Principle of Marketing - Assignment

Principle of Marketing

Executive Summary
Marketing is the activities that is involved in transferring of goods from seller to buyer
including storing, advertising, shipping and selling. Principle of marketing includes 4P's such as
product, price, place and promotion. The given assignment is based on Dove which is planning
to launch its new product in toothpaste segment. The aim of report is to do study about brand
extension under same brand name having different product. Here, method of research is primary
where data collected through survey, market research and observation. As it help company to do
brand extension in UK market targeting upper middle class people of society. This helps in
increasing market share, size, increasing profit and sustainability.

Table of Contents
Introduction......................................................................................................................................4
Methodology....................................................................................................................................4
Findings............................................................................................................................................4
..........................................................................................................................................................8
Conclusion.......................................................................................................................................9
Reference List..................................................................................................................................9
.........................................................................................................................................................1

Introduction
The chosen brand is Dove founded in 1955 at United Kingdom by Unilever. The products
of Dove are manufactured in Australia, Canada, India, Germany and many more. It is personal
care brand sold in more than 80 countries and offered to men, women and babies. It logo is
silhouette profile which represent namesake bird. The market share of Dove is 21.5% and market
size is very large. Recently Dove has launched baby shop which is first new category in US. This
baby dove product has two separate line such as sensitive moisture and rich moisture. In rich
moisture it has bar soap and shampoo whereas in sensitive moisture such as hand and face wipes,
body lotion, body wash (Armstrong and et. al., 2014).
Methodology
The research methodology was based on primary research where Dove collected data for
first time which includes survey, observation and market research. Here, questionnaire was
prepared for collecting review of people regarding new brand extension of Dove in toothpaste.
Also market and its competitors was analysed to know about current trends and its people need
and demand. This research helps in better brand extension for existing brand product.
Findings
Existing brand and brand values
A brand is any identification which can be symbol, logo, mark, name, word, sentence that
companies use in order to distinguish their products and services from others. It is used in
marketing, business and advertising.
The brand value of Dove is already high because of its goodwill and image in market. It
provide high quality products to their customers. Currently, it is launching toothpaste for upper
middle class people aged between 15 to 60. It analyse market and understand need and demand
of individual. Dove has 20 million young people now it wan to increase more 20 million by
2020. Thus, it can easily increase their brand value from their target customers. It is renowned
brand and has created good market value. It can easily compete with competitors.
Brand extension is marketing strategy in which new product is introduced under same
existing brand name. Here, company is already branded in market with pre defined image and

use same brand name for different category of products. The best example of brand extension is
Dettol which is manufacturing bath soap, shaving cream, antiseptic cream and many more.
Kapferer's Btand Identity Prism
Brand identity was identified by Kapferer in 1986 which is outward expression of brand
such as name, communication. It is divided into six elements which are:
Brand Physique- It is physical qualities and specifications of brand. Example- Coco-Cola
the bottle and its look itself communicates (Armstrong and et. al., 2015).
Brand Personality- It is character of brand which is known by specific style or design.
Example- Mountain Dew that represent loops in celebrities.
Brand Culture- It is value and principle on brand that represent behaviour. Example,
Coco-Cola represents American values (Challagalla, Murtha and Jaworski, 2014).
Relationship- It represents relationship of brand manager with their brands. Example,
lexus differentiate it from BMW by giving red carpet treatment to its customers.
Reflection- This makes reference to stereotypical user of brand and source for
identification.
Self image- It is kind of mirror that target group holds up to itself. Example, BMW has
launched campaign for people who see themselves driving BMW.
Descriptions of target market
STP of Dove toothpaste is as follows:
Segmentation- It has segmented its brand in United Kingdom market on basis of age
group, income level.
Targeting- Dove has targeted upper middle class people and age group between 15 to 60.
Positioning- For positioning, it has used advertising, campaign to create awareness
among people regarding product and reach it maximum.
Analysis of new market, including trends
PEST Analysis-
Dove toothpaste has to use PEST before introducing product in market. According to
analysis, P stands for Political which means product should be manufactured according to
government safety and health rules. E denotes economic which means price should be fair. S
represents social which should be as per need and demand of customers. Finally, T denotes
technology which means Dove should use latest and updated machinery and equipment for

manufacturing of toothpaste (Sargeant and MACQUILLIN, 2016). Under PEST analysis, Dove
can launch toothpaste when the economy of country as well as people is high so that there
demand is high. As if it launched product during Brexit then it cannot get success because of
migration of people from one place to another leads problem for industry to survive.
The PEST analysis of Dove toothpaste is described below:
Political- It means political stability in market where company is operating. During
Brexit, there is higher import duties on product was levied which direct impact product pricing.
Thus, as dove is new renowned product but due to Brexit it is not suitable for it to launch
toothpaste.
Economic- Due to Brexit, there is high fluctuation in exchange rates which impact
product price and increase competition. Here, it is advice-able not to launch toothpaste because
of exchange rate. In case Dove launch its product then it has to bear loss.
Social- As there is less supply of goods which increase risk because of Brexit. The taste
and preference of people changes due to their purchasing power. Thus, Dove toothpaste should
not be launched right now.
Technology- Brexit has directly impact on UK. As EU has strict law related with
environmental protection. In order to survive in market new technology should be launched.
Here, dove toothpaste need to use latest technology for production, if it want to introduce good in
market.
Ansoff's Grid Model-
This model was developed in 1957 for product and market strategy which has four
divisions such as:
Market Penetration- Firm seeks to achieve growth within existing products and market
aiming for increase market share.
Market Development- Firm seeks growth through targeting existing product to new
market segment.
Product Development- Firm develop new product to existing new market segment. This
division is helpful for Dove as it is launching new product that is toothpaste in existing market.
Diversification- Firm grows through diversifying into new business by launching new
products for new markets (Shukre, 2013).
An explanation of new product

Tauber has given many brand extension option to firm out of which Dove has selected
extension of brand image or prestige. As Dove has already created its goodwill and image in the
market. Thus, it is very easy for it do further extension on product under same brand name.
Under product packaging Dove has selected unique style where the name of brand and product is
at front of tube of toothpaste and remaining things on back. Dove has selected same brand name
because people are aware of this brand because of its goodwill, image and quality which it
provide at market place. Similarly, for brand positioning it uses newspaper, television and social
media to create awareness among consumers and fulfils their need and requirement (Armstrong
and et. al., 2014).
Competition
There are many competitors of Dove toothpaste such as Colgate, Sensodyne providing
same features and quality in product. It need to provide unique feature in it, so that it can survive
in market. It should bring innovation in its product keeping in mind the need and demand of
customers. It can survive in market if understand its target consumer requirement.
Target Market
It means group of consumer or organisation who want to purchase goods and services.
Here, Dove toothpaste has focused upper middle class people residing in society. It has targeted
its market on basis of its consumer requirement.
The competition of Dove toothpaste is explained with help of marketing mix which is
described below:
Marketing Mix Brand extension of Dove toothpaste with other Competitors
Product The toothpaste manufactured by Dove is totally different from others. As
this contain Carbamide Peroxide more for whitening teeth as compared to
other toothpaste available in market.
Price Dove toothpaste has focused upper middle segment of society due to which
it cost is high as compared to other brand. As people are ready to pay for it
because of its brand value and goodwill at marketplace.
Place It has cover whole market of United Kingdom for trial basis and once it get
established will move towards further extension in other countries.
Promotion For promotion tool, it uses social media, television and celebrity to endorse

product in market. Celebrity endorse really attract more people to purchase
product which cost is high as it cannot be afford by all brands.
Comparison between Dove toothpaste and Colgate
Dove toothpaste contain Carbamide Peroxide more in quantity in order to whiten teeth as
compared to Colgate. As both has segmented upper middle segment of society. Dove is
renowned brand which has high brand value which can easily capture market because of its
quality. Now s days, quality of Colgate is decline due to which many customers have switched
their toothpaste from one to another.
The logo of Dove Toothpaste

Conclusion
From above report it can be concluded that brand extension is easy for Dove in
toothpaste segment because of its goodwill and image in minds of customer as well as market.
Thus, Dove brand has to do proper research for surviving in market and increasing sustainability
and profitability. It has targeted upper middle class people aged between 15 to 60. As it is facing
competition with other such as Colgate, Sensodyne. Through PEST analysis of Dove toothpaste,
it can be concluded whether to operate business in market or not. The report has also covered

comparison between dove toothpaste with other to know about their product, price, place and
promotion activities.
Reference List
Armstrong, G., and et. al., 2014. Principles of marketing. Pearson Australia.
Armstrong, G., and et. al., 2015. Marketing: an introduction.
Challagalla, G., Murtha, B. R. and Jaworski, B., 2014. Marketing doctrine: A principles-based
approach to guiding marketing decision making in firms. Journal of Marketing. 78(4).
pp.4-20.
Sargeant, A. and MACQUILLIN, I., 2016. Marketing for nonprofit organisations. In The
Marketing Book (pp. 555-576). Routledge.
Shukre, A., 2013. Marketing management.

Topic: To analyse role of promotion in enhancing sales and profitability. A case study on Marks
and Spencer.
 To understand the concept of promotion.
 To determine different promotional technique used by Mark & Spencer.
 To identify the role of promotion in increasing sales and profitability of Mark & Spencer.
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