Organic line extensions for mainstream brands. Is it a good strategy?

Abstract

One of the consequences of the increased demand for organic goods is the launch of organic products from mainstream brands. This thesis aims to understand the role of brand associations in assessing an organic line extension of a mainstream brand. For this purpose, the first step has been to analyze the consumers of organic products and the motivations and barriers they encounter when purchasing such goods. Subsequently, the thesis explores how brand associations establish the organic schema in the minds of consumers. The literature on line/brand extensions suggests that the congruence or fit between the parent brand and the extension is the main driver of an extension's success. This thesis reconceptualizes the fit construct by showing its multidimensionality and highlighting different relationships within its dimensions. Our results show that the evaluation process for the organic line extension follows different paths depending on consumers' level of environmental awareness. This dissertation contributes to the line extension literature by identifying new dimensions of fit that consumers evaluate when considering an organic line extension and establishing the different types of relationships among these dimensions. Additionally, managerial implications are provided for brands looking to launch an organic line extension.