MKTG 600 American Military University Brand Extension Research Paper

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MKTG 600

American Military University

MKTG

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Brand Extension Assignment: Choose a product write a 5 page paper discussing how you would create a brand extension of that product. Include your rationale for the brand extension.

Areas to include:

Brand (to include a brief background)

Extension idea

Ration/justification or need for the new idea relate the idea back to the company's mission statement

Target market

Marketing/launch strategy (to include pricing and channel strategy)

Ethical considerations

You MUST upload assignment into the ASSIGNMENT Container as a Word document.

Please name your assignment file as 'lastnamefirstinitial-MKTG600-assignment#

Course Objectives:

  1. Develop a Marketing Plan
  2. Define the types of marketing research
  3. Analyze potential pricing alternatives.
  4. Define channel strategy
  5. Design a sales management plan.

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Explanation & Answer

Hello, find the answer attached.

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Brand Extension: Smirnoff Beer

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Brand Extension: Smirnoff Beer
Brief Background
Smirnoff Vodka is one of the renowned spirits brands not only in the united states also
across the world. The vodka is produced and owned by Diageo, a British company. In particular,
Smirnoff Vodka in over 130 countries, with its production centered in numerous countries,
including Italy, the Philippines, the United States, the United Kingdom, India, Brazil, and
Mongolia (Smirnoff, 2021). Smirnoff Vodka is very popular among young people in the age
bracket of 18-35 years of age (Super Brands., 2021). It is also significantly popular among the
working class and lower-middle-class consumers. Moreover, the brand is highly preferred in
‘hard’ partying, which is highly common among the youth. Essentially, Smirnoff’s popularity, its
scale of production and distribution can arguably be leveraged for the brand extension to another
product like Smirnoff Beer because this would give the new Smirnoff beer a great advantage in
its class of alcoholic products and, most importantly, in the market.
Brand Extension Idea
As noted, the extension idea involves developing a new beer product in a new product
line under the brand name Smirnoff Beer. Smirnoff Beer will be sharing a brand name with the
signature Smirnoff Vodka. Different marketing studies have asserted the benefits of brand
extension; one of them is benefiting from the dominance of the signature brand or product (Chiu
et al., 2017). In such a case, the company is able to cut down marketing costs as efforts spent in
building awareness of the new product are minimal as a result of the consumer trust and loyalty
ties to the signature brand or product. It is this understanding that informs the aim to leverage the
popularity and dominance of Smirnoff Vodka, which the signature product in introducing
another product (Smirnoff Beer) in the market under a new product category, new positioning as
well as the new target market.

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Smirnoff Beer aligns with Diageo’s mission, to which Smirnoff Vodka has significantly
affirmed in its market. Diageo’s mission states that ‘to fulfill our ambition we know that we must
earn the trust and respect of everyone we deal with. That’s why our culture is rooted in a deep
sense of our purpose and values. These values underpin our business and guide how we work’
(Comparably.com, 2021). The company’s mission statement essentially underpins its
commitment to winning consumer trust not only through producing products popular for their
quality but also by availing them on sufficient scale. Such underscores the fundamentals of
Smirnoff Vodka and which cans be successfully exploited to replicate Smirnoff Beer in a new
product category.
Target Market
While the target market for Smirnoff Vodka is predominated by young and vibrant adults
between the age of 18 to 35 years, as well as the working class, beers, and particularly, the
Smirnoff Beer, significantly differ in targeting. Beer consumers cut across different age brackets,
income classes, genders, and regions. According to studies, of the total adults above 21 years,
59.9 percent and 37.4 percent of beer consumers are males and females, respectively
(Bevindustry.com., 2021). In terms of household income, about 40 percent of beer consumers
live above $75,000 annually, while on the lower end, 4.2 percent of beer consumers live below
$10,000 dollars annually (Bevindustry.com, 2021). In the case of age, about 7percent of beer
consumers are between 21 and 24 years, 20 percent between 25 and 35 years, 18 percent between
35 and 45 years, and 45 percent of consumers are above 45 years of age (Bevindustry.com,
2021). Further, in terms of regional consumption, particularly in the United States, beer
consumption is high in the south with about 30 percent of consumers, followed by the west with
about 22 percent, Middle West with about 21 percent, and northeast with about 18 percent

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(Bevindustry.com, 2021). Such statistics assert the relative distribution of beer consumers across
demographics and regions and the target markets on which Smirnoff Beer should focus on.
Market...


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