Understanding Consumer Perception of Brand Identity: How to Avoid Failure When Extending a Well Established Brand

Abstract

strike off extensions allow companies to leverage the equity they have established into refreshful product and market areas, reducing the costs and risks associated with the fearful undertaking of launching a new shop in todays treacly markets. However, patsy extension is a two-sided blade, and miscommunication between consumers and cross out managers can easily lead to image confusion and, ultimately, failure.

This write up investigates the importance of a clear understanding on consumer recognition of a companys injury identity when evaluating possible brand extension. with the analysis of three different corporate examples of extensions (McDonalds, Harley Davidson, Heinz) we explore the detriments of failed brand image transfers. All three companies discussed tried to extend their brand in a direction that did not fit with their brand identity, therefore failing to understand their perceived brand identity and unsuccess uprighty trying to extend their brand.

Table of Contents

1 Introduction...........1

1.1 Background.........1

1.2 Problem..............1

1.3         Purpose         2

1.4         Method         2

2          suppositional Framework         3

2.1          tick Identity         3

2.2         Brand Loyalty         3

2.3         Brand Image         3

2.4         Brand Awareness         3

2.5         Brand Equity         4

2.6         Valuing Brand Equity         4

2.7         Brand-added Value         5

2.8         Brand Extension         5

3         Empirical Findings         9

3.1         Mc Donalds         9

3.2         Harley Davidson         12

3.



3         Heinz         13

4         Analysis         15

4.1         Mc Donalds         15

4.2         Harley Davidson         16

4.3         Heinz         16

5         Conclusion         17

1         Introduction

1.1         Background

The high degree of global interest in branding is a relatively new phenomenon. During the 1980s, there was a wave of takeovers, acquisitions and mergers by companies trying to join business operations--both similar and unrelated--under one strong brand name. As a resultant price-to-earnings ratios skyrocketed, and brand extension strategy was viewed as the new pathway to industry success and market control (Kapferer, 1997).

According to Kotler, Wong & Saunders (2005), brand extension...

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