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Appliance industry diversification and brand extension into the quagmire - appliance brand, applian by hngdf fdsaw





Article Author Biography
Appliance industry diversification and brand extension into the quagmire - appliance brand, applian by
Article Posted: 03/25/2011
Article Views: 84
Articles Written: 925
Word Count: 773
Article Votes: 0
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Appliance industry diversification and brand extension into the quagmire - appliance brand, applian


 
Business,Business News,Business Opportunities
"C" strategy to "T" strategy, the strategy is bad

2006 4 Changhong 3C release of its new branding strategy into the "C Strategy"; June 2007 TCL also announced its new branding strategy, called "The Creative Life" ("TheCreativeLife"), we said it for the "T" strategy. There are two things in common these two strategies, one is: are corporate diversification and swallowed the bitter pill of brand extension brought after the launch of the new strategy in 2004, Changhong had just bursts out of the huge loss of 3.7 billion in 2006 , TCL also announced huge loss of 19 million; the other is: without exception, these two strategies are "B" (BAD) strategy, poor strategy.

Best brand strategy is driven by a multi-category multi-brand strategy, brand development model is a tree of its development model, it is clear that in reality more like corporate umbrella. Made a big umbrella, and then to all the products under the umbrella of the heap, C and T strategies strategy is the nature of the two companies showed off the code-named "C" and "T" of the two umbrella.

Years, Ries and Trout have been emphasizing diversification and brand extension to the business of the serious consequences, even "the Harvard Business Review," also concluded, "Brand Extension untested brand recognition will be weakened know, there purchase contact block cover up losses. " But very few Chinese companies able to listen into the advice. Are, without exception, companies like General Electric out examples to illustrate the diversity and brand extension is possible. Ai Mr. Rees has done on this wonderful reply: "First of all, General Electric is a 126-year enterprise; Second, he is the founder of Edison, formerly Edison Electric Light Company. If your company has 126 years, if your company has invented electricity, Well, then, also extend it to the brand. "Here we add another fact, actually an extension of GE brand is to use more technology in the monopoly the field of industrial products, to consumers mainly lighting products.

Model student: Gree

2005 years, the home appliance industry downturn has caused the Chinese market sector on the Chinese electrical appliances "return to the fundamental marketing," the great debate, expert advice "should be concerned about consumer demand," there are expert advice "should focus on product strength and innovation ", as well as the emphasis on" should channel innovation ", these views are reasonable, but still misses the crucial question. Electrical industry source of the problem is marketing, the crux is crazy and blind expansion of diversity and brand extension.

Listen to look like the same old tune, but do not agree, Gree's examples of this. Gree is that we should vigorously promote the China brand, image, or body mass from the point of view, Haier, Gree seems far less, but from the perspective of brand competitiveness, Haier, Gree far better, Gree or even present, China appliances in the most promising brand. Why Gree so powerful, many people focus on the Gree unique channel model, indeed, Gree channel model is very special, but this is not the key to a strong Gree brand is what can make Gree channels of giant Gome strong words? Gree won because consumers minds.

Gree perhaps the world's only air-conditioned home appliance production enterprises only. In 2006, domestic air conditioning market shrinking, Gree more than 20% sales growth in the domestic market share of nearly 30%. Test brand competitiveness is one of the direct indicators of the profit, in the electrical industry collectively weak case, the Gree almost the most profitable line of business appliances. Profits of more than 800 million in 2006, 2007, to maintain annual growth of 50%. As long as the focus of the strategy does not change, we expect Gree will have the opportunity to become the representative of the global air conditioning industry to become truly world-class brand. Gree is not never done a wide range of attempts, is an example of small household appliances, Fortunately, small appliances Gree not much may be achieved.

Unfortunately, the truth never rests in the hands of a few, it seems Gree has become a household electrical appliance industry alternative. The recent "China Entrepreneur" magazine "America's" exclusive interview, President He Xiangjian "capital liberation" beauty "," talking about the role of capital. In addition, the "beauty" has increased the beauty brand to promote the refrigerator and washing machine, but also a tragedy is being staged.

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