Brands increasingly use the brand extension strategy to reduce the costs of introducing a newbrand to the market, mainly in terms of distribution and communication, by using the name ofan established brand in the introduction of new categories of products, so they can capitalizeon the symbolic meaning established by the brand. However, brand extension has a bilateraleffect and, therefore, it can have an impact on the parent brand, and not only vice versa,bringing benefits, such as increased perceived value and financial return, but also risks, likecannibalizing the parent brand sales, and/or damaging its image, depending on how it’sevaluated by the consumers. This research aimed to study the impact of Worten's recent onlinebrand extension strategy, beyond its main product category – electronics – to three distantcategories (namely pet food, childcare, and perfumery), with the introduction of WortenMarketplace. The objective of the research was, therefore, to investigate how this extension, toproduct categories distant from its core product category, influences the way in which thebrand's consumers cognitively perceive Worten brand value, assessing whether they considerthat this extension maintains, increases, or harms the brand equity of the parent brand Wortenas a whole. A mixed-scope methodology was used, which included the qualitative method -documental analysis of the brand's communication campaigns and exploratory interview withthe brand and communication manager of Worten Ibéria, António Fuzeta da Ponte; and thequantitative method - application of a questionnaire survey to Worten’s consumers, which hada significant sample of 387 respondents. Finally, a research question, that guided the presentstudy, was established: “Does the evaluation of Worten’s brand extension to the categoriesperfumery, pet food and childcare, affect the way its consumers perceive the value of the parentbrand?”. The main results obtained revealed that the brand extension under analysis has effectson the brand equity of the parent brand Worten, proving its bilateral effect, measured throughsignificant changes felt in two of the brand equity variables, namely brand awareness and brandassociations. The variations felt are divided between a more positive view and a more negativeview of the brand (compared to the initial very positive evaluation of the brand equity), whichwere directly related to the way these individuals evaluated the brand extension.
|Date of Award||10 Sep 2021|
- Universidade Católica Portuguesa
|Supervisor||Nuno Goulart Brandão (Supervisor)|
- Brand extension
- Brand equity
- Consumer behaviour
- Mestrado em Ciências da Comunicação