CW2 Brand Extension Report: Amazon's Electric Automotive Strategy

This report analyzes Amazon's brand extension strategy, specifically its planned entry into the electric automotive sector. It begins with an introduction to brand extension and outlines the methodology used, which includes secondary research from various sources. The findings section discusses Amazon's existing brand value, its application of the brand identity prism, and its target market, focusing on demographic segmentation. The report then analyzes the new market using PESTEL and Ansoff grid frameworks, highlighting the favorable political and social environments for electric vehicles and the company's market development strategy. The report also addresses the competitive landscape, mentioning key competitors like Tesla and Tata. The conclusion summarizes the key points, emphasizing the competitive nature of the electric automotive sector and the need for strong strategies for success. References to books and journals are also included.

CW2 Brand Extension
Report

Executive Summary
Amazon Company is planning to launch the new products in electric automotive
segment. Company is expanding its business to enhance the existing growth rate of company.
Table of Contents

INTRODUCTION.................................................................................................................................4
MAIN BODY........................................................................................................................................4
Methodology.....................................................................................................................................4
Findings.............................................................................................................................................4
CONCLUSION.....................................................................................................................................6
REFERENCES......................................................................................................................................7

INTRODUCTION
Brand extension is defined as launching product in the new market sector. This report
is based on the Amazon Company in respect to its barnd extension strategy. In this report
methodology will be discussed to achieve the best level of brand extension strategy. New
market will be analysed associated with the brand extension strategy will be discussed in this
project. Trend will be introduced. Competition associated with the new product launch will
be discussed in this project. Different aspects related to brand extension will demonstrate in
this project.
MAIN BODY
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.
Findings
Existing brand and brand value
Amazon Company is currently one of the biggest brand associated with the business
environment at the global level. Company has been expanded at the global level. In many
sector company is catering its services and products at the global level which has supported
the organisation to deliver the maximum level of business outcomes against the operations
entertained by company (Baek, Nam and Chang, 2017). Company is trying to expand in the
electric automotive sector that would support company to achieve more effective outcomes
against the business operations entertained by the company. Automotive sector is among the
emerging sector all across the globe. In the future people are going to refer only the
automotive cars and vehicles that can meet the needs and requirements of the people at the
global level. The products are pure and full of environment friendly component that would
reduce the pollution and improve the environment. Amazon Company is utilising the brand
identify prism to achieve the best level of brand extension project.
Brand identity prism

Brand identity prism suggested by the Kapferer involves various elements that can
denote the overall value and beliefs of brand. This brand identity prism comprises with
different factors that demonstrate the brand in the best way possible. The Amazon Company
is comprises with different sector that demonstrate the physique of the brand (Shah, Hashim
and Omar, 2018). Company has a diversified personality which has allowed the brand to cater
the need of different market segments. The culture of company is innovative which would
allow the organization to deliver the best level of automotive products in target market.
Company has established the strong relationship with all internal and external stakeholders
associated with the business operations of organisation. Other components like self image
and reflection are also favourable for the organisation that would support the brand in
achieving the best level of outcomes against the brand extension practice of company.
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). Target market is huge for
the company as the brand has already expanded at the global level which has allowed the
company to sale its product at the global level. The research has also indicated that company
would use demographic segmentation strategy. On the basis of the income of people
company will target to only the middle class and upper class people in market. With the
support of social media and other promotional tools company would position its product in
market.
Analysis of new market
New market can be analysed with the support of Pestle Analysis and Ansoff grid.
PESTEL Analysis
The political situation is favourable 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.
Ansoff grid
Amazon Company is utilising the market development strategy part of the Ansoff
model. This would support the company to launch its electric automotive products in the
market. This model has guided about this strategy to boost the growth of company.
New product
Amazon Company is aiming to enter into the electric automotive sector to boost the
growth of the company. This sector is among the emerging sector at the global level and
would support the company to achieve the massive success in market (Chanda and Moharir,
2020). As the organisation already been contained an effective brand value which would
support the organisation to engaged with the customers at the global level. As the sector is
very competitive which allowed and required to carry strong brand image in order to gain
success in sector. Company will sale electric cars at the initial level.
Competition
Amazon Company will receive the massive competition from companies like Tesla,
Tata and many other. This sector is very intense and competitive so Amazon required
forming the better strategies and approaches to achieve the massive success in the new
market. As the brand value of company would support the organization to gain the strategic
focus of all potential customers associated with the sector.
CONCLUSION
Amazon Company is planning to enter into new market sector called as electric
automotive. The sector is highly competitive which required company to form the best level
of strategies to achieve the massive success in market. Company will sail the products at the
global level.

REFERENCES
Books and Journals
Baek, S. K., Nam, S. H. and Chang, B. H., 2017. Feedback effect of brand extension in cable
networks established by parent newspaper brands: applying expectation
disconfirmation theory. Journal of Media Economics. 30(4). pp.173-190.
Cai, Y. and Mo, T., 2019. When independents favor far extension: Self-construal, brand
extension, and brand concept consistency. Social Behavior and Personality: an
international journal. 47(1). pp.1-12.
Chanda, R. S. and Moharir, N., 2020. Cult brand extension influence on brand equityand
customer loyalty. Indian Journal of Ecology. 47(spl). pp.96-101.
Shah, N. U., Hashim, N. M. H. N. and Omar, N. A., 2018. Credence and personal factors as a
direct cause of brand extension evaluation: Does perceived fit matter. Malaysian
Journal of Consumer and Family Economics. 21(1). p.19.