Understanding The Correct Strategic Deployment Of Brand Extension

< p > < strong > 1. It is far from the nature of the brand extension that needs to be done) < /strong > /p >

< p > < < a > href= > http://www.91se91.com/news/index_c.asp > brand extension > /a > there are two different types, one is pure product extension, no pfer of brand equity, but from one product to second products, such as the extension of Hai Wang to that.

This extension is more suitable for those with no brand foundation to diversify their products (because there is no brand foundation to be able to talk about the pfer of brands). The main consideration in this extension should be the correlation of products. The smaller the degree of correlation is, the more independent brands should be considered.

The problem of Hai Wang is here. It is clear that before he launched the "silver Delphi", he could not have any brand history and brand influence. Instead, he had to adopt the structure of "main and subsidiary brands". When the "main brand" was zero, he would have a "blow up" of the "Deputy brand" by his schemer. The result was that the main brand was pulling the sub brand, forming a virtuous circle through the sub brand's main brand, and its product's original correlation was relatively low, which could spread risks.

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< p > < strong > two, go astray (brand extends to dangerous industry) < /strong > < /p >

< p > it is not enough to have the right extension mode. The influence of the industry itself is also crucial. Like a good horse, you throw him in the mire, not only can not run fast, but also will get deeper and deeper.

Taking Changhong as an example, brand extension is right. The single brand mode is also right, but it is not successful to extend to air conditioning and DVD. The problem is that the industry of brand extension selection is not right. The market growth of air conditioning industry is slowing down, profitability is decreasing, and competition is strengthening. The concentration of < a href= "http://www.91se91.com/news/index_c.asp" > leading brand < /a > is increasing. This pattern even has strong brand assets is also difficult to break through.

When Galanz wants to extend from the microwave oven to the air conditioner, "thoroughly break the air conditioning market structure", what is the result? It is not the same as Changhong.

So the direction of light is not enough, and the way is right.

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< p > the most suitable industry for brand extension should be the industry of < a href= "http://www.91se91.com/news/index_c.asp" > growth /a > not mature industries. If you are unfortunate enough to enter a mature industry, you must find a growing segmented market through market segmentation, or else you will be able to "lose your grip".

For example, when Hisense entered the air conditioning industry, the timing was not very good, but he did not fight hard or fight with the tide. Instead, he found a potential market through the market segmentation. The result was that the banner of the "frequency conversion revolution" took the lead in one fell swoop.

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< p > strong > three, and fighting each other (extending the lack of synergy among brands) < /strong > < /p >

Apart from requiring every brand to live well, < p > brand extension requires more efforts to find out the cooperative relationship between them. It is easy to break away from each other's own wars and lack of synergistic effect.

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< p > strong > four, self destruction (lack of internal brand extension management system) < /strong > < /p >

< p > many enterprises with brand extension behavior attach great importance to the brand strategy and the promotion and dissemination of brand extension. However, they neglect the establishment and perfection of the internal support system, that is, the brand extension management system.

The absence of the internal system will inevitably make the brand no one responsible for the care, and the strategy can not be carried out for a long time.

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< p > strong > five, equal treatment (no emphasis in the process of brand extension) < /strong > < /p >

< p > some enterprises will go to another extreme. Since every brand needs careful care, I will treat each other equally.

In fact, different brands have different contributions to enterprises and different prospects for development. They must be treated differently.

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< p > we should rank the brand from the highest to the lowest on the basis of historical performance and future expectations, rank the brand according to the priority of resource allocation, and decide that the strategic posture of each business unit should be aggressive expansion, fortification and defence, thorough repair and relocation, or harvest / stripping. If necessary, we must change the resources of the company to the areas with the greatest opportunity by changing the composition of the brand portfolio.

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< p > brand extension is difficult because it is not only a brand problem, but also involves marketing problems and even strategic problems.

All of them will make the brand extend to the "Jedi". "Blind people ride the blind horse, and the deep pool at night is not dangerous". < /p >