Dove Brand Extension: Strategic Analysis using Ansoff, STP, PESTLE

This report examines Dove's brand extension strategy, focusing on the launch of its hand wash products. It provides a background of the Dove brand, highlighting its market share and brand value. The analysis incorporates the Ansoff Matrix to explore growth strategies, the STP model for market segmentation and positioning, and PESTLE analysis to assess external factors impacting business performance. A competitive analysis identifies Dove's main competitors, and the report concludes that brand extension is crucial for organizational growth by increasing brand awareness and profitability. The document references various sources to support its findings. Desklib provides this and other solved assignments to aid students in their studies.

Band 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 is defined as the
marketing strategy that allow organisation to launch
new product under well-known brand name. In this
report chosen organisation is Dove that expends its
brand through launching hand wash in different
variants such as foaming Aleo hand wash, cleansing
hand wash for sensitive skin dry skin.

Background of brand
Dove is personal care brand owned by
British multinational consumer goods company
Unilever. Organisation is incorporated in 1957 and
provides skin and body care products such as body
wash, lotions, beauty bars, hair care, facial care
products and various others.
Market share: Dove is leading bar and liquid
soap brand of US that covers 24% market share of
body wash market.

Brand value of Dove
Existing brand value of Dove is approximately
5.1 billion US dollar in 2021. The valuation of brand
has featured in 37 brand ranking that indicates that it is
strongest and most valuable cosmetic brand of UK that
provides it products and services across the world.
Advertising campaigns launched by Dove: Dove
launches the advertising campaign such as Real Beauty
Campaign with the aim of developing self-confidence in
women as well as young children regarding the beauty
and looks.

Description of new product
 Description about product: Dove expands its
market share through launching new product in
market like hand wash in different variety
according to customers’ needs and demands.
Organization offers foaming Aleo hand wash,
cleansing hand wash for sensitive skin and
Rejuvenating care.

Ansoff matrix
Ansoff matrix is defined as the strategic planning tool that
provides a framework that helps organizational senior managers,
executive and marketers to develop strategies for future growth.
Some strategies of Ansoff matrix are mentioned below:
 Market penetration
 Market development
 Product development
 Diversification

STP model
STP model is related to dividing whole market into
small segments, target specific segment that consists growth
and development opportunity and create effective positioning
in the minds of customers through providing quality and
unique products.
 Segmentation
 Targeting
 Positioning

Pestle analysis
Pestle analysis is defined as the framework that is used
by organization to analyze external factors that impacts
business performance and functionality in direct and indirect
manner. Factors of pestle analysis are mentioned below:
 Political factor
 Economic factor
 Social factors
 Technological factors
 Legal factors
 Environmental factors

Competitive analysis
Competitive analysis is defined as the
assessment of strengths and weaknesses of
potential competitors that help business to develop
offensive and defensive strategies to identify
opportunities and threats. Dove faces competition
from various competitors such as Clinique, Olay,
Lancome and other brands.

Brand extension
 Brand name: Dove launched hand wash product under its
own well-known brand.
 Packaging, design and logo: Dove uses biodegradable
packaging to pack it hand wash products as well as use
attractive containers that influence customer to purchase it.
 Dove differentiates its brand from other competitors through
provide hand wash for different purpose such as dry hands
and sensitive skin.

Conclusion
As per the above report, it can be concluded
that brand extension plays important role in
organisational growth and development through
increasing brand awareness as well as profitability by
offering more than one product category to
customers. Organisations analyse competitors and
external environment that impact business
performance in positive and negative manner.