Impact of new brand on the sales performance of existing brands: The case of Heineken breweries S.C. Ethiopia, Addis Ababa region.

Abstract

These day firms are doing business in a very dynamic, turbulent and tough market. Buyers have more information about the market and the product, and they have choices and different suppliers in the market. Therefore, Customer may simply shift from their supplier for a superior quality product with a fair price. Since today’s business environment is very competitive, firms are striving to survive by implementing different business strategies. Consumers and customers have different choices and options to pick in the market today. The availability of portfolio of products in the market makes the selling and surviving very struggling, so firms are expected to come up with something to withstand competitors and one the strategies firms implanting is new product development. But launching new brand to the market might and might not be successful always. It may have a consequence. Thus, this study investigates the impact of the new brand on the sales performance of existing brands in the case of Heineken breweries Ethiopia S.C. The study was conducted in Addis Ababa city. The variables used to study the impact of the new brand are price, taste, brand name, package and quality. A quantitative research approach was used to conduct the study. Both primary and secondary data were collected for this study. Primary data by questionnaire and secondary data from trade and marketing department of the company were collected. The findings of the study revealed that the sales volume of all existing brands of the company has declined due to the new brand and the most affected existing brand of the company as a result of the new brand is Hakim stout 33cl, the second affected brand is sofi lemon. Therefore, the company has to focus on the price, taste, brand name, package and quality of existing brands so as to increase the sales of these brands.