 47
16) Will you invest money in buying extension XYZ from brand ABC if there is some product not
different from ABC?
Strongly disagree disagree neutral agree strongly agree
17) There is risk in buying extension XYZ from brand ABC?
Strongly disagree disagree neutral agree strongly agree
18) You buy extension XYZ because Brand ABC has good image?
Strongly disagree disagree neutral agree strongly agree
19) Extension XYZ insists you to buy other extensions from another Brand?
Strongly disagree disagree neutral agree strongly agree