Brand Extension Analysis: Dove Sun Lotion - MG412 Marketing Report

This report examines Dove's brand extension strategy, focusing on the introduction of sun lotion. It begins with an introduction to brand extension and then delves into segmentation, targeting, and positioning (STP) for the new product. The report analyzes the target demographic (18-25 year old females) and their preferences for skin care products. It then explores Ansoff's Matrix to illustrate growth strategies, specifically market penetration and product development. A PESTLE analysis is conducted to assess political, economic, social, and technological factors impacting the brand extension. The report concludes by summarizing the key findings and referencing relevant sources.

Brand Extension

Table of content
 Introduction
 Segmentation, targeting and positioning
 Ansoff's Matrix
 Pestle analysis
 CONCLUSION

INTRODUCTION
 Brand extension is marketing approach in which company
promoting goods with well developed image utilise similar brand
name in different good category.
 This presentation is based on Dove.
 It will explain the segmentation, targeting and positioning, Ansoff's
Matrix and PESTLE analysis of business environment.

Segmentation, targeting and positioning
Segmentation:
Company can determine niche with specific wants, mature markets to discover consumers,
deliver more focus and effective marketing information through segmentation.
In the segmentation, various sections involves demographics, psychographics, geography,
lifestyle and so on. Dove introduce Sun lotion in the market.
Targeting
Company target the 18-25 age group, female for selling the Sun Lotion within the market.
Female are more conscious about their skin, so that it is beneficial for company in relation
to increase the sales of new good in the market.

CONTD.....
 Positioning
 It includes applying the targeting. Company make efforts to target the more and more
consumers for creating position within the market as compare to competitors.
 High positioning aid to increase the sales and brand image in the marketplace. Highly
targeted consumers aid to make positioning in the marketplace.

Ansoff's Matrix
 This matrix is presented growth strategy for company.
In this matrix, there are four combination which aid to
target expected consumers and goods. Four
combinations are
 Market Penetration:
 In this strategy, company sell existing goods in the
existing market for accomplish growth and increasing
the market share.
 Product Development:
 In this strategy, company seek to develop the new
product for targeting to its existing market segments.
For example: Dove introduce Sun Lotion in existing
market which can aid to increase the market share and
profits.

PESTLE ANALYSIS
 Dove is personal care brand operated by Unilever growing in the UK. Now, company
introduce the new good that is Sun Lotion within existing marketplace. Therefore, they
needs to determine all external factors which effects on operations of company.
 Political Factor:
 The political stability is highly effected on operation in relation to introduce new
product in the existing market by Dove. This impact in market share and sales of
company in existing market.
 Economic Factor:
 It includes inflation rate, interest rate etc. For example: If the inflation rate will
increase so that consumers does not purchase new product in the marketplace. This
impact in market share and sales of company in existing market.

CONTD....
Social Factor:
Changes in consumer taste and preferences will be effected on company operation in to
introduce new product in the existing market by Dove. This impact in market share and
sales of company in existing market.
Technological Factor:
Technological innovation, research and development actions will be highly effected on
operation of Dove in relation to introduce new product in the existing market by Dove.
This impact in market share and sales of company in existing market.

REFERENCES
 Ferguson, G., Lau, K. C. and Phau, I., 2016. Brand personality as a
direct cause of brand extension success: does self-monitoring
matter?. Journal of Consumer Marketing. 33(5). pp.343-353.
 ALAVI, S. and KHODADADE, S., 2017. INVESTIGATING
THE EFFECT OF BRAND IDENTIFICATION ON
SUCCESSFUL BRAND EXTENSION: ANALYZING THE
ROLE OF BRAND LOVE, BRAND COMMITMENT, AND
BRAND LOYALTY.\