“ UNRELATED DIVERSIFICATION AND ITS EFFECTS ON BRAND IDENTITY: A CASE STUDY OF THE ISMAYA GROUP”
Abstract - This research study delves into the profound effects of unrelated diversification on brand identity, with a specific focus on a renowned Indonesian company, the Ismaya Group. The strategy of unrelated diversification involves venturing into industries that are substantively unrelated to the company’s core operations. Brand identity, the amalgamation of consumer behavior and perception towards a brand, holds an essential position for marketers aiming to stimulate purchasing behavior, establish brand image, achieve sales growth, and influence consumer perception. Despite the inherent value in investigating the relationship between unrelated diversification and brand identity, the notion of unrelated diversification has been given minimal attention in comparison to alternative dimensions of business diversification. Hence, by investigating the Ismaya Group, a reputable company known for their diversification, the research aims to address this gap by exploring the concepts using the company as a case study. To accomplish this the study draws upon existing literature concerning the intricate relationship between unrelated diversification and brand identity to establish the foundation. Leveraging a qualitative approach by interviews, primary data is collected to gauge Ismaya’s customers attitude towards the company’s unrelated diversification and its impact on their perceptions towards Ismaya’s brands. By creating more awareness on the relationship between unrelated diversification and brand identity, this research will produce valuable insights for businesses seeking to implement a strategic decision concerning diversification and brand management. Findings of this research will benefit the comprehensive understanding of corporate diversification, offer solutions for business performance, and facilitate successful navigation in a dynamic business landscape.