Brand Extension

Brand Extension Marketing Plan – Situational Analysis

Yankee Candle

Michelle Burks

GB530 – Unit 2

August 5, 2012

2.0 SITUATION ANALYSIS

Yankee will be entering the cosmetic and beauty industry by creating a new line of lotions and creams. The development of a quality product that offers natural and organic products will meet the most basic needs however the product line will also allow the company to differentiate their product from their competitors. Marketing of the new brand product as well as gaining loyalty from existing customers will be key driver to the company’s success.

2.1 Market Summary

Growth within the industry will steadily increase as the economy rebounds and consumer demand for new, more effective products exists. The customers for the new lotion and cream line are women ages 25-44 (representing approximately 50%) however the baby-boomer generation may be attracted due to the benefits of the product line. Although the income of customers will be more than $50,000, a majority of users will have an income closer to $100,000. Consumers will be willing to pay more for premium product and the demographics reflect those values. The overall growth of the market will continue to see an increase of at least 3-5% however companies that offer organic or natural beauty products will see an even higher return.

2.1.1 Market Demographics

Geographics

* The company will initially offer the product line in their U.S. based retail stores and through wholesale networks however with the multiple marketing avenues it will be possible to sell products internationally through the direct mail catalog and company internet.

* Consumer demand will dictate company’s decision to market the products in their Canadian retail stores.

Demographics

* Female users outnumber men over 2 to 1 with men generally purchasing products as gifts.

* Women ages 25-44 will represent approximately 50% of the users while the 45-54 age group...