The present research aspires to evaluate and study the impact of brand extension on the brand image with regard to the case of Coca-Cola. In correspondence to Muge and Korkut-Altuna (2010), presently, in the current focused environment where each and every association is striving hard to hold a considerable business sector position, brand value or branding plays an integral part. A research regarding the business effectiveness was conducted by Afzal (2013) who declared that brand value is a standout amongst the most significant and valuable assets of a firm that is operating in the global market. In fact, it is determined that the key to success and development for the association is to fulfil the need of its client, in this manner, the client view of the organization’s quality is more vital, as the achievement or disappointment of an association halfway relies on its clients. A survey completed by Matarid, Youssef and Alsoud (2014) reported that successively, the image of a brand is regarded as an influencing attribute because it consistently extends the interest of the customer towards the product. This interest of the customers, as a result, increases the business sales and productivity.

In such manner, this study has been directed so as to explore the direct impact or effect of brand expansion procedure toward the brand image of Coca-Cola. However, as the proposed research study will be highlighting the effects of brands extension on brand image, the study is regarded to be of high scope. Basically, the findings of the study will be applicable to Coca-Cola which makes the scope of the research high and clear. Furthermore, aside from this, the study will give a considerable backing and assistance to advertisers with respect to the successful determination and execution of brand expansion techniques. Also, the study will benefit the policymakers of the study in terms of developing the relevant research policies and strategies. The students and future scholars will also be benefitted through this study in terms of body of knowledge relating to this area.

1.1 Statement of Problem

The evidence extracted through reviewing the background of the issue given above are summarized to form the statement of a problem for the proposed research which is as follows:

“What is the impact of brand extension strategy on brand image?”

1.2 Research Aim

For the proposed research, the author aims to explore and study the impact and influence of brand extension for the brand image of a company in order to understand the drivers of the products’ brand image.

1.3 Research Objectives

The objectives of the proposed study are given below:

To study the significance and concept of brand extension and brand image
To examine the impact of brand extension on brand image
To identify the impact of brand extension on the brand image in Coca-Cola
To provide recommendations for the management of Coca-Cola about the brand extension strategies for their brand image

1.4 Research Questions

The questions developed for the proposed research are stated below:

What is the significance and concept of brand extension and brand image?
What is the impact of brand extension on brand image?
What is the impact of brand extension on the brand image in Coca-Cola?
What are the recommendations for the management of Coca-Cola about the brand extension strategies for their brand image?

1.5 Scope

The scope of the study includes the ideas of brand image and brand extension and how these relate with each other in general and in the particular context of Coca-Cola so that customer behaviour and perception of the extended product line under the same brand could be established to form a conclusion.

2.0 Literature Review

The literature review for the proposed research is given below:

2.1 Concept of brand extension

The term brand extension refers to the stretching of the brand in order to enhance the range of choices for the customers against their needs and the demands. It is further believed that the brand augmentation is characterized as the extending technique of a firm in which the firm expands the product line through actually utilising already prevalent brand in the market (Aaker, 2011). The research completed by Anwar, Gulzar, Sohail and Akram (2011) declared that the process and procedure of brand extension related to the development of the brand in the market. In addition, it has been determined that the brand augmentation system is utilized by the organizations to influence brand value. With the research completed by Spry, Pappu and Bettina-Cornwell (2011), it has been clarified and demonstrated that the expansion and extension of the brands show the activity of the firm in which the firm uses the name of existing brand with an all-around created brand picture in its distinctive item class. Essentially, Sood and Keller (2012); Kapferer (2012) asserted that brand augmentation is extremely helpful for the organizations as it decreases the danger of disappointment of the new item on the grounds that the purchasers are as of now mindful of the brand and hence, they effortlessly get persuaded to purchase the item without the aim of testing it…

Impact of Brand Extension on Brand Image

1.0 Introduction