The idea that "the East does not shine brightly in the West" makes a diversified development strategy considered by some companies to be a good way to guard against risks and increase efficiency. In the process of diversified development, companies are most likely to stumble into the trap of brand extension.
The Parker pen in the United States has always been known for its high quality and high quality, and is a symbol of the status of the upper class. Later, the production of a low-end pen with only US$3 each resulted in not only failing to break into the low-end pen market, but also losing some of the high-end pen market, damaging its noble brand image.
So under what circumstances can the brand extend? Under what circumstances can not be extended?
Factors to be considered in brand extension decision include: brand core value and personality, relevance of new and old products, industry and product characteristics, market capacity of products, market environment in which companies are located, purpose of enterprises to develop new products, and market competition pattern. Corporate finance and brand promotion capabilities. Among the many factors mentioned above, brand core values ​​and personality are the most important.
A successful brand has its own unique core values ​​and personality. If this core value can accommodate product expansion, it can boldly carry out brand extension. Brand extension should try not to conflict with the original core value and personality.
Such as the "999" brand extension. Sanjiu Group started with “999 Stomach Thai†and filed “999â€. The subconscious of consumers first recalled “999 Stomach Thaiâ€. Later, "999" was extended to beer. It was not known whether consumers would have a taste when they were drinking "999 Ice Beer." Furthermore, “999 Wei Tai†is undoubtedly reminding consumers to drink less or even not drink, and “999 Ice Beer†is clearly advising people to drink, is not it self-contradictory.
Fortunately, the "999 Ice Beer" was sold only in some areas. Apart from local consumers, very few people in other parts of the country knew about it and reduced the role of the vice-president to the lowest point. Although "999 Ice Beer" achieved a good sales performance with the "999" brand, it was just drinking and quenching. In the long run, at least in some areas, it caused damage to the brand.
The extension of the Sanjiu brand to other drugs such as Pi Yan Ping and Ganmao Ling, etc. will greatly help establish their professional brand image of drugs.
In the same way, Wahaha extends to the wine (Guan Di wine), and Vigor 28 extends to water drinks, which is inappropriate.
Author: Mr. Ye