The Brand Extension And Its Application In Our Country's Enterprises

Our country is about to join in the World Trade Organization(WTO), so the competitions among enterprises are not only within the domestic ones, but only on a larger scale. The competition will focus on the brands. Therefore, it is of vital importance for an enterprise to lay emphasis on the development, the sales and the creation of the brands. As an important brand strategy, the brand extension has been widely used in many countries. Cases in China are often just likelhis: most enterprises have been looking forward to carrying on their brand extension to enlarge their scale through their brands after have enjoyed good name and reputation. However, owing to the fact that it is not very long when our country's enterprises fully took park in the market competition, and the problems of their systems, their understanding and management, domestic enterprises' brand awareness, the understanding of brand sales and its management are still in the primary stage. What's more, the brand extension is the most difficult to plan and handle in its management, and it's a kind of job needing high technology. Any mistakes in the decision of strategic importance will make the value of the brand property decrease, bringing strategic losses to the enterprises. Thus, it's very importantto make a thorough and detail analysis on how to successfully employ this brand extension strategy for our country's enterprises.This paper aims mainly at making study on our country's application of he brand extension. So far as I know about the scope of the brand extension, this paper discusses the brand extension in its narrow and broad sense respectively. This paper includes creative study on the traditional brand extension and some authentic proofs and examples of the present application of the brand extension in our country'senterprises. This paper consists of four chapters: Chapter One on its theoretic research and some basic concepts of "brand" and "brand property", etc, as well as the analysis on the background knowledge and the factors of the brand extension. Chapter Two on the inquiry into such problems as the effect brought by the brand extension, its potential risks, the recognition of our country's enterprises on the brand extension and the error-zone in its practice. Chapter Three on a comprehension analysis on how to walk out of the error-zone from the present situation of the application of the brand extension in our country's enterprises, and how to decrease or avoid the potential risks as far as possible, which is of great value for the strategic decision on the brand extension of our country's enterprises. Chapter Four on some constructive suggestions for the application of the brand extension in the property reorganization and the internationalized management of our country's enterprises (refers to the broad sense of the brand extension).