Marketing Report: Apple Watch Brand Extension and New Product Launch

This report provides a comprehensive analysis of Apple's marketing strategies, focusing on the Apple Watch and its potential brand extension into the smart footwear market. It begins with an introduction to marketing principles and identifies Apple as the chosen brand. The methodology involves secondary research. The findings section explores Apple's existing brand values using Kapferer's Brand Identity Prism, detailing its physique, personality, culture, self-image, reflection, and relationship with customers. It then examines the target market through segmentation, targeting, and positioning (STP). The report further analyzes the new market using the PESTLE framework and Ansoff growth matrix, highlighting the trend of innovation. The new product, a smart footwear line leveraging Apple Watch technology, is explained, along with an evaluation of potential competition, primarily Nike. The report concludes by summarizing the effectiveness of brand extensions in launching new offerings. The report references books and journals to support its analysis.

Principles of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
METHODOLOGY..........................................................................................................................3
FINDINGS.......................................................................................................................................3
Existing brand and Brand Values................................................................................................3
Description of the Target Market................................................................................................5
Analysis of the New Market, including Trends..........................................................................5
An Explanation of the New Product...........................................................................................5
Evaluating Competition..............................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing principles or Principles of Marketing is the concept which agrees upon using
the marketing processes and phenomenon's effectively in development and building of marketing
strategies and plans (Sari and Gultom, 2020). The chosen brand for the report is Apple and the
chosen product for utilising the brand value is Apple Watch. It is an American Multinational
Technology company which was founded in 1976 and presently leads the IT industry and
market. The present report will be conducting research in regards to existing brand of Apple and
its watch for developing evaluation for the new product marketing and launch.
METHODOLOGY
There are number of methods and ways in which research can be conducted and data
collection processes can be used. The most common and widely used processes are primary and
secondary. For this research secondary method is used where information which already exist in
market is extracted and used for the purpose of completion of the assignment.
FINDINGS
Existing brand and Brand Values
Brand is a name given to a product or a service by the company for rendering its own
identity and uniqueness in market. In simpler words a brand is a name through which public
recognises a product or a service which exist in market.
Brand Extension is a process when company needs to and wish to expand by using one
of its established brand value of existing product or a service for a new offering. There are
certain models of brand extension one of which is Brand Identity Prism which was established
by Jean Noel Kapferer in 1996.
As said by Kapferer a strong brand can make use of all the aspects of the Prism in making
concise, clear and appealing brand image or identity in market. The model works in a Prism with
number of key elements that are as presented below in regards to Apple underneath:

(Source: Kapferer’s Brand Identity Prism, 2018) Physique is the clearest visual representation of the brand and how the brand wishes to be
perceived. Personality refers to the way the brand communicate with the world and the specific style
in which brand make its interaction. Apple brand personality showcases lifestyle,
innovation, passion, aspirations and power to users with technology (Boulocher-Passet
and et. al., 2019). Culture reflects to set of values that feeds into a brand and creates a foundation for it.
Apple culture for its brand showcases rapid innovation. Self-Image mentions a way in which a customer sees itself in a brand. The self-image
created by customers of Apple is of creativity and technologically updated (Esser and
Jernigan, 2018). Reflection states the way in which brand portrays and determines its target audiences.
Apple associate itself to vibrant, energetic people, adventurous buyers.
 Relationship relates with the nature of the bond the brand and its buyers have and uphold
in market. Apple has a loyal relationship with its customers.
Illustration 1: Kapferer’s Brand Identity Prism, 2018

Description of the Target Market
Segmentation, Targeting and Positioning (STP) is a framework which is used and for
identifying the target audiences of an organisation and a particular brand. It has three stages
which are: Segmentation is a stage where market is divided into small groups. Apple make use of
Demographic segmentation method for dividing the market. Targeting is a practice to chose one respective group form the segment for a particular
brand and offering of the firm. Apple targets the higher class society for its new brand
and footwear products (Truong, Saunders and Dong, 2019).
 Positioning of Apple is done as a luxury brand carrying huge emotional connection and
loyalty of people with it.
Analysis of the New Market, including Trends
According to the evaluation of the market and flourishing trends in it by using the
components of PESTLE framework and Ansoff growth matrix. In regards to which a major
challenge which affects Apple is market trend of innovation and regular development and the
need for company to stay updated for maintaining its leading position. For the same company
have adopted Product Development strategy of Ansoff matrix by developing new offering that is
footwear product line with technologies for supporting and keeping track of health and safety of
people.
An Explanation of the New Product
The new product of Apple which is established and using the brand image and value of
Apple Watch latest series 6. Apple watch series 6 is the latest model which incorporates features
like fitness tracking, health orientated capabilities and wireless telecommunication. Along with it
the watch has new S6 processor which is 20% more faster, has a brighter display and blood
oxygen application which is used by a new in-watch sensor (Anandanatarajan, 2019).
With the same technology and features a new product line is been established by Apple
that is its footwear range for all men, women and kids in sports segment. The shoe is build with
unique design and all the features of the watch and added features of maintaining balance in of
diet through a diet chart and keeping track of health issues of the user by filling in data and
customising the tracking feature according to user.

Evaluating Competition
The brand extensions is in footwear where Apple is bringing and developing Smart Apple
shoes like its Smart Apple watches. The company do not have exact competitors but can face
difficulty in future as Apple collaborated with Nike in developing a similar type of shoe where it
was offering Nike their technology as a chip which is inserted in their shoes for keeping a track
of steps taken by the user by wearing them. Thus, Nike can be a potential competitor of Apple
Smart Footwear in future if the company plans to move further in the market and technological
development (Alves, Fernandes and Raposo, 2016).
CONCLUSION
Through the discussion conducted in the report it is summarised that brand extensions is a
prominent phenomenon for a company to enter a market and use its existing value for
establishing new offering and making it a success.

REFERENCES
Books and Journals
Alves, H., Fernandes, C. and Raposo, M., 2016. Social media marketing: a literature review and
implications. Psychology & Marketing, 33(12), pp.1029-1038.
Anandanatarajan, D. K., 2019. Customer Reationship Management–A Strategic Tool for
Marketing.
Boulocher-Passet, V. and et. al., 2019. A Practical Approach for Developing Social
Consciousness and Responsibility in Marketing Students. In Responsible People (pp.
155-172). Palgrave Macmillan, Cham.
Esser, M. B. and Jernigan, D. H., 2018. Policy approaches for regulating alcohol marketing in a
global context: a public health perspective. Annual review of public health, 39, pp.385-
401.
Sari, Y. and Gultom, A. W., 2020. MARKETING STRATEGY IN EFFORT TO INCREASE
COMPETITIVE ADVANTAGE IN SMALL AND MEDIUM ENTERPRISES. JIMFE
(Jurnal Ilmiah Manajemen Fakultas Ekonomi), 6(2), pp.157-170.
Truong, V. D., Saunders, S. G. and Dong, X. D., 2019. Systems social marketing: a critical
appraisal. Journal of Social Marketing.
Online:
The Brand Identity Prism and how it works, 2018. [Online] Available Through:
<https://howbrandsarebuilt.com/blog/2018/12/21/the-brand-identity-prism-and-how-it-
works//>