En analyse af brand extension der tager udgangspunkt i eksisterende teori samt udvalgt empiri, med henblik på, at opbygge brugbare værktøjer/modeller, der bi-drager til succesfuld brand extension

Michael Dueholm & Frej Lehmann Nielsen

Student thesis: Master thesis


The use of brand extension as a branding strategy has grown in popularity over the last decades. History shows companies like Virgin, which started as a record shop, expanding into radio stations, airlines and travel agencies. This example suggests that different product features not necessarily has to “fit” the brand. We found the aspect of what makes a brand extension successful particularly interesting to explore. Many new product launches are extensions of existing brands. Those can be seen as a less risky way to satisfy the consumer’s demands and needs, and a less expensive way also. Even though brand extensions are a popular strategy, it’s a complex matter and a process which is very difficult to control. The purpose of this master thesis is to gather and examine existing theory and supplementary case studies and through analysis put together a useful tool or model which can contribute to a successful brand extension. In other words the purpose of this master thesis is to identify which factors have a positive influence on the brand equity through brand extension. We present relevant brand theory. In this context we have discussed the concept of brand equity, brand identity and brand image which are all important factors in order to discuss brand extension. I short we define brand extension as when “a brand is represented in a category that is new to the company”. The main findings in the theory and the case studies has been assembled into a summary section, where the main criteria’s of brand extension success has been discussed and summarized in a brand equity context. Afterwards we conclude on this section, with the most important and relevant crite-ria by arranging these into hypotheses and building our own model, which presents an overview of criteria for successful brand extensions including variables that all have a high level of abstraction. Afterwards the hypotheses were tested, by using a multiple regression on fictional brand extensions, to see which criteria explained the attitude towards brand extension the best. Our approach to the test was to use, two brands with low-involvement products and two brands with high-involvement products, to see if there were any difference in the results. Our findings in the test showed that ”fit”, concept consistency and competencies & resources are the most important variables on the attitude towards brand extension. Furthermore the results showed a difference in low- and high- involvement product brands. The attitude towards brand ex-tension in low-involvement had a higher value, and therefore we concludes, that these had a larger chance of succeeding.

EducationsMSc in Economics and Marketing, (Graduate Programme) Final Thesis
Publication date2010
Number of pages178