MG412 Marketing Report: Brand Extension Analysis & Strategy

This report analyzes a brand extension strategy, focusing on the introduction of sugar-free chocolates. It identifies the target audience, which includes children, millennials, and individuals with health concerns like obesity and diabetes. The report delves into the STP (Segmentation, Targeting, and Positioning) marketing process, outlining the segmentation strategy based on age and preferences, targeting specific customer groups, and positioning the product with a focus on quality and affordability. The report also discusses the marketing environment, research requirements, and the overall marketing strategy for the new brand extension, including distribution and potential for expansion into other markets. The report also focuses on the importance of the sugar-free chocolate, which is also available for the people with diabetes. The report also focuses on the price of the product which is kept competitive.

Principles of
Marketing

Target Market- STP marketing process is the way through which a company can
differentiate the individuals into different categories in order to ascertain the target customers to
whom the goods or services are sold. For this purpose, the target audience is the kids and
millennials who need variety of tastes and flavour in this rapid changing business environment.
The kids falling within the age group of 3 to 10 years will get the chance to choose from huge
range of products.
Targeting strategy – This company has chosen kids and small children as target audiences.
Sugar free chocolate is a product which will attract kids and small children. This chocolate will
be promoted in places like kinder gardens, schools, shopping malls, etc.
Segmentation strategy – The segmentation strategy of this company includes individuals of age
between 11 to 20 years.
According to Perceptual mapping, this sugar free chocolate is sold at affordable price
and with high quality.
The next category being individuals from 11 to 20 years for whom some more chocolates have
been introduced by including the elements such as wafers and juices inside the chocolates.
Furthermore, the next target audience being people above the age of 20 years. On coming to
selecting the customers region-wise, it wish to target people belonging to medium to high classes
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as the prices are very competitive because of the quality being provided in this. In addition to
this, the chocolates are going to be available in many different stores within the local limits of
UK. Therefore, the products will be sold to the local individuals who are living in UK. However,
it has plan to expand the business to some other European countries in future which is going to
achieved once the newly introduced chocolates are successful in this market. Also, the target
audience includes those suffering from obesity and diabetes who can have the chocolates which
are sugar free
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