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Brand Creation Vs. Acquisition In Portfolio Expansion Strategy, Randle D. Raggio, Yana Damoiseau, William C. Black
Brand Creation Vs. Acquisition In Portfolio Expansion Strategy, Randle D. Raggio, Yana Damoiseau, William C. Black
Marketing Faculty Publications
Purpose – This paper seeks to address the following question: What causes firms to choose brand creation vs brand acquisition for brand portfolio expansion?
Design/methodology/approach – A multilevel interdisciplinary conceptual model is developed with nine factors at three levels of influence: the market, firm, and brand portfolio. Using 125 brand acquisitions and creations for 22 firms between 2001 and 2007, the model is tested using logistic regression to determine which factors significantly influence brand portfolio expansion strategy and whether they encourage acquisition or creation.
Findings – Significant factors were found at the market and firm levels, with competitive intensity of …