Analyzing consumer decision making factors for successful brand extensions (an empirical study with special reference to FMCG products)

Given the high cost of new product failure, brand extension strategies are getting more and more common with companies. New product failures often tempt marketers to leverage their well known and successful brand names to minimize risks of failure. Brand extension strategies also prove to be beneficial because new product introduction costs are substantially reduced. Modern entrepreneurs are increasingly using brand extension strategies in introducing new products to minimize risks inherent in today's dynamic and complex business environment while there can be significant benefits in brand extension strategies, there can also be significant risks, resulting in a severely damaged brand. A lack of understanding of the consumer and the marketplace can lead to catastrophic failures. So, firms need to be very careful and must analyze the consumer market before adopting one because if it clicks it will definitely add value to the brand but if fails the parent brand may also suffer irreparable damage. This research paper seeks to shed insights into how Indian consumers evaluate brand extensions within an FMCG environment. The paper involves an empirical analysis of the consumer decision making factors leading to successful brand extensions in FMCG. It also seeks to provide answers as to which brands are more likely to succeed as brand extensions into new categories within the Indian FMCG environment.