Study On Brand Extension Based On Brand Strategy

With the development and opening of China economic and market, the competition in market becomes vigorously, the brand strategy is concerned by enterprises, and many brand strategies are known and used. Along with the vigorously competition and higher expense spending on market, the marketing cost and eliminate risk of new products are increasing. As one important marketing strategy, brand extension may overcome the difficulty and promote the brand asset. However, brand extension is a complicated activity, which is related to strategic environment, brand position, having direct affection to brand assets and the core competition ability. Meanwhile choose of the brand extension mode is affected by brand strategy in some degree; also, the brand strategy decides the application of brand extension. So it is necessary to study the decision and management of brand extension from the strategic angle.This paper uses qualitative analysis combined with quantitative analysis, dynamic analysis combined with static analysis and other methods to study the brand extension based on brand, psychology, brand strategy theory and risk management theory. First, fix the key point and way of research by analyzing the background and the present condition of the subject. Then, get the definition to brand, brand strategy and the brand extension, argument the relation between strategy and brand extension, and get a conclusion to the relative theories of brand extension, in further, get a research on the theory and regulation on brand extension. After that, make a comprehensive comparison among several extension modes, based on strategy theory to constructs a decision-making system of brand extension as well as analyze the extension influence on brand. At last, point out how to manage the extension risk and build up the risk management system based on risk management theory.The main research result is putting forward a decision-making system and risk management system of the brand extension. The study may advance the development of brand theory and have positive function on application of brand extension.