MG412 Principles of Marketing: Dove Brand Extension Strategy Report

This report explores Dove's brand extension strategy, focusing on its potential new product launch of toothpaste. It uses the Ansoff Matrix to evaluate market penetration, product development, market development, and diversification strategies. The report also includes a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors impacting Dove's business. A comparative analysis highlights Dove's main competitors, such as Nivea and Colgate. The report concludes by summarizing the key strategies and market considerations for Dove's brand extension, emphasizing the importance of understanding market trends and competition. Desklib provides access to similar solved assignments and past papers for students.

Brand Extension Report
DOVE

INTRODUCTION
 Every business organisation develop new product which help them to get success in the
market, this product development process need brand extensions which allow company
to develop new product.
 This report will discuss background of company and use Ansoff matrix to understand
strategy required. Later this report will discuss PESTLE analysis to understand current
trend. At last this report will discuss comparative analysis of the company.

Background of chosen brand:
 Dove is one of the most successful brand which have wide range of
beauty products allow company to become market leader.
 Dove have being ruling consumer goods industry, the most famous
product of Dove is 'Dove Shampoo'.

Ansoff matrix
 Market penetration: market penetration allow company to focus on exiting market with
existing product, this step allows Dove to increase sales of existing product in the
market where they already been dealing.
 Product development: product development means company try to develop innovative
product and introduce them in existing market. Dove's will introduce toothpaste as new
product in existing market which will increase the sales of the company.

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 Market development: market development means company try to enter new market
with exiting product line, Dove can enter new market with existing product line.
 Diversification: diversification means business try to enter new marker with new
product line, Dove can enter new market with their new product which is toothpaste.

Target market:
 The dove company target their customer in retail and personal goods industry, wide
range of product allow company to target multiple group but mainly this company
target women.
 From the research, it is very clear that women are more active buyer of Dove as
compared to men, many product of Dove are only target women because it have only
been manufactured for them.
 Toothpaste as new product of Dove need to target according to demographics, this
product target both men and women.

PESTLE analysis
 Political factor: this factor means government and its policy which impact the business
organization, Dove's performance was impact with the policy of UK government
regarding the retail industry.
 Economical factor: this factor means the stability of economy, this impact the
positioning and working of the brand. Dove's new product was impacted after the
instability of UK economy because of COVID-19 pandemic. High inflation rate have
increased the cost of raw material in the market which will impact the new product.
 Social factor: social factor means customer their behaviour in the buying of the
product, Dove can get effected with changing market trend in social environment for
example customer now demanding hygienic product from Dove which will impact the
sales of new product.

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 Technological factor: technological factor highlight the technology available with the
company and its impact on the operation and production unit. Dove have latest and
fastest technology available at every part of their business level which will help them to
introduce new product in the market.
 Legal factor: this means rules and regulation of government, the Dove and its new
product such as toothpaste have complete certain legal requirements. For example legal
requirements of safety of product.
 Environmental factor: this factor means business need to understand the value of
nature, this factor help company to understand the impact of nature of business. Dove
can adopt substantiality in their toothpaste product.

Comparative analysis
 The Dove face competition in every product line they have, this company have to face
various large retail and consumer goods company.
 The biggest competitor of Dove is Nivea which deals in personal care and beauty
product.
 The new product of the company have to face competition from Colgate this company
is one of the most successful in making toothpaste.

CONCLUSION
 This report have discussed how company develop new product and use Ansoff matrix
to develop expansion strategy.
 Later this report have discussed PESTLE analysis to examine current trend in the
industry.
 At last comparative analysis is been discussed to understand competition in the market
faced by the business organization.

REFERENCES
 Books and journals
 Froehlich, K., 2016. Dove: Changing the face of beauty?. In Fresh Ink: Essays From
Boston College's First-Year Writing Seminar (Vol. 12, No. 2).
 Loredana, E.M., 2017. The use of Ansoff matrix in the field of business. Annals-
Economy Series, 2, pp.141-149.
 Çitilci, T. and Akbalık, M., 2020. The Importance of PESTEL Analysis for
Environmental Scanning Process. In Handbook of Research on Decision-Making
Techniques in Financial Marketing (pp. 336-357). IGI Global.