Research On Evaluation Of Brand Extension Based On Brand Equity

Due to the fierce competition, shortened product life circle and increased advertisement cost, more and more companies adopt brand extension strategy in order to obtain a higher accepting rate of new products. Brand extension has become focus of marketing research. But until now, there isn't a unified theory system among the brand problems, such as concept of the brand extension, the evaluation of brand extension achievements and so on in the international marketing educational world, which thus are obstacles of the implementation and the development of brand extension. The related researches about brand extension evaluation are still at the exploration stage as a whole. People pay more attention on analysis of various factors, which affect brand extension according to the statistical result, and there hasn't any forecasting models of brand extension evaluation yet.This paper discusses necessity and feasibility of evaluation through explaining importance of brand extension. Then the paper reviews some related theories and finds out many researches focused on consumers on the basis of concluding brand extension evaluation with evaluation performance of consumers, finance and market. Otherwise, consumer's individual subjective feedback affects reliability of evaluation, and separate using indexes of finance and market may result in departure of long-term strategic aim because they're comparatively short-term. Therefore, the paper's main content is to find out a scientific evaluation standard and conclude its feasibility.On definitude of this aim, the paper switches to analysis of brand extension. This analysis is mainly on two aspects for there are narrow and broad senses of brand extension, but which is concentrated on the broad one and the factors influencing are brand core value, market, consumer, company and other marketing ones. Brand core value decides the feasibility and scale of extension and which is the standard that can evaluate extension? The success of extension can maintain impression; build up ability of competition and brand prestige, and which are just setting up brand equity. So we can take brand equity for aim and also standard of extension.