brand extensions what works and what doesnt

8/11/2019 Brand Extensions What Works and What Doesnt

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Brand Extensions: What Works and What Doesnt

BRAND EXTENSIONS: WHAT WORKS AND WHAT DOESNT

Qaiser Janjua1

Assistant Proessor

Air !ni"ersit# Is$a%a&a'

Ke# (or's: Brands, Brand Extensions, Marketing, Brand Dilution

1Qaiser Janjua is Assistant Professor of Marketing at Air ni!ersit", #sla$a%ad, Pakistan&'el& ()*+1+)*-*. + *--E+$ail: /aiser&janjua0$ail&au&edu&k

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A&stra)t:

'his resear2h aer su$$ari3es the i$ortan2e of ke" ase2ts affe2ting 2onsu$er e!aluations of%rand extension %" s"nthesi3ing re!ious resear2h in this field& 4iterature re!ie5 highlights four$ain areas of i$ortan2e in2luding the nature of the %rand extensions, extensions effe2t onarent %rand, ante2edents of 2onsu$ers e!aluations of the extension, and the 5a" the %randextension should %e 2on!e"ed& 'hese findings are then alied to the extensions of the %rand6aterillar and its h"otheti2al extension of 5ork jeans as a dissi$ilar extension& 'heoreti2ali$li2ations eli2it re$arka%le re!elations and strategi2 i$li2ations for %rand $anagers forsu22essful %rand extension in si$ilar and dissi$ilar 2ategories&

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TAB*E O+ ,ONTENTS

1- INTROD!,TION .

/- *ITERAT!RE RE0IEW .

*&1 B7A8DE9'E8#;86


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1. INTRODUCTION

Brand extension has %een a oular strateg" for entering into ne5 seg$ents %" extending %rands

into si$ilar or ne5 rodu2t 2ategories through le!eraging existing %rand er2etions and i$age&

#n other 5ords, it is a $arketing endea!or that links and transfers existing ositi!e 2onsu$er

er2etions of a arent %rand 5ith the ne5 rodu2t there%" 2aitali3ing on existing e$otional

relationshi and heritage of the arent %rand&'here are se!eral $anagerial erse2ti!es %ehind

%rand extensions ho5e!er, the %asi2 idea is to 2aitali3e on the existing ositi!e %rand

asso2iations 5hi2h signif" 2onsu$er trust and 2o$$it$ent %" introdu2ing ne5 %rands in si$ilar

or dissi$ilar 2ategories in order to a2hie!e di!ersifi2ation and $ost i$ortantl" generate ne5

sour2es of re!enue and in2rease $arket share& Extending a %rand leads to e2ono$ies of s2ale,

redu2ed $arketing 2osts, lesser ti$e for $arket adata%ilit" as 2o$ared to introdu2ing a ne5

%rand& Brand extensions are also a rofita%le strateg" for fran2hise de!elo$ent and li2ensing&

?or de2ades, fir$s ha!e %een e$lo"ing %rand extensions and the trend is on the rise& Aaker

@1)) found that fro$ 1).. to 1)C>, aroxi$atel" 1. ne5 %rands 5ere laun2hed in the

nited tates ea2h "ear and out of 5hi2h > 5ere %rand extensions& i$ilarl", Murh" @1)).

in his stud" found that ) of the 1-, ne5 %rands introdu2ed in the e!er" "ear 5ere

%rand extensions& Aaker @1)) re!ealed that 2o$anies sent around Million er

"ear for laun2hing ne5 %rand extensions& 8e!ertheless, the h"e in %rand extension has led $an"

%rand extensions to fa2e a disastrous failure 5here not onl" the %rand extension entailed a

negati!e er2etion and 2aused signifi2ant $onetar" losses %ut also diluted the o!erall %rand

e/uit" of the arent %rand& Ernst, Foung and 8ielsen @1))) in their stud" 2o!ering se!eral

2ountries sho5ed that %rand extensions in ?M6G 2ategories had a failure rate of a%out C&

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'his sho5s that %rand extension is a dou%le+edged s5ord and so$e industr" anal"sts 2all

extension as a lo5+risk %randing strateg" %ut also ter$ it as a ga$%le&

in2e %rand is an e$otional affiliation %et5een the 2o$an" and its 2usto$ers, as a result the

su22ess of extension is deendent on ho5 2onsu$ers e!aluate it& 'herefore, it is essential to

understand the fa2tors affe2ting 2onsu$er e!aluations of %rand extension& During the ast three

de2ades, 2onsidera%le resear2h has %een 2ondu2ted in exloring and understanding fa2tors

influen2ing %rand extensions 5hi2h ro!ide ke" insights in generali3ing su22ess strategies for

%rand extension&

6onse/uentl", the urose of this arti2le is to su$$ari3e and s"nthesis ke" findings of rior

resear2h in the area of %rand extension %" re!ie5ing i$ortant arti2les and al"ing rele!ant

insights to a dissi$ilar %rand extension in a h"otheti2al s2enario& 'he 2hosen %rand is an

industrial giant i&e&, 6aterillar and the ali2ation re!ol!es around its existing 2onsu$er

extensions as 5ell as the roosed extension of 5ork jeans&

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2. LITERATURE REVIEW

2.1 Brand Extension Characteristics

Aaker and Heller @1)) resented so$e of the $ost useful 2on2ets in the %rand extension

literature& 'heir stud" 5hi2h in!ol!ed h"otheti2al %rands re!ealed a nu$%er of useful 2on2ets

in2luding a 2on2et of Ifit& 'he" found that the %rand extension 5ill 2arr" the arent %rand

ositi!e asso2iations onl" if there 5as a Ifit %et5een the t5o rodu2t 2lasses& 'he" ela%orated

different di$ensions of fit in2luding the 2on2et of 'ransfer, 6o$le$ent and u%stitute& 'he

also found that 5hen 2onsu$ers er2ei!ed that the arent 2o$an" had ne2essar" 2aa%ilit" in

the first rodu2t 2lass to laun2h a %rand extension in a ne5 rodu2t 2lass then 2onsu$ers

e!aluated that extension ositi!el" regardless of the /ualit" of the arent %rand& ?or instan2e,


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5as extended into a tri!ial and eas"+to+$ake rodu2t 2ategor"& Botto$le" and further ela%orated the 2on2et of

fit& 'he" exlain that Ifit is deendent on a !ariet" of %rand se2ifi2 related asso2iations that are

resent in the $inds of the 2onsu$ers and 5hen these asso2iations are re!alent in the extension

rodu2t 2ategor" than a %rand is er2ei!ed ositi!el"& 'herefore, %rand 2an %e extended to %oth

si$ilar as 5ell as to a dissi$ilar 2ategor" 5here the salient %rand asso2iations are $ost rele!ant&

'he" found that 8ike Wingtis 5ere er2ei!ed negati!el" %e2ause irrele!an2" of 8ikes

Iathleti2 i$age in a $ore Ifor$al 2ategor" ho5e!er ?root 4oos 2ereal 5hi2h dei2t i$age of

Is5eet, fla!or and kids 5as e!aluated ositi!el" %" 2onsu$ers 5hen it 5as extended to lollios

and osi2les, a dissi$ilar 2ategor"& #n other 5ords, %rand+se2ifi2 asso2iations 5ere found to %e

ke" ele$ents, 5hi2h do$inated %rand effe2t and rodu2t 2ategor" si$ilarit"& A22ording to the

authors, %rand 2on2ets are the %rands distin2ti!e asso2iations that are an a$alga$ation of

arti2ular rodu2t attri%utes, 2onsu$er %enefits and $arketing 2o$$uni2ation that highlight

these asso2iations into 2on2rete or a%stra2t fashion& 'he" found that %rands 5hi2h 5ere regarded

5ith rese2t to their rodu2t 2lass 2ategor" @fun2tional ase2ts 5ere diffi2ult to extend to

dissi$ilar 2ategories 5here as restige %rand na$es 5hi2h 5ere asso2iated 5ith luxur" and

status @e&g&, 7olex 5ere eas" to extend to si$ilar or dissi$ilar 2ategories @e&g&, %ra2elets

%e2ause the" not onl" hold the fun2tional ase2ts %ut also dei2t restige 5hi2h reside on a $ore

e$otional and suerior le!el and 5ere do$inant than fun2tional asso2iations& Brodie Gl"nn

@1))C reli2ated Broniar2"3k and Al%a @1))> stud" and found si$ilar results that rele!ant

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%rand+se2ifi2 asso2iation hel in2rease fit and the %rand 2ould %e extended to far off 2ategories&

An exa$le in this regards is the Jif %athroo$ 2leaner for 5hi2h the ad sa"s I2leans and shines

5ithout harsh s2rat2hing into glass 2leaners and 2leaning 2loths sin2e the %rand se2ifi2

asso2iations %et5een the t5o 2ategories %e2o$e rele!ant& ?ar/uhar


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stage of %rand extension as a22ording to Haferer @1)). Lthe last and %roadest stage of %rand

extension is 5hen the %rand signifies a 2o$$on sirit, an a$%ition and an allegian2e to shared

!alues& #n other 5ords, its a su%2ulture of 2onsu$tion that %inds 2ategories and 2onsu$ers

together& Aart fro$ rodu2t and %rand issues, 'a"lor and Bearden @** found that the ri2e of

%rand extension had $ore ositi!e effe2t on the /ualit" of dissi$ilar extensions in 2ontrast to

si$ilar extensions& #n addition, the" found that a higher initial ri2e for a %rand extension

had a ositi!e i$a2t on er2ei!ed /ualit" e!aluations for dissi$ilar extensions %ut not si$ilar

extensions& Although the stud" did not 2onsider 2ertain fa2tors su2h as the $arketing

2o$$uni2ation s"ste$ for that arti2ular %rand ho5e!er, the results i$l" that if $anage$ent is

looking for le!eraging its %rand e/uit" in a $ore effe2ti!e 5a" then it should 2onsider dissi$ilar

rodu2t 2ategories and osition the ne5 extension as relati!el" high+ri2ed&

2.2 Parent Brand Characteristics and Di!tion

'he sure$a2" of arent %rand is extre$el" i$ortant in %rand extensions& Heller and Aaker

@1))* found that high /ualit" %rands su2h as 4e!er Brothers 5ere er2ei!ed as trust5orth",

exert and $ore relia%le& 7east @* in a H stud" found that %rands 5ith higher trust tended

to sho5 fa!ora%le 2onsu$er e!aluations for line, si$ilar and dissi$ilar extensions&


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ositi!e e!aluations than %rands of lo5er reutation and therefore %rand extensions are also

e!aluated in ter$s of arent %rand reutation& Heller and Aaker @1))* also generali3e that high

I/ualit" and Itrust5orth" %rands hold strong %rand asso2iations and these asso2iations are easil"

transfera%le to di!erse 2ategories and resist dilution&


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reresent an area 5here the 2o$an" is dee$ed to ha!e a 2onsidera%le exertise and 2onsu$er

2onfiden2e in the arent %rand is $ore likel" to %e 5eakened as a result of a failed si$ilar, rather

than dissi$ilar extension. #n addition, risk of %rand dilution is greater for 2ertain %eliefs for !er"

se2ifi2 and distin2ti!e attri%utes @e&g&, softness than %eliefs related to $ore glo%al and a%stra2t

attri%utes @e&g&, /ualit"& Heller and ood @*=, osit that %rand e!aluations are onl" diluted

5hen the extension is in si$ilar 2ategor" %ut not 5hen extensions are in a dissi$ilar 2ategor"&

'he" osit that o!erallO arent %rands are less !ulnera%le to failed %rand extensions& i$$er and

Bhat @*> also ro!e that attitude to5ard the arent %rand is si$ilar or har$less 5hen

extended to dissi$ilar 2ategories there%" suorting the results of Heller and Aaker @1))* that

failure of %rand extension usuall" does not affe2t arent %rand e!aluations& Aart fro$ 2ategor"

si$ilarit", 2ertain %rand $oderating fa2tors also interla" for dilution& A22ording to 6hang

@**, Iflagshi or Ioriginal rodu2ts are relati!el" i$$une to dilution as the" are shielded on

a22ount of ha!ing 5ell+esta%lished %rand kno5ledge stru2tures& heinin @* sho5s that high

fa$iliarit" of the arent %rand leads to less dilution %" an unfa!ora%le extension than unfa$iliar

arent %rands& ;n the %asis of re!ious literature, it 2an %e reasona%l" 2on2luded that high

/ualit", strong, fa!ora%le and trust5orth" %rands are less rone to dilution ese2iall" 5hen

extensions are $ade into dissi$ilar rodu2t 2ategories keeing in !ie5 2onsu$er fa2tors su2h as

2onsu$er lo"alt" and exerien2e, diagnosti2it" and in2onsisten2"&

2." Cons!#er Characteristics

4iterature resear2h also re!eals the role of 2ertain 2onsu$er 2hara2teristi2s related to %rand

extension& A22ording to Muthukrishnan and Weit3 @1)), su22ess of %rand extension deends on

the 2onsu$er kno5ledge& IExert e$hasis $ore on 2on2rete and fun2tional 2o$$onalities

%et5een the arent %rand and the extension 5hile I8o!i2e 2onsu$ers e!aluate $ore on surfa2e

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features su2h as shae, si3e, 2olor, et2& and er2ei!e greater fit %et5een si$ilar extensions&

Broniar2"3k and Al%a @1))> also de$onstrate that er2etion of fit relies on 2onsu$ers

kno5ledge a%out the arent %rand and in the a%sen2e of su2h kno5ledge the" rel" on aarent

i$age and features of the rodu2t, le!el of a5areness and $ore a%stra2t asso2iations in

e!aluating an extension& Hir$ani et al& @1))) sho5 that o!erall Io5ners of the arent %rand

ha!e fa!ora%le er2etions to5ards line extension than Inon+o5ners& 'he stud" also sho5 that,

I;5ners are $ore rea2tionar" to5ards u5ard and do5n5ard stret2h and rea2t negati!el"

to5ards do5n5ard stret2h of restige %rand su2h as Hel!in Hleins do5n5ard extension&

Ahlu5alia and Gurhan+6anli @* un2o!er the fa2t that extensions negati!e e!aluations

deend on the extent of 2onsu$ers in!ol!e$ent 5ith the exerien2e& When 2onsu$ers are less

$oti!ated or the %u"ing de2ision does not re/uire high in!ol!e$ent then negati!e e!aluations

o22ur onl" 5ith si$ilar extensions as the" 2onsider dissi$ilar extensions to %e Iex2etions and

gi!e the$ a I%enefit of dou%t& #n addition, the" found that 5hen 2onsu$ers engage in a2ti!e

ro2essing of negati!e infor$ation a%out the extension then negati!e e!aluations o22ur

regardless of extension si$ilarit"&

2.$ Brand Extension Co##!nication

4iterature resear2h also ro!ides !alua%le insights in de!eloing effe2ti!e 2o$$uni2ation

strategies for %rand extensions& Aaker and Heller @1))* osit that $ost effe2ti!e 2o$$uni2ation

strateg" for i$ro!ing 2onsu$ers e!aluations a%out a %rand extension is to highlight arti2ular

extension attri%utes for 5hi2h 2onsu$ers are 2on2erned&


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likel" to ho$e su22ess& #n addition, a22ording to Bridges et al& @*, attri%ute illustrating

2o$$uni2ation strateg" is $ore likel" to %ridge the arent+extension ga& 'he" also osit that

IEla%orational 6o$$uni2ation trateg" is effe2ti!e 5hen arent %rand non+attri%ute

asso2iations are extended to a 2ategor" ha!ing no 2on2rete attri%utes in 2o$$on& i$ilarl",

I7elational 6o$$uni2ation trateg" is %est suited 5hen the arent %rand non+attri%ute

asso2iations are extended to a 2ategor" 5ith h"si2al attri%utes in 2o$$on& 4ane @*

de$onstrates that for slightl" in2ongruent extensions, exosures to %oth eriheral and %enefit

sought results in i$ro!e$ent in the 2onsu$er er2etion of fit& #n 2ase of drasti2all"

in2ongruent extensions, reeated ad!ertising strateg" fo2using on %enefits redu2es in2ongruen2"&

?inall", 'a"lor and Bearden @*= ha!e sho5n that large ad!ertise$ent sending 5as e!aluated

ositi!el" for si$ilar extensions %ut not for dissi$ilar extensions as 2onsu$ers %e2a$e sketi2al

a%out the /ualit" of a dissi$ilar extension&

". Brand Extension A%%ication

#n this se2tion, the 2on2ets and insights fro$ the literature re!ie5 on %rand extension are %eing

alied to a real %rand& 'he 2hosen %rand is 6aterillar, one of the leading %rands in earth$o!ing

industrial, 2onstru2tion e/ui$ent as 5ell as in 2onsu$er seg$ents of 5ork %oots& ;!er the

"ears, 6aterillar has %e2o$e one of the $ost su22essful %rands in extending its rodu2ts into

si$ilar and dissi$ilar 2ategories& 'he literature resear2h shall %e alied to 6aterillar extension

into dissi$ilar 2ategories&

".1 Cater%iar and its Brand Extensions

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6aterillar 5as founded in 1C) %" Benja$in


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6aterillars 2ontinuous su22ess in its %usinesses has earned it strong, uni/ue and fa!ora%le

asso2iations in the $inds of the 2onsu$ers 5ord 5ide& #n other 5ords, "ears of %rand %uilding

efforts resulted in de!elo$ent of strong %rand kno5ledge stru2tures 5hi2h 2learl" translate into

Idura%ilit", relia%ilit" and ruggedness on a 2on2rete le!el as 5ell as I/ualit", 2redi%ilit",

2onsideration, se2urit", trust and ride on a $ore a%stra2t le!el& #n 1))>, the 2o$an" $o!ed

into 2onsu$er+oriented rodu2ts, 5ork 5ear rodu2ts, %" su22essfull" le!eraging these

asso2iations into its ne5 aarel %rand extensions and earned re2ord sales of 1 %illion

5orld5ide& #ts su22ess in 5ork %oots has %een rated as the one of the $ost su22essful %rand

extension in the histor" of %randing 5here a total of - $illion foot5ear 5ere sold in 1))> alone&

#ts re2ent introdu2tion of hea!" %ike kno5n as I6A' 6hoer has attra2ted i$$ense oularit"

and a22ording to industr" anal"sts, 6A' 6hoer is the toughest and $ost rugged %ike e!er

rodu2ed& #n *, 6aterillar further extended its %rands that in2luded %atter"+oerated light

and sound and re$ote+and+radio+2ontrolled !ehi2les, %i2"2les, tri2"2les, and 5agons, sand%ox

to"s, traditional and intera2ti!e %ooks, role+la" to"s, further extension of its aarel line and

introdu2tion of 6at e"e5ear %" introdu2ing industrial safet" e"e5ear&

6aterillar uni/ue su22ess and ro$inen2e in t5o different seg$ents $akes it a $ost rele!ant

%rand to al" resear2hers findings and there%" un!eiling underl"ing heno$ena of its %rands

su22ess& 'herefore, a h"otheti2al extension of 6A' Work Jeans is roosed and e!aluated in

the light of literature resear2h and 6aterillar i$age as 5ell as its existing extensions&

".1.1 Cater%iar Cons!#er Extensions and Pro%osed Wor& 'eans Brand

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#n ter$s of arent %rand dilution, it 2an %e i$lied fro$ Heller and Aaker @1))*, ?o$%run Nan

7eal @1)).,


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%rand i$age is likel" to %e unhar$ed a22ording to the findings of 7o$eo @1))1 and Heller

Aaker @1))*& Al"ing 4oken and John @1))* and it 2an %e inferred that 6aterillar %rand

i$age 2ould ha!e %een seriousl" da$aged if its line extension su2h as ex2a!ators had failed

%e2ause %u"ers in industrial seg$ents 5ho ha!e i$$ense faith in 6aterillars 2ore exertise in

$anufa2turing earth$o!ing e/ui$ent 5ould ha!e %een 2ertainl" taken a%a2k %" this failure and

there 5ould ha!e %een a greater 2han2e of arent %rand dilution& ;n the other hand, Jeans or

other 6aterillars aarel %rand 5hi2h does not dei2t 6aterillars 2ore 2o$eten2" i$age of

industrial $a2hiner" is unlikel" to hurt 6aterillars o!erall i$age as 2onsu$ers 5ould find it

hard to esta%lish a negati!e relationshi %et5een the t5o %rands 5hi2h is in a22ordan2e 5ith the

findings of 4oken and John @1))*& ?urther, in light of Heller ood @*=, i$$er and Bhat

@*>, 6hang @** and heinin @* findings, it 2an %e reasona%l" assu$ed that the strong

%rand i$age of 6aterillar %rand shall re$ain unhar$ed if the existing and roosed %rand

extension of 5ork jeans fails& 6onse/uentl", it 2an %e i$lied that 6aterillar "ears of %rand

%uilding a2ti!ities ha!e led its 2usto$ers de!elo 5ell+learned %rand kno5ledge stru2tures that

2an 5ithstand negati!e i$a2t of failed %rand extension along 5ith the fa2t that 2onsu$ers 5ill

%e less diagnosti2 due to arent %rand and extension dissi$ilarit" as 5ell as the" shall %e $ore

forgi!ing in 2ase of failure of roosed %rand&

#n ter$s of %rand extension 2hara2teristi2s, Aaker Heller @1)) 2on2et of I6o$li$entarit"

2an %e alied 5here the existing %rand extensions and the roosed 5ork jeans are likel" to

ro!ide an oortunit" to the users of 6aterillar $a2hiner" and e/ui$ent, e$lo"ees as 5ell

as its 2onsu$ers to 5ear jeans together 5ith the arent %rand as 5ell as 5ith other extensions&

?or instan2e, the 2onsu$ers 5ould %e a%le to 2o$li$ent 6aterillar %oots, aarel, e"e5ear and

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roosed jeans together there%" enjo"ing an Ia%solute %rand+self i$age& 'he 2on2et of

I'ransfera%ilit" is ali2a%le to 6aterillar 5hi2h has a strong i$age of engineering 2aa%ilit",

dura%ilit", te2hnolog" and exertise to introdu2e a /ualit" and relia%le 2onsu$er rodu2ts su2h

as other extensions and 5ork jeans& Additionall", in a22ordan2e 5ith Broniar2"3k and Al%a

@1))> and Brodie and Gl"nn @1))C studies, 6aterillars salient %rand asso2iations su2h as

Idura%ilit" and ruggedness 5ere su22essfull" transferred to its existing extensions and therefore

2an %e transferred to 5ork jeans rodu2t 2ategor" that shares si$ilar asso2iations& #t 2an %e

i$lied %" stud"ing Park et& al @1))1 and ?ar/uhar


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6aterillar E"e5ear 5hi2h re2ei!ed ositi!e e!aluations and u%li2 a22lai$& 'his is also in

2onjun2tion 5ith


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that 6aterillar designed a uni/ue "ello5 2olor 6A' logo, a tra2tor tra2k rese$%ling lo5er sole

and Idigger shaed uer sole for its 5ork %oots that resulted in ositi!e resonse fro$

2onsu$ers& i$ilar inferen2e 2an %e redi2ted for the roosed 5ork jeans&


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strateg" for its 5ork %oots and other aarel 5as then fo2used on highlighting Ilifest"le i$age

for its 2onsu$er %rands rather than 2on2rete asso2iations and %enefits 5hi2h led to a

2orresonding 2hange in its ad!ertising strateg" 5here one of ads said L6at shoes talk it like the"

5alk it& 6onse/uentl", for the roosed 5ork jeans %rand, Irelational 2o$$uni2ation strateg"

5ould 5ork during the introdu2tor" hase and later on the ad!ertise$ent 2ould highlight the

lifest"le or attitudinal ele$ents& Although there is no infor$ation a%out 6aterillar ad!ertising

%udget and its strateg" for its 2onsu$er %rands ho5e!er a22ording to 'a"lor and Bearden @*=

stud", the jean ad!ertise$ent fre/uen2" 5ould %e 2ontrolled in order to reser!e the o!erall

i$age of 6aterillar&

6aterillar 2onsu$er %usiness strateg" and erfor$an2e$at2hes 5ith the literature resear2h to

/uite an extent and its su22ess not onl" !alidates the re!ious studies %ut also ro!ides ke"

guidelines for a su22essful %rand extension& 'here are so$e findings in the literature resear2h

5hi2h see$ to %e at loggerheads 5ith 6aterillars extension strateg"& ?or instan2e, a22ording to

Aaker and Heller @1)), 5hen a high /ualit" arent %rand introdu2ed rodu2ts that see$ed to %e

eas" to $ake then 2onsu$ers negati!el" e!aluated the %rand extension& in2e 5ork %oots,

aarel, e"e5ear, %a%" 5ear is relati!el" eas" rodu2ts to $ake for a 2o$an" like 6aterillar,

the i$age of the 2o$an" should ha!e %een diluted& #n addition, 6aterillar entr" into %a%" 5ear

is an extension %e"ond its %oundaries as Idura%ilit" and ruggedness does not $at2h 5ith the

desired attri%utes of 2hildren 5ear 2ategor" 5hi2h is usuall" do$inated %" the attri%ute Isoftness

and 2usto$er goal of I2o$fort& Aaker and Heller @1)) stud" also sho5ed that 2onsu$ers 2an

%e literal in e!aluating a %rand extension as su%je2ts in their stud" exe2ted


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negati!el" e!aluated and a22ording to Heller @*=, 5ith the assage of ti$e these 2onfusing

extensions su2h as 6aterillars u2o$ing traditional and intera2ti!e %ooks $ight %lur o!erall

i$age of 6aterillar 2onsu$er %rands& i$ilarl" the ri2ing strateg" of 6aterillars 2onsu$er

%rands see$s to %e in2onsistent& 6aterillar 5ork %oots, e"e5ear and to"s ha!e %een ri2ed

higher relati!e to the rese2ti!e 2o$etitors in ea2h arti2ular 2ategor" %ut in 2ase of %a%" 5ear

its ri2e has %een lo5er than the re!ailing ri2es 5hi2h is also against the resear2h findings and

it 2an %e exe2ted that 6at %a%" 5ear %rand 5ill %e unsu22essful&

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CONCLU(ION

'he theoreti2al ali2ation of literature resear2h in %rand extension re!eals the fa2t that %rand

extensions are likel" to %e $ost su22essful 5hen there is a Ifit %et5een the arent %rand and the

%rand extension& 'his fit is deendent on 2onsu$ers er2etions of the arent %rand exertise in

$aking the extension as 5ell as extension 2onsisten2" 5ith the I2on2et of the arent %rand& #n

general, these %rand 2on2ets 2an %e graduall" transfor$ed fro$ 2on2rete asso2iations to

a%stra2t asso2iations su2h as goal deri!ed or on the %asis of shared !alues and o!erall hori3on of

the arent %rand 2an %e graduall" %roadened and extended to si$ilar and dissi$ilar 2ategories& #t

2an also %e i$lied that I%rand in %rand extension is suerior to 2ategor"+%ased si$ilarit" and fit

is deendent on 5hat resides in the $inds of the 2onsu$ers& #n addition, reutation of a arent

%rand has %een found to %e a 2ru2ial fa2tor in %rand extension su22ess& 'herefore, 2onsistentl"

%uilding strong, uni/ue and fa!ora%le asso2iations of the arent %rand that translate into

2ontinuous fulfilling of I%rand+ro$ise 5ill result in su22essful %rand extensions as 5ell as

resist dilution in 2ase of extension failure& 6onsu$ers %rand kno5ledge and exerien2e, their

er2etion of risk and their attitude to5ards ri2e are i$ortant fa2tors that influen2e their

judg$ents to5ards %rand extensions& ?or instan2e, for high /ualit" %rands high+ri2ed extension

has %een found to %e fa!ora%le& ?inall", de!eloing rele!ant 2o$$uni2ation literature, !isual

2ues and ad!ertising along 5ith effe2ti!e 2usto$er relationshi $anage$ent te2hni/ues are $ore

likel" to generate fa!ora%le resonses to5ards dissi$ilar %rand extensions&

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)UTURE RE(EARC*

'he ali2ation of literature resear2h on 6aterillar 2onsu$er extensions highlights 2ertain

li$itations& Most of the literature on %rand extension is %ased on 2onsu$er rodu2ts or ?M6G

and there is a la2k of resear2h on Business+to+6onsu$er %rand extensions& More se2ifi2all",

i$a2t of Business+to+6onsu$er extensions on existing industrial extensions as 5ell as on

industrial 2onsu$ers should %e exa$ined in order to judge the ali2a%ilit" of existing

generali3ations& Also, it 5ould %e 5orth5hile to find out ros and 2ons of %rand extensions fro$

6onsu$er+to+Business seg$ents& ?or instan2e, 'i$%erland extending into earth$o!ing

e/ui$ent& ?urther, the relationshi %et5een re!ious and existing %rand extension needs to %e

exlored in order to find out if the su22ess or failure of an"one or $ore of si%ling extensions

i$a2ts 2onsu$er e!aluations of ne5 and existing %rand extensions& 'he re!ie5 of literature

resear2h also highlights the fa2t that relati!el" little resear2h has %een 2ondu2ted on aroriate

ri2ing, ro$otion and distri%ution ele$ents of %rand extensions under different s2enarios& #n

other 5ords, %rand extension ositioning re/uires further exloration& Another %ig /uestion that

e$erges fro$ literature resear2h is that are these findings generali3a%le a2ross all rodu2t

2ategories as 5ell as a2ross all 2onsu$er seg$ents& Another i$ortant short2o$ing of %rand

extension literature is its la2k of exloration a%out %rand extensions and different 2ultures& #n

other 5ords, $an" %rands ha!e gone glo%al and ha!e adoted a strateg" of Iglo2ali3ation i&e&,

adding a fla!or of lo2al 2ultures in their %rands as 5ell as in their 2o$$uni2ations and therefore

%rand extensions $ight also re/uire Ituning and 2hanges in se2ifi2 ele$ents o5ing to !ar"ing

e!aluations of %rand extensions %" 2onsu$ers %elonging to different 2ultures& ?uture resear2h

5hi2h 2o$rehensi!el" exlores the a%o!e+$entioned areas and a$alga$ates re!ious literature

resear2h is likel" to ro!ide in!alua%le guidelines in the field of %rand extension&

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25/27


Re+erences

Aaker, D&A& @1)), LBrand Extensions: 'he Good, the %ad and the gl", Sloan ManagementReview, =1 @u$$er, >.+-&

Aaker, D&A and Heller, H&4 @1)), L6onsu$er E!aluations of Brand Extensions, Journal ofMarketing, > @1, *.+>1&

Ahlu5alia, 7ohini and Grhan+6anli, e"ne @*, L'he Effe2ts of Extensions on the ?a$il"Brand 8a$e: An A22essi%ilit"+Diagnosti2it" Perse2ti!e, Journal of Consumer Research, *.@=, =.1+=C1&

Botto$le", Paul A& and , L'he #$ortan2e of the Brand in BrandExtension,Journal of Marketing Research, =1@*, *1>+**C&

6hang, Joseh W& @**, SWill a fa$il" %rand i$age %e diluted %" an unfa!ora%le %randextensionR A %rand trial+%ased aroa2hS,Advances in Consumer Research, *) @1, *))+=>&

Ernst Foung and 8ielsen @1))): 8e5 Produ2t #ntrodu2tions: u22essful #nno!ationK?ailure: A?ragile Boundar"&

?ar/uhar, Peter =&

?o$%run, 6& Nan 7iel, 6& @1))., L'he 7eutational 4ands2ae, Corporate ReputationReview, 1 @*, +1=&

Gl"nn, & M& Brodie, J& 7& @1))C, L'he #$ortan2e of Brand+e2ifi2 Asso2iations in BrandExtension: ?urther E$iri2al 7esults, Journal of Product and Brand Management& .@-, )+*&


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Heller, H&4& @*=& trategi2 Brand Manage$ent: Building Measuring and Managing BrandE/uit"& er addle 7i!er: Prenti2e 1=&

Park, 6& W&, Mil%erg, 4a5son, 7& @1))1, LE!aluation of Brand Extensions: 'he 7ole of Produ2t

?eature i$ilarit" and Brand 6on2et 6onsisten2",Journal of Consumer Research, 1C @*, 1C+)=&

7east, J&D& @*, L'he 7ole of Brand 'rust 5ithin 7elated and nrelated Brand ExtensionA2ti!ities: A 6onsu$er Perse2ti!e,Journal of Product and Brand Management, 1>@1, >+1=

7o$eo, Jean B& @1))1, L'he Effe2t of 8egati!e #nfor$ation on the E!aluations of BrandExtensions and the ?a$il" Brand,Advances in Consumer Research, 1C @1, =))+>-&

heinin, Daniel A& @*, S'he Effe2ts of Exerien2e 5ith Brand Extensions on Parent BrandHno5ledgeS,Journal of Business Research, >) @1, >.+&

Taylor, V. A. & William O. Bearden (2002), The Efects o !rice on BrandE"tension E#al$ations% The oderatin' ole o E"tension imilarity*,Journalof the Academy of Marketing Science, +0 (2), +-0.

Taylor, V. A. & William O. Bearden (200+), Ad /endin' on Brand E"tensions%oes imilarity atter*,Journal of Brand Management, (), 1+-.

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3immer, . . and B. ood (200), The reci/rocal efects o e"tension4$ality and 5t on /arent 6rand attit$de*, Journal of Product and BrandManagement, + (), +-1.

brand extensions what works and what doesnt

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