Brand Extension Strategy: The Case of Electra Bicycle Company

Nowadays, a strong brand is one of the most important intangible assets of the organization. That's why using a successful brand in a new market segment is a welcome strategy for many companies. The problem of using branding tools in Russian companies is explained by the absence of a universal algorithm for creating them. In this connection, only a few of them use a systematic approach to the brand management. Similar situation was reflected in the marketing activities of the Electra Bicycle Company Russia. At the moment, the company does not have a comprehensive solution for managing brand Electra. However, after entering a new segment of consumers and changing the price policy, additional measures were needed to increase the number of consumers. The problem of brand perception by consumers and the lack of an updated brand-consumer communication system underlined the need to develop branding tools. This paper represents a comprehensive approach to the development of brand extension strategy on the example of a bicycle company Electra. The theoretical part consists of a review of the basic tools and branding approaches. Particular attention is paid to the concept of brand associations and methods for their evaluation. Brand model, the basic attributes of the two product categories, is designed to assess the profile brand associations, were created after company analysis. Automated model was created for the convenience of analyzing the survey results, which allows to create a brand-concept map. In addition, a marketing mix was developed for brand extension strategy. The event was also proposed as the first step in the evaluation and translation of brand attributes. It should be noted that the result of the work is not only a developed project for a particular company, but also a tool and an algorithm for its creation that can be applied in other companies.