MG412: Principles of Marketing - Dove Brand Extension Report Analysis

This report analyzes a brand extension strategy for Dove, focusing on introducing toothpaste under the existing brand. It begins with an introduction to the Dove brand, its existing market value, and the rationale for the new product. The report then delves into the existing brand value, emphasizing the importance of creating emotional connections and customer loyalty. Ansoff's Grid is used to outline the growth strategy, followed by an STP analysis (segmentation, targeting, and positioning) to identify the target market. A PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors influencing the brand extension. A comparative analysis assesses the competitive landscape, while the visual image of the brand extension, including packaging and branding, is discussed. The report concludes by summarizing the key findings and emphasizing the potential for successful product expansion through brand extension.

Principles of Marketing

Table of content
Introduction
Existing brand value
New product and growth strategy
Target market for the existing brand
PESTLE Analysis
Comparative analysis
Visual image of brand extension
Conclusion
References

Introduction
For this presentation Dove brand of Unilever company is taking into consideration. It is a personal care
brand which is owned by Unilever Originated in the United States. It was introduce in 1957 and its product
are sold in more than 150 countries for both man, women and children’s. Dove logo is a silhouette profile
of the brand’s namesake bird. Unilever will launch various products under this brand name such as
antiperspirants body washes, beauty bars, moisturizers, hair care, and facial care products and so on. In
context of selected brand, in the United States Dove is the leading brand in the liquid shop segment and
enjoying an 11.2% share in market. It will cover a wide global market area. It was analysis that Dove real
beauty campaign will increase the sales of product and dove bar will become the number one preferred
shop brand in the U.S. Company will now introduce a new product which is toothpaste under the brand
name of Dove.

Existing brand value
Brand value- it refers to the sales or replacement value of a brand. It will help an organisation in creating a
marketing and awareness plan that resonates with their audiences. The economic value of brand will be
calculated by determine the price differences between company offerings and generic offerings. It will also
analysis by multiplying the price difference by the number of unit sold. In context of selected brand they
will create an emotional connection with consumers, and enhance the loyalty of their customers. In
relevance of selected company, they will conduct a dove real beauty campaign. This campaign will assist
them in enhancing their brand value by increasing their customer’s loyalty. The brand value of dove is
approximately five billion U.S dollars. In context of selected company brand value will be achieved
through accuracy, attention to details, consistency, excellence, expertise and precision.

New product and growth strategy
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

Target market for the existing brand
For analysing the effective target market for the new product company will use STP analysis technique which help them in
clearly identifying the target market.
STP analysis- It refers to a marketing framework which help an organisation in clearly identifying the right customers or
market and the right product which satisfying their customers most. This strategy will include three important factors which
are segmentation, targeting and positioning. In context of selected new product, these factors are discussed below:
 Segmentation- In context of new product, company will segment the whole market on the bases of demographic,
geographical, and physiological factor.
 Targeting- In context of Dove toothpaste, their target market will include the customers of middle and high level
income. On the bases of demographic factor they will target the children’s, men and women for their product. Other than
this they will target the customers of wide geographical area such as they will target customers at international level.
 Positioning- In context of selected new product, their existing brand image will help the company in easily positioning
their new product in the market. They will also use various campaign which help them in creating a good brand image.

PESTLE Analysis
It refers to a framework which help an organisation in effectively analysing the various external factors which influence the growth of new product and
the idea of brand extension. It will include various factors which are discussed below:
 Political factor- The political condition of a country will influence the decision of brand extension. As because of instable political condition of a
country means the policies of government are rapidly change which influence the new product development decision.
 Economical factor- This factor is related to the economic condition of a country. It will include interest rate, inflation period, and disposal income of
customers. Any change in this factor will directly influence the buying habit of their customers which will influence the decision of brand extension.
 Social factor- This factor is related to the social & cultural values and beliefs. This will be the biggest reason of change in trends. The idea of brand
extension will also depends on this factor.
 Technological factor- This factor will define the rate of innovation and technological development which will influence the decision of an
organisation. If selected company wants to achieve higher growth they are require to adopt new technology.
 Legal factors- This factor will define the various legislation of government. These law and regulation of government will directly influence the
strategies and policies of company.
 Environmental factor- In last the most important external factor which influence the decision of brand extension is the environmental factor. Which
include various policies of government related to sustainability and protection of environment.

Comparative analysis
In context of selected new product, it will face a huge competition in the market. As
because there are various other companies who are sell the same product in a
reasonable price. The more competitors force on company will reduce the power of
selected company. For achieving the competitive advantage company will require to
adopt an effective strategy.
Competitiv
e factors
Power of
buyer
Power of
suppliers
Competitor
s
Threats of
new
entrants
Threats of
substitute
Forces Moderate Low High Moderate High

Visual image of brand extension
Brand name- Dove toothpaste
Packaging design and logo- For the new product, company will use a
little different packaging as they use a plastic bottle for toothpaste but
the Dove brand name is written on it and also the logo of namesake
bird.
Differentiation- Unilever will use sift the product form brand
extension strategy of Tauber’s brand extension options. This will help
them in effectively launching the new product under the same brand
name.

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.

References
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.

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