Brand Extension Success Factors

Success Factors for Brand Expansion Definition and Purpose In an environment of intense competition, organizations are convinced that new products will be introduced to enhance consumer needs and enhance the company's success. The strategy of launching new products is likely to be successful, but there are still some risks. In fact, 30% to 35% of new products have failed to launch. It is becoming increasingly difficult to introduce new products to the market due to factors such as high advertising expenses and intensified competition.

In this article, we will explain the research which analyzed the factor which becomes a factor which makes brand expansion succeed. Specifically, this white paper analyzes the impact of similarities, brand reputation, recognized risks, and consumer innovation on the success of brand expansion into related or unrelated FMCG categories To do. A series of assumptions were developed and tested by regression analysis. We investigated the impact of brand reputation, recognized risk, recognized similarity and consumer innovation on FMCG 's successful brand expansion. Our research supports two of the four hypotheses of Hem & Scharnatney model. Parent brand reputation and consumer innovation have a strong positive impact on consumer perception of brand expansion in relevant and irrelevant product categories. Hypothesis 1 is partially supported because the third hypothesis, the perceived similarity interaction is positive and important in the relevant FMCG product categories.

Organizations often follow brand expansion strategies. This white paper examines the similarity of categories, the brand's reputation, the perceived risk, and the impact of consumer innovation on brand success in rapidly changing consumer, durable, and service industries . A series of hypotheses targeting 153 consumers were set up and verified. The results of this survey show that expansion of similar categories to the original brand is more acceptable. Likewise, the reputation of the original brand is also an important factor affecting the success of the expansion. These findings are consistent with fast moving consumer goods, durable goods, service brands. However, only recognized risks in the expanded category can increase the acceptability of expanding durable goods and service brands. Innovative consumers tend to be more useful in expanding brands than fast-moving consumer goods and durable goods brands.