The Analysis of Challenges and Opportunities in Brand Extension
Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
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.
Place, publisher, year, edition, pages
brand equity, brand extension, category brand extension
Economics and Business
IdentifiersURN: urn:nbn:se:hh:diva-18090OAI: oai:DiVA.org:hh-18090DiVA: diva2:534912
UppsokSocial and Behavioural Science, Law