Brand Extension- Yes.docVIP

 PAGE \* MERGEFORMAT 13 Brand Extension: Yes Brand Extension: unstoppable temptation Constantly in the market today, brand-name represents the market has, to a certain extent, also on behalf of the country’s economic strength. Brand-name hard-won, patience, courage, financial and material resources into various long. How to develop and use an existing brand name, better to play famous brand effect, is an essential business strategy issues. The use of resources to implement the product brand extensions, is commonly used for brand-name business for development and utilization of strategy. It is precisely because many companies successfully used the brand extension strategy in order to obtain a competitive advantage. From existing practice, this brand extension will give businesses the benefits of a concentrated expression in: (A) The use of brand loyalty, reduce new amp;quot;marketamp;quot; costs. It is, consumers tend to have some sort of brand loyalty psychology, that is, buying merchandise repeatedly demonstrated bias against a particular brand of sexual response. Such loyalty psychology, the brand-name products is not easy to provide a stable transfer of consumer groups, thus ensuring the basis of the brand market share. Thus, when the companies to develop new products to market, when the same brand, they can take advantage of consumer loyalty to their brand of psychological, with less input costs to market quickly and improve the success of new product development degree. Haier air conditioner, refrigerator industry has a relative competitive advantage, in recent years has developed a color TV, with amp;quot;Haieramp;quot; The popularity and reputation quickly been recognized by consumers as a rising star color TV industry can not be ignored. The Changhong, Hisense Group amp;quot;oppositeamp;quot;, the air-conditioning industry as a brand extension of the new area. TCL, Konka and so put the brand into the mobile area, and gradually breaking the domestic m