Principles of Marketing: Brand Extension for PlayStation Smartwatch

This document discusses the brand extension strategy for PlayStation Smartwatch in Principles of Marketing. It covers the existing brand values, target market analysis, market analysis, and product explanation.

PRINCIPLES OF
MARKETING

TABLE OF CONTENTS
Executive summary.........................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAINBODY...................................................................................................................................4
Existing brand and brand values..................................................................................................4
Description of the Target Market................................................................................................6
Analysis of new market for the PlayStation Smartwatch............................................................6
Explanation of the new product...................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Executive summary
It has provided understanding about significance of marketing in the brand extension.
Kapferer’s brand identity prism model has used for the exiting brand to analysed it’s core values
and features in the global market. STP model used to determine target market for the new brand.
Ansoff’s matrix and Pestle analysis also has been applied to identify opportunities for the new
brand and it’s products. In last, brand extension for the new product succeeded and improves
quality of life of the user.

INTRODUCTION
Marketing is referred to the key activities that undertakes by company to influence the
buying behaviour of the customer or services. It includes advertising, selling and supplying
products to the user. To understand role of the marketing has an example of the PlayStation 4. It
is 8th generation home Video game console that is developed by Sony Computer Entertainment.
The market share of the PlayStation 4 is about 54.44% which is quite high as compared others. It
is popular brand so it sells worldwide. It denotes market size of the product is wide that why it
has strong global presence across the world. Sales of Sony’s PlayStation 4 gaming has risen over
108 million unit. It is easy to interpret that sales trends for the brand is higher. The brief study
provides understanding current values of the brand which is being extended.
MAINBODY
Existing brand and brand values
Kapferer’s brand identity prism
It is quite famous model that supports organizations to build brand, enduring brand
identities which reflects its core values as well. The framework also assist business to
communicate with people clearly and transparently. To analyse brand values of PlayStation 4
will use this framework. The key element of the framework is described below as follows:
Physique:
The first elements described physical characteristic of the brand. It is important for the
company and customers as well. There are various marketing communication media uses by
PlayStation 4 to attract number of customers from the brand’s physical aspects (Achinas and
et.al., 2019). People can use mobile as keyboard in the game and gets more battery out of their
control. In addition, it is convenient to take anywhere and posses slim screen etc. physical
appearance attracts customer when it launched in the technology industry. The colour of the

brand is black which is a part of physique. There can be variant colours but PlayStation colour
will never change.
Personality:
It is another element that denotes character of the brand or image of the brand in
customers mind. The brand personality of the PlayStation 4 can be understood through the
version of PlayStation videogames. In addition, brand promises to public that it offer high quality
features in the product and improve their entertainment by offering new thrilling games in the
single gadget. It denotes brand has established good brand image in the customer mind.
Culture
Brand culture is important element of the model that plays essential role in brand
expansion and differentiate brand from others. PlayStation 4 has good brand culture because it
has high demand in global market. The target audience of the brand are hardcore gamers (i.e.
mid to late twenties male) and mainstream gamers (slightly older or less male) as well as
children. Sony has targeted this audience for the PlayStation 4 which causes easy to capture
large market shares of the product in the market.
Relationship
It is important element of the kapferer’s model that expresses relationship is essential for
the brand popularity. Sony’s PlayStation 4 has ranked the No. 3 as most intimate brand among
millennials such as people between the age of 18 to 34. The PlayStation 4 brand has established
good relationship with the people due to it’s services and products as well. PlayStation 4 is the
brand of Sony which is highly reputable and trustable brand for the people. It highlights brand
has strong relationship with people (Ahn, Park and Hyun, 2018).
Self-Image
PlayStation 4 organize a campaign “Remastered version comes with the Left Behind” for
the public to express brand features and values which differentiate brand from other videogames.
By the campaign expresses number action-adventure games in the PlayStation 4 i.e. Far Cry 5,

Shadow of the Colossus and Uncharted etc. Thus, brand differentiate itself from other brands and
builds strong brand image in the global market.
Reflection
It is the last element of the model which express that brand is a customer reflection. In
other word, how a brand portrays its target audience and influences their experience. PlayStation
designs games and it’s feature to focus on the target audience so that each type customer gets
values of their money (Vrtana and Gogolova, 2020). The brand has goal “to create a desired
expression of the PlayStation brand”.
By the above elements can be interpret that PlayStation 4 has strong brand values across the
world.
Description of the Target Market
PlayStation 4 makes plan to launch it’s new product such as “PlayStation Smartwatch”. Brand
applies various model and methods for the brand extension. To target market, audience for the
new product uses STP model. It is marketing tool that supports organization to target it’s market,
customers and positioning of the brand. The model is explained as follows:
Target market
Target market can be defined as the group of potential users to whom organization
desires to sell it’s product and services so that in return generate high profit margin on the
products. The market segmentation is further divided into four market segmentations i.e.
demographic, psychographic, behavioural and geographical segmentation. Play station 4 follows
market segmentation strategy to target potential customer for the new brand extension. So, brand
use demographical segmentation in which includes age, gender and income of the customers are
taken in the consideration. The main geographical segment of the PlayStation Smartwatch is UK
and the European market (Aithal, 2016). PlayStation’s demographic segmentation classified
market of the PS Smartwatch in male and female and young and old age people. PS4 targets
social class as well that is subdivided into different classes i.e. Upper middle class and higher
class. Thus, PS4 targets it’s audience for the new brand extension because it know currently
Smartwatches has wide scope in the global market because everyone wears watches in their

hands and desires it give them trendy look. So, PS smartwatch can influence it’s market share by
influencing customer’s demand for the product.
Analysis of new market for the PlayStation Smartwatch
Pestle Analysis
It is analytical tool that is used to determine external environment of the business and it’s
impact on the business performance, productivity and operations. PlayStation Smartwatch is new
brand that has targeted UK as target market for brand extension purpose (Vallati and Grassi,
2019). To analyse scope and trends of smartwatches in the UK market uses pestle analysis
framework by PlayStation Smartwatch.
Political factors
Political stability in the giant markets is the great opportunity for the PS Smartwatches
because it does not have to face any political barriers because political stability declines all the
barrier in the giant markets. So, it provides opportunity for the brand expansion. PS
Smartwatches has opportunity to expand based on the UK’s government support for
smartwatches. Government enhances their efforts for the smartwatch because it helps to keep
data secure and alerts people about their fitness and others. another opportunity for the PS
smartwatches is that UK has good technology performance so it can offer online retailing
services to the customer as well (Christodoulou and Cullinane, 2019).
Economical factors
UK country has high economical stability that is golden opportunity for the brand
because it can sell it’s product in developed countries effectively as result can generate high
revenue on the products. PlayStation Smartwatch is the new brand which possess more features
like data saving, calling, location trackers, health device trackers etc. so it become easy to market
the product more aggressively, on the basis of expectation of the customer which increases for
buying the products. Another opportunity is this UK’s people has good disposable income so
they have potential to buy premium products. PlayStation Smartwatch can sell its product on
good price to the potential customer and can generate good economical profit.
Technological factors

UK has high dependencies on the digital technologies which can give positive impact on
the brand extension because PlayStation Smartwatch is digital device. It is portable and keeps
various features (Tsatsoula, 2018). So, it becomes easy to attract customer towards the new
product and can influence demand of the products in the customer by offering online home
delivery services. Sony can expand it’s brand by offering mobile application to the customer that
supports them to select PlayStation smartwatches as per their requirements that develops higher
competitiveness and generates revenue as well.
Socio-cultural factors
UK has good technology and financial performance that makes country highly developed
globally. There has high adaption of digital technologies i.e. Smartwatches. So, company can
boost it’s sales revenue by offering highly featured PS Smartwatches. In addition, Company can
offer special services with the new products to the potential customers such as elegant watch
cover and carry bag that attracts them towards product (Loredana, 2016).
Legal factors
UK’s government has imposed various laws like environmental regulation, labour related
regulation and taxes on the products that are required to abide. Government has improved patent
protection as well that is another opportunity for the Sony because it do not have to face different
challenges in protecting it’s branded information and designs. So company can promote it’s new
products PlayStation smartwatch in the UK market effectively.
Environmental factors
Environment become major issue for the government and public as well so they require
that product which does not impact environment and public health negatively. UK has high
demand for the environmentally friendly products. PlayStation Smartwatch is portable
technology which is designed to make people smarter for their health and supports them to alert
about their health, fitness and personal data as well. It is environmentally friendly products
because it does not release any harmful rays which gives negative impact on the people health
and environment as well.
Ansoff’s Matrix

Ansoff’s matrix is a strategic planning technique that supports organization to identify
it’s product and market growth as well (Tatlow-Golden and et.al., 2017). Ansoff’s matrix uses
for the PlayStation Smartwatch to develop growth strategy for the market. It contains four
different growth strategies for the market and product growth which are described as follows:
Market penetration
The strategy focuses on the existing products and wants to expand it’s product in the
known market. most of the organization uses this strategy to penetrate market effectively through
the existing product.
Market development
It is second market growth strategy in the model it supports organization to focus on new
market with existing products. It is good strategy to expand business in the global market
through existing product (Rivera, 2017).
Product development
It is product expansion strategy that supports organization to focus on the new product
with the existing market. In other word, when organization has high market share and good
customer base then it is known as existing market, in that situation company can expand brand
portfolio effectively.
Diversification
It is quite risky strategy that is applied by organization when the product is completely
new and introduce in the completely new market. it is quite risky strategy because in the strategy
has both market and product are completely new so it requires more research and effective
products.
PlayStation Smartwatch is completely new product for the people but it targets exiting market
i.e. UK. So, it denotes product development strategy uses by Sony for brand extension purpose.
Explanation of the new product
Taubar’s Brand extension

Brand extension is the strategy that is used by existing brand to promote a product or
brand in different categories. It is also known as marketing strategy or brand stretching in which
organization uses existing brand equity to influence brand equity of the new product (Shaw,
2016). It contains different types for the brand extension but Sony applies product from
extension strategy for the new brand extension.
Product from extension
It is line extension strategy that is applied by organization when it launches brand in
different form from the current or present form. Play station 4 is present brand which has
launched by Sony but now it offers completely new product i.e. PlayStation Smartwatch. It is
entire new product category from the existing product PS4 videogames so, it is known as a brand
extension instead of a product form extension.
Product packaging
Product packaging is another important element for attracting customer for the product.
Structural packaging will use for packing the product because it will convenient for the people to
take anywhere and gives elegant look as well. Customized structural packaging facilities will
provide to the customer which gives values to the customer and builds good brand image in the
customer’s mind for the product.
The brand name of the product is PlayStation Smartwatch that puts pressure on the customer
mind and attracts them to buy products. PS4 is already has strong global presence in the market
and PlayStation Smartwatch is another brand of the Sony which is designed to understand needs
of the people. So, it become easy for the company to influence brand popularization in the
customer’s mind (Soomro, Issani and Nasim, 2016).
Competition
PlayStation Smartwatch is completely new products and has wide features i.e. it is
portable and contain tracking devices, data saver and others etc. can put pressure on the
competitors and influence demand of the product in the customers. Apart from this, company
have to face tough competition while brand extension because there are various competitors i,e.
Apple, Google and Microsoft who also has similar product at optimum price.

CONCLUSION
Whatever models and strategies used for the brand extension will be successful because
analytical tool provided understanding about the external environment of the company while
Ansoff’s matrix helped to develop product development strategy while tabular’s brand extension
strategy supported to analyse line extension of the brand. Packaging and competition were the
major factor which assisted to analyse growth of the product in the business market. Brand
extension for the new product will be successful and improves quality of life of the user.

REFERENCES
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