Research Of Brand Extension Strategy Of NESCAFE In Liaoning Market

In the modern market economy, competition between enterprises, no matter it is knowledge, technology, talent, or capital, ultimately, it is the competition of the brand. Today’s international market is the market that full of brand competitions. Since the reform and opening up thirty years ago, especially ten year after China entered into WTO, China has already become an important part of the world’s market, and China is in the era of brand competitions.If the enterprise wants to become larger and stronger and get a long-term success, it must constantly introduce new products to occupy more market. By using a new brand to promote a fresh product, it may input a big amount of financial resource and take a long time. However, if the enterprise already has a strong brand, then introduce new products and implement the brand extension, it may save much financial cost and time. When domestic enterprises follow this strategy, some of them perform successful cases, and some suffer the failures.Nestle company is the largest food company in the world. Its factories and enterprises are spread in eighty countries all over five continents. As one of sub brands of Nestle, Nescafe with brand value of13.3billion dollars ranked25th in Business Week’s Top Global Brands in2009.Since Nestle company entered into China, only about twenty years, the Nescafe has already become a leading brand of coffee market. The operation of its brand extension is worth studying and using for reference.The northeast region is one of the most potential market in China. As a leading position of economy in this region, Liaoning province is an important area that many FMCG companies are striving for. The performance of a brand in Liaoning market can be used as a weathervane to examine whether this brand is successful in the northeast region.This paper based on the modern brand marketing and brand extension theory, to analysis the coffee demand, macro and micro marketing environment, and customer behavior in Liaoning market area; carries on SWOT analysis for Nescafe and uses the method of theory with practice, to find out the opportunity and challenge of Nescafe; analyzes and sets up a market extension strategy of Nescafe in Liaoning market, also implementation and brand control methods; This paper can be used as a reference for other related enterprises to make the brand extension plan. The proposed brand extension scheme has applied value for related industry enterprises to implement their brand extension.