Amazon Brand Extension Report: Automotive Sector Analysis and Strategy

This report provides a comprehensive analysis of Amazon's brand extension strategy, focusing on its potential entry into the electric automotive sector. It begins with an introduction to Amazon and the concept of brand extension, followed by a discussion of Amazon's background, existing brand values, and advertising/promotion strategies. The report then outlines the methodology used, emphasizing secondary research. Key frameworks such as Kapferer's brand identity prism, PESTEL analysis, Ansoff Matrix, and STP strategy are applied to assess market opportunities and challenges. A competitor analysis is also included. The report concludes by summarizing the key findings and implications of Amazon's brand extension plans, highlighting the competitive landscape and strategic considerations for success in the electric automotive sector. The analysis is supported by references to relevant academic and industry sources.

CW2 Brand Extension Report

Table of Contents
• Introduction
• Kapferer’s brand identity prism
• Ans off Matrix
• STP Strategy
• PESTEL Analysis for the external factor
• Competitor analysis
• Conclusion

Introduction
Amazon is an American multinational company which has its headquartered in Seattle, Washington.
The company has been founded in 1994 and today, the company is seems out to be as one of the leading
company in the market. Brand extension is defined as launching product in the new market sector. This
report is based on the Amazon Company in respect to its brand extension strategy. In this report
methodology will be discussed to achieve the best level of brand extension strategy.

Background (AMAZON)
 With rise of internet usage in market, Amazon has been growing it activities at global scale.
Market share of Amazon is 49% of US e-commerce market. They also established their web
services which is also known as cloud computing. Moreover, due to increase of competition
in market they have been also using expanding their products line at larger scale.
 The market size of Amazon is 49 % which is largest market size as compared to its
competitors such as E-Bay, Apple and Walmart. Furthermore, through continuously focusing
on brand extension, they have been able to achieve competitive benefit in market.

Existing brand values

Existing Brand Value
 The brand value of Amazon is being at top and most valuable brand in Brand Finance Global
500 ranking as exceeding US 200 billion value mark .
 In this e-commerce market, Amazon is at top defeating its competitors such as E-Bay,
Walmart etc.
 With increase shift of market into digitally, Amazon is able to satisfy customers demand at
all level.
 Also, customers has trust in brand which enhances their brand value in market at higher
level.

Amazon advertising and promotion

Methodology
In order to achieve the best level of brand extension strategy secondary research has undertaken over
new market sector has been done in this project. Amazon Company is planning to enter in the electric
automotive sector to expand the growth of company. To collect information related to new market
company has gone through internet sources, books, magazines, researches and other such information
sources.
Moreover, through this methodology Amazon is able to achieve growth and expansion at higher scale.
This leads to shift of customer focus towards brand and which also enhance the brand value.

Kapferer’s brand identity prism
The model helps the Amazon in building the business more effectively. The model implify as
one of the concept for describing the identity of a brand on the basis of several characteristics.
The diagram is also useful in analysing the core characteristics of the brand so that there must
an effective and strongest brand. The six elements in relation with Amazon includes

Elements of the prism
• Personality:
A tag line which simply suggest that what will be happened next
Culture:
Favorite pastime
Indispensable activity
Self-image:

Target market
The secondary research entertained by the Amazon Company over the automotive sector
demonstrates different factors that would support the organisation to deliver the best strategies
to achieve the massive success in new market. The research indicated that the future is the
electric segment in the automotive sector. For all types of automotive products electric vehicle
will be the preferred choices of all customers. In the existing time also people all across the
globe prefer only the eclectic automotive products that can meet the needs and requirements of
customers at the global level (Cai and Mo, 2019).

PESTEL Analysis
The political situation is favorable for the Amazon Company as the government also support the electric
automotive segment. Company needed to cope up with all laws. Society also prefers the electric
automotive segment. Technology would support the company in delivering the best level of products.
Environment free component of electric automotive will support the company.