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    Must Read: Brand Extension To Guard Against "Death Zone"

    2011/12/12 13:20:00 24

    The Brand Must Be Read And The Death Zone Should Be Taken Care Of.

    Brand extension must be rational and prudent.

    How to extend the brand is rational and rational? We must understand the brand extension of the death line.

    The essence of competition among enterprises is to master and integrate core resources.

    After creating the brand at the best point, it extends to both sides.

    We must understand where it is.

    brand

    The extension of the death line is determined by three factors: one is the inclusive thinking of customers; the other is the industry requirement; the three is the enterprise resources.


    Customer thought refers to the idea of customer's brand identity, and the inclusion of customer's thinking is the biggest "circle" of brand extension niche.

    The brand concept of new product is often compatible with the customer's idea of brand identity.

    For example, the brand of Coca-Cola,

    extend

    In sports shoes, Coca-Cola sports shoes can express Coca-Cola's "passion" and "vitality" brand idea, that is, the brand concept of the new product is contained in the customer's mind.

    If Coca-Cola extends to the hotel, this hotel service is very difficult to express Coca-Cola's brand.

    Idea

    This is beyond the customer's mind and goes beyond the death line of brand extension. This brand extension is a failure.


    Industry requirements refer to customer demand, average interest rate and degree of competition in the industry.

    Only the existence of customer demand has the value of extension. As long as there is profit, there is a possibility that the extent of competition will extend and the extent of competition will extend.

    No demand and unprofitable customers in the industry are a sign that the extension is beyond the limit of death.


    Enterprise resources, especially core resources, is the key to the success of brand extension. Customer ideological inclusiveness and industry requirements are non controllable factors, and enterprise resources are controllable factors.

    Enterprises must first determine the core resources needed to enter the new product market, whether enterprises have such core resources, how to master and integrate core resources, and extend services for brands.

    If the enterprise does not have the resources of brand extension new products, brand extension is beyond the limit of death.


    To sum up, enterprises must be able to extend their brand within the scope of customer's thought tolerance, low level of industry requirements and resources for developing new products.

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