Principles of Marketing (MG412): Dove Brand Extension Report Analysis

This report provides a comprehensive analysis of Dove's brand extension strategy, focusing on the introduction of a new product, specifically Sun Lotion, within the existing market. The report begins with an introduction to brand extension and then delves into the Segmentation, Targeting, and Positioning (STP) analysis, identifying the target demographic as females aged 18-25. It proceeds to apply Ansoff's Matrix to determine the appropriate growth strategy, concluding that product development is the optimal approach. Furthermore, the report conducts a PESTLE analysis to evaluate the external factors impacting the brand extension, encompassing political, economic, social, technological, environmental, and legal considerations. The report concludes by summarizing the key findings and emphasizing the importance of market research and strategic planning for successful brand extensions, referencing relevant academic sources to support the analysis.

Brand Extension

Table of Contents
INTRODUCTION...........................................................................................................................1
Segmentation, targeting and positioning.....................................................................................1
Ansoff's Matrix ...........................................................................................................................1
Pestle analysis ............................................................................................................................2
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Brand extension is marketing approach in which company promoting goods with well
developed image utilise similar brand name in different good category. This report 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. In order to that, company needs to select age,
gender, income etc. Also, they select lifestyle segment in which includes nation, area and rural
locations and climate.
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. Through this, company identify the expectations
and commercial attractiveness in each of segment within the marketplace.
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:
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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.
Market Development:
In this strategy, company try growth through targeting their existing goods to new
markets. Also, this can aid increase the profits and sales within the marketplace. New market
development is very risky which impact on market share in the industry.
Diversification:
In this strategy, company develops by diversifying into new businesses through growing
new goods for new market. Also, this can aid increase the profits and sales within the
marketplace. This strategy in very risky more than market development which is also impact on
market share of company.
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.
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:
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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.
Environmental Factors:
Due to climate changes, it effects on operations of Dove in relation to introduce new
product in the existing market. This impact in market share and sales of company in existing
market.
Legal Factor:
Health and safety laws effects on operation of Dove in relation to introduce new product
in the existing market. This impact in market share and sales of company in existing market.
CONCLUSION
This presentation report has summarised that company select demographics and lifestyle
segment for targeting more consumers for new products in the marketplace. It can be concluded
that company select the product development strategy for increasing market share of business.
Also, it can be discussed that company determine the external factors for new product
development in the marketplace.
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REFERENCES
Books and Journals
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.\
del Barrio-García, S. and Prados-Peña, M.B., 2019. Do brand authenticity and brand credibility
facilitate brand equity? The case of heritage destination brand extension. Journal of
Destination Marketing & Management. 13. pp.10-23.
Shang, Q. and et.la., 2017. Logo effects on brand extension evaluations from the
electrophysiological perspective. Frontiers in neuroscience. 11. p.113.
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