MG412 Principles of Marketing - CW2 Brand Extension Report

This report discusses the principles of marketing and the development of a new brand extension for Dove toothpaste. It includes an analysis of the target market, new market trends, and competition. The report also covers the Ansoff Matrix and Tauber's Brand Extension strategies. The conclusion highlights the importance of marketing in introducing and developing a product in the market.

PRNICIPLES OF
MARKETING

Table of Contents
Executive Summary.........................................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Existing brand and Brand Values...........................................................................................1
Description of the Target Market...........................................................................................2
Analysis of the New Market, Including Trend.......................................................................3
An Explanation of the New Product.......................................................................................5
Competition............................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Brennan, R. and Vos, L. eds., 2021. Teaching Marketing. Edward Elgar Publishing.....................7

Executive Summary
Marketing basically involves a wider concept which involves various activities that involves
various activities which also involves advertisement of services or products. The process of
marketing involves various principles that are basically followed by the marketing managers
for the purpose to create a difference. The report is based on the development of an idea for
the new brand extension which is based on the Dove toothpaste.
INTRODUCTION
Marketing basically involves the function that focusing on the advertisement and promotion
of the products that is being offered by the organisation or a company. In the process of
marketing it involves various principles and tools for the purpose to attract more and more
customers and to create a competitive edge. In the entire brand extension process, the
marketing mix and STP plays a very significant role for the purpose to enhance the brand
value and its presence in the marketplace. In this report it involves the brand extension of
Dove. Dove is basically a personal care brand which is owned by the Unilever. The report
involves the demonstration of the knowledge of STP marketing planning process with
identification of the key components of the marketing environment with the research
requirements in order to solve a marketing or business problem in the organisation
(Maravilhas, 2019).
MAIN BODY
Existing brand and Brand Values
Brand: It can be particularly categorised as the symbol, design, term or name or any feature
that helps in identification of a particular seller’s service or good that makes it different from
other sellers (Brennan and Vos, 2021).
Brand Extension: A brand extension also known as brand stretching which is basically a
marketing strategy where a organisation is involved in marketing a product with the already
developed brand image with the same brand name but in a different product category.
Brand Identity Prism: It basically involves the concept that involves six elements of the
brand’s identity. The model works as diagram in order to better understand these elements
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and to relate to another one. Moreover these elements helps the organisation to build a
stronger image of the company which further helps in communicating in a easy manner
which can be clearly recognized and remembered. The main elements of this model
involves personality, self image, reflection, physique, culture, relationship etc. As per this
model, the brands of are capable to weave all of these aspects can easily create a appealing,
clear and concise brand identity. The model places these six elements in relation to each
other by considering their position in the organisation( Mensah and Amenuvor, 2021).
Description of the Target Market
STP is considered to be one of the effective strategy that basically divides the whole market
into small segments for the purpose to target a position or group in the services or product
among the target audience. It is considered to be a significant tool of marketing that
basically helps in creating a formulate and difference positive brand image at the market
place. A detailed information and analysis of STP of Dove is mentioned below:
Segmenting: It basically involves the process of dividing the market into smaller segments
that involves similar attributes (Sharma, Kaur and Syan, 2021).With the help of this the
organisation can easily cater the needs and demands of the various consumer groups. The
segmentation is done on the following basis and can be described as :
Demographic: It basically involves the characteristics such as education, gender, age,
marital status, income level, occupation and various other factors.
Geographic: It basically involves dividing the audience according to the states, region,
country which is basically categorised as the geographic segment.
Psycho graphic: It basically involves making segments according to the lifestyle,
personality, behaviour and various other factors.
Behavioural: It basically comprises of the ways of using a particular product and also
involves the benefits of product to a customer, loyalty and various other factors (Gossen,
Ziesemer and Schrader, 2019).
In context to Dove, the organisation uses Pyscho graphic segment as the brand appeals to
women for the objective to get a better skin. Moreover now they are stepping into making
toothpaste and are expanding from making soaps to toothpastes. In addition to that the
organisation is also using Demographic segment as they involves products which are mainly
for the female category who are basically from the middle class income group and who wish
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to get a glowing skin. The organisation basically targets the women above the age group of
18 years and who are very well concern about taking care of their skin.
Targeting: It is basically the next step of the STP model that involves target audience which
is basically selected through various segments. In context to targeting, the managers carries
out various necessary analysis and detailed information which is related to the sustainability,
profitability and growth and also involves various other factors and further selects the target
audience. Moreover, the brand monitors the various constraints and legal barriers before
choosing a target segment. In context to Dove, it targets the women of all age group and
now with their toothpastes they are focusing on targeting every gender and all age groups.
Positing: After targeting, the next step is to position the product in the mind of customers.
The right and the effective positioning helps in formulating the loyal base of the consumers
and also helps in providing a competitive edge to the organisation by increasing the number
of loyal customers and audience.
Analysis of the New Market, Including Trend
The pestel analysis is basically a framework that helps a company or organisation to
establish and understand the various factors that can have a impact on the internal
environment and operations of the organisation. In context to Dove, the organisation uses
Pestel Analysis in order to examine the various external factors that basically involves the
technological, social, economic and political factors along with the environmental and legal
factors.
Political Factors: In context to dove, Unilever is the parent brand and headquartered in
London. In context to Dove, in order for the brand to maintain its growth in the market it is
important for the organisation to run in a stable political environment.
Economic Factors: The exchange rates of various currency have a major effect on the profit
making capacity. In context to dove, the GDP growth rate of the company has a potential
growth in the market.
Social Factors: In context to Dove, the organisation focuses on creating a appeal for the
women to came out of their regular routines and come forwards towards caring their skin.
The organisation and its advertisement basically focuses on women and the main target
audience of the company is the women with the age group of 20-35.
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Technological Factors: It basically involves technology and innovation. In content to Dove,
the technological advancement helps in attracting more crowds, reducing the overall costs of
the products and increasing the profits directly.
Legal Factors: It basically involves the legal laws and regulations. In context to Dove, the
organisation has its own proper rights and in addition to that the product and technological
level development need to be protected well within the law.
Environmental Factors : In context to Dove, the main focus of the organisation is on the
female age group and its manufacturing process should not involve any kind of killing of the
normal species and killing of any animal. In addition to that wasted produced wile
manufacturing the toothpaste and soap should not harm the environment in any way.
Ansoff Matrix of Dove : The ansoff matrix is basically a strategic tool which helps the
organisation to make decisions in order to develop and grow business operations. The tool
basically offers four strategic choices that includes diversification, market penetration,
product development and market development. In context to Dove, the organisation uses
ansoff matrix that helps in its global operations and taking decisions related to growth
choices.
Market Penetration: It is basically used by the organisation in order to seek growth for the
existing product in the market place where the brand is already existing. Through market
penetration, it will help the organisation dove to reach out to more and more consumers for
its new brand expansion. In addition to that the organisation can identify the new
characteristics and features in the existing products for the existing markets and will also
facilitate the organisation to improve its overall market penetration.
Market Development: With the help of market development strategies, the organisation can
enhance its growth of business through introduction of existing product in the new market.
In context to organisation, in order to introduce its range of toothpastes, the organisation
should invest in the development and research for the purpose to identify the new consumer
segments for the toothpaste. Moreover, the organisation should also focus on understanding
and identifying the various trends, culture and behaviour of the consumers that will help
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them to differentiate among various consumer patterns (Kusuma, Nurdyansyah and Fahyuni,
2020).
Product Development : It basically involves a organisation seeking to expand its business
growth in the current with the help of new products which is basically termed as the product
development. In context to dove, the organisation through its new product toothpaste can
attact all the gender and age groups in order to enhance the offerings which will help in
increase in the consumption and sales of the product. The company can engage in various
R&D activities for the purpose to identify and the understand the new points of the demand
of the consumer.
Diversification: It basically involves the growth and development which basically occurs
when a organisation is engaging in a new product or service in new markets. With the help
of the diversification it helps the business to remain in a competitive, competent and
innovative environment (Kaur, 2019).
An Explanation of the New Product
Tauber’s Brand Extension: It involves the seven strategies in order to identify the extension
cases which involves benefit of the parent brand.
Product Packaging basically involves the creation of the exterior of a product which also
involves the fonts, graphics, colors which are basically wrapped into any type of container,
box, can or bottle. In context to Dove, its toothpaste packaging involves a tube container
with outer packaging in a box with all the necessary labels (Vildayanti, 2020).
Choice of a brand name: It basically involves the brand name which basically reflects the
unique features and benefits of the product. The second approach is to basically create a
distinctive and unusual brand name through creating brand awareness.
Brand Positioning: It basically involves the act of designing the organisation’s image or
offering in order to occupy a distinctive place in the mind of the target market.
Competition
A competitor analysis basically involves the competitor’s strengths, features, customer
reviews, culture, pricing, differentiators and customer reviews. In context to Dove
Toothpaste its main competitor is Colgate. Colgate is basically a American brand which was
founded in 1873 and offers products such as toothpaste, mouthwashes, dental floss etc
(Shaikh and Kazmi, 2021).
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Dove Colgate
 Dove adopts Premium pricing strategy.
Its price is quiet high from other
competitors.
 As the brand is perceived as a quality
product thus women are willing to pay
some extra amount to get a standard
product.
 Colgate uses Competitive pricing
strategy. It emphasis to keep the price
lower to get an edge over rivals.
 In addition it comes in affordable
pricing range. The brand offers various
discounts to attract more number of
buyers (Heggde and Shainesh, 2018).
CONCLUSION
From the above report it can be concluded that marketing plays a very important role in
order to introduce and develop a product in the market place and more the various principles
of marketing plays and helped a lot for the Dove brand to introduce its Range of
Toothpastes. Moreover the report helped in analysing the target audience with the help of
analysing various factors of the market with competitor analysis and brand positioning.
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REFERENCES
Books and Journals
Brennan, R. and Vos, L. eds., 2021. Teaching Marketing. Edward Elgar Publishing.
Gossen, M., Ziesemer, F. and Schrader, U., 2019. Why and how commercial marketing should
promote sufficient consumption: A systematic literature review. Journal of
Macromarketing, 39(3), pp.252-269.
Heggde, G. and Shainesh, G. eds., 2018. Social media marketing: Emerging concepts and
applications. Springer.
Kaur, G., 2019. Is obsession with data and analytics making future marketers analytical
researchers? A conceptual customer relationship marketing model for customized
marketing education. Journal of Education for Business, 94(8), pp.569-575.
Kusuma, A.D.K., Nurdyansyah, N. and Fahyuni, E.F., 2020. Sharia Marketing Strategy in
Attracting the Interest of Students of SD Muhammadiyah Satu Sedati,
Sidoarjo. Proceedings of The ICECRS, 7.
Maravilhas, S., 2019. Marketing and Marketing Plan for Information Services. In Advanced
Methodologies and Technologies in Digital Marketing and Entrepreneurship (pp. 620-
632). IGI Global.
Mensah, K. and Amenuvor, F.E., 2021. The influence of marketing communications strategy on
consumer purchasing behaviour in the financial services industry in an emerging
economy. Journal of Financial Services Marketing, pp.1-16.
Shaikh, A.L. and Kazmi, S.H.A., 2021. Exploring marketing orientation in integrated Islamic
schools. Journal of Islamic Marketing.
Sharma, R.R., Kaur, T. and Syan, A.S., 2021. Contemporary Issues in Sustainability Marketing.
In Sustainability Marketing. Emerald Publishing Limited.
Vildayanti, R.A., 2020. Analisis Strategi Marketing Mix (4p) Dalam Meningkatkan Volume
Penjualan Pada Perusahaan Jasa Periklanan Bigevo Di Jakarta Selatan Tahun
2019. JIMEK: Jurnal Ilmiah Mahasiswa Ekonomi, 3(2), pp.247-272.
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