Dove Toothpaste Brand Extension: Market Analysis and Strategies

This report examines Dove's brand extension into the toothpaste market, utilizing primary research to understand the impacts of the external environment. It covers Dove's existing brand value and target market, employing the STP model for segmentation, targeting, and positioning. A PESTLE analysis assesses political, economic, social, technological, legal, and environmental factors influencing the toothpaste launch. The report also applies Ansoff's Grid to explore market penetration, market development, product development, and diversification strategies. It further analyzes the competition from established brands like Colgate and Aquafresh, concluding that successful brand extension can expand demographics, increase sales, and enhance profitability.

Brand extension report

Executive summary:
Brand extension is defined as the launching new brand under the name of well-established
brand. In this report primary research method is used to collect reliable information. Main aim of
this report to understand the brand extension and impacts of external environment on it. In this
report Dove launches toothpaste under its brand name. This report covers pestle analysis, stp
model and Ansoff grid.

Contents
Executive summary:........................................................................................................................2
INTRODUCTION...........................................................................................................................4
Methodology....................................................................................................................................4
Findings...........................................................................................................................................4
Existing brand and brand value...................................................................................................4
Description of the Target Market................................................................................................5
Analysis of new market, including trends...................................................................................5
An explanation of the new product:.............................................................................................6
Competition.................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Brand extension is defined as the process in which organisation uses its established brand
name to launch new products or new product category. In this report chosen organisation is Dove
which is American personal care brand that is owned by British Multinational consumer goods
organisation Unilever. It is introduced in 1957 that expands its product line through lunching
toothpaste under its recognised brand. Organisation covers high market share that led it towards
success. This report covers exiting brand and brand value of Dove, target market and analysis of
new marker. Along with that explanation of new products and competitors’ analysis explained in
this project report.
Methodology
In this report primary research method is used to collect data and information. It provides
first-hand data that help to gain reliable information.
Findings
Existing brand and brand value
Brand: Brand is defined as the intangible marketing or business concept that helps
people to identify a specific organisation, product and individual. Brand differentiate an
organisation from other competitors and shape people’s perception of company and their
products. It provides value to company or individual and help to gain competitive advantages
over others companies in same industry.
Brand extension: Brand extension is defined as the strategy through which company
creates a new product category under its well-known brand. It enable business to launch new
product easily, reduce cost, attain higher profits as well as meet customer’s needs and demands
(de Reuck, and Bick, 2020).
Kapferer’s Brand Identity Prism:
Kapferer’s Brand Identity Prism is the model that enable business to develop strong and
enduring brand identities that reflect organisational core value. The prism includes six aspects of
brand identity that are mentioned below:
 Physique: It is related to the basic characteristics of products and services that are sell by
brand such as design, colours, basic functionalities and others.

 Personality: It reflects the character of brand. It is the property of brand in the eyes of
customers and it is developed through several marketing activities applied by brand.
 Culture: Culture is defined as the collection of values that develop the basis of a brand.
 Relationship: Dove develop strong relationship with customers to retain them with
organisation.
 Reflection: Dove reflects its personality and identity in target market. It is the collection
of stereotypical conviction of brand target demographics.
 Self-image: It is concerned with how customers of brand see themselves and how brand
related to that.
Description of the Target Market
STP: It is the model that is used by the business to segregate market and target potential
customers to attain high market share. Dove expends its product line through launching
toothpaste. STP of dove in the context of toothpaste are mentioned below:
Segmentation: Dove segments whole market into demographic, psychographic and
behavioural segment to provide its toothpaste (Jawahar, 2020). It divides customers on the bases
of their similar needs such as yellow teeth, sensitive teeth and cavity.
Targeting: Dove targets mass population especially middle-class customers.
Organisation bring toothpaste for different oral problems and target all age group people.
Positioning: Dove adopts usage and benefit-based positioning to maintain different
image in the minds of customers that enhance organisational sales and profitability ratio.
Analysis of new market, including trends
Pestle analysis: Pestle analysis is used by the organisation to analyse external environment
factors that impacts organisational performance and functionality in both positive and negative
manner. These factors is the context of toothpaste are mentioned below:
Political factor: Political stability and taxation policy and trade regulations are the factors
that influence overall business environment.
Economic factor: Economic growth rate, rising inflation rate and fluctuation in exchange
and interest rate impacts the functionality of dove in launching toothpaste in market (Saxena, and
Dhar, 2021).
Social factors: Consumption behaviour, disposable income, changing demand, social and
cultural norms impacts the operations of dove in positive and negative manner.

Technological factors: Technological advancement and innovation helps business to
boost productivity and sales positively.
Legal factors: Organisation follows employment law, customers protection law and other
to run business in right direction.
Environmental factors: Dove follows environment regulations and adopts reusable
energy and waste management process that helps it to sustain in environment (Keller and
Swaminathan, 2020).
Ansoff’s Grid:
It is the strategical tool that help business to take efficient decision to attain the objective
of growth and development. Strategies are mentioned below:
Market penetration: This strategy is related to
provide existing products in existing market
place. Business increase production and
marketing investment in this strategy.
Market development: In this strategy
organisation offers existing products in new
market place. Organisation conducts market
research to understand trends.
Product development: It is related to providing
new product and service in existing market
place. Dove adopt this strategy to launch new
product such as toothpaste in existing market.
Diversification: It is related to providing new
product in new market place. it is the riskiest
strategy to adopt.
An explanation of the new product:
Dove is the multinational organisation that provides personal care products expands business
through launching toothpaste. It produces it in various flavour and variety such as herbal
toothpaste, mint toothpaste and others flavour for different types of teeth problems.
Tauber’s Brand Extension Options: It is related to the brand extension that includes various
approaches such as launching same product in different form, produce product with different
taste, component and ingredient, companion products, using expertise, defining benefits, feature
of product and launch designer and ethnic image (Khelfaoui and Gingras, 2021)
. Dove launched the product that totally different from its product line such as toothpaste
that is different in taste and ingredient.

Product packaging: Dove uses biodegradable packaging for toothpaste that protect
environment and attract customers. It describes all ingredients that are used in production on
packaging and uses attractive colour and picture that attract customers.
Brand name and brand positioning: Dove is the multinational organisation that provides
variety of products to customers. Organisation has unique and differentiated positioning that help
business to influence loyal customers to purchase its new launched toothpaste because customers
trust on organisational products quality.
Competition
Competitors are defined as the organisations that provide similar products in similar market
place and impacts organisational performance and efficiency. Dove extend its product line
through launching so it faces completion form the well-established brands that provides
toothpaste (Piha, Papadas and Davvetas, 2021). Dove faces competition from Colgate and
Aquafresh organisation. To reduce the level of competition, dove analyse their pricing,
marketing, production strategies and policies that helps business to run operations efficiently and
gain higher market share.
CONCLUSION
As per above report, it can be concluded that successful brand extension helps 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 and adopt suitable policy that led business in right direction and attain higher
customer base.

REFERENCES
Books and Journals
de Reuck, S. and Bick, G., 2020. Kauai: Extending a fast-food brand into traditional retail as a
growth strategy. The Case Writing Centre, University of Cape Town, Graduate School
of Business.
Jawahar, D., 2020. PLACE BRAND MANAGEMENT IN DOWNTURNS: A THEORETICAL
FRAMEWORK. Revista de turism-studii si cercetari in turism, 29.
Keller, K.L. and Swaminathan, V., 2020. Strategic brand management: Building, measuring,
and managing brand equity. Harlow: Pearson.
Khelfaoui, M. and Gingras, Y., 2021. Expanding Nature: Product line and brand extensions of a
scientific journal. Learned Publishing.
Piha, L., Papadas, K. and Davvetas, V., 2021. Brand orientation: Conceptual extension, scale
development and validation. Journal of Business Research, 134, pp.203-222.
Saxena, N.K. and Dhar, U., 2021. Building Brand Image: A Multi-Perspective
Analysis. Ilkogretim Online, 20(5).