| With company's diversification and the gradually intensive competition, brand extension becomes a kind of strategy widely applied in many companies. Brand extension includes advantage and disadvantage. Some companies succeed in brand extension, some fail in the practice. It is very important to study the case and put forward the theory of brand extension. It can help enterprises get efficiency, and avoid risk.The dissertation applies literature method and statistics method to analyze the development situation of brand extension based on foreign and domestic research in the lasted ten years, finds the differences between them, and gets the direction of following research. The dissertation gives the clear definition of diversification strategy, brand, brand equity, brand extension, and brand extension performance. Based on the previous study, it analyzes the five main factors of brand extension affected: the competition force of brand, conform character between brand extension and family brand, the brand knowledge of customers, the environment of external market, the capability of brand management. Combined fuzzy mathematical method with the method of AHP, it builds the comprehensive decision making model of brand extension. At the same time, it establishes a serial of extensive tactics to fit Chinese enterprises developing, puts forward detailed attentive points of conducting brand extension tactics in order to increase the succeeding of extension. The dissertation investigates the effects of brand extension from two aspects, one is to analyze comprehensive indexes of brand extension to demonstrate the performance of brand extension, gives a new model to calculate the value of brand; the other is from the system aspect to get the indexes system of evaluating brand extension performance, implement a relevant model. At last, it applies the theory to real company to solve problems; the value of brand extension method will be realized.
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