Brand Extension Report

This report discusses the brand extension strategy of Amazon Company in the electric automotive sector. It includes methodology, market analysis, target market, and competitor analysis.

CW2 Brand Extension
Report

Table of Contents
INTRODUCTION................................................................................................................................3
REFRERENCES..................................................................................................................................7
Books & Journal:.............................................................................................................................7

INTRODUCTION
Amazon is an American multinational company which has its headquartered in Seattle,
Washington. The company has been founded in 1994 and today, the company is seems out to be as
one of the leading company in the market. Brand extension is defined as launching product in the
new market sector. This report is based on the Amazon Company in respect to its brand extension
strategy. In this report methodology will be discussed to achieve the best level of brand extension
strategy.
Background (AMAZON)
With rise of internet usage in market, Amazon has been growing it activities at global scale.
Market share of Amazon is 49% of US e-commerce market. They also established their web
services which is also known as cloud computing. Moreover, due to increase of competition in
market they have been also using expanding their products line at larger scale. The market size
of Amazon is 49 % which is largest market size as compared to its competitors such as E-Bay,
Apple and Walmart. Furthermore, through continuously focusing on brand extension, they have
been able to achieve competitive benefit in market.
Existing Brand Value
 The brand value of Amazon is being at top and most valuable brand in Brand Finance
Global 500 ranking as exceeding US 200 billion value mark .
 In this e-commerce market, Amazon is at top defeating its competitors such as E-Bay,
Walmart etc.
 With increase shift of market into digitally, Amazon is able to satisfy customers demand at
all level.
 Also, customers has trust in brand which enhances their brand value in market at higher
level.
Methodology
In order to achieve the best level of brand extension strategy secondary research has
undertaken over new market sector has been done in this project. Amazon Company is planning to
enter in the electric automotive sector to expand the growth of company. To collect information
related to new market company has gone through internet sources, books, magazines, researches

and other such information sources. Moreover, through this methodology Amazon is able to
achieve growth. and expansion at higher scale. This leads to shift of customer focus towards brand
and which also enhance the brand value.
Kapferer’s brand identity prism
The model helps the Amazon in building the business more effectively. The model implify
as one of the concept for describing the identity of a brand on the basis of several characteristics.
The diagram is also useful in analysing the core characteristics of the brand so that there must an
effective and strongest brand. The six elements ts in relation with Amazon includes-
Elements of the prism
 Personality:
 A tag line which simply suggest that what will be happened next
 Culture:
 Favourite pastime
 Indispensable activity
 Self-image:
 purchasing power
 legal authotation
Target market
The secondary research entertained by the Amazon Company over the automotive sector
demonstrates different factors that would support the organisation to deliver the best strategies to
achieve the massive success in new market. The research indicated that the future is the electric
segment in the automotive sector. For all types of automotive products electric vehicle will be the
preferred choices of all customers. In the existing time also people all across the globe prefer only
electic automotive products that can meet the needs and requirements of customers at the global
level (Cai and Mo, 2019).
Ansoff Grid
Amazon Company is utilising the market development strategy part of the Ansoff model.
This would support the company to launch its electric automotive products in the market. This
model has guided about this strategy to boost the growth of company.
New Product: Amazon Company is aiming to enter into the electric automotive sector to
boost the growth of the company. This sector is among the emerging sector at the global level and
would support the company to achieve the massive success in market (Chanda and Moharir, 2020).

STP STRATEGY
Segmentation: It refers to a process of dividing the target market into some smaller and
defined categories. The segment of customers as well as audiences refers to the various factors
including demographics, needs, interests and the location. In relation with the Amazon, people
watch several movies, series and shows with snacks (Wróblewski, 2019).
Targeting: It refers to the term which is quiet important for the effective marketing strategy.
It includes advertising, branding, consumer experience and the operations in the business. In
relation with the Amazon, some younger people that are between the position of 16 to 34 have the
Amazon subscriptions.
Competitor analysis
Amazon Company will receive the massive competition from companies like Tesla, Tata and
many other. This sector is very intense and competitive so Amazon required forming the better
strategies and approaches to achieve the massive success in the new market. As the brand value of
company would support the organization to gain the strategic focus of all potential customers
associated with the sector.
Conclusion
Amazon Company is planning to enter into new market sector called as electric automotive.

The sector is highly competitive which required company to form the best level of strategies to
achieve the massive success in market. Company will sail the products at the global level.

REFRERENCES
Books & Journal:
Escalada, S.M., 2019. Amazon, estrategia y gestión de marca en torno a la relevancia de los
contenidos. adComunica, pp.219-244.
Wróblewski, M., 2019. Amazon, Rotten Tomatoes i wszystkożercy kulturowi.
Rastoin, M., 2020. «Unorthodox». Donna, religione e libertà: una serie Amazon 2020. La civiltà
cattolica, 171(4077), pp.291-295.
Naranjo and et. al., 2020. Cambios en la estructura narrativa de las series de Amazon. El caso de
Mindhunter.
Neda and et. al., 2020., Amazon “Hakan Muhafız”. Dördüncü Kuvvet Uluslararası Hakemli Dergi,
3(1), pp.56-76.
Tuffs, P.S., Rapoport, R. and Tseitlin, A., Amazon Inc, 2019. Using canary instances for software
analysis. U.S. Patent 10,318,399.
Ma, Q., Wang, M. and Da, Q., 2020. The effects of brand familiarity and product category in brand
extension: An ERP study. Neuroscience Research.
Prados-Peña, M.B. and Del Barrio-García, S., 2020. How does parent heritage brand preference
affect brand extension loyalty? A moderated mediation analysis. Tourism Management
Perspectives, 36, p.100755.
Chiu, C.M., Huang, H.Y., Weng, Y.C. and Chieh-Fan Chen, M.D., 2017. The roles of customer-
brand relationships and brand equity in brand extension acceptance. Journal of Electronic
commerce research, 18(2), pp.155-176.
Joshi, R. and Yadav, R., 2017. Evaluating the feedback effects of brand extension on parent brand
equity: A study on Indian FMCG industry. Vision, 21(3), pp.305-313.