Brand Extension of Rolls Royce: Luxury Watches in Market

PRINCIPLES OF
MARKETING

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.................................................2
Explanation of New Product through Tauber’s Brand Extension Options..................................2
Comparative analysis of brand extension with competition identified in new market sector.....3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5
APPENDICES.................................................................................................................................6
APPENDIX 1 Kapferer’s Brand Identity Prism..........................................................................6
APPENDIX 2: STP Model..........................................................................................................6
APPENDIX 3: PESTLE Analysis...............................................................................................7
APPENDIX 4: TAUBER’S BRAND EXTENSION OPTIONS.................................................8

INTRODUCTION
Marketing can be referred to as the activity which is aimed at developing a strong image
of the brand within the public at large. The current report seeks to gain an insight into the
procedure of brand extension carried out by Rolls Royce, an automotive brand of UK. The entity
is considering to extend the brand by launching luxury watches in market place designed keeping
elegance, class and richness in mind. The total revenue generation of Rolls Royce for the year
2018 was £15,729 million.
METHODOLOGY
The following study was conducted by carrying out secondary and competitor research. The
former refers to a research whereby information is gathered from books, journals, online articles
etc. Competitor research is the methodology where competitive analysis is carried out for a brand
to determine its relative positioning within the market place.
FINDINGS
Existing brand and Brand Values
A brand is defined as the distinct symbol, design or name which creates a unique identify of a
seller in front of the customers. It is important to effectively manage a brand by opting out for a
suitable brand strategy. In this relation, some of the brand models and theories are discussed in
context of Rolls Royce as follows:-
Kapferer’s Brand Identity Prism
As per this, a brand has several unique and distinct characteristics. These are present in the form
of a hexagonal prism which has 6 characteristics to effectually define a brand. The top
management team of Rolls Royce has decided to make use of this model for portraying a solid
and strong image of the brand at the time of brand extension via launch of luxury watches.
Summary: As per the analysis of Appendix 1, it is said 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.
1