Over the decades, brand extension has been a core marketing strategy for a great number of companies. Brand extension enjoys a good reputation for bringing practical advantages to companies whilst it faces disputation at the same time because of a relatively high percentage of failures. Using modified Aaker’s brand equity model as the theoretical framework, the authors undertake a comparative case study to analyze the opportunities and challenges a company might face while using brand extension strategy, particularly in category brand extension: Yamaha Corporation as a successful example, and Virgin Group as a failure one. The analysis mainly focuses on the four elements in the modified Aaker’s brand equity model: brand awareness, brand loyalty, brand associations and perceived quality. The findings show that a company faces challenges when consumers have a more solid loyalty towards the competitor’s brand and when consumers are confused about brand associations. On the contrary, a company acquires opportunities in brand extension as long as a strong brand loyalty and a related connection between the parent brand and the extended brand exist.

When the corporations in Taiwan technology industry precept that building a brand is truly the way of gaining profit in the long time, there are some of the biggest OEM firms stepped out from their OEM field, and started to create their own brand names. After a while, they extend their brand name into other product lines and product categories. Therefore, how to know customer¡¦s demand and satisfy it or even launch new product leading customer¡¦s demand has become the important issue for Taiwan original technology brand corporations. The existing literature of this researching field most focus on the producer¡¦s point of view and prefer to use many kinds of product to compare the extend evaluation. Therefore this study is arranged to inspect brand extension from customers¡¦ subjective cognition. Also add in innovation factor to probe into its interfere effect. This study selects one big Taiwan original technology brand ASUS to analysis its brand extension strategy. This study consults many references, and use two dimensions related to customers¡¦ subjective cognition: brand association and fit. In addition, add innovation interfere factor to confer how brand association, fit and innovation factor how to effect customers¡¦ purchase intention. This study contains some important findings: ASUS is functional-oriented in customer¡¦s mind, the fit of cell-phone and LCD TV between ASUS brand is both high. However, customers think that high innovation of cell-phone result in higher purchase intension compared to LCD TV. Especially innovation of cell-phone¡¦s appearance is a significant factor of purchasing cell-phone. On the other hand, the main customers of ASUS are young and have medium purchasing power, high-income customers has less low purchase intention instead. Besides, graduated educational degree evaluated ASUS compared with college (and lower) educational degree. This study concludes that other Taiwan original technology brand similar to ASUS should realize they may tend to be functional-oriented. When they carry out brand extension strategy, they should deeply interpret consumers¡¦ demand. The function completion could not satisfy current customers any more. Ever more, the brand are suggested to enforce reputation-oriented brand association to increase customers¡¦ purchase intension.

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Brand contraction and Marketing constitute a new challenge in the 21st century¡¦s business development. The Smile Curve Theory provided by the founder of Acer Group, Mr. Stan Shih Z.R, who once stressed that value added manufacturing being low, the future development in Taiwan should focus on research/development and brand marketing. Due to the advancements in science technology and the keen competition among enterprises, many similar products can be found in the market. In general, branding is the motive that encourages producers to create unique products while stimulating customers to pay higher prices for what they want. Brand is an important asset to the enterprise; it not only brings profits under excellent quality control but also offers a convenient identity and enhances a company¡¦s growth. The well-known strategy of brand extension helps to reduce risks while promoting a new product in the market. However, the cost of promoting a new product into the market is higher than the cost occurred in the strategy of brand extension. For instance, the cost of promoting a new product into the market is about 50-100 million US Dollars in the American market (Brown, 1985). As a result, the advantage of applying the brand extension strategy lies in the promoting of new products and increasing the chances for success. The study aims at understanding the evaluation of brand image perception and brand extension from the viewpoint of consumers, and the study object was the package of aquatic products from Taiwan Water Corporation. The brand image perception and its image after extension constitute the independent variable. Consumers¡¦ high or low evaluation of brand image perception and the related extension were analyzed and examined to determine whether there was any significant correlation after extension. Furthermore, comparison of brand image was made between the new mineral water of Taiwan Water Corporation and others from the leading companies. The high or low brand image was sorted out in sequence and its relation ship with the brand extension evaluation was compared. Questionnaires were sent to 386 interviewees and the statistics were examined, the conclusions were drawn. Results: 1. There¡¦s significant correlation between the original brand and brand image perception after extension; if the similarity of brand extension is high, the correlation of the original brand image perception is higher than for products which have low similarity. 2. Between the original brand image perception and brand extension evaluation, the high brand image perception achieved higher brand extension evaluation than did the low brand image perception. The evaluation of brand extension with high similarity is also higher than that of brand extension with low similarity. 3. There¡¦s no interactive effect in ownership between the brand image perception and brand extension evaluation. The owner of the original brand gives a higher evaluation to brand extension with high similarity, than do non-owners. There¡¦s no significant variation between owner and non-owner to brand extension with low similarity. 4. If the similarity of brand extension is high, consumers often focus on the transferred perception of the functional image of the IT commodity. The value, function and reliability will be appreciated after brand extension. The brand extension with low similarity should emphasize the functional image and the transferred perception of the symbolized image from consumers. The fashionable image, personal style and outstanding reputation should also be formed so that a better evaluation of brand extension with low similarity can be made afterwards. Due to customers continuing to value the original brand image after brand extension of cross-classification, enterprises should treasure the influence of the original brand image and the compatible category on brand extension, as well as the variation resulting from different perceptions.

Brand equity has been highlighted as one of the most valuable assets one company possesses. However, negative information related with brand extension, such as brand extension failures, can lead to negative perceptions, which may be difficult to reverse. Therefore, it is of critical interest to managers and academicians to have better understanding of the effect of brand extension on the parent brand, especially its negative effect. In this research, the focus is to investigate the feedback effect of negative information of brand extension on the parent brand. This dissertation focuses on how negative information of brand extension impacts the parent brand. It attempts to clarify the previously mixed findings on reciprocal effects of brand extension. More importantly, it endeavors to fill the research gap of examining the issue of how negative information of brand extension affects the parent brand and to improve the understanding of the process by which negative information of brand extensions causes parent brand dilution, i.e. decreases the consumers¡¯ favorable attitudes towards the parent brand.Therefore, the focus of this dissertation was to investigate the effects of brand extension¡¯s negative information on consumers¡¯ attitudinal evaluation of parent brand, over different levels of brand extension fit, information negativity, and association set size with parent brand. In general, the significant impact of negative information on parent brand evaluation has been enlightened by this research.

Abstract There have been few studies on brand extensions in a Pakistan context. In this thesis, we study brand extensions in Pakistan from viewpoint of Brand Managers as their analysis coupled with their personal preferences can provide interesting insights for forming a successful brand extension strategy. Since T. Gamble first published an article about brand extensions (1967) there has been a growing interest for the topic. With the passage of time the inbuilt benefits of brand extensions in terms of cost and higher success rates were captured by companies in developing countries like Pakistan. In this thesis, we make theoretical arguments for, and show empirically that growth may not be the ultimate objective for companies in Pakistan. Instead, companies are compelled to follow the bandwagon so as to match competitors. It has been indicated that small firms might be in a better position to take advantage of below-the-line promotions in comparison to larger firms. Cannibalization of sales due to brand extensions was described to be non-existent in Pakistan until a company embarks on e-commerce initiative. Successful brand extensions, as defined by the brand managers are measured in terms of independent sales and market share captured by a brand stretch. Based on how the brand managers in this study perceived brand extensions, it could be a feasible marketing strategy in Pakistan. Purpose The purpose of this thesis is to explore the use of brand extension strategies in the Pakistan context. We will try to achieve this purpose by answering the following questions. 1)      Why do companies in general and specially in Pakistan use brand extension?                                                                   2)      Do the general pros and cons of brand extension hold the same applicability in Pakistan? 3)      How brand managers in Pakistan describe a successful brand extension? Method A qualitative method was incorporated in order to achieve our exploratory purpose of the study. In total, we performed five interviews. Three extensive telephone interviews were carried out with brand managers representing three seasoned companies from the domain of healthcare (Z-Jans), retailing (Chen One) and dairy foods industries (Haleeb) for finding out brand managers viewpoint on brand extensions in Pakistan. These interviews were conducted via telephone and recorded for our thesis purposes. In addition, one of the authors visited Pakistan and conducted two face-to-face interviews with Lakson Group of Industries (media, fast food and consumer goods) and Servis Group which is operating in (Shoes, Pharmacies, Tires & Tube) businesses. Conclusion It is suggested that the concept of brand manager is in the rudimentary stages of development in Pakistan. One reason for this is that domestic companies are carrying out brand extensions under the heading of marketing managers compared with Multinationals (MNEs) whose brand extensions strategies are mostly prepared at their headquarters. It has also been indicated that small companies could benefit the most from brand extension in terms of attaining greater consumer trials, increased market share, and growth by competing in international markets as they can easily use a mixture of Below-the-line and Above-the-line promotions for their extensions. A good distribution channel coupled with a strong brand portfolio can facilitate success for brand extension as the companies can then negotiate with dealers and retailers from a position of strength. Due to the huge population in Pakistan companies might neglect the fact that their brand extensions can fail. Since, the population is very large it might be hard for small and medium sized companies to cover the whole country and to find out in reality if their brand extension was a success on a country wide basis.  It has also been concluded that majority of the consumers are photo-literate with no or very little formal education therefore they find difficult to assess brand extensions and to make educated brand buying decision in light of quality standards. The market as a whole is price sensitive (low prices) so brand extensions with good price and value for customer are more likely to perform well over Pakistan market.

<p>Abstract</p><p>There have been few studies on brand extensions in a Pakistan context. In this thesis, we study brand extensions in Pakistan from viewpoint of Brand Managers as their analysis coupled with their personal preferences can provide interesting insights for forming a successful brand extension strategy. Since T. Gamble first published an article about brand extensions (1967) there has been a growing interest for the topic. With the passage of time the inbuilt benefits of brand extensions in terms of cost and higher success rates were captured by companies in developing countries like Pakistan. In this thesis, we make theoretical arguments for, and show empirically that growth may not be the ultimate objective for companies in Pakistan. Instead, companies are compelled to follow the bandwagon so as to match competitors. It has been indicated that small firms might be in a better position to take advantage of below-the-line promotions in comparison to larger firms. Cannibalization of sales due to brand extensions was described to be non-existent in Pakistan until a company embarks on e-commerce initiative. Successful brand extensions, as defined by the brand managers are measured in terms of independent sales and market share captured by a brand stretch. Based on how the brand managers in this study perceived brand extensions, it could be a feasible marketing strategy in Pakistan.</p><p><strong>Purpose</strong></p><p>The purpose of this thesis is to explore the use of brand extension strategies in the Pakistan context. We will try to achieve this purpose by answering the following questions.</p><p>1)      Why do companies in general and specially in Pakistan use brand extension?                                                                   <strong></strong></p><p>2)      Do the general pros and cons of brand extension hold the same applicability in Pakistan?</p><p>3)      How brand managers in Pakistan describe a successful brand extension?<strong></strong></p><p><strong>Method</strong></p><p>A qualitative method was incorporated in order to achieve our exploratory purpose of the study. In total, we performed five interviews. Three extensive telephone interviews were carried out with brand managers representing three seasoned companies from the domain of healthcare (Z-Jans), retailing (Chen One) and dairy foods industries (Haleeb) for finding out brand managers viewpoint on brand extensions in Pakistan. These interviews were conducted via telephone and recorded for our thesis purposes. In addition, one of the authors visited Pakistan and conducted two face-to-face interviews with Lakson Group of Industries <em>(media, fast food and consumer goods)</em><em> </em>and Servis Group which is operating in <em>(Shoes, Pharmacies, Tires & Tube) </em>businesses<strong>.</strong></p><p><strong>Conclusion</strong></p><p>It is suggested that the concept of brand manager is in the rudimentary stages of development in Pakistan. One reason for this is that domestic companies are carrying out brand extensions under the heading of marketing managers compared with Multinationals (MNEs) whose brand extensions strategies are mostly prepared at their headquarters. It has also been indicated that small companies could benefit the most from brand extension in terms of attaining greater consumer trials, increased market share, and growth by competing in international markets as they can easily use a mixture of Below-the-line and Above-the-line promotions for their extensions. A good distribution channel coupled with a strong brand portfolio can facilitate success for brand extension as the companies can then negotiate with dealers and retailers from a position of strength. Due to the huge population in Pakistan companies might neglect the fact that their brand extensions can fail. Since, the population is very large it might be hard for small and medium sized companies to cover the whole country and to find out in reality if their brand extension was a success on a country wide basis.  It has also been concluded that majority of the consumers are photo-literate with no or very little formal education therefore they find difficult to assess brand extensions and to make educated brand buying decision in light of quality standards. The market as a whole is price sensitive (low prices) so brand extensions with good price and value for customer are more likely to perform well over Pakistan market.</p>

Devido à grande adoção por parte das empresas da estratégia de extensão de marca como base para crescimento, e também à falta de estudos específicos no Brasil sobre as variáveis que podem influenciar o desempenho das extensões de marca realizadas, este estudo se propõe a identificar os fatores críticos para a extensão de marca e suas implicações no sucesso da extensão. Para atingir este objetivo proposto, buscou-se um referencial teórico sobre diferentes temas relacionados à extensão de marca, e conduziu-se uma pesquisa exploratória, qualitativa e com uso do recurso de estudo de caso. A empresa selecionada para o estudo de caso único foi a Castelo Alimentos, onde os dados obtidos nas entrevistas foram analisados a partir de um modelo conceitual proposto sobre os fatores críticos para o sucesso da extensão de marca, formulado com base na pesquisa bibliográfica e agrupado em três tipos: fatores relacionados à empresa, fatores relacionados à marca mãe e fatores relacionados à extensão de marca. Os resultados sugerem que o grau de influência de cada fator varia conforme o tipo de extensão de marca realizada (extensão de linha, extensão de categoria similar, extensão de categoria dissimilar). Ainda, o fator considerado como mais importante para o sucesso da extensão foi o de adequação entre a extensão e a marca mãe; quanto mais similar e consistente a extensão for em relação à marca mãe, maiores chances de sucesso ela terá. Constatou-se também que o valor simbólico da marca e a sequência de realização das extensões são pouco significativos para o sucesso das extensões. Em contrapartida, o suporte para a extensão de marca foi considerado como um fator importante para seu sucesso para todas as extensões de marca analisadas. A partir das conclusões discutidas e levando-se em consideração as limitações do método de pesquisa escolhido, são propostas algumas recomendações às empresas brasileiras que buscam realizar extensões de marca. / Due to the wide adoption by business of the brand extension strategy as the basis for growth, and also to the lack of specific studies in Brazil on the variables that can influence the performance of brand extensions undertaken, this study aims to identify the critical factors for brand extension and its implications for the success of the extension. To achieve this proposed objective, a theoretical basis was sought on different topics related to brand extension, and after, an exploratory and qualitative study was conducted, using the case study method. The company selected for the one case study was Alimentos Castelo, where the data obtained in the interviews was analyzed using a proposed conceptual model on the critical factors for successful brand extension, designed based on the literature and grouped in three types: factors related to the company, factors related to the original brand and factors related to brand extension. The results suggest that the degree of influence of each factor varies depending on the type of brand extension made (line extension, extension to similar category, extension to dissimilar category). Moreover, the factor considered as the most important to the success of the brand extension was the fit between the extension and parent brand - the more similar and consistent the extension is to the parent brand, the greater the chance of success. It was also found that the symbolic value of the brand and the sequence of the extension implementation are not very significant for the success of the extensions. In contrast, support for the brand extension was considered an important factor for the success of all brand extensions analyzed. From the findings discussed and taking into account the limitations of the research method chosen, some recommendations are proposed to Brazilian companies seeking to use brand extensions.

Firms frequently use brand extension strategies to enter new product categories. Another type of entry strategy is co-branding by effectively exploiting the equity of both constituent brands. Co-branding may effectively drive consumer preferences if consumers believe the combination of two brands offers a better solution than either one separately. However, there is also the risk that consumers may get confused with the combination, or have perceptions of strengths regarding one of the brands diluted, leading to the failure of this strategy. While much has been written on brand-category extension, despite its prevalence, the use of co-brands to enter a new category has attracted relatively little attention. In this study, the author models the effects on consumer perceptions and preferences of combining two brand names for a new product. The proposed model provides a mechanism to represent how consumers’ prior attribute beliefs about constituent brands, the extendibility of the brands into the extension category, the compatibility between the constituent brands, and the uncertainty associated with them can jointly determine their preferences for the co-branded product. The contribution that this model enables is a means to study co-branding and new category entry simultaneously, by assessing the drivers of consumer preference for a co-brand in a new product category. An empirical study is designed to test the model, using real brands and hypothetical extensions and co-brands. Theoretical contributions and managerial implications of this study are discussed.

Background Brand managers often use brand extension as a “lower” risk alternative when introducing new products. A lot of research has been conducted about brand extensions but mostly focusing on fast moving consumer goods, therefore ignoring the impact that this strategy carries on experience goods and more precisely, the video game industry. Video games have turned from a niche product to a global billion dollar market in which brand extensions are a common marketing strategy. There are several examples of both successful and failed brand extensions in the video game industry. Purpose The purpose of this thesis is to identify brand extension success factors in the videogame industry  and how important these factors are for the consumers, a model will be created to test the obtained results; further on the authors will look at different segment of gamers and how the importance of the identified factors differ among them. Method In order to analyze the level of importance that video game users give to the brand extension success factors, an online questionnaire was created with Likert Scale questions to measure each factor. Descriptive statistics, linear regression analysis, Kruskal-Wallis and Mann-Whitney U test were utilized to analyze the results of the questionnaire and to identify differences between the responses of different type of video game users. A second identical questionnaire was distributed only to Tomb Raider users in order to create a model which gave each factor a score depending on the results of the questionnaire and weighted their positive or negative influence into the likelihood of success of each of the Tomb Raider games; the purpose of the model is to predict if each game could be considered a success or not and then compare the prediction with the real outcome of each game in the Tomb Raider series. Conclusion The most important factors for the success of a brand extension in the video game industry are the factors game-play, the brand extension quality as perceived by the users and the factor storyline. On a lower level of importance, the gamers classified the parent brand quality by users and the factors audio, graphics, developer and genre. The lowest category of importance includes the quality as perceived by the critics of the parent brand and the brand extension, the parent brand awareness and the factor multiplayer mode. Finally the survey showed that the cultural familiarity, the factors publisher and rating, and the marketing campaign for the brand extension are not important for the gamers. A second survey was conducted exclusively with Tomb Raider users in order to create the model and the results for this second survey were the same as the one targeted to general gamers, which allows the possibility to generalize the results of the model. The findings of this thesis can help members of the video game industry to better allocate resources towards the factors that most influence the brand extension success.