BRAND EXTENSION
Halmstad University
School of Business and Engineering
Master Dissertation in International Marketing
Master Dissertation in Strategic Management and Leadership
The Analysis of Challenges and Opportunities in Brand
Extension
Authors:
Chen Si Jia 891028-4986
Gu Jing 880711-T284
Supervisor:
Gabriel Awuah
Date of Submission:
31 May, 2012
Acknowledgements
We would like to firstly thank our supervisor, Professor Gabriel Awuah, for his constant support and inspiring advices during the whole process of this dissertation.
We would like to give our thanks to our opponent group members: Mazhyrina Yuliya and Negru Adela, for their careful corrections and suggestions.
We would also like to thank other group members during each seminar.
We would like to warmly thank our beloved parents for their unconditional love and solid support and care.
We would like to thank our domestic friends as well as overseas ones, for their understanding and kindly support in spite of time and space.
Finally, we are very grateful for having the opportunity to work on this thesis at
Halmstad University.
Chen Si Jia and Gu Jing
Halmstad University
May 21, 2012
I
Abstract
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
School of Business and Engineering
Master Dissertation in International Marketing
Master Dissertation in Strategic Management and Leadership
The Analysis of Challenges and Opportunities in Brand
Extension
Authors:
Chen Si Jia 891028-4986
Gu Jing 880711-T284
Supervisor:
Gabriel Awuah
Date of Submission:
31 May, 2012
Acknowledgements
We would like to firstly thank our supervisor, Professor Gabriel Awuah, for his constant support and inspiring advices during the whole process of this dissertation.
We would like to give our thanks to our opponent group members: Mazhyrina Yuliya and Negru Adela, for their careful corrections and suggestions.
We would also like to thank other group members during each seminar.
We would like to warmly thank our beloved parents for their unconditional love and solid support and care.
We would like to thank our domestic friends as well as overseas ones, for their understanding and kindly support in spite of time and space.
Finally, we are very grateful for having the opportunity to work on this thesis at
Halmstad University.
Chen Si Jia and Gu Jing
Halmstad University
May 21, 2012
I
Abstract
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