Brand Extension: Strategies and Analysis

This report focuses on brand extension in which they identify their brand values so that they can make strategies and model according to them. Success of brand extension is depend on target market that organisation choose to provide their products and services and analysis of market with the help of Ansoff and PESTLE analysis.

Brand Extension

EXECUTIVE SUMMARY
This report focuses on brand extension in which they identify their brand values so that
they can make strategies and model according to them. Success of brand extension is depend on
target market that organisation choose to provide their products and services and analysis of
market with the help of Ansoff and PESTLE analysis. This research report covers all important
models that help in identifying and analysing target market i.e. STP model. When organisation
want brand extension then they should identify their competitors so that they can make unique
products and their marketing strategies.

Table of Contents
INTRODUCTION ..........................................................................................................................4
METHODOLGY.............................................................................................................................4
Findings............................................................................................................................................4
Existing brand and Brand Values:..........................................................................................4
Description of the Target Market: .........................................................................................5
Analysis of the New Market, Including Trends.....................................................................5
An Explanation of the New Product ......................................................................................6
Competition............................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFRENCES...................................................................................................................................8
Books and Journal..................................................................................................................8

INTRODUCTION
Brand extension is the term that refers to the extension of brand name with the
introduction of new products in the market. It is very important for the success and growth of the
business. Brand extension is the strategy that can be adopted by organization so that they can
enhance their brand awareness in the market and make their business for long term period. In this
respect, Lucozade is undertaken for analysing brand extension. Lucozade is the firm that deals in
soft drinks that makes different types of drinks which include energy and sport drinks (Bashala,
2016). In this report it covers all important models that help to analyse that where brand
extension can work.
METHODOLGY
This report undertakes qualitative research methodology that gives relationship between
data analysis and data collection which expressed in words. They focuses on open ended
questionnaire in which they allowed their clients or customers to give their suggestions in their
words with no limit. It helps in answering the question that why they think so about the particular
topic. This type of methodology helps in analysing the factors the affect on brand extension of
Lucozade products because they are now focusing on sport drinks that need proper research.
Findings
Existing brand and Brand Values:
A brand defines companies product and services with a unique logo or name so that it
would be easy to recognise and make a comparison between one from the other (Chen and Bei,
2019). It could be easily understand by Kapferer’s Brand Identity Prism that is described below:
Kapferer’s Brand Identity Prism
This model is assailable in order to uplift brand of the company by putting efforts
towards these elements:
 physique: it is the main basis of branding of the company which shows a unique lookout
of brand name and logo. This is the most essential part of branding for Lucozade
company to get successful exposure into the market.

 Personality: This shows the influence of brand into the market through its texture and
persona that discovers through its colour, texture and message on the logo.
 Culture: Lucozade culture shows its behaviour of fun and creative in the retail industry
which reflects good taste with innovative flavours.
 Relationship: it shows customers and seller relationship. Lucozade has set a trusted
relation with their customer in terms of quality drink provider.
 Reflection: it shows the consumer of the brand. Lucozade manly deals with all age
groups and make a reflection in with more concerned people (Harini, 2019).
 Self image: Lucozade expose their brand irrespective of customers image as it deals of
all kinds of people whether in income, age, gender or their prescription by knowing their
taste and preference.
Description of the Target Market:
STP model: It is an effective model of marketing to make segments , targets and position the
area of customers.
 Segmentation: Lucozade make their segments as per demographical factors which
include drinks from small age groups to adults, lower to high income groups so to cover
large market.
 Targeting: Lucozade's main target area is the existing country and other area of the
customer who prefer to expand their sales of and flavoured and sports drinks.
 Positioning: This refers the accurate image of the brand into the market which Lucozade
has target for its brand brand extension by taking customers reviews and experience.
Analysis of the New Market, Including Trends
PESTLE analysis: It is a tool to analyse macro external factor of the company to improve
productivity and profitability.
 Political: Lucozade has affected their operations with political factors due to change in
Brexit, imposition of taxes and heavy duty on imports and exports which creates a
negative aspect for its new brand extension.
 Environmental: The organisation has to contracts their operations to environmental
friendly uses of materials (Jiang, 2018).
 Social: The company must focus on employee welfare and customers hospitality due to
their operations and brand serving.

 Technological: Lucozade has using best technologies to reduce their products which
filter their drinks and gives it good taste.
 Legal: It is the threat of the company, government has creating much influence on its
operations through laws and Acts.
 Economical: Economical factor has the opportunity to grow into the market by making
contribution to economical cash flow and countries GDP.
Ansoff grid.
It has four factors:
Market penetration: Lucozade making its product to grow into existing market to retain
existing customers.
Product development: it is mainly focus on renovating a product and launch it into fresh
market.
Market development: it is focus on fresh market with the present product. Lucozade follows
this strategy to make successful.
Diversification: it sets target for moving into new area with new and fresh product (Kuksa,
2019).
An Explanation of the New Product
Lucozade has focusing on its new brand extension for their new product of sports drinks
so that it could garb the attention of those individuals who has left from their reach. They are
mainly use recycle materials for their product packaging which does not offended society and
any creature into the planet. They have decided to give it a brand name with coffee crunch which
defines a crispy and favoured drink.
Competition
Basis Lucozade PowerAde
Product area It has established for
specialisation in soft drinks for
all age groups.
The company is focused on
providing drinks to a particular
market for setting a middle age
for their priority.

legal influence The company has more
influence over their operations
because of their large product
line and revenue.
The company enjoy less
influence due to all finding
over factors of acts and laws.
CONCLUSION
It is concluded from the above report that there are many models that helps in analysing
the factors that influence brand extension. It is analysed that with the proper application of above
considered models are helping in making successful of their brand extension. The success of
brand extension ids depending on many factors such as proper analysis of market factors, target
market, etc.

REFRENCES
Books and Journal
Bashala, W., 2016. The Brand extension of the Pick N Pay supermarket into Pick N Pay
clothing (Doctoral dissertation).
Chen, Y. S. A. and Bei, L. T., 2019. The effects of logo frame design on brand
extensions. Journal of Product & Brand Management.
Harini, E. N., 2019. Startegi Komunikasi Pemasaran Konten Instagram toyotatrust. id Dalam
Upaya Membangun Brand Extension (Doctoral dissertation, UNIVERSITAS BAKRIE).
Jiang, Y., 2018. R7. How and Why Life Transition Influences Brand Extension Evaluation. ACR
North American Advances.
Kuksa, Y., 2019. Cross-gender brand extension strategy in the beauty industry context (Doctoral
dissertation).