好了，凌晨3点，终于把作业做完，其实今天还有些事情发生，比如大大和倪老师见面，和简的小矛盾，和今天带森森到动物园玩，都该记录。可是想睡觉，明天写，不是，是今天晚上写吧。我现在是早上3点了，怎么忘了。等会帮大大查点电脑的资料就睡，她想买个新电脑。

2008、10、15  2：57am CHICAGO TIME

Juanchen

Brand marketing

Bob Mullenbach

14^th October 2008

Should you take your brand to where the action is?

        This week I do have some problems. Let me start with the questions I have:

       From reading the paper, I don’t really clean about the concept of vertical extensions, I didn’t

see any concept of it, maybe it’s the basic concept for this book, after reading this paper, and I

understand it as people extend their brand by assess downscale markets or upscale markets.

     Another question is why it’s not surprise that the mangers are tempted to extend their

brands vertically when markets turn hostile. Because in my opinion, if the market turns

hostile, I will try to find out the problem in the brand and solve it. But not hurry to extent the

brand.

         From this paper, there are 2 way for a brand to vertical extensions: move up market or

down market. To leverage and protect the value of the original brand are the two challenges

while taking advantage of the new opportunity. No matter move down or up market, the

extension is better if using a sub-brand. Which has its own name and support by its parent

brand?

      If the parent brand has good reputation and good image, it’s easier to open down market.

By the support of parent brand, sub-brand can get the core of parent brand’s image, credibility

and prestige, and it’s the lower price, lower quality. All seems should be good, but there are 2

things: 1 the sub-brand need its’ own characteristics; should has some difference between

parent brand. Not only for its cheap price.2 downscale market many hurt the parent brand.

Because when the brand moves in a downscale market, the parent brand could lose its stature

as a high-price brand .Let me an assumption: If one day, Chanel launch a sub-brand called xxxx,

it’s price is much more lower (like H&M), and has a lower quality, I don’t think few years later,

 Chanel has the same reputation, or the same price as today. Even the Chanel brand didn’t

change anything, and this also will confuse its loyal costumes. A downscale move has a

potential danger for parent brand.

       So different, in my opinion accessing a upscale market  at the beginning is very hard, a

brand wants open a high-end markets, needs a new brand personality, new quality, brand

image, serves … ...it will take lot of time, money to make the improvements. It’s hard for me to

accept an upscale brand which parent brand is mainstream or downscale, it must has some new

technical, new idea.(totally different from its parent brand).It’s hard ,sometimes the new brand

do has so many personality, but sometimes people  hard to accept. Since the sub-brand is new,

it should focus on new potential customers and some customer want buy upscale brand but

could not afford. There could be a big potential market.

      No matter you move your brand to up or down scale market, you know both the

opportunities and the risks. You should know you brand well, when you plan an upscale or

down scale move, repositioning the entire brand. Launch a new brand is a safety way to extend

the brand.