A Study On OP Company's Brand Extension Strategy

Over the last 10 years,with the development of China's macro-economy,the rapid progression of the urbanization construction and the continuous prosperity of the real estate industry,etc.,these factors directly fueled the booming development of China's customized furniture industry.The competition among furniture manufacturers was upgraded initially from the product,price or factory scale et al tangible assets rivalry to the furniture brand et al intangible assets competition.Among the furniture manufacturers,the market infiltration was deeper and the product segmentation markets were more professional;Nevertheless,with the constant development in the furniture industry and stiff competition among furniture manufacturers,increasingly more furniture manufacturers constantly extended its product collections,enlarged its business scopes and adopted the brand extension strategies to strive for more market share and segmented markets;OP company is the leading furniture giant in China's furniture industry specializing in integrated kitchen cabinet,integrated wardrobe,integrated bathroom and tailor-made interior door,et al as its core business;Under the circumstances of more and more stiff competition market environment and meeting the needs of OP company's strategic transformation,brand positioning and continuous turnover augmentation,OP company was forced by the market to implement the brand extension strategy to seize more professional segmented markets and remain its own comparative advantages in the industry.Therefore,under such circumstances,it is of vital importance for OP company to adopt brand extension strategy.Thus,this thesis would mainly analyze OP company's actual case study and exposit how to conduct brand extension and put forward the specific strategies and solutions for the implementation of brand extension based on the theories of brand or brand extension,etc.The first and second chapter of this thesis mainly analyzed the background and implications of brand extension and its related theories and methodologies of brand extension.The third chapter paid more attention to OP company's development background and its brand development and extension status quo;For the fourth chapter,it mainly exposited China's furniture industry's development factors,tendency as well as its future competition environment and it also highlighted the expounding and analysis of its main competitors in its extended business areas as well as its own strengths and weaknesses;Subsequently,the fifth chapter,it commenced to expound the problems,challenges and risks that OP company faced in the course of brand extension;Furthermore,the sixth chapter it illustrated the factors that affect the formulation of OP company's brand extension and further specify the affected factors and lay the foundations for the following chapters' contents of implementation strategies and solutions' analysis based on the expounding the affected factors.Finally,the seventh chapter is the essential chapter of this thesis and it systematically put forward the decision-making principles,extension process,specific implementation strategies and solutions for OP company's brand extension according to OP company's current brand extension status quo and its development stage as well as the current competition situation and affected factors of brand extension;In the conclusion part,this thesis summarized the vital importance of brand familiarity,perceived fit and brand association between parent brand and extended brands.Furthermore,in the course of brand extension,it exposited the priority and importance of the detailed analysis and careful studies of the competitors in the extended spheres and it also summarized that the brand positioning and feedback effect evaluation shall be conducted and taken into account during the brand extension;Additionally,in the course of brand extension,the feedback effect evaluation shall be paid close attention and some measures shall be taken to monitor and prevent the brand equity from diluting and brand personality from watering down.In the same time,it exposited the importance of strengthening the management of family branding and improving the sound and orderly development of its extended brands and parent brand.According to the analysis and study of this thesis,the conclusions,solutions or strategies put forward by this thesis would be helpful and beneficial to OP company's current brand extension strategy or have the referential implications to other companies in the industry.