Brand Extension

THE NEW PRODUCT IS A NIKE SMART BACKPACK THAT PROVIDES BACK SUPPORT TO KEEP YOUR BACK STRAIGHT AND FIX POSTURE

Brand Extension Marketing Plan

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. You will be completing various components of the BEMP throughout this course.

Assignment Details: In this unit, you need to first assume you have the role of a marketing manager for one new (currently not available) 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. This product may be introduced on a local, regional, national, or international scale.

It is very important that you fully comprehend what a brand extension is before you begin your major assignment. Find “brand extension” in your Kotler text and make certain you understand the definition. Brand extensions fall into two categories: line extension and category extension. Be sure to understand the difference. Reading this section in your text will be extremely helpful to you!

Give careful thought to your selection. Note: You must submit your selected brand extension to your instructor for prior approval. Remember that the proposal is for a new product for a new market. Extend the brand name into a new product offering. In other words, offer a “new to the company” product. Companies may do this by buying an existing product, by importing a new product and putting their own name on it, or by developing their own new product to compete in the market.

Be sure to follow the brand extension marketing plan directions contained in the guide located in the Course Documents area. It is important to address each and every question/segment in this rubric in order to receive maximum points. Remember that a fully executed marketing plan contains a significant amount of detail! You can also find a good Sample Marketing Plan (Pegasus Sports International) in Chapter 2 of your Kotler text.

Be sure to thoroughly address each of the following questions in your Unit 2 Marketing Plan submission along with reviewing the rubric. Write your plan in an essay format instead of a question and answer.

Key Questions to Answer:

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.

Describe the key customer market (i.e., whom are you targeting?).

Will your new product be marketed domestically or globally? Why?

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.

GB540 Unit 2 Assignment Rubric
Course: GB540 Economics for Global Decision Makers
Criterion 1
(16%)
Select a
Specific
Social
Problem
Criterion 2
(24%)
Level III Max
Points
20 points
Level II Max
Points
17 points
Level I Max
Points
14 points
Meets all
criteria:
● Identifies a
specific social
problem.
● Explains
the social
problem.
● Explains
why free
markets are
not allowed to
function.
Meets two
criteria:
● Identifies a
specific social
problem.
● Explains
the social
problem.
● Explains
why free
markets are
not allowed to
function.
Meets one
Does not meet
criterion:
any criteria.
● Identifies a
specific social
problem.
● Explains
the social
problem.
● Explains
why free
markets are
not allowed to
function.
Level III Max
Points
30 points
Level II Max
Points
25.5 points
Level I Max
Points
21 points
Not Present
0 points
Not Present
0 points
Criterion Score
/ 20
Criterion Score
Criterion 2
(24%)
Free Markets
and Social
Problems
Criterion 3
(24%)
Level III Max
Points
30 points
Level II Max
Points
25.5 points
Level I Max
Points
21 points
Not Present
0 points
Criterion Score
Meets all
Meets two
Meets one
● Does not
/ 30
criteria:
criteria:
criterion:
● Describes
how free
market
features could
be used to help
alleviate the
social
problem.
● Explains
how to
alleviate the
social problem
through
supply.
● Explains
how to
● Describes
how free
market
features could
be used to help
alleviate the
social
problem.
● Explains
how to
alleviate the
social problem
through
supply.
● Explains
how to
● Describes
how free
market
features could
be used to help
alleviate the
social
problem.
● Explains
how to
alleviate the
social problem
through
supply.
● Explains
how to
meet any
criteria.
alleviate the
social problem
through
demand.
alleviate the
social problem
through
demand.
alleviate the
social problem
through
demand.
Level III Max
Points
30 points
Level II Max
Points
25.5 points
Level I Max
Points
21 points
Not Present
0 points
Criterion Score
Criterion 3
(24%)
Market
Mechanisms
and Ethical
Issues
Criterion 4
(16%)
Level III Max
Points
30 points
Level II Max
Points
25.5 points
Level I Max
Points
21 points
Meets all
criteria:
● Discusses
the risks of
introducing
market
mechanisms
where ethical
issues are
present.
● Provides
the risks on
Meets two
criteria:
● Discusses
the risks of
introducing
market
mechanisms
where ethical
issues are
present.
● Provides
the risks on
Meets one
criterion:
● Discusses
the risks of
introducing
market
mechanisms
where ethical
issues are
present.
● Provides
the risks on
the supply
side.
● Provides
the risks on
the demand
side.
the supply
side.
● Provides
the risks on
the demand
side.
the supply
side.
● Provides
the risks on
the demand
side.
Level III Max
Points
20 points
Level II Max
Points
17 points
Level I Max
Points
14 points
Not Present
0 points
Does not meet
any criteria.
Not Present
0 points
Criterion Score
/ 30
Criterion Score
Criterion 4
(16%)
Roles of
Government
and Ethical
Business
Practices
Criterion 5
(10%)
Level III Max
Points
20 points
Level II Max
Points
17 points
Level I Max
Points
14 points
Not Present
0 points
Criterion Score
Meets all
Meets all
Meets all
Does not meet
/ 20
criteria:
● Explains the
roles of the
government in
maintaining
criteria:
● Explains the
roles of the
government in
maintaining
criteria:
● Explains the
roles of the
government in
maintaining
any criteria.
ethical
business
practices.
● Provides
ethical
business
practices.
● Provides
ethical
business
practices.
● Provides
four rules and
regulations on
only three
rules and
only two rules
and regulations
ethical
business
practices.
regulations on
ethical
business
practices.
on ethical
business
practices.
Level III Max
Points
12.5 points
Level II Max
Points
10.625 points
Level I Max
Points
8.75 points
Not Present
0 points
Criterion Score
Criterion 5
(10%)
APA Style
Criterion 6
(10%)
Level III Max
Points
12.5 points
Level II Max
Points
10.625 points
Level I Max
Points
8.75 points
Not Present
0 points
Criterion Score
Meets all
Meets two
Meets one
Does not meet
/ 12.5
criteria:
● Applies APA
style to in-text
criteria:
● Applies APA
style to in-text
criterion:
● Applies APA
style to in-text
any criteria.
citations with
minor to no
errors
● Applies APA
citations with
minor to no
errors
● Applies APA
citations with
minor to no
errors
● Applies APA
style to
references,
style to
references,
style to
references,
with minor to
no errors
● Resources
are from
with minor to
no errors
● Resources
are from
with minor to
no errors
● Resources
are from
reliable and/or
scholarly
sources
reliable and/or
scholarly
sources
reliable and/or
scholarly
sources
Level III Max
Points
12.5 points
Level II Max
Points
10.625 points
Level I Max
Points
8.75 points
Not Present
0 points
Criterion Score
Criterion 6
(10%)
Writing
Conventions
Level III Max
Points
12.5 points
Level II Max
Points
10.625 points
Level I Max
Points
8.75 points
Not Present
0 points
Criterion Score
Meets all
criteria:
Meets three
criteria:
Meets one to
two criteria:
● Does not
meet any
/ 12.5
● Writing is
focused,
● Writing is
focused,
● Writing is
focused,
criteria.
concise, and
organized
● Articulates
at a college
concise, and
organized
● Articulates
at a college
concise, and
organized
● Articulates
at a college
level
● Few or no
grammar or
punctuation
level
● Few or no
grammar or
punctuation
level
● Few or no
grammar or
punctuation
errors
● Uses non-
errors
● Uses non-
errors
● Uses non-
offensive,
inclusive, and
respectful
language
offensive,
inclusive, and
respectful
language
offensive,
inclusive, and
respectful
language
Total
/ 125
Overall Score
Level III
Level II
Level I
Not Present
106.251 points minimum
87.501 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?
Page 7 of 12
8
•
•
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
Page 8 of 12
9
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.
Page 9 of 12
10
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
Page 10 of 12
11
•
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
Page 11 of 12
12
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