Brand Extension Marketing Plan

SMART BACKPACK WITH NIKE

In this assignment, you will be assessed based on the following Outcome:

GB530-1: Assess specific marketing opportunities.

Introduction: The assignment in this unit is to complete a component of a brand extension marketing plan for one new product on the behalf of an existing for-profit organization. Using the Marketing Plan Guide found in Course Documents, complete and submit the following components of your marketing plan. Use research to support your opinions.

Unit 3: Identifying and Assessing Marketing Opportunities

2.0 SITUATION ANALYSIS

Write a one-paragraph summary of the current situation. Write this section aftercompleting the following sections of the Situation Analysis, but put it in this order.

2.1 Market Summary

(Write this section after completing 2.1.1, 2.1.2, 2.1.3, 2.1.4, and 2.2). In a one- to two-paragraph summary, address:

What are your target customer groups? Why?

What are your projections for the growth of this market?

2.1.1 Market Demographics (Refer to Chapter 8 of your Kotler text for helpful definitions/explanations.)

Carefully define the demographic profile of your target market.

In a similar fashion, define the geographic target area you are choosing.

What are the behavior factors that will influence your decision making?

Define the values and lifestyles (psychographics) of your target market.

2.1.2 Market Needs

What are the benefits that are important to your customer base?

What needs do they have, and how do you know this?

• 2.1.3 Market Trends
• Identify and explain at least three trends that will influence how your customers view your product. These should be trends going on in the industry or the environment; these are trends that your company/product can respond to in some way. Remember: Trends are long term; fads are short term.

2.1.4 Market Growth

Is the market growing, static, or diminishing? What are the growth trends?

What is the evidence? What research are you using to determine market growth?

• How will you address the market if it is growing, static, or diminishing?
• 2.2 SWOT Analysis (Refer to Chapter 2 of your Kotler text for a thorough explanation of a SWOT analysis.)
• 2.2.1 Strengths: List and describe at least three positive internal aspects that add value.
• 2.2.2 Weaknesses: List and describe at least three negative internal aspects that place you at competitive disadvantage.

2.2.3 Opportunities: List and describe at least three opportunities external to your business that will lead to your success.

2.2.4 Threats: List and describe at least three threats external to your business that will threaten your success. (Note: It is common to include unexpected acts of nature, government and regulatory concerns, and competition in this section of the SWOT.)

2.3 Competition

• Describe your competition.
• Why will customers prefer your product?

How will you compete with your competition and win?

What is the marketing mix (price, place, promotion, product: you know them as “the 4 P’s of marketing”) of at least one of your competitors?

2.4 Product Offering

• What are the product/features/benefits? (Pay particularly attention to benefits, as these are from the perspective of the target market.)

Describe your brand equity model and say how you will build brand equity for this product/service.

2.5 Keys to Success

List and describe at least three factors that will determine your success.

• 2.6 Critical Issues
• How will you leverage your SWOT strengths and opportunities to your advantage?
• How will you lessen the impact of your SWOT weaknesses and threats?

Where is your product in the product life cycle and why? Refer to your Kotler text for a definition of a product life cycle.

Tips:

The guide you should use for the brand extension marketing plan is in Course Documents under Course Resources in the left navigation area.

The Kotler and Keller text will be extremely useful to you when completing your assignments. Be sure to review the Sample Marketing Plan (Pegasus Sports International) in Chapter 2 of your Kotler text.

GB530 Unit 3 Assignment Rubric
Course: GB530 Marketing Management
Level III Max
Points
5 points
Level II Max
Points
4.25 points
Level I Max
Points
3.5 points
Meets all
criteria:
● Provides a
summary of
the current
situation’
including at
least four (4)
key
components.
The following
is true:
● Provides a
summary of
the current
situation,
including three
(3) key
components.
The following
is true:
● Provides a
summary of
the current
situation,
including one
(1) – two (2)
key
components.
Criteria 2 (5%)
Level III Max
Points
5 points
Level II Max
Points
4.25 points
Level I Max
Points
3.5 points
Market
Summary
Meets all
criteria:
● Defines
Meets two (2)
criteria:
Meets one (1)
criteria:
● Defines
Criteria 1 (5%)
Situation
Analysis
target
customer
groups.
● Defends
selection of
target market.
● Provides
market growth
projections.
● Defines
target
customer
groups.
● Defends
selection of
target market.
● Provides
market growth
projections.
target
customer
groups.
● Defends
selection of
target market.
● Provides
market growth
projections.
Not Present
0 points
Does not meet
any criteria.
Not Present
0 points
Does not meet
any criteria.
Criterion Score
/5
Criterion Score
/5
Criteria 3
(10%)
Market
Demographi
cs
Criteria 4 (5%)
Level III Max
Points
10 points
Level II Max
Points
8.5 points
Level I Max
Points
7 points
Meets all
Meets three
Meets one (1) – Does not meet
criteria:
● Defines
the
demographic
profile of the
target market.
● Defines
the geographic
area of the
target market.
● Defines
behavioral
influencers of
the target
market.
(3) criteria:
● Defines
the
demographic
profile of the
target market.
● Defines
the geographic
area of the
target market.
● Defines
behavioral
influencers of
the target
market.
two (2)
criteria:
● Defines
the
demographic
profile of the
target market.
● Defines
the geographic
area of the
target market.
● Defines
behavioral
influencers of
the target
● Defines
the
psychographic
profile of the
target market.
● Defines
the
psychographic
profile of the
target market.
market.
● Defines
the
psychographic
profile of the
target market.
Level III Max
Points
5 points
Level II Max
Points
4.25 points
Level I Max
Points
3.5 points
Not Present
0 points
Criterion Score
/ 10
any criteria.
Not Present
0 points
Criterion Score
Criteria 4 (5%)
Market
Needs
Criteria 5
(10%)
Market
Trends
Level III Max
Points
5 points
Level II Max
Points
4.25 points
Level I Max
Points
3.5 points
Meets all
criteria:
● Describes
new product
benefits for
the target
market.
● Discusses
the needs of
the target
market.
● Provides
Meets two (2)
criteria:
● Describes
new product
benefits for
the target
market.
● Discusses
the needs of
the target
market.
● Provides
Meets one (1)
criteria:
● Describes
new product
benefits for
the target
market.
● Discusses
the needs of
the target
market.
● Provides
research to
support
(market needs)
assumptions.
research to
support
(market needs)
assumptions.
research to
support
(market needs)
assumptions.
Level III Max
Points
10 points
Level II Max
Points
8.5 points
Level I Max
Points
7 points
Meets all
criteria:
● Identifies
at least three
(3) industry
Any of the
following are
true:
● Identifies
two (2)
Any of the
following are
true:
● Identifies
one (1)
trends related
to the new
product.
●
Distinguishes
industry
trends.
● Misses
differences
between
industry trend.
● Misses
differences
between
trends (long-
differences
between
trends (longterm) and fads
trends (longterm) and fads
(short-term).
term) and fads
(short-term).
(short-term).
Not Present
0 points
Does not meet
any criteria.
Not Present
0 points
Does not meet
any criteria.
Criterion Score
/5
Criterion Score
/ 10
Criteria 6 (5%)
Market
Growth
Level III Max
Points
5 points
Level II Max
Points
4.25 points
Level I Max
Points
3.5 points
Meets all
Meets three
Meets one (1) – Does not meet
criteria:
● Explains
whether the
market is
growing, static,
(3) criteria:
● Explains
whether the
market is
growing, static,
two (2)
criteria:
● Explains
whether the
market is
or diminishing.
● Discusses
growth trends.
● Provides
or diminishing.
● Discusses
growth trends.
● Provides
growing, static,
or diminishing.
● Discusses
growth trends.
research to
support trend
research to
● Provides
support market research to
assessment.
●
Determines
ways to
growth
assessment.
●
Determines
support market
growth
assessment.
●
Not Present
0 points
Criterion Score
/5
any criteria.
address market ways to
Determines
growth
address market ways to
conditions.
growth
address market
conditions.
growth
conditions.
Criteria 8
(10%)
Level III Max
Points
10 points
Level II Max
Points
8.5 points
Level I Max
Points
7 points
Not Present
0 points
Criterion Score
Criteria 8
(10%)
Competition
Criteria 9
(10%)
Level III Max
Points
10 points
Level II Max
Points
8.5 points
Level I Max
Points
7 points
Meets all
Meets three
Meets one (1) – Does not meet
criteria:
● Describes
the
(3) criteria:
● Describes
the
two (2)
criteria:
● Describes
competition.
● Describes
competitive
strategy.
competition.
● Describes
competitive
strategy.
the
competition.
● Describes
competitive
● Defines
the marketing
● Defines
the marketing
strategy.
● Defines
mix (4 P’s) of at
least one
competitor.
● Discusses
mix (4 P’s) of at
least one
competitor.
● Discusses
the marketing
mix (4 P’s) of at
least one
competitor.
competitive
advantage.
competitive
advantage.
● Discusses
competitive
advantage.
Level III Max
Points
10 points
Level II Max
Points
8.5 points
Level I Max
Points
7 points
Not Present
0 points
Criterion Score
/ 10
any criteria.
Not Present
0 points
Criterion Score
Criteria 9
(10%)
Product
Offering
Criteria 10
(5%)
Keys to
Success
Criteria 11
(5%)
Level III Max
Points
10 points
Level II Max
Points
8.5 points
Level I Max
Points
7 points
Meets all
criteria:
Meets three
(3) criteria:
Meets one (1) – Does not meet
two (2)
any criteria.
● Describes
product
● Describes
product
criteria:
● Describes
features.
● Describes
product
benefits.
features.
● Describes
product
benefits.
product
features.
● Describes
product
● Describes
brand equity
model.
● Defines
● Describes
brand equity
model.
● Defines
benefits.
● Describes
brand equity
model.
strategy to
build brand
strategy to
build brand
● Defines
strategy to
equity.
equity.
build brand
equity.
Level III Max
Points
5 points
Level II Max
Points
4.25 points
Level I Max
Points
3.5 points
Meets all
criteria:
● Describes
The following
is true:
● Describes
The following
is true:
● Describes
at least three
factors that
will determine
the success of
the new
product.
at least two
factors that
will determine
the success of
the new
product.
one factor that
will determine
the success of
the new
product.
Level III Max
Points
5 points
Level II Max
Points
4.25 points
Level I Max
Points
3.5 points
Not Present
0 points
Not Present
0 points
Does not meet
any criteria.
Not Present
0 points
Criterion Score
/ 10
Criterion Score
/5
Criterion Score
Criteria 11
(5%)
Critical
Issues
Level III Max
Points
5 points
Level II Max
Points
4.25 points
Level I Max
Points
3.5 points
Meets all
criteria:
● Describes
how to
Meets four (4)
– five (5)
criteria:
● Describes
Meets three
(3) – one (1)
criteria:
● Describes
leverage your
SWOT
strengths.
● Describes
how to
leverage your
how to
leverage your
SWOT
strengths.
● Describes
how to
how to
leverage your
SWOT
strengths.
● Describes
how to
SWOT
opportunities.
● Discusses
how to reduce
the impact of
your SWOT
weaknesses.
● Discusses
leverage your
SWOT
opportunities.
● Discusses
how to reduce
the impact of
your SWOT
weaknesses.
leverage your
SWOT
opportunities.
● Discusses
how to reduce
the impact of
your SWOT
weaknesses.
how to reduce
the impact of
your SWOT
threats.
● Defines
product life-
● Discusses
how to reduce
the impact of
your SWOT
threats.
● Defines
● Discusses
how to reduce
the impact of
your SWOT
threats.
● Defines
cycle stage of
the new
product.
● Justifies
how the
product life-
product lifecycle stage of
the new
product.
● Justifies
how the
product lifecycle stage of
the new
product.
● Justifies
how the
Not Present
0 points
Does not meet
any criteria.
Criterion Score
/5
cycle stage was product lifeproduct lifedetermined.
cycle stage was cycle stage was
determined.
determined.
Criteria 12
(5%)
Level III Max
Points
5 points
Level II Max
Points
4.25 points
Level I Max
Points
3.5 points
Not Present
0 points
Criterion Score
Criteria 12
(5%)
APA Style
Criteria 13
(10%)
Level III Max
Points
5 points
Level II Max
Points
4.25 points
Level I Max
Points
3.5 points
Meets all
criteria:
● Uses APA
formatted
Meets two (2)
criteria
● Uses APA
formatted
Meets one (1)
criteria
● Uses APA
formatted
template
provided.
● Applies
APA style to
in-text
citations and
references
with minor to
template
provided.
● Applies
APA style to
in-text
citations and
references
with minor to
template
provided.
● Applies
APA style to
in-text
citations and
references
with minor to
no errors
● Resources
are from
reliable and/or
scholarly
sources.
no errors
● Resources
are from
reliable and/or
scholarly
sources.
no errors
● Resources
are from
reliable and/or
scholarly
sources.
Level III Max
Points
10 points
Level II Max
Points
8.5 points
Level I Max
Points
7 points
Not Present
0 points
Does not meet
any criteria.
Not Present
0 points
Criterion Score
/5
Criterion Score
Criteria 13
(10%)
Writing
Conventions
Level III Max
Points
10 points
Level II Max
Points
8.5 points
Level I Max
Points
7 points
Meets all
Meets three
Meets one (1) – Does not meet
criteria
(3) criteria
two (2) criteria
● Writing is
focused,
● Writing is
focused,
● Writing is
focused,
concise, and
organized.
● Articulates
at a college
level with
sentence
variety and
complexity
concise, and
organized.
● Articulates
at a college
level with
sentence
variety and
complexity
concise, and
organized.
● Articulates
at a college
level with
sentence
variety and
complexity
● Few or no
grammar or
punctuation
errors
● Uses nonoffensive,
● Few or no
grammar or
punctuation
errors
● Uses nonoffensive,
● Few or no
grammar or
punctuation
errors
● Uses nonoffensive,
inclusive, and
respectful
language
inclusive, and
respectful
language
inclusive, and
respectful
language
Not Present
0 points
Criterion Score
/ 10
any criteria.
Total
/ 100
Overall Score
Level III Max Points
Level II Max Points
Level I Max Points
Not Present
85.001 points minimum
70.001 points minimum
0.001 points minimum
0 points minimum
1
GB530 Brand Extension Marketing Plan: Guide
Introduction
Use this document as your guide to success. All Brand Extension Marketing Plan documents
should use 1” margins, 12 pt. font, and include a title page and a reference page.
For the Brand Extension Marketing Plan assignments in this class you will not use the usual APA
rules which require in-text citations as 1) no marketing plan ever uses direct quoting within its
contents, 2) we are making an exception due to the nature of a Marketing Plan Assignment and
3) you will not use double-spacing but instead you will use this document’s formatting.
It is important that you write your Brand Extension Marketing Plan in third person (there is no
“I” in a marketing plan), using your own words, and/or paraphrasing instead of direct quoting.
Once submitted to the Dropbox for grading, Brand Extension Marketing Plan assignments are
submitted to Turnitin® for a plagiarism review, so it continues to be important for you to never
use anyone else’s words verbatim.
For each of the Brand Extension Marketing Plan assignments, you should list, on the reference
page, all of the references you used when preparing your plan. Again, you do not need to
include the in-text parentheses noting references and timeframes as normally required in our
APA assignments, but you do need to use APA to format your references list. If you have any
questions on this exception to using APA, let your instructor know.
All the components of the Marketing Plan are assessed using the following:
Subject Mastery Rubric: Knowledge (can define major ideas) or Comprehension (can discuss
major ideas) or Application (can apply major concepts to new situations).
Page 1 of 12
2
A Marketing Plan Is The Foundation For All Marketing Efforts
Beginning your Brand Extension Marketing Plan: The Product Proposal
The major project in this course is to complete a Brand Extension Marketing Plan for one new
product on the behalf of an existing for-profit organization.
As you begin your project, you need to first assume you have the role of a marketing manager
for one, new, currently not available from your selected Brand Company, product on the
behalf of a real, for-profit organization. Consider this a “brand extension”: you are adding a
product to an existing company’s product line.
Think about your selection: the proposal is for a New Product for a New Market of consumers!
Extend the Brand Name into new product markets by offering a “new to the company”
product.
Companies may do this by buying an existing product, or importing a new product and putting
their brand name on it – or they develop their own product to compete in the new market.
Intensive Growth Strategies
Companies have four options to maximize growth opportunities, these include the following
strategies:
Market Penetration: Gaining more market share by increasing sales of products and services to
existing markets.
Market Development: Finding or developing new markets for current products.
Product Development: Developing new products for current customers.
Diversification: Developing new products for new markets.
Unit 2 BEMP Proposal – What will your project be about?
Submit your response to the following questions as a Product Proposal:
•
•
•
•
•
•
What is the brand name of your for-profit business/organization?
What is the new product, not currently in existence, that will generate revenue for which you will
prepare a marketing plan and strategy during this class? Give the product a name and briefly
describe it.
Look up “brand extension” in your Kotler text and describe whether your product is considered a
line or a category extension.
How will you acquire information to prepare your marketing plan during this class? What
research will you undertake? Be specific.
Will your new product be marketed domestically or globally? Why?
Describe the key customer market (who are you targeting?).
Page 2 of 12
3
(Be sure to include research with your proposal along with an APA formatted reference list.)
1.0
Executive Summary
The executive summary is to be completed after all other sections have been completed and
edited for Unit 8.
In 4 – 6 paragraphs, summarize your Brand Extension Marketing Plan. Be sure to include:
•
•
•
•
•
•
•
Product
Benefits
Target market
Customer needs
Value proposition
How you would market on a national and global level
Show an understanding of other cultures, global relationships, and global dynamics in
the marketplace
Page 3 of 12
4
Unit 3 Identifying and Assessing Marketing Opportunities
(You can find a sample marketing plan in your Kotler textbook in Chapter 2)
2.0 SITUATION ANALYSIS
Write a 1-paragraph summary of the current situation. Write this section after completing the
following sections of the Situation Analysis, but put it in this order.
[Keep the outline numbering and main headings in your plan, but delete all advice and content
prompts and questions from the plan. Address all those elements, but omit the questions and
direction prompts.]
2.1 Market Summary
(Write this section after completing 2.1.1, 2.1.2, 2.1.3, 2.1.4, and 2.2)
In a 1 – 2 paragraph summary, address:
•
•
What are your target customer groups? Why?
What are your projections for the growth of this market?
2.1.1 Market Demographics (refer to your Kotler text for helpful definitions/explanations)
•
•
•
•
Carefully define the demographic profile of your target market.
In a similar fashion, define the geographic target area you are choosing.
What are the behavior factors that will influence your decision-making?
Define the values and lifestyles (psychographics) of your target market.
2.1.2 Market Needs (refer to your Kotler text to make certain you understand these terms)
•
•
What are the benefits that are important to your customer base? What needs do they
have?
Include both customer needs and the customer value assessment.
2.1.3 Market Trends
•
Identify and explain at least three trends that will influence how your customers view
your product. These should be trends going on in the industry or the environment; these
are trends that your company/product can respond to in some way. Remember: Trends
are long term; fads are short term.
Page 4 of 12
5
2.1.4 Market Growth
•
•
•
Is the market growing, static, or diminishing? What are the growth trends?
What is the evidence? What research are you using to determine market growth?
How will you address the market if it is growing, static, or diminishing?
2.2 SWOT Analysis (refer to your Kotler text for a thorough explanation of a SWOT analysis)
2.2.1 Strengths – list and describe at least three positive internal aspects that add value
2.2.2 Weaknesses – list and describe at least three negative internal aspects that place you at
competitive disadvantage
2.2.3 Opportunities – list and describe at least three opportunities external to your business that
will lead to your success
2.2.4 Threats – list and describe at least three threats external to your business that will
threaten your success (e.g., it is common to include unexpected acts of nature, government and
regulatory concerns, and competition in this section of the SWOT)
2.3 Competition
•
•
•
•
Describe your competition.
Why will customers prefer your product?
How will you compete with your competition and win?
What is the marketing mix (price, place, promotion, product, you know them as “the 4 P’s
of Marketing”) of at least one of your competitors?
2.4 Product Offering (refer to your Kotler text to make certain you understand these terms)
•
•
What are the current products/features/benefits you offer?
How will your new product fit in with existing products? Is there a good fit between them?
2.5 Keys to Success
•
List and describe at least three factors that will determine your success.
2.6 Critical Issues
•
•
How will you leverage your SWOT strengths and opportunities to your advantage?
How will you lessen the impact of your SWOT weaknesses and threats?
Page 5 of 12
6
•
Where is your product in the product life cycle and why? Refer to your Kotler text for a
definition of a product life cycle.
Unit 5 Marketing Plan: Connecting with the Customer
3.0 MARKETING STRATEGY
3.1 Mission (review “mission” in Chapter 2 of the Kotler & Keller Marketing Management text)
•
Establish the fundamental goals for the quality of your business/product offering
and customer satisfaction.
•
Define your business/product offering.
•
What are your fundamental goals? (Fundamental goals are those that you would
like to achieve with your new product, either as an individual product or as part of the
overall company mission. These are directional goals that provide the overall strategic
direction for management planning.)
•
State the value proposition. Be sure to look up this term in your Kotler text if you
do not fully understand it.
3.2 Marketing Objectives
Include a sentence or two about each of the following:
•
What are your specific marketing objectives?
•
Market share: what is your growth objective by quarter?
•
Market penetration: how do you plan to gain a share in this market?
•
Awareness: how do you plan to gain awareness for your product?
•
Customer acquisition: how do you plan to grow your customer base?
•
Identify a specific, measurable market share and size.
Remember that your objectives need to be quantifiable. In other words, objectives need to have
a base point, end point, and time frame so you can research to see if you have reached your
benchmarks or if your plan needs adjustment.
3.3 Target Markets (refer again to Chapter 9 of your Kotler text to make sure you fully
understand what is meant by target market segments)
•
Identify the specific target market segments you have defined. What are the market
niches you hope to capture? Describe.
Page 6 of 12
7
•
Include the rationale behind why these are the optimal target marketing segments. Be
specific.
Unit 7 Marketing Plan – Developing Strong Brands
3.4 Positioning (refer to your Kotler text for definition of terms in this section)
•
•
•
Describe how your product/service meets the need(s) of your target market segments.
Describe how you are different from your key competition.
What is the most distinguishing feature of your new product?
3.5 Marketing Mix
Product
• What makes your product different from the competition?
• What gives your product more value than the competition?
Price
• What price will you charge and how will you determine what price to charge for your
product?
• How will you determine what your product is worth?
• How will your pricing strategy set you apart from your competition?
Place
•
•
•
How do you plan to distribute your product?
Do you have alternative delivery methods in mind? If so, describe in detail.
Will you take responsibility for distribution, or will you rely on an outside firm? How will
you decide?
Promotion
• What kind of promotional tools will you use? Describe in detail.
• How will you determine what promotional tactics will work best?
• With a limited promotional budget, how do you plan to gain market share?
• How will you go about evaluating the results of your promotional campaign?
3.6 Marketing Research
• What type(s) of marketing research do you think will work best to get you the information
you need to make informed decisions?
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•
•
How will you evaluate whether the research is providing you with the results you need?
Will you conduct the research yourself, or hire an outside firm? Explain why.
Note: Do not forget that you need research to determine if you reached your Objectives in 3.2.
Unit 8 Marketing Plan – Delivering Value
4.0 FINANCIALS
4.1 Break-even Analysis
•
•
•
When you will break-even?
Break-even table/chart
Explanation of the break-even table/chart
TIP
Here is a good example of a break-even analysis. This should assist you in your own
completion of this section. NOTE: You do not need to use the examples below – look
online and use whatever break-even and sales forecast templates you wish to use.
NOTE: For annual break-even analysis – ensure you continue your analysis until your
profit is 0 or positive. If you end a year with a negative income then that must be carried
over to the next year and added to Fixed Costs – thus your break-even point will be
further into the future. (Someone must pay for debts owed!) If you conduct a monthly
break-even then you must provide the number of months until the break-even. This will
correspond to your sales estimates.
EXAMPLE: 4.1 Break-even Analysis
First year sales revenue for XXX is estimated to be $48,000,000. The average sales price is
$100 per unit with the variable expense per unit at $75. This results in a contribution margin
of $25 per unit. The sales volume in the first year is estimated to be 480,000 units.
Estimated fixed costs for the first year are $20,000,000. Using the contribution margin
method, estimated losses in the first year will be ($8,000,000). (Note: this information is for
internal use only.)
YEAR 1
Sales (480,000 items)
Less variable expenses
TOTAL
$48,000,000
$36,000,000
PER UNIT
$100
$75
Contribution Margin
$12,000,000
$25
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Less fixed expenses
$20,000,000
Net operating income
($8,000,000)
YEAR 2
Sales (1,200,000 items)
Less variable expenses
TOTAL
$120,000,000
$90,000,000
PER UNIT
$100
$75
Contribution Margin
Less fixed expenses
$30,000,000
$28,000,000
$25
Net operating income
$2,000,000
At this rate, breakeven will be reached when sales reach 1,120,000 units: 28,000,000 /
$100-$75 = 1,120,000 units. This is estimated to take place in the second year. Break-even
analysis assumes per-unit wholesale revenue will remain at $100 average. Variable costs are
$75 per unit.
BREAK EVEN
Sales (1,1200,000 items)
Less variable expenses
TOTAL
$11,200,000
$84,000,000
PER UNIT
$100
$75
Contribution Margin
Less fixed expenses
$28,000,000
$28,000,000
$25
Net operating income
$0
4.2 Sales Forecast: 1st year by month; 2nd and 3rd years by quarter
(refer to your Kotler text)
•
Sales forecast and timing – include charts showing the following: Remember that some
products have sales cycles – and whether you are planning for any growth in the
market for increased promotions.
•
Include your sales forecast for the first year by month.
•
For the second and third years, include your forecasts by quarter.
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Year
1
Jan
Feb Mar Apr May
Jun
Jul
Aug Sep
Oct Nov Dec
Year
2
1st
Q
2nd
Q
Year
3
1st
Q
2nd
Q
4th
Q
3rd
Q
4th
Q
3rd
Q
•
Risks – this is a CRITICAL PART OF ANY MARKETING PLAN, so be sure to give this topic
ample attention.
•
Most important components of sales performance – this is a CRITICAL PART OF ANY
MARKETING PLAN, so be sure to give this topic ample attention.
•
Keep your chart(s) relatively simple and reduce the total number of categories so that
your investors can quickly discern the information. Again, refer to the Sample
Marketing Plan in Course Documents for assistance on this section.
4.3 Expense Forecast
List your expenses for the following items for the next 3 years:
•
•
•
•
•
Website
Advertising
Printed Material
Development of retail channel
Other (list)
5.0 CONTROLS
•
•
•
How will you monitor expenses/revenue? Identify what methods/reports and how
often?
How will you assess marketing effectiveness?
How will you assess changes in the market environment?
5.2 Marketing Organization
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•
Roles and Relationships in Your Marketing Functions (who will be responsible and who
will implement this Brand Extension Marketing Plan?)
5.3 Contingency Planning
•
•
•
Identify risks in this plan strategy.
How you will monitor the risks?
How you will adapt to adversity and changes? What options will you have?
Tip: Go back through each section of your plan and make any appropriate revisions, based on
the feedback of your professor during each section grading and/or based upon new
information you have discovered throughout the process.
Submit all of the sections for your completed Brand Extension Marketing Plan
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References
Here is where you will include all the references you used to prepare your marketing plan.
Because a Business Plan is usually primary information sources are not usual – yet sources for
data and direct quotes are used. Do not use unverified sources such as Wikipedia, blogs, social
media, or news releases as they are not acceptable graduate school reference sources. Do
ALWAYS include your textbook and use current APA formatting when citing your references on
this reference page.
Kotler, P. & Keller, K. L. (2016). Marketing management (15th ed.). Pearson Prentice Hall.
Page 12 of 12
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GB530 Brand Extension Marketing Plan: Nike Smart Backpack
Mawadda Alqutbi
GB530 Marketing Management
Ashlie Roeder
07/12/2024
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Brand Extension Nike Smart Backpack
Introduction
The Nike Smart Backpack is the new product that this marketing plan recommends
launching under Nike. This cutting-edge device provides back support to help maintain a straight
spine and enhance posture (Childs & Jin, 2018). This product will capitalize on Nike’s strong
market presence and reputation for premium sports and leisure goods as a brand extension.
Brand Name of the For-Profit Organization
The for-profit company is Nike, Inc., a well-known leader in athletic footwear, gear, and
apparel.
New Product Description
The Nike Smart Backpack is the new product. With the help of growing technology, this
backpack offers ergonomic support that promotes good posture. Using a smartphone app, the
sensors in the backpack track the user’s posture and provide real-time feedback. To guarantee
comfort and support, it also has cushioning and adjustable straps.
Brand Extension Type
Kotler and Keller’s book categorizes brand extensions into line and category extensions.
The Nike Smart Backpack is an example of a new category (Kotler & Keller, 2016). Though the
company is best known for its athletic gear and equipment, this product introduces a new product
category under the Nike brand. It expands its reach into the health and wellness technology
market.
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Information Acquisition and Research
Broad research will be done to make the marketing plan, including:
•
Market analysis: examining the current posture correction and smart wearables markets
to determine the competitive environment.
•
Through focus groups and questionnaires, consumer research identifies potential
customers’ requirements, preferences, and readiness to accept new technologies.
•
Technical Feasibility: Working with product development teams to ensure the backpack’s
technological features are doable and up to par.
•
Financial analysis: Analyzing pricing plans, cost structures, and possible profitability
(Kotler & Keller, 2016).
•
Trend analysis: examining developments in intelligent technology, ergonomics, and
health and fitness.
Key Customer Market
The Nike Smart Backpack’s main target market consists of professionals and students
who frequently carry large loads and are prone to back issues, such as office workers and
students. This product will also appeal to fitness enthusiasts who are health-conscious and
concerned about keeping proper posture (Shokri & Alavi, 2019). Consumers who are
knowledgeable about technology, particularly those who are early adopters, will value the smart
backpack’s cutting-edge capabilities.
Marketing Scope: Local or Global
The Nike Smart Backpack will first be sold in the US domestic market. With this
strategy, a targeted and managed product launch is possible, gathering input and making the
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required corrections easier before a worldwide release. The local market attracts many
consumers, making it the perfect place to test and improve marketing tactics.
Conclusion
Nike has strategically expanded into a new area with the Nike Smart Backpack,
capitalizing on the expanding demand for wellness and health technology (Kotler & Keller,
2016). The marketing plan intends to successfully debut this novel product, catering to the needs
of a broad and diversified customer base, by utilizing Nike’s strong brand and undertaking
extensive research.
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References
Childs, M., & Jin, B. (2018). Nike: An innovation journey. Product innovation in the global
fashion industry, 79-111. http://dx.doi.org/10.1057/978-1-137-52349-5_4
Kotler, P., & Keller, K. L. (2016). Marketing Management (15th Editi). England: Pearson
Education Limited.
Shokri, M., & Alavi, A. (2019). The relationship between consumer-brand identification and
brand extension. Journal of relationship marketing, 18(2), 124-145.
http://dx.doi.org/10.1080/15332667.2018.1534064