The concept of brand extension

Brand extension (Brand Extensions), is an existing brand name to use a new category of products. Brand extension is not only borrow on the surface of the brand name, but the whole of the strategic use of brand equity. With the global economy to accelerate the integration process, the increasingly fierce market competition, manufacturers of similar products in the performance, quality, price and other aspects of that difference is becoming increasingly difficult. The physical power of manufacturers marketing greatly weakened, the exclusive brand of resources makes brand manufacturers as the trial of strength between the competitiveness of an important bargaining chip. Thus, the use of the new brand or a brand extension of the old enterprises, the introduction of new products must face the decision-making brand. Brand extension is to achieve brand intangible assets transfer, the development of an effective way. Brand also bound by the life cycle, the existence of import period, growing, maturity and decline. Brands as intangible assets of enterprises is of strategic resources, how to give full play to their potential resources and brand extension of its life cycle has become a major corporate strategic decision-making. Brand extension of the new products on the one hand, the brand equity to achieve the transfer of new products on the other hand again extended the brand image of life, has become the realistic choice of enterprises.