Brand Extension Strategy and Consumer Acceptance: Evidence from the Nigerian Dairy Industry in Kaduna

This study examines consumer acceptance of brand extension strategies employed by dairy product companies in Kaduna State, North West Nigeria. Brand extension, the practice of using an established brand name to launch new product categories, is a widely adopted growth strategy in the fast-moving consumer goods sector. In the Nigerian dairy industry, established brands have extended into yoghurt, flavoured milk, and dairy-based drinks. Understanding consumer acceptance of such extensions in the Kaduna market is both practically and academically relevant. A descriptive survey design is employed, with 260 adult consumers selected through stratified random sampling from urban and semi-urban areas of Kaduna. A structured questionnaire measures brand fit perception, parent brand quality associations, consumer innovativeness, and acceptance of extended products. Analysis uses descriptive statistics, chi-square, and regression analysis. The study also assesses how perceived similarity between the core and extended product moderates consumer acceptance. Preliminary findings suggest that parent brand reputation strongly predicts extension acceptance, while poor perceived fit between parent and extended products significantly undermines adoption. The research also reveals generational differences in extension acceptance, with younger consumers demonstrating greater openness to dairy brand innovations. Findings provide brand managers in the Nigerian dairy sector with evidence-based guidance for designing brand portfolios that capitalise on existing equity while minimising extension failure risk. Keywords: brand extension, consumer acceptance, dairy industry, Kaduna, brand equity