Brand Extension Strategy for Fairy Charcoal Toothpaste

This project report evaluates the brand extension strategy for Fairy Charcoal Toothpaste, a proposed product offering tooth whitening and protection. The report includes an analysis of the target market, competitor analysis, and conclusion on the potential success of the brand extension strategy.

Principles of Marketing
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EXECUTIVE SUMMARY
In the following project report, a brand extension strategy for Fairy Brand, a liquid washing
detergent, is being evaluated. Fairy Characoal Toothpaste is the proposed brand extension
strategy which has high value proposition for the customers in terms of offering tooth whitening
and protection. The target market of the brand includes people aged between 18-45 years. It has
been concluded from the report after the competitor’s analysis that brand extension strategy for
Fairy has huge potential and can be successful.
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Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
METHODOLOGY..........................................................................................................................4
MAIN BODY..................................................................................................................................4
Existing brand and brand values:.................................................................................................4
Description of the target market:.................................................................................................5
Analysis of the new market:........................................................................................................6
An explanation of the new product:.............................................................................................6
Competition:................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
In the following project report, an attempt has been made to produce a brand extension
strategy for Fairy with respect to Fairy Charcoal Toothpaste. Fairy is a liquid washing detergent
brand which is British and the production unit of the Brand is located at England. Products which
are offered by the brand are being sold in most parts of the UK and the sales of the Fairy brand in
2016 were £319.3m which is approximately 30% share of the total market (Summary Results,
2016). In the following report, brand extension strategy is being evaluated with the help of
competitior analysis and application of other marketing models.
METHODOLOGY
The following research has been carried out primarily with the use of secondary research
methods and the data and information which has been obtained with secondary research is
adequate to justify the conclusions of the research.
MAIN BODY
Existing brand and brand values:
A brand can be defined as a product or a service which is differentiated or distinguished in
the market from the other products to facilitate its easy communication and promote the product
in the market. In simple terms, it can be referred as the particular product being manufactured by
any company under any specific name. Brand extension can be defined as the strategy which
involves using any existing brand name for offering or launching a new product in the market
(De Chernatony, 2010). Brand extension has the primary objective of increasing the sales and
profits of a brand.
Kapferer’s Brand Identity Prism:
In the year 1996, Jean-Noel Kapferer put forward a theory where he suggested that there
exists six elements which are interrelated and can be identified as the elements which forms an
identity of the brand. All the elements are in close relation with one another and helps any
business organisation in developing a strong brand (Kapferer, 2009). Application of this model
with respect to six key elements for Fairy Brand is as follows:
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(Source: https://howbrandsarebuilt.com/blog/2018/12/21/the-brand-identity-prism-and-how-it-
works/)
1. Physique – It refers to the physical characteristics and the visuals of the brand such as its
logo, the product design etcetera. Physique of a brand helps in reflecting its core values
with the help of packaging, colour and logo design. Fairy is green coloured liquid which
reflects refreshment and harmony.
2. Personality – It can be termed as an element which corresponds to the picture or the
imagination of the brand as a living thing in the eyes of the consumer.
3. Culture – It refers to the values or the set of beliefs which are embedded into a brand and
lays the basic foundation or the guiding principles for the brand.
4. Relationship – It refers to the way in which brand interacts with its customers or what
sort of relationship exists between the brand which is usually determined by the kind of
services which it offers. Fairy has a helpful and serious relationship with its customers.
5. Self-image – Self-image refers to the association of a customer with any brand which
implies that a way customer perceives himself while using that brand.
6. Reflection – Reflection and self-image are two different elements because self-image
refers to the consumers own perception while reflection can be termed as how a brand
perceives or visualises its potential or target customers.
Description of the target market:
Target market for the brand extension can be identified with the help of application of STP
approach which refers to segmentation, targeting and positioning.
Segmentation, Targeting and Positioning (STP):
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STP is an effective approach to form and develop marketing strategies with the help of
identification of target market or customers (Perner, 2013). Here is an application of this model
to define target market for the brand extension:
Segmentation: It refers to the classification of the target market into different customer
segments on the basis of similar demands and trends in behaviours. Fairy Charcoal Toothpaste
will have different consumer segments based on the needs of tooth whitening and protection.
Targeting: Target market refers to the segment of customers which is most likely to buy
the product being offered by the brand. Fairy Charcoal Toothpaste has a target market of people
aged between 18-45 years irrespective of their gender and more specifically people who are
facing problems of tooth whitening and protection and fall in the age segment will be the target
market for the Fairy Charcoal Toothpaste.
Positioning: It refers to how the product is defined with comparison to other similar
products in the market and what is the unique selling proposition of the product. Fairy Charcoal
Toothpaste will be positioned as the all-in-one toothpaste which caters to the need and demand
of tooth whitening and protection and also looks after the common sensitivity issues among
youth and adults.
Analysis of the new market:
PESTLE Analysis for Fairy Charcoal Toothpaste:
Social factors: Among the key trends of consumption behaviour in the everday consumer
products, one of the major social trend has been of increasing concern about health issues and the
desire to look young and good. It has influenced the decision to enter the new market of charcoal
based toothpaste which is aniticipated to witness a high demand as people are becoming more
concern about tooth whitening and want to look good.
An explanation of the new product:
Tauber’s Brand Extension Options:
Out of the many options and direction which are available for brand extension identified by
Taubler, Fairy brand has chosen the horizontal brand extension with respect to franchise
extension in which a brand name is used to enter into a product category which is new for the
company (Tauber, 1993). Fairy Charcoal Toothpaste will be positioned as the all-in-one solution
of all the dental care needs and toothpaste requirements which are tooth whitening and protection
and taking care of sensitivity. Brand name Fairy Charcoal Toothpaste is chosen to simply
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communicate the message in terms of the charcoal content which is being used to increase the
tooth whitening power of the toothpaste. Product will be packaged in cardboard boxes and will
come in small as well as large packaging options for meeting every customer’s need and
requirements.
Competition:
The existing competition for Fairy Charcoal Toothpaste which has been identified in the
new market with respect to brand extension is being represented with the help of following table:
BRANDS PRODUCTS
Aquafresh Aquafresh Triple Protection
Colgate Total Pro, Max White One
Sensodyne Pronamel Daily Protection,
Daily Care,
Curaprox Black Charcoal Toothpaste
CONCLUSION
It can be concluded from the above report that brand extension strategy of Fairy Charcoal
Toothpaste has a huge potential because the product which is proposed to be offered by the brand
has a unique value proposition for the customers in terms of tooth whitening and tooth protection
and also has a potential customer segment. It can be concluded based on the above findings that
the brand extenstion strategy of Fairy Charcoal Toothpaste will be successful.
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REFERENCES
Books and Journals
De Chernatony, L., 2010. From brand vision to brand evaluation. Routledge.
Kapferer, J.N., 2009. Kapferer's Brand-Identity Prism Model. European Institute for Brand
Management, 24, p.2014.
Perner, L., 2013. Segmentation, Targeting, and Positioning. Cell, 213, pp.304-1726.
Tauber, E.M., 1993. Fit and leverage in brand extensions. Brand Equity and Advertising,
Hillsdale/NJ, pp.313-318.
Online
Summary Results. 2016. [Online] Available thru
<https://www.effectivedesign.org.uk/sites/default/files/DBA_PG_Fairy%20ADW_For
%20Publication_Jun17.pdf>
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