David Aaker 05.Should You Take Your Brand to Where the Action Is外文翻译.pdfVIP

Vertical extensions are sometimes a strategic imperative, but they can be dangerous. Tread carefully. Should You Take Your CONCENTRATED Brand to Where the Detergent Action Is? by David A. Aaker When market s turn hostile , it s no surprise that managers are tempted to extend their brands verti- cally-that iS/ to take brands into a seemingly at- tractive market above or below their current posi- tions . And for companies chasing growth, the urge to move into booming premium or value segments also can be hard to resist . The draw is indeed strong; and in some instances, a vertical move is not merely justifie d but is actually essential to survival - even for top brands, which have the advantages of econo- mie s of scale, brand equity, and retail clout . But leveraging a brand to access upscale or downscale market s is more dangerous than it first appears . In fact, the battlefield is littered with dead and wounded brands that should serve as a warning to managers who are thinking about such extensions . Before making a move, then , managers should ascertain whether the rewards will be worth the risks . How great is th e opportunity? Should th e David A. Aaker is the E. T. Grether Professor of Market- ing and Strategy at the Haas School of Business of the University of California at Berkeley. His last article for HBR was Building Brands Without Mass Media (fanu- ary-Eebruary 1997), coauthored by Erich foachimsthaler. DRAWING BY DAVID HORN 135 brand retain its current position The challenge