Study On Brand Extension Risk Warning

In the more and more competitive market today, the product life cycle is continuouslyshortening and enterprises have great difficulty in developing other markets, which lead toincreasing humans, materials and financial resources. To shorten new product time tomarket and realize the fast market new products spread, the brand extension strategies havebecome an important measure when enterprises consider developing new markets. However,in the process of operating brand extension strategies, risks are a big barrier blocking theeveryday operation in the enterprise. In recent years, the brand extension theory has causeda lot attention of the world scholars. The brand extension can bring a huge benefit for theenterprises, but also many problems. Therefore, it has more theoretical value and realisticvalue, doing such a research.The thesis firstly analyzes the research background, expounds existing problems in theresearch, and the big significance. The thesis introduces the brand extension theory,warning management theory, the brand extension risk warning management theories, andother theories. Then the thesis tries to build the brand extension risk warning index system,based on the analysis of related factors. The part applies membership functions, quantitativeindexes into comprehensive fuzzy evaluation, uses multi-level fuzzy comprehensiveevaluation method to evaluate the brand extension risk warning indexes. In the same time,the result will be verified through the rationality of the evaluation method. Finally, thethesis provides corresponding strategies for reducing the brand extension risks, from theperspectives of customer, core brand, competition, product, enterprise, sales and market. Itis of great significance for enterprises to know the concept of the brand extension, makeright evaluation of their own brands, and improve the competitive capacity of theenterprises.