The Brand Extension Operating Mode And Mistake Elusion

In the more and more severe competition, numerous enterprises have cognizant of the importance of the brand, a lot of enterprises place the brand construction and the brand protection in a important place. it becomes a problem that how to use the brand asset, when the brand has become famous in the market, the brand extension is a developing strategy, in which an enterprise protects or expands its marketing possession. But the brand extension is a two-edged sword. Inappropriate extension can not help launching new products or businesses but may even jeopardize the present brand. In recent years, many successful enterprise integrate the brand asset, use the brand extension to extend their market. Under this background, it has very important meaning to explore and research the brand extension's operating mode and how to evade the wrong brand extension.This paper firstly introduces the brand and brand extension's background and history, and point out the meaning of the brand extension. And then introduces the current operating mode of the brand extension. This paper analyzes the condition of the brand extension, and analyzes the factor which affects the enterprise using the brand extension successfully. The mistake and trap of the brand extension are indicated. It will give the enterprise a available reference that the means to evade the wrong brand extension. Finally, we use the theory of the brand extension to analyse the mistake in the brand extension of Wuliangye group, and advances the way to resolve the problem.