Analysis of Apple's Brand Extension Strategies and Market Value

This report provides a secondary research analysis of Apple's brand extension process and its impact on brand value. It examines Apple's current market position, including its brand equity and target market segmentation. The methodology includes studying primary research articles and academic resources to analyze brand extension strategies and identify market opportunities. The report uses PESTEL analysis to evaluate the external environment and Ansoff's Grid to assess product development and market penetration strategies. It also compares Apple's new audio product extensions with competitors like Bose, highlighting competitive advantages and disadvantages. The report concludes with recommendations for future market targeting strategies, emphasizing the importance of cost-effective strategies to attract more customers. The report underscores the need for Apple to adapt to market changes and customer needs by developing new products.

PRINCIPALES OF
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
Methodology...............................................................................................................................1
Findings.......................................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

EXECUTIVE SUMMARY
Aim of this research report is to conduct the secondary research for the analysis and
evaluation of brand extension process and brand value in order to develop new brand extension
idea. Here in this report we have consider the current brand value of extended product line of
Apple and the potential market analysis for further brand extension along with identification
and management of present market competition and opportunity with the aid of PESTEL
analysis.

INTRODUCTION
Brand extension is the process or effective strategy through which organization, can
introduces the new category product and services in to the market with the support of existing
brand value (Chintalapati, 2020). In order to seal it through the network of existing brand
customers. Apple is world popular provider or producer intellectual electronic gadgets in the
different variety's. Its a American multinational company, headquartered in California. They
have extended their into different category's and at present they are trying to develop some more
new category's of products. Apple at 2020 table shipment is 29.2 % in third quarter of 2020 and
recorded 17.5% market shears Year-over-year. Their is higher trends of Apple iPhones and
watches at the market. This report involves the brand extension and brand value of Apple.
Methodology
We have have conducted the secondary research and academic research by studding some
primary research article on Apple company (Milanesi, Faleri 2019). For the analysis of some
important factors of company in prospect of brand value, brand extension, competitor and
opportunity for the development of effective brand extension ideas.
Findings
Existing brand and Brand Values:
Brand extension is the strategies or the development step for the organisation, this is also
known as brand stretching, where the company increase their product verity's by adding some
more product category's (Huang, 2020) For example if company was primarily producing
phones, then they can extent their business by adding the laptops on their product portfolio.
Apple is having the higher brand value in terms of their picture quality, its security services and
all. Almost 70 % of the people are chasing to get their personal I phone. Their is the brand
equality given below in comparison to the google. Brand extension is the leveraging of existing
brand value for new brand products, promotion and awareness.
Brand Brand Equity % market cap
Apple 234 32.00%
Google 168 21.00%
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Target Market:
Apple targeting and positioning
Apple is doing the hard effort for their brand segmentation, targetting and positioning in
order to take the right step for their nest brand extension actions.
Segmentation: It is the process of differentiating target market in to similar smaller
group in order to offer the product according to it. Apple is targeting the customers and
segmenting them one the basis of their technological preference and willingness to pay for
product design and functions.
Targetting: This involves the targetting of customers and market place for which product
is going to be produce and Apple is targeting the multiple groups of peoples such as married,
professionals and bachelors.
Positioning: This involves the action of producing product and its promotion, so Apple is
using using the multi-segment positioning in order to provide the variety of product for all kinds
of customers demands (Liu, Hu, and Xu, 2017).
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Segmentation types Criteria Target segment
Demographic Age
Gender
Life stages
Income
19 – 46
Male- female
Professionals, Bachelors,
Married
They are targeting the higher
earners and financially stable
customers (Lockamy III,
2017).
Evaluation of the New Market, Including Trends
For the the analysis of opportunity related to new target market is can be done on the
basis present market trans with the aid of some analytical tools such PESTEL analysis and
3

Ansoff’s Grid (Miniard, Jayanti, Alvarez 2018). The brief analysis of new market in context of
apple is given below.
PESTLE analysis: This is the very essential tool which aid to identify the external
environment strength and weakness which can effects the organisation and product planing.
 Political: Apple is fallowing all political lows but now at the present condition the
china and Americana descenting cause the major loses due to the political issues.
 Economical: The decreasing income of middle class peoples and increasing
labour cost of china can effects the planing.
 Social: Company can take the advantage of developing trends and social
regiments.
 Technological: In technological terms Apple is very updated and develop the new
intellectual electronic products. And the developing demands along with
technological ideas it aid Apple to offer more attracting and functional products.
 Legal: Their is the biggest issues in terms of china manufacturing partnership. So
Apple have to focus for developing the partnership with other country's.
 Environmental: Apple always trying to provide the best and environment safe
products. And they can use the present environment condition to provide the
product according to that conditional requirements.
Ansoff’s Grid: This is the framework aid to plane for the product development and
sealing strategies and it is divided into four parts, such as market penetration, product
development, market development and diversification. And Apple is applying all these strategies
in order to seal their existing product and develop new customer attracting and market
statementing products. Such as they are recently expended their brand into the different market
of audio products (Muroyiwa, Abratt, and Mingione, 2017).
4

New Product:
The new product of market extensions chosen by the Apple is audio related gadgets, such
as headphones with capacity of 24 hours battery along with best audio quality and ear cap which
can be rotatable.
Competition:
Apple brand extensions Bose brand extensions
 Apple AirPodes Max are attractive.
 Apple is offering best noise
cancellation because of their effective
structure as it is made of three outward
facing microphone, which detect
environmental noise (Verhoeven, and
Johnson 2017).
 This is handy and very useful for
colleagues cheating.
 Apple AirPodes Max is featured with
the 20 hours battery capacity at every
volume sating and movies playbacks .
 But Bose Noise cancelling Headphones
700 are more stylish then Apple
headphones.
 They are offering the variety of colour
options. Such as Blake silver and dark
blue.
 Headphones are design with the
stainless steel. And the its ear cups are
sliding and adjustable.
 Its very comfortable to Cary because of
its lightweight, soft ear cups and best
noise cancellation options (Verhoeven
5

 Its pricing is high in comparison to
Bose headphones.
and Johnson 2017).
 Its a 20 houser battery saver but it
depends on volume level, if the volume
is high then battery will get dun.
CONCLUSION
By the completing this secondary research on present brand extension values and
evaluation of new brand ideas. It has concluded that organisation need to go with further more
changes in their market targeting strategies. Because in the present competitive market there is
the higher amount challenges related to the product variety's and its pricing strategies. So it need
to choose one of the best target market segmentation according to the present needs and values
of the customers. Apple is going with development of audio products for their brand extensions.
They should use some cost effective strategies in order to get more brand customers.
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REFERENCES
Books and journals
Chintalapati, 2020. BankBuddy. ai—Business Expansion and Marketing Dilemma: A Case
Study to Discuss the Ansoff Growth Matrix Concepts Combined with Business Expansion
Strategies for Expanding into Emerging Markets. Emerging Economies Cases
Journal, 2(1), pp.44-53.
Huang, 2020. Feedback effect of online brand extension: an empirical analysis of newspapers in
Taiwan. Chinese Journal of Communication, pp.1-18.
Liu, Hu, and Xu, 2017. Does eWOM matter to brand extension?. Journal of Research in
Interactive Marketing.
Lockamy III, 2017, July. An examination of external risk factors in Apple Inc.’s supply chain.
In Supply Chain Forum: An International Journal (Vol. 18, No. 3, pp. 177-188). Taylor &
Francis.
Milanesi, Faleri 2019. Apple seeds in an excavated Roman amphora remained intact for 2000
years despite exposure to a broadly-degrading microbial community. Journal of
Archaeological Science: Reports, 25, pp.472-485.
Miniard, Jayanti, Alvarez, and Dickson, 2018. What brand extensions need to fully benefit from
their parental heritage. Journal of the Academy of Marketing Science, 46(5), pp.948-963.
Muroyiwa, Abratt, and Mingione, 2017. The effect of vertical brand extensions on consumer-
brand relationships in South Africa. South African Journal of Business Management, 48(1),
pp.1-10.
Verhoeven, and Johnson 2017. Business model innovation portfolio strategy for growth under
product-market configurations. Journal of Business Models, 5(1).
Verhoeven, and Johnson 2017. Business model innovation portfolio strategy for growth under
product-market configurations. Journal of Business Models, 5(1).
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