Research On Enterprises Brand Extension Based On Brand Equity

The brand and branding have become one of the most important weapons for corporation. The Chinese corporation faces the international competition without going abroad since China affiliated the WTO. Because the competition in the market has become more and more heavily and the product turned more and more similar, the Chinese Entrepreneur and academic circle have paid more attention to the function of the brand. However, the local corporation appeared many problems while making use of brand strategy, one of which is the blindness in brand extension, which caused many scholars concerning on this problem. Although academic circles has made a lot of research on the brand, but theories about brand is less after taking a wide view of the domestic treatise, which becomes an obstacle of Chinese brand heading for world on the certain degree. This paper hopes to do some research on how Chinese corporation run brand extension according to the brand equity.Brand equity primarily contains three kinds of concepts model. Finance-based brand-equity,Market-based brand-equity and consumer-base brand-equity were concluded. From the view of modern brand and the view of the consumer, the brand is not belonged to the corporation but consumer. Brand has no value until the consumer accept the brand. Consequently, this dissertation adopts the consumer-based brand-equity, and explicates it from the psychological view.The brand is a very important immaterial assets of the corporation. The brand equity can be taken into application, an important one of which is brand extend that corporation make use of the brand to a new product. This paper analysis how corporation make brand extension according to brand equity, and get some conclusion which has leading meaning to the brand extension strategy of the Chinese corporation based on the analyzing how brand equity affects brand extension.In generally, this paper offers a new perception for brand extension decision, so gaining a better understanding of this brand development process will help managers improve the effectiveness and efficiency of extension launches.