Brand extension of the decision-making steps
Brand extension decision-making step is to integrate the principles of brand extension to consider the decision-making, has been focused on the brand equity of the investigation, new products suitable for systematic analysis of the process.
(1). Brand equity investigation stage. This phase of the task is to detect the presence in the minds of the public and all relevant Lenovo brand. This stage to speculate what brand products to meet the significance. We need to get the brand awareness, including the attributes, personality, intent, heart, commitment and hide what are the potential. With quantitative can (identify brands and brand penetration) and qualitative methods of research. Qualitative research is constructive, and we speculate brand in the minds of the change in the product categories and expectations for the product brand for the conditions. Once the conclusions drawn, then you can look to the market. Then enter the second phase.
(2). Testing new product ideas. Test new products not only to identify the concept of brand extension for the related products, determine whether the extension in line with the brand, but also to determine whether a product is considered beyond its competitors, namely extension of the desire to create a market. For example, the McDonald's fast food brands, to enter the field of photography, is not particularly unrealistic. For example, the subject displayed at the McDonald's hamburger itself beyond the insights of family relationships, their performance is in the environment set the theme of regional activities.
Through the above stage of the study, namely, the brand extension can be divided into several regions: the internal core domain / product line extension, the external core domain / natural Lenovo, extension of domain / implicit in the potential of the FCA / threat of brand equity. They are from, to a four concentric circles of the relationship. This business of brand extension strategy is a long-term guiding role.
Brand extension alone can not rely on the decision-making over a two-step decision-making. Because the brand extension is the result of strategic decisions, but also with the production, marketing, financial and human resources and other factors considered. Brand extension usually involves some risk, a study could not accurately predict brand extension for a period of time results. Therefore, enterprises, brand extension strategy, we must focus on long-term interests. In any event, complete with brand awareness for the brand extension terms of decision-making is always necessary.
