Research On Decisions Of Corporate Brand Extension

In the increasingly competitive commercial business, brand has become anindispensable power among enterprise competition as a recognizable system for thecompany and its related product. Brand extension is used widely in the enterprisemanagement, which brings great successes to many enterprises, while failures comesalong also sometimes. Therefore, it’s of great realistic importance to do theoreticalresearch in brand extension. It can improve the ratio of success to the companydiversification by means of brand extension, so that they can achieve considerableincome with little marketing cost.Through the research and analysis in the theory field related, the study will spellout the meaning of brand extension. With the mature Analytical Hierarchy Process, itwill have predictive evaluation on brand extension, considering the other factors duringthe decision making process which includes feedback effects and enterprise strategy.Based on the analysis of these three aspects, it will put forward the decision analysisprocess of enterprise brand extension.The empirical study followed will choose the Five-Star as a case, which plans toextend its mature brand into e-commerce field, and build an online mart. The empiricalstudy will use second-hand data method and questionnaire investigation method toobtain relevant data of the Five-Star brand extension, and predict the effect of Five-StarAppliance extension products in the market, from the strength of the parent brand andthe similarity between existing brand and the extensive brand, as well as environmentalfactors. Combining with the Five-Star development strategy and the feedback of brandextension, it will finally get the results of the comprehensive analysis from the Five-Starimplementing the brand extension. Research results show that Five-Star can implementbrand extension, and will give suggestion on three aspects of brand awareness, the relative competitiveness in target sectors and the promotion efforts of extension product,which have poor evaluation.