Brand Extension Model Study

With the coming of global economic integration era and the information era, the competition between enterprises becomes fiercer and there are smaller differences between products from various companies, which lead to more attention increasingly being paid to the brand strategy by enterprises. For an enterprise in a fierce market competition, creating a new brand is usually very costly and highly risky as well. While new products with existing brands not only save a large amount of capital and time and are more accessible to consumers and the market, but also reduce the risk of failure. However, due to the complexity of the strategic decision of brand extension, which is related to many specific environments, conditions and factors, and due to the various patterns of the brand extension strategy itself, it is necessary to analyze the related aspects in detail.The thesis starts from the analysis of the concept of modern brand, brand extension and its market background and latest development. Based on that the thesis explores the reason why brand extension strategy has been focused by both enterprises and the academia in recent years, then makes inducements and analysis of the relevant theories in an attempt to summarize some basic rules as instructions for the analysis and operations of the strategic decision of brand extension. Moreover through combining with the practice of enterprises, the applicable strategic models for enterprises' brand extension are summarized and analyzed; meanwhile, regarding the strategic decision of brand extension, the thesis comes up with the methods of feasibility analysis and its proof. In the fourth chapter, the thesis elaborates some critical factors which influence both the model of brand extension and its success. Chapter Five puts an emphasis on the risks and evasion measures of brand extension, so as to provide beneficial instructions for Chinese enterprises on how to extend brands and how to avoid mistakes in the process of brand extension.With an extensive collection of the documents in terms of the models of brand...