Brand Extension Report for Apple: Principles of Marketing

This report analyses the growth strategy of Apple through launching a new product line of clothing. It identifies the core values of the firm and the target market, and discusses key trends and PESTLE issues. The report also provides a comparative analysis and highlights how Apple's clothing line will be distinct from competing brands.

BRAND EXTENSION REPORT

INTRODUCTION
 Proper marketing activity helps the firms to earn maximum revenues in the limited
time-frame. Further, the present presentation is based on Apple company that wish to
expand globally through launching the new product line of clothing.
 Also, the report will analyse certain core values of the firm along with the growth
strategy that will helpful in giving direction to overall firm’s objectives and goals.

BACKGROUND OF CHOSEN BRAND
 Apple is well-known American multinational technology company that is expert in
selling variety of electronics, software and online services. Also, it is the world's most
valuable and fourth largest company in terms of revenue.
 Moreover, the company was founded on 1980 and in regard to market share it can be
said that it is having the largest market share among all the smartphone sellers in U.S.

EXISTING BRAND VALUE OF THE
FIRM.
 The company is focused on with the vision of making the best products on the earth.
 Also, the firm is work on values such as think different so that bests products in the
market could be delivered to large number of customers.
 Further the company believes that every person at the workplace is important and
hence each individual has the equal opportunity to make difference in society.

NEW PRODUCT AND GROWTH STRATEGY
 The new product line that apple would choose for its growth strategy would be
“Clothing” that would allow the consumers to purchase premium quality clothes wear
that are sustainable.
 Furthermore, the growth strategy of the firm could be better linked with Ansoff matrix
that allow firms to consider expansion areas under four categories such as market
penetration, product development, market development and diversification.
 The one that would be best suited for apple would be diversification where completely
new products would be provided to new customer market

IDENTIFICATION OF TARGET
MARKET
 To open up such clothing line in the new target market it is essential that target market
needs, behaviour, attitude are clearly identified through various analysis so that
resources are not wasted in any manner. Moreover, data could be collected in the form
of primary or secondary research method.

KEY TRENDS AND PESTLE ISSUES.
 In the current trends in context of environmental factors it is being noticed that
consumers are very much aware in consuming those products that are made in
environmental friendly manner.
 Moreover, certain technologies need to be incorporated by quoted firm so that large
number of clothing outfits are made available in quick manner to meet the demands of
diverse group of people.

COMPARATIVE ANALYSIS
 Though Apple company is very well-known for sales of electronic products all
over the world but with opening of its new product line in clothing, the company
might face stiff competition from the brands like H&M that is also well-known for
online shopping destination among all youths.
 Moreover, H&M is known for selling products that are sustainable and is also
under the list of top selling brands.

DISTINCT FROM COMPETING BRANDS.
 Apple would be different form the rest other brands through designs and newly added
colours that are not available in the existing market.
 Also, all the garments would be design with the apple logo that would make
differentiation with other brands.
 Moreover, environmental friendly packaging would be incorporated through avoiding
use of plastic bags so that it could be easily recycled and reuse.

CONCLUSION
 From the above presentation it can be concluded that establishing the market and brand
value is very important for those firms that wish to expand into newer regions.
 Further, the presentation had identified certain core values of apple company that wish
to introduce new product line of clothing in the market.

REFERENCES
 Books and journals
 Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-
Economy Series, 2, pp.141-149.
 Çitilci, T. and Akbalık, M., 2020. The Importance of PESTEL Analysis for
Environmental Scanning Process. In Handbook of Research on Decision-Making
Techniques in Financial Marketing (pp. 336-357). IGI Global.
 Ma, Q., Wang, M. and Da, Q., 2021. The effects of brand familiarity and product
category in brand extension: An ERP study. Neuroscience Research. 169. pp.48-56.