Standing on the crossroads of brand extension how would you go-.docVIP

 PAGE \* MERGEFORMAT 21 Standing on the crossroads of brand extension how would you go? As competition intensifies, enterprises to enter new markets, financial risk is increasing. In the United States, according to statistics, in some consumer markets, to create a new brand, costs about 5 between 10 million to 100 million U.S. dollars. To create such a huge cost to promote the use of a considerable number of companies already have the market credibility of the brand, using their influence to launch new products. One important way to brand extension. For example the ‘Nestle’ use of the milk powder, chocolate, biscuits, pure water and other products, will be ‘Marlboro’ use of the bags, leather products, the brand extension is. Brand extension is a diversified operating company of the most important strategic issue because the core of business strategy and the purpose of brand strategy, brand strategy and brand extension is an important part. With the business expansion of the scale, diversification and brand extension to become more entrepreneurial choice. Present, however, more entrepreneurs than from the perspective of business strategy of brand extension to this important issue, but simply from the savings in advertising costs and reduce expenditure trademark registration procedures and other immediate and tactics to deal with. We need to understand the brand extension strategies. Because any strategic mistake would be fatal. Brand extension can be both a good thing to lucrative, it could be progress in the abyss beyond redemption, without a rational decision-making and operation of the brand extension is not enough scientific sound is very dangerous. If the right can not be an extension of the brand to an extension or extension shall not extend into the areas of great natural risks, there are fall into the ‘abyss’ at risk. In order to effectively avoid the risk of brand extension, and make sure they play brand extension functions, enables organizations to q