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DRIVERS OF BRAND EXTENSIONS SUCCESS
DR. K. SHYAMA SUNDAR*; B.JEYA PRABHA**
*Director,
Mohamed Sathak College of Arts and Science,
Chennai.
*Assistant Professor,
Department of Management Studies,
Jaya Arts and Science College, Chennai.
_______________________________________________________________________________
ABSTRACT
The brand extension involves using an existing brand name to launch a product in a
different category. It is otherwise known as category extension. Here brand name is
constant whereas product category is a variable. The new product category needs to be
different from the category presently served by brand. Extending the brand beyond the
parent product category is profitable because the products that are already known and
recognized in the market needs little introductory expenses. But the success rates of such
extensions are very less. Therefore the potential determinants of success like core value of
parent brand, similarity fit, quality of extended products and brand reputation becomes
very important focus of study. This paper aims to bring out the factors responsible for the
success of Dettol brand extensions.
KEYWORDS: Parent brand, core value, similarity fit, brand reputation.
_________________________________________________________________________
1.1 INTRODUCTION
New products are launched in the market with an objective to attract more and more
customers and thereby, increase market share. With increasing competition, customers are
being provided with various options. Successful organizations all over the world recognize
the importance of new product launches as a means of organic growth and as a means to
differentiate themselves from others. At the same time, it must be remembered that it is not
an easy task to create winning products in an increasingly competitive environment.
Considering the high failure rate of new products, launching a new product is a risky
proposition (Panwar and Bapat, 2007). Under this circumstance brand extension might
receive success if consumers accept the extended brand product category.
“Brand extension is using the leverage of a well known brand name in one category to
launch a new product in a different category.” Brand extension is a marketing strategy in
which a firm that markets a product with a well-developed image uses the same brand
name but in a different product category. Brands use this as a strategy to increase and
leverage equity. A successful brand helps a company enter new product categories more
easily.
1.2 BRAND EXTENSION BENEFITS
1. Brand extensions let a marketer take a brand with well-known quality perceptions
and associations and put it on a brand in a new category.
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2. Consumers who favorably evaluate a parent brand are more willing to try and
adopt the brand extension than an unfamiliar brand in the same category.
3. A brand extension helps to identify logical new product possibilities.
4. It enables a company to enter new categories at significantly lower cost.
5. It reduces the risk of failure since the brand enjoys already established awareness
and trust.
6. It creates a positive synergistic effect with the efficiencies of umbrella branding
and advertising.
7. Brand extensions can also help consumers understand the core meaning of the
brand name.
8. It reinforces the consumers‟ perceptions of the parent brand name.
1.3 MAIN REQUIREMENTS FOR SUCCESS OF BRAND EXTENSION
The following basic requirements covering the parent brand and the extensions must be
met for brand extension to be successful:
a) Extension should be in the brands area of expertise so that there is scope for leverage.
b) Benefit Transfer: The users of extended product will expect the same kind of
gratification as they have received from the parent brand. For example, the users of Dettol
soap will expect the same kind of gratification as they have received from the Dettol
antiseptic lotion.
c) There must be consistency between the parent brand and the extensions in customers‟
perception.
1.4 FACTORS RESPONSIBLE FOR SUCCESS AND FAILURE OF A
EXTENSION OF A PRODUCT
i. Characteristics of the Parent Brand
Dettol‟s fragrant bath soap was a failure. The consumer associated Dettol and its
„antiseptic‟ smell with cleanliness and being germ-free and when this was missing
from the newly launched soap, they did not accept it.
ii. Experience with the Parent Brand
Being positioned as hygiene product, the consumers expect the same experience
from the extensions.
iii. Characteristics of Extension Product
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The quality and uniqueness of the extended products leads to success.
iv. Relationship between parent brand and extension product
There should be fit between parent brand and extension product, kind of
information which is extended by the parent brand.
v. Characteristics of the firm
If the company has good reputation and strong marketing competence, the chances
of success are more.
2.1 ABOUT THE DETTOL COMPANY
Reckitt Benckiser (India) Limited (RBIL), formerly known as Reckitt & Colman (India)
Ltd is one of the fastest growing consumer goods companies in South Asia. It has major
presence in home and personal care, surface care, fabric care, pest control and healthcare.
Dettol is an iconic brand of Reckitt Benckiser launched in 1933 in India. Dettol as a brand
has immense trust and loyalty from the consumers. Since the 1930s when Dettol was
introduced in India, it has occupied a distinct position in the mind of its consumers. To
achieve fast growth and leverage the strong brand equity of Dettol, the company rolled out
a number of brand extensions. When its competitors like HUL (Lifebuoy and Hamam)
have been losing their market share, Dettol has managed to maintain a steady growth
amidst the competition. This can be mainly attributed to its focused brand positioning of
germ protection. Smart strategic moves involve its stable pricing, well thought brand
extensions and accessibility through smaller packs. The brand‟s endorsement from the
Indian Medical Association has only added to their advantage.
2.2 ABOUT DETTOL ANTISEPTIC LIQUID
Dettol antiseptic liquid is a product, which has many uses for protecting against germs. It
is a amour gold color which attracts the customer. It has a remember able smell. It gives a
white foaming effect when put in water. It is used with mopping water to disinfect floors
completely. It is used in washing laundry to disinfect clothes. It is essential for first aid and
personal care uses. It is available in a wide range of sizes from 50 ml to 5 Litre.
2.3 DETTOL TARGETS RS 1000 CR WITH EXTENSIONS
Dettol has successfully extended to soaps, hand washes, floor cleaner and shaving cream,
too. The packaging of all its products is distinct in their own way. The green and white
colours and the sword have become symbols for fighting germs and infections, reinforcing
the brand‟s positioning as a bodyguard which protects people from the unhygienic world
outside.
Dettol Antiseptic Liquid in its personal care segment has been extended in the following
categories:
Soaps
Liquid Hand wash
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Body Wash
Shaving Cream
Medicated Plaster
Surface cleanser
Soaps, launched in 1981, have been the biggest growth driver accounting for around 75 per
cent of the total revenue. Dettol bar soap has got 4.9% market share and four variants in
the market are available nationally - Dettol Original, Dettol Skincare, and Dettol Fresh. Its
competitors are Lux, Savlon, Lifebuoy and Santoor in the market.
Soaps have seen a growth of 8 to 9 percent in value and 2 to 3 percent in volumes in a
Rs.7,500 Crore market that is growing.
The health platform has worked in other brand extensions as well. For example, liquid
hands wash. Despite retailing at a higher price than competitors such as Fem and Lifebuoy,
Dettol has maintained a lead in this segment with a 60 percent market share in the Rs 100
Crore market. It is available in three variants in a wide range of sizes from 250 ml to 1
Litre. The refill pouches of 200 ml are also available. Fem, Lifebuoy, Palmolive, Santoor,
Savlon are its competitors.
In shaving cream, it has 30 percent share in a Rs.200 Crore market. Similarly, the shaving
cream market was small (about Rs 50 crore at the time), but Dettol had strong compulsions
to get into that category. A study commissioned by Reckitt in 1996 revealed that about 40
per cent of regular shavers used some kind of antiseptic lotion after shaving, and 30 per
cent used Dettol liquid. The same study also showed that those who used Dettol didn't feel
the need to use any after-shave lotion. Moreover, the average frequency of purchase of
Dettol liquid was once every 10 months. That sent Reckitt looking for a product extension
that could satisfy the same need and be picked up more often. Shaving creams and gels are
part-utility and part-cosmetic products, and Dettol's two-in-one proposition didn't address
the latter need at all.
Dettol Body wash, offers Dettol's trusted protection in a new, modern format. It has got
4% of market share and its market value is 16 Crores. Lux body wash, Dove and
Palmolive are its competitors.
Dettol Wash proof Medicated Plaster provides antiseptic protection to broken skin. Its
non-stick pad gives additional comfort and does not stick to the wound. This special skin
colour band blends with your skin and does not peel in water. It is proven to be safe and
provides expert protection against germs.
The Dettol surface cleanser is said to safely kill harmful bacteria such as Salmonella,
Listeria and E-Coli.
3.1 NEED FOR THE STUDY:
The Antiseptic liquid market in India is estimated at Rs. 120 Crores in 2008. The market is
dominated by Dettol Antiseptic Liquid, which has close to 85% share. Johnson &
Johnson‟s Savlon is the other significant player with a market share of 13%. A few years
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back, this market saw introduction of Suthol brand antiseptic liquid from G.D. Pharma
(makers of Boroline). Antiseptic Liquid is a well penetrated market and is sold in over 16
Lakhs outlets in the country. So the demand is more with a larger market share. The
brand‟s revenues were pegged at Rs.900 Crore in July 2009, according to AC Nielsen data.
Dettol, the 76-year old iconic brand from Reckitt Benckiser, is well on its way to
achieving a turnover of Rs 1,000 Crore with its brand extensions. Sometimes the
unsuccessful brand extensions create undesirable associations, which put the company at a
serious risk (Aaker 1990: Lane and Jacobson 1995). The more products a company
markets under one umbrella brand, the higher the risk that if a disaster occurs to one of
them, the effect will spill over to the rest (Sullivan 1990). Opportunities to create a new
brand are also foregone (Aaker 1990). Therefore the company needs to understand the
significance of the factors determining the success of brand extensions to develop a right
brand extensions strategy.
3.2 OBJECTIVES
a) To examine the customer‟s awareness on brand extensions of Dettol.
b) To analyze the factors determining the success of brand extensions.
c) To examine the effectiveness of advertisement for the success of brand extensions.
3.2 RESEARCH DESIGN
The study covers both the primary and secondary data. Descriptive research design is most
suitable. The primary data was collected by interview method by using a structured
questionnaire. For the purpose of the study, the data has been collected in Chennai city.
100 respondents were selected for the study as sample using convenience sampling. The
secondary data was collected from the published records, journals, magazines and web
portals. The primary data was collected by administrating questionnaire cum interview
schedules to consumers.
Sampling unit : Users and non-users of Dettol products in Chennai city.
Sample size : 100
Sampling design : Non-probability convenience sampling
The collected data was analyzed by using the tools Simple percentage analysis and chi-
square.
3.3 LIMITATIONS OF THE STUDY
The study was restricted to certain areas of Chennai due to time and cost constraints and
hence the findings cannot be extrapolated for other cities or regions. There may be changes
in the environment in the future which in turn may influence consumer behaviour.
4. DATA ANALYSIS
4.1 DEMOGRAPHIC PROFILE OF RESPONDENTS
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5
10
24
26
24
16
AGE GROUP
16 – 20
21-25
26-30
5050
GENDER
Male
Female
0 0
10
30
60
0
EDUCATION LEVEL
Primary School
Middle School
High School
Graduation
52
0
20
28
OCCUPATION
Private
Government
Business
Others
20
2654
0
INCOME LEVEL
2L-3L
3L – 4L
4L-5L
Above 5L
25
75
FAMILY TYPE
Joint
Nuclear
38
62
MARITAL STATUS
Married
Unmarried
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The respondents fall under age group 16- above 35 years of both male and female.
Majority are working in private organisation and married.
From the above Pie Diagram it can be inferred that Dettol is the market leader and it is
mostly associated with hygiene as positioned by the company.
From the above Pie Diagram it can be inferred that we clearly see that the Dettol hand
wash and soap are the clear winners with the customers having more awareness.
62
28
010
MARKET SHARE OF
DETTOL
Dettol
Savlon
Suthol
None 87
08 5
BRAND ASSOCIATION
Hygiene
Cosmetic
Masculine
All
95
5
AWARENESS LEVEL OF
DETTOL SOAP
AWARE
UNAWARE
95
5
AWARENESS LEVEL OF
DETTOL HAND WASH
AWARE
UNAWARE
70
30
AWARENESS LEVEL OF
DETTOL BODY WASH
AWARE
UNAWARE45
55
AWARENESS LEVEL OF
DETTOL SHAVING
CREAM
AWARE
UNAWARE
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However other products such as plaster (adhesive bandage), body wash, shaving cream
and surface cleaner do not capture a share of the consumers mind to that good extent.
From the above Diagram it can be inferred that we clearly see that Television
advertisement plays very important role in creating awareness.
4.2 CONSUMER ATTITUDE TOWARDS DETTOL BRAND
From the above Diagram it can be inferred that overall consumer attitude in terms of
likability, fit, quality, positioning, willingness to purchase and value for money is positive
towards Dettol brand.
43
57
AWARENESS LEVEL OF
DETTOL PLASTER
AWARE
UNAWARE
43
75
AWARENESS LEVEL OF
DETTOL SURFACE
CLEANER
AWARE
UNAWARE
0 20 40 60 80
Dettol SoapDettol Liquid Hand wash
Dettol Body WashDettol Shaving Cream
Dettol Medicated PlasterDettol Surface cleanser
AWARENESS THROUGH TELEVISION
AWARENESS THROUGH TELEVISION
01020304050607080
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
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4.3 CONSUMER ATTITUDE TOWARDS DETTOL SOAP
From the above Diagram it can be inferred that overall consumer attitude in terms of
similarity fit, association, relevancy, quality, value addtion is positive towards extended
product Dettol soap.
4.4 CONSUMER ATTITUDE TOWARDS DETTOL HADN WASH
From the above Diagram it can be inferred that overall consumer attitude in terms of
similarity fit, association, relevancy, quality, value addtion is positive towards extended
product Dettol hand wash.
0
10
20
30
40
50
60
70
80
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
010203040506070
The e
xten
sion fi
ts w
ith th
...
The e
xten
sion fi
ts cons
u...
The e
xten
sion is
releva
nt ...
Exte
nsions
give
value
add...
The b
rand e
xtens
ions a
dd...
The o
vera
ll qual
ity of b
ra..
I am
like
ly to
try bra
nd e
x...
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
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4.5 CONSUMER ATTITUDE TOWARDS DETTOL BODY WASH
From the above Diagram it can be inferred that overall consumer attitude in terms of
similarity fit, association, relevancy, quality, value addtion is positive towards extended
product Dettol body wash.
4.6 CONSUM ER ATTITUDE TOWARDS DETTOL PLASTER
From the above Diagram it can be inferred that majority consumer attitude in terms of
similarity fit, association, relevancy, quality, value addtion is positive towards extended
product Dettol plaster.
0
10
20
30
40
50
60
The
extension fits
with the core
values of the
parent
brand.
The
extension fits
consumer
associations
with the
parent
brand.
The
extension is
relevant with
the
consumers.
Extensions
give value
addition over
competitors’
brand.
The brand
extensions
add value to
the parent
brand.
The overall
quality of
brand
extensions is
good.
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
0
10
20
30
40
50
60
The
extension fits
with the core
values of the
parent
brand.
The
extension fits
consumer
associations
with the
parent
brand.
The
extension is
relevant with
the
consumers.
Extensions
give value
addition over
competitors’
brand.
The brand
extensions
add value to
the parent
brand.
The overall
quality of
brand
extensions is
good.
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
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4.7 CONSUMER ATTITUDE TOWARDS DETTOL SHAVING CREAM
From the above Diagram it can be inferred that majority consumer attitude in terms of
similarity fit, association, relevancy, quality, value addtion is positive towards extended
product Dettol shaving cream.
4.8 CONSUM ER ATTITUDE TOWARDS DETTOL SURFACE CLEANER
From the above Diagram it can be inferred that majority consumer attitude in terms of
similarity fit, association, relevancy, quality, value addtion is positive towards extended
product Dettol shaving cream.
0
10
20
30
40
50
60
The
extension fits
with the core
values of the
parent
brand.
The
extension fits
consumer
associations
with the
parent
brand.
The
extension is
relevant with
the
consumers.
Extensions
give value
addition over
competitors’
brand.
The brand
extensions
add value to
the parent
brand.
The overall
quality of
brand
extensions is
good.
I am likely to
try brand
extensions in
future.
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
0
20
40
60
80
100
The ex
tensio
n fits
with
th...
The ex
tensio
n fits
cons
u...
The ex
tensio
n is re
levan
t ...
Exte
nsions
give
valu
e add...
The br
and ex
tens
ions a
dd...
The ov
erall q
uality
of b
ra..
STRONGLY DISAGREE
DISAGREE
NEUTRAL
AGREE
STRONGLY AGREE
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4.9 CONSUMER ATTITUDE TOWARDS ADVERTISEMENT
Majority consumers strongly agree that advertisment enhances brand awareness, brand
image, differentiate brands and brings emotional attachment of consumers.
5. FINDINGS
1. The respondents fall under age group 16 above 35 years of both male and female
and majority are working in private organisation and are married.
2. Dettol antiseptic liquid is the market leader and it is mostly associated with hygiene
by the consumers as positioned by the company.
3. Dettol hand wash and soap are the clear winners with the customers having more
awareness. However other products such as plaster (adhesive bandage), body wash,
shaving cream and surface cleaner do not capture a share of the consumers mind to
that good extent.
4. Television advertisement plays very important role in creating awareness.
5. The overall consumer attitude in terms of likability, fit, quality, positioning,
willingness to purchase and value for money is positive towards Dettol brand.
6. The overall consumer attitude in terms of similarity fit, association, relevancy,
quality, value addtion is positive towards extended product Dettol soap, Dettol
hand wash and body wash.
7. The majority consumer attitude in terms of similarity fit, association, relevancy,
quality, value addtion is positive towards extended product plaster, Dettol shaving
cream and Dettol surface cleaner. However, some of the consumers show negative
attitude towards these products.
0
10
20
30
40
50
60
70
Enhance the
brand
awareness
Increases the
sales
Enhances the
brand image
Helps to
differentiate
brands
Provides
market
information of
brand
extension
Enhances
product
category
familiarity
Increases
emotional
attachment of
consumers
STRONGLY AGREE
AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
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8. Majority consumers strongly agree that advertisment enhances brand awareness,
brand image, differentiate brands and brings emotional attachment of consumers.
6. INFERENCES AND RECOMMENDATIONS
1. From the above findings, it is understood that for success of extension consumers
associations and fit with the parent brand is very significant. It is obvious in case of
Dettol soap, hand wash and body wash. In the case of soap, where the extension
worked well, the product maintained the core value of protection against germs
without cosmetic appeal. That is why when Reckitt tried to add cosmetic appeal for
its soap by adding moisturiser in Dettol Extra, it didn't work. Dettol liquid soap
was positioned as a germ fighting antiseptic soap which was congruent with the
image of the parent brand.
2. Shaving cream and gel are part-utility and part-cosmetic products, and Dettol two-
in-one proposition did not address the latter need at all (after all, no one would
have wanted to smell of Dettol after a shave). The extended products should fit
with the core value of parent brand. At the same time the business fit also taken
into consideration for its success. In case of shaving cream, there is no business fit.
In 2000, Reckitt made the same mistake when it entered the talc market with Dettol
prickly heat talc. The size of the talcum powder market is roughly Rs.750 Crore,
but the prickly heat segment accounts for less than 15 per cent of that. Finally,
Dettol talc was phased out.
3. Although there is fit with parent brand, the reason for negative attitude of floor
cleaner is same for body use & floor cleaning use could have been unacceptable
from consumers point of view. The consumers psychology should be studied for
launching any product. The consumer survey is to be taken to know interest over
certain products.
4. Since advertisment plays important role in creating awareness and image, it should
be improved to make the consumers understand their emotional attachment with
the brand.
5. The pioneer brands are always successful as in the case of Johnson band-aid and
Dettol could not take away their market share in spite of proper image fit.
7. CONCLUSION
This study advances knowledge of brand extensions in several ways. First, we found that
perceived similarity is a crucial factor in the evaluation of services brand extensions. This
finding concurs with the hypothesis in the brand extension literature that any brand which
is extended into similar categories should receive high consumer evaluations (see, e.g.,
Aaker and Keller 1990). Second, the reputation of the parent brand is a crucial factor
influencing the likelihood of a successful brand extension.
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8. REFERENCES
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380 p.
2. Aaker, David A. and Keller, Kevin Lane (1990), “Consumer Evaluations of Brand
Extensions”, Journal of Marketing, 54, (January), pp. 27-41.
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Marketing, vol. 70, no. 2, pp. 18-34.
4. Hem, Leif E., Leslie de Chernatony, and Nina M. Iversen (2001), “Factors
Influencing Successful Brand Extensions,” working paper, Birmingham University
Business School, Birmingham,UK.
5. Nijssen, E. J. 1999, “Success factors of line extensions of fast-moving consumer
goods”,European Journal of Marketing, vol. 33, no. 5, pp. 450-469.
6. De Chernatony, L., Dall‟Olmo, R. F. and Harris, F. 1998, “Criteria to assess brand
success”,Journal of Marketing Management, vol. 14, no. 7, pp. 765-781.
7. Reddy, Srinivas K., Susan L. Holak, and Subodh Bhat (1994), “To Extend or Not
to Extend: Success Determinants of Line Extensions,” Journal of Marketing
Research, 31 (May), 243–62.
8. Baker, W., Hutchinson, J. Wesley, Moore, D. and Nedungadi, P. (1986), “Brand
Familiarity and Advertising: Effects on the Evoked Set and Brand Preferences”. In:
Advances inConsumer Research, 13. (Ed.) Lutz, R. J. (UT), Association for
Consumer Research,pp. 146-147.
9. Business Standard 7th
Sep 2009 “Dettol finds Wealth in Health” Page No 14