An empirical investigation into the practice of brand extensions: the case of fast-moving consumer goods in Kenya

Abstract

The primary objective of this study was to investigate the extent of the practice of brand extensions by fast-moving consumer goods firms in Kenya. The rationale of the study arose from the fact that tight economic conditions, need for growth, and the ever changing business environment calls for strategies that force firms (companies) to rethink their "One brand - one product" policies. Brand extensions was studied as one of the growth strategies that could assist firms to survive in a competitive business environment. To facilitate this study, the population of fast-moving consumer goods firms registered with the Kenya Association of Manufacturers was studied. The respondents gave information on benefits, reasons for and against the practice of brand extensions through a "drop-and-pick later" method kind of questionnaire. The results indicate that 96% of respondents practice brand extension strategy. The main reason for this is to enable consumers to be aware of, try the extensions, be converted and also to increase distribution, and enhance parent brand image. The results should be interpreted in consideration that all sampled firms are companies that have been in operation for a long duration.