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on the extension of agricultural products brand

Agricultural brand alliance

216-12-31 11:58

Concern

First, the meaning of agricultural products brand extension

The so-called agricultural products brand extension refers to the extension of past brands to newly invested products by agricultural products producers and operators. There are two ways to extend the brand: one is the extension of product grade, that is, the producers and operators of agricultural products launch new products with different grades from the original products to meet the needs of consumers at different levels. This extension can be divided into upward extension (high grade), downward extension (low grade) and two-way extension (integrity). The second is the expansion of the product line, that is, to extend the product line by developing and adding new product items.

second, the significance of brand extension of agricultural products

compared with industrial enterprises, brand extension of agricultural products enterprises has many positive meanings. The main manifestations are as follows:

1. Brand extension is beneficial for new products to occupy the market quickly

Psychological research shows that people's emotional closeness and people's likes and dislikes are transitive. The same is true of consumers' attitude towards brands. Consumers' welcome and dependence on the original successful brands of enterprises will also be transferred to the new products marked with the brands. It can be seen that using the popularity of the original successful brands can quickly improve consumers' awareness of new products and save the time for launching new products. At the same time, it can speed up the positioning of new products, ensure the quick and accurate investment decision of new products, and make the launched new products occupy the market quickly. It is particularly important for enterprises to shorten the time for new products to enter the market as much as possible. Brand extension is the use of brand "expansion" or "replication" and "cloning" to make consumers quickly eliminate their doubts, doubts and rejection of the product, identify and accept the new product and generate brand association, which is a shortcut for new products to enter the market quickly. For consumers, once they identify with a brand and think that it has high social reputation and popularity and strong affinity, it is easy to turn this affinity and loyalty into consumer behavior.

2. Increasing the choice space for consumers

Generally speaking, consumers' loyalty to product brands is limited, especially for young consumers, who often "like the new and hate the old", and usually have a try attitude towards other well-known brands of the same type. It is a good way to use brand extension strategy for these consumers whose brand preferences have shifted.

brand extension brings freshness and vitality to existing brands or products, enriches the product portfolio of enterprises, not only expands the business field of enterprises, but also meets more demands of consumers and increases the choice space of consumers under the original brands.

3. Save the cost of brand creation

In general, it takes hundreds of millions of yuan to create a new brand. Enterprises use the original strong brand to extend to new products, so that consumers will soon have a good impression on new products and gain cognition. In this way, enterprises will save the cost of creating new brands. After successfully launching white goods such as refrigerators, air conditioners and washing machines, Haier in China has successively extended its anti-Haier brand to beige appliances such as televisions, computers and mobile phones. These advertisements "Haier, Sincerity Forever" and "Haier, Made in China" convey the Haier brand with high quality, high taste and high service level to consumers in a unified way, and promote all Haier products from point to area, which saves considerable expenses compared with establishing and promoting multiple brands separately.

4. It is beneficial to maximize brand value

A successful brand is a huge intangible asset of an enterprise, and it is the reward of its years of struggle. On the premise of cherishing and protecting the brand, making full use of the intangible asset of brand can seek more benefits for the enterprise. Brand extension can win more shelf area for new products, easily gain the approval of dealers, increase the dependence of retailers on manufacturers, and win competitive advantages for production enterprises in the sales field. Successful brand extension can effectively reduce or even avoid the waste, idleness and loss of brand value.

new products of the same brand can bring freshness and maturity to the original brand, make the symbolic meaning of the brand more standardized and rich, and also increase the publicity space for consumers to choose products, which is conducive to improving market share. For example, on the basis of successfully launching Coca-Cola, Coca-Cola Company extended its brand to a series of products such as Diet Coca-Cola, Decaffeinated Coca-Cola and Cherry Coca-Cola, which injected new vitality into the Coca-Cola brand family, greatly enriched consumers' choices and met their various needs. Brand extension improves the status and investment effect of the brand family of the whole enterprise, and enables the enterprise to form economies of scale. The effective investment of the whole brand reaches a certain economic scale, and each product line will benefit, thus obtaining greater economic benefits and maximizing brand value.

5. It is beneficial for enterprises to diversify their business risks

As a result of brand extension, enterprises have developed from a single business field and a single product structure to a variety of product business fields and product structures, which can disperse the business risks of enterprises. The huge brand effect is beneficial to seize a larger market share when new products are put on the market, which in turn promotes large-scale production of enterprises, thus reducing the production cost of enterprises and gaining price advantage, which will further expand the market scale and make the development of enterprises enter a virtuous circle track. On the other hand, enterprises with famous brands can not only use their own strength to achieve brand extension, but also realize brand extension strategy by exporting brands to non-brand enterprises, and quickly achieve the strategic goal of enterprise diversification.

III. Basic strategies for brand extension of agricultural products

At present, the opinions of domestic academic circles are not consistent, and the concepts and expressions are quite different. Here, it is necessary to sort out the concept of the types of brand extension first.

the application types of brand extension can be mainly divided into two types: in-line extension and out-of-line extension.

in-line extension usually includes vertical extension and horizontal extension. Vertical extension, also known as the vertical extension of brand, means that an enterprise launches a brand first, and then launches new products in the same product category with its brand name after success. It can also be the introduction of new and improved products, or the replacement of the same product. Vertical extension is generally from the level of products and brands, that is, according to the existing positioning of products or brands to adjust. If the product quality or packaging grade and product price are improved, the original brand is still used, or the main and deputy brands are extended, that is, the extension is upward; On the other hand, if we add lower-grade products to our products and use the reputation of high-grade brand-name products to attract customers with lower purchasing power and buy low-grade and cheap products in this "famous brand", it is a downward extension. If two grades are introduced at the same time, it is a two-way extension. Horizontal extension strategy (product line filling) refers to extending to the same category of new products, that is, the same quality level, but different in size and appearance, such as new styles, new tastes, new colors, new formulas, new packaging, etc.

Off-line extension, or horizontal extension, also known as cross-category extension, is the extension of the original brand to other product lines or product categories. For example, the "I miss you" brand extends from jujube slices to jujube juice, or to other agricultural products such as apples and flour, and even to clothing, mobile phones and other fields.

corporate brand extension strategies can also be divided into three categories according to the use of brands: single brand extension strategy, main and deputy brand extension strategy and family brand extension.

enterprises usually combine the above two classification methods when making brand extension decisions. In general, the family brand extension strategy is rarely used in vertical extension; In horizontal extension, the strategy of family brand extension is often adopted, and the strategy of single brand extension and main and deputy brand extension can also be adopted.

when enterprises extend horizontally, they often adopt multi-brand strategy, that is, enterprises use two or more brands for similar products. Through the enterprise has multiple brands and generally speaking, different brands correspond to different types of products. Multi-brand helps to disperse market risks to the maximum extent, and can also establish market segmentation to avoid the negative impact of different products. For example, "Pearl" rice, "Crystal" rice, "Yulan" rice, etc. For example, P&G products are various, and different types of products generally correspond to different brands, such as washing powder, shampoo, head & shoulders, toothpaste, Crest, Colgate, cosmetics and Olay. Since multi-brand strategy does not belong to brand extension, it will not be discussed too much here.

The following is a brief analysis of the basic strategy of brand extension, taking the brand of "I miss you so much" as an example.

1. upward extension strategy

this means that enterprises enter the market with low-grade or mid-grade products, and then gradually increase mid-grade or high-grade products. This strategy is conducive to products entering the market at a lower price, with relatively small market obstacles and a greater blow to competitors. Once it occupies part of the market and extends to middle and high-grade products, it can obtain higher sales growth rate and marginal contribution rate, and gradually enhance the high-grade image of enterprise products. For example, "I miss you so much" jujube slices are presented with gift packages (hardcover or luxury packaging, etc.) on the basis of the original ordinary packaging.

2. downward extension strategy

this strategy is just the opposite of upward extension strategy, which means that enterprises gradually increase some lower-grade products after entering the market with high-grade products. This strategy is conducive to the company or product to establish a high-grade brand image, and timely development of middle and low-grade products can avoid the threat of competition in the high-grade product market, fill the vacancy of its own middle and low-grade product line, set obstacles for new competitors to get involved, and attract more consumers with low-grade and low-price products to improve market share. For example, "I miss you so much" jujube slices are introduced into ordinary packaging or simpler packaging products on the basis of the original gift packaging. The advantage of this strategy is that it is beneficial to occupy the low-end market and expand the market share; The disadvantage is that it is easy to damage the imagination of core brands, disperse the sales volume of core brands, and even leave a negative impression on the consumer groups of core brands.

3. Two-way extension strategy

This refers to the enterprise that produces mid-range products, and extends in both high-end and low-end directions. This strategy is conducive to the formation of the enterprise's market leader position, and cuts people from the mid-range market, providing a two-way choice for the future development of the brand. For example, "I miss you so much" jujube slices are introduced as gift packages (hardcover or luxury packaging, etc.) on the basis of the original ordinary packaging, and jujube slices with simpler packaging are also introduced. The advantage of this strategy is that it helps to meet the needs of consumers at different levels to a greater extent and expand market share; The disadvantage is that it is easy to be attacked by competitors from high and low ends, or it causes the ambiguity of corporate brand positioning.

4. Single brand extension strategy

means that enterprises adopt the same brand regardless of vertical extension or horizontal extension, and brand elements such as brand name, trademark and logo remain unchanged. The advantage of this approach is to maximize the brand value, give full play to the leading role of famous brands, relatively save brand promotion costs and quickly occupy the market; The limitation is that some products are not necessarily suitable for this brand, and the fatal disadvantage is that once a product goes wrong, it will implicate other products, damage the whole brand image, and cause the consequences of both losses.

5. The strategy of main and deputy brands

is to cover a series of products of the enterprise with a main brand, and at the same time give each product a sub-brand to highlight the personality image of different products with the sub-brand. For example, "Panasonic is the King of Painting", "Robust is the Health Express" and "Hisense is the King of Silence". This strategy of main and sub-brands uses the brand extension strategy of "famous brand+special sub-brand", with the help of customers' good feelings and preferences for the main brand, and through emotional migration, customers can quickly recognize and like new products, thus achieving the effect of "killing two birds with one stone". For example, Haier, which is more successful in brand extension, uses a successful brand-"Haier" as the main brand to cover the series of products produced by enterprises, and at the same time gives different products a lively and attractive name as a sub-brand. In the refrigerator, Haier has a little prince, a double prince, a big prince, a handsome prince, a golden prince, etc., in the washing machine, Haier has a prodigy, a little prodigy, etc., and other electrical products also have their own sub-brands. In this way, the effect of "taking advantage of the original brand and avoiding bringing trouble to the original brand" has been achieved, which can be described as both ends meet. However, it should be noted that the sub-brand is only an effective supplement to the main brand, and the sub-brand is only in a subordinate position. The promotion of the sub-brand must be attached to the main brand, but not beyond the main brand.

6. Family brand extension

The so-called family brand strategy refers to that although the market share of products operated by enterprises is relatively stable, the product categories are quite different or cross-industries, and the original brand positioning and attributes are not suitable for extension, enterprises often divide the products they operate into several large categories according to categories and attributes, and then crown them with several unified brands. For example, China Cereals, Oils and Foodstuffs Import and Export Corporation uses "Meilin" trademark on canned products, "Hongmei" trademark on condiments and "Great Wall" trademark on alcoholic products.

the advantage of the family brand strategy is to avoid the ambiguity of brand attributes and concepts caused by the wide product line and the use of unified brands, and to avoid the shortcomings of too many brands and the inability to integrate marketing and communication expenses caused by the strategy of one product and one brand. Family brand strategy has no obvious disadvantages, but compared with unified brand strategy, if the target market profit is low and the marketing cost of the enterprise is high, the family brand strategy slightly disperses the marketing communication cost and cannot achieve the integration effect. Therefore, if enterprises want to implement the family brand strategy, they should consider the areas where the industries are quite different and the existing brands should not be extended.

IV. Disadvantages of brand extension of agricultural products

Although brand extension has many benefits, it is not a panacea, but it also has certain limitations and some disadvantages.

1. It may damage the original brand image. When a certain kind of product takes the leading position in the market, this brand becomes a strong brand, and it has a special image positioning in the minds of consumers, and even becomes synonymous with this kind of product. After the extension of this powerful brand, due to the existence of recency effect (that is, recent impressions have a profound impact on people's cognition), it is possible to consolidate or weaken the image of the powerful brand. If improper brand extension is used, the image information represented by the original strong brand will be weakened.

2. It goes against consumer psychology. The process of a brand's success is the process of consumers' psychological orientation to the specific functions, quality and other characteristics of the brand manufactured by enterprises. When an enterprise extends a strong brand to a product that is incompatible or irrelevant to the original market, it goes against the psychological orientation of consumers.

3. It is easy to cause brand confusion. When a name represents two or more different products, it will inevitably lead to consumers' fuzzy cognition of the products. When the products with extended brands are in an absolute advantage in the market competition, consumers will shift the psychological orientation of the original strong brands to the extended brands. In this way, it virtually weakened the advantages of the original strong brand.

4. It's easy to have a knock-on effect. If the strong brand name is crowned on other products, if the quality grades of different products are very different, the original strong brand products will conflict with the extended brand products, which will not only damage the extended brand products, but also implicate the original strong brands.

5. dilute the brand characteristics. After a brand is successful in the market,