Successful Brand Extensions

Introduction Brand expansion is to successfully use successful brand names to introduce improved products or new products in new markets or niche markets. Brand management is an important element of a product strategy of a particular company, especially product strategies that operate in a highly competitive market. As brands are usually classified as product groups or product lines, brands can not be developed individually. For the product portfolio, the width can be measured by the number of product lines provided by the commercial company.

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.