Brand Failures-When do Good Brands do Bad " (A Case Study of Classic Example of Brand Failure:Pepsi Cafe Chino)

Pepsi was first introduced as "Brad's Drink" in New Bern, North Carolina, United States, in 1898 by Caleb Bradham, who made it at his home where the drink was sold. It was later labeled Pepsi Cola, named after the digestive enzyme pepsin and kola nuts used in the recipe. Pepsi's branding for many years failed to give the product a stand-alone identity and introduced many extensions. Successful brand line extensions are not entirely new products; they are simply new branches on the main plant. In order to optimize the power of the overall brand, line extensions have to make sense, be part of a long-term plan and reflect the core images and message of the brand. The present study empirically tests the factors which are responsible for brand failure in emerging markets by analyzing the example of Pepsi café Chino. The basic aim of this piece of research is to understand the way consumers evaluate the reasons as to why brands fail and seeks to make an attempt to learn where the main threats lie for brand failures. After all, we learn more from failure than from success. Emerging Indian market has witnessed failures varying from low magnitude to very high magnitude, however not much research has been done in this area. The present study empirically tests the factors which are responsible for brand failure in these emerging markets. The objectives of the present study for the Brand under study are :

To identify the factors which have led to brand failure of the brand under study.

• To assess the underlying perceptions developed by consumers in emerging markets regarding as to why brands fail.

• To compare the brand failures viz a viz ideal brand concept in terms of consumer acceptance/importance using perceptual maps.

• To formulate an optimal strategy to avoid brand mistakes and escape brand failures.

The following hypothesis has been laid down as Null Form:

- H0 (I) There is a significant relationship between brand line extensions and brand failures.

- H0 (II) There is a significant difference between the perception of the companies and customers regarding the brand line extension products.

The total sample size of this survey was 1450. A stratified random sampling method was used for this study. Field interviews were conducted in the four cities with a proper self administered questionnaire. Each city was divided into our different regions-north, south, east and west. The total sample was distributed among each region of the three selected cities.The data was analysis was done through Descriptive Statistics, Aggregate Statistics, Factor Analysis,KMO And Bartlett's Test of Sphericity, conjoint analysis, cluster analysis ,MDS, Perceptual mapping, factor analysis etc for developing relevant and useful influences for achieving the objectives of the study and were used through SPSS.some of the main implications:

• Brands to be developed in emerging economies should concentrate on three major factors which include Positioning factor, Communication factor and Expectation factor.

• Brands developed in emerging economies should be differentiated products and consumers should perceive it.

• The net combined sales of the established product and the line extension product be greater than sales of the established product alone.

• In order to avoid brand failures and have acceptance of the brand extensions, companies should have well planned market entry strategy.

• It is strongly suggested that companies should develop and generate deep consumer insight with regard to their brands. This can be achieved by conducting in depth individual interviews with consumers before launch of extension products.

• It is also suggested that proper promotional plans should be followed by the companies for launch of product extensions.

• The companies' should try to make their consumers well informed about their policies about any change in the products.

• The ultimate aim of the company should be to save the image of the parent brand.