EFFECT OF BRAND

EQUITY UMBRELLA
BRANDING
A project by:
Adil Mirza
 ACKNOWLEDGEMENT

I express my sincere thanks to Mr. Vishal Mishra for providing me ample amount of
support and opportunity for the successful completion of research on:

“Effect of Brand Equity in Umbrella Branding”.

I am thankful to my respondents for their responses, colleagues for their support

and suggestions, which have proved to be very valuable for this research , without which
it would have not been possible to successfully complete the research.

2
 LETTER OF TRANSMITTAL

The project has been a great learning experience for young future managers like us, as
we got to be in direct touch with the customer and practically got to apply the marketing
concepts learned in the classrooms. We came to know about their taste and preferences.
The market research, preparing the report and analysis of the data taught us how a
business research happens and also the practicality of the subject: Business research.
Apart from all this, we had an overall development in the form of team spirit, team skills,
initiating skills and communication skills. The adaptation of using modern software for
analysis was totally a new experience.

3
 TABLE OF CONTENTS:
Content page number

1. Background 5
1.1.What is brand equity 5
1.2.Major factors that lead to brand choice 6
1.3.Process of brand equity 7
1.4.Selected major factors that affect brand equity 8
1.5.Umbrella branding 8
2. Executive summary 9
3. Research design
3.1 Type of research designs 10
3.2 Scaling techniques 11
3.3 Questionnaire development and pre-testing 11
3.4 Sampling techniques 16
3.5 Field work 16
4. Data Analysis
4.1 Procedure 16
4.2 Plan 19
5. Factor analysis using SPSS
5.1 KMO and Bartlett’s Test 23
5.2 Communalities 24
5.3 Total Variance explained 25
5.4 Scree Plot 26
5.5 Rotated Component Matrix 26
5.6 Component Score CoefficientMatrix 27
5.7 Component Transformation Matrix 28
6. Limitations 29
7. Conclusion 30
8. References 31

4
BACKGROUND (LITERATURE REVIEW)
What is Brand equity?

Brand equity is one of the most valuable assets that a firm can have, and brand equity
measurement and management continue to be important areas of research in both
academics and industry. Most of the research on brand equity has looked at the issue
from the perspective of either the consumer or the firm. Brand equity research from a
consumer’s perspective usually involves collecting data on consumer mindset measures
of brand equity from the consumer through surveys or experiments, and using the data to
assess the consumer’s perceptions, feelings, and attitudes towards the brand. It may also
involve collecting data on the consumer’s revealed preference behavior, using self-
reported or actual purchase data, and using it to assess the incremental value that the
brand name has on the consumer’s utility and her resulting choice behavior. On the other
hand, brand equity research from a firm’s perspective generally involves the use of
observed market data to assess the brand’s financial value to the firm. The market in
question could be a geographic or physical product market, where performance measures
such as market share or profit can be used, or it could be a financial market, where
performance measures such as the firm’s stock price or other financial variables may be
used to assess the brand’s value. But in this paper we are concentrating on the consumer
aspect.

Factors contributing to the choosing of the brand

The usual core measures relate to:
• Awareness
• Familiarity
• Favorability
• Usage
• Loyalty
• Individual brand/category attributes
These measures can be researched cheaply and effectively using only four sets of
questions:
5
1. Brand/category usage
2. Brand stature
3. Brand intimacy
4. Brand attributes

MAJOR FACTORS THAT LEAD TO A BRAND CHOICE

6
PROCESS OF BRAND EQUITY

THE PYRAMID OF BRAND

EQUITY

7
SELCETED MAJOR FACTORS THAT AFFECT BRAND
EQUITY :
Among all the major factors affecting brand equity the ones selected were based on the
On the basis of priority given to these factors in the major marketing books like the
PHILIP KOTLER etc. They majorly effect a consumer’s choice when a new product is
launched by a renowned company through umbrella branding. The majors factors
selected are:

1. Association with the parent brand: The consumers association with parent brand
motivates the consumer to buy new products of that company if the company is a
consistent performer. If it has been providing quality over the period of time the
consumer will feel proud in associating itself with the brand. This will create brand
equity through the word of mouth. For example UB group was successful in launching
Kingfisher airlines because the consumers of its alcohol feel proud in drinking it.

2. Familiarity of the parent brand – means the proper use of communication strategy by
the company to make the maximum public familiar with its brand and products. If the
people are familiar with the brand they tend to use its new version all the more.

3. Awareness of the parent brand – shows how well the brand has climbed the BRAND
LADDER. Brand awareness is the first step.

4. Longitivity of the parent brand - How long the brand has been in the market serving
the people affects the consumers’ choice of new brands launched by the company.

5. Reliability of the parent brand- affects the consumers on the basis of how comfortable,
secured, trustable the consumer feels using the brand.

UMBRELLA BRANDING:
When a company extends the brand name to a new product line or revamps the product
and again launches a product or diversifies the product portfolio it is known as umbrella
branding.
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EXECUTIVE SUMMARY
The topic of our project is “Effect of Brand Equity in Umbrella Branding”. We basically
wanted to see whether the brand equity of the parent brand helps a new product within
the same umbrella in any way.

We decided to collect primary data through survey by using questionnaires. Our first task
after deciding this was to prepare a questionnaire .To do this ,we first analyzed the
various parameters that contributes to the brand equity of a product .We went through a
lot of options and finally narrowed down to five major parameters-
➢ Association
➢ Familiarity
➢ Awareness
➢ Reliability
➢ Longitivity.

Then we started preparing the questions .To attain our objective ,we decided to mention
some quite well-known instances of umbrella branding where a new product has been
introduced under the umbrella of a famous mother brand .We asked in our questionnaire
what the respondent thinks will be the reason of success of a new product introduced
under the mother brand . The instances cited by us include :
➢ introduction of clothing line by the famous sports gear manufacturers Nike and
Reebok
➢ launch of Kingfisher Airlines by the liquor producer Kingfisher
➢ introduction of soups under the umbrella of Maggie Noodles
and eleven other such instances.

This questionnaire was given to and filled up by 50 respondents which included students
from IBS ,Hyderabad as well as people we met in front of Hyderabad Central and City
Centre.

Then came the job of compiling and tabulating the data .The data was manually fed by us
into the Excel sheets and the total data points were calculated .We used the cross
tabulation method while compiling the data in the Excel sheet.

In the analysis part ,we took the help of SPSS .We did Factor Analysis and found out the
Communalities ,Total Variance ,Scree Plot ,Rotated Component Matrix and Component
Score Efficient Matrix .
9
Next came the preparation of the report where we explained in detail all our findings and
the conclusion that we reached through this research.

RESEARCH DESIGN:
Business research is an important tool for decision making for 100’s of organizations
across the world as it help them take crucial decisions to gain an upper hand over
competitors. Basically research is a systematic enquiry aimed at providing information
that will solve managerial problems. A good design means that good research results can
be obtained with minimum utilization of time, money and effort. Thus research design
has to be developed very carefully as it forms the foundation for the entire research
process that follows.

An ideal research design should consider the following factors:

➢ Identifying the exact research problems to be studied.
➢ The objective of the research
➢ The process of obtaining information
➢ Availability of adequate and skilled manpower
➢ Availability of adequate financial resources for carrying out research.

Business research can be defined as systematic enquiry that gives information to guide
businesses in decision making.

RESEARCH DESIGN:

A. TYPES OF RESEARCH DESIGN:

It is very important to select an appropriate research design before starting the research.
There are several research design approaches which can be classified as:

1. EXPLORATORY STUDIES:
They are carried out to make problems suited to more precise investigation or to
frame a working hypothesis from an operational perspective. They help in
understanding and assessing critical issues of problems. Theycan not be used in
cases where a definite result is desired. It included techniques like secondary
data analysis, experience surveys, focus groups and two stage design.

2. DESCRIPTIVE STUDIES:

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 Unlike exploratory studies, these come under formal research where the
objectives are clearly established. In these, a researcher gathers details about all
aspects of a problem situation. They form the basis for analytical, experimental
and quasi-experimental studies which help in developing hypothesis.

3. CAUSAL STUDIES:
The basic aim of causal studies is to identify the cause and effect relationship
between variables. The basic premise of the causal relationship is that when we
do

A particular thing (cause),it gives rise to another thing(effect).There are three

types of relationship that can arise-
(a) symmetrical
(b) asymmetrical
(c) reciprocal

B. DATA COLLECTION
A. Primary Sources
At times, secondary data might prove to be inadequate or of no use to the
researcher for making further marketing decisions. In such cases, the researcher
has to go in for primary data research employing survey research methods.
Surveys are normally carried out to obtain primary data. Primary data is the
data which is gathered first hand to answer the research question being
investigated.
In our project the survey was conducted using questionnaire and meeting the
respondents in person to get them filled.

B. Secondary Sources
A secondary data study is concerned with the analysis of already existing data
that is related to the research topic in question. In secondary studies, secondary
data is studied in order to analyze the future of a product. It helps in projecting
future trends using some mathematical models. Secondary data is based on
source, category, medium and database.
In our report we have used secondary data classified by medium that includes
reference to hard copy and internet. We also have taken reference from the
concept paper given by ZYMAN INSTITUTE OF BRAND SCIENCE and BEST
GLOBAL BRANDS 2006-a ranking by brand value (inter-brand BUSINESS
WEEK).
Secondary data is used by managers as it is cheaper and takes less time to gather,
thus saving them a lot of money and time that they would have otherwise spend
in gathering primary data. It may provide alternative data methods that can be
used for primary research. Also it generates requisite information for better
creativity.
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C. SCALING TECHNIQUES

Rating

We have asked the respondents to rate various parameters according to their preference
on the scale of ten with 10 representing the ‘most preferred’ and 1 the ‘least preferred’.
The respondents had a choice of giving the same rating to more than one parameter.

D. QUESTIONNAIRE DEVELOPMENT AND PRE-TESTING

A properly designed questionnaire can tap the necessary information from the
respondents. In framing a questionnaire the researcher must ensure that the questions are
designed to draw information that will fulfill research objective. Also the researcher must
make sure of the target population for the same. A questionnaire contains all the close
ended questions. These questions give respondents a finite set of specified responses to
choose from.
Our questionnaire contains structured questions i.e. which have a specified number of
responses. All the questions were multiple choice questions. Choices were kept same for
all the questions and the respondents have to rate the options that best describes their
feelings. The questions wording were kept simple and easy to understand. The questions
cover a wide range of industry.

The Role of Brand Equity in Umbrella Branding:

Questionnaire:
Kindly tick the most appropriate answers for the questions provided and also rank the
various options from a scale of 1 to 10 where 1 stands for the least appropriate option
and 10 stands for the most appropriate

Q1.UB Groups liquor has traveled to a lot of places, it is now ready to carry people
to places. Why would you travel in Kingfisher Airlines?

 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

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Q2.After the break up of the Reliance Empire, the Ambani brothers are ready to
expand individual bases: Mukesh Ambani’s venture into retail sector. Why would
you visit his stores?

 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

Q3. Titan’s Fast track has been protecting people from unpunctuality, now it’s
ready to protect them from Ultra Violet Rays by manufacturing eyewear
accessories. Why would you buy its goggles?

 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

Q4. Enough of licking Maggi ketchup, now they serve your taste buds also with
ready to make soups. Why would you drink them?

 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

Q5. Larsen & Toubro has constructed and developed India’s infrastructural base
for a long time, now it also strengthening it by its cement. Why would you use it?

 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

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Q6.They says you never gift a man/woman their shoes. Levis Strauss & co. has
given the world the unforgettable gift of denims, now it is ready to give the gift of
shoes. Why would you wear/buy them?

 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

Q7.Dressing men for years now have become monotonous for Allen solly, so now
they dress women as well. Why will it be a success?

 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

Q8.Amul serves our taste buds through its milk products like chocolates, butter,
ice cream etc. Why do you buy products under its Umbrella Branded products?

 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

Q9.From airlines to News channel Sahara India gives ‘Sahara’ to a lot people of
India. Reasons according to you for its popularity?

 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

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 Q10.After holding 56% share in the white goods segment, LG is now ready to
accelerate its levers by entering the FMCG segment. Why would you buy its
product?

 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

Q11.After giving you hardware systems that got your company ticking IBM now
gives an entire company system through enterprise services. Reasons for
popularity/

 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

Q12.Pepsi India is now in agricultural products, chips – Lays. Reasons for

popularity?

 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

Q13. “World leader in shoes” – Nike/ Adidas/Reebok are now in the retail sector.
Will they again be world leader?
Yes No
Reasons:
 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.
15
Q14. ITC brand ’Wills’ is famous for its cigarettes, is it as famous for its clothing
wills lifestyle too?
Yes No
Reasons:
 Familiarity
 Awareness
 Reliability
 Longitivity of parent brand.
 Association with parent brand in terms of Price positioning, brand loyalty,
product’s usage, Brand popularity and marketing gimmicks.

Pre-testing
Pre-testing refers to testing the questionnaire on a small sample of respondents selected
on a convenient basis that is not to divergent from the actual respondent. It includes
testing all aspects of questionnaire starting from the question content to question
sequence. Pre- testing enables the researcher to revise the questionnaire by identifying
the flaws and eliminating any ambiguous questions.
We have done pre-testing on 12 respondents and on getting positive response from their
side we extended the sample size to 50.

E. SAMPLING TECHNIQUE
Sampling is done to select a target audience for the purpose of determining the
characteristic of the whole population. There are two basic approaches to sampling
probability and non-probability. In the research we have used non-probability sampling
which involves the selection of units based on factors other than random chance.
Convenience sampling, quota sampling, judgment sampling and snowball sampling are
few examples of non-probability sampling. In our research we have used quota sampling
in which the entire population is segmented into mutually exclusive groups and
categories. Quota sampling finds extensive use in commercial research where the main
objective is to ensure that the sample represents in relative proportion, the people in the
various categories in the population, such as gender, social class etc.

F. FIELD WORK
We have conducted research in vicinity of the Hyderabad city. We have distributed
questionnaire in the places like HYDERABAD CENTRAL and CITY CENTRE to get
the response from the respondents.

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DATA ANALYSIS:
PROCEDURE
We have followed the general procedure of data analysis which included the following
stages:

VALIDATION

EDITING

CODING

DATA ENTRY

DATA CLEANING

TABULATION AND ANALYSIS

VALIDATION
Validation is the preliminary step in data preparation. It refers to the process of
ascertaining whether the interviews conducted complied with specified norms. The
essence of the process lies in detecting any fraud or failure by the interviewer to follow
specified instructions. Validation helps to confirm if the interview was really conducted.
In our research, the respondents included students of IBS and people whom
we met at Hyderabad Central as well as City Center. They were asked to give their
names, age and gender. In this way, we tried to validate our research.

EDITING
Editing is the process of checking for mistakes by the interviewer or respondent in filling
the questionnaire. Editing is a manual process and is usually done twice before the data
is submitted for data entry.

17
 In our case, we checked for any mistakes as soon as the respondents filled the
questionnaires so that in case of any problems, we could clarify and correct them. This is
especially true for the respondents whom we interviewed outside the IBS campus
because it would be difficult for us to contact them in case of problems.

CODING
The process of assigning numbers or other symbols to answers in order to group the
responses into limited categories is known as coding. This type of categorization and
coding sacrifices some detail but is necessary for efficient data analysis. There are certain
rules which are followed by a researcher while categorizing replies obtained from a
questionnaire. These are:

1. Appropriate– Categorization should help validate the hypotheses of the

research study. Categorization provides for better screening of data for
Testing and establishing links among key variables. In our study, we tried to
analyze the relationship of the various variables (like familiarity, availability)
with brand equity. To do this, we took the help of various brands from diverse
industries.

2. Exhaustive – When multiple-choice questions are used, an adequate list of

alternatives should be provided to tap the full range of information from the
respondents. The absence of any response from the set of response options given
will prove detrimental as that specific response will be under-represented in the
analysis.
In case of our project, we went through numerous parameters that might affect
brand equity n finally settled down to five. These were the options in our
questions.

3. Mutually exclusive – Complying with this rule requires that a specific alternative
is placed in one and only one cell of a category set.

4. Single dimension – This means every class in the category set is defined in
terms of one concept. In our case, the parameters that we have considered are in
terms of individual concepts.

There are open-ended and close-ended questions. We had all close-ended questions. It is
somewhat easier to assign codes for responses that are generated by close-ended
questions because the number of answer is fixed in that case. Coding makes it easier for
data to be accessed directly from the questionnaire.

DATA ENTRY
Data entry helps convert information gathered by secondary or primary methods to a
medium that facilitates viewing and manipulation. There are various means available for
data entry like Optical scanning, Barcode reader and Voice recognition.
18
 In case of our project, due to unavailability of such advanced technology, we entered the
data manually.

DATA CLEANING
Data cleaning includes consistency checks and treatment of missing responses.
Compared to the preliminary consistency checks during editing, checking at this stage is
more thorough and expensive, as it uses computers. This is done in two ways – error
checking routines and marginal reports.

TABULATION OF SURVEY RESULTS

Once data is cleansed off all errors and is stored in a database, it should be tabulated to
facilitate further analysis. A researcher can tabulate in two ways:

One way is Frequency Tabulation – It is the most commonly used tabulation technique
which shows the number of respondents who gave each possible answer to each possible
question.

Cross Tabulation – In this, the idea is to look at responses to one question in relation to
responses to other questions. Here, the data is organized into groups, categories, or
classes to facilitate comparisons.

In our case, we used the cross tabulation method as it helps during the later stage of
analysis. In fact, it is a simple yet powerful tool for analysis of gathered data.

PLAN FOR ANALYSIS OF DATA:

THE BIG HURDLE:

The information incited by our questionnaire through the factors that affect brand equity
in umbrella branding isdifficult to quantify. But it was only the close ended rating
method that made our research possible by making these factors able to be analyzed by
analytical and statistical tools. So our plan of action had to incorporate this factor
mostly.

THE STEPS:

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A true research is the one which is unbiased and gives relevant information about its
objective using the best statistical and analytical tools.

1. The data collected through the questionnaires (using face to face survey method
of research) provide information about ratings of each parameter from 1-10 that
effect brand equity in umbrella branding.

2. Our sample respondents covered a number of 50. We conducted the survey in

places where we could expect to find educated people who are aware of all the
brands covered in our questionnaire.

3. Our plan’s next step was to feed the raw data collected in the excel sheet. Here
the best part to learn was: that in spite of having advanced tools to analyze data
human still has to laboriously enter data to use these tools.

4. Then we planned to use Statistical Package for Social Sciences to analyze the
data feeded in the excel sheet. Then we run the factor analysis on SPSS
software.

5. After running factor analysis usingthe SPSS program we obtained the results ,
that were incorporated with the graphs made using the excel sheet to further
analyze and represent information obtained by us.

The data collected from the questionnaire is clubbed in the form of graphs as under:

The under-mentioned table gives the cumulative rating for each variable.

FAMILIARI AWARENE RELIABILI LONGITIVI ASSOSIATI

TY SS TY TY ON
4511 4579 4711 4503 4464

20
 N
4464

IO
T
IA

Y
4503
S

IT
O

V
S

Y
IT
S

4711 Series1
IT
A

IA G

L
N

I
O

S
4579
L

S
E
L

N
E

Y
E
R

4511
IT
R
A

R
W

IA
A

IL
M
A
F

From the above we can infer that reliability followed by awareness and familiarities have
the highest cumulative ranking. Hence we can say that Reliability gets the maximum
score, out of all the variables as per the empirical data collected from the questionnaire
factor weightage in brand equity

FAMILIARITY
4800
4700
4600
ASSOSIATION 4500 AWARENESS
4400
4300

LONGITIVITY RELIABILITY

21
 FAMILIARITY

12

10
maximum value

0
1 34 67 100 133 166 199 232 265 298 331 364 397 430 463 496 529 562 595 628 661 694
data points

AWARENESS

12

10
maximum value

0
1 33 65 97 129 161 193 225 257 289 321 353 385 417 449 481 513 545 577 609 641 673
data points

22
 LONGITIVITY

12

10
maximum value

0
1 43 85 127 169 211 253 295 337 379 421 463 505 547 589 631 673
data points

RELIABILITY

12

10
maximum value

0
1 33 65 97 129 161 193 225 257 289 321 353 385 417 449 481 513 545 577 609 641 673
data points

23
 ASSOSIATION

12

10
maximum value

6 ASSOSIATION

0
1 37 73 109 145 181 217 253 289 325 361 397 433 469 505 541 577 613 649 685
data points

The above graphs shows the various data points for each question from 50 respondents.
Therefore we have 700 datapoints for each factor (50*14).

Factor Analysis Using Statistical Package For The

Social Sciences (SPSS):

KMO and Bartllets Test:

The output below shows the Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy
and Bartlett’s test of sphericity , the KMO statistics varies between 0 and 1 , a value of 0
indicates that the sum of partial correlations is large relative to the sum of correlations in
dictating diffusion in the pattern of correlation, hence factor analysis is likely to be in-
appropriate, a value closed to 1 indicates that the pattern of correlations are relatively
compact and so factor analysis should yield distinct and reliable factor.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

.653

Bartlett's Test of Approx. Chi-Square

558.865
Sphericity
Df 10
Sig. .000

24
As per our analysis the KMO measure of sampling gives a value of .653 i.e. > 0, hence
we can conclude that the adequacy of the sample is satisfactory.

Bartlett’s Measure Test:

This tests the null hypothesis that the original correlation matrix is an identity matrix, it
tells us that there are some relationships between the variables we hope to include in the
analysis. One wants this test to be significant (i.e. significance value > .05), in our
analysis since the significance level has come out to be .000 , hence we can conclude
that the test is highly significant, and hence the factor analysis is appoporiate.

Communalities:

Initial Extraction
FAMILIARITY 1.000 .726
AWARENESS 1.000 .689
RELIABILITY 1.000 .551
LONGITIVITY 1.000 .720
ASSOSIATION 1.000 .616
Extraction Method: Principal Component Analysis.

25
 Communality

0.8
Communality

0.7
0.6
0.5
0.4 Series1
0.3
0.2
0.1
0

Y
Y

N
S

IT
IT

IT

O
S

IV
R

TI
IL
E
N
IA

IT

IA
B
E

A
IL

S
R

LI
M

O
A

LO

S
FA

S
A

A
Variables

The above graph depicts the table values in the form of a graph.

The table consists of communalities before and after extraction, the principal component
analysis works on the initial assumption that all variance is common therefore before
extraction all communalities are1 whereas the communalities labeled in the column
labeled extraction reflects the common variance in the data structure.
From our analysis 72.6% of the variance associated with the variable named
‘Familiarity’, 68.9% of the variance associated with the variable named
‘Awareness’ and 72% of the variance associated with variable ‘Longitivity’ has
been taken into consideration for analysis.

Total Variance Explained:

Extraction Sums of Squared Rotation Sums of Squared

Initial Eigenvalues Loadings Loadings
Compo % of Cumulati % of Cumulati % of Cumulati
nent Total Variance ve % Total Variance ve % Total Variance ve %
1
2.095 41.906 41.906 2.095 41.906 41.906 1.652 33.039 33.039
2
1.207 24.143 66.050 1.207 24.143 66.050 1.651 33.010 66.050
3
.670 13.408 79.457

26
4
.516 10.329 89.786
5
.511 10.214 100.000

Total Variance Explained

Extraction Method: Principal Component Analysis.

The first column (Initial Eigen value), lists the Eigen values associated with each
linear factor before extraction.
Before extraction, SPSS had identified 5 (five) components within the data set, the
Eigen values associated with each factor represents the variance explained by
that particular component and SPSS also displays the Eigen value in terms of
percentage of variance explained.
From the table it is evident that the variable 1 i.e. familiarity explains 41.9% of the
total variance and the next factor i.e. component 2 (longitivity) shows 24.14% of
the total variance and henceforth.

The next column (extraction sum of squared loadings) lists the same values as in the
previous column i.e. component 1, except the values for the discarded factors are
ignored.

The final column i.e. (rotation sum of squared loadings), the eigen value of the
factors after rotation are displayed, rotation has the effect of optimizing the
factor structure and one consequence for these data is that the relative
importance of the two factors is equalized.
Before rotation Familiarity accounted for 41.9% however after rotation it accounts
for only 33.03% of variance .

Scree Plot:

The screen plot shows the number of factors that should be retained.

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 Scree Plot

2.0
Eigenvalue

1.5

1.0

0.5

1 2 3 4 5

Component Number

The scree plot generated by the SPSS shows that a point of inflexion occurs at the
component number 3 , therefore we retain only two components i.e. there are two factors
that can explain the whole behaviour.

Rotated Component matrix:

This matrix shows the loading of the variables on the two extracted factors.

Rotated Component Matrix(a)

Component

1 2
FAMILIARITY
.850 -.063
AWARENESS
.811 .178
RELIABILITY
.516 .533
LONGITIVITY
.026 .848
ASSOSIATION
.071 .782
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Rotation converged in 3 iterations.

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The loading tells the extent to which the factor contributes to the variables. From our
analysis of the table generated by SPSS, we can infer that familiarity, awareness and
reliability have a high loading of 0.85 and 0.81 respectively, on factor number 1, and this
shows that the factor 1 is a combination of these two variables. A suitable phrase to
explain that is: POPULARITY (say F1)

Longitivity , reliability and association have a high loading of 0.848, 0.782 and 0.533
respectively on factor number 2 .this shows that factor 2 is a combination of the above
mention three variables. A suitable phrase to explain this is: CONSISTENT
PERFORMANCE (say F2)

Component Score Coefficient Matrix:

Component

1 2
FAMILIARITY .566 -.190
AWARENESS
.498 -.026
RELIABILITY
.243 .258
LONGITIVITY
-.132 .549
ASSOSIATION
-.091 .498

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Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.

This table gives the factor weight matrix and is used to compute the factor scores
The two factors (Popularity and Consistent Performance) calculated above, can be put
into empirical form by the help of component score coefficient matrix, the values under
the column marked as 1 depict the factor scores for factor 1 i.e. Popularity (F1) and
column marked as 2 depict the factor scores for factor 2 i.e. Consistent Performance
(F2).

Based on the matrix we can formulate two equation, one for Popularity and the other
Consistent Performance as under :

F1 (Popularity) = 0.566 X11 (Familiarity) + 0.498 X21 (Awareness)

F2(Coust. Pref.) = 0.258 X12 (Reliability) + 0.549 X22 (Longitivity) + 0.498

X32 (Association)

Component Transformation Matrix:

This output shows the correlation of the factors before and after the rotation.

Component Transformation Matrix

Component 1 2
1
.708 .707
2
-.707 .708
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.

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THE LIMITATIONS:

TWO BIG HURDLES:

1. The information incited by our questionnaire through the factors that affect brand
equity in umbrella branding are difficult to quantify. But it was only the close ended
rating method that made our research possible by making these factors able to be
analyzed by analytical and statistical tools. So our plan of action had to incorporate
this factor mostly.

2. The respondents used by us had to be aware of different brands of different sectors

covered by us. So we needed educated people to provide us with information that could
help us obtain proper results and make our research a success to analyze factors that
affect brand equity in umbrella branding.

OTHER HURDLES:

1. Situated 40 kilometers away from the city was a hurdle to get the quality of
respondents we wanted. But we overcame this by traveling in and out and covering
places like City Centre, Hyderabad Central etc.

2. Other limitation was that our 14 questions covered different industries which disabled
us to compare contribution of each factor towards brand equity in umbrella branding
industry wise.

3. We have covered only five parameters affecting brand equity in our study but there
can
be more. The five factors covered are the major ones as they were chosen on the basis
of priority to given to these factors in various marketing books like The Philip Kotler ,
ICMR marketing.

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CONCLUSION:

Primary data was collected through questionnaires by asking respondents to rate the
alternatives between 1 to 10 to find the effect of brand equity on umbrella branding. The
variables taken into consideration are awareness, reliability, familiarity, longitivity and
association. As per the ratings received by the respondents on a scale from 1 to 10, the
same was run into SPSS to draw a conclusion using factor analysis.
Through factor analysis the 5 variables taken into consideration were reduced to two
components. From the loadings we could infer the extent to which the factors contributed
to the variables. We could infer that component 1 is a combination of familiarity and
awareness which can be summarized as popularity. Longitivity, reliability and
association forms part of component 2 which can be summarized as consistent
performance and the relationship between them can be given by the following two
equations.

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REFERENCES:

• Research design, Icfai Center for Management and Research, chapter 3, p 26-29

• Data Collection, Icfai Center for Management and Research, chapter 7 & 8, p 81-
115

• Questionnaire development and pre-testing, Malhotra N, chapter 10, p 278-306

• Sampling techniques, Malhotra N, chapter 11, p 312-335

• Data analysis, Malhotra N, chapter 14, p 400-420

• Factor analysis, Malhotra N, chapter 20, p 584-604

• Secondary data, internet, ZYMAN INSTITUTE OF BRAND SCIENCE,

www.zibs.com, Dec.06, 2006.

• BEST GLOBAL BRANDS 2006-a ranking by brand value (inter-brand

BUSINESS WEEK), internet, www.interbrand.com, Dec 06,2006.

• Brand equity, internet, www.marketingline.com, Dec.06,2006

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THANK YOU, HOPE YOU ENJOYED THE
TREAT

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