Study on the risk elusion of brand extension in business startups

摘要

Because of the severe competition of business startups, numerous enterprises have realized the importance of the brand, so a lot of enterprises place brand construction and brand protection in an important place. When brand has become famous in the market, how to use brand asset has become a problem that enterprises should take the first consideration. Brand extension is a developing strategy in which an enterprise protects or expands its market share. But brand extension is a two-edged sword. Inappropriate extension cannot help to launch new products or business and may even dilute the core brand. In recent years, many successful enterprises integrate brand asset, adopting brand extension strategy to extend their market. Under this background, it is very important to explore and research brand extension's operating mode and how to evade the risks in brand extension. This paper focuses on the overview of brand and brand extension and points out the meaning of brand extension. It introduces the current operating modes of brand extension and analyzes the condition of brand extension and the principles which affect the enterprises in executing brand extension successfully. The missteps and risks of brand extension are put forward. It will give the enterprises an available reference on how to evade the wrong brand extension.