A brand's distinctive and unique personality is the foundation and basis for building a strong brand. When a brand's unique personality is gradually accepted by consumers and formed brand loyalty, it is not easy to change. The higher the consumers' preference and loyalty to the brand, the more likely the brand extension products will be recognized and accepted by the target consumers. But improper extension often dilutes the brand personality and quickly disintegrates the target consumer group's preference and loyalty to the brand. The slogan "goldlion, man's world" reveals the core proposition and brand positioning of the product. When the exquisite "golden lilies" women's leather bags come on the market, they dilute the characteristics of the brand. It undermines the brand's macho masculinity and doesn't win over women.
The number of products of a brand has increased from a few to dozens. With the increase of such quantity, the number of inventory varieties of packaged consumer goods increases day by day. However, retailers cannot provide more shelf space for a single category just because it has more products. As manufacturers' reputations decline, retailers are allocating more and more shelf space to their own-brand products. Competition among manufacturers for the remaining limited resettlement space has increased total promotional expenses and shifted profits to increasingly powerful retailers.
Blind and excessive brand extension will cause heavy burden to enterprises and psychological conflict to consumers. From the perspective of the enterprise itself, excessive product extension means that the enterprise enters into new areas or launches new products in a short time, which has high requirements on the human, material and financial resources of the enterprise. Especially in the field of high-tech product production, it is a complex and difficult problem to solve for the enterprise how to gather high-tech talents in a short time, how to get financing quickly, and whether to occupy the technological commanding heights of the industry quickly. Once the brand extension strategy is not properly applied, not only the brand advantage is difficult to display, but also the enterprise scale can be blindly expanded, falling into the management deadlock of "dinosaur disease". For consumers, if the brand extension width is too large, consumers will have psychological conflicts. Consumers can only buy one or neither, which damages the overall brand image.
As companies roll out new extensions, managers should strengthen research into cons
