Analysis And Evaluation Of Brand Extension Risk Based On TBCI

Brand,as an intangible asset of the enterprise,plays more and more important role in the current society of overcapacity and capacity structure upgrading,which occupies a significant position in the long-term strategic development planning of the enterprise,and brand extension is the most commonly used strategy of expanding enterprise production in the process of development.Keller,a brand management expert,said:"For most companies,the question now is not whether to adopt the brand extension strategy,but how to implement the brand extension strategy." "Brand extension strategy has pros and cons,Brand extension If successful,enterprises can effectively launch new products,save new product promotion costs;If the brand extension fails,it will not only save costs,but also waste the enterprise's resources.The importance of brand equity protection is increasing day by day,while increasing the use efficiency of brand assets and striving for more brand premium,it is necessary for enterprises to pay close attention to correctly identify,accurately evaluate and effectively control the risks in the process of brand extension.From the angle of brand credit degree,this paper analyzes and evaluates the risk size of the implementation of brand extension strategy through the change of brand credit value and the 10 index of brand credit.First of all,this paper briefly introduces the research background,research significance,research deficiencies and innovation points,puts forward the importance of brand extension to enterprise development in excess of capacity,and puts forward that enterprises must maintain the concern of brand extension risk.Secondly,it introduces the related concepts in brand economics,including the brand credit degree,the choice cost,and the relationship between the brand credit and the brand extension risk variables.Next,introduced the brand credit degree Model 10 index and the brand credit degree computation,moreover through the brand credit degree customer benefit model,mainly through the customer interest emotion interest,constructs the brand extension risk and the brand credit degree the model.After that,the brand Virgin and the video network were evaluated and analyzed by using the model,and the brand credit rating of Virgin and Le Vision brand was evaluated before and after the extension of brand,and the 10 index of brand credit was analyzed.It concludes that the risk of brand extension strategy is lower when brand credit is higher and brand credit is higher after the brand extension.Finally,according to the revelation of the case,the author puts forward some suggestions to improve the brand credit and reduce the risk of brand extension.