Brand Extension Strategies for Crowne Plaza

This assignment provides a comprehensive analysis of brand extension strategies for Crowne Plaza, including the importance of branding, key factors affecting brand extension, and effective strategies for success. The questionnaire covers topics such as the role of brand extension in development, significance of brand enlargement, and challenges faced by companies during this process. It also explores the advantages of brand extension and provides recommendations for successful brand enlargement.

Research Project

Table of Contents
TITLE: ............................................................................................................................................3
CHAPTER 1: INTRODUCTION....................................................................................................4
Research Overview.....................................................................................................................4
Research background..................................................................................................................4
Purpose of Research....................................................................................................................5
Research Questions.....................................................................................................................5
Time scale...................................................................................................................................6
CHAPTER 2: LITERATURE REVIEW ........................................................................................1
Brand extension concept and its significance in growth of hotel................................................1
Ways through which brand extension can be practised in hospitality sector..............................1
Influence of brand extension on business sustainability.............................................................2
CHAPTER 3: RESEARCH METHODOLOGY ............................................................................2
Type of investigation...................................................................................................................2
Research design...........................................................................................................................2
Research approach......................................................................................................................2
Data collection method...............................................................................................................2
Data sampling..............................................................................................................................2
CHAPTER 4: DATA ANALYSIS .................................................................................................2
CHAPTER 5: CONCLUSION AND RECOMMENDATION ....................................................13
.......................................................................................................................................................14
REFERENCES .............................................................................................................................15
APPENDIX ...................................................................................................................................16

TITLE:
To assess the influence of Brand Extension on growth and success of business. A case
study on Hotel Crowne Plaza.
CHAPTER 1: INTRODUCTION
Research Overview
Brand extension is defined as vital component of marketing strategy under which a new
good or item is introduced with an existing brand name. Brand that administers height to product
in its name is referred as parent brand. In existing business environment, stiff competition takes
place in market and companies are highly concerned about improving their performance by
maintaining strong brand existence and image. One of the fundamental aspect that requires to be
considered by those organisations which provides wide variety of goods and services is Health
Safety. A vital role is played by Brand Extension in development and growth of business as it
helps in improving customer base and gaining their loyalty which ultimately creates value for
company in terms of increasing its sales (Albrecht, 2017). For this specific research work, Hotel
Crowne Plaza is selected which is a multinational chain of upscale hotels located in United
Kingdom. It forms intercontinental hotel groups part of brands which involves Holiday Inn and
Intercontinental hotels and resorts & is operates in around 52 nations with over 400 hotels. Main
motive of organisation is to strongly maintain its brand existence in market by attaining high
position. Brand extension strategy helps in increasing brand awareness regarding product that
company is going to introduce in market.
Research background
Brand extension is referred as a marketing strategy under which enterprise market a
product with a good and well developed image utilizes the similar brand name in distinct product
category. Crowne Plaza Hotels & Resorts is a upscale hotel established in year 1983. It is
operated in approximately 52 countries and is having more than 400 hotels which are usually
located in coastal towns, city centres, resorts or near main airports. It offers high quality services
and products to customers in order to cater their needs effectively (Armenski, Dwyer and
Pavluković, 2018). Brand extension strategy is usually applied by customer oriented firms as
well as service industries for introducing new product by using similar brand name. Hotel
Crowne Plaza is on of the large service organisation that is concerned about safety and security

of their clients so, they ensure safety of their customers. It assists in satisfying customers and
retaining them for longer period of time. Firm majorly emphasize on brand extension by
developing new goods & services that helps in effectively satisfying needs and requirements of
customers.
Purpose of Research
This research is based on impact of brand extension on growth and success of business.
Safety and security of customers is vital part of every organisation that deals in hospitality sector.
As people are now more concerned about their health and safety, it becomes essential for firm to
focus on this aspect and offer goods and services accordingly (Cvelbar, Grün and Dolnicar,
2017). Main purpose of research is to analyse the impact of brand extension on growth and
success of firm. It is done by introducing new product or service by using existing brand name.
Products are those goods which represents brand name of firm so, it is highly essential for
company to maintain quality of product in order to attain high growth and success.
Research aim:
It is a crucial part of research product that provides direction to researcher so as to
substantiate research components in effective way. It is a predetermined articulation that
determines about the general reasons of research and provides a path to come at outcome. This
research aims “To asses impact of brand extension on growth and success of business”. A case
study on Hotel Crowne Plaza.
Research Objectives:
It is also an essential part research work that rely on research aim. Objectives of research
rationale course of action that is specifically related with research problem. The main objectives
of this research is defined below:
 To identify brand extension concept as well as its significance in growth of Hotel
Crowne Plaza.
 To determine the way through which brand extension can be practised in hospitality
sector.
 To assess impact of brand extension on business sustainability.

Research Questions
These includes the questions that rely on research goals which are essential in analysing
the research issue in appropriate manner. This research part is mainly concerned with goals that
depicts the basis of research. Some research questions are defined below:
 What are the concepts and significance of brand extensions in the growth of Hotel
Crowne Plaza?
 What are the ways through which brand extension can be practised in hospitality sector?
 What are the impact of brand extension on business sustainability?
Time scale
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9
Introduction
Literature review
Research
methodology
Data collection,
Analysis &
Interpretation
Conclusion

CHAPTER 2: LITERATURE REVIEW
This part of research project assists in performing in-depth research so that valid
conclusion can be drawn. It provides theoretical framework which is essential in investigating
issue of research in appropriate way (Espiner, Orchiston and Higham, 2017). For gathering
information of this part, various sources are used such as books, journals, past records etc.
Brand extension concept and its significance in growth of hotel
The concept of brand extension is wide that involves launching of product of different
category with existing brand name. According to the view point of Amanda, 2018, the term
Brand Extension is defined as the utilization of brand name that is developed in one product class
in order to enter into another one. It depicts the situation in which parent brand is used to enter
into distinct product category. Hotel Crowne Plaza, as a reputed company requires to maintain its
brand existence in market to maintain its sustainability.
Significance of brand extension:
 In Capitalizing existent brand assets, brand extension is relevant when there is high
competition in market.
 The branding assists company in determining its products & reputation.
 Brand extension is effective in accomplish higher competitive advantage in market and
creating value to customers.
Ways through which brand extension can be practised in hospitality sector
In hospitality sector, brand extension has wide scope as this industry provides various
services. Some ways through which brand extension can be done are defined below:
Product form extension: In this, extension is done by launching new product and these
goods are distinct from existing product line (Ghosh and Siddique, 2017).
Customer franchise extension: In this, firm diverse its product range for brand extension
in order to fulfil requirements of customers.
Brand image extension: Distinct goods are introduced by company to earn maximum
profit and capture large portion of market share in this type of extension.
Companion product extension: In this, brand is extended by organisation by introducing
companion product to existing one.
1

Influence of brand extension on business sustainability
Sustainability of business includes the efforts that are used by company to maintain its
position in market. It is the process in which product line is diversified. There are some
influencers of extension of brand that impacts on business sustainability. These includes
environmental degradation and negative brand image. For gaining high profits, new products are
launch by company in which they use such technology that harms environment due to which
degradation takes place. Another aspect is negative brand image, which is created when low
quality materials are used by company that harms health of customers. All this will impact firm
image in negative way and affects its sustainability in market (Vanhove, 2017).
CHAPTER 3: RESEARCH METHODOLOGY
Type of investigation
In this research project, selected research method is qualitative as in this technique,
different statical data points are taken as the base of conclusion .
Research design
In this research work, descriptive research design is chosen in order to determine
qualitative research aspect.
Research approach
Inductive research approach is utilized by researcher in this project in order to draw valid
conclusion.
Data collection method
For collecting data, both primary and secondary method is used and primary data is
collected by using questionnaires (Gössling, 2017).
Data sampling
For this research project, sample size is taken of 50 respondents.
CHAPTER 4: DATA ANALYSIS
Questionnaire
Q1) Does the brand extension strategy is essential for development of the of
Crowne plaza?
Frequency
2

Yes 46
No 4
Q2) What are the significance of brand enlargement for an enterprise ? Frequency
Instant Position and Reputation 15
Enhancing customers base 10
Lower cost access 15
Promotional efficiency 10
Q3) Which are the foremost scheme that can be applied by Crowne plaza to see
its sustainability and development in the marketplace?
Frequency
Brand Extension 30
Product Portfolio 5
Technology and learning 5
Market Research 10
Q4) What are the foremost factors that effects a Crowne plaza for brand
extension?
Frequency
High market Competition 15
Changing needs of customers 10
High profitability 15
All of the above 10
Q5) What kind of factors that involve in the growth and success of hospitality
industry?
Frequency
Leisure Time 15
Enabling Factor 10
Technology Factors 12
Income 13
3

Q6) What is the foremost component that should be used by Crowne plaza
during the brand extension process?
Frequency
Vision and Mission of firm 20
Availability of Resources 20
Customers preferences 10
Q7) What type of challenges and difficulties faced by a company during the
extension of brand?
Frequency
Rivals Strategy 25
Dynamic and complex forces 15
Lack of Resources and expertise 10
Q8) Which is most effective and valuable strategy of brand enlargement for
Crowne plaza?
Frequency
Horizontal 40
Vertical 10
Q9) What are the best advantages traced by the clients with the application of
brand extension?
Frequency
Reliability on brand 15
Easy availability of goods 12
Improvement in quality of goods 12
Reduction in prices 11
Q10) Any recommendation for brand extensions to the organisation.
- - - - - - - - - - - - - - - - - – - - - - - – - - - - - - – - - - - - -
Theme 1: Strategy of brand extension
Q1) Does the brand extension strategy is essential for development of the of Frequency
4

Crowne plaza?
Yes 46
No 4
5
Yes No
0
5
10
15
20
25
30
35
40
45
50
46
4
Column B

Interpretation: As per the above given graph has been analysed that strategy of brand extension
is more important for the development of company. In this 46 out of 50 respondents are agree
and remaining are not agree.
Theme 2: Importance of brand enlargement
Q2) What are the significance of brand enlargement for an enterprise ? Frequency
Instant Position and Reputation 15
Enhancing customers base 10
Lower cost access 15
Promotional efficiency 10
Interpretation: From the above mentioned report it has been concluded that brand extension is
more important for an enterprise. In this respondents are give different opinion about various
facts such as enhancing customer base, instant position and reputation, lower cost access and
promotional efficiency.
6
Instant Position and Reputation
Enhancing customers base
Lower cost access
Promotional efficiency
0
2
4
6
8
10
12
14
16
15
10
15
10
Column B

Theme 3: Main strategies applied by the company to maximise their sustainability
Q3) Which are the foremost scheme that can be applied by Crowne plaza to see
its sustainability and development in the marketplace?
Frequency
Brand Extension 30
Product Portfolio 5
Technology and learning 5
Market Research 10
Interpretation: According to the above determined chart it has been concluded that different
kind of strategies which is applied by the Crowne plaza in maximising its sustainability at
marketplace. In this 30 are agree as brand extension is suitable strategy, 5 are prefer product
portfolio, other 5 are agree about technology and learning and rest of the population are use
market research.
Theme 4: Main factors that impact on Crowne plaza
7
Brand Extension
Product Portfolio
Technology and learning
Market Research
0
5
10
15
20
25
30
30
5 5
10 Column B

Q4) What are the foremost factors that effects a Crowne plaza for brand
extension?
Frequency
High market Competition 15
Changing needs of customers 10
High profitability 15
All of the above 10
Interpretation: As per the above discussed graph it has been concluded that there are various
factors that impact on the business operations of Crowne plaza. Beside this 15 out of 50 are
agree as high market competition is more impacted, 10 are agree about as changing needs of
customers are influenced, other 15 are say higher profitability is effected and rest of the
population are doesn't say in this matter.
Theme 5: Involvement of factors in the success and growth of hospitality industry
8
High market Competition
Changing needs of customers
High profitability
All of the above
0
2
4
6
8
10
12
14
16 15
10
15
10
Column B

Q5) Which factors that involve in the growth and success of hospitality
industry?
Frequency
Leisure Time 15
Enabling Factor 10
Technology Factors 12
Income 13
Interpretation: From the above determined information it has been determined
involvement of the factor in the success of Crowne plaza. Respondents are give their opinion in
different ways such as leisure time, enabling factor, income and technology factors.
Theme 6: Use of main components in the brand extensions process of company
Q6) What is the foremost component that should be used by Crowne plaza
during the brand extension process?
Frequency
Vision and Mission of firm 20
Availability of Resources 20
Customers preferences 10
9
Leisure Time Enabling Factor Technology Factors Income
0
2
4
6
8
10
12
14
16
15
10
12 13
Column B

Interpretation: It stated that there are different components which are used in the process of
brand extension. In this 20 out of 50 are agree as vision and mission of the firm is main element,
other 20 respondents are agree about availability of resources and remaining are agree as
customer preferences is foremost element.
Theme 7: Types of challenges
Q7) What type of challenges and difficulties faced by a company during the
extension of brand?
Frequency
Rivals Strategy 25
Dynamic and complex forces 15
Lack of Resources and expertise 10
10
Vision and Mission of firm
Availability of Resources
Customers preferences
0
2
4
6
8
10
12
14
16
18
20
20 20
10
Column B

Interpretation: As per the above determined data it has been determined that various
challenges faced by the company during the process of brand extensions. Beside this 25 out of 50
respondents are agree as rivals strategy is more challenging as compare to dynamic and complex
forces and lack of expertise and resources.
Theme 8: Valuable strategy of brand enlargement
Q8) Which is most effective and valuable strategy of brand enlargement for
Crowne plaza?
Frequency
Horizontal 40
Vertical 10
11
Rivals Strategy
Dynamic and complex forces
Lack of Resources and expertise
0
5
10
15
20
25
25
15
10 Column B

Interpretation: It stated that there are two main strategy such as horizontal and vertical.
In this 40 out of 50 respondents are prefer horizontal strategy and remaining are used vertical
scheme.
Theme 9: Advantages accomplish by company while implementing of brand extensions
Q9) What are the best advantages traced by the clients with the application of
brand extension?
Frequency
Reliability on brand 15
Easy availability of goods 12
Improvement in quality of goods 12
Reduction in prices 11
12
Horizontal Vertical
0
5
10
15
20
25
30
35
40
40
10 Column B

Interpretation: From the above mentioned data it has been determined that there are various
benefits which are accomplish by company while implementing brand extension. In this 15
respondents are say it is essential in reliability on brand, 12 are agree as it support in easy
availability of goods, 12 are agree as it help in improvement in goods quality and remaining are
say it assist in reduction of prices.
CHAPTER 5: CONCLUSION AND RECOMMENDATION
Conclusion:
From the above mentioned report it has been determined that brand extensions is more
essential and important part for the development and success of company. In this business used
different strategy which assist an organisation to maximise their sales and profitability within
predetermined period of time.
Recommendation:
From the above mentioned information it has been recommended that brand extensions is
essential for the growth and success of enterprise. In order to recommended to the company to
apply different kind of strategies and policies as well as improve their products and services
quality also. Another recommendation is to provide training and development program to their
staff members so that they can able to deal with difficult situation in an easy manner.
Limitation of the research
13
Reliability on brand
Easy availability of goods
Improvement in quality of goods
Reduction in prices
0
2
4
6
8
10
12
14
16 15
12 12
11
Column B

There are different types of limitations which are identified at the time duration of
examine the research study. Main limitations is the time duration . Research topic is more large
and for getting the effect and outputs, specific period is more needed. So in the whole it can be
ascertained that time more is less for the each and every activity of research.
14

REFERENCES
Books and Journals
Albrecht, J. N., 2017. Challenges in National‐level Tourism Strategy Implementation–A Long‐
term Perspective on the New Zealand Tourism Strategy 2015. International Journal of
Tourism Research. 19(3). pp. 329-338.
Armenski, T., Dwyer, L. and Pavluković, V., 2018. Destination competitiveness: public and
private sector tourism management in Serbia. Journal of Travel Research. 57(3). pp.
384-398.
Cvelbar, L. K., Grün, B. and Dolnicar, S., 2017. Which hotel guest segments reuse towels?
Selling sustainable tourism services through target marketing. Journal of Sustainable
Tourism. 25(7). pp. 921-934.
Espiner, S., Orchiston, C. and Higham, J., 2017. Resilience and sustainability: a complementary
relationship? Towards a practical conceptual model for the sustainability–resilience
nexus in tourism. Journal of Sustainable Tourism. 25(10). pp. 1385-1400.
Ghosh, R. N. and Siddique, M. A. B. eds., 2017. Tourism and economic development: case
studies from the Indian Ocean region. Routledge.
Gössling, S., 2017. Tourism, information technologies and sustainability: an exploratory review.
Journal of Sustainable Tourism. 25(7). pp. 1024-1041.
Jones, M. L., 2017. Sustainable event management: A practical guide. Routledge.
Lundberg, E., 2017. The importance of tourism impacts for different local resident groups: A
case study of a Swedish seaside destination. Journal of Destination Marketing &
Management. 6(1). pp. 46-55.
Mossaz, A. and Coghlan, A., 2017. The role of travel agents’ ethical concerns when brokering
information in the marketing and sale of sustainable tourism. Journal of Sustainable
Tourism. 25(7). pp. 989-1006.
Ngo, T., Lohmann, G. and Hales, R., 2018. Collaborative marketing for the sustainable
development of community-based tourism enterprises: voices from the field. Journal of
Sustainable Tourism. pp. 1-19.
Snyman, S., 2017. The role of private sector ecotourism in local socio-economic development in
southern Africa. Journal of Ecotourism. 16(3). pp. 247-268.
Vanhove, N., 2017. The Economics of Tourism Destinations: Theory and Practice. Routledge.
Online
Amanda 2018. Why is Branding so Important for Your Business? [Online]. Available through:
<https://www.thebrandingjournal.com/2016/06/why-is-branding-important-business/>.
Sutton., D, 2016. 6 Vital Steps for Brand Extension Success. [Online]. Available through:
<https://toprightpartners.com/insights/6-vital-steps-brand-extension-success/>.
15

APPENDIX
Questionnaire
Name:
Occupation:
Gender:
Contact no.:
Q1) Does the brand extension strategy is essential for development of the of Crowne plaza?
Yes
No
Q2) What are the significance of brand enlargement for an enterprise ?
Instant Position and Reputation
Enhancing customers base
Lower cost access
Promotional efficiency
Q3) Which are the foremost scheme that can be applied by Crowne plaza to see its
sustainability and development in the marketplace?
Brand Extension
Product Portfolio
Technology and learning
Market Research
Q4) What are the foremost factors that effects a Crowne plaza for brand extension?
High market Competition
Changing needs of customers
High profitability
All of the above
Q5) What kind of factors that involve in the growth and success of hospitality industry?
Leisure Time
Enabling Factor
Technology Factors
Income
16

Q6) What is the foremost component that should be used by Crowne plaza during the brand
extension process?
Vision and Mission of firm
Availability of Resources
Customers preferences
Q7) What type of challenges and difficulties faced by a company during the extension of brand?
Rivals Strategy
Dynamic and complex forces
Lack of Resources and expertise
Q8) Which is most effective and valuable strategy of brand enlargement for Crowne plaza?
Horizontal
Vertical
Q9) What are the best advantages traced by the clients with the application of brand extension?
Reliability on brand
Easy availability of goods
Improvement in quality of goods
Reduction in prices
Q10) Any recommendation for brand extensions to the organisation.
- - - - - - - - - - - - - - - - - – - - - - - – - - - - - - – - - - - - -
17