MG412 Principles of Marketing: Audi Smartphone Brand Extension Report

This report examines the potential brand extension of Audi into the smartphone market. It begins with an introduction to brand extension and its importance, followed by a discussion of the methodology used, which primarily relies on secondary research. The findings section delves into Audi's existing brand values, including an analysis based on Kapferer's Brand Identity Prism. It then describes the target market, segmentation, targeting, and positioning strategies for the new smartphone product. The report analyzes the new market using PESTLE analysis, exploring political, economic, social, technological, legal, and environmental factors. It also applies Ansoff's Matrix to explore market penetration, product development, market development, and diversification strategies. The report explains the features of the proposed Audi smartphone and analyzes its competition, comparing it to industry leaders like iPhones and Samsung. The report concludes that marketing is essential for enhancing product awareness and achieving company goals, emphasizing the importance of strategic marketing for the successful launch of Audi smartphones. The report also includes references to relevant books and journals.

Principles of Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
METHODOLOGY..........................................................................................................................1
FINDINGS ......................................................................................................................................1
Existing brand and brand values : ..............................................................................................1
Description of the target market:.................................................................................................2
Analysis of the new market, including trends:............................................................................3
Explanation of the new product :................................................................................................4
Competition : ..............................................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Brand extension is the essential process to establish a new product strategies for the
company. Through which company can make good profit and enhance the value of brand.
Present study will be based on Brand Extension of Audi Smart phones. The new brand extension
for Dove Would be Audi Smart phones. Audi can adopt this product line strategy for making
more profit. The aim of the study is to explore the new brand extension for the company as well
as Market size, trends and sales which can be find the most recent trends and brand value.
Present study also representing the new product goal study in order to make the best outcome
results and goals. Present report collects data in order to explore the new phones of Audi. In
2015 Audi market share was 6.15%. As per data market share for Audi between 2014 and
October 2018 had a range between 4.82 and 8.66 %. Audi follows the recent trends and current
marketing strategies to sale the product in the market.
METHODOLOGY
Present research will be based on secondary research where data has been collected from
internet, books or the websites. Research main purpose is to explore the new idea for the
company in order to get the new brand image in the market. Audi has a big range of brand value
that helps company to make new product extension that is mobile phones. So in order to that,
Report data or a information is enough to gathered from secondary method in order to conclude
the result or findings.
FINDINGS
Existing brand and brand values :
Brand is a term which represents the company symbol, logo, name, word through
company explaining their product aim and features. Combination of more than one elements
known as brand identity.
The basic purpose or the concept of brand extension is to explore the company abilities
by launching new product under existing brand name. The another innovation by the company
known as a “The Parent Brand”.
Kapferer Brand Identity Prism
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Brand is not just about name as per Kapferer brand is a passion or brand is a love marks.
As per the Kapferer has given some following elements which express the value or the concept
of branding.
Brand Physique: Brand has always having some specific physic through which they
represented in the market. Physique tells about the company specifications and qualities.
Example : Audi having a excellent physics of its car models luxurious and royal appearance.
Brand Personality: Brand has also have personality that helps to communicate with
clients in order to build up the customer image of the product. Such as Audi having a wonderful
personality in Automotive brands which shows German most expensive Olympics quality
services which having 4 rings that shows company value and rick performance.
Brand Culture : Another recipient of Kapferer brand identity prism which shows
company culture and values this makes company structure more effective and influencing. Audi
adopts modern culture to gain personalized benefits, training and development options for its
employees.
Relationship : it is the another element of the Kapferer brand identity prism which shows the
company relationship with their suppliers, customers. Once company build up a good relation
with the customers. They definitely get good response from the market.
Reflection : Brand itself is the customer reflection that represents the new emerging new growth
and developing results in order to meet out the best productive outcomes and growth strategy.
Audi tends to build up a good image in front of the market or buyers which seems to be
addressing. Such as Audi represents the lavishing and luxurious services for upper class
customers.
Self image: Brand itself represents their own image which express the values and effective
leadership goals. Some certain attitudes towards the certain brands. Audi needs to make some
online campaign in order to sustain and maintained the good connection with the buyers as per
the Kapferer brand identity prism.
Description of the target market:
Audi target the premium class customers according to their luxurious and high class level
(General Motors Launches Marketplace for In- Car Shopping, 2019). As per the new
techniques and modern world. As per the Mintel Company should be taking new effective
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development area. For Audi smartphones Audi should need to set middle and premium class
buyers in order to attract the large market expansion.
STP
Segmenting : Segment for the new brand extension would be all kind of age group people.
Targeting : Audi smart phones are should be available for upper or middle class people in order
to expand the brand awareness or sales outcomes.
Positioning : Positioning of the Audi is very high and premium it affect the overall client
upliftment and effective goals.
Analysis of the new market, including trends:
PESTLE
Political : Political factors might be affect Audi smartphones in terms of telecommunication act
or the uncertainty of the changes in policies. Moreover, it looks like a strong competing policies
in order to beat the political challenges.
Economical: Sales of New smartphones by Audi is based on the economic growth of the
country. Economic factors might change the buyers preference, their income level. In order to
get over from the economic challenges. Company needs to analyse the competition policies to
deal with the economic challenges.
Social: In order to enhance the new product awareness. Company should be focused on social
welfare and follows some social policies to get customer attraction. Audi should analyse what
actually buyer want from smartphones which is different features from existing ones.
Technological: Technological factor is the advantage for the company. Audi can invest on the
green technologies with TDI and e-tron projects in order to attract customer attention.
Legal: Germany is a constitutional state with all organs being subject to the constitutional order.
A federal constitutional court supports basic law which guarantee every individual citizens and
human rights.
Environmental: Environmental current green movement trends are shaping consumers vehicles
consumer vehicles purchases and their environmental policy takes into action. Audi needs to
adopts all effective and required environmental policies in order to meet out the customer
preferences.
Ansoff's Grid
Market Penetration
3

Market penetration is the process where Audi needs to focus on selling Audi
Smartphones into existing markets. In this Audi make a good strategic and promotional strategy
in order to make good impact on the sales volume of Audi smart phone. This strategies based on
competitors and needs and wants of consumers.
Product Development
Product development is the another approach of Ansoff's model in which company aims
to introduce new products into existing markets. This new plan required effective new
competencies and requires business to develop modified products which can appeal to existing
markets. In this strategy Audi needs to be take productive strategy to develop the existing
product or services by applying effective strategy goals. Packaging of the product is little bit
different from other phones.
Market development
in this strategy where company wants to sell their existing product or services into the
new market where they want to sell. Through this process, company can earn more profit from
the new market and enhance the company brand name as well.
Diversification
In this diversification where the Audi can develop new product to make some product
diversification. Audi take this approach to enhance the market expansion where they going to
launch new Audi smartphones in the market.
Explanation of the new product :
New product of the Audi is New Smart phones of Audi with some new advanced features
which is available for smartphone lovers. Product of the Audi is new Smartphones, Company use
the same logo of the company which represents four rings on the products.
Competition :
Audi smartphones having huge competition in the market where already many smart
phones are present. The biggest competitors of the company are I phones, Samsung, one plus etc.
competition analysis is the most important process in order to analysis the competitors strategy.
That helps Audi to make good impact on the overall development process.
Features I phone Android Audi Smartphone
Speed High High High
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Accuracy High Medium Medium
Quality High Medium Medium
Appearance High Low Medium
CONCLUSION
As per the above report it has been concluded that, marketing is the most essential tool to
enhance the product awareness and goals in order to meet out the customer or company needs.
Present study discussed new brand expansion growth for Audi where the company will planning
to launch new smartphones with some advanced features. Study explained industry analysis with
Pestle and Ansoff's Grid model. Study also used elements in order to enhance the new brand
product. Study explained about the new product target customers or the new strategies of the
company in order to get the customer attraction. Company adopt product diversification
approach that helps to grab new market share and new growth for the new company development
process and goals. In order to meet down the structure company also need to followed marketing
strategies and goals to make good appearance in the market in order to full fill the best
development goals.
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REFERENCES
Books & Journals
Al-Bostanji, G. M., 2015. Impact of applying of Ansoff model on marketing performance for
Saudi foodstuff companies. Journal of Marketing and Consumer Research. 15. pp.71-81.
Armstrong, G. and et.al., 2015. Marketing: an introduction.
Bonelli, M., 2017. Leadership Within Strategic Management: Measuring Corporate Equity
Value Using Igor Ansoff's Strategic Posture Analysis (Doctoral dissertation, Alliant
International University).
Cardoso, E. A. R. P., 2017. Examining the differences of the internationalization strategies of
two of the major brands in the smartphone industry-Apple inc. versus Samsung
electronics(Doctoral dissertation).
Castro, R. B., 2016. Apple Inc.–A Marketing Success Story.
Shakil, M. and Kabir, A., 2016. Rebranding and marketing communication of STYLUS mobile.
Shaw, S., 2016. Airline marketing and management. Routledge.
Tanner, J. and Raymond, M., 2015. Principles of marketing. University of Minnesota Libraries
Publishing.
Turlais, V., 2016. BUSINESS SCENARIO PLANNING FOR DECLINING
INDUSTRY. Journal of Business Management. (11).
Online
General Motors Launches Marketplace for In- Car Shopping. 2019. [Online]. Available through
:<http://www.mintel.com/blog/automotive-market-news/general-motors-launches-
marketplace-for-in-car-shopping>.
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REFERENCES
Books & Journals
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