The Use And Analysis Of Brands Extension Strategy In Chinese Enterprises

A new brand's cost is huge in a market where the concurrence is fierce, at the same time the risk is also huge. but using the a brand which already exists not only saves time but also saves a lot of cash, it brings closer the customers and occupy the market, and also decreases the risk. From this the brand extension owns the endless come-on dint apparently。However, the brand extension if not suitability also will bring the business enterprise the bad result, such as the dilution brand character, confuse the brand was boycott, lowered by dealer brand loyalty etc..Therefore, the brand extension is on making use of a blade sword, will bring the business enterprise considerable income properly, but extend the failure to also may result in the serious result. It is current to compare with western nation, Chinese brand management theories development empress, practice the foundation weaker, development of the history is short, the point of departure is lower, resulting in the brand extension the inside new product fixed position is not accurate, lack the character turns, brand extension the blindness turn's extend the strategy the monotone and operate is ineffective and live etc. This will beg us in brand extend strategy, not only adopt the one product, many brands to proceed the product line with the main brand extension strategy and the extension of the product category, but also manage in the brand the lieutenant general brand extend retail, supply, rival and group company etc. realm constituted by business enterprise. Noticing the one brand extension strategy puts into practice, the moderation extension, product of the attention product category when the one brand extends fixed position and the consistency that brand fixed position; Attention many brand extends the strategy puts into practice, at proceed many brand extension before, work well the brand real strength takes the gauge of, do not extend the excessiveness; Notice that the main brand's the extension puts the strategy into practice, adopting the vivid and diverse brand relate to strategy, and regard the publicity of the main brand as principle. Chapter 1: The brand extension theories A review for to theoretical creation in extension in relevant brand background, theories contents and extension strategy is here done and in brief. The brand extension can be comprehended as: from the narrow sense, the brand extension means asking for an already existing and successful brand help, Extend brand a product for covering combination or product extension lines, Make use of the brand proceeding the product to combine originally possessed or the product line extends. See from the broad sense, Brand extension is a process we use good reputation to point exploitation success brand, announce new products, make the new product throw in the market , to start to acquire namely the original brand advantage support, and expand successfully with the process that take possession by force the market. Come along with the information ages, the technique renewal is increasingly and quick, the market competition is increasingly vigorous, the extensive adoption that brand extend is an inevitable outcome that business enterprise reasonableness choose. The brand extension can realize the brand immaterial assets transfer, develops, developing the brand property effect well. The result that brand extension can be very big and different, this is why we decided to adopt to grow the brand extension strategy and take the gauge of the model. The good brand extension can produce the household brand umbrella effect; Extend the intensive result in investment in brand; Creation vitality effect, but brandextension if there is failure, it may make the extended the product to have the clash with the fixed position value of the original brand, even hurt the fixed position of the original brand. Though the brand extension has no certain mode or method, still there are some principles that can be provided for us to consult. While proceeding brand extension, we do not only considerate the consumer factor, but we also want to considerate the company factor, market factor and other factors. While doing brand extension decision, we will be considering the market concurrence situation, noticing the brand extension we would regard the current brand as the foundation, and keeps the rhythm of the brand extension. In current brand management, the brand extension strategy has generally the below three kinds of strategies: One brand strategy; Many brands strategy; Main brand strategy, each strategy has each merit and shortcoming, the business enterprise should make a fit decision according to the concrete circumstance of itself. Chapter2: The present condition analysis of the Chinese business enterprise brand extension strategy application In brand practice, Chinese market competition although increasingly vigorous, compare with western nation, its competition degree is not still so violent, therefore seeing from the whole, the brand extension comparing with Europe and America there are more successful opportunities in national market. For all that, because the whole Chinese market is not mature enough, Chinese business enterprise during the process of the brand extension fulfillment a lot of problems appeared. For example, in brand extension new product's fixed position is not accurate, lacking the content that character turn; The brand extension blindness; Business enterprise while extending persistently for brand but the proceeding brand extends,appearing extension with no the preface turns phenomenon; Appear the phenomenon that pursue scale economy in extension, drop into the economic trap in scale, the brand extension strategy is monotonous, management type is not lively enough etc…However, the actual the development of brand extension in the western countries tells us, the Chinese brand extension still have a vast development space. According to the forefront information that comes from the Chinese local marketing practices, the brand extension has got the stubborn vitality on whole inside country market. And, more races brand science reasonableness an application brand extends, biggest limit in marketing for developing famous brand ability, arouse the series product to be sold very well in the market, promoting the quick new step in business enterprise, most typical example is world famous brand sea haier , achieve success in brand extend. Besides haier, wahaha, lebaizhi, meijiajing, bubugao etc., all these brands passed through the brand the extension to get a fast fierce development, becoming successful enterprises. Chapter 3: The Chinese business enterprise success makes use of the realistic counter plan of the brand extension strategy Brand already went from identifying a kind of usage tool changed into a product as before the market concurrence of strategy resources with an immaterial assets of the business enterprise importance, in the background of Chinese domestic competition and internationalization concurrence, knowing correctly the mentioned above brand management which has of all kinds crisis, we aim to find the correspondent brand extension strategy, to increase the competition ability between Chinese business enterprise and brand, contain special function in urging the business enterprise to participate in the world availably competition. Concerning The problems that appears in the...