Loreal Brand Extension Report: Marketing and Strategy Analysis

This report analyzes Loreal's brand extension strategy, focusing on the introduction of a new body wash product. It begins with an overview of the Ansoff growth strategy, specifically new product development. The report then examines primary data analysis, including the importance of brand values and target market identification. A PESTEL analysis is conducted to evaluate the political and economic factors impacting the brand. Furthermore, a comparative analysis is presented, contrasting the new product with competitors like Nivea. The report highlights the benefits of the brand extension, emphasizing how the established brand name and product quality can increase sales and profit margins. The report concludes with a visual image and a summary of the findings.

Brand
extension

Table of Contents
• Introduction
• Ansoff growth strategy
• Primary data analysis
• PESTEL analysis
• Comparative analysis with other competitor brand
• Visual image
• Brand extension

Introduction
Brand extension is part of marketing growth strategy
which helps in introducing new product in the target
market. It is formation of new brand under existing
parent brand. This leads to marketing of new brand with
gained recognition from parent brand.

Ansoff Growth strategy
Loreal is adopting new product development strategy in
which it is serving existing customers. This helps in
growing market share with new product in its portfolio.
The product has emerging high demand which helps in
tapping opportunity for unfulfilled needs.
• New Product
• Competition

Primary data analysis
 Existing brand and Brand Values- A brand is an
ascertaining name, symbol, logo or design which
differentiates company from its competitors. Brand
extension is a marketing strategy which launches
new product category under the existing brand.
 Target Market- Target audience for the new brand
extension is women concern for their health of skin
in bathing. It can be done with STP marketing
planning model which helps in approaching and
positioning in target market.

PESTEL analysis
Political factor- Company faces political challenge
with obligating different government leadership
styles in various operating countries. It has to abide
changes in legislation and policies for chemicals used
in dermatology products. Also, it faces restrictions by
complying with advertising standards in different
countries.
Economic factor- Due to presence of economic crisis
in different countries company has to face challenges
with reducing dollar value in operating countries.

Comparative analysis
Loreal Body wash Nivea shower gel
Features It has unique features for both men and
women. It includes smoothning substances
which helps in vibrant and healthy skin.
Body wash is more healthy for skin than
shower gel and soap.
Nivea shower gels are good in
cleaning substances which is
better option than a soap.
Packaging It isw packaged in attractive bottles with
conveninet usage while bathing. These
bottles are available in recycling plastic
bottkes.
It is pacaged in plastic bottles
with oval shape. These are
easy to carry and store.
Benefits The body wash provides healthy skin with
removing dead cells and pimple agents. It
comes with different variety which helps
in fulfilling different needs
It provides soft skin with
protection from skin drying. It
also provides variety which
helps in restoring moisture in
skin.

Visual image

Brand extension
In context of Loreal new product (Body wash) it has
ability to provide benefit to the company as the brand
has already established its brand name in the
marketplace. Hence with the help of its new product
they would be able to increase its sales volume. In
terms of quality they are able to satisfy the needs and
desires of its potential customers so will able to
increase it sales and profit margin and provide tough
competition to its competitors.

Thank you