Factors of successful brand extensions in the FMCG industry

Abstract

FMCG companies use extensions to launch bulk of their new products. This trend is set to continue despite the growing literature which indicates that increasing number of extensions fail in the first 3 years of launch. Thus it is necessary for Brand Product Managers to understand factors of successful extensions. In this report a National Brands LTD (NBL) case study was conducted using 5 factors that were researched by Nijssen (1997), to analyse 7 extensions linked to 4 brands and that were launched in the last 3 years. Of the studied extensions, 4 have been found to have to have influence on the success of extensions. Findings of 1 factor were not conclusive. A factor that did not form part of the research propositions was also found to be key for the success of extensions.