Brand Extension: Analysis and Strategies for Successful Launch

This report explores the concept of brand extension and provides strategies for effectively launching a new product under an existing brand name. It discusses the case of Dove Toothpaste and includes topics such as brand value, STP analysis, Ansoff matrix, and competition analysis.

MG412 Principles of
Marketing
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Executive summary- Main objective of this report is to better understand the concept of brand
extension. For this report secondary data is used. Dove Toothpaste is introduce into the market as
a new product under the brand name of Dove. It was analysis that an organisation will effectively
launch a new product under the existing brand name successfully.
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Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Methodology...........................................................................................................................4
Findings..................................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Main objective of this report if to better understand the concept of brand extension. It means
when an organisation will use one of its established brand name on a new product or new
product category (Ertekin, 2019). Main strategy behind a brand extension is to use the company
already established brand equality for effectively lunching its new product in market. For this
repot Dove brand of Unilever is taking into consideration and brand is extended through
launching Dove Toothpaste. Dove was first lunch in the US in 1957 and its products are sold in
more than 150 countries for both women, men and babies. In the US Dove is the leading brand in
the liquid shop segment and enjoying an 11.2% shares. Company will use various campaign
which help them in creating a good brand image. This report will include the concept of brand
value and brand extension, STP analysis, Ansoff matrix and competition analysis.
MAIN BODY
Methodology
This report is based on secondary data which help in successfully understanding the
concept of brand extension and provide various strategies which help an organisation in effective
brand extension. Various references related to the report or study is mention below.
Findings
Existing brand and brand value
Brand- It refers to a business and marketing concept which will assist customers or
people to effectively identifying a particular company product or services. Brand are consider as
intangible which means a person will not actually seen or touch it. Brand will assist in shape the
perception of people towards company and their product (Hemantha, 2020).
Brand extension- It was also known as brand stretching which is a marketing strategy in
which an organisation will use its existing brand name for lunching their new product in the
market. This strategy will help in leverage the brand equity and positioning of the existing
famous brand to get initial traction.
Kapferer’s Brand Identity Prism- This model id developed by J. Kapferer in 1986. It
refers to a concept for describing a brand’s identity through its characteristics. This model will
include six brand elements which are disused below Woven Agency, 2018.
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 The physical- It refers to the tangible physical characteristic of a brand. In context of
selected brand it will include the logo, shapes and other brand assets which are strongly
associated with selected brand in the mind of their customers (Liu, Hu and Xu, 2017).
 Brand personality- This element is often conveyed in the brand voice but a brand design
assets will play an essential role as well. It will include brand characters such as fun-
loving, honest and so on.
 Culture- This element is define that a company internal culture is an integral facet of a
brand’s identity. In context of selected brand one of the reason behind brand
reorganisation is the workplace culture of Unilever.
 Relationship- It will represent the relationship between brand and its audiences. In
context of Dove they will achieve it with the help of better customer service, amazing
experience and guaranteed quality (Nigam, 2018).
 Customer’s reflection- As per this element of brand it was analysis that brand will
targeting its target customers with their messaging and advertisement.
 Customer’s self-image- This element will flips the customer’s reflection on its head,
instead representing the customer’s ideal self.
Description of the target market-
STP analysis- It will stand for segmentation, targeting and positioning. It will assist an
organisation in providing a right product to right customers group. In context of Dove
Toothpaste, various factors are discussed below:
Segmentation- It means divide the whole market needs into various sub groups of
homogeneous need. In context of selected brand they will segment the market on the bases of
demographic and psychographic
Targeting- In context of selected brand, they will target both male, female and children’s
with middle level income (Patrick and Monga, 2020).
Positioning- It means creating a positive brand image in the mind of their customers.
Dove position their product as a personal care beauty product and use its high moisturizer
content to differentiate itself from competitors. For their new product they use high quality
ingredients which create a better image.
Analysis of new market
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Ansoff’s Grid- This matrix is also known as product expansion grid. It refers to a tool
used by firm to analysis and plan various strategies for growth. This matrix will include four
important strategies which are discussed below:
Market penetration- This strategy will focus on increasing the sale of existing products
to an existing market.
Product development- It refers to a marketing strategy in which company will focus on
introducing new product to an existing market.
Market development- This strategy will define that an organisation will focus on
entering into new market using their existing products (Rooksby, 2020).
Diversification- Last marketing strategy included in this matrix will define that
organisation will focus on a new market with the introduction of new product.
In context of Dove Toothpaste, company will use product development strategy in which
they will introduce the new product under their existing brand name into the existing market.
This strategy will assist them in easily adopting their new product in market by their customers.
Explanation of new product-
Tauber’s brand extension options- This concept is developed by Tauber in 1988 and
suggest seven important strategies to identify extension case such as product with parent brand’s
benefits, same product with different price or quality and so on. It will be divided into two parts
that are extension of product related association and non-product related association. It was
analysis that Tauber’s will provide various options for brand extension but for new product
Unilever company will use a strategy in which they shift the product form. In this they will
introduce the new Toothpaste under the brand name Dove.
Product packaging- The packaging of new product is somehow different but it will
include a logo of Dove on it. Which will help their customers to better identify the product and
easy reorganisation (VUKASOVIĆ, Korez and Petelin, 2018).
Brand name- For the new product the brand name is also used as the product was launch
under the brand name of dove.
Brand positioning- It was analysis that company effective advertisement and campaign
will assist in better positioning the brand image which is already effectively position in the mind
of customers.
Competition
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It was analysis that there are various competitors of selected brand and the new Dove
Toothpaste will also face high competition in market as because there are many other brands
which offer the similar product (Zahoor and Qureshi, 2017).
Competitive
factors
Power of
buyer
Power of
suppliers
Competitors Threats of
new entrants
Threats of
substitute
Forces Moderate Low High Moderate High
CONCLUSION
From above discussion on this report it was concluded that brand extension will help an
organisation in successfully launching their new product in the market under the name of their
existing well established brand name. Customers will easily accept their product and company
will not require to expand more in the promotion of their new product. It will analysis that with
the help of Ansoff Matrix Company will adopt an appropriate strategy for their product
expansion.
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REFERENCES
Books & Journal
Ertekin, L., 2019. To Extend and Defend: Essays on How Firms Can Grow and Protect Brand
Equity (Doctoral dissertation).
Hemantha, Y., 2020. An Emerging Concerns on Strategic formulation in Brand
consolidation. Asian Journal of Management. 11(2). pp.181-186.
Liu, X., Hu, J. and Xu, B., 2017. Does eWOM matter to brand extension?. Journal of Research
in Interactive Marketing.
Nigam, A., 2018. Conceptual development of transfer of brand loyalty in brand stretching. World
Review of Entrepreneurship, Management and Sustainable Development. 14(6). pp.730-736.
Patrick, V.M. and Monga, A.S.B., 2020. Building and growing luxury brands: strategies for
pursuing growth while maintaining brand coherence. In Research Handbook on Luxury
Branding. Edward Elgar Publishing.
Rooksby, J.H., 2020. Beware brand concerns presented by variations of domain names. Campus
Legal Advisor. 20(8). pp.1-3.
VUKASOVIĆ, T., Korez, B. and Petelin, S.P., 2018. The Expansion of the Brand through the
Establishment of the Mobile Kitchen System. Management (18544223). 13(1).
Zahoor, S.Z. and Qureshi, I.H., 2017. Social Media Marketing and Brand Equity: A Literature
Review. IUP Journal of Marketing Management. 16(1).
Online
Woven Agency, 2018. What is the Kapferer Brand Identity Prism? [Online] Available through <
https://woven.agency/blog/what-is-the-brand-identity-prism/>
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