This research report analyzes the brand extension and brand value of Apple, including market analysis, competition, and opportunities. Findings reveal the potential for new brand extension ideas.
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PRINCIPALES OF MARKETING
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Table of Contents INTRODUCTION...........................................................................................................................1 Methodology...............................................................................................................................1 Findings.......................................................................................................................................1 CONCLUSION................................................................................................................................6 REFERENCES...............................................................................................................................7
EXECUTIVE SUMMARY Aim of this research report is to conduct the secondary research for the analysis and evaluation of brand extension process and brand value in order to develop new brand extension idea. Here in this report we have consider the current brand value of extended product line of Apple and the potential market analysis for furtherbrand extensionalong with identification and management of present market competition and opportunity with the aid of PESTEL analysis.
INTRODUCTION Brand extension is the process or effective strategy through which organization, can introduces the new category product and services in to the market with the support of existing brand value (Chintalapati,2020). In order to seal it through the network of existing brand customers.Apple is world popular provider or producer intellectual electronic gadgets in the different variety's. Its a American multinational company, headquartered in California. They have extended their into different category's and at present they are trying to develop some more new category's of products. Apple at 2020 table shipment is 29.2 % in third quarter of 2020 and recorded 17.5% market shears Year-over-year. Their is higher trends of Apple iPhones and watches at the market. This report involves the brand extension and brand value of Apple. Methodology We have have conducted the secondary research and academic research by studding some primary research article on Apple company(Milanesi, Faleri2019). For the analysisof some important factors of company in prospect of brand value, brand extension, competitor and opportunity for the development of effective brand extension ideas. Findings Existing brand and Brand Values: Brand extension is the strategies or the development step for the organisation, this is also known as brand stretching, where the company increase their product verity's by adding some more product category's (Huang, 2020) For example if company was primarily producing phones, then they can extent their business by adding the laptops on their product portfolio. Apple is having the higher brand value in terms of their picture quality, its security services and all. Almost 70 % of the people are chasing to get their personal I phone. Their is the brand equality given below in comparison to the google. Brand extension is the leveraging of existing brand value for new brand products, promotion and awareness. BrandBrand Equity% market cap Apple23432.00% Google16821.00% 1
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Target Market: Apple targeting and positioning Apple is doing the hard effort for their brand segmentation, targetting and positioning in order to take the right step for their nest brand extension actions. Segmentation:It is the process of differentiating target market in to similar smaller group in order to offer the product according to it. Apple is targeting the customers and segmenting them one the basis of their technological preference and willingness to pay for product design and functions. Targetting:This involves the targetting of customers and market place for which product is going to be produce and Apple is targeting the multiple groupsof peoples such as married, professionals and bachelors. Positioning:This involves the action of producing product and its promotion, so Apple is using using the multi-segment positioning in order to provide the variety of product for all kinds of customers demands (Liu, Hu, and Xu, 2017). 2
Segmentation typesCriteriaTarget segment DemographicAge Gender Life stages Income 19 – 46 Male- female Professionals,Bachelors, Married They are targeting the higher earners and financially stable customers(LockamyIII, 2017). Evaluation of the New Market, Including Trends For the the analysis of opportunity related to new target market is can be done on the basis present market trans with the aid of some analytical tools such PESTEL analysis and 3
Ansoff’s Grid(Miniard, Jayanti,Alvarez 2018). The brief analysis of new market in context of apple is given below. PESTLE analysis:This is the very essential tool which aid to identify the external environment strength and weakness which can effects the organisation and product planing. Political: Apple is fallowing all political lows but now at the present condition the china and Americana descenting cause the major loses due to the political issues. Economical: The decreasingincome of middle class peoples and increasing labour cost of china can effects the planing. Social:Companycantaketheadvantageofdevelopingtrendsandsocial regiments. Technological: In technological terms Apple is very updated and develop the new intellectualelectronicproducts.Andthedevelopingdemandsalongwith technological ideas it aid Apple to offer more attracting and functional products. Legal: Their is the biggest issues in terms of china manufacturing partnership. So Apple have to focus for developing the partnership with other country's. Environmental: Apple always trying to provide the best and environment safe products. And they can use the present environment condition to provide the product according to that conditional requirements. Ansoff’s Grid:This is the framework aid to plane for the product development and sealingstrategiesanditisdividedintofourparts,suchasmarketpenetration,product development, market development and diversification. And Apple is applying all these strategies in order to seal theirexisting product and develop newcustomer attractingand market statementing products. Such as they are recently expended their brand into the different market of audio products(Muroyiwa, Abratt, and Mingione, 2017). 4
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New Product: The new product of market extensions chosen by the Apple is audio related gadgets, such as headphones with capacity of 24 hours battery along with best audio quality and ear cap which can be rotatable. Competition: Apple brand extensionsBose brand extensions Apple AirPodes Max are attractive. Appleisofferingbestnoise cancellation because of their effective structure as it is made of three outward facingmicrophone,whichdetect environmental noise(Verhoeven,and Johnson 2017). Thisishandyandveryusefulfor colleagues cheating. Apple AirPodes Max is featured with the 20 hours battery capacityat every volume sating and movies playbacks . But Bose Noise cancelling Headphones 700aremorestylishthenApple headphones. They are offering the variety of colour options. Such as Blake silver and dark blue. Headphonesaredesignwiththe stainless steel. And the its ear cups are sliding and adjustable. Its very comfortable to Cary because of its lightweight, soft ear cups and best noise cancellation options(Verhoeven 5
Its pricing is high in comparison to Bose headphones. and Johnson 2017). Itsa 20 houser batterysaver butit depends on volume level, if the volume is high then battery will get dun. CONCLUSION By the completing this secondary research on present brand extension values and evaluation of new brand ideas. It has concluded that organisation need to go with further more changes in their market targeting strategies. Because in the present competitive market there is the higher amount challenges related to the product variety's and its pricing strategies. So it need to choose one of the best target market segmentation according to the present needs and values of the customers. Apple is going with development of audio products for their brand extensions. They should use some cost effective strategies in order to get more brand customers. 6
REFERENCES Books and journals Chintalapati,2020. BankBuddy. ai—Business Expansion and Marketing Dilemma: A Case Study to Discuss the Ansoff Growth Matrix Concepts Combined with Business Expansion StrategiesforExpandingintoEmergingMarkets.EmergingEconomiesCases Journal,2(1), pp.44-53. Huang, 2020. Feedback effect of online brand extension: an empirical analysis of newspapers in Taiwan.Chinese Journal of Communication, pp.1-18. Liu, Hu, and Xu,2017. Does eWOM matter to brand extension?.Journal of Research in Interactive Marketing. Lockamy III,2017, July. An examination of external risk factors in Apple Inc.’s supply chain. InSupply Chain Forum: An International Journal(Vol. 18, No. 3, pp. 177-188). Taylor & Francis. Milanesi, Faleri2019. Apple seeds in an excavated Roman amphora remained intact for 2000 yearsdespiteexposuretoabroadly-degradingmicrobialcommunity.Journalof Archaeological Science: Reports,25, pp.472-485. Miniard, Jayanti, Alvarez, and Dickson, 2018. What brand extensions need to fully benefit from their parental heritage.Journal of the Academy of Marketing Science,46(5), pp.948-963. Muroyiwa,Abratt, and Mingione,2017. The effect of vertical brand extensions on consumer- brand relationships in South Africa.South African Journal of Business Management,48(1), pp.1-10. Verhoeven,and Johnson 2017. Business model innovation portfolio strategy for growth under product-market configurations.Journal of Business Models,5(1). Verhoeven, and Johnson2017. Business model innovation portfolio strategy for growth under product-market configurations.Journal of Business Models,5(1). 7