The Impact of Brand Extension Strategy on the Brand Equity of Fast Moving Consumer Goods (FMCG) in Egypt

Abstract

Purpose:ThisStudy the brand extension in FMCG (fast moving consumers goods) focuses on Food and Beverages sector in Egypt analyzes the factors consisting Brand extension strategy, Identify factors that enable enhanced brand equity through brand extension, Measures the effects of the brand extension strategy on brand equity.The empirical study investigate the impact of the three important factors constitute Brand Extension on Consumer-Based Brand Equity as the dependent variable but it will be measured using three factors which are perceived quality, Brand Loyalty, and Brand Association, and also test the relationships between the factors constituting Brand Extension with the three factors constituting Brand Equity. Methodology/Approach: The research employed questionnaire for sample constitute 415 Egyptian consumer to investigate the impact brand extension strategy on brand equity , testing hypothesis by applying both Correlation Spearman between brand extension strategy, brand equity  and Multiple Regression analysis to find the effect independent variable (brand extension: Similarity, Brand reputation& Consumer innovativeness, Brand familiarity), on dependent variable (brand equity). Findings: The results reveal thatthere is positive strong relationship between brand extension and consumer based brand equity amongst Fast Moving Consumer Goods (FMCG) in Egypt. Brand familiarity, brand image/ consumer innovativeness excluding similarity, have a significant effect on the brand equity.Research limitations/implications: As the study is conducted only within one industry there is a risk that the results may represent industry-specific factors that are not representative of all consumer markets. The findings have practical application and are relevant for marketing managers and brand managers. Originality/value: Detailed insights and key lessons from the field with regards to how brand extension affects brand equity should be conceptualized and measured are offered.

Keywords: Brand Extension, Brand Equity, Similarity, Reputation of parent brand & Consumer Innovativeness, Brand familiarity, Perceived quality,Brand loyalty Brand association.