How should an extension of the brand product line.docVIP

 PAGE \* MERGEFORMAT 11 How should an extension of the brand product line A well-known phenomenon: When an enterprise developed to a certain size and a more mature stage, want to continue to become stronger and bigger to grab more market share, or to prevent, counter competitors, they tend to adopt the brand extension strategy, the use of consumer those on the existing brand awareness and recognition of degrees, the introduction of sub-brands or new products in order to pass a shorter time, lower the risk of a quick profit, and quickly occupied the market. However, all successful and unsuccessful cases show that the growth of private enterprise product line extensions are not safe, once and for all, and certainly not a panacea, a grasp on the soul. For most businesses, product line extensions mean new problems and new risks. Product line extension, extended to far? Product line extension strategy to have more models are generally divided into the following three types: The first is the upward extension strategy, business to middle and low product’s brand extends to the high-end products into the high-end product markets. In general, the upward extension can effectively enhance the brand value of the assets, improve brand image, a number of well-known international brands, especially some of the original mass located in mid-range brand, in order to achieve these goals, not hesitate to spend huge amounts of money in order to expand the market upward extension strategy . However, many domestic enterprises, this route seems to go not so smoothly. The typical example is the panda phone. Panda Mobile has been positioned in the middle and low domestic mobile phones, access to a certain degree of brand recognition, the Panda Group hesitate to spend huge amounts of money to launch high-end mobile phones in an attempt to break into the high-end markets, and eventually ending up disgraced, suffered a crushing defeat. Ma Zhiping private chat during the year, not with