Dove Brand Extension: Analyzing Market Share, STP Model, and PESTLE

This report provides a comprehensive analysis of Dove's brand extension strategy, focusing on its entry into the toothpaste market. It covers key aspects such as the brand's background, market share, and value, followed by an application of the Ansoff Matrix to illustrate growth strategies. The report further examines the target market through the STP model (Segmentation, Targeting, and Positioning) and assesses external factors using PESTLE analysis. A competitive analysis identifies key competitors like Colgate and Aquafresh, and the report concludes by highlighting the potential benefits of successful brand extension, including reaching new demographics and enhancing profitability. The analysis emphasizes the importance of considering both internal and external factors before launching new products.

Brand extension

Table of content
 Introduction
 Background of brand
 Brand value
 Ansoff matrix
 STP model
 Pestle analysis
 Competitive analysis
 Value image of brand extension
 Conclusion
 References

Introduction
Brand extension considered as the process of using brand
name to launch new product. Dove is American personal
care brand introduced in 1957. It expands its product line by
lunching toothpaste under its recognised brand. This
presentation covers target market, STP, pestle analysis and
competitors analysis.

Background of brand
 Market share: Dove is the multinational brand that
covers high market share of UK. It consist 24% market
share.
 Market size: Dove is the top cleansing brand of world
with the sale over 2.5 billion US dollar per year in
more than 80 country.

Ansoff matrix
Market penetration: Market penetration is
related to offer existing products in
existing market place. Business increase
production and marketing investment in
this strategy.
Market development: Market development
strategy of organisation isrelated to offer
existing products in new market place.
Organisation conducts market research to
understand trends.
Product development: Product
development is related to provide new
product and service in existing market
place. Dove adopts product development
strategy to launch new product such as
toothpaste in existing market.
Diversification: Diversification is related
to providing new product in new market
place. It contains high risk so business take
decisions after proper research of market
and customer’s demand.

STP model
 Segmentation: Dove segments market in demographic,
psychographic and behavioural segment on the bases of
customer’s similar needs and demands.
 Targeting: Dove targets mass population especially
middle-class customers of all age group.
 Positioning: Dove adopts usage and benefit-based
positioning to create strong image in the minds of customers.

Pestle analysis
Pestle analysis helps business to identify external factors
that affect business performance in positive and negative
manner.
 Political factor: Political stability and taxation policy as
well as trade regulations impact dover performance.
 Economic factor: Economic growth rate,
fluctuation in exchange and interest rate and rising
inflation rate affect business operations to launch
toothpaste in market.

Competitive analysis
It is very important for business to analyse the activities and actions
before launching product in market. Dove faces competition from
Colgate and Aquafresh organisation that are popular brand deals in
toothpaste.

Brand extension
 Brand name: Dove launched toothpaste product under its
own brand.
 Packaging, design and logo: Dove uses biodegradable
packaging in continent design that attract number of
customers.
 The idea of brand extension is distinct from other
competitive products because it available in various
flavors for different type of oral problems.

Conclusion
As per above report, it can be concluded that successful brand extension enables
business to reach new demographics, increase sales, enhance customer base and
boost organisational profitability margin. Organisation considers internal and external
factors before launching new product in market.

References
 Shen, L., Li, C. and Wei, X., 2020. Creating Brand Value for Knowledge Sharing
Social Network Sites. World Scientific Research Journal, 6(10), pp.128-142.
 Soylemez, K.C., 2021. Impact of individual and brand level factors in generation
of different user-generated content. Journal of Consumer Marketing.
 Phau, I., Matthiesen, I.M. and Shimul, A.S., 2020. Is HUGO still the BOSS?
Investigating the reciprocal effects of brand extensions on brand personality of
luxury brands. Australasian Marketing Journal, pp.j-ausmj.

Thank-you