The times of following a ‘one brand – one product’ strategy have long past. Nowadays, firms are increasingly recognizing the true value of their brands and are starting to use these as a source of competitive advantage. By introducing new products under an existing brand name, firms leverage the power of their brands and thus, aim at benefiting from the success of the parent brand. Brands are amongst the most valuable assets owned by a company, which encourages them to engage in brand extensions. The authors mainly distinguish between three brand extension strategy types: line extension, vertical line extension and category extension.             Previous quantitative studies have identified that particularly brand equity and brand identity stand out as significantly influencing brand extension strategies. Therefore, this qualitative case study further explores how these two branding constructs affect firms’ brand extension decisions. While most past studies investigated the potential success of fictitious brands, this study performs qualitative interviews with brand and product managers of eight real case firms operating in the FMCG industry in Germany.             The empirical data indicates that the pressure to innovate rises, as more and more new extension products are being introduced to the market in recent years. Nevertheless, the majority of firms opt for line extension strategies, while only few dare to enter a further distanced market segment. Hence, the condition of a “fit” between the parent brand and extension product is mostly accounted for. The study further suggests that a brand without strong brand equity will not be able to perform brand extensions at any level. However, even if brands do benefit from strong brand equity, firms may adopt divergent strategies, which is mainly dependent on the brand’s identity. The research results show that narrowly defined brands, predominantly distinguishable by concrete product features and physical facets, restrict the firms’ capability to extend a brand beyond its original product line. Contrarily, brands with a more abstract or value based identity provide more opportunities to stretch further from the parent brand. An emotional brand that succeeds in building a relationship to the customer, in representing a distinct personality or telling a story, is able to extend to a new product category. The study concludes that certain brands may be under-exploited, as they do not leverage their high equity and identity capabilities in terms of extending the brand to a further distanced market segment.             As a result of the findings, two Brand Extension Strategy Matrices are constructed, setting the brand identity abstraction level (product or value based identity) into relation to (1) brand equity and (2) the identity “fit” of an extension product and the parent brand. Each of these two matrices explains the strategic consequences of a given set of brand equity and brand identity.

<p>A common assumption in marketing is the wider variety of product a corporation has, the better for the consumer: more product - more choices. Companies often develop a line extension to broaden consumer range through product attributes including quality, function and design. These developed attributes within the product are not always optimal for the consumer. As a result, companies often become entangled in having a price higher than the cost and benefit of the products. This essay aims to analyze the consumer value of line extension products and how these evaluations relate to extended line product pricing. A quantitative approach has been used, while data has been collected through structured questions with multiple-choice answers. Various theories concerning the products of different levels, consumer attitudes and pricing of line extension products have been assessed for this essay. The data used for survey purposes is from three different surveys in three different grocery stores. The results reveal a connection between the customer evaluation and pricing, although not as strong as initially thought. The price of organic coffee and whole meal pasta, in relation to its respective core, was relatively the same. Also, the customer evaluation of these products was equally related (See Figure 21). Generally a corporation prices products according to specific attributes. Lactose-free milk was an exception by being priced 157% higher than the other line extension products. This variation in price happens without correlation to consumers’ evaluation.</p>

Nowadays enterprises use brand strategy to enhance product¡¦s depth and width, raising the customers¡¦ evaluation on brand. To lower the cost of launching a new product, enterprise usually uses line extension to launch a new product. Most researches about the effect of product line extension on consumer evaluation all focus on physical product. Research focuses on service product is rare. This study focuses on service product, and wants to know the application of vertical extension strategy in service industry. Although extension direction is main strategy when doing product line extension in practical use, extension direction is considered as moderating variable to others, not main issue in previous academic studies. Thus this study treats extension direction as main body of the research, and discusses the changes of consumers¡¦ attitudes towards parent brand and extension brand in different situation. This study chooses two hotels, The LALU and CHINATRUST Hotel which are real and have different brand concepts, as the design scenario, using experiment design to understand consumers¡¦ evaluations at extension service and parent brand when facing different directions of product line extension. Besides, this study uses service continuity to replace ownership effect, and chooses extension direction as main effect, observing the interaction between extension direction and brand concepts, service continuity and branding strategy, trying to understand the factors influencing consumers¡¦ evaluation in product line extension. This study finds consumers¡¦ evaluation of upward extension is significantly higher than downward extension during product line extension. However, no matter upward or downward, consumers¡¦ evaluation on parent brand become lower. The prestige-oriented brand concept enhances this negative effect, but branding strategy of subbrand can ease this effect.

A common assumption in marketing is the wider variety of product a corporation has, the better for the consumer: more product - more choices. Companies often develop a line extension to broaden consumer range through product attributes including quality, function and design. These developed attributes within the product are not always optimal for the consumer. As a result, companies often become entangled in having a price higher than the cost and benefit of the products. This essay aims to analyze the consumer value of line extension products and how these evaluations relate to extended line product pricing. A quantitative approach has been used, while data has been collected through structured questions with multiple-choice answers. Various theories concerning the products of different levels, consumer attitudes and pricing of line extension products have been assessed for this essay. The data used for survey purposes is from three different surveys in three different grocery stores. The results reveal a connection between the customer evaluation and pricing, although not as strong as initially thought. The price of organic coffee and whole meal pasta, in relation to its respective core, was relatively the same. Also, the customer evaluation of these products was equally related (See Figure 21). Generally a corporation prices products according to specific attributes. Lactose-free milk was an exception by being priced 157% higher than the other line extension products. This variation in price happens without correlation to consumers’ evaluation.

Abstract This study explores the cross-functional conflicts in new product launches in the context of food industry, with particular focus to fast moving consumer goods setting. The purpose of this study is to develop an empirically grounded model of cross-functional conflicts in new product launches for the food industry. The theoretical approach taken in this study follows the resource based view of the firm. The theoretical framework was developed to make the conflict enablers, cross-functional conflicts and new product launches explicit for analysis. The empirical part of this study includes a qualitative single case study, which was geographically and culturally focused on Saudi Arabia. The research data was collected primarily through interviews from selected informants of the selected case company and representatives of two strategic partners and two competitors. The data was analyzed to empirically elaborate the theoretical framework. As a result of the data analysis, the cross-functional conflicts were categorized under task and relationship conflicts. The role of marketing resources in cross-functional conflicts was found to be more complex than what had been reported in their earlier research. The results of the data analysis were used to revise the theoretical model of cross-functional conflicts in the new product launches. The research provides several theoretical contributions and managerial implications in cross-functional conflicts in new product launches. / Abstrakti Väitöstutkimuksessa tarkastellaan yrityksen toimintojen välisiä konflikteja uusien tuotteiden lanseerauksen yhteydessä. Empiirisenä kohdetoimialana tarkastellaan elintarviketeollisuutta, erityisesti nopeasti liikkuvien kulutustuotteiden kontekstissa. Tutkimuksen tarkoituksena on kehittää empiirisesti perusteltu malli toimintojen välisistä konflikteista uusien tuotteiden lanseerauksessa elintarviketeollisuudessa. Tutkimuksen teoreettinen lähestymistapa hyödyntää resurssiperustaista teoriaa. Työssä laaditun teoreettisen viitekehyksen avulla voidaan analysoida konfliktien mahdollistajia, toimintojen välisiä konflikteja ja uusien tuotteiden lanseerausta. Tutkimuksen empiirisessä osassa on toteutettu laadullinen tapaustutkimus, joka sijoittuu maantieteellisesti ja kulttuurisesti Saudi Arabiaan. Tutkimusaineisto kerättiin pääasiassa haastattelemalla valitun kohdeyrityksen edustajia sekä kahden strategisen kumppaniyrityksen edustajia sekä kahden kilpailijayrityksen edustajia. Teoreettista viitekehystä täydennettiin ja täsmennettiin empiirisen aineiston analyysin avulla. Tutkimustulokset osoittavat, että toimintojen välisiä konflikteja voidaan kategorisoida tehtävään ja suhteisiin liittyviin konflikteihin. Markkinointiresurssien rooli toimintojen välisissä konflikteissa näyttäytyi monimutkaisempana kuin olemassa oleva kirjallisuus antoi olettaa. Teoreettista mallia muokattiin empiirisen analyysin perusteella. Tutkimus tarjoaa useita teoreettisia kontribuutioita ja liikkeenjohdollisia implikaatioita liittyen toimintojen välisiin konflikteihin uusien tuotteiden lanseerauksessa.

This dissertation studies important issues in supply chain management and marketing interface research: competition, product line design, and channel efficiency, at the presence of vertically differentiated products. Vertical differentiation as a means of price discrimination has been well-studied in both economics and marketing literature. However, less attention has been paid on how vertical differentiation has been operationalized. In this dissertation, we focus our study on two types of vertical differentiation: the one created by a product line which is produced by the same firm, and the one created by products from different firms. We especially are interested in the so-called private label products vs. the national brand products. Specifically, this dissertation explores how vertical differentiation can affect the interactions among the members of a supply chain in several different contexts. In the first piece of work, we use a game theoretic model to explore how the ability of a retailer to introduce a private label product affects its interaction with a manufacturer of a national brand. In the second essay, we are investigating how an original equipment manufacturer (OEM) will be affected by the entry of a competitor when there are strategic suppliers of a critical component. If these suppliers behave strategically, it is not clear that the entry of other players will necessarily be harmful to the incumbent. In the last work, we pay our attention to an emerging change happening in the industry: some retailers begin to sell their private labels through their competitors. We investigate the strategic role of a retailer selling her own private label products through another retailer. In summary, this dissertation illustrates how vertical differentiation play a crucial role in firms' supply chain as well as marketing strategies. Therefore, it is important for firms to recognize these strategic issues related to vertically differentiated products while making operations/marketing decisions. / text

本研究從消費者的觀點出發，比較功能型或象徵型的母品牌，進行產品線向下延伸時，以母品牌直接推出或品牌傘兩種策略下，不同奢華態度消費者的購買意願是否有所差異。 本研究經由前測，選擇兩種產品類別進入正式實驗，並為兩產品類別進行品牌傘策略的產品線延伸，各創造一個副品牌，以及向下延伸的價格。數位相機類別中，以SONY為象徵型品牌，以Nikon為功能型品牌，並以Quanta為副品牌名稱，依7999元推出新款數位相機；手錶類別中，以Swatch為象徵型品牌，以Casio為功能型品牌，並以Axis為副品牌名稱，依899元推出新款手錶。本研究總共模擬8張彩色平面廣告，施測於320位政大學生，進行2 (產品線向下延伸策略：以母品推出、品牌傘策略) x 2 (品牌觀念：功能型、象徵型) x 2 (消費者奢華態度：高、低奢華態度群) 的實驗。 研究結果顯示：一、就品牌策略主效果而言，消費者對於以母品牌直接推出低價新產品的購買意願，高於品牌傘策略。二、在品牌觀念的調節作用下，象徵型品牌推出低價新產品時，以母品牌直接推出低價新產品的消費者購買意願，優於品牌傘策略的程度，大於功能型品牌。三、在高價品牌推出低價新產品時，高奢華態度的消費者，在以母品牌直接推出時的購買意願，優於品牌傘策略的幅度，大於低奢華態度的消費者。 當該品牌為功能品牌時，消費者在兩品牌策略下的購買意願間差距較小，此時企業可較為彈性運用此兩種策略推出低價新產品；而當品牌為象徵型品牌時，消費者對以母品牌推出的低價新產品之購買意願，較品牌傘策略下高出許多，因此企業以母品牌推出低價新產品，應能吸引較多的消費者。 該品牌的目標客群主要為低奢華態度群時，目標客群對兩品牌策略的購買意願間差距較小，企業可彈性使用兩種策略；當目標客群主要為高奢華態度群，兩品牌策略下的購買意願差距大，以母品牌推出低價新產品，能吸引較多的消費者。 / The purpose of this study is to compare the effects of two kinds of product downward line stretch’s branding strategies: original branding strategy and umbrella branding strategy. Based on the moderate effect of brand concept and consumer attitude toward luxury, the influence of these two strategies on the consumer purchase intention will be evaluated. Cameras and watches were selected as products for this study. When dividing brand concept into symbolic and functional concept, Sony and Nikon were selected as the camera brands by this order; Swatch and Casio were also chosen as the watch brands. A 2 (product downward line stretch’s branding strategies: original branding strategy and umbrella branding strategy) x 2 (brand concept: functional brand and symbolic brand) x 2 (consumer’s attitude toward luxury: positive and negative) experimental design collected data from 320 Cheng-chi university students through 8 color printed advertisements. The main effect of brand strategy suggested that the original branding strategy is prior to the umbrella branding strategy on consumer purchase intention. Under the moderate effect of brand concept, it is suggested that the gap between the original branding strategy prior to the umbrella branding strategy on the consumer purchase intention is wider for the symbolic brand than for the functional brand. Under the moderate effect of consumer’s attitude toward luxury, it is suggested that the gap between the original branding strategy prior to the umbrella branding strategy on the consumer purchase intention of consumers with positive attitude toward luxury is wider than consumers with negative attitude toward luxury. To sum up, firms must differentiate brand strategies between brand concepts of brand and attitudes toward luxury of consumers, when deciding which branding strategy to extend to low priced products.