The Cause And Strategic Analysis Of Brand Extension

From the 1980's, brand extension has been an important part of the content of brand strategies for many enterprises. One reason is that the advanced technology makes products' life short. And the other reason is that there are more competitions now in the market. Not only the small enterprises, but also the large enterprises are all facing the pressure of living. Because it takes time and a large amount of money for the market to accept the new brand, enterprises no longer feel interested in creating new brands. However, they begin to use the brands already proved to be successful by the market. How to use brand extension? This article discusses several aspects of it.In the first part of the article, based on the points of the experts, the definition of brand extension is divided into broad sense and narrow sense. And then the following gives the present research of brand extension a general frame. The next part discusses why we should use brand extension. The third part discusses several common brand extension strategies. The fourth part discusses the problems happening in the process of brand extension and the reasons of them. The last part discusses some factors influencing the success of brand extension, including the similarity between the new product and core brand, the type of the brand, the influence of the brand, the advertisement and the size and capability of the enterprise. These factors should be paid a great attention to and given a reasonable adjustment.