Lipton Brand Extension Analysis

The assignment requires analyzing the market for Lipton's new coffee product, considering technological, legal, and environmental factors. It also involves determining the best technology for developing the new product, complying with legal rules, and following environmental regulations. The report concludes that a company must analyze the market before launching a new product, and brand extension can help differentiate a company's book value from its market value.

Introduction to People
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Methodology...............................................................................................................................3
Findings.......................................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The major aim behind forming this report is to understand regarding the brand extension
and its benefits to the organisation. Value of Brand and how to select the target market will be
the major aim behind the same. In this present report Unilever has been chosen for assessment.
Unilever is a British-Dutch transnational consumer goods company which has its headquarter in
London, United Kingdom. Here, the Brand chosen from Unilever is Lipton which is named after
the owner Thomas Lipton. Lipton was introduced in the year 1890. It is owned by Unilever and
its main brands are Lipton yellow label and Lipton Iced tea. It has large market share where it
covers around 45 nations in the whole world. It has already covered around 15% market of tea in
the entire world.
Methodology
Research methodology: It is a way to collect information and data with a view to make a
decision regarding the business. It includes all the research which is made through interviews,
publication research and various other techniques (Armstrong and Kotler, 2018). Different other
techniques are used for the same and research are being made.
Data collection : Data is being collected through internet which will be considered as primary
research. Also, the research has been made out of books and different Journals for this report.
Data analysis : It is being carried out to understand that data that has been collected in correct
for the report making (Shaw, 2016). The data collected is relevant in all the sense as it has been
taken from related sources. This analysis is carried out to understand that given report makes
sense and data collected is completely relevant.
Findings
Existing brand and Brand Values: Lipton company already has a big brand name in tea
industry. The net present value or the future value of the cash flows which are referred to brand
name or brand personality is known as brand value (El Sheikh and Assaad, 2018). A brand is an
intangible asset of a business, and helps in differentiating between a company’s book value and
market value. Lipton has created a big brand name in the market which is its intangible asset.
Description of the Target Market : Lipton is planning to cover those nations where its products
are not been launched yet. But other than that all the existing markets will be covered for coffee
product. The new brand extension of Lipton will be major by covering all those geographical
region where the company is already covering the market.

Analysis of the New Market, Including Trends
Ans off Matrix
Market penetration: This is the strategy which is least risky as here the existing
resources and capabilities are utilised. Here the existing products are sold to the existing
customer services. Here the customer base is also same but still with the same growth is planned
and concentrated.
Market Development : Majorly the market covered will be where there is no brand
existence.
Product and development : Lipton company is planning of brand extension by adding
coffee bags as its new product (Thomas and et.al., 2018). This will help in being strong and
growing more business of the company. Product development is always made to earn more
profits and develop a big brand name.
Diversification:It is all about entering in to the new market by developing a new product.
This will be considered as complete diversification of market and product by the company. Here
Lipton is planning of coming with new product of coffee to extend the brand and also new
market as per the geographical location has been targeted.
PESTLE Analysis
Political: Every nation has their own rules and regulation which affects the companies in
some or the other way. At the time of making entering in to new nation company needs to
understand regarding all the policies to launch the new product accordingly.
Economical: The purchasing of Lipton tea, which is for a specific class and corner
market, the financial elements like low pay, the drop-off the generation in the market, the
expansion rate may impact the purchasing example of the general population.
Social: This is a factor which helps in knowing all the elements and the taste and
preference of people In the nation. It will allow in knowing regarding the new product launch
and people will accept the same or not (Flora, Schooler and Pierson, 2018). This is a factor
which helps in knowing that where and in which area the knew coffee product should be
launched.
Technological: Lipton brand should follow the best technology for developing its new
product. This will help in being better than other brands. This will help in covering majority of

the market due to the reason that new different product will attract maximum number of
customers.
Legal: All the legal rules of different nation must be complied to run the business. Every
nation has their own rules and legal compliances which are required to be followed before
launching any new product and entering to country's market.
Environmental: Every company has to follow the rules which are made for
environment. Organisation should follow all the rules which are for betterment of environment
and future generation.
Explanation of the new product:
New coffee bags by Lipton will be made with the best processes and both dark and light
coffee bags will be available in the market (Eastman and et.al., 2016). It depends on the taste and
preference of the customer and the packaging will be very attractive so that maximum people can
get attracted towards it.
CONCLUSION
From the above report it has been concluded that when a company decides for brand
extension by launching some new product in the market. It needs to analyse the market including
trends and all other factors are required to be considered before launching the product in the
market. In addition to this it has been determined that brand is an intangible asset of a business,
and helps in differentiating between a company’s book value and market value. Lipton has
created a big brand name in the market which is its intangible asset.

REFERENCES
Books and Journals
Armstrong, G. and Kotler, P., 2018. Principles of Marketing. Sjuttonde Upplagan. Harlow:
Pearson Education Limited.
El Sheikh, S.A.H. and Assaad, R.Y., 2018. The impact of changing learning environment on
students’ learning in marketing education: A case-study applied in higher education in
Egypt. Compass: Journal of Learning and Teaching, 11(2).
Thomas, V.L. And et.al., 2018. ROLE-PLAYING IN A CONSUMPTION CONTEXT: AN
EXPERIENTIAL LEARNING ACTIVITY FOCUSED ON THE CONSUMER
DECISION-MAKING PROCESS. Marketing Education Review, 28(2), pp.89-97.
Flora, J.A., Schooler, C. and Pierson, R.M., 2018. Effective health promotion among
communities of color: The potential of social marketing. In Social Marketing (pp. 353-
373). Psychology Press.
Eastman, M. and et.al., 2016. The brand project: innovative student research in a principle of
marketing classroom. the association of collegiate marketing educatorS, p.74.
Shaw, S., 2016. Airline marketing and management. Routledge.