The Research On OTC Brand Extension

With China's market economy's continual development, the power of OTC industry is improved increasingly, and the market competition is more drastic. Meanwhile, the differences of various products are less than before, so the brand-extension becomes the enterprises'powerful means. But the time of OTC industry's participating in market competition is too short, the recognization of brand-extension is still in the seeking stage. However, the brand-extension is a high-technology work which is hard to do. If the decision is wrong, it will lower the value of brand-assets, which is a loss for the enterprise strategically. Accordingly, it's very important for OTC industry to how to apply the brand-extension strategy successfully.Firstly, this paper summarizes the relative theory and concepts about the brand-management and the brand-extension systemically for the research. Secondly, this paper analyzes the market condition and consumers of OTC industry deeply and detailedly. Realizing the market condition and the consumers'behaviors correctly will be good for OTC enterprises to implement the brand-extension exactly. This paper also analyzes the advantages and adventures of the OTC brand-operation and OTC brand-extension concretely, which put forward the references for the principles the enterprises should follow in the course of brand-extension. Finally, this paper uses for references the Lu Tai Hong's Brand-extension Success-rate Model and apply the multilayer fuzzy integrated appraise to establish the OTC brand-extension decision evaluation model on the basis of factors affect the success of brand-extension. Moreover, this paper mainly discusses the principles and proceedings the OTC enterprises should notice in the course of brand-extension operation. And it analyzes the OTC enterprises how to assure the success of brand-extension.Through the analyse of OTC brand operation, brand extension strategy for OTC industry is proposed according to the OTC brand's characters. Decision-making model of brand extension is constructed using two-level overall evaluation and it provides concrete theoretical guide in the practical operation of industries.