Research On The Theory And Strategic Management Of Brand Extension

Brand extension is widely applied in enterprises'operation; some enterprises succeed in brand extension, some fail. So studying the theory of brand extension has important realistic meaning. Many failed brand extensions indicate that there are many problems in the study of brand extension practice and theory. These problems mainly show that studiers mostly considering brand extension in premise that the brand has been built, lacking unified standards in the factors of impelling brand extension succeeding, and using static and isolated standpoint to study it. So, this article proposes that we should study brand extension from the strategic and dynamic perspective. Since brand extension strategy is the total scheme that guides the whole of brand extension activities, we should go on strategic management for brand extension. So in this article, I first elaborate the concept and its basic intellectual of brand extension, thus serve for the following argumentation; and then analyze the external and internal reasons for implementing brand extension deeply; next explore the main factors that how to extend brand successfully and its inherent relation systematically under the guidance of whole marketing thought, and indicate these factors by a Third Ring Road picture; last structure a strategic management system of brand extension based on brand life cycle----in the stage of brand newly established, reserve space for brand extension; in the growing stage of brand, establish the foundation for brand extension; in the extending stage of brand, implement brand extension and widen the intension of brand.