PRINCEPLES OF MARKETING REPORT 1000 word repo

1000 word report explaining the new brand extension.

PRINCIPLES OF
MARKETING REPORT

Table of Contents
INTRODUCTION...........................................................................................................................1
METHODOLOGY..........................................................................................................................1
FINDINGS.......................................................................................................................................1
Existing brand and Brand Values................................................................................................1
Description of Target Market.......................................................................................................2
Analysis of New Market, Including Trends - PESTLE analysis.................................................3
Explanation of New Product through Tauber’s Brand Extension Options..................................4
Comparative analysis of brand extension with competition identified in new market sector.....4
CONCLUSION................................................................................................................................5
PPT...................................................................................................................................................6
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is the activity concerned with creation of awareness among people regarding
the products and services offered by entity at market place. The aim of this report is to facilitate
brand extension of Rolls Royce by introducing luxury watches within the market. Rolls Royce is
a luxury automotive producer that is engaged in segments such as civil aerospace, marine,
energy, defence aerospace and automotive. The brand has its headquarter situated within
England, United Kingdom. As per the reports of 2018, this firm generated overall revenue of
£15,729 million.
METHODOLOGY
Mainly there are two methods of collecting data for carrying out research, primary and
secondary. Primary research is the one in which use of questionnaire, surveys, focus groups and
interviews is done in order to collect fresh data to carry out study. As per the telephonic
interview, it can be drawn that the luxury watches introduced by Rolls Royce would be a good
way through which the concerned brand would be able to enhance its market share and profits.
Further, it is acknowledged that these luxury watches are equipped with all kinds of tech features
and characteristics owing to which it will gain extensive attention from customers. In addition to
this, it is drawn that the new product is capable of disrupting the market with its innovative
characteristics. Apart from this, it is recognised that Rolls Royce is a leading brand in luxury
market which undertakes measures to come up with innovative products at rapid intervals of
time.
FINDINGS
Existing brand and Brand Values
Brand can be referred to as the name, designing, symbol, term or any other distinct
feature that creates a unique image of seller in the eyes of purchaser. This is what distinguishes a
company and its offerings from other rivals present at market place. In addition to this, brand
extension can be referred to as a marketing strategy which is adopted by a business entity in a bid
to use its brand name for marketing of a new product category in which the organisation was not
earlier dealing.
Kapferer’s Brand Identity Prism
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This is identified as a concept which was developed by Kapferer as per which, a brand is
recognised in accordance with its unique characteristics. This is acknowledged to be a hexagonal
prism which consists of 6 characteristics defining a brand. The management of Rolls Royce is
making use of this model to portray a likely image of company after execution of brand
extension by launching luxury watches.
The illustration of this model in context of the new watches being introduced by the brand is
presented as follows:-
Illu
stration 1: BRAND IDENTITY PRISM OF ROLLS ROYCE
(Source: Self Generated)
Summary: It can be summarised that Rolls Royce is a luxury brand which has in past
gained massive appreciation and contentment from customers for its innovative approach and
elegant persona. The firm is looking forward to maintain the same image while launching luxury
watches at market place.
Description of Target Market
It is important for a firm to effectively target the audience as per the nature as well as
type of their organisational offerings. In this relation, Rolls Royce is gaining entry into luxury
watch segment. The management of Rolls Royce is making use of STP model to select the target
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market and effectively position its new offerings among them. This model is explained in context
of context of luxury watches as follows:-
Segmentation: The market can be segmented on 4 bases, namely, geographic,
demographic, psychographic and behavioural. A brand segments the market as per the nature and
characteristics of product. The market for luxury watches is segmented on the basis of
demographics.
Targetting: The aspect according to which the luxury watches would be targetted is
income status. In this relation, the top management of this firm has decided to target the elite
section of society as the watches would be priced by making use of premium pricing strategy.
Thus, it can be said that such watches would not be easily affordable for middle and low sections
of society.
Positioning: The watches being launched by Rolls Royce at market place would be
positioned within the target audience by leveraging social media marketing. This would enable
the brand to gain the attention of people towards its watches having lavish and hi tech features.
Analysis of New Market, Including Trends - PESTLE analysis
PESTLE Analysis
This is a macro environmental analysis model that is taken into use by firms with a view
to gain knowledge of the influence that external factors place upon the operations of an entity. In
this relation, the management of Rolls Royce has conducted this analysis with a view to identify
the effects of external environment upon the launch of luxury watches of this brand at market.
Summary: It can be summarised that political and economic conditions of England are
strong enough to support the increment in market share of Rolls Royce after the launch of luxury
watches. Social and technological factors tend to present opportunity to the respective brand to
come up with new features that has the capacity to meet the needs and demands of people. Legal
and environmental factors have a high scope of non compliance which may put the operations of
entity at risk.
Ansoff Matrix
This is an analytical model that takes into account 4 types of growth options that can be
considered by an entity for carrying out development and expansion. Rolls Royce has opted for
product development out of the 4 matrices in order to execute brand extension. In this regard, the
top management of this luxury brand has decided to introduce luxury watches. This would
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provide aid to the organisation in inflating its existent sales volume and revenues in the
upcoming course of time.
Explanation of New Product through Tauber’s Brand Extension Options
Tauber’s Growth Matrix illustrates that there are 4 primary choices that are available to a
company in terms of its brand strategy. The 4 choices are acknowledged to be new brand, multi
brands, brand extension and line extension.
New brand: This strategy is concerned with launch of a new brand within the market
place to significantly gain the attention of people.
Multi brands: This is concerned with the usage of multi-brands, that is, more than 1
brand within a product category. This is a strategy that offers a methodology of segmentation in
a specific category, even though it is essential to do management of such flanking brands and
their relation with parent brand.
Brand extension: This strategy involves the usage of an already established brand name
with a view to gain entry into a new product category. This is done with a view to facilitate
growth and expansion of the brand in terms of scale and size.
Line extension: This can be referred to as a strategy which includes the usage of an
already established brand name in a bid to introduce a new product within the same product
category. This is regarded to be yet another effective strategy that is used by organisations to
execute brand growth and development.
On the basis of above discussion of model, it is analysed that Rolls Royce is executing
brand extension by introducing luxury watches at market place. With this, the firm is aiming to
inflate the existing image and value of brand as perceived by the customers prevailing at the
market.
Comparative analysis of brand extension with competition identified in new market sector
Rolls Royce is establishing a strong image within global luxury market by introducing
luxury watches having hi tech and unique features that can appeal to customers in an effectual
manner. There are a large number of brands that have been leading the luxury market by
providing products and services of high quality. In this relation, the top brands pertaining to
luxury market are recognised as being LVMH - Louis Vuitton Moët Hennessy, The Estée
Lauder, Compagnie Financière Richemont SA, Luxottica Group SpA, Kering SA etc. Thus, it is
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significant for Rolls Royce to ensure that the organisational offerings are capable of gaining the
attention of a large number of individuals pertaining to the luxury market.
(Source: Deloitte Global Powers of Luxury Goods, 2018)
CONCLUSION
Marketing is a crucial aspect for every corporation. Further, it is analysed that brand
extension is considered as an effective way of inflating existing level of brand value and brand
image at market place. In addition to this, it has been analysed that there are various models
which provide assistance to a brand in facilitating brand extension in an effective and efficient
manner. Apart from this, it is recognised that secondary and competitor research are 2 effective
methods to collect information for executing brand extension strategy. Additionally, it is
identified that market is generally segmented as per income status for luxury products, thereby
targeting elite class section of society.
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Illustration 2: TOP 10 LUXURY GOODS COMPANIES BY SALES

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REFERENCES
Books and Journals
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Management. SAGE Publications Limited.
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Business Research, 95, pp.401-407.
Gbadamosi, A., 2019. Contemporary Issues in Marketing: Principles and Practice. SAGE
Publications Limited.
Ottley, G., Bechwati, N.N. and Sisodia, R., 2019. Conscious Marketing: Meaning and
Application. Handbook of Advances in Marketing in an Era of Disruptions: Essays in
Honour of Jagdish N. Sheth, p.25.
Thorpe, A.S. and Roper, S., 2019. The ethics of gamification in a marketing context. Journal of
business ethics, 155(2), pp.597-609.
Bacon, D.R. and Schneider, A.B., 2019. Exploring Sources of Marketing Knowledge for Small
Business Decision Makers. Journal for Advancement of Marketing Education, 27(1).
Tollin, K. and Christensen, L.B., 2019. Sustainability marketing commitment: empirical insights
about its drivers at the corporate and functional level of marketing. Journal of Business
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Saad, G., 2019. The marketing of evolutionary psychology. Journal of Business Research.
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