Brand Extension Strategy for Bentley Motors Limited

This report discusses the brand extension strategy adopted by Bentley Motors Limited to introduce luxury watches in the market. It covers the market analysis, target audience, and competitive landscape. The report also explores the benefits and challenges of brand extension.

PRINCIPLES OF
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
METHODOLOGY..........................................................................................................................1
FINDINGS.......................................................................................................................................1
Existing brand and Brand Values................................................................................................1
Explanation of target market.......................................................................................................2
Analysis of New market, including trends- PESTLE analysis....................................................2
Explanation of new product with implement of Brand extension option....................................3
Comparative analysis of brand extension with competitive identified in new market sector.....3
CONCLUSION................................................................................................................................4
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.................................................7

INTRODUCTION
Marketing is defined as an activity mainly emphasis on building strong brand image in
market so that maximum number of people are attracted towards their products and services. The
present report discusses the procedure of brand extension decided by Bentley Motors Limited
which is engaged in manufacturing and marketing of luxury cards and SUVs having
headquartered in Crewe, England. The company is expanding its brand by introducing luxury
watches in market place for increasing standard of higher income group of people. The net
revenue generated by Bentley Motors Limited in the year 2019 was £2,092 million (Global sales
revenue of Bentley Motors. 2020).
METHODOLOGY
The present study will be carried out by conducting secondary research where topic related
information are collected through different secondary sources such as books, journals, online
articles etc. Along with this, carrying out research on rivals’ strategies is also important to make
decision regarding brand extension in more successful manner at market place (Aas, Breunig and
Hydle, 2017).
FINDINGS
Existing brand and Brand Values
A brand is a logo, symbol or name which represents the distinct identity of company in
customers’ mind thus it is important for the management to manage brand using some effective
strategies. In this context, there are some models used for building strong brand image in market
which are discussed in brief as under:
Kapferer's Brand Identity Prism
According to this, brand perform their work with use of several creative and distinct
aspects. It exists in the form of a hexagonal prism that manage task with six different
characteristics in order to define the company brand. Top management and team of Rolls-Royce
utilise Kapferer's model to demonstrate products and services as a strong brand. This also aids
organisation to extend new products as per company goodwill and brand. Luxury watches are
introduced by Bentley motors to enhance and improve their market share (Bai and et. al., 2019).
Summary
1

According to appendix 1, this is identified that Bentley motors is known as a luxury
brand that gain a massive appreciation and contentment from buyers. Innovative approach is the
best feature that is used to maintain similar image and value among luxury watches of products
in market.
Explanation of target market
With selecting a particular market Bentley motors design strategy that is used to devise
and attract a specific area and group of individuals. As per reference, this is determine that
increase in variety of Bentley products is done through introducing luxury watches section. This
is also used for determining appropriate audience for new product. STP model is used by
management to perform work with efficiency (Consiglio, Lotfi and Zenios, 2018).
Summary
As per analysis of appendix 2, the market of luxury watches is divided into two parts that
includes demographic segmentation and income status. The entity is mainly managed and
targeted according to the upper class section and economy of society. Moreover, position of
products is done with the help of social media marketing (Ordu-Akkaya and Soytas, 2020).
Analysis of New market, including trends- PESTLE analysis
This is an external environment that is selected with the screening model that is used by
organisation for performing work at global level. External and internal factors is analysed that
helps to understand impact of business operations. As per reference to this, Bentley motors carry
out the PESTLE analysis for identify of external environment and their impacts on organisation
operations (Dixit, and Tiwari, 2020).
Summary
According to the appendix 3, this is determining that strong political conditions support
brand extension for Bentley motors. Brexit create challenges for the brand due to which it is
complex for company to advertise company products. Further, brand target only the upper
section of society. It results the market for middle and lower is untapped which reduce possibility
to earn money from other section of market. With the use of latest technology Bentley motors
design their watches that attract more number of customer's. Legal and environmental factor
leads to target the market by imposition of managing work as per individual goodwill.
2

Explanation of new product with implement of Brand extension option
Tauber's growth matrix consists fur different options from which one is selected by
management as a brand strategy. It also encompasses new and multi brands, line extension as
well as brand extension (Kimball and et. al., 2018).
Summary
With monitoring the appendix 4, this is inferred Bentley motors select the option for
brand extension and brand strategy. With the analysis of different strategy’s capability
management boost and enhance the financial performance of organisation. To work with this
purpose, organisation come with luxury watches in market with the aim of attracting upper class
society.
Comparative analysis of brand extension with competitive identified in new market sector
Bentley motors is introducing the new section that consists luxury watches for extending
the brand. There are different watches will have designed and developed with the use of latest
technology that feature smart aspects for attracting upper section of society. There are different
luxury brands exists which satisfy and fulfil needs of customers at global level. LVMH, Bentley
motors, Luxottica etc. identify opportunity for entering into the market of luxury watches section
(Narayan and Sharma, 2016).
3

(Source: Deloitte Global Powers of Luxury Goods, 2018)
CONCLUSION
It can be concluded from the above report that brand extension is an effective way to uplift
brand of an organisation in market. For this, the management needs to undertake various theories
and models in order to make impact on public at large scale and develop brand image among
their rivalries. It is important to conduct market research with the help of using primary and
secondary sources of data so that fluctuations in market can be easily examined. It makes easy
for management to make accurate decisions and plans for further development of brand.
4
Illustration 1: TOP 10 LUXURY GOODS COMPANIES BY SALES

REFERENCES
Books and Journals
Aas, T.H., Breunig, K.J. and Hydle, K.M., 2017. Exploring new service portfolio
management. International Journal of Innovation Management, 21(06), p.1750044.
Bai, L. and et. al., 2019. Improving portfolio performance of renewable energy stocks using
robust portfolio approach: Evidence from China. Physica A: Statistical Mechanics and its
Applications, 533, p.122059.
Consiglio, A., Lotfi, S. and Zenios, S.A., 2018. Portfolio diversification in the sovereign credit
swap markets. Annals of Operations Research, 266(1-2), pp.5-33.
Dixit, V. and Tiwari, M.K., 2020. Project portfolio selection and scheduling optimization based
on risk measure: a conditional value at risk approach. Annals of Operations
Research, 285(1-2), pp.9-33.
Kimball, M.S., and et. al., 2018. Portfolio rebalancing in general equilibrium (No. w24722).
National Bureau of Economic Research.
Narayan, P.K. and Sharma, S.S., 2016. Intraday return predictability, portfolio maximisation, and
hedging. Emerging Markets Review, 28, pp.105-116.
Ordu-Akkaya, B.M. and Soytas, U., 2020. Does foreign portfolio investment strengthen stock-
commodity markets connection?. Resources Policy, 65, p.101536.
Online
Global sales revenue of Bentley Motors. 2020. [Online]. Available through:
<https://www.statista.com/statistics/386296/british-luxury-car-brand-bentley-global-
sales-revenue/>
5

APPENDICES
APPENDIX 1 Kapferer’s Brand Identity Prism
This model is depicted in context of brand extension of Bentley Motors Limited as follows:-
APPENDIX 2: STP Model
STP model is applied to determine the target market for Rolls Royce as follows: -
Segmentation: It is defined as division of market into different segment on the basis of
geographic, demographic, psychographic and behavioural pattern. Bentley Motors Limited
introduces luxury watches for which they segment market according to demographic.
Targeting: Bentley Motors Ltd. target market according to social status thus targeting
richer section of society who can easily afford to buy their expensive products.
Positioning: Luxury watches will be placed into market through social media marketing
which makes direct impact on customers’ mind and make easy to sell their products into richer
section of society.
APPENDIX 3: PESTLE Analysis
Element Description
Political The political situations of UK is stable that makes easy for Bentley Motors
Limited to carry out brand extension and achieve growth in competitive
6

market.
Economical Brexit may bring complications for Bentley Motors Limited due to decrement
in value of pound over a period of time. Thus, it is important for management
of Bentley Motors Limited to consider this factor while launching its new
product into market.
Social Higher income group are mainly targeted by Bentley Motors Limited for its
new product thus ignoring lower and middle income group may affect their
market image in society due to social class difference.
Technological Inbuilt advanced technology in new luxury watches can easily attracts the
attention of targeted customers. Digital media to promote its new product
helps Bentley Motors Limited to create awareness in market.
Legal UK government has various laws and regulations which are essential to
comply with by every organisation but there is chances of non-compliances.
Thus, if Bentley Motors Limited fails to comply with any laws then they may
get legal consequences, brand image getting down etc. This will restrict
company for brand extension.
Environmental Bentley Motors Limited promises to manufacture its products with less
possible amount of carbon emissions. It drives brand to build its marketing
image and getting attention of targeted customers.
APPENDIX 4: TAUBER’S BRAND EXTENSION OPTIONS
New brand: This strategy is mainly emphasis on introducing new brand into market with
an objective of getting an attention of public and increase their financial position among their
rivals.
Multi brands: Under this strategy, several brands are used in product category. It
facilitates with a method of segmenting within a particular category, even when it is difficult to
maintain such flanking brands in addition with this association with parent brand.
7

Brand extension: This strategy is mainly emphasis on leveraging the existing known
brand to extend the brand in form of entering into new product segment. It provides support in
uplifting the scale and size of brand in future.
Line extension: This strategy is undertaken when existing developed brand name is used
to introduce a new product in similar product segment. It facilitates brand in achieving growth
and future development in an effective way.
From the 4 options discussed above, it is observed that brand extension is considered as
most suitable strategy that Bentley Motors Limited should adopt where launching its new luxury
watches into rivalry market. It assists an organisation to uplift its brand value as well as image in
customers’ mind.
8