A study on the factors influencing Consumer preferences towards brand Extensions and their impact on parent Brands image with reference to fast Moving consumer goods FMCGS

Abstract

India is making significant progress in economic development and newlinehas led to a changing pattern of consumption among Indians thanks to rising newlineincome levels In this context managing brands in the marketplace has newlinebecome very difficult and complex Today there is increased competition newlinebetween smaller and larger players with global aspirations and ability to newlinecommunicate globally As pressure from competitors increase marketers need newlineto find ways of achieving growth at lower cost One method of doing it is by newlinelaunching new products reducing risks of new product failure The enormous newlinecost of establishing new brands in national and international markets and the newlinerelatively low success rate of new brands make the proposition of brand newlineextensions very attractive Considering that market for many products are newlinemoving towards saturation and decreased brand loyalty brand extension is newlineassumed to be safe method where the established brand name could attract newlineconsumers without much marketing effort newlineBrand extensions have become prevalent recently and guidelines newlinefor brand extensions are still emerging Several factors have led to the newlinenecessity for brand extensions namely the increased cost of promoting new newlinebrands and leveraging existing equity etc Therefore an understanding of the newlinechanges in consumer preferences and perceptions which have significant newlineimplications for organisations that wishes to capitalise on equity of existing newlinebrands needs emphasis newline newline