Defining and Analysing Brand Extension

Few of the generally acceptable definitions of the brand extension are as follows: using name of stronger brand of particular product category for entrance in to a new product category (Aaker, 1990). The brand extension is one of the strategies to leverage the strong brand towards a new product category, then it is further two other heading come under it that is “Ad Hoc Extension” and the other is “Creating Range brand” the basic difference is this that ad hoc is unplanned or the we can say the extension took according to the current scenario of market, where as Creating range brand is the preplanned or being come into existence while launching company (Aaker, 1996). Nowadays in this competitive situation the marketers want to increase their organization portfolio with the diminishing cost of promotion and diluting the risk of the damage to the master brand, so the one of the most popular way is to use the strategy of brand extension (Fox et al., 2001). The strategy of brand extension permits the consumer to form expectations about the performance of newly launched product based on the previous knowledge about the existing brand (Keller, 2003). The perceived risk which consumers usually have with respect to the new product will be reduced when the consumer has the knowledge about and familiar with the parent brand (Aaker & Keller, 1990). In broad, studies of similarity between the parent brand and the extension show a directly proportional relation between the product similarity and customer’s assessment of the extension. When the likeness is high, consumers base their assessment of the extension on their approach towards the parent brand (Keller & Aaker, 1997).

Parent Brand:

Parent brand can be defined as the name of the brand that represents the basis of the brand extension (Apostolopoulou, 2002). As when customer come to shop and first encounter the extension he/she is unfamiliar with that extension , however consumer may have already the knowledge of the parent brand , so he/she might evaluate that extension on the basis of the knowledge of parent brand (Bhat & Reddy, 2001). The parent brand which are dominating in nature are those when their product category is being recalled their name come first in the mind (Herr, Far-quhar, and Fazio 1996) for example like when some asks about detergent, what comes firstly mind that can be Surf excel or Ariel.

Brand Image:

The current perception about the brand is called brand image, although the brand image is tactical in nature unlike brand identity as it is strategic in nature (Aaker, 1996). A positive status or an image of a brand is being considered a worthy competitive advantage for the organization, in studies it has been shown that brand image plays very significant role to evaluate the brand extension by the customers (Kwun & haemoon, 2007).

Brand Identity:

Brand identity is been defined by the Aaker (1996) that “it is the unique set of associations which represents that what the brand stand for and imply a promise to customers from the organization members”.

The structure of the brand identity is divided in to two parts that is core identity and extended identity, where as core identity mostly not change and remain steady as the brand moves towards the new market or product it is for a long time where as the extended identity is the element for the brand that completes the brand (Aaker, 1996).

As in the other book of Aaker (2000) argues that the brand is more then a product, according to him extension is important it makes the parent brand stronger and its very important to have the strong extended identity , it will be more clear after viewing this figure.

A Brand Is More Then A Product

Source: Aaker, 2000, p .52

Aaker (2000) says about this picture that extended identity provides the space to move beyond the attributes.

As human have usually identity cards by which they can be identified that who they are what they do and the way to reach them , so same is the case with the brand because as the brand have personality same like it has the brand identity as well so the customer can identify the brand (Jean and Kopfere , 2003).

Brand identity will be bit more clear after giving the response of some queries like .

Vision and objective of brand?

How it is unique?

What need the brand is satisfying?

In which it is consistent?

What it worth’s?

What are its recognition signals?

After having the answers of the above questions the brand can be easily identified (Jean and Kopfere , 2003).

Difference between Brand Identity and Brand Image

As it is for sure and it has been identified in many of the studies that brand identity is from the company side means organizations true self what they want to show to the customers (Aaker ,1996 : Jean and Kopfere 2003).

Brand identity is given directly by the organization but the image is been perceived by the customers where that perception is being generated by the noise or competitor these two things are also called extraneous factors which create meaning of the brand bye different ways which can be more clear by this diagram .

Signal , symbol , name

Brand identity Company Media Customer

Noise/competitors

Brand image

Source : Jean & kopferer 2003

Brand Personality:

For any brand most important thing is to make the brand sustainable for the long run by brand equity and to build a brand equity brand personality is one to create it through its three models which are self expressive model which makes a customer expressive in front of others and second is the relationship model which build a relation of a customer with the brand and the third is the functional benefits model which is also very important for the customers because the first and the foremost thing for the customer is its functional benefits in the brand (Aaker , 1997).

As in the case of person as it has some kind of personality with some unique kind of the dimensions this is the same with the brand personality and there is also a brand personality scale BPS this is also called as big five which is written under in detail.

Sincerity

Under which the different variety is available like down to earth means family oriented , for love class and honest and sincere in nature , it show originality , old fashioned , cheerful mean friendly all of these are under the head of sincerity.

Excitement

In this kind of personality it shows daring, spirited, imaginative, surprising and artistic comes under this kind of personality.

Competence

A personality which shows reliability, intelligence and the successfulness.

Sophistication

This personality shows the upper class and the charm.

Ruggedness

This show outdoorsy means athletic , active and the other is tough .

By all these personality dimensions every customer tries to select the brand whose personality related to him or her or they might select the brand what they want to be or they might want to make relation with it (Aaker , 1997)

Now these are the brand personality dimension by which customers relates him/her with the respective brand personality he/she have or what personality he/she likes will purchase that brand (Hawkins et al, 2001).

Brand personality makes brand more favorable towards the consumers because this gives the meaning to the brand in the mind of the consumers, the concept of the brand personality is new for the marketers and the consumers but its not new for the advertisers because in early fifties they have started using celebrity endorsement in their advertise after that consumer started matching themselves with those stars and started purchasing those products (Plummer, 1984). Brand personality can be defined as the association of the personality of human with the given brand, thus it includes all the demographics as well like, gender, ager, socioeconomic class etc, for example Tapal Tea is for family where as Lipton is for the executives by these kind of example one matches himself/herself with the personality or brand to have it (Aaker, 1996).

One person makes friendship or come to a relationship or become a partner because of the personality he or she like or the he or she want to be like that personality same is the case with the brand personality it becomes the partner of the consumer who purchases it and a relation becomes stronger (Aaker, 1997).

Brand Knowledge:

In common the brand knowledge can be defined as the structure in the mind containing beliefs and attitudes, which are related with the varied degrees of strength (Broniarczyk and Alba, 1994). In some of the researches it has been shown that the knowledge can be influenced through the belief of the new product with the association of the existing belief (Crocker, Fiske, and Taylor, 1984). Brand knowledge play a vital role other then brand specific association and the brand affect to evaluate the extension by the consumer, the study was done on the respondent were brand experts and the general public or new to brand , two brands has been taken Apple and Compaq with their respective extensions (Broniarczyk & Alba, 1994).

Empirical Studies

Thamer , Neale and Bougoure (2009) investigated The effect of Brand extension on parent brand relationship quality by using the sample size of N=216 by taking two parent brands first one is the Apple and the second one is Dove where as for each of them one related and other unrelated extension has been selected like for Apple the related extension is Wrist Watch and unrelated is Apple Shoes where as for the Dove brand the related extension is shaver (non- electric ) and the unrelated brand extension was Fruit juice .variables BRQ has been taken like love , self concept consistency , interdependence , intimacy , brand partner quality and personal commitment. Techniques Chi Square and T – Test have been used to identify the relationship between related and unrelated extension and parent brand relationship quality . The result shows that for both related extension make strengthen relationship quality where as weaken relationship quality with the unrelated extension , where as for love , self concept consistency and interdependence were not supported only in the case of intimacy showed weaker parent brand relationship quality for unrelated extension significantly ,in brand partner quality showed the strengthen relationship quality of parent brand of dove with unrelated extension which was not hypothesized in the direction so it is also not supported , for the personal commitment both related extension of apple and dove the changes were significant where as in the unrelated extension it was not significant so it is supported. It is suggested that the related extension makes the strengthen the parent brand where as BRQ of parent brand plays a vital role for relationship with the extension and parent brand .

Tariq Jalees (2009) investigated that relationship between Brand personification of parent brand and brand extension by selecting the sample size of 245 , company and consumers perception relation has been done on three brand that are lifebuoy, pakola and woodwards and for the parent brand and brand extension relationship of personification the extension has been taken of these three brand like lifebuoy shampoo , pakola milk and woodwords toothpaste respectively , the questionnaire contains 45 personality traits which comes under the dimensions of brand personality those are sincerity, excitement, competence , sophistication , ruggedness , Technique Rank correlation has been used to identify the relationship of brand personification between the consumer and company perception and between the parent brand and brand extension , The results shows that there was a strong relationship between company and consumer perception of the brand personification of lifebuoy , where as the relationship of brand personification between the lifebuoy and its shampoo appears to be strongly negative relationship, a weak inverse relationship found between pakola and its milk , where as a significant relationship found between the consumer and company perception of the brand personification of woodwords and its toothpaste, for the extension and its parent brand there was a strong positive relationship of brand personification was found .it is suggested that brand personification plays a very vital role for the extension as well and company should align there strategy according to the consumers perception and their fit.

Ko de Ruyter and Wetzels (2000) investigated the Role of Corporate Image and Extension similarity in Service brand Extension in the telecommunication market by selecting 299 respondents out of which 67% were male and 33% female with different age groups . Technique MANOVA and ANOVA has been used to identify consumers evaluation of related service brand extension and unrelated extension with evaluation of innovative late mover and innovative pioneer image under the criteria of corporate credibility , expected service quality and purchase intension . The result shows that service brand extension by company with the late mover innovation were more favorable in terms of corporate credibility and in service quality and it has been seen that service brand extension was most favorable in the related market then the unrelated market in terms of all three the same case was in the late mover innovative companies , where the difference between the late mover and pioneer companies the pioneer has the larger advantage for the unrelated market over late mover in term of corporate credibility and expected service quality .It is suggested that for the service industry the followers are more favorable in terms of credibility and the expected service quality .

Eva Martinez and Polo (2007) investigated the Effect of Bran Extension strategies on brand Image: A comparative study of UK and Spanish market by taking sample size of 389 from UK and 388 from Spain in 2002 and 2003 respectively . Variables quality , familiarity ,Fit and attitude have been considered .techniques Chi-Square and t test has been considered to identify the extension strategy effect on brand image through general brand image and brand product image before and after the extension . the result shows that the more familiar with the brand the more better evaluation of the GBI and PBI before extension in both the countries where consumers familiarity with the brand with its attitude towards extension was not supported it also shows that the better the general brand image is before extension is better after the extension. It is suggested that brand image play very vital role for the extension so it can be said that if the brand image is strong there will be low risk in extension.

Cochen Wu and yen (2007) investigated that How the strength of parent brand associations influence the interaction effects brand breadth and product similarity with brand extension evaluation by randomly selecting 384 undergraduates. Variables brand trust, brand affect and brand extension attitude have been considered. Techniques ANOVA has been considered to identify the favorability towards the narrow brand and broad brand with the extension in similar and non similar product category in terms of trust and affect of brand. The results shows that for the similar product category extension with the strong association of trust and affect the narrow brand will be preferred and conversely for the broad brand which is favorable in the no similar product category regardless of trust and affect terms, it has also be shown that trust and affect influences the attitude towards the brand extension. It is suggested that brand trust and brand affect plays very vital role for the narrow brands.

Kuang Jung and Liu (2004) investigates the positive brand extension trial and choice of parent brand by selecting the sample of 600 with 200 in each group which was divided in loyal users , low to medium user and the non users with the brand taken is soap with its vertical extension is whitening soap and horizontal extension is deodorant . Variables repurchase, point of purchase display, promotion deal and advertising is been considered. Technique logistic regression has been considered to identify the acceptance of vertical and horizontal extension with the parent brand extensions. The result shows that for the whitening soap means vertical extension the advertising, point of purchase display and the parent brand experience shows a significance for the trial generation and for the deodorant trial generation all advertising, point of purchase display , promotion showed a significance it means only dependent on parent brand is not enough well for the reciprocal effects of brand extension on parent for the vertical extension is same not change while for the horizontal extension if the consumer is less user of parent brand might change his or her beliefs . It is suggested that all the independent variable plays an important role for the trial creation of horizontal extension where as for the vertical extension parent brand experience is dominates.

David Joon , Kwun and Oh (2007) investigated the consumers evaluation of brand portfolios by selecting the sample product from two of major lodging portfolios names as Marriott and Hilton corporations and there 4 lodging brands are ( Fairfield Inn, Renaissance Hotels and Resorts, Hampton Inn, and Embassy Suites) and having total 211 respondents .variables product quality , service quality , awareness , brand image , familiarity, fit and attitude has been considered . Technique multiple regressions has been considered to identify the brand image , awareness , product quality , service quality, fit, familiarity, and attitude relation with the portfolio brand and the extended brand . the result shows that product quality has the effect on brand extension attitude through the brand image it also shows that product quality , brand image and attitude towards the parent brand effects the attitude towards the extension where as the service quality was not significant well for the familiarity it has no main affect but intervention affect is significant were for the fit both are the significant for both the parent brand and brand extension . it is suggested that brand image , awareness , product quality , fit , familiarity and attitude with the parent brand plays very vital role for the evaluation by the consumer for the brand extension .

Hongwei He and Li (2009) investigated the consumer evaluation of Technology-based vertical brand extension by taking the sample size of 200 respondents through mall intercept method by taking two real leading parent brands in different categories like Lenovo leads in laptops and the second one is Galanz a leader in microwave ovens where two hypothetical brand extension has been created with respect to technology like Lenovo having extension of microwave oven and Galanz with extension of laptops . Variables brand loyalty, brand extension evaluation , fit and two dummy variables with the name of upward extension and downward extension has been considered. Techniques correlation, Confirmatory factory analysis and Regression analysis has been considered to identify how these technological directions effects the evaluation of brand extension and the other variables as well .the result shows that the downward brand extension is evaluated more favorable due to its perceived fit that shows that technological directions effects the fit on extension this is also shows that fit is more favored with the downward extension in the technological direction and when fit is high the brand loyalty has the positive effect and for upward extension the moderating effect of fit on brand loyalty is as general . It is suggested that the effect of brand loyalty on brand extension is not only effected by the fit but also the technological directions plays and important role.

Leif E. Hem, Chernatony & Iversen (2001) investigated that the factors influencing the successful brand extension by taking the sample size of 701 consumers and having 3 real parent brands with the name of maraud snacks from FMCG industry, ford cars from durables and telenor from service sector by giving three hypothetical extensions to each parent brand. Variables over all evaluation, similarity, reputation, perceived risk and innovativeness has been considered .techniques bivariate and multiple regression analysis has been used to identify about those factors which influence the successful brand extension. the result shows that the extension into a category more similar to the parent brand is more favorable and easily accepted , reputation of the existing brand is also and important factor for the success of brand extension these are similar for all sector which has been select those are service , fmcg and durable industry however perceived risk about the extension category was only seen to improve acceptability of extension for durable and service brands where about innovative consumers are more willing to the service brand than the remaining two. It is suggested that each factors influence the brand extension for the success which varies according to the sectors.

N. Thamaraiselvan and Raja (2008) investigated that how do consumers evaluate brand extensions by taking the sample size 845 and having 6 real parent brands 2 from the FMCG and 4 from service industry which are Colgate , Dettol, Life insurance company of India (LIC) , Bharat sanchar Niagm Limited (BSNL), state bank of india (SBI) and industrial credit and investment corporations of india (ICICI) by giving the 3 hypothetical brand extension to each . variables brand reputation , perceived quality , similarity fit perceived risk and brand extension evaluation has been considered . Techniques Pearson’s correlation and multiple regression has been considered to identify the hypothesis of the given variables. the results show that similarity fit is positively evaluated where as perceived quality and brand reputation were partially supported where as the perceived risk is low in fmcg where as for the service it is high . it is suggested that that all the dependent variables those are fit ,Perceived quality , brand reputation and perceived risk plays very important role to enhance each other as well as and enhance the brand extension .

Eva Martínez Salinas and Pérez (2008) investigated modeling the brand extensions’ influence on brand image by using the data from 699 surveys developed under market condition with 6 real parent brand namely colgate, signal, Nike , Puma , Telefonica , Amena with the realistic hypothetical extension of them .variables brand image , consumer innovativeness , extension attitude and perceived fit has been considered .Techniques T-test and structure equation modeling has been considered .the results shows that if there is low fit in the extension there will be negative effect towards the attitude of the brand regardless of attitude towards the extension how ever if the fit in the extension is high it does guarantee the protection of the brand image in cases were extension attitude is not satisfactory where as the initial brand image and the perceived fit between the new or remaining products or the image fit are cable to strengthen the consumer attitude here role of consumer is as moderating factor . it is suggested that consumer personality could be more important than as it is anticipated.

Sobodh Bhat and Reddy (1999) investigated the impact of parent brand attribute association and affect on brand extension evaluation by using the sample size of 233 and taking the 4 real parent brand out of which two are symbolic and two are functional namely ROLEX , Haagen Dazs, Timex,Sealtest respectively with the real but hypothetical extension . Variables parent brand affect , product category fit , brand image fit , parent brand attributes purchase intension has been considered . techniques t-test , factor analysis and Structure equation model has been considered to identify the results accordingly . the results shows that product category does plays a significant role in the brand extension evaluation where as image fit influences cognitive evaluation of and affect towards the brand extension and parent brand influence brand extension which influences brand extension affect which influences the purchase intension of extension .it is suggested that link the attributes and image of a parent brand to get the success in the brand extension in future .

Daniel A. Sheinin (2000) investigated the effects of experience with the brand extension on parent brand knowledge by taking the data from 250 respondents with the taking the brand out of which two were familiar and the remaining two were unfamiliar namely coca cola , pepsi cala , Rc cola and Dr .pepper respectively. Variables extension derived believes, initial brand beliefs, attitudes towards parent brand, brand extension experience, parent brand familiarity parent brand price, parent brand fit with extension category, category familiarity and category frequency of use has been considered. Techniques factor analysis, anova , monova and mancova has been considered to derive the results . The results shows that there was a difference between the unfamiliar brand but there has been no difference in the familiar brand the result also shows that after experience the brand extension the consumer change there beliefs about and attitude towards the unfamiliar parent brand more then the familiar brand parent brand. It is suggested that the brand extension experience plays a very vital role to influence the parent brand knowledge of unfamiliar brand but it is difficult to influence the knowledge of familiar parent .