CW2 Brand Extension Report: Amazon's Market Expansion Strategy

This report examines Amazon's brand extension strategy, focusing on its potential entry into the electric automotive market. It begins with an introduction and outlines the methodology used, which involves secondary research from various sources. The report applies Kapferer's brand identity prism to understand Amazon's brand characteristics, including personality, culture, self-image, and other elements. It then utilizes PESTEL analysis to assess the political, economic, social, technological, environmental, and legal factors influencing the company's expansion. Ansoff's matrix is used to determine the market development strategy. The report also covers the STP (Segmentation, Targeting, and Positioning) strategy, competitor analysis, and concludes with a summary of the key findings and strategic implications. References are provided to support the analysis.

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.

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.

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.

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).

STP STRATEGY
Segmentation: It refers to a process of dividing the target market into some smaller and defined categories. The
segment of customers as well as audiences refers to the various factors including demographics, needs, interests
and the location. In relation with the Amazon, people watch several movies, series and shows with snacks
(Wróblewski, 2019).
• Targeting: It refers to the term which is quiet important for the effective marketing strategy. It includes
advertising, branding, consumer experience and the operations in the business. In relation with the Amazon,
some younger people that are between the position of 16 to 34 have the Amazon subscriptions.

Competitor analysis
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.