Correct understanding of the advantages of brand extension strategy and trap but the brand extension is the compound of dual attribute, in the help of woodworking machinery enterprises to success at the same time, also contains a huge risk.
machinery enterprise, therefore, before the brand extension strategy into practice, must have a comprehensive knowledge of it, the correct understanding the advantages and pitfalls of brand extension strategy, is it possible to make the right decision, and then let the woodworking machinery enterprises in an impregnable position in the development.
Experts say that the brand extends is refers to the company decided to use the existing brand name to launch a new item of the products.
On the brand extension is defined as: a company USES an established brand to launch a new product.
Brand extension from the broad sense can be divided into two categories: one is refers to the product line extension, the use of the mother in the same product line to launch a new product project, with different composition, different tastes, different forms and sizes, different ways of use.
2 refers to the product range extension, it is using parent brand launch belong to different kinds of new products.
machinery enterprise what is the advantage for a brand extension strategy has a good reputation, a higher level of service and strong technical strength, can let the consumer trust of cnc woodworking machine
machinery enterprises, timely and appropriate use of brand extension strategy, can make the new products to gain consumers' cognition as soon as possible, reduce the cost of enterprise expansion, diversification, consolidate and expand the original brand advantage, enhance the core competition of the woodworking machinery enterprises.
To be specific, brand extension has the following advantages.
Makes people love me, love my dog psychology new products as consumers has been known as the old brand, with the popularity of the original brand to enter the market, consumers can be induced to shift its affection on the old products to the new product, easy to make people love me, love my dog psychology, namely the so-called stimulus generalization effect in consumer learning theory.
It can greatly reduce the emotional barriers when new products into the market, make the new products quickly accepted by cognitive and relatively easily, thus is advantageous to the new product into the market as soon as possible.
New products make the woodworking machinery enterprises don't have to start from zero to establish brand awareness, easier to market competition.
Save advertising costs reduce the customer search cost a certain new products enter the market to occupy a certain market share in a short time have to large-scale advertising, and in brand extension, because the original brand has high visibility and reputation, so woodworking machinery enterprise can save advertising costs, reduce the customer search cost.
Use of brand extension can make promotion cost greatly reduce: on the one hand, the original brand of advertising effect on subsequent extension products spread effect;
On the other hand, under the brand umbrella, the core brand do propaganda means to all enterprises with brand products.
Make consumer choice of products more full with the intensification of market competition and increasing the cost of marketing, the market of new products to import has been facing increasing risks.
One of the effective ways to solve such problems is the value of the assets of the original strong brand, through the brand extension is transferred to new products, reduce the barriers and risks of new products into the market, and different kinds of enterprise management in the process of brand extension of commodity, also make the woodworking machinery enterprise spread risk.
The same brand of the new product, can bring fresh and growing feeling for the original brand, the brand meaning of more standardized and rich, also make consumer choice of products more and more complete, to expand market share.
Improve visibility and reputation to increase the economic value of using the brand extension success with new products can provide more choices for customers and satisfy the needs of the customer diversification, make the customers realize the woodworking machinery enterprise brand in the process of time has been in constant innovation, to strengthen the customer a good understanding of corporate brand, form the innovation connotation of brand image, improve customer loyalty, and, in turn, further enhance visibility and reputation of the brand, enhance the overall competitiveness of the brand, the brand value of the asset value unceasingly, forms the enterprise strong image, enhance brand influence of woodworking machinery enterprise.
All in all, woodworking machinery enterprises should make good use of brand extension strategy, increase the market share.
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