Brand Extension for the Middle East Broadcasting Center Research Paper

Introduction

The Middle East Broadcasting Center (MBC) is going to introduce the MBC coffee shop, which will be a multi-entertainment center. The aim of this research paper is to assess the prospect of brand extension strategy for MBC

Importance of Brand Extension

To introduce a new brand is very expensive and time-consuming as well as a risky matter in modern business. The most influential factor that contributes to brand extension is the exclusion of new products from the cost of advertising while the product introduction needed huge investment and it is quite difficult to sustain a new brand to cover the cost of advertising. Thus, the most successful companies tag along with the principles of constructing a global brand to cut costs and at the same time brand extension also boost the core product or parent brand (Cameron & Karin 5). Consequently, modern business has accounted for the brand extension as an important issue.

The rationale for the research

There are many types of research about the prospect of brand extension strategy and how this strategy influences the customer to purchase the products but most of the researches only concentrates on horizontal brand extension.

Research question and objectives

• This research paper will assess the interest of people about the service of a coffee shop that provides both food and entertainment services;
• This paper will provide a financial plan with a projected capital budget, pro – forma balance sheet and income statement to assess the prospect of MBC Coffee Shop in terms of financial profit and brand equity;
• This paper will focus on the competitive advantages of the MBC coffee shop,
• This paper will assess to what extent can MBC make use of their leadership in the original business;
• This research paper will find out the potential challenges, which MBC may face when entering the new business and it will also suggest proper solutionsstrong financial arrangements to deal with these obstacles.

Literature Review

Literature of Brand Extension

Keller (32) defined brand extension as a marketing strategy of a firm that utilizes the well-developed image of the established brand name of that company to introduce in a different new product category where the new product is identified as a sequel extension. The companies apply this strategy to enhance and influence brand equity and to increase awareness of the brand that brings profitability rather than introducing a new brand for the new product category.

Aaker (25) added that the extendibility of a brand depends on the strong performance of the existing brand and how far it is associated with consumer’s perception, brand’s values as well goals. To introduce a new product is not merely a time-intensive matter but also required a huge budget to generate awareness among the customers and to endorse a product’s benefits while brand extension which preserve to reduce financial risk by means of the parent brand name to boost consumers’ insight excellence associated with the core brand equity.

Grant (3) mentioned the ‘Virgin’ the brand once started in the UK with the Sex Pistols to a recording contract now become one of the major players of Airlines Industry with new ventures outside of Britain while Virgin soft drink is a global brand, Virgin Mobile is the largest wireless virtual network operator in UK and USA. Moreover, the brand extension of Virgin has compiled with Virgin Blue – the Australian largest Airlines, Virgin Car and Bike – the most favorable choice in the market, Virgin Rail – a transportation leader and the Virgin Money online supplier of personal financial services including credit card provider. There are different categories of brand extension pointed as follows-

Horizontal Extension

The horizontal extension of brand indicates to use the existing product’s name for a completely new product within the similar product category otherwise adding a new product category to the organization while there are two categories of horizontal brand extension that varies in terms of their focal point such as line extensions and franchise extensions Keller (29).

Extension Distance

The extension distance indicates how far closer the extensions are, if the products are in the same grouping then the distance of the extensive brand from the core or parent brand is less, if the new products are from the different categories, then the extension distance is more. The economic view of brand extension from the customer’s perspective is that if the extension distance is measured less then the quality and service would be better.

Vertical Extension

The vertical extension of the brand indicates an interrelated brand introduced in a similar grouping but with diverse quality and price equilibrium where the new products can make bigger perpendicularly upper directions linking a new product with the elevated price and upper quality than the original. The vertical extension even can involve a new product of lower quality and less price from the parent brand and this type of extension may be named as a vertical downscale extension.

Brands extensions Strategy

Pitta and Lea (2) pointed out that the successful brands are the most vital assets for a company that presents the knowledge generated in the customer’s mind for a parent brand by means of its long promotional activities would be shared by the brand extension for gaining quick market entry for the new product. Thus, the new product can enjoy the facilities of product development, market research, promotion, and distribution through the existing channel while the brand extension strategy implies as –

• The third brand extension strategy is the amalgamation of the first two strategies; it may argue as a sub-brand strategy that an organization could combine with a unique brand name for instance US retailer Chain shop Wal-Mart leads its apparel business with the brand name Asada while it brand extension into the gasoline market of USA has branded as Wal-Mart.
• The second strategy involved for brand extension is the umbrella or else family brand names even the company name could be used for every product, for instance, Virgin has used the same brand name for it more than two hundred products and services.
• The primary strategy employed for individual brand names for a variety of products without an open relationship with the existing brand, suppose Unilever has employed this branding strategy with brands such as Lux, Wheel, Ponds Lipton and so on where each brand possess its own brand identity as well as expand its own brand equity. In the unlikely event of brand extension by Unilever product calamity, each brand demands adverse publicity though customer looks for the name of Unilever.

Necessity of Brand Extension

Kamal (3) mentioned that the unique aspect of contemporary marketing has faced the formation of differentiated brands while market research has been engaged in identifying and increasing the basis of brand differentiation. Keller (217) pointed out that the trademark otherwise the brand make out a product with its sources or producer but it brings even more message to the customer that carries out along with the brand extension and thus today’s business world drives to brand extension strategies to achieve huge beliefs.

Kapferer (6) added that the brands are usually extended further than their original groupings to trim down the cost and risk of getting entry in the market with category of new product while the success of brand extension totally depends on the parent brand’s awareness as well as a relationship with the extension

Aaker (73) explained that the shifting of the quality perceptions associated with the key brand extension is the same brand name is used for quite a lot of products while the parent brand’s linkages can contribute to a complex extend of brand image to the new extended product that delivers a great benefit by immediate communication and generating a salient image.

Keller (68) added that innovations facilitate the brands to stay up to date and to make obvious for an endless insist on distinguishing and responding to the profound change of customers preferences, expectations and tastes. Consequently, while the extension brand fails to carry out developments, it would be thrown at the risk of being left behind.

Dilemmas of Brand Extension

Cameron & Karin (7) argued that the prospect for a parent brand contributing to an evidently definite image upon an extension is just an assumption but in practice, it has exposed that various positively weigh up core product links serious liabilities for extensions while the negative relatives can bring trouble for an extension that leads the brand extension to be a failure.

Aaker (85) and Keller (39) have identified quite a few instances where the negative associations could be condensed through incorporating a secondary brand name while the secondary name possibly will endow with distancing and right implication with conveying a rich feeling to the brand. The potential customers would provide impressions to the extension in the framework of the extension category while they have evaluated the potential information regarding the perceptions and preferences that may give valuable assistance to management for further modifications.

Brand Extension & Customers Decision Making

Cameron & Karin (7) pointed out that the customer’s attitude headed for the parent brand has a well-built relationship with the attitude toward the extended brand while the extension has a starting point of fitting along with the parent brand and this fitting possibly will function correspondingly to the parent brand. In addition, the evidence proved that the parent brand with a prestigious image and a wider brand family would effectively extend to products that are not similar. The parent brand that is too far from the extension, consumers may face difficulties to simplifying when unpredictability is high and they may discover it complicated to correlate any dominant brand on the same category with an extremely dissimilar product grouping.

The presence of an expansion cue increases the influence on the customers of a similar category and decreases the impact of significant variation of evaluations by the customers and hence the positioning of the extension brand-appropriate with the parent brand may point out as a significant communication strategy. On the other hand, the brand extensions would have a grave effect on the parent brand when the.extensions may not well fit with the sky-scraping quality of the parent brand and consumers will deliver less positive or very negative views on the extension and simultaneously upon the parent brand.

The approach of customer’s evaluation to the brand extension has identified to affect consumer attitudes headed for the extended brand while both the expertise and consumers can affect consumer attitudes just before the parent brand through the values and perception of the consumers of a luxury brand are different and allow additional insights to develop successful facilitate successful brand extensions. (Stegemann, 5)

Brand Extension Challenges for MBC

MBC has several existing brand extensions, which are all related to the core product and services and not so far extension distance, thus all those supplementary brands fall into the category of horizontal brand extension. The proposed MBC coffee shop is far above the parent brand and the extension distance is so longer than the existing product line, thus it would be a vertical brand extension. Due to the proposed brand extension of MBC is a vertical brand extension, it has the following challenges-

• Due to the new entry to the coffee shop, MBC needs to stay relevant in a dynamic market of the Fast Food and entertainment Industry where the extension brand category is emerging.
• The parent brand of MBC needed to be stronger and gaining more market share in the existing market as the strength of the parent brand has a great influence on the success of the extension.
• MBC has the challenge of considering the portfolio strategy of fast-food firms working in the GCC and their adapting trend.
• Sometimes the failure of the extension brand seriously impacts the parent brand, MBC must be aware of this challenge.
• Creating differentiation in the new category is also a challenge for MBC while the only alternative is to go for price-dominated competition that is very essential.
• Another challenge for MBC in the extension brand is to integrate fully automated online order receiving and timely delivery of products.
• As MBC’s proposed brand used to extend vertically, the premium market is very attractive as there are most of the products have attractive profit margins, but MBC needs to have further research on the new market.

Research Methodology

General notions

The main objective of the methodology chapter is to design a method to solve the above research problems and this research paper will follow a case study and qualitative research approach instead of a quantitative method.

Focus Group

The researcher will meet with 8 to 10 youth gulf citizens to discuss the theoretical issues of brand extension strategy and the practical prospect of this strategy on MBC Coffee shop. However, the researcher will act as a group moderator to help other members of this group and share their views about the future prospect of MBC Coffee shop. However, the recommendation of the focus group will be integrated all over the paper

Secondary Research

This researcher will also apply secondary data resources to investigate the brand extension of MBC in Saudi Arabia and the GCC region. Malhotra (2009) indicated secondary data as the data that have been generated for other purposes but has relevance to the present research. Here the researcher utilized an abundant supply of secondary data such as annual reports of the companies, several journal articles, formerly published research papers, e-books, management journal and management books, relevant research books.

Scope and limitations of the study

Some potential scopes are –

• Huge scope to research on brand extension strategy;
• Research on the effectiveness of this strategy for MBC;
• Application of theoretical aspects

On the other hand, this research has few limitations –

• Limited time for proper research;
• Limited secondary sources about the vertical extension of MBC;
• Restriction to use questionnaire approach

Analysis

SWOT analysis MBC coffee shop

Before entering into the market, the MBC coffee shop will scrutinize all possible threats, opportunities, weaknesses, and strengths of the market as well as the company. The following figure shows the key points of SWOT –

• Strengths: following bullet points analysis the strengths of MBC coffee shop, such as-
  • Brand extension strategy: As MBC is a name of renowned TV channel and has strong brand awareness, so it will enjoy the advantage of the brand name;
  • Financial capability: MBC has a strong financial arrangements to start this business but it will take a loan from the bank to reduce tax and it will invest more if required;
  • Experience: skilled and experienced management team is the strongest point of MBC Coffee shop and they will recruit expert chefs, waiters, accountants, managers and other employees;
  • Location: It will get a wide range of customers as Dubai is one of the seven emirates of the UAE where many people come from a different culture (Dubai is the center of worldwide tourists and business visitors) who are open-minded. In addition,
  • Promotion: initially, it has to spend small funds for advertising as it has a brand name and own media support;
  • A diversified product line or market segment will help to attract more customers;
  • Supply chain management, mechanism of producing raw materials, leadership, motivation power, decision-making power, organization structure, honesty, etc. are the strong points for MBC Coffee Shop.
• Weaknesses: The MBC Coffee Shop will have a number of weak points-
  • Lack of Corporate Social Responsibilities: it may lose conscious customers as it will serve Shisha (Hubble-bubble or water pipe), which will increase drug users;
  • Health concern: People are more cautious about their health, so they reduce consumption of oily foods and other menus which are bad for health like- some foods increase blood pressure, diabetics or cause a Heart attack;
  • Hand-made food: Many regular customers change their food habits.
• Opportunities: The MBC Coffee Shop has huge opportunities, for instance –
  • Young generation: Nowadays, people lead a busy life, so, the trend of the young generation is to go to the coffee shop to enjoy their life. In this circumstance, it will include numerous provisions for this target group, which absolutely increase the sales volume;
  • Increase Interest: As MBC will apply a brand extension strategy, the viewers of this TV channel will be interested in this product. Moreover, the viewers who lived in London or another area will be interested in the shop, so, it will help to expand the business outside of Dubai as well as UAE;
  • Home delivery: For the convenience of the customers, MBC will introduce an online order system and home delivery option within a short period at free of cost;
  • Future prospect: in spite of the recession, the restaurant industry is also experiencing growth;
  • Franchises: It has the opportunity to sell franchises to expand its business outside of Dubai.
• Threats: MBC Coffee Shop has also identified some threats for business and these are –
  • Religious background: According to the UAE constitution, Islam is the official religion, as a result, MBC has to be cautious to select its food menu. In addition, MBC may lose customers of other religion and tourists customers, which also reduce the total volume of sales profit;
  • Foreign Coffee Shop: one of the threats is that foreign companies and some local Coffee shop have already developed their brand image
  • Recession: the global financial crisis may act as a major threat for expanding the business of MBC Coffee shop;
  • Similar Coffee Shop: though MBC coffee shop will offer diversified products but still there is a huge number of similar and synthetic food restaurants, which can apply similar strategies;
  • Rules and regulation: the government of UAE restricts the restaurant to offer few items;
  • A number of shops: MBC coffee shop starts with only one store whereas Starbucks has more than 16,000 shops in 35 countries.
  • Starbucks has more than 16,000 shops in 35 countries.

Prospect of Coffee shop in UAE

It is essential to have a clear idea about the UAE market as MBC Coffee Shop will start its operation from Dubai than other cities in UAE

In 2004, the inhabitants of UAE were 4.3 million with a growth rate of 1.6% per year, while Abu Dhabi, as the most colonized area, had an overall population of 1.4 million. According to statistics of 2005, is composed of 96% Muslims, there were 1.2 million inhabitants in Dubai, 570000 in Sharjah, and 445000 in other regions. Abu Dhabi, with the largest population, is the most outstanding marketplace for fast food chains.

Many people from different parts of the world live in UAE. As an export-based country, it has a per capita income of $44000, whereas, the fast-food industry adds up 17.2% to its GDP. UAE populace is showing a growing interest in fast food chains of other countries that serves both tasty and healthy foodstuffs, and in past few years, there was an extensive expansion of 25% of these international franchises, making the growth rate of the local restaurants low. The US fast food stores have a leading role in this realm. There are more than 90% of non-conventional stores in UAE and amid 3100 cafés, 94% have a profitable business. Consequently, UAE is facing a huge augmentation of international franchising businesses.

Financial plan

MBC coffee shop should design a financial plan to assess the prospect of the business and estimate the target profit or revenue. However, MBC decides to open this coffee shop with a large budget (about $1600000), and MBC would like to invest 60% of the total capital and Al Rajhi Banking & Investment Corporation will supply the rest 40% of capital at a 2% interest rate within 5 years.

Additional features

Projected capital budgeting for MBC coffee shop.

Pro- forma income statement for MBC coffee shop.

Pro- forma balance sheet for MBC coffee shop

For the year 2010:

For the year 2011:

For the year 2011:

Break-even analysis

From the pro- format income statement for the three years, it can be said that at the end of the first year of its operation, the MBC coffee shop will reach a break-even point where projected revenue will be $104748, and costs will be $1047948. However, the following figure shows the break-even point of the MBC Coffee Shop –

Competitive situation

Rivalry among competing firms

The product line of MBC will be quite diversified, therefore, it will not have any direct competitors as there are very few businesses in the Middle East offering so many things under one roof. However, the rivalry particularly in the fast food and coffee shop industry is extreme, as there are several US franchises working in a number of Dubai and Saudi cities, such as McDonald’s, Pizza Hut, Subway, Dunkin’ Donuts, as well as some renowned European and North American coffee stores. Many MBC coffee shop outlets in Abu Dhabi might also be surrounded by some local businesses, such as Cafe Cappuccino, Cafe Moca, Cappuccino’s Royale, Indian coffee House and Restaurant, etc; in Jeddah, stores like Al-Baik fried chicken, BAAK Pizza, Herfy Burger, House of Donuts, etc are present.

Bargaining power of suppliers

In the coffee industry, the suppliers have very low bargaining power as above 70 nations throughout the globe cultivate coffee from which about 20 provinces of Asia, Africa and Latin America meet approximately ninety % of the entire world’s demand.

Vietnam, India, and Indonesia are amongst the greatest coffee-bean manufacturers from Asia; the rest 17 Asian countries are cultivating the finest coffee beans supplying raw material all over the world including the Middle East. In the fast-food industry, the larger suppliers have relatively high bargaining power, whereas, the smaller suppliers (e.g. potato growers) have low bargaining power; the crucial suppliers have brand equity and the ability to add value to fast-food stores and smaller suppliers lack brand identity but are larger in number. In the brewery industry, there are many smaller manufacturers with little bargaining power. Consequently, MBC would have abundant suppliers to select its raw materials.

The threat of substitute products

The diversified product-line of MBC will consist of all types of beverages such as Cappuccino, Brewed coffee, Steamed Chocolate, Blended IceCrema, Caramel IceCrema, Strawberry Freeze, Iced drinks, soda water, shisha, whisky, vodka, red wine, fast foods, sports zone for kids, MBC 3 channel, music and TV content, on-air studios broadcasting, etc. Therefore, though it will not have any direct substitutes, still, the mere coffee shops and fast food chains can offer substitute products of MBC. This would mean that the switching cost of the customers would be high in this sector. However, as the Middle East market is a bit conservative, alcoholic drink servers in this market are few in numbers, so the switching costs in this sector are low for customers.

Bargaining Power of the Buyers

Various companies have started their businesses in the Middle East featuring intercontinental fast foods and drinks; the presence of a huge number of alternative products has a propensity to give the purchasers numerous alternatives, making them considerably powerful in this sector. However, MBC coffee shop, as a multi-entertainment center, will offer different types of products and afford a high level of differentiation projects to distinguish itself from the rest of the players in the industry. As the products of MBC coffee shop are not targeting a niche market and looking for scrupulous consumers, it can quite effortlessly get its clients; and therefore, withholding nearly zero switching costs, the bargaining power of the purchasers will below.

Threats of new entrants

Because of extreme competition, there are many obstacles to enter and sustain in the market. However, as Middle East Broadcasting Centre is already an established Arabian TV channel, and it is diversifying into a multi-entertainment center, it will not have much problem entering and operate in this segment. In addition, capital equipment or additional machinery required to run the business will be easier for MBC to obtain. Apart from that, it would be easier for MBC to promote the multi-entertainment center in public through their TV channel in order to increase the revenue. Therefore, this entertainment center can quite effortlessly compete with the renowned fast-food chains and acquire a large market share in the near future.

Competitive advantage

• Direct competitors: The MBC Coffee Shop will have no direct competitors for its diversified and innovative product line though there are more than 3100 restaurants in UAE while 94% consists of fast- food or Coffee shops. However, it has many indirect competitors for different items, no direct competitors are the main competitive advantage for MBC Coffee Shop;
• Promotion: MBC will continue the promotional activities by its MBC 3 children channel, TV content, Musical programs, and using other ways. So, convenient promotion ideas and tools will be great advantages for the operation of MBC Coffee shop;
• Financial strength: Resources and capabilities is a major strength for MBC Coffee Shop and It will invest 60% ($ 960000) of total capital and it will generate $104748 within the first year;
• Innovative idea: the marketer of this shop has creativity to shine in the industry, such as sports zone for children will increase little customers with their parents;
• Same place: As the MBC Coffee shop will serve different services, it will get different customers, for example – some customers will come for passing time, some customers will order foods for family, a few will simply take coffee, young people come for Shisha, children will come for playing and other will come for enjoying;
• Brand extension strategy: This strategy is the main advantage of MBC Coffee Shop, as, in a fiercely competitive environment, brand extensions have become a standard approach for new product introductions to give customers a sense of familiarity and security;
• Experience of the management team: the success of the business is depending on the effectiveness of the management and the management team of MBC Coffee Shop will be responsible to maintain a good relationship with employees to achieve its target.

The 7Ps of the marketing mix

Product

The MBC Coffee Shop is planning to serve numerous delicious and nutritional food menus at a reasonable price, which will enthusiast customers to come back for enjoying such taste repeatedly, for example, it will introduce a variety of beverages (both hot and soft drinks) like –

• Hot drinks: Tea, coffee, Café Latte, Cappuccino Espresso, Brewed coffee (French Roast), etc;
• Fast food: MBC Coffee shop will offer casual foods include beef and cheese hamburger, pizza, chicken burger, and nuggets, French fry, special Thai and chicken soup, noodles, pastry cake, birthday cake, Vegetable roll, etc.
• Salad and organic food items: It will also serve organic food items and 100 types of salad, such as green & bean salad, Chinese chicken salad, fruit and vegetable salad, Special Arabic Salad, Pasta and Potato Salad, Larb, Tabouli, Taco Salad and so on;
• Additional services: It will offer numerous other products and services besides regular food items, like MBC 3 channel, music video, and TV content, on-air studios broadcasting, sports segment, etc.

Price

MBC Coffee shop will not follow a specific pricing strategy for its products and services and it is interested to fix product price by considering a segment-pricing strategy as it differentiate its product items. In addition, competitive or cost-based pricing strategies will be effective for MBC Coffee Shop as it is a new company in the market. However, it should not use Brand-pricing or penetration pricing strategies to grab immediate market share though MBC already have the brand equity in the marketplace

Place

MBC Coffee Shop will start its business with only one store in Dubai but it will expand its business operation in Abu Dhabi then Jeddah, Beirut, Cairo, Sharjah, and other cities excluding Riyadh as Riyadh is a conservative city. Initially, it will increase its number of outlets in the local market but it has a plan to be a global player

Promotion

MBC Coffee Shop will use a sales promotion strategy, for example, it will offer free gifts for Eid and Christmas, create premium customers by offering discounts, etc. besides sales promotion strategy, it has numerous plans, such as –

• At first, it will create an excellent website, which will be the main source of information for the target customers as well as for other visitors;
• However, it has already been mentioned that MBC will provide media support for promotional activities by advertisement, TV content, music and MBC 3 will help attract children, customers;
• On the other hand, advertisements on a daily or weekly newspaper, links in google, yahoo, MSN and other sites are useful promotional tools;
• To attract more customers, it will use social networking sites like Facebook, Twitter, Linkedin, etc.
• In addition, it will use all the popular TV channels for the advertisement;
• Finally, it will give 24 hours customers’ feedback

People

To MBC Coffee Shop, people are equally important factors like assets. However, the stakeholders of MBC Coffee Shop, local communities of Dubai, shop managers, chefs, waiters, accountants, employees of the marketing department and its target customers are the related people of this shop;

Process

MBC Coffee Shop will apply a 100% transparent approach in the food manufacturing process, for example, the entire procedure is visible to the consumers that mean they will view and judge the hygienic standards. In addition, MBC Coffee Shop will give the opportunity to cautious customers to visit the kitchen and check food ingredients.

Physical (evidence)

MBC Coffee Shop will concentrate on clean and gorgeous interior designing of its coffee shop, though it will have few other characteristics like –

• MBC Coffee shop will not only be attractive but also segmented according to the product line;
• It will invest large funds for interior decoration to maintain the international standards as it has intension to be the market leader in fast food or coffee industries;
• Electric heater, oven, blender machine, pressure cooker, toaster, hot pot, refrigerator, electric burner, computer, carpet, desk, vase, cookeries, etc are the essential products for MBC;
• The segmented area will attract different target groups, like sports zone for children attract kids;
• The customers of MBC Coffee will get duel benefits of having a preferred food with nice melodious music like a sophisticated coffee shop;
• MBC Coffee shop will use essential materials for the interior and exterior design of the restaurant.

Conclusion

Recommendation

• Though MBC has media support, it should use other TV channels for advertisement and other media like the internet, newspaper,s etc.
• There is no doubt that Shisha is a profitable item but MBC should have corporate social responsibility as it is harmful to health;
• It should offer a competitive price to establish the company in recessionary period;
• It should develop the activity of the R&D team for further growth;
• MBC coffee shop is committed to providing fresh food in excellent condition. So, it should not use any preservatives and it would rotate foods by a throw-away or donate to local charities;
• It should increase the budget to integrate customer relationship management solutions like- SAP, ERP software;
• MBC Coffee Shop has the prospect to offer organic foods besides regular food and drink items to gain the largest scope in this business;
• Market survey is essential to examine customers’ behavior, so, it will survey the market to know about customers choice;
• It can sponsor reality shows, offers a special package or get one buy one provision, and pay discount for the future customer;
• It should not only think about the vertical extension as it may lose customers’ confidence in the MBC brand.

Conclusion

MBC is the most powerful cable TV channel starting from Saudi Arabia to all over the GCC region with it several horizontal brand extensions. The proposed coffee shop would be a vertical brand extension for MBC, which is concerned with huge challenges for success. The most significant requirement for MBC is to become the market leader of the existing parent brand and the strength of the parent brand would contribute to the success of the extension brand of the coffee shop.

Works Cited

Aaker, David. Managing Brand Equity. London: Free Press, 1991. Print.

Cameron, Michaelle & Karin Braunsberger-Messer. Brand Extensions: Aspects of Consumer Decision Making. 2004. Web.

Kamal, S. Raj. The Shift in the Classic Brand Concept. 2003. Web.

Kapferer, Jean-Noel. The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term. London: Kogan Page, 2004. Print.

Keller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. London: Prentice Hall, 1997. Print.

Pitta, Dennis A. & Lea Prevel Katsanis. “Understanding Brand Equity for Successful Brand Extension”. Journal of Consumer Marketing, (12) 4, 1995 pp. 52-63. Web.

Stegemann, “Nicole. Unique Brand Extension Challenges for Luxury Brands”, Journal of Business & Economics Research, 4(10). 2006. Web.