In 4–6 paragraphs, summarize your Brand Extension Marketing Plan. Be sure to include:
Product
Benefits
Target markets
Customer needs
Value proposition
Sales projections
When you project to break-even
Your keys to success
2.0 Situational Analysis
Write a 1-paragraph summary of the current situation
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.
Full Answer Section
Target Markets: Our primary target market includes [demographic description - e.g., young professionals, families with children]. We also see potential in attracting customers who [describe secondary target market - e.g., value-conscious consumers, environmentally conscious consumers]. We identified these markets due to [reasons for targeting these groups - e.g., their growing interest in the product category, their alignment with the brand's values].
Customer Needs: Our target customers are looking for [list customer needs - e.g., convenience, affordability, quality products]. We conducted a customer value assessment and identified that [key finding from customer value assessment - e.g., price and quality are the most important factors for this customer segment].
Value Proposition: [Insert your new product name here] offers a compelling value proposition by [explain how your product addresses customer needs - e.g., delivering the same trusted quality at a more accessible price point].
Sales Projections and Break-even Analysis: We project to achieve [sales target] within the first year and break even within [timeframe] based on our market research and initial investment projections.
Keys to Success: The success of this brand extension hinges on [list key factors - e.g., effective marketing campaign targeting the right audience, maintaining brand consistency while offering a differentiated product, ensuring high-quality product delivery].
2.0 Situational Analysis
The current market landscape for [product category] is experiencing [describe current market trends - e.g., steady growth, increased competition]. This presents both challenges and opportunities for our brand extension. We need to be mindful of [challenges - e.g., established competitors, consumer price sensitivity] while capitalizing on [opportunities - e.g., growing market demand, brand recognition from our existing product line].
Sample Answer
Product: [Insert your new product name here] - This product is a brand extension of [original product name], a well-established brand known for [key qualities]. [Insert your new product name here] offers [brief description of the product and its key features].
Benefits: [Insert your new product name here] builds upon the existing brand trust and offers several benefits to customers, including [list of benefits - e.g., improved functionality, caters to a new need, more affordable option].