Brand Extension Report

MKT10009 – Marketing and the Consumer Experience

STUDENT NAME: TRAN DINH TUONG PHUC

STUDENT ID: 104991250
TUTOR: DR. THUAN NGUYEN (ANNA)
DATE: 27/11/2023 1
WORD COUNT: 1710
Table of Contents
INTRODUCTION……………………………………………………………………………….3

PART 1: TARGET MARKET ANALYSIS……………………………………………..……3 - 5

PART 2: BRAND EXTENSION AND PRODUCT STRATEGY…………………………...5 - 6

PART 3: COMPETITOR AND POSITIONING ANALYSIS ………………………..……...6 - 8

PART 4: MARKETING MIX 7P ……………………………………………………..........8 – 10

CONCLUSION…………………………………………………………………………………10

REFERENCES…………………………………………………………………………..…10 - 11

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Introduction
Studying the target market helps to create a plan for expanding the product and line. Four launch
methods are recognized by Thölke (2001): dictatorship, pioneering, establishing, and following.
Then, it examines Freedom Furniture, whose parent company is Greenlit Brands, and its rivals to
create a marketing mix for the new product.

Part 1. Target Market Analysis

Persona/Segmentation Demographics Psychographics Behavioral

Cindy Le Age: 38 Social class: High Criteria: Expensive yet unique
Occupation: Director of Lifestyle: Enjoys product. Always prioritize
Marketing aesthetics and is meaning and creativity.
Income: High Income constantly searching Frustrations: Finding things
for anything new that are visually appealing and
embrace originality may be
challenging.

Karen Nguyen Age: 25 Social class: Middle Criteria: Always give priority
Occupation: Sales Lifestyle: Lackluster to affordable things above
Employees aesthetic sense and a gorgeous ones.
Income: Lower Income penchant for bulky, Frustrations: Having trouble
basic items spending too much on upscale
goods that are not worthwhile
purchases.

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Andrew Pham Age: 35 Social class: Middle Criteria: Choosing should
Occupation: Logistics of Lifestyle: Owning a always be easy; just a fair
Furniture home with elegant price and attractive
Income: Average Income but not overly appearance are desirable.
excessive furniture Frustrations: Selecting a fair
price requires constant
weighing and measuring.

Persona The fit of the segment with Size and growth
the brand’s
identity/positioning
1 Cindy Le will be a prospective
client of the business and the best
person to buy and use items that
prioritize quality and design.
There will be a sizable
demand for this,
particularly among the
affluent. Revenue may
increase and
penetration is simple.
Structural
Attractiveness
When the new product
requirements and the
consumers' goals for their
product search are
comparable, attracting this
group is simple. Create a
winning plan with ease.

2 Given that her salary and lifestyle
do not align with the company's
goals and offerings, Karen Nguyen
is the least ideal candidate.
Due to the segment's
mismatch with the
company's
development strategy
requirements, this
market has the least
potential.
Attracting and establishing
this group will be
challenging given the stark
differences in the
perspectives of buyers and
sellers. It will be quite tough
to prosper in business here.

3 Although Andrew Pham is a Although this will be This group will be very
possible consumer with a a viable customer simple to contact, but

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 suitable lifestyle, the company's niche, its potential to when these customers'
strategy will be poorly developed generate large financial struggles make it
due to his low income and income is not very harder for the company
simplistic mentality. promising and it will plan to succeed, its
be less steady. efficacy is low.

Part 2. Brand Extension and Product Strategy

All genders with strong aesthetic preferences who work and make a good living will be
the target market. Client objectives will include refinement, originality, luxury, inventiveness,
and distinctiveness. Consequently, line expansion will be the best product business plan.
Starchon et al. (2022) emphasize how important it is for furniture marketing and product
development to prioritize inclusive design and sustainability. The company altering colors and
producing opulent artwork to be printed on furniture, the product would enhance the beauty of
couches, tables, chairs, and mirrors. This product is perfect for all age groups, but it is especially
suited for those in the 25–54 age range who are nearing the peak of their careers because of its
unique style and trendiness (OECD, 2019). Along with meeting this customer segment's stringent
product selection criteria.

1. Brand Element

Brand name: Freedom Aesthetic Furniture will be the brand name of the new item. This kind of
product name will definitely appeal to those who value aesthetics and fulfill customers' searches.

Brand Logo: Using light and dark pastel hues, the logo design will highlight a particular artistic
skill. Deviate from the company's standard design approach to create elegance and inventiveness.
The company's value as a minimalist furniture manufacturer is still maintained, however the new
goods will be more advanced and complex.

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Brand Slogan: "Embrace Liberation in Aesthetic Comfort". The purpose of choosing this phrase
is to highlight artistic merit and beauty in each and every interior set element.

2. Brand Personality"Excitement" and "Sophisticated," which symbolize the new product

and bring originality and innovation while adhering to the trend of luxury and refinement,
will be the two main brand personas. As a result, the business chose to incorporate these
two components into the new offering to generate uniqueness and pique consumers'
interest.

Part 3. Competitor and Positioning Analysis

Competitor Analysis:

When launching a product, it is important to take into account many elements such as the
company, competitors, and customer viewpoints (Benedetto, 1999). Therefore IKEA, Fantastic
Furniture, Harvey Norman, and Amart Furniture are all experts in providing reasonably priced
furniture and home accessories. IKEA is an expert in modern, flat-pack designs. Fantastic
Furniture offers reasonably priced furniture alternatives, Amart Furniture offers a wide
assortment at competitive prices, and Harvey Norman, a direct rival, places a strong emphasis on
in-store experience and customer care.

Positioning Map:

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 Positioning Strategy:

Offering aesthetically beautiful, opulent, and fashionable furniture solutions at a premium

price point is the main goal of Freedom Aesthetic Furniture. The firm aims to strike a balance
between affordability and quality with its new line of creative and personalized items.

Positioning Statement:

By developing distinctive hues and themes from well-known paintings, Freedom

Aesthetics Furniture raises the standard of creativity in the furniture business while offering
recognizable, upscale aesthetic furniture solutions. new heights and the cost, while costly due to
its meticulous craftsmanship, attempts to achieve the ideal balance between quality and cost in
order to make life more attractive.

Value Proposition:

The value proposition of Freedom Aesthetics Furniture is giving clients the chance to improve
their living environments at affordable rates with cutting-edge, distinctive, and aesthetically
beautiful modern furniture. To strive to offer high-quality goods that satisfy affluent customers'
colorful and artistic tastes.

Brand Equity:

In Australia, Freedom Furniture is a well-known brand. Their diverse range of furniture,

dedication to contemporary design, and capacity to cater to various clientele sectors are well-
known attributes. Because of this, the Freedom Aesthetics Furniture product line will make a big
impact when it introduces a totally new style that is of the highest quality and makes the interior
feel beautiful.

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 Brand Relationship:

Through a range of initiatives, including customized customer experiences, loyalty

programs, and participation in their online community, Freedom Furniture cultivates ties with its
clientele. Long-term brand loyalty and client happiness are what they seek to establish.
Consequently, choosing Freedom Aesthetics Furniture will be a smart move in enhancing brand
ties with clients, particularly those who value beauty.

Part 4. Marketing Mix

Product:

Among the stylish furniture pieces that Freedom Aesthetics Furniture will provide are
chairs, tables, and mirrors. During the product design process, premium materials, meticulous
attention to detail, and contemporary aesthetics will all be prioritized. The furniture will suit a
variety of preferences and aesthetics, offering customers a multitude of options.

3-Level of Product:

 Core Product: Provide clients with opulent design. Enhance visual gratification with
a luxurious design
 Actual Product: The logo's sumptuous pastel color scheme, which conjures an upscale
and creative atmosphere, adds to the design's freshness. The next product categories
include tables, chairs, sofas, and mirrors; all are constructed from the company's standard
materials. Instead, a fresh and exclusive ambiance is created by printing well-known
artworks on furniture and using specialized coloring techniques.
 Augmented product: To choose the ideal model, a team of employees with creative and
intellectual accomplishments will improve customer service. As well as a promise and
dedication to an extended warranty year, the aesthetic furniture will receive monthly
cleaning and maintenance to keep it in top condition. There will be international delivery
services added.

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 Price:

The pricing range of rivals is between 758.40 and 2275.22 AUD. Additionally, the range
for Freedom Furniture is 1516.81 to 3792.03 AUD. Because of the design and production phases,
the price strategy will be positioned at a high level. bringing in a fair price while maintaining the
perception of high-quality craftsmanship and beautiful design. Freedom Aesthetic Furniture has
an official price range of 5308.84 to 7584.05 AUD. The Australian furniture industry, valued at
11 billion dollars (Statista, 2023), has enormous potential for the introduction of a novel product.
However, at this price point, the break-even rate will be reached in two years, since the
preparatory phase only contributes around 85% of the total cost.

Place:

According to Grant Merriel (2021), Freedom Aesthetics Furniture plans to open actual
retail outlets in major shopping malls and prospective urban regions including Melbourne,
Sydney, Canberra, Adelaide, and Perth. These locations will allow customers to engage and
experience the furniture firsthand. In order to reach a larger consumer base and facilitate quick
shopping, an online store specialized in attractive furniture will also be launched.

Promotion:

To raise interest in and knowledge of its beautiful furniture designs, Freedom Aesthetics
Furniture intends to employ a variety of advertising techniques. These include email marketing
campaigns, involvement in home and interior design shows, partnerships with bloggers and
influencers in the interior design space, and internet and social media marketing. Additionally,
the business will employ professional salespeople at retail locations to help clients with
recommendations, product knowledge, and a pleasurable shopping experience. The employees
will receive training so they can offer tailored advice and comprehend various interior design
philosophies.

People:

The retail locations will have well-trained and informed sales personnel on hand to aid
consumers with product information, and suggestions to make the purchasing process enjoyable.

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The employees will get training on several interior design philosophies so they can provide
clients with tailored recommendations according to their needs and tastes.

Process:

Whether clients want to shop online or in real locations, the purchasing procedure will be
made simple and effective. We will swiftly respond to customer questions and complaints by
phone, email, and social media. Freedom Aesthetics Furniture will concentrate on offering a
seamless and hassle-free client experience from order placing to delivery and after-sales care.

Physical Evidence:

In order to represent the brand's aesthetic approach and present the furniture in an
inspiring manner, Freedom Aesthetics Furniture will design a visually appealing and welcoming
retail space. The tangible proof will demonstrate the brand's dedication to beautiful design,
quality, and craftsmanship.

Conclusion
The purpose of this study is to make recommendations for a new product launch strategy
for Freedom Aesthetics Furniture, a company that sells fashionable furniture in a range of
aesthetic designs. The product is a useful addition to any area because it is targeted at a popular
segment with little room for profit.

References

Benedetto, C. A. (1999). Identifying the Key Success Factors in New Product Launch. Journal of

Product Innovation Management, 16(6), 530–544. https://doi.org/10.1111/1540-

5885.1660530

Job mobility in Australia - McCrindle. (2014, June 18). Mccrindle.com.au.

https://mccrindle.com.au/article/job-mobility-in-australia/

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Merriel, G. (2021, June 11). 5 Best Cities In Australia To Launch A Business And Succeed.

B2bhq. https://b2bhq.com.au/best-cities-in-australia-for-startups/

OECD. (2019). Employment - Employment rate by age group - OECD Data. TheOECD.

https://data.oecd.org/emp/employment-rate-by-age-group.htm

Starchon, P., Hitka, M., Miklosik, A., & Kocisova, L. (2022). Furniture Marketing and Product

Development. Sustainable Business Development Perspectives 2022.

https://doi.org/10.5817/cz.muni.p280-0197-2022-23

Statista. (2023). Furniture - Australia | Statista Market Forecast. Statista.

https://www.statista.com/outlook/cmo/furniture/australia

The4. (2022, December 1). Top 50 Furniture Manufacturers in Australia. Odin Furniture.

https://odinfurniture.com.au/blogs/news/top-50-furniture-manufacturers-in-australia

Thölke, J. (2001). Launching new product features: a multiple case examination. Journal of

Product Innovation Management, 18(1), 3–14. https://doi.org/10.1016/s0737-

6782(00)00068-0

Top Furniture & Homeware stores in Australia | ECDB.com. (n.d.-a). Ecommercedb.com.

Retrieved November 27, 2023, from

https://ecommercedb.com/ranking/stores/au/furniture-homeware?

page=1&pagesize=50&specialist=all&currency=USD

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