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Submitted by:- Keshav Rustagi Roll No- 143/2013

Brand Extention

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Page 1: Brand Extention

Submitted by:-Keshav RustagiRoll No- 143/2013

Page 2: Brand Extention
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*Brand Extensions that is use of established brand names to launch new products represent one of the most frequently used branding strategies.* According to the study conducted by AC Nielsen and

E&Y, Failure rates of brand extensions in FMCG category is around 80%, so overcoming this problem is very important for the managers.* In this study we look how HUL and P&G stands on

several factors and area they need to improve before extending the product to achieve successful brand extension.

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*The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian economy. The Market size of FMCG in India is estimated to grow from US$ 30 billion in 2011 to US$ 74 billion in 2018.

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Key objectives of the study would be as follows:

* To understand the success factors that directly affects the brand extensions. * To evaluate Hindustan Unilever success factors

based on brand extensions and measure its success in terms of brand extensions * To evaluate Procter and Gamble success factors

based on brand extensions and measure its success in terms of brand extensions * To conduct a comparative analysis between

Hindustan Unilever and Procter & Gamble based on brand extension

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*Research Design*Exploratory and Descriptive in nature.

*Primary Data*Will be gathered through use of Questionnaires.

*Secondary Data*Research papers on the similar subject will serve as a source of secondary data.

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*Sampling Technique*Convenience and Judgemental sampling would be

used for selecting the respondents.

*Sample Size *Total sample size is 160. 120 consumers and 40 retailers that include

supermarkets, Wholesale Distributors and local Kirana shops would be surveyed from Delhi/NCR Region

*Research Tools*MS EXCEL, SPSS

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*Drivers of Brand Extension Success by Franziska Volckner & Henrik Sattler in Year 2006 :: Fit between the parent brand and an extension product is the most important driver of brand extension success, followed by marketing support, parent-brand conviction, and retailer acceptance. *Attitude Based versus Choice Behaviour Based Success of Brand Extensions by Alexander Ruhle/ Franziska Volckner/ Hanrik Sattler/ Claudia Hatjee in April 2012 :: Marketing support for the extension product drives choice-behaviour-based brand extension success.*Ratios in proportion: What should be the shape of the package be? By Priya Raghubir & Eric A. Greenleaf in April 2006 :: Extensions into categories more similar to the original brand tend to be more readily accepted.

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*Factors influencing successful brand extensions Aaker, David A. And Kevin Lane Keller in Year 1990 :: Perceived risk about the extension category found to enhance acceptability of extensions for durable goods and services brands.*Brand Equity and extendibility of brand names by Arvind Rangaswamy, Raymond R. Bruke in Year 1993 :: Innovative consumers are more positively disposed towards service brand extensions than FMCG and durable goods brand extensions. * A process tracing study of brand extension evaluation by David M. Boush and Barbara Loken in Year 1991:: In this study the author explores the implications of considering a brand as representing a category consisting of its products.

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  Success Factors Hypothesis

H1 Quality of parent brand If the quality of parent brand is high

H2 History of previous brand extensionsIf the History of previous brand extensions is successful

H3 Parent brand conviction If the Parent brand conviction is high

H4 Parent brand experience If Parent brand experience is high

H5 Marketing Support If the Marketing support is high

H6 Retailer acceptance If the Retailer acceptance is high

H7 Fit between parent brand and extension productIf the Fit between parent brand and extension product is high

H8 Perceived risk If the perceived risk is low

H9 Consumer innovativeness If the consumer innovativeness is high

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Please rate your agreement/disagreement on the following statements (on the scale of 1 to 7) (a)HUL is a likeable brand and I relate to HUL Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree

(b) P&G is a likeable brand and I relate to P&GStrongly Disagree 1 2 3 4 5 6 7 Strongly Agree

Please rate your agreement/disagreement on the following statements (on the scale of 1 to 7) (a)HUL products is well supported in terms of distribution and is available in many supermarkets Strongly Disagree 1 2 3 4 5 6 7 Strongly Agree

(b) P&G products is well supported in terms of distribution and is available in many supermarketsStrongly Disagree 1 2 3 4 5 6 7 Strongly Agree

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Please rate your agreement/disagreement on the following statements (on the scale of 1 to 7)

(a) HUL products is well supported in terms of marketing and advertisingStrongly Disagree 1 2 3 4 5 6 7 Strongly

Agree

(b) P&G products is well supported in terms of marketing and advertisingStrongly Disagree 1 2 3 4 5 6 7 Strongly

Agree

Please rate your experience with HUL & P&G brand by answering following

statements on the scale of 1 to 7 (a) Frequency of using the HUL product Not very often 1 2 3 4 5 6 7 Very often

(b) Frequency of purchasing the HUL Brand Not very often 1 2 3 4 5 6 7 Very often

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(c) Intensions to buy HUL product in future Not very likely 1 2 3 4 5 6 7 Very likely

(d) Frequency of using the P&G product Not very often 1 2 3 4 5 6 7 Very often

(e) Frequency of purchasing the P&G Brand Not very often 1 2 3 4 5 6 7 Very often

(f) Intensions to buy P&G product in futureNot very likely 1 2 3 4 5 6 7 Very likely

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*Aaker, David A. And Kevin Lane Keller(1990), “Consumers Evaluation of Brand extensions,” Journal of Marketing, 27-41 * Franziska Volckner & Hanrik Sattler (2006), “ Drivers of Brand

Extension Success,” Journal of Marketing, 18-34 * Alexander Ruhle and Claudia Hatje (2012), “ Attitude based

versus Choice behaviour based success of Brand Extensions,” Journal of Marketing, 125-140 * Boush, David M and Barbara Loken (1991),” A Process tracing

study of brand extension evaluation,” Journal of Marketing Research, 16-28 * Dacin, Peter A. And Daniel C. Smith (1994),” The Effect of Brand

Portfolio Characterstics on consumer evaluations of brand Extension,” Journal of Marketing Research, 229-242 * Rangaswamy, Arvind Raymond R Bruke. And Terrence A. Oliva

(1993), “Brand Equity and extendibility of Brand Names,” International Journal of Research in Marketing, 61-75