Report on Elemis Brand Extension Strategy for New Product Development

This report analyzes the potential for Elemis, a luxury British skincare brand, to extend its brand through the introduction of a new concealer product. The study employs secondary research methods to assess the brand's existing values, target market (women aged 18-35), and the competitive landscape. It examines market trends, including political, economic, social, technological, environmental, and legal factors, using tools like the Ansoff Matrix to guide product development. The report provides a detailed explanation of the new concealer product, highlighting its natural ingredients and benefits. It also provides a comparison with competitors and concludes that the brand extension strategy is likely to be successful, particularly given favorable technological and legal factors. References to academic sources and an appendix with raw material details are included.

PRINCIPLES OF
MARKETING

Executive summary
The aim of report is to identify the impact of develop an idea of brand extension, which is
quite beneficial for Elemis brand operating their business at global level. In this research
secondary method under qualitative research methodology has been taken by researcher in order
to find out the relevant data regarding chosen topic and aim of research. With the help of
choosing the best strategy for brand extension procedure, organization successfully launched
their new products within target market. Its has been summarized that manufacturing department
of company give different look and design new packaging structure for their goods that help to
gain attention of consumers.

Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Methodology....................................................................................................................................4
Findings............................................................................................................................................4
Existing brand and its values.......................................................................................................4
Description of target market........................................................................................................4
Analysis of new market including trends.....................................................................................5
Explanation of new product.........................................................................................................6
Competition..................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The aim of study is to determine the impact of brand extension idea on Elemis, it is one
of the most Luxury British skin care brand manufactures and formulated their products in United
Kingdom with area of face philosophy. They support range of British Oilseed crops, help
sustainability of honey bees through growing of star flower, Camelina and Echium. Company
sale their products all around the world, by selling their cosmetic products they earn 450 million
profit within sector. Investing in further business growth, finding progress in micro markets and
developing new ideas for brand extension are the current trends in sales. Firm distributed their
goods to over 1000 third party spas & retail stores all around the world.
Methodology
Secondary research method is undertaken into consideration of research aim, the overall
investigation was carried out with this approach that allow individual to gather suitable and
appropriate data (Rothwell and et.al., 2019). The information and knowledge collect throughout
secondary method is sufficient to draw findings and conclusion as well in effective manner. With
this method researcher gather data without wasting time on survey or personal observation, they
will find out exact info that were looking for.
Findings
Existing brand and its values
A brand is term, name, symbol and design that identified on seller's services and products
as distinct from those of other marketer.
Brand extension refer to marketing strategy of companies in which firms selling goods
with well-developed image uses similar brand name or logo in different good's category
(Evangeline and Ragel, 2016).
Kapferer brand identify prism is one of the best academic model on branding, it helps
businesses to build enduring and strong company identities in market. This concept contains six
unique components that are: physique, Culture, reflection, personality, relationship and self
image.
Description of target market
Elemis want to extend their brand with the help of manufacturing new product, that is
concealer consist the feature of dark sport reduction. For this product, they specially target

women between age of 18 to 35 because most female are facing issues in their skin. Dark circle
and pimple spot hinder the natural beauty of women.
STP-
Segmentation-
Elemis target consumer based on demographic segmentation in which they focus on age,
gender and income of people.
Targetting-
Brand target working and house hold women between age of 18 to 35, as they are serious
about skin care.
Positioning-
Company will use traditional methods of marketing in order to set their position within
market and gain attention of consumers.
Analysis of new market including trends
Political factor-
The government of nation is very serious about the safety of product, the make rules for
cosmetic sector followed by companies working under it such as Elemis, in order to launch new
product. Personal care product safety Act effect new goods production process.
Economic factor-
The income rate of consumers is one of the economic factor that impact on new product
of Elemis brand negatively. Low income source consumers cannot be able to purchase goods
when its prices will be higher than their budgets.
Social factor-
Changes is preferences of customers is social factor that also impact on new product
production. Women's are serious about skin and personal care, they chose the best product for
themselves which is organic and made by natural ingredients. In recent time, use of natural skin
care products are in trend.
Technological factor-
Advancement of technology really revolutionize cosmetic industry, it impacts positively
on new product that is concealer made by natural ingredients. As it helps to promote this goods
in all around the world.

Environmental factor-
Government and consumers concern towards environment sustainability put negative
impact on new product. They want packaging of good become Eco-friendly that consume a lot of
time and money as well.
Legal factor-
Federal Food, Drug and Cosmetic Act put positive impact on new product and make it
effective. Its help to improve the quality and quantity of new concealer that gain attention of
consumers.
Ansoff's grid-
Elemis brand adopt product development strategy under Ansoff Martix in order to
develop new goods for women.
Explanation of new product
Elemis want to produce new product that is concealer for female, it helps to reduce dark
spot, pigmentation and other face issues without harm because it made up with natural
ingredients which prevent skin from sun damage, ageing symptoms and brighten skin tone. After
using this concealer there is no need to use foundation or any other product to hide uneven skin
tone. Product is packed in plastic bottle with recyclable paper label that is easy to recycle
(Hayran and Gürhan-Canli, 2016).
Competition
Basis Elemis Bamford
Product They deliver the best quality
skin care products to their
consumers such as natural oils,
pro collage cleaning blam etc.
good for every skin tone.
On the other hand Bamford is
one of Elemis competitors in
new market where they body
and bath products that set good
image in mind of consumers.
Price The prices of Elemis products
is less than its competitors
which help to retain people for
longer.
The cost of each product of
this Brand is high as compare
to other.

CONCLUSION
From above findings it has been concluded that technological and legal factors are in
favour of new products' development strategy. By considering all above points, Elemis brand
extension mission will be successful.

REFERENCES
Book and Journals
Evangeline, S.J. and Ragel, V.R., 2016. The role of consumer perceived fit in brand extension
acceptability. IUP Journal of Brand Management. 13(1). p.57.
Hayran, C. and Gürhan-Canli, Z., 2016. Brand extensions. The Routledge Companion to
Contemporary Brand Management. pp.136-152.
Rothwell, E and et.al., 2019. Secondary research uses of residual newborn screening dried
bloodspots: a scoping review. Genetics in Medicine. 21(7). pp.1469-1475.

Appendix-
Information about raw material-
Natural ingredients such as jojoba Oil, Vitamin E consist items that help to keep skin younger.
Concealer Bottle