A study on the influence of parent brand in brand extension evaluation (Special reference to consumer durables)

The commonly accepted fact in marketing is that acquiring new customers is relatively more complex than retaining the available pool of customers. Strategies are inevitable for organizations which are planning to rope for success and launching new products in the market irrespective of Consumer durables or non-durables. The usage of brand extension to be precise “using established brand names for launching new products” is increasingly popular andinfluence on new product starters (Volcker and Sattler, 2006). The majority gamut's up to 95% of novel product offerings in the marketplace aresome form of brand extension. Brand extensions also control a firm's most precious unknown asset, brand equity (Tauber, 1981). Here the study is intended to check theimpact of Brand extension on parent brands image.

Since the expense incurred on new product development goes through the roof, many companies will not stab to take the risk and in turn will go for brand extension. Line extensions are items launched within similar product category, while brand extensions are initiated in different categories from the present business. (De Pelsmacker et al., 2007). Companies extensivelyimplement brand extension strategies with a belief that these establish and convey strong brand positioning, develop awareness, quality associations and ultimately increase the prospect of trial (Chen and Liu, 2004). Successful extensions supportively influence choice of the parent brand and further extensions (Swaminathan, 2003).

Brand Colgate-Palmolive (India) was selected for this study as parent brand and for extension of Colgate-Palmolive (Colgate dental cream, Palmolive-Moisturizing Body Wash, Palmolive-Axion Dish Washing Paste and Colgate GEL-KAM) was selected as extended brands. A hypothesis was developed and surveyed among 80 consumers. Moreover it has been observed that a further extension similar to the parent brand was more accepted.