Marketing Report: Analyzing Tesco's Brand Extension into Toothbrushes

This report examines Tesco's brand extension strategy, focusing on the launch of a toothbrush product. It begins with an introduction to brand extension and Tesco's existing brand value. The report then delves into the target market, segmenting customers based on income, age, and benefits, and analyzes the new market using PESTLE analysis, considering political, economic, social, technological, environmental, and legal factors. The Ansoff matrix is applied to evaluate market penetration, product development, market development, and diversification strategies. The report also describes the new toothbrush product, its packaging, and competitive landscape, comparing it with products like Colgate. Finally, the report concludes that Tesco's established brand and global presence will facilitate the successful launch of the toothbrush. The report includes references to support the analysis.

CW2 Brand Extension Report

TABLE OF CONTENT
Introduction......................................................................................................................................1
Main body........................................................................................................................................1
Findings...........................................................................................................................................1
Existing brand and brand value...................................................................................................1
Target market...............................................................................................................................2
Analysing new market.................................................................................................................2
Methodology................................................................................................................................3
Description of new product.........................................................................................................4
Competition.................................................................................................................................4
Conclusion.......................................................................................................................................4
REFERENCES................................................................................................................................6

Introduction
Brand extension is the vital term and it happens when some established company use its
brand name to launch new product in the market. As already established brand will give kick to
its new product. Tesco is the multinational company and known for its vast variety of products.
This report will discuss new products which the company will launch, along with that its target
market. Further it will analyse pestle analysis and Ansoff grid. This report will also discuss new
product description and competition.
Main body
Findings
Existing brand and brand value
Brand:
It refers to the business concept, so that customers can identify that company and its
products and services. Brand is intangible in nature which means that it cannot be touch.
Brand extension:
It occurs when company uses its famous brand name over the new product category. Its other
name is brand stretching. Brans extension is used so that company can promote its new product
from the established brand name.
Kapferer’s Brand Identity Prism:
Physique:
It refers to the physical appeal of the brand (Ke and Wagner, 2020). The name of Tesco will be
mentioned on toothbrush packet.
Personality:
Tesco will communicate via social media platforms.
Culture:
The culture of tesco is they take views from employees in order to innovate.
Relationship:
Tesco have good relations with their customers as it provide good quality of products.
Reflection:
Company target audience irrespective of its age, gender, colour etc.
Self image:
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Tesco must have study market trend so that they can know that what their customer want and
manufacture accordingly.
Target market
STP
Segmentation:
Tesco will segment customers on the basis of income, age, benefits etc. company will consider
customers of the age group between 4-80 years (Mandal, Sarkar and Pandey 2017). Low income
to middle income customers will be seen and to attract customers, company will provide
discounts on toothbrush.
Targeting:
Tesco will going to target customers whose age is within 4-80 years of age. The reason behind
targeting this age group is as this age group people use toothbrush to clean their teeth. As
toothbrush is the basic thing and is used by every individual. Company have many range in
toothbrush low price toothbrush will be purchased by low income group and little costly will
purchase by medium income group.
Positioning:
Tesco is the big brand so they will use big actor to advertise their brand. They will also use social
media platforms in order to give advertisement of the new product.
Analysing new market
Pestle analysis
Political factors:
As Tesco is operating worldwide so they are exposed with various political risks. This factor
include tax rates, stability rate of country, legislation etc. tesco provide jobs in many countries.
Economic factors:
It means the economic development which will decide company’s profit. If tesco will work in
such country whose economy is good then it will help company in getting good profit margin.
Social factors:
This factor represent customer behaviour, lifestyle etc. as the society is evolving so that is why
now customer has shifted to one stop shopping from bulk shopping. To attract more customers
company has increased its product range.
Technological factors:
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Tesco adopt advanced technology so that can increases its market share (PESTLE Analysis for
Tesco discusses its Business Environment., 2016). Company has launched toothbrush by using
new technology so that customer can get good experience while brushing their teeth.
Environmental factors:
Tesco has also pressure to do business activities in such a manner so that environment cannot be
harmed. Company has started using renewable sources of energy and have implemented waste
management systems.
Legal factors:
This factor includes laws and guidelines by the government. As company is operating overseas
so have to follow legal guidelines of every company carefully.
Ansoff matrix:
It has four elements which are explained below:
Market penetration:
It is also required to penetrate in the existing market to find out new opportunities. That is why to
attract customers, Tesco give heavy discounts.
Product development:
It means launching new product in the existing market (Yang and et.al., 2021). As tesco is doing
launching toothbrush is the existing market.
Market development:
Launching existing product in new market so that company can increase market share.
Diversification:
Here products and market both are new. It is the risky strategy for the company as target market
and products both are unknown.
Methodology
The overall research for the Tesco was being done bye analysing the external market conditions
and due to which all the external market environmental conditions have to be identified.
Therefore in order to evaluate the external market factors PESTLE analysis is being used for its
effectiveness in terms of identifying and analysing the Macro environmental conditions which
impact the organisational working. External PESTLE factors comprises of elements like political
evaluation of the country e it is important because the organisation has to improvise its working
as per the changing governmental policies and due to which PESTLE analysis is Highly
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Effective. With that PESTLE analysis also empower company to evaluate the overall economic
conditions of the region as well by which appropriate pricing approach is being chosen through
which Tesco can ensure that it is being able to attract a wide range of customers while also
maintaining high profit margin through which company's sustainability within the Marketplace
can be insured. Implication of PESTLE analysis is also very fruitful because it allow company to
evaluate the overall social and technological needs which has to be fulfilled by the company.
This is often been implemented bye update in the approaches of product placement and
employees working process. Also with that Ansoff matrix is also being used to evaluate the
appropriate measure which the company has to choose to improve its performance within the
Marketplace. The Ansoff Matrix is also very effective for the company because with this
approach it can choose appropriate step in which expenditures are being reduced while providing
correct path to accomplish higher organisational sales while increasing customer base.
Description of new product
Company will launch toothbrush under the brand name of tesco.as company knows that
they have already good market share so launching new product can get good response and also
help company in increasing overall revenue (Childs, 2017). As the brand name Tesco is known
globally and also people trust this brand so they will trust its new product also. Packaging of the
toothbrush will be attracting as it will not look like normal toothbrush packet. Toothbrush will
come in double packing so that double layer can safeguard the actual product from inside. It will
come in various size and various colours.
Competition
Tesco toothbrush Colgate toothbrush
The price range of Tesco toothbrush is less then
Colgate.
Colgate have standard price for its every brush.
To target more customers company will provide
discounts and coupons
It has target market already so company will not
provide discounts every time.
Conclusion
Through this report it can be concluded that tesco will launch new product which is
toothbrush in the market. Company have wide portfolio so decided to even expand more. Brand
value of tesco is already good and have established brand so attracting customers will be easy for
the company. Company will target every age group of people because toothbrush is the basic
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thing and is utilised by everyone. Report has also analysed pestle analysis and Ansoff matrix. As
the company is famous and established worldwide to have to expose with various international
factors. Packaging of the product will be unique and attractive. Although tesco have high
competition in toothbrush like colgate but with unique features company can increase its market
share.
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REFERENCES
Book and Journal
Childs, M., 2017. Brand extension feedback effects: What do we know and where should we
go?. Journal of Product & Brand Management.
Yang, T. and et.al., 2021. Involvement of bilateral insula in brand extension evaluation: an fMRI
study. Scientific Reports. 11(1). pp.1-11.
Mandal, K., Sarkar, A. and Pandey, V., 2017. Marketing Research for Understanding Possible
Success in Brand Extension: A Case Study. ICRBS-2017, 2017.
Ke, X. and Wagner, C., 2020. Global pandemic compels sport to move to esports: understanding
from brand extension perspective. Managing Sport and Leisure. pp.1-6.
Online
PESTLE Analysis for Tesco discusses its Business Environment., 2016. [Online]. Available
through: <https://pestleanalysis.com/pestle-analysis-tesco/ >
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