The impact of brand extension strategy on liqour sales performance: The case of Delta beverages’ lagers northen division (2012 – 2014)

Abstract

Literature indicates that brand extension is a growth strategy employed by organisations in an attempt to enter new products categories, revitalise a brand, and improve brand visibility. It is further stated that brand extension can block off competition and in general improve the profitability of an organisation. However, this literature is largely restricted to experiences in other parts of the world. The purpose of this research was, therefore, an attempt to fill the research gap by investigating the impact of brand extension strategy on the sales performance of a Zimbabwean organisation. The research information and its application, based on a single case study design of Delta Beverages, were targeted at benefiting the corporate world, the country and the academic community. Empirical data was obtained by means of face-to-face interviews conducted with sales and brand managers and focus group discussions conducted with beer consumers. Semi-structured questions were used to gather information from the respondents. A qualitative research philosophy was employed and the data collected was analysed through data displays in the form of content analytic summary tables. The study concluded that the success of brand extension was limited at Delta Beverages due to lack of proper market research, poor product quality, unfavourable beliefs and attitudes held by consumers, negative consumer perceptions and competition. In light of these findings, it is recommended that the organisation: conduct market research prior to introducing any new products; improve and maintain quality; develop good relations with interested parties; collect market data; continue competing in the market.