Feasibility study on a brand extension within AgriGold

Abstract

Companies must continue to find ways to not only access new customers, but also better serve and increase loyalty with the current customers they already serve. In an effort to increase customer retention and satisfaction, while improving the company’s bottom line, this study looks at a possible brand extension with AgriGold, a seed company based in Southern Illinois. This study will analyze the feasibility of AgriGold extending its corn-only focus into the soybean market in order to capitalize on the current strength of the U.S. soybean market. The soybean market has drastically evolved over the past several years due to the introduction of several new technologies to increase and preserve yield; in some areas of the U.S., soybeans are now the preferred crop over corn. Through the theory of brand extension and based upon the projected logistics and financial benefits, a recommendation is made for the AgriGold brand. Both internal survey results and financial analysis are used to analyze such an extension. In an expanding soybean acre market and a contracting corn acre market in the US, this study may prove to suggest one of the most important strategic moves in AgriGold's history.