Analyzing Apple's Brand Extension: A Report on Marketing Principles

This report provides an analysis of Apple's brand extension strategy, focusing on key marketing principles. It examines Apple's background, brand value, and target market for new products like the Apple Airpods (2020). The report also addresses key trends and PESTEL issues influencing Apple's product launches. A comparative analysis of Apple's brand extensions with Bose is included, highlighting distinctions in noise cancellation, design, and battery capacity. Furthermore, the report distinguishes Apple's products from competitors, noting its unique user experience and the competitive landscape in the audio product market. The conclusion emphasizes the importance of brand extension for gaining a competitive advantage and surviving in the market.

Principle of marketing

Table of Content
 Background
 Brand value-
 Brand value of Apple
 Target market for new product
 Key trends & PESTEL ISSUE
 Apple brand extensions comparison with Bose
 Distinction from competitive products-
 Conclusion
 References

Background
Apple, a multinational technology and e-commerce firm headquartered in
U.S. Firm deals in electronics items, e-commerce, cloud computing, artificial
intelligence etc. It has many competitors such as Alibaba, E-Bay, Google etc.
It was founded by Steve Jobs ion 1976. It deals in many products such as
iphone, Apple watch, Apple TV, iPad etc. Company has been evolving with
change period of time & they operates at global scale. They too focuses on
brand extension due to rise of competition in market & due to this they have
large customer base as well as large product portfolio. Also, they have been
expanding their business at global scale due to rise of competition in market.

Brand value-
A brand value is defined as value of firm in market and in minds of
customers. It is essential to have brand value on basis of which it is easy to
carry out functions as well as operations of business. Furthermore, in
relevance of Amazon they have higher brand value in market all over the
world especially in U.S market with percentage of 49. Moreover, Apple
also sponsored many other organizations such as they have moved into
sports with FC Bayern Munich partnership. Through such sponsorship
events & program-mes they are able to enhance their brand value at higher
scale.

Brand value of Apple
Apple has made history as first brand in Brand Finance Global 500 ranking
to exceed $200 billion value market & has been retaining its brand value
continuously.
Apple is also being a largest firm to hire employees within a year as
compared to other brands.
Furthermore, they are being at top amongst their competitor such as Bose,
JBL, Microsoft etc. in technology and e-commerce products segments.

Target market for new product
A target is deified as potential market with group of people who has ability
to purchase products of respective firm. It is necessary top be aware about
target market on basis of which planning is done accordingly. In relevance
of Apple, their target market for their new product which is Apple Airpods
(2020). Brand extension of Apple in audio and Bluetooth products is
expanding at larger scale. It is necessary to be aware about target markets
for these which is business class people and high disposable income people.
With these relying on these target markets they have launched their new
product in market with listing price of $549. These headphones are
attracting many customers mas because of their design and preference.

Key trends & PESTEL ISSUE
Key trends of over the ear headphones & Bluetooth headphones is rising with
changing period of time. It is essential to understand these trends in market as
they influences the need for new products within market. Moreover, by
following these trends leads to innovation and attracting more customers
towards brand.
PESTEL Issue
Social factor- It is issue which influences need for product launch in market,
This is because changing behavior as well as flexible market situations
forces company to produce new product. To deliver total satisfaction & fulfill
needs of customers of over the year headphones, product was launched by
Apple. Further, decisions making is also carried out by considering these
social elements which directly affects business overall structure.

Apple brand extensions comparison with Bose
 Apple AirPodes Max are attractive
 Apple is offering best noise cancellation because of their effective
structure as it is made of three outward facing microphone, which
detect environmental noise (Vehoeven, and Johnson 2017).
 This is handy and very useful for colleagues cheating.
 Apple AirPodes Max is featured with the 20 hours battery capacity at
every volume sating and movies playbacks .

Bose brand extensions
 But Bose Noise cancelling Headphones 700 are more stylish then
Apple headphones.
 They are offering the variety of colour options. Such as Blake silver
and dark blue.
 Headphones are design with the stainless steel. And the its ear cups
are sliding and adjustable.
 Its very comfortable to Cary because of its lightweight, soft ear cups
and best noise cancellation options

Visual image of brand extension