Over the last decades, an increasing number of companies have begun to recognize that their brands are the most real and marketable assets they have developed and thus are a source of competitive advantage (e.g. Aaker 1990, p. 47; Kapferer 2004, p. 233). Through the establishment of brands and brand images, the positioning and diversification of own products towards competitors’ products is supported and an additional value which goes beyond the mere technical-physical characteristics is created (e.g. Keller 1993, p. 2).
The capitalization of this brand value through a brand extension strategy defined as “the use of established brand names to enter new product categories or classes” (Keller & Aaker 1992, p. 35) has become the preferred alternative for growth and a guiding strategy for product planners (e.g. Tauber 1988). Thereby, a company uses the equity built up in the names of existing brands, for example to improve the likelihood of new product success or to enhance marketing productivity (Rangaswamy & Burke & Oliva 1993, p. 61). The latter has especially gained importance due to a dramatic rise in costs for introducing new products. Especially advertising expenses have exploded due to the information overflow of consumers and the increasing number of products struggling for their attention.
In practice, brand extensions have therefore been the core of strategic growth for a variety of companies. Especially in the last two decades, a strong tendency towards the brand extension strategy has shown compared to the new brand strategy. Whereas in the USA until 1984, the share of extension products in total new product introductions in the fast-moving consumers goods segment was only 40% (Aaker & Keller 1990, p. 27), the share amounted to 90% in 1991 (Rangaswamy & Burke & Oliva 1993).
Some brand-owners likeProcter & Gambleeven launched their new products exclusively under established brand names in a period of time (from 1992-1994) (Zatloukal 2002, p. 3). While there have been several successful examples such as the extension of Boss(clothing) to Bossperfumes orCamel(cigarettes) to outdoor clothing, there have also been significant marketplace failures such asHarley Davidsonwine coolers (Aaker 1990; Keller 1998) orLevistailored suits. According to a study by Ernst & Young and Nielsen (1999), there has been an astounding 84% failure rate among brand extensions in some categories.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- PROBLEM DEFINITION AND OBJECTIVE
- STRUCTURE OF THE PAPER
- BRAND EXTENSIONS: TACKLING THE CHALLENGE OF GROWTH IN INTERNATIONAL MARKETS
- BASIC ISSUED RELATED TO BRANDS
- The Notion of a (Global) Brand
- The Concept of Brand Equity
- Sources of Brand Equity
- Brand Awareness
- Brand Image
- The Advantages of Strong Brands
- Brand Core Values, Competence and Positioning
- Specific Issues of Brand Globalisation
- BRAND EXTENSION AS A STRATEGIC GROWTH OPTION
- Integration into the Context of Brand Management and Growth Strategies
- The Preconditions and Main Drivers of Brand Extensions
- Benefits and Risks of a Brand Extension Strategy
- A CONCEPTUAL MODEL OF EXTENSION SUCCESS
- PRIOR RESEARCH ON BRAND EXTENSION AND ITS LIMITS
- KEYS TO SUCCESSFUL BRAND EXTENSIONS
- INTERNAL SUCCESS FACTORS
- Characteristics of the Parent Brand
- Strength of the Parent Brand
- History of Previous Brand Extensions
- The Number of Previous Brand Extensions
- The Breadth of the Product Portfolio of a Brand
- Portfolio Quality Variance
- The Success of Previous Brand Extensions
- The Positioning of Previous Brand Extensions
- Competence of the Parent Brand
- Symbolic Value of the Parent Brand
- Linkage of the Utility of the Parent Brand and Specific Product Attributes
- Characteristics of the Extension Product
- Naming of the Extension Product
- Communicative Support of the Brand Extension
- Retailer Acceptance
- Relationship Between Parent Brand and Extension Product
- Fit Between Parent Brand and Extension Product
- Kind of Information Transferred from the Parent Brand to the Extension Product
- Relevance of Transferred Information for the Extension Product
- Symbolic Value of Transferred Information
- Linkage of the Utility of the Parent Brand and Specific Product Attributes
- Characteristics of the Company
- Size of the Company
- Marketing Competence
- EXTERNAL SUCCESS FACTORS
- Characteristics of the Extension Market
- Characteristics of the Extension Product Category
- Difficulty of Producing a Product of the Extension Category
- Experience Versus Search Goods
- Quality Variance in the Extension Product Category
- Intensity of Competition
- Characteristics of the Consumers
- Consumers' Knowledge of the Product Category of the Extension
- Consumers' Involvement Towards the Extension
- Attitude Towards Innovation
- Mood of the Consumers
- RELATIONSHIPS BETWEEN THE SUCCESS FACTORS
- FURTHER FINDINGS
- IMPLICATIONS FOR THE PREPARATION OF A BRAND EXTENSION STRATEGY
- BRAND EXTENSIONS IN PRACTICE
- BRAND EXTENSIONS IN THE FASHION INDUSTRY: HUGO BOSS
- AN EXTENSION-BASED BUSINESS MODEL: THE VIRGIN GROUP
- CONCLUSION
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis aims to analyze the success factors of brand extensions in international markets, specifically focusing on the factors contributing to a successful brand extension strategy. It explores the concept of brand equity and its role in brand extension, examines the benefits and risks associated with brand extension, and proposes a conceptual model to guide the process of creating successful extensions.
- Brand equity and its importance for brand extension
- Internal and external success factors influencing brand extension effectiveness
- A conceptual model for understanding and predicting brand extension success
- The strategic implications of brand extensions in international markets
- Examples of successful and unsuccessful brand extensions in practice
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the thesis's focus on brand extensions as a key growth strategy in international markets, highlighting the importance of brand equity and the increasing prevalence of brand extension initiatives. The chapter also outlines the thesis's objectives and structure.
- Brand Extensions: Tackling the Challenge of Growth in International Markets: This chapter delves into the fundamentals of brands and brand equity, exploring concepts such as brand awareness, brand image, and the advantages of strong brands. It discusses the challenges and opportunities associated with brand globalization and establishes brand extension as a strategic growth option. The chapter also examines the benefits and risks of brand extension strategies.
- Keys to Successful Brand Extensions: This chapter explores the crucial success factors for brand extensions, both internal (characteristics of the parent brand, the extension product, and the company) and external (characteristics of the extension market and the consumers). It analyzes the relationships between these factors and presents further findings to guide the development of successful brand extension strategies.
- Implications for the Preparation of a Brand Extension Strategy: This chapter examines the practical implications of the research findings, providing guidance on how to develop and implement a successful brand extension strategy. It synthesizes the key insights and recommendations derived from the previous chapters.
- Brand Extensions in Practice: This chapter showcases real-world examples of brand extensions, examining case studies from different industries, including fashion (Hugo Boss) and business services (the Virgin Group).
Schlüsselwörter (Keywords)
This thesis focuses on key concepts and themes including brand extension, brand equity, international marketing, success factors, strategic growth, product category, parent brand, extension product, market analysis, consumer behavior, and international expansion.
- Citation du texte
- Master of International Business Administration Carolin Wobben (Auteur), 2006, Success Factors of Brand Extension in International Marketing, Munich, GRIN Verlag, https://www.grin.com/document/58639
