The Image Customers have of your Business

Running head: BRAND EXTENSION
Brand Extension
Name of the Student:
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1BRAND EXTENSION
Executive Summary
This report intends to analyze the concept of brand extension and for this purpose the product
Nike Business Suits as an extension of the brand Nike. For the purpose of this, the annual
report of Nike, Armani, Gucci and other peer-reviewed articles and textbooks have been
used. The report thus sheds light on the notions of brand and brand extension in the particular
context of Kapferer’s Brand Identity Prism. The report next states the target market that the
new brands needs to focus on, namely, the professionals belonging to the age bracket of 30-
44 years of age. The report next undertakes PESTLE analysis and finds that the business
market of UK is a congenial one for the product. The report next on the basis of Ansoff’s
Grid suggests the use of diversification strategy for the organisation. The report finally
concludes by concluding a competitor analysis of Nike with Gucci and Armani and finds that
the business suits that Nike intends to launch has all the necessary attributes to become a
successful brand.

2BRAND EXTENSION
Table of Contents
Introduction................................................................................................................................3
Methodology..............................................................................................................................3
Findings......................................................................................................................................4
Existing brand and Brand Values...........................................................................................4
Description of the Target Market...........................................................................................5
Analysis of the New Market..................................................................................................6
Explanation of the New Product............................................................................................7
Competition............................................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................9

3BRAND EXTENSION
Introduction
Barnes and White (2017) have defined “brand” as the overall experience or the
perception of the customers regarding the products or the services offered by an organization
and it is this perception or experience of the customers which distinguishes one organization
or product from others. This report will explore the concept of brand extension in the
particular context of the product Nike Business Suits which is seen as an attempt of the
organization Nike to extent their brand.
The American multinational organization Nike was founded by Bill Bowerman and
Phil Knight in 1964 and especially in the designing, manufacturing, development as well as
the marketing of sports footwear, apparels, accessories and others (Nike.com 2019). The
organization is currently operational in more than 170 different nations of the world and
holds monopoly in the sports footwear manufacturing industry (Nike.com 2019). For
example, the gross revenue generated by the organization in 2017 was $29.6 billion and was
ranked at the 89th largest organization of the world in terms of the revenue generated by it
(Nike.com 2019).
Methodology
The data or information which was needed for the completion of this report was
collected from the annual reports of Nike, Gucci, Armani and others. In addition to this, peer-
reviewed articles and textbooks were also to gather information regarding the theoretical
models and frameworks related to the concept of brand and brand extension. These sources of
information helped the researcher to highlight the different facets of brand extension in this
report.