You are on page 1of 44

PROJECT REPORT ON

Marketing Strategy of Procter & Gamble

Invertis University
Submitted to: Submitted By:

PREFACE
This report has been prepared to have a received of what I have done & learned about Marketing in FMCG Industry. This report contains a basic introduction of FMCG industry & Marketing Management I hope that this report provides sufficient information regarding my work on the project. I would consider my efforts to be fruitful if it proves useful to somebody at latest stages.

1

Acknowledgement
Behind every achievement lies an unfathomable sea of gratitude to those who have extended their support and without whom it ever has come into existence. I would like to take this opportunity to thank my project guide, Mr. Rajiv Bhandari for their guidance and motivation without whom the successful completion of this project would not have been possible. Therefore constant support has given me an overall learning experience. Furthermore I would like to thank all other team members whose valuable inputs have helped me gain a better understanding of the project and the organization.

2

DECLARATION I Chitvan Johri hereby declared that the project report entitled “Marketing Strategy of Procter & Gamble” under guidance of submitted in partial fulfillment of the requirement of the award of the degree of in my original work.

3

dependent on both the primary and the Secondary sources of data.EXECUTIVE SUMMARY The key ingredients of a brand are image attributes and products. journals and magazines constitutes the Secondary sources of data. The dealers don‟t provide much support 4 . All-American. The primary sources of data constitutes the interaction (both formal and informal) of the researcher with the top managers and other company officials of the Hindustan Lever Limited and Procter and Gamble and 50 consumers who were randomly selected. the Coke brand can also be associated with products such as Coke Zero. when actually it should be sold like a high volume product. the Coke brand can be associated with image attributes such as refreshing. This is perhaps due to the bargaining stress on the customer and the weak push given by the dealer to the particular item. Although being the most competitive product on the basis of the Market Operating Price (MOP). etc. Objectives of this study are:1. To analyse whether brand extension can be a successful strategy in sell and profit maximization As a result of my project work I wish to conclude that HLL sales growth in June 2007 was decreased due to the problem with promotion and pricing. Diet Coke. tastes great. The Annual Reports of the concerned companies and the relevant literature and facts and figures available on the problem of the study in various books. For example. Marketing activities and communications can convey either brand image attributes or product category information. The important thing is that the prominent information communicated to consumers is presented consistently between the brand and the brand extension. the shampoos are still not selling much. Conversely. To understand the concept of Brand extension in the Indian business scenario. Another serious suggestion is that HLL and P& G must give good attention to their all the products rice and all are not getting much attention. The present study is purely an exploratory study. and so on. Cherry Coke. 2.

to the customers in making them understand the real Quality behind them. the technical details should be presented in a clearer manner or the dealers need to be educated properly. Either. 5 .

CONCLUSIONS / FINDINGS 7. RESEARCH METHODOLOGY  Research objectives  Research design  Data sources  Sample design  Limitations of the research 3.TABLE OF CONTENTS 1. ANNEXURES 9. INTRODUCTION  Industry Overview 2. RECOMMENDATIONS 8. BIBLIOGRAPHY / REFERENCES 6 . COMPANY PROFILE  Market Presence  Range of products and services  SWOT Analysis 4. DATA ANALYSIS AND INTERPRETATION 6. CONCEPTUAL DISCUSSION 5.

In this environment. the Coke brand can also be associated with products such as Coke Zero. Brand is a powerful differentiator in a competitive market place. the Coke brand can be associated with image attributes such as refreshing. but also by consumers. WHAT MAKES UP A BRAND? The key ingredients of a brand are image attributes and products (Loken. A brand represents values (trust. confidence.have become attached. colour and so on. and Augmented Product can be considered in this context. Marketing activities and communications can convey either brand image attributes or product category information. it is common to see the promotion of a full range of products under a brand name in a single communication. Joiner. Core Product. and brand leveraging-strategies are becoming increasingly popular.INTRODUCTION Product is a bundle of satisfactions that a customer buys. 1999). perfume. comfort and 1 . All-American. Research in consumer psychology also shows that brand categories function psychologically like other types of categories (Boush & Loken. For example. BRANDS ARE VIEWED AS “CATEGORIES” Brands are viewed as categories not only by managers in companies. etc. A brand variant is to extend a brand name within the same product category by offering different product attributes such as form. and Peck. and so on. Therefore. Three concepts of a product: Tangible Product. 2002). consumers will be more inclined to think about brands as categories when evaluating a brand name. Morrin. Cherry Coke. 1991. It represents a solution to a customer‟s problems. Diet Coke. relevant and motivating set of associations and benefits . Conversely. The product is always a combination of tangible and intangible benefits. A brand is the name for any marketable unit to which a unique.functional and emotional . The important thing is that the prominent information communicated to consumers is presented consistently between the brand and the brand extension. tastes great. Many companies are organized by brand.

possibly. on the other hand for the Sunsilk brand name is Sunsilk conditioner which extends a shampoo brand name into an adjacent. perfume and.reliability) in a customer‟s mind. but is targeted at another target sector. Brand extension. 2 . but different product category. Hindustan Lever has Sunsilk as a brand of shampoo. Finally a sub-brand is a product which has the same core values as the mother brand. This has meant that MANIT‟s brand image is very poor through it has been awarded such a high status by the Government. MANIT is regularly in news in local press due to the hooliganism of its students. Some brand-related questions likely to be faced by an educational institution: Should we develop a brand for our institution individually or should we join hands with our institutions of the region and promote a common brand? (IITs have realized that IIT as a brand is the common property of all IITs and they must project it globally) Does it make more sense to have a brand for the institution as a whole or is it preferable to have a separate brand for each product offering? (NIIT tried to develop separate brands like GNIIT but has realized that developing NIIT as one brand is the better course) rand suggest? Do this match with the overall offerings made by the institution? Is there a mismatch between the offerings and the brand image? What can be done to correct the mismatch? (MANIT.). the shampoo has several variants which differ in terms of colour. For example. Indeed. Bhopal recently got the status of NIT and shed its earlier name of MACT. then we could also define that as a brand extension. if Sunsilk had a hair wash soap under the same brand name. ingredients which serve a functional purpose. A brand extension is to extend the brand name established in a particular product category to a new category.

To study the marketing mix of P & G. 3 . To study the products of P & G.Objectives     To study the Marketing Strategy of Procter & Gambles. To study the swot analysis of P & G.

uses particular materials and not others and the like. are relevant and which are not.e. 4 . he has to evaluate why and on what basis he selects particular size. i. Researchers not only need to know how to develop certain indices and tests . how to calculate the mean. which of these methods or techniques . windows and ventilators. number and locations of doors. how to apply particular research techniques. has to consciously evaluate the best of his decision . but they also need to know . The primary sources of data constitutes the interaction (both formal and informal) of the researcher with the top managers and other company officials of the Hindustan Lever Limited and Procter and Gamble and 50 consumers who were randomly selected. dependent on both the primary and the Secondary sources of data. It is necessary for the researcher to know not only the research methods / techniques but also the methodology. For example .. The present study is purely an exploratory study. journals and magazines constitutes the Secondary sources of data. the median or the standard deviation or the chi square. and what would they mean and indicate and why. Researchers also need to understand the assumptions underlying various techniques and they need to know the criteria by which they can decide that certain techniques and procedures will be applicable to certain problems and others will not. In it we study the various steps that area generally adopted by a researcher in studying his research problem along with the logic behind them.RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problems. The Annual Reports of the concerned companies and the relevant literature and facts and figures available on the problem of the study in various books. an architect while designing a building. All this means that it is necessary for the researcher to design his methodology for his problem as the same may differ from problem to problem. the mode. It may be understood as a science of studying how research is done scientifically.

And making them fill up the questionnaire . Question is open and close ended depending upon the information that needed to be elicited. books.The sampling procedure is systematic sampling 5 . Sampling plan:Keeping all the constrains in mind a sample size of 100 people . Primary data is by visiting existing customer and expected customer of Hindustan Lever Limited. and analysis and procedure. I am also using the scaling technique to assess the attitude of the customer. magazine etc. To understand the concept of Brand extension in the Indian business scenario. Hindustan Lever Limited and Proctor and Gamble.SAMPLE SIZE: SAMPLE AREA: OBJECTIVES 50 NCR DELHI 3.Secondary data is from internet. RESEARCH INSTRUMENT The instrument use for data collection is structured questionnaire. RESEARCH DESIGN:For this research project exploratory method is using DATA COLLECTION METHOD:The data collect for the research can be classified as primary data and secondary data. the field method. 4.e. the data collection method. To analyse whether brand extension can be a successful strategy in sell and profit maximization To develop a comparative understanding of the brand extension strategy followed by two major consumer product companies i. The section includes the overall research design. the sampling procedure.

paper goods (toilet paper). The two men. a candlemaker. William Procter. In addition to the increased profits experienced during the war. they continued to purchase the company's products. as a result of Alexander Norris' suggestion. It was the first company to advertise nationally direct to consumers (in 1880) and it literally created the concept of "soap opera" by sponsoring radio and television dramas targeting women. On October 31. approximately eighty employees worked for Procter & Gamble. Procter & Gamble is a giant in household products. and P&G produces Soap Operas as part of its elaborate marketing strategy in order to hook female customers up to its brands). Once the war was over and the men returned home. formed the company known as Procter & Gamble in 1837. Switzerland. In 1859. 6 . The company prospered during the nineteenth century. whose father convinced his new son-in-laws to become business partners. Its European Headquarters are in Geneva. By this point. P&G manufactures chemicals as input for its own products as well as for the chemical processing industry. During the American Civil War. the military contracts introduced soldiers from all over the country to Procter & Gamble's products. Worldwide producer of consumer. shampoos). Ohio that manufactures a wide range of consumer goods. and the company which defined many marketing strategies we now take for granted. household and pharmaceutical goods (in addition. the company won contracts to supply the Union Army with soap and candles. sales reached one million dollars. 1837. and James Gamble. beauty care (cosmetics. is an American global corporation based in Cincinnati. immigrants from England and Ireland respectively. food and beverages (coffee. a soapmaker. a new enterprise was born: Procter & Gamble.PROCTOR AND GAMBLE (P&G) Procter & Gamble Co. Olivia and Elizabeth Norris. Procter & Gamble (P&G) is America‟s biggest maker of household products. with at least 250 brands in six main categories: laundry and cleaning (detergents). who had settled earlier in Cincinnati might never have met had they not married sisters.

Charmin. Individual brands covered include Pampers. Following dynamic performance in 2003 and 2004. P&G markets its products to more than five billion consumers in 130 countries.Other inventions included the first Fluoride-based toothpaste (Crest). P&G produces chemicals. P&G demonstrated the strength of its recovery with the announcement in 2005 that it had agreed a deal to acquire legendary personal care products rival Gillette. making P&G the world's #1 advertiser. Finally. In addition. the revolutionary synthetic detergent Tide. Folgers and Pringles In the 1880s. P&G Prestige Products. In the decades that followed. William Procter's 7 . Advertising Age estimated global measured advertising expenditure of $8. Adbrands tracks several geographic units: Procter & Gamble Latin America and Procter & Gamble Europe. The group got back on track during 2002 with the purchase of Clairol and Wella and a renewed focus on core products. Iams. The company called the soap Ivory. Today. Wella. Tide / Ariel. an inexpensive soap that floats in water. Crest. Clairol. the company‟s main competitors overseas.6 billion]. Fortune 500 lists America‟s Top Performing Companies. The company has on-the-ground operations in over 70 countries around the world. before its main competitor Johnson & Johnson (#57) and Kimberly-Clark (#142). Adbrands coverage of Procter & Gamble is split across several different pages. P&G also outperforms Unilever and Nestle. P&G found life in the first years of 21st century more difficult than it may have expected. Procter & Gamble began to market a new product.snacks). P&G ranks #39 on the list. Pantene. The company became known for its progressive work environment in the late nineteenth century. feminine care (sanitary towels) and health care (toothpaste. P&G also makes pet food and PUR water filters and produces the soap operas Guiding Light and As the World Turns. P&G Household Care and P&G Gillette. Procter & Gamble India and Procter & Gamble Japan. and employs more than 106. Pampers. As of July 2006. Olay. Procter & Gamble France. Last year‟s (2000) turnover equaled $37 billion [£25. as well as Procter & Gamble UK. Tampax. Procter & Gamble continued to grow and change. medicine).2bn in 2005. and the first disposable nappy. with earnings below expectations and a series of management shake-ups as a result of under-performance. Always. William Cooper Procter. Procter & Gamble Germany.000 people. the group operates three main global business units: P&G Beauty & Health.

As a result. Procter & Gamble began selling the first toothpaste to contain fluoride. becoming an international corporation with its 1930 acquisition of the Newcastle upon Tyne-based Thomas Hedley Co. the company began to focus most of its attention on soap. Pampers simplified the diapering process.grandson. In the early twentieth century. Company leadership also pioneered in the area of market research. first test-marketed in 1961. The company moved into other countries. and Procter & Gamble began branching out into new areas. In the early 1900s. Procter & Gamble maintained a strong link to the North East of England after this acquisition. the company chose to stop manufacturing candles in 1920. Procter & Gamble continued to prosper. where scientists worked to create new products. In addition. both in terms of manufacturing and product sales. Babies always wore cloth diapers. there was less need for the candles that Procter & Gamble had made since its inception. began producing Crisco. As radio became more popular in the 1920s and 1930s. although Johnson & Johnson had developed a product called "Chux". Procter & Gamble began making "Downy" fabric softener in 1960 and "Bounce" fabric softener sheets in 1972. Ultimately. in 1911. the company sponsored a number of radio programs. they would be less inclined to go on strike. One of the most revolutionary products to come out on the market was the company's "Pampers". established a profit-sharing program for the company's workforce in 1887. The company's leaders began to diversify its products as well and. these shows often became commonly known as "soap operas”. 8 . Prior to this point disposable diapers were not popular. Over time. The company introduced Tide laundry detergent in 1946 and "Prell" shampoo in 1950. a shortening made of vegetable oils rather than animal fats. numerous new products and brand names were introduced over time. Branching out once again in 1957. He hoped that by giving the workers a stake in the company. the company purchased Charmin Paper Mills and began manufacturing toilet paper and other paper products. In 1955. Throughout the twentieth century. known as "Crest". investigating consumer needs and product appeal. Once again focusing on laundry. Procter & Gamble also became known for its research laboratories. producing more than thirty different types by the 1890s. which were leaky and labor intensive to wash. As electricity became more and more common. because the demand for products had outgrown the capacity of the Cincinnati facilities. The company began to build factories in other locations in the United States. Procter & Gamble continued to grow.

Ohio History Central. Shulton's Old Spice. This added brands such as Gillette razors. among others. Procter & Gamble acquired a number of other companies that diversified its product line and increased profits significantly. Olestra. Procter & Gamble again made headlines when the Food and Drug Administration approved a new product developed by the company. In 1996. Noxell. Soft & Dri. The acquisition was approved by the European Union and the Federal Trade Commission. These acquisitions included Folgers Coffee. It also plans to divest Gillette's oral-care product line. with conditions to a spinoff of certain overlapping brands. allowing our people. 9 . The deodorant brands Right Guard. and Dry Idea were sold to Dial Corporation. P&G has agreed to sell its SpinBrush battery-operated electric toothbrush business to Church & Dwight. As a result. Rembrandt. and Oral-B to their stable. {Source. our shareholders and the communities in which we live and work to prosper. Richardson-Vicks. In 1994. this placed their management in the unusual position of testifying in court that they had entered into transactions they were not capable of understanding. but its headquarters still remains in Cincinnati. Olestra is a substitute for fat in cooking potato chips and other snacks.} In January 2005 P&G announced an acquisition of Gillette. the company made headlines for big losses resulting from leveraged positions in interest rate derivatives. consumers will reward us with leadership sales. P&G provides branded products and services of superior quality and value that improve the lives of the world's consumers. 2005. Norwich Eaton Pharmaceuticals. and the Iams Company. Max Factor. Procter & Gamble has expanded dramatically throughout its history. and subsequently sued Bankers Trust for fraud.P&G's dominance in many categories of consumer products makes its brand management decisions worthy of study.[1] The companies officially merged October 1. profit and value creation.Over the second half of the twentieth century. Also known by its brand name Olean. Braun. Duracell. forming the largest consumer goods company and placing the Anglo-Dutch Unilever into second place.

PRODUCTS OF P& G 10 .

by detecting and removing deposits which are left behind from successive washes.  In 1995. Procter & Gamble Home Products Limited and Whirlpool India Ltd. by removing dinginess from them and restoring the original colors of the fabric.  In January 2001. delivering lively. free-flowing and sparkling-clean hair.  In August 2000. Procter & Gamble Home Products also re-launched the international range of Head & Shoulders.LANDMARKS OF THE COMPANY  In 1993. in three variants . Procter & Gamble Home Products Limited launched New Ariel Power Compact detergent with a new global technology that breathes new life into clothes. Procter & Gamble Home Products launches Ariel Super Soaker.Whirlpool Superwash' offer.5kg 11 .  In June 2000. making washing machines more affordable to the people of Hyderabad. Procter & Gamble India divests the Detergents business to Procter & Gamble Home Products. Procter & Gamble Home Products is incorporated as a 100% subsidiary of The Procter & Gamble Company.  In November 2000. dirt and grime in just one wash. Procter & Gamble Home Products Limited presented India in the first International Hair Styling and Beauty Expert Contest. launched a special 'Ariel .Clean & Balanced. USA. new pack-design and logo. best-ever Anti-dandruff shampoo with an improved formula. Procter & Gamble Home Products Limited launched Pantene Lively Clean its unique Pro-Vitamin formula cleans oil-build up. During this period. which offers the fine combination of anti-dandruff efficacy and hair conditioning. Procter & Gamble Home Products introduced Tide Detergent Powder .the largest selling detergent in the world. 1kg or 1.  In 1993. On purchase of either a 500gms.  In 1997 Procter & Gamble Home Products launches Head & Shoulders shampoo. In 2000. Procter & Gamble Home Products enters the Haircare Category with the launch of Pantene Pro-V.Hair Asia Pacific 2000 in collaboration with Sri Lankan Association of Hairdressers and Beautician. Smooth & Silky and Refreshing Menthol.

1 shampoo. advertising. in India. P&G pioneered in brand management. In 1999.238/. while maintaining the superior quality. and distribution techniques.  In January 2004. thicker looking and beautiful hair.economy pack of New Ariel Power Compact.  In March 2004. by filling in the application form that comes with the Ariel pack and contacting any one of the Whirlpool dealers mentioned on the pack. and easy to comb hair versus ordinary shampoos.6 percent in 1999‟. from 5 percent in 1996 to 2. Organization 2005 includes cutting 17. consumers are automatically eligible to buy a Whirlpool Washing Machine for as low as Rs." However.in Equal Monthly Installments for 24 months. Procter & Gamble Home Products Limited announced the launch of Pantene Hair Fall Control. Procter & Gamble Home Products Limited reduced the prices of Ariel and Tide bags (large packs) by 20-50%. The prices of Pantene 100ml and 200ml bottles were reduced by 16%. Procter & Gamble Home Products Limited announced the launch of Rejoice – Asia‟s No. The superior quality one kg pack of Tide now cleans a family‟s one month laundry in just Rs. thus giving them stronger. which is designed to free women of their hair fall concerns by reducing hair fall due to breakage by up to 50% within just two months.50/-. P&G has not been very successful recently. Marketing (still gaining importance) is definitely an important key to P&G‟s success.  In April 2004. and in new product research and development. One reason for P&G's domestic success has been their reliance on a combination of consumer research.3) in January 2000 to $64 (£44. P&G defined many marketing strategies we now take for granted. CEO Durk Jager kicked off Organization 2005 in order to forge better performance. offering superior value to consumers.3) in June 2001 . Rejoice‟s patented Micro-Silicone conditioning technology gives twice as smooth.23/-. in consumer surveys for marketing research.5 ml sachets. „Annual sales growth has been slowing over the last few years. As one critic put it: "Within a paternalistic corporate culture. while a one kg pack of Ariel cleans a family‟s one month laundry in just Rs. at affordable prices in 100 ml bottles and 7. The company stumbled badly in 2000 missing analysts‟ profit expectations and causing its famously reliable stock to plummet from $103 (£71.000 workers over the next three years and 12 .

Internet-savvy organisation. P&G‟s renowned R&D capacities were attractive to Coke.‟ So far. P&G wants to abandon its legacy of secrecy. P&G successfully tied up with chewing gum giant the Wrigley Company. Eight months later the consumer goods behemoths called the wedding off. The alliance would involve the union of some 40 consumer products (including Sunny Delight. However. it was a stodgy. The deal will allow P&G to cash in on the global gum.‟ In addition. Examples of these issues are the internationalisation and consolidation of retailing." One of P&G's new strategies is linking up with other companies to extract as much value from its brands as possible." However. fuel innovation. Today. This is bigger than the toothpaste market and equal in size to the shampoo or skincare sectors. "This restructuring. Coke and P&G announced a $4bn [£2." former CEO Millen explained. bureaucratic behemoth to that of a modern. Organization 2007 also aims at changing P&G's culture from a conservative. wring costs out of systems and procedures. Pringles and Minute Maid) under the umbrella of a Coke-P&G joint venture. The catalyst for all this change is IT. we felt that we could unlock the value of our brands more effectively and profitably by retaining full control of them.reorganising the company's corporate structure from four geographic business units to seven global business units based on product categories. Organization 2005 has had little to show. the potential effects of the Euro currency and dramatic advances in information technology. consumer loyalty and retention. fast-moving. P&G was hoping Coke‟s far-reaching distribution network could give the company a boost. „Its new spirit of openness is most evident on the Internet. nondescript site where no one other than investors or job seekers had any reason to go to. mint. P&G stresses the company will pick the fruits of the ambitious restructuring plan in the near future. retailers and wholesalers at the outset of the 21st century. P&G wants to make faster and better decisions. slow-moving.77bn] alliance. you see a consumer-friendly portal with loads of information about P&G products. A year ago. and breath-freshener market. „A spokesman for Coke said: "After many months of due diligence with Procter & Gamble. set more aggressive sales goals and nearly double its revenue. category management. cut red tape. „We 13 . "will ensure that P&G is well placed to address the issues facing manufacturers.

while continuing to build the brand‟s core equities in a relevant way to the entire target audience. which makes a wide variety of jams. There is also a lot of interest in the possibility of a new brand from P&G.M. It might also replicate the success Maybelline had when it introduced Revitalizing last year. Through packaging and in-store promotional materials. Smucker Co. With the P&G marketing muscle behind such a brand. Tide‟s primary target is women aged 20-55 with children. its racing program. Beginning in 2002. taking on a racing-oriented appearance. Retailers purchase product and materials due to the strong in-store presence and the popularity of NASCAR among their loyal customers. especcially one with an Olay offiliation. 14 . Landor developed a creative strategy to couple Tide Racing sponsorship with Tide‟s core benefit of superior cleaning. the company could possibly create some genuine excitment in what has been a very soft category lately. In an effort to leverage Tide‟s association with NASCAR. P&G has recently announced it will sell the Jif and Crisco brands in a bid to get rid of under-performing brands. which includes both NASCAR and non-NASCAR fans. P&G and J. Tide‟s packaging and promotion materials have traditionally evoked the imagery and excitement of NASCAR. and loyalty to. the Guardian reports ]. The special Tide Racing packages and NASCAR collector offers are popular with this audience. Crest mints and Crest breath freshener‟. is acquiring the Jif peanut butter and Crisco cooking oil brands from P&G for $1 billion in stock . Tide is the primary sponsor of PPI Motorsports #32 Ford Taurus with Ricky Craven driving. Tide has built a strong awareness of.will soon be able to sweeten our mouths with Crest gum. Within Nascar Sports. targeted to women over 35--the same age group as Olay users--has been extremely successful. The result was a program that uses Tide‟s sponsorship of NASCAR as an opportunity to continue to build the brand‟s core equ ities and drive home the brand benefit to Tide‟s target audience. Landor developed promotional materials that used images of the Tide Racing family at play and headlines with racing connotations to connect Tide to NASCAR in a relevant fashion. jellies and other foods. Tide‟s NASCAR sponsorship began in 1987 and NASCAR has since become America‟s number one spectator sport. Landor‟s challenge was to maximize the NASCAR association.. That line.

15 .  Strong brands in the FMCG sector.  Low cost operations WEAKNESSES:  Low export levels.  Several "me-too‟‟ products.  Small scale sector reservations limit ability to invest in technology and achieve economies of scale.SWOT ANALYSIS STRENGTHS:  Well-established distribution network extending to rural areas.  Export potential  Increasing income levels will result in faster revenue growth. OPPORTUNITIES:  Large domestic market.

In addition. escalating to an alltime high. will provide an attractive. unique. A study on the brand extension in light of consumer behaviour” To successfully position your brand above your competitor‟s continuing fight for your customers. A trademark or brand identifies a product and its sources.LITERATURE REVIEW ABOUT THE COMPANY From 1 brand = 1 product = 1 promise to 1 brand = many product = many promise. In today‟s fiercely competitive marketplace. marketing staff. sales staff. Market research has been used to help identify and develop bases of brand differentiation (Aaker1991). you must develop a brand proposition that when conveyed in marketing and advertising campaigns. with estimates ranging from 81% to 95%. customer support. brand extensions have become a standard strategy for new product introductions. this proposition must be realized and consistently echoed by senior executives. and relevant message to current and potential customers. Although brand extensions have become a standard strategy for new product introductions in today‟s fiercely competitive marketplace. R&D teams. Purchases of strong brands were seen as a short cut to buy customers mind (Kapferer 1992). and the rationale behind endowing a new product with a well-known brand name is to provide consumers--and the trade--with a sense of familiarity and security by leveraging positive brand characteristics in a new product category. Along came brand extension. by the beginning of this decade (The Wall Street Journal January 1992). and strategic partners. The rationale behind endowing a new product with a well-known brand name is to provide consumers--and the trade--with a sense of familiarity and security by leveraging positive brand characteristics in a new product category. In fact the distinguishing aspect of the modern marketing has been its focus upon the creation of differentiated brands. Today brand extension strategies are widely employed because of beliefs that they built and communicate 16 . the extant literature has examined brand extensions as if they occur in a competitive vacuum. Brand extensions have proliferated over the past decade. The 1980s witnessed a Copernican revolution in the understanding of the working of the brands. Brand extensions have proliferated over the past decade. the shift in the classic brand concept. but it does even more (Levitt 1966).

it is 17 . Functions Consumer Benefits Identification To quickly see and make sense of the offer Practicality to allow savings of time and energy through identical repurchasing and loyalty. brand extension can be used to take advantage of marketplace growth opportunities (Dawer and Anderson 1994. Park and Srinivasan 1994. The classification made by Nelson (1970) and by Darby and Karni (1973) shows the clear distinction that consumers have in their mind with regards to the following types of product characteristics  The qualities that are noticed by contract. Brands are direct consequences of the strategy of market segmentation and product differentiation. C. enhance awareness and increase profitability (Taylor and Bearden 2002). to its logo. Ideally. Furthermore. Research has proved that the success of brand extension depends on the transfer of parent brand awareness and associations to the extension (Aaker 1991). Thus brand acts as a source of value for the consumers. Shocker. Characterisation To have conformation of your self-image or the image that you present to others Continuity Satisfaction brought about through familiarity and intimacy with the brand that you have been consuming for years. (Kapferer 1992).strong brand positioning. Lane 2000) and to exploit positive brand equity (Keller 1993. Guarantee To be sure of the quality no matter where or when you buy the product Optimisation To be sure of buying the best product in its category. thus after buying  Credence qualities which cannot be verified even after consumption and which you have to take on trust. The transfer of these quality perceptions is the key in umbrella branding (Wernerfelt 1988).S. A great benefit of brand extension is the instant communication of this salient image (Pitta and Katsanis 1995). It performs several functions in the mind of the consumers. Kumar and Ganesh 1995. before buying  The qualities that are noticed uniquely by experience. in which the same brand name is used for several products. to its communication. Ethical Satisfaction linked to the responsible behaviour of the brand in its relationship with society. Srivastava and Ruekert 1994). Hedonistic Satisfaction linked to the attractiveness of the brand. Brands are often extended beyond their original categories to reduce the cost and risk of entering a new product category (Aaker 1991). the best performer for a particular purpose. In the second case the role of brand image plays an important part. the parent brand‟s associations can contribute to a complex yet well defined brand image to the extension.

a modified 'value in use' approach can help to determine the market value of brand extension license opportunities. Arm & Hammer leveraged it's wellknown brand equities—from basic baking soda into the oral care and laundry care categories. Today. By emphasizing its key attributes. word of mouth and advertising (Kapferer1991). Ralph Lauren's Polo brand successfully extended from just clothing to home furnishings like bedding and towels. and opportunities for brand extension and licensing. higher margins. Both clothing and bedding are made of linen and fulfill a similar consumer function of comfort and homeliness. Corporate or brand licensing represents a growing share of the many trademark license agreements developed each year. It increases awareness of the brand name and increases profitability from offerings in more than one product category. In the third case the brand needs to add aura of make-believe when it is consumed. However. a brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals. Numerous studies have found that brands provide greater value than other corporate assets.the collective representation. Arm & Hammer was able to leverage those attributes into new categories with success. analysts and marketers that a strong brand can provide powerful competitive advantages such as greater customer loyalty. which is shaped over time by the accumulated experiences of close relations. it's surprising that few licensor's use a formal valuation process for new license opportunities. and in many cases. the cleaning and deodorizing properties of its core product. Given the value of these brands. more than 70% of shareholder value. 18 . Although valuation remains a hotly debated subject. Brands use this as a strategy to increase and leverage equity (definition: the net worth and long-term sustainability just from the renowned name). it concludes that brands account for more than a third of shareholder value (on average). there is a consensus among many academics. An example of a brand extension is Jello-gelatin creating Jello pudding pops. Brand extension is a marketing strategy in which a firm that markets a product with a welldeveloped image uses the same brand name but in a different product category. Perhaps best known is the “Global Brands” study conducted by Interbrand.

Some of the basic reasons that generally contribute to the brand extension are the following THE SHIFT IN THE CLASSIC BRAND CONCEPT Innovations allow brands to remain up to date and demonstrate an unceasing urge to detect and respond to the profound change in customer tastes and expectations. The already strong brand can be penetrated into a new product category or it can be licensed to others for use (Aaker 1991). The cost of advertising makes it difficult to sustain many brands. huge investment is required for product upgradation. (Kapferer 1992) The advertising of the parent brand can also bring about cross-fertilization (Keller 1993). (Kapferer 1992) Brand extension gives access to an accumulated image capital. It might help in reinforcing the core product‟s brand instead of weakening it (Nageswararao and Rajakumar 1999) Brand extension is a way of defending a brand at risk in the basic market. then they run the risk of being left behind. Brand extension can comprise of following areas  New product  New customer  New format 19 . companies prefer to concentrate on few brands. If a firm is looking for growth by exploiting its assets. (Kapferer 1992) Successful companies follow the principles of building global brand to cut cost (Aaker and Joachimsthaler 1999). The final benefit is that it enhances the parent brand or the core product also. then brand extension is a natural strategy for it. (Kapferer 1992) Brand extension helps the firm to move away from being a mono-product. Potential buyers hopes to derive immediate profits from the brands by extending it and earning royalties. they utilize trademark licensing to enter new markets beyond their core competencies. Because many brand owners don't have the resources to pursue every viable business opportunity. (Kapferer 1992) The second factor being the cost of advertising.The recognition that brands are powerful yet underutilized assets is why trademark licensing has become a popular marketing strategy. Thus if the brand do not follow the developments.

The perception about the brand is built over a period of time. consumers will have instant recognition of the product name and will be more likely to try the new line extension. Brand line extensions reduce risk associated with new product development. This would result in having brands with narrow spectrum of presence or called as „specialised brands‟ and brands with wide spectrum or called „generalist brands‟ (Kapferer 1992). what consumers‟ perceive about the brand. In order to successfully develop the most effective branding strategy. relevant. Due to the established success of the parent brand. a firm understanding of what a brand is must first be answered. and consistent brand experiences for their customers. Either you make the customer experience. As a result. Remember: “You can‟t escape your brand. Thus there would be brands that are very close to each other and others which eliminate technological synergies and physical links between products that form real the Shift in the Classic Brand Concept diversification. Aaker views brand extension in a similar way. The result is higher expectations. promotional 20 . today consumers have more access to information and more choices than ever before. Here extensions are differentiated on the basic difference of whether the extension is in the same or different product category (Aaker 1991). and the brand‟s message must captivate the consumer immediately. or it gets made without you. Companies seeking to experience long-term success will have to create the most compelling. The strategy that a company would more or less depend upon is. also called as continuous extension and discontinuous extension. WHY IS SUCCESSFUL BRANDING SO IMPORTANT TODAY? Though brand development is by no means a new idea.” Prophet Corp. New channel  New business  Brand migration  Brand recycling Kapferer has classified typology of brand extension into mainly close extension.

This conveys a consistent perception to the target audience in every medium of communication that is used. and the off-strategy. and. excellent communication. “A brand is the sum of the good. and client satisfaction. from customer service.” THE BRAND’S CREED The development of a branding strategy must begin with identifying the brand‟s (the business‟) core values. More products expand the company‟s shelf space presence . At best. where they may stay forever. It is also defined by your receptionist and the music your customers are subjected to when placed on hold. to teleconferences. It is defined by the accomplishments of your best employee-the shining star in the company who can do no wrong-as well as the mishaps of the worst hire that you ever made. “A Brand New World”. As such you can't entirely control a brand. published by Viking Press.costs are much lower for a line extension than for a completely new product. for fleeting feelings. for images. to website design. integrity. they are evident in every aspect of the organizations‟ business routine. These are qualities which an organization deems most important. In it he gives excellent thorough definition of what a brand is. THE BRAND IS EVERYTHING Scott Bedbury is a leading branding consultant that has worked closely with companies like Nike and Starbucks. to direct marketing. got approved. the brand is also defined by derisory consumer comments overheard in the hallway or in a chat room on the Internet. sank into oblivion.enhancing brand recognition. Though these values are usually never revealed to the public. to the treatment of its employees and strategic partners. For every grand and finely worded public statement by the CEO. you only guide and influence it. the ugly. They become psychological concepts held in the minds of the public. If is defined by your best product as well as your worst product. the bad. Consideration for these values should not be taken lightly for these values 21 . an organization or business may identify its core values to include: honesty. It is defined by award-winning advertising as well as by the god-awful ads that have somehow slipped through the cracks. For instance. Brands are sponges for content. not surprisingly. has written a book titled.

In practical cases. but it is the feeling and the anticipation of that feeling that the brand conveys most compellingly. it represents chocolate or ice cream. This may be the most difficult and often overlooked aspect of successful brand development. there can also be significant risks. trust. First. the brand‟s core values should never change. Brand line extensions do present two potential threats. Tauber. relevant.. 1981. resulting in a diluted or severely damaging a brand image. And though the brand‟s proposition may change from time to time. conjures up an image of sinful indulgence. Secondly. negative association and wrong communication strategy do harm the parent brand even brand family (Aaker. perhaps even the logo. understanding. and support. “think Godiva chocolates for a moment: the very name. 1990. 1988). 1993.” Positive emotional bonding comes from a mutually beneficial relationship built on intrigue. a seemingly insurmountable communication gap will develop between the internal brand perception and the audience‟s actual perception. 2003). Build your brand promise on the basis that your product will deliver positive. or between two or more line extensions. 1998). Martinez and Pina. These are qualities that often separate colleagues from friends. and friends from family. This is also where a lack of comprehensive research into identifying the target audience‟s needs and desires can either make or break an attempt at developing a positive emotional attachment between the brand and its audience. wrong brand extension may dilute and deteriorate the core brand and damage the brand equity (Aaker. Roedder-John et al. consumers‟ attitudes toward other products carrying the same brand name may be damaged. and unique emotional qualities. An important aspect of brand development is to create a positive emotional attachment to the brand which creates a response in its audience without the audience seeing the product or directly experiencing the service. On the other hand. there is potential for intra-firm competition between the parent product and the line extension. if the new line extension fails to satisfy. the failures of brand extension are at higher rate than success. few studies show that negative impact may dilute brand image and equity (Loken and John. The key to 22 . Most of literatures were focus on the consumer evaluation and positive impact on parent brand. Again from Bedbury‟s book. Nevertheless.represent the “creed” for the business and become the cornerstone for developing the brand‟s proposition. While there can be significant benefits in brand extension strategies. If not done effectively. 1990. In spite of the positive impact of brand extension. Yes.

with the introduction of Pierre Cardin pens (at the price of Indian rupees seven each). limited luxury editions of automobiles. the core audience is bothered and feels cheated with the „prestige‟ of their product being tarnished. There are some essential features of brand extension in a competitive situation and is comprised of two crucial strategic decisions:  Against which competitive brand to position the new product 23 . For example. upscale. or downscale. a part of their core audience moved away as their „designer‟ label was now within reach of everyone. in India). The vertical upscale extension carries lesser risk and seems more appealing to the management. a related brand is introduced in the same category but with a different price and quality balance. They are termed line extensions and franchise extensions. there were few buyers. Line extensions involve a current brand name that is used to enter a new market segment in its product class (example. The new products can extend vertically in two directions. The new product is inferior to the earlier product but the quality-price balance is appropriate. This is most successful in the case of extensions being in almost the same business as the core product. involving a new product with higher price and quality characteristics than the original. for example. There are two types of horizontal brand extension that differ in terms of their focus (Aaker and Keller 1990). Upscale extensions of prestige products are more acceptable.Perk and Coffee Perk. VERTICAL EXTENSION In the case of vertical extension. franchise extension uses the current brand name to enter a product category new to the company (Tauber 1981).TYPES OF BRAND EXTENSION HORIZONTAL EXTENSION These apply or extend the existing product‟s name to a new product in the same product class or to a product category new to the company. Though in the case of prestige oriented product. when Gillette came up with a gold tone plated luxury Trac II razor in a hinged prestige gift box. involving a new product with lower quality and price points. For example. The vertical downscale extension is more successful in functional products such as a stripped down version of computer software at a lower price. In this case functional products are ruled out. In contrast.

24 . This emphasises three key factors in the implementation of the brand extension study namely. A high fit usually spells success like in the case of Colgate toothpaste extending into the toothbrush segment under the general attribute of dental care. as they feared the name Pan-Parag would not go down well with the users as the name of a pen. the attributes of the extension brand and the „perceived fit‟ between the brand and the extension. the competitive brand in the extension category.The selection of product attributes or benefits that provide a differential advantage for the product compared to the competitive offerings and to attain consumers mind share (Lane 1980). like the case of the owners of Pan-Parag in India coming up with their range of pens under a new name Rotomac. On the other hand a low fit would spell otherwise.

2001). Klink & Smith. not only in terms of increased brand recognition. Balachander & Ghose. First. Kim & Sullivan. consumers are more likely to accept upward or downward brand extensions in terms of price. In this case. Smith & Park.g. Failure or inconsistent information dilutes the brand. and Reddy. Third.g. Positive past experiences with a brand can also increase consumers‟ expectations about brand extensions which need to be met (e. 1999). factors that increase the consumer‟s acceptance of a moderately different extension include the mood of the consumer (e.g. when a brand is a nonprestige brand. owners are less likely to accept a downward brand extension because they want to maintain brand exclusivity (Kirmani. if it is only moderately different. 2001). Brand Enhancement versus Brand Dilution Prominent and consistent brand extensions shore up brands in various ways. depending on certain conditions. 1992). For example.BRAND EXTENSIONS: WHAT MAKES THEM ACCEPTABLE? Which factors make a brand extension more acceptable or likable? If it is a very different extension. but also sales (e. 2000. For example. people are less likely to accept brand extensions to other product categories (e. Loken and John (1993) found that when Johnson & Johnson (a brand associated with high gentleness) introduced a new product with low gentleness. 2002). 1998). & Bridges. Sood. Meyvis & Janiszewski. Campbell‟s soup). Narrow brands tend to be associated with a specific product category (e. when a brand is a prestige brand. 1999).g. However. frequency of repetition of advertisements for the extension (e. brand extensions also run the risk of watering down parent brands. vertical extensions can upgrade the image of a brand.g. Finally. Further. Mazumdar & Raj. if a brand introduces a higher level of technology. For example.. Lane. Second. Barone & Miniard. advertising for brand extensions helps parent brands. But. consumers are more likely to accept and possibly embrace the extension. consumers are not likely to accept it easily.. umbrella branding strategies save costs in terms of brand development and marketing expenses (e. Fox. Quite the reverse. and whether the extension is coming from a “broad” brand or a “narrow” brand (Boush & Loken 1991.g. Campbell‟s spaghetti sauce).g.g. the extension enhances the perception of that brand (Jun. product experiences of one brand extension may encourage consumers to try other extended products of the brand (e. 2003). the extension affected the parent brand 25 . Swami Nathan. 2004).

Brand Dilution: What Mitigates Dilution? There are some strategies intended to help to mitigate dilution. therefore.g.” By distancing Crystal Pepsi from the original Pepsi. When extending brands. an ideal strategy is often to create distance through co-brands. Before Pepsi removed Crystal Pepsi from the market. Loken. if the brand extension is already perceived as extremely different or inconsistent with the parent brand images. 26 . & Bridges.negatively. Jun.g Kirmani. 1999) . Some researchers show that employing a cobrand for an extension can help guard the original brand against negative effects. Brand extensions can also run the risk of diluting parent brands. & Joiner. When prestige brands extend downward. inconsistent upward or downward vertical moves or competitor counter-moves can affect parent brands negatively (e. sub-brands. managers need to find the commonality between the brand and the extension and must then make this commonality evident. & Shocker. and this is prominent or salient to the consumer. insofar as the co-brands‟ attribute profiles are complementary rather than noncomplementary (Park. Prominent-consistent brand extensions are often able to enhance and shore up parent brands. In order to succeed with brand extensions and enhance parent brands. dilution is less likely to occur (Loken & John. and product packaging stressing differences between the extension and its parent brand. Sood. 1993). 1998). Brand dilution occurs particularly when prominent brand extension associations are viewed as moderately (rather than extremely) different from the brand. brand managers should keep prominence and consistency in mind. Sood. & Bridges. or when brands extend to low-quality products. distribution. To mitigate dilution effects. In addition. In some cases. or when the risk of dilution is high. 1999). the company changed Crystal Pepsi‟s name and slogan (to “Crystal by the makers of Pepsi”) and positioned it as a “different cola. sub-branding can be used to reduce dilution (e. and/or marketing communications. while beliefs about flagship products are less vulnerable to dilution (John. 1996). the company may have been able to minimize dilution effects caused by Crystal Pepsi. Kirmani. Extensions can also dilute beliefs about non-flagship products of the parent brand. brand managers should be cautious.

However if this adage is not taken care of. to obtain the most powerful customer insights. and understand the combination of customer‟s attitudes and the situations in which the brand is used. This is particularly true in service industries. Bridges are often best built when they leverage the unique emotional benefits of the brand‟s equity that are relevant to the customers. McKinesy have identified three steps. Secure the Customer’s Permission for the Positioning It is paramount to obtain the permission of consumers since it helps in building the bridge that can carry customers from where they perceive the brand to be today to where one wants to take it into the future. Generally marketers look at the product. and not what consumers are expecting. Result was that the campaign was a failure and finally they had to change the name from Nirma to Nima. as they want to launch it. It tarnishes the image and then great effort is required to regain the lost status. 3. and industries that require long lead times for organisational or infrastructure changes. Today UTI is undergoing the process of bifurcation 27 . given the need for tremendous organizational change. it is harmful not only for the extended product but also for the parent product. For example Nirma is widely perceived as a washing powder. If they had come out with another related product. Deliver on the Brand’s new Promise It is easy to say that “do what you say”.According to a McKinesy study the success and failure of brand extension depends on the positioning of the product. Ensure Relevance to Customer’s Frame of Reference One requires to be fully aware of the frame of reference with which customer views the product. 1. they would have been more successful than in their launch of Nirma bathing soap. This gap leads to non-acceptance of the product 2. A typical example of this is the negative influence that US-64 scheme has had on the image of Unit Trust of India (UTI). but very difficult to implement. which can help ensure success in positioning the product. Nirma did not think getting customer‟s preference here and launched the bathing soap without seeking their permission. Most of the brand extensions fail because they focus on aspirational rather than achievable positioning.

a brand extension with attributes that are perceived to be typical in the extension category is judged to be of higher quality when consumers evaluate the brand extension on its own grounds rather than in comparison with brands in the extension category.e. comprising US-64 for which assured repurchase prices have been announced and assured return schemes.The cabinet committee on Economic affairs (CCEA) has decided to divide the scheme into two parts  The old protected UTI (UTI-I). could strengthen the brand and also increase its profitability. in cases in which the brand‟s attributes in the extension category are atypical (i. the brand possesses attributes that differentiate it from other brands in the extension category).. To regain the investors‟ confidence in the UTI which has eroded in the recent past. In addition to the outcome measures as in the present studies. forthcoming). positioning the brand against the category prototype is generally preferable to the noncomparative format. if handled correctly. cognitive-response measures as well as experimental manipulations should be employed to provide further evidence for the cognitive mechanisms underlying extension-evaluations such as a reduction in the perceived distance between the brand and the extension in the case of comparative advertising. and Joiner. Whether or not a new brand extension will be accepted is determined to a great extent by what information about the brand is prominent for consumers and the extent to which the brand and brand extension are consistent on that important information (Loken. Overall. when the brand does not fit easily with the extension category. Finally. 28 . In contrast. and neither the ad format nor the type of attribute could overcome the negative effects of low fit. and. the package was meant to protect the pensioners and other small investors besides running the net asset value-based schemes of the fund on professional lines. Barsalou. low-fit brand extensions were generally judged to be of lower quality than high-fit brand extensions. If there is a high fit between the established image of a brand and the extension category.  The New UTI (UTI-II) comprising net asset value based schemes. Brand extensions.. the brand with typical attributes is judged to be of higher quality if the brand is positioned explicitly against the prototypical brand of the extension category. Future research should examine more closely the cognitive processes involved in consumers‟ judgments of brand extensions in the context of comparative brands.

29 .

30 .

The alliance would involve the union of some 40 consumer products (including Sunny Delight. consumers face uncertainty and perceive a financial risk when considering the extension for purchase. the shampoo has several variants which differ in terms of colour. they utilize trademark licensing to enter new markets beyond their core competencies. The recognition that brands are a powerful yet underutilized assets is why trademark licensing has become a popular marketing strategy. possibly. P&G was hoping Coke‟s far-reaching distribution network could give the company a boost. if Sunsilk had a hair wash soap under the same brand name.77bn] alliance. on the other hand for the Sunsilk brand name is Sunsilk conditioner which extends a shampoo brand name into an adjacent. ingredients which serve a functional purpose. Brand extension. What type of brand extension strategy your company follows? Hindustan Lever has Sunsilk as a brand of shampoo. but different product category. then we could also define that as a brand extension. perfume and. 31 . Last February (2001) Coke and P&G announced a $4bn [£2. P&G‟s renowned R&D capacities were attractive to Coke. why? When a known brand extends into a product category that involves sophisticated and stateof-the-art technology. Because many brand owners don't have the resources to pursue every viable business opportunity.Do you think brand extension is necessary for a company? If yes. Pringles and Minute Maid) under the umbrella of a Coke-P&G joint venture. P&G's new strategies is linking up with other companies to extract as much value from its brands as possible. Indeed.

Secondly. The key to avoiding intra-firm competition is to clearly differentiate between products. if the new line extension fails to satisfy. 32 . What are the risks involved in brand extension strategy in the consumer market in India? The officials of the companies identified two potential risks. the products must be different enough that they will not compete with one another as much as they will rival other companies‟ brands. there is potential for intra-firm competition between the parent product and the line extension.WHAT IS YOUR FUTURE BRAND MANAGEMENT STRATEGY? TO WHAT EXTENT BRAND EXTENSION CAN BE PURSUED? Both the HLL and P&G officials believe that the strategy of brand extension need to be pursued within its limitations. consumers‟ attitudes toward other products carrying the same brand name may be damaged. Although similar. First. However. or between two or more line extensions. the limitations vary fom one company to the other.

Bounty. due to the onslaught of focussed competitors in the respective categories. P&G has one of the largest and strongest portfolios of trusted brands. With the new entrants to FMCG space steadily expanding. soaps and skin care over the past year. if handled correctly. Actonel and Olay. the company has lost market share in categories such as fabric wash. including Pampers. Downy. Despite strong earnings numbers. Always.CONCLUSION Brand extensions. 33 . hence to maximize their sell and profit keep themselves engaging in brand extension policy as a sales promotion measure a an emerging company management rule. Both the companies are rivals in the consumer market. could strengthen the brand and also increase its profitability. Whether or not a new brand extension will be accepted is determined to a great extent by what information about the brand is prominent for consumers and the extent to which the brand and brand extension are consistent on that important information. Charmin. Crest. Lever may have to continue making heavy adspends and spend on new launches to protect its turf. One. Pringles. Tide. Iams. there are quite a few problem areas for Lever. Folgers. Pantene. Ariel.

Also these components should be dealt with independently.RECOMMENDATIONS Key Attribute components:      Value for money and Customer Care Operational attributes. The dealers don‟t provide much support to the customers in making them understand the real Quality behind them. In any correspondence with the customers the message should be sent in these components only to have the maximum benefit from the advertisement. HLL sales growth in June 2007 was decreased due to the problem with promotion and pricing. when actually it should be sold like a high volume product. the shampoos are still not selling much. Brand Image. Another serious suggestion is that HLL and P& G must give good attention to their all the products rice and all are not getting much attention. Either. 34 . The basic need of the customer need to be addressed which is actually not much expensive and better quality. This is perhaps due to the bargaining stress on the customer and the weak push given by the dealer to the particular item. Physical attributes. The advertisements should speak only of the believable concepts rather than glorifying the pretentious ones. Although being the most competitive product on the basis of the Market Operating Price (MOP). the technical details should be presented in a clearer manner or the dealers need to be educated properly. Customer Specific Details.

W. 28 (1). “Mood and brand extension judgments: Asymmetric effects for desirable versus undesirable brands. 63 (1). Sung Youl. 12 (4). B. Bridges (1999). Sood. 46 (1). M. and Christopher Joiner (1998). Paul and SLS Holden (2001). 283. 494-500. “Reciprocal Spillover Effects: A Strategic Benefit of Brand Extensions. David M. “The Effect of Parent Brand Experience on Line Extension Trial and Repeat Purchase." Journal of Marketing. Miniard (2002). 16-28. and Barbara Loken (1991).” Journal of Marketing. and SP Raj (1999) "Effects of Technology Hierarchy Brand Extension Evaluations.” Journal of Marketing. Sullivan (1998). D. Subramanian and Sanjoy Ghose (2003). A. (vii) (viii) 35 ." Journal of Marketing Research. “The ownership effect in consumer responses to brand line stretches. Tridib Mazumdar. Kim. Bottomley. S. Barone. Barbara Loken.” Journal of Marketing Research. “Do We Really Know How Consumers Evaluate Brand Extensions? Empirical Generalizations Based on Secondary Analysis of Eight Studies. 38. (ii) (iii) (iv) Boush. 62 (1). "The Negative Impact of Extensions: Can Flagship Products. J.. "A Process-Tracing Study of Brand Extension Evaluation. W. Kirmani.” Journal of Consumer Psychology. (v) John. 19-32. and M. and P. (vi) Jun. and S." Journal of Business Research.” Marketing Letters. 88-101.BIBLIOGRAPHY (i) Balachander. Deborah Roedder.291.

"Diluting Brand Beliefs: When Do Brand Extensions Have a Negative Impact?. 185-193. 36 (4). “The impact of ad repetition and ad content on consumer perceptions of incongruent extensions. C.” Journal of Marketing. 346-357. 453-466.” Journal of Marketing Research. W." Journal of Marketing. Lane.” Journal of Consumer Research. Journal of Marketing Research. Barbara and Deborah Roedder John (1993). D. & Shocker. and R. (xiv) (xv) Morrin. C. Barbara. 18(September). 57 (3). 149161. and C. (1996). “The Dimensionality of Measures of Product Similarity Under Goal-Congruent and Goal-Incongruent Conditions. 80-92 Loken.. Ingrid and David Stewart (2001). Composite branding alliances: An investigation of extension and feedback effects. and D. Maureen (1999). 326-336. Lawson (1991). 31(2). (x) (xi) (xii) Loken. 471-484. and Joann Peck (2002). Meyvis.” Journal of Marketing Research.” Journal of Consumer Psychology. "The Impact of Brand Extensions on Parent Brand Memory Structures and Retrieval Processes. Milberg. “Evaluation of brand extensions: The role of product feature similarity and brand concept consistency." Journal of Marketing Research. S. Smith (2001). 517-525. S.” Journal of Consumer Research. R.. Janiszewski (2004). C. 12(2). (2000). 36 . “Threats to the external validity of brand extension research. 71-84.(ix) Klink. A. W. Park. Y. R. (xvi) (xvii) Park. “When are broader brands stronger brands? An accessibility perspective on the success of brand extensions. 38 (Nov). V. Christopher Joiner. Jun. “Category Attitude Measures: Exemplars as Inputs. R. 38 (3). (xiii) Martin. T. 33 (November). 64 (2)..

65(4). C. 29(3). Richard J. Vanitha. Fox. 37 . (xix) Swaminathan. 296-313. Journal of Marketing Research. Vol. 1-15. W.(xviii) Smith. The effects of brand extensions on market share and advertising efficiency. D. Journal of Marketing. (1992). Reddy (2001).. & Park. C. and Srinivas K.