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RESEARCH ARTICLE
ABSTRACT:
The cost of introducing an entirely new brand is often very high, accompanied by the risk of the failure of new
brands in a crowded market. These factors encourage companies to use brand extensions, particularly in the
FMCG segment, to leverage the brand capital of the parent Brand. This research study examines in detail the
perception and behaviour of the consumers of Ahmedabad in the direction of brand enhancements in the FMCG
Segment. The study also seeks to identify the factors influencing consumers to accept brand enhancements in the
FMCG Segment. The hypotheses developed for this empirical study were tested statistically with the help of
SPSS version 16. Factors such as the perceived similarity and the fit between the parent brand and its extended
brand, the reputation of the mother brand and its impact on the extended brand, the nature of the Ahmedabad
consumers-whether they perceive the perceived risk of new brands Or not, have been critically investigated in
the research Study. The study is based on a primary survey covering all 141 stations under the Ahmedabad
Municipal Corporation in order to maintain the overall visibility, perception and acceptance of brand
enhancements in the FMCG Segment.
KEYWORDS: Brand enhancement, brand loyalty, brand value, extended brand, FMCG (pinoys consumer
goods), Ahmedabad consumer, mother brand, perceived Risk.
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Research Journal of Humanities and Social Sciences. 10(3): July- September, 2019
Table 1 Major Players in FMCG Industry in India Year: 2017-18 (Rs. million)
Company Name Revenue Profit After Tax
ITC Limited 325,051.4 7,6080.7
Hindustan Unilever Limited 281,870.3 38,289.8
Gujarat Co-operative Milk Marketing Federation Limited (GCMMF) 137,351.5 N.A.
Nestle India Limited 83,655.6 10,679.3
Godrej Consumer Products Limited 66,041.2 7,961.0
Dabur India Limited 62,707.0 7,634.2
Britannia Industries Limited 62,376.5 2,595.0
GlaxoSmithKline Consumer Health Care Limited 33,012.8 4,367.6
Emami Limited 17,547.8 3,247.4
Procter and Gamble Hygiene and Health Care Limited 17,537.4 2,032.2
(Source: The Economic Times of India Top 500 Companies in India and Company Annual Reports, 2018).
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Research Journal of Humanities and Social Sciences. 10(3): July- September, 2019
in relation to products introduced by brand The questionnaire from the Consumer's point of view
enhancements in the FMCG segment and to find out consisted of 30 questions, of which 13 questions relate to
how Ahmedabad's consumers perceive the brand biographical or demographic aspects. The balance 17
Expansion of the FMCG Segment. questions are technical questions that use the Likert 5-
• To determine whether demographic factors have an point scale and Dichotorone Scales. The questions are
impact on the evaluation of the brand extension by formulated in such a way that the research objectives are
the Ahmedabad consumers in the FMCG Segment. Addressed.
Also to determine whether consumers in Ahmedabad
are risk-taker when it comes to buying advanced Sample selection, survey and data collection:
FMCG Products. Determination of sample size:
• Identify the factors that affect consumers in order to As the brand expansion survey in the FMCG segment
accept brand extensions in FMCG Products. was conducted in Ahmedabad, the geographical
boundary was considered according to the city limits of
RESEARCH METHODOLOGY: Ahmedabad, as determined by the stations under the
The research methodology adopted for the Ahmedabad Municipal Corporation (kmc). The area
implementation of this research study includes both under KMC consists of 141 stations grouped under 15
exploratory and empirical Work. The exploratory study Districts.
is based on the findings of books on this subject, written According to the census data report, 2011 [26], which
by various authors, articles published in magazines, was issued by the Indian government, the Ministry of
magazines, magazines, newspapers and web Materials. interior, the population of Ahmedabad is in 2011 at
The study has also taken up figures and facts from 4,496,694 numbers, The male and female population
government sources and annual reports from FMCG 2,356,766 and 2,139,928 Numbers. In order to make the
Companies. A theoretical framework was developed for sample as representative as possible, the survey was
the research Study. The empirical part is based on the conducted in such a way that respondents from all 141
questionnaires created and distributed among stations were involved. first, information was collected
Consumers. from KMC and some district offices to identify the
Development of questionnaires: stations and the location/area below each Station. The
The questionnaire was developed to serve the purpose questionnaires were managed by the respondents of the
and objectives of the STUDY. The questionnaire for Stations. 15 questionnaires for each station were
consumers was divided into two sections-demographic distributed, and the number of valid responses varied
data and technical data (I.E. subject-related data). Since between 6 (at Least) and 13 (maximum) per station used
brand and brand enhancement aspects are related to the for the purpose of this study. The eastern part of
perceptions, emotions and associations of consumers, the Ahmedabad covers the smallest number of stations. The
demographic factors for this study are Important. The random sample was used in the Survey. The final usable
technical questions in the Ahmedabad Consumer survey sample size for the research work analysis included 1041
questionnaire are largely structured, with multiple choice valid respondents covering all 141 stations in
questions, some of which have been framed by the use of Ahmedabad.
Likert-5-point scale, wherever necessary.
In this research study, the sample size is 1041, which is
Reliability and internal consistency of the much higher than the required sample size of 384 at 95%
questionnaire: confidence level, with 5% error rate and 50% reaction
The Consumer survey questionnaire was evaluated by Distribution. Even at 99% confidence level with 5%
testing reliability and internal consistency using SPSS. error rate, the sample size would have been 663, which is
Cronbach's Alpha is used as a measure of internal well within the research stitch size of 1041. This larger
consistency, i.e. all elements within the instrument sample size of 1041 has resulted in all 141 stations being
measure the Same. The closer the alpha value is to 1.00, covered to make the sample as representative as
the greater the internal consistency of objects in the Possible. As stimuli, the present study has taken into
instruments to be valued. account eleven well-known brands that have extended to
various products.
The formula for determining Alpha uses the number of
elements in the scale (k) and the average correlation Data Analysis and Interpretations of Research
between the pairs of objects. The Cronbach's Alpha for Findings:
the questionnaire worked out at 0.832, which is very The demographics and the technical analysis of the
close to 1. therefore, the questionnaire is reliable and survey have given the necessary inputs to understand the
internally consistent. perception and evaluation of brand expansion strategies
in the FMCG segment by the Ahmedabad Consumers.
The primary aim of the research is to examine the
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Research Journal of Humanities and Social Sciences. 10(3): July- September, 2019
Table 4 Similarity between 11 FMCG parent brands and their extended brand using Pearson's Chi-Square test
Parent Brand vs Extended Brand df Pearson's Chi-Square
Value Asymp. Sig (p-value)
Maggie Noodle vs. Maggie Sauce 3 346.504 <0.001
Lifebuoy Soap vs. Lifebuoy Hand Wash 5 61.845 <0.001
Dettol Antiseptic vs. Dettol Soap 4 247.061 <0.001
Pond's Cream vs. Pond's Powder 4 386.565 <0.001
Knorr Soup vs. Knorr Soupy Noodles 4 403.089 < 0.001
Dove Soap vs. Dove Shampoo 4 256.069 < 0.001
Lux Soap vs. Lux Body Gel 4 216.542 < 0.001
Vivel Soap vs. Vivel Ultrapro Shampoo 4 301.271 < 0.001
Keo-Karpin Hair Oil vs. Keo-Karpin Hair Vitalizer 4 312.244 < 0.001
Amul Milk vs. Amul Butter 4 342.581 < 0.001
Boroline Cream vs. Boroline Suthal 4 216.950 < 0.001
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Research Journal of Humanities and Social Sciences. 10(3): July- September, 2019
Table 4 shows how the consumers of Ahmedabad think the purchase of follow-up brand. All variables are not
that the aforementioned FMCG products are similar to independent of each other, P-value shows < 0.001. The
their parent brands. In most cases, you think that the variables are closely related because it was observed in
existence of similarities between parents and extended the value determined in Cramer's v.
brand products is calculated at P-value < 0.001 is
Important. If the 11 FMCG parent brands and their extended brands
cross the parent brand variable "reputation", which will
Therefore, Image similarity between Parent Brand and influence consumers to purchase the follow-up brand,
Extended Brand is very important and proved to be the following results will result (table 6)
significant (First Hypothesis).
Interpretation:
Hypothesis Testing: H2 The reputation of the mother brand has influenced the
A summary of the analysis of Cross-Tabulations and respondents to buy follow-up brand. Ten of the FMCG
Chi-square-test for the independence of attributes and products with the exception of pond's, as shown in Table
Cramer's v to measure the degree of association is given 6 above, show that the reputation of the mother brand
in table 5. It was found that in all 1, 2, 3, 4, 5 cases makes them to buy their extended products, P-value <
indicated below, RUF influenced the Brand's loyal 0.05 (except pond's, p-value < 0.095). This suggests that
consumers of Ahmedabad to buy mother Brand extended the reputation of the FMCG parent brands affects
Product. The consumers of Ahmedabad, who think consumers to buy their extended products. therefore, It
similarity and fit between parents and extended brands, can be concluded that "the call of the mother brand"
are important to buy also advanced products because of affects consumers to buy extended product (second
the reputation of the mother Brand. The reputation of the hypothesis).
mother brand is important for safety and security and for
Table 5
Cross Tabulation Chi-Square Value df p-value Cramer' V
1. Do you think reputation of the parent brand influences the decision to buy follow up 245.08 3 <0.001 0.374
brand? * Do you always buy branded products?
2. Do you think reputation of the parent brand influences the decision to buy follow up 347.38 2 <0.001 0.488
brand? * Are you a loyal customer for the Branded products you buy?
3. Do you think reputation of the parent brand influences the decision to buy follow up 273.33 1 <0.001 0.408
brand? * Do you think similarity between Parent Brand and Extended Brand is important?
4. Do you think reputation of the parent brand influences the decision to buy follow up 341.93 1 <0.001 0.482
brand? * Is it safety and security that drives you to buy known/ reputed brand?
5. Do you think reputation of the parent brand influences the decision to buy follow up 245.22 3 <0.001 0.374
brand? * Had the follow up brand being known differently than the mother brand then also
reputation of the parent brand influences you to buy that?
Table 6
Parent Brand and Extended Brand df Pearson's Chi-Square
Value p-value
Maggie Noodle vs. Maggie Sauce 4 25.664 0.004
Lifebuoy Soap vs. Lifebuoy Hand Wash 5 388.75 0.001
Dettol Antiseptic vs. Dettol Soap 4 24.322 0.006
Pond's Cream vs. Pond's Powder 4 17.974 0.095
Knorr Soup vs. Knorr Soupy Noodles 4 396.827 0.001
Dove Soap vs. Dove Shampoo 4 26.568 0.002
Lux Soap vs. Lux Body Gel 4 365.794 0.001
Vivel Soap vs. Vivel Ultrapro Shampoo 4 286.618 0.001
Keo-Karpin Hair Oil vs. Keo-Karpin Hair Vitalizer 4 50.832 0.001
Amul Milk vs. Amul Butter 4 256.429 0.001
Boroline Cream vs. Boroline Suthal 4 24.759 0.005
Hypothesis Testing: H3
Table 7
Cross Tabulation Chi-Square Value df p-Value Cramer' V
1. Is it safety and security that drives you to buy a known and reputed brand? * 249.9 3 <0.001 0.38
Do you always buy branded products?
2. Is it safety and security that drives you to buy a known and reputed brand? * 207.56 1 <0.001 0.307
Do you purchase follow up (extended) brands?
3. Is it safety and security that drives you to buy a known and reputed brand? * 341.92 1 <0.001 0.482
Do you think reputation of the parent brand influences the decision to buy follow
up brand?
4. Is it safety and security that drives you to buy known/ reputed brand? * When 211.98 2 <0.001 0.282
you see or hear of an extended brand of a parent brand do you always try it out?
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Research Journal of Humanities and Social Sciences. 10(3): July- September, 2019
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come to Ahmedabad for jobs or other purposes, but
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