CW2 Brand Extension Report

This report discusses the methodology and strategies of target market, target market segment, and analysis of new trends for brand extension. It focuses on Apple Inc. and its technological products and services.

Module:
Principles of Marketing
Title:CW2 Brand Extension Report
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Table of Contents
Executive Summary.............................................................................................................15
Logo.....................................................................................................................................15
Contents Page ......................................................................................................................15
Introduction..........................................................................................................................15
Methodology........................................................................................................................15
Findings................................................................................................................................15
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Appendix 2 Copy and Paste your Presentation Slides with Speaker Notes.
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Report
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Task Name of student completing task
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Executive Summary
Logo
Contents Page
Introduction
Methodology
Findings
Executive Summary
Brand extension is defined as marketing strategy
which uses by organization for marketing a product and
services with well developed image. The aim of
organization is to increase the sales and improve brand
image so that different types of strategies and planning
are formulated by management that can helps to operate
a business and supports to attain the competitive
advantages. The report is about Apple Inc. that is American
multinational company, providing different types of
technological products and services which influences number
of customers and attain the higher profitability in the changing
environment. This report discusses about methodology and
strategies of target market, target market segment and analysis
of new trend that helps to attain higher profitability.
Introduction
Brand stretching is defined as marketing planning which is
formulated by marketing manage for the purpose of increasing
sales and competitive profitability (Suryawanshi, 2020).
This report is based on Apple Inc. that is technological brand
offering the best quality and unique features of products in the
whole business environment. The aim of report is to increase
insights how to increase the brand value of chosen brand and
how customers influenced. This report is covers target market,
STP and explanation of new brand by introducing kind of
products and services.
Methodology
Apple Inc. is defined as multinational technology
brand that operates their business by designing and
developing consumer electronics, computer software, and
online services that influences the number of customers and
develop the business profitability. The brand is operating their
business by managing their operation and activities
effectively. For analyzing performing researchers uses
primary and observational method that helps to provide higher
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benefits.
 Existing brand and
Brand Values -
coverage to include key
academic definitions
explaining what a brand
is, the concept of a
brand extension and a
detailed examination of
one academic model on
branding.
(i.e.Kapferer’s Brand
Identity Prism).
Brand: A brand is a name, term, design, symbol and
any other feature that identifies one seller's good and service
that are different from those of other sellers. By using
Kapferer’s model, Apple Inc. is increasing their brand image
by launching new products and services in market effectively.
This brand maintain physique, personality, culture,
relationship, self image and reflection that can help to manage
all activities and functions effectively.
 Description of the
Target Market – a
detailed description of
the TA for the new
brand extension
supported by reference
to secondary sources
e.g., Mintel and TGI
supported by academic
coverage of STP
marketing planning
process.
The target market for successful brand such as Apple
Inc. is defined:
Segmentation: Apple Inc. is providing
technological products by using new technology and
services in competitive market which increases the
business performance. The brand is related to
segmenting in to demographic segmentation such as age,
gender, and income that can help to attracts the large
number of customers.
Targeting: The brand comprised of highly
engaged women active on digital and social media. This
brand is focuses on ages 15 to 50 years old, who valued
the high brand and wants to maintain a good status in the
organization.
Positioning: The brand is maintaining leading
position in technological advancement environment by
reaching the potential customers. This helps to increase
the sales and profitability in competitive environment.
Therefore, it is effective market planning process
which uses by Apple Inc. to manage their workings by
launching new products and attaining the higher profitability.
 Analysis of the New
Market, Including
PESTLE Analysis – This can be explained as important
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Trends – PESTLE
analysis and Ansoff’s
Grid
framework which uses by organization to analyse the
industry and factors which might be affected the
business negatively. The description of PESTLE analysis
in context to Apple Inc. is defined below;
Political factor: This factor depicts government
policy, tax policy, political stability and instability and
trade restriction which are important to consider while
running a business. Apple Inc. is planning to expand its
brand by entering in to Scotland that is new country will
help to add more customers and increase sales. The
government of Scotland is stable which supported this
brand to establish their business positively and maintain
all operation effectively.
Economical factor: This factor depicts economic
growth, interest rates, taxation, financial capabilities,
wages rates and disposable income of consumers etc. In
relation to Apple Inc., the inflation rate of Scotland and
other country is increased due to Covid-19 which
affected the business negatively as customers have
stopped to buying the products which reduces the sales
and profitability (Upadhyaya, Hughes and Houston,
2019).
Social factor: The involvement of social factor is
population growth, consumer buying behaviour and
health consciousness. Apple Inc. is operating their
business successfully by focusing on demand and wants
of their regular customers as they are demanding new
features and design in latest phones and other products
which can help to develop the business. On the side, if
organization is not providing better quality of products
then it will be affect the organizational productivity.
Technological factor: This factor focuses on
technology and innovation that helps to operate and run
the business effectively. Apple Inc. is taking
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opportunities through this factor as by using new
technology and innovation organization is increasing
their distribution channel and also launches new products
which can help to increase the sales and profitability.
The selected organization is taking the opportunity by
paying attention on customers needs and launching new
products in competitive environment which increases the
organizational performance and brand image.
Legal factor: This is relating to health and
safety, consumer rights and laws, and other legislation
that needs to follow. The selected brand Apple Inc.
wants to expand their business in Scotland by following
the all regulations and laws which are related to
employment that provides positive opportunities to
extend their brand in changing environment. On the
other side, in case of expansion of business there is need
to follow new regulations that can be challenging for
organization to operate their business.
Environmental factor: Apple Inc. is following
all environmental regulation in existing workplace and
new one where it is planning to sale their products. The
organization is contributing in CSR activities which
increases the performance and profitability. Moreover, it
reduces wastages and managing all activities effectively
by operating their business effectively.
Ansoff Growth matrix: This can be explained as
important framework that uses by Apple Inc. for the
purpose of growing their business by developing their
activities.
Market development: This strategy is related to
entering a new market using existing products: Apple
Inc. can use this strategy by entering in to new market
through selling their existing products which can help to
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add new customers and manage the all activities. As it
enters in new market where it can get new customers and
attracts the number of customers effectively.
Market penetration: This means increasing
sales of existing products to an existing market. Apple
Inc. is selected brand can use this strategy by increasing
sales of their existing products in existing market by
reducing the cost that can help to attracts the customers
more and increase sales (Di Gregorio and et.al., 2019).
Product development: This strategy is focuses
on introducing new products in existing market which
can be use by Apple Inc. for the purpose of extending
their brand and increasing values in competitive market.
In this strategy, organization needs to introduce new
product by using new technology and features which
would attracts the number of customers. This supports to
increase the sales and profitability effectively.
Diversification: This strategy mainly focuses on new
market with the introduction of new products. Apple Inc. can
be use this strategy in their industry that can helps to increase
the sales and profitability in changing environment.
From the above Diversification strategy is adopted by Apple
Inc. where in it provides new products in new market that will
helps to grab the business opportunities and attain the higher
profitability. The organization is launching new product every
year and maintaining higher brand in competitive
environment which helps to increase the organizational
productivity and capture high market share. As organization is
planning to enter in to Scotland where it will attract more
customers and increase the sales by offering better quality of
products.
 An Explanation of the
New Product (Tauber’s
Brand Extension
Tauber’s Brand Extension Options: Apple Inc. is
planning to launch new product that is iPhone 12 Pro
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Options, product
packaging, the choice
of a brand name and
brand positioning)
Max Series which will grab the high profile of customers
and provide the higher satisfaction to them as it would
contain good features and unique services that are not
available in other phones.
Product packaging: The packaging of product is
very attractive and comfortable which will help to
increase sales in changing environment. The product
iPhone 12 Pro Max would be in designing packaging that
would attracts the number of customers and develop the
business performance.
Product features and specification: The new
product iPhone 12 Pro Max is expansive edge-to-edge
Super Retina XDR displays for a brighter, more
immersive viewing experience, and a new Ceramic
Shield front cover, providing the biggest jump in
durability ever on iPhone. The camera is best of quality
that will provide facility of taking live photo, capturing
good image and others that can increases sales and
performance.
Brand positioning: This organization is maintaining good
position in competitive market as it focuses on new
technology and feature of introduced product and also
managing the all customers loyal which increases brand value
and position.
 Competition – a
comparative analysis of
your suggested brand
extension with any
competition identified
in the new market
sector (this should be
tabulated)
Comparative Analysis
Porter's five force : This is a specific model
which uses by organization to analyse the competition
and bring the changes in their products and services so
that it can maintain higher performance. Apple Inc, is
well known brand that is launching new products every
year and influencing the number of customers
effectively. To get the competitive advantages
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management are using this model that are as explained:
Bargaining power of suppliers: The power of
suppliers is high in relation to Apple Inc. as less number
of suppliers are available in market which provide better
quality of raw material. This create the challenge for
chosen organization to pay extra for getting stock. To
produce and launch the better quality of products
selected organization pays extra that reduces the
organizational profitability.
Bargaining power of buyers: The power of
buyers in is low in relation to Apple Inc. as it is best in
adopting new technology and features that offers variety
of products like phone, Mc book, I pod and others which
meets with customer's expectation. So it is good business
opportunity for organization which can help to increase
the productivity and profitability.
Threat of substitution: There is less threat of
substitution in relation to Apple Inc which provide the
business opportunities to chosen organization and
increase the profitability (Micheaux and Bosio, 2019).
The products which are providing by chosen
organization is of higher quality and design where it has
taken trade mark that can help to operate the business
and increase the performance in competitive
environment.
Threat of new entrance: There is moderate
threat of new entrance that can be create the challenge
for selected Brand Apple Inc. to operate their business.
In relation to chosen organization there is high threat of
new entrance which can be create problem in running the
organization and manage the all activities.
Competitive rivals: There is high threat of competition as
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Samsung, One Plus, and others are competitors of such brand
that can be affected the sales.
Thus, by launching the new product such as iPhone 12 Pro
Max, selected company can increase their sales and
profitability by increasing number of customers. This fill the
customers demand and maintain their standard by keeping
high quality of products. Conclusions From the above report it can be concluded that brand is the
sign, logo and image of organization that helps to increase
performance. If people are well aware from their brand then it
will be opportunity for organization to develop their business
and manage the all activities.
 Reference list Suryawanshi, V. B., 2020. Principles of Marketing
(202).
Upadhyaya, S., Hughes, M. Ü. and Houston, H. R.,
2019. Using Sustainability as a Framework for
Marketing Curricula and Pedagogy. Journal of
Sustainability Education. 20.
Di Gregorio, A., and et.al., 2019. Employability skills
for future marketing professionals. European
management journal. 37(3). pp.251-258.
Micheaux, A. and Bosio, B., 2019. Customer journey
mapping as a new way to teach data-driven
marketing as a service. Journal of Marketing
Education. 41(2). pp.127-140.
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