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The second problem is the operating location. Number of enterprises should be how to locate? Intersection and complement them where? Crue they will become each other's market, "brothers"? Resource chain chain how and capital rationing? How to reconcile the contradictions which? These are the companies first must problem. According to the analysis, we believe that corporate diversification strategy within the industry must be careful in the assessment of risk and business management to have jumped to the eye. [Brand diversification, carefully double-edged sword] In a mature industry, the brand within the enterprise is diversified mode operation is extremely broad, such as Procter & Gamble's shampoo has Rejoice, Head & Shoulders,discount wood plastic composite Fence around the garden Pantene, Clairol and other brands, and each brand operations Excellent. Why is this? It is because of its accurate positioning and brand endowed with a difference, a supple, dandruff is a, is a nourishing, nursing is a like, so when consumers buy It can be easily distinguished. Brand diversification, and consider the most complementary of the brand positioning and consumer markets, such as a high-end brands, which occupy the high-end customers, if they want to consume extends from the high to the low coverage but will not damage the original high-end brand image, it will naturally choose a separate portal, establish a corresponding low-end brands struggle;
second is based on the consideration of consumer habits and consumption patterns, companies may also be because of the culture in which consumer groups, factors of economic, regional and other settings to operate different brands, such as Procter & Gamble, is based on the different needs of different consumers and brand diversification. However, we can see that the current wood floor rarely seen brand diversification, enterprises in brand positioning is often not considered diversified, and this is why? I believe that this is due to two reasons, first because of the wooden floor as a long-term durable goods, which can foster reputation, but difficult to cultivate loyalty, because the family would not be substantially used once and then a second time,anti-fungus yakima decking Kenya The only factor which resulted in the choice of consumers in the consumer price is not its consideration, the high-end or low-end brands is not the focus of their consideration, and the class can become a key to its selection. The second is because the brand has diversified itself "double-edged nature." Once a decision has been fully established a brand, companies can not use the original brand based on its many years of accumulation of brand, reputation has no effect,invest a lot.
More importantly, the brand diversification will confuse consumers feel thinking, in general, consumers in the senses have emotional factors, especially for demanding high-end consumer brand, which has the feeling of thinking often require items exclusivity,scratch resistant types of garden fencing exclusivity, at least has a characteristic difference between the public, once it is understood a brand doing high-end products but also doing the low-end brands, it is possible to produce psychological conflict. Such as Mercedes Benz, if it decided to make 100,000 yuan a car, even if its separate portal, for a long time, it may cause high-end customers inversive heart. I think that the brand diversification is an excellent mode of operation, but for different industries, different companies have to be treated differently, with of course never see the success of other industries think they certainly succeeded.
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