MG412 Principles of Marketing: Brand Extension Strategy Report 2021

This report provides an analysis of a brand extension strategy within the context of the Principles of Marketing, using Fitbit as a case study. It covers the methodology used for research, including primary and secondary methods to assess customer needs and market trends. The findings detail Fitbit's existing brand values, target market, and a PESTLE analysis of the new market. The proposed brand extension is the introduction of mobile phones by Fitbit, leveraging their existing technology. The report also includes a competitive analysis, comparing Fitbit to Apple. It concludes by emphasizing the importance of understanding marketing principles for real-world application and brand development. Desklib provides students access to similar solved assignments.

Principles of
Marketing

Table of Contents

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Methodology...........................................................................................................................2
Findings..................................................................................................................................2
Existing brand and Brand Values......................................................................................2
Description of the Target Market......................................................................................2
Analysis of the New Market, Including Trends.................................................................3
An Explanation of the New Product..................................................................................3
Competition.......................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Marketing can be described as the purchasing and selling actions between the organization
and the consumers in regards of the products and services offered by the company (Tronvoll,
Barile and Caputo, 2018). The chosen organization is the Fitbit and the following discussion is in
the context of the company. This report covers the review paper which includes the methodology
used in the research and findings which includes the existing brand and brand values
information, description of the target market and analysis of the new market which includes
trends, an explanation of the new product and the competitors associated with the Fitbit with
proper findings and conclusion.
1

MAIN BODY
Methodology
Methodology used in researching about the company Fitbit and the brand extension of the
company are the types of resources used in preparing the report. For example, primary research
was conducted in order to find out the customer needs and requirements and the expectations
from the Fitbit company that what the company must do with their existing technology and
therefore brand extension was researched. Secondary research was also conducted in order to
find out the market information and the competitors of the company's so that it would be able to
know about the share and size of the market and it can also be analysed that the company can
grow with the brand extension or not therefore this was the methodology used in the research
report and the review paper.
Findings
Existing brand and Brand Values
Fitbit it is one of the leading international electronic company which offers the products
and services such as smart watches and it is headquartered in California and established in 2007.
It has the market size of 45% and market share of 3% in the electronics industry and having the
trends of sales currently 60000 units. it has a brand values such as advertising campaigns and
company’s websites along with the sponsorship activities. They have earned a great goodwill by
conducting various events and the following the market trends in the industry so that they can
have the marketing strategies in order to give the tough fight with their competitors for better
sales and revenue generation and thereby they are proving the same (Ferrell and Ferrell, 2020).
Description of the Target Market
Target market chosen for the brand extension is dependent on the segmentation areas
such as the age and lifestyle of the people along with the purchase in power they are having in
the current economy. Chosen target market is based on the people between the age group of 20 to
50 and their lifestyle must be online purchasing and interested in the electronics products along
with the traditional purchasing as well. Talking about positioning of the new product then it must
be in the electronic store or in the Fitbit showroom available everywhere in the world so that the
2

distribution of the product can be easy for every customer and their reach can be very well
organised (Grubor and Jakša, 2018).
Analysis of the New Market, Including Trends
After the research on Fitbit, market trends were analysed for the company and therefore a
proper pestle analysis is conducted in order to analyse the market opportunities for the product
and how they can grow in the existing or diversify the market. It is examined that all the 6 factors
of pestle analysis such as political, economical, social, technological, legal and environmental
factors are creating opportunities for the new product brand extension for the Fitbit as mentioned
in the research report. The reason behind this is that all the factors are in the favour of the new
product of Fitbit and they can easily grab the opportunity is available in the market for the brand
extension that a Fitbit can have in the current market trends (Miller Jr, 2020).
An Explanation of the New Product
The new product for the brand extension of Fitbit is the mobile phones that they must
invent and innovate with their existing electronic Technology they are using for developing the
smart watches and the same they can use for developing the mobile phones with better features
in order to fight against the competition in the market. This can help them in diversifying their
market and product portfolio which can give them the growth and development of the company
with better expansion in the market and industry. Talking about Ansoff’s growth matrix then the
diversification domain is chosen for the Fitbit to introduce the mobile phones because it explains
the new product with the new target market (Šķiltere and Bormane, 2018).
Competition
Fitbit Apple
Strengths: Strong brand awareness and focuses
on multiple markets.
Strengths: Most valuable brand and
remarkable financial position in the market
Weaknesses: Lacks in proprietary technologies
and low global market share.
Weaknesses: They offer products in premium
pricing which only the rich class people can
afford.
Opportunities: Internet of things and artificial Opportunities: They can easily capitalise their
3

intelligence with increasing demand. company and expand the brand across the
world.
Threats: High competition and data privacy
issues.
Threats: Increasing competition in the
technology.
CONCLUSION
It is concluded that principles of marketing are an important concept to study so that it can
be applied in the real world organizations. Therefore, it is important to make a research on an
existing brand and prepare the review paper for the same for in-depth research and brand
extension activities. Hence it is essential to examine the existing brand and brand values along
with the methodology used in the research. it is necessary to determine the description of the
target market and the analysis of the new market including trends. it is significant to gain the
knowledge about the new product along with the competitors and competition in the market.
hence this report covers all such areas in order to better understand the concept of principles of
marketing by taking the real life practical example.
4

REFERENCES
Books and journal
Ferrell, O.C. and Ferrell, L., 2020. Technology challenges and opportunities facing marketing
education. Marketing Education Review. 30(1). pp.3-14.
Grubor, A. and Jakša, O., 2018. Internet marketing as a business necessity. Interdisciplinary
Description of Complex Systems: INDECS. 16(2). pp.265-274.
Miller Jr, L.M., 2020. Developing an Integrative Marketing Theory. Review of Integrative
Business and Economics Research. 9(1). pp.165-180.
Šķiltere, D. and Bormane, S., 2018. Integrated marketing communication as a business
management tool in the context of sustainable development. Open Economics. 1(1).
pp.115-123.
Tronvoll, B., Barile, S. and Caputo, F., 2018. A systems approach to understanding the
philosophical foundation of marketing studies. In Social dynamics in a systems
perspective (pp. 1-18). Springer, Cham.
5