Effect of Brand Extension Strategies on the Brand Image Among Commercial Banks in Kenya

Abstract

In the present day market, there is need for a firm to have a clear and well thought-out brand strategy that will enable consumers to clearly encode their functional and emotional position in their minds with the resulting enabling the consumers to differentiate between the available different brands. Brand extension is one of the effective branding strategies and involves using established franchise to a different product class. Consequently, the research sought to establish the effect of brand extension strategies on the brand image among Commercial Banks in Kenya. The research design was a census survey whereby the population of the study consisted of all the 42 commercial banks operating in Kenya. The study used primary data which was collected through a self-administered questionnaires and the data collected was analyzed by the use of mean and standard deviations while presentations was presented using tables, pie charts and percentages. The study established that the commercial banks image is as result of products have a high quality, the brand provides good value for money, personality that distinguish itself from competitors’ brands, reason to buy the brand instead of others, it does not disappoint its customers, it is very consolidated in the market, have a clear impression of the type of people who consume the product. A high fit on product extensions helps consumers remember parent brand associations for non-dominant brands and that the fewer the number of product categories with which the core brand is associated, the greater the impact of fit and perceived ability of the firm to make brand extension. In conclusion therefore, the attitude toward brand extension, brand loyalty, image fit and final brand image are among the factors are the factors being influenced by initial brand image. Consequently, it is recommended that when brand managers are launching new products, it is advisable that they employ communication campaigns emphasising the brand name more than the products being launched. A possible limitation of the study is the selection of low involvement, low risk, low complexity goods and service categories, to gain high brand familiarity among potential respondents