2. Table of Contents
1. Title: ............................................................................................................................................ 4
1.0 Background of the Study .......................................................................................................... 4
1.1 Background of the Organization ............................................................................................... 5
1.2 Rational of the Study ................................................................................................................ 5
1.3 Business Research Questions .................................................................................................... 6
1.4 Research objective .................................................................................................................... 6
2.0 Literature Review...................................................................................................................... 7
2.1 Brand ......................................................................................................................................... 7
2.2 Brand Extension and Types of Brand Extension ...................................................................... 7
2.3 The Reasons of Brand Extension .............................................................................................. 8
2.4 Brand Extension in Personal Care products.............................................................................. 8
2.5 Factors that Determines the success of Brand Extension strategy ............................................ 8
2.5.1 Branding Campaign ........................................................................................................... 9
2.5.2 Branding to Change Customer Attitude ............................................................................. 9
2.5.3 Media Planning .................................................................................................................. 9
2.5.4 Brand Development and Brand Management .................................................................. 10
2.5.5 Public Relation and Brand Extension .............................................................................. 10
3.0 Research Methodology ........................................................................................................... 10
3.1 Design of Research ................................................................................................................. 11
3.2 Philosophy of Research........................................................................................................... 11
3.2.1 Justification of Positivism Philosophy ............................................................................. 11
3.3 Research Approach ................................................................................................................. 11
3.3.1 Justification of Deduction Approach ............................................................................... 12
3.4 Methods of Research............................................................................................................... 12
3. 3.4.1 Quantitative Methods ........................................................................................................... 12
3.4.2 Qualitative Research ............................................................................................................ 12
3.5 Data Sources ........................................................................................................................... 13
3.6 Sampling, Design and Size ..................................................................................................... 13
3.5.2.1 Target Population ...................................................................................................... 13
3.5.2.2 Sampling ................................................................................................................... 13
3.5.2.3 Design of Sample .......................................................................................................... 14
3.5.2.4 Sample size ................................................................................................................... 14
3.6 Data Analysis Tools and Techniques ...................................................................................... 14
3.6.1 Usage of Statistical Tools for Analysis ................................................................................ 14
3.7 Ethical Consideration .............................................................................................................. 16
3.8 Possible Research Outcome .................................................................................................... 16
3.9 Limitation ................................................................................................................................ 16
4.0 Time Scale of Research .......................................................................................................... 17
5.0 Conclusion .............................................................................................................................. 17
References ..................................................................................................................................... 18
4. 1. Title:
“Effectiveness of Brand Extension in Personal Care Product: A Case Study on Dove of
Unilever.”
1.0 Background of the Study
Brand is perceived to be in important intangible asset for company which gives company a
cutting edge in product market through positioning in consumer mind. To leverage on success of
brand, companies go for brand extension which is offering different new product in the same
brand name. Such brand strategy is intended to be pursued to save cost of launching new brand,
to minimize risk of brand failure and to leverage on success of existing brand. Organization who
are in personal care product business often go for such brand extension treating brand as their
assists where they try to leverage on their brand equity by launching new products under already
established brand names (Vanitha et al, 2001). There are many factors that define the
effectiveness and success of brand extension in personal care products. Perceived Quality of
Parent Brand, the relative importance of fit of brand with consumer characteristics and mission
of brand are important variable which determine brand success (Park, et al, 1991). Beyond those
factors, in case of personal care brand extension, media planning, brand development and brand
management and public relation to communicate the brand are considered to be influential in
evaluating the success of brand extension. This research work is perused to evaluate the
effectiveness of brand extension strategy in personal care products in general and brand
extension strategy of Dove brand of Unilever. The report will elaborate whether brand extension
strategy of Dove was successful one considering the variable mentioned above. The report is
prepared based on customers’ responses collected through survey and observations of branding
expert to assess such effectiveness. The turnover from products launched under brand extension
strategy will be dependent variable that will be evaluated against Brand Campaign, Media
Planning, Brand Development and Brand Management, and Public Relation Strategy of brand.
The study will be based on Dove brand of Unilever which will outline how company changes
branding strategy with evolution of Dove brand.
5. 1.1 Background of the Organization
Unilever’s journey as business organization started at 1872 as margarine business. In 1890, the
company was named as Lever Brothers Limited. In 1930 Margarine Unie (Netherland) and Lever
Brothers Limited (UK) merged and renamed as Unilever Limited. Serving 2 billion customers
worldwide, the company is achieving annual turnover of €51 billion in 2012 (Unilever, 2013).
The company sells its products across 190 countries where emerging market now counts for 55%
of the business. The company have portfolio of 14 cash cow brand that are generating € 1 billion
sales worldwide. The company employs around 173,000 people around the globe (Unilever PLC.
2013a). The portfolio of categories shows that around 35% of revenue comes from Suvoury,
Dressing and spread, followed by Personal Care which is about 28%, Home Care which is 18%
and food and beverage segment covers 19%. Unilever has a portfolio of 400 brands among
which some are world largest in terms of generating ideas. With an asset base of €46.16 billion,
the company has operating profit of about €7 billion (Unilever PLC. 2013b). Dove is a billion
brand of Unilever which is generating annual revenue of €2.5 billion a year in 80 countries. Dove
Brand was launched in 1957 as alternative to soap to care of dry skin. Since 1980 many product
is launched under Dove brand ranging from body-wash, deodorants, body lotions, facial
cleansers, to shampoos and conditioners through brand extension (Unilever PLC, 2013).
Unilever terms Dove as a brand with a purpose.
1.2 Rational of the Study
Brand is perceived to be very important factor to position product in consumers’ mind. A brand
image has become a salient resource and critical success factors of competition which gives firm
competitive advantage in product market. To leverage on such competitive edge firms at times
takes strategy of brand extension to leverage the success of existing brand to optimize and
rationalized investment in brand. But such brand extension produced mixed result in terms of
effectiveness or return on brand extension due to brand fit with product launched, functionality
of brand and consumer attitude to accept new product (Kim and Deborah, 2008). To change
consumer perception on the ground of functional benefit of brand, organization has to reshuffle
its branding communication to reposition brand in consumer mind which communicate a broader
view of brand rather than functional benefits. The effectiveness of such brand extension depends
on how firm develop brand, build brand and plan media to communicate the brand and maintain
6. public relation to engage stakeholders (Bottomley and Stephen, 2001). Innovation of Branding
campaign is another important parameter in this regard. The study will evaluate the brand
extension strategy of Dove through examining through different factors mentioned just above to
justify brand extension strategy in Personal care product category.
1.3 Business Research Questions
The following research question will be designed to conduct the study.
what is the brand extension strategy of FMCG company in personal care products
What are the factors that affect brand extension strategy of an established brand in case of
personal care products
How brand campaign, media planning, customer attitude, brand development and
management, public relation reshuffle brand extension strategy in case of Dove brand of
Unilever
What is the statistical observations of effect of components of brand extension in
positioning product in consumer brand
1.4 Research objective
Every research is conducted with fulfillment of some objectives in mind. Those objectives
persuade the researcher to pursue research in this field of study to enrich the researcher
intellectual observation. The following are the research objective of the study which motivates
the researcher to pursue this research.
To review brand extension strategy in personal care product
To trace out the reasons that plays key role in developing brand extensions strategy in
personal care products
To explore the critically success factors that determines the effectiveness of brand
extension strategy in personal care products
To extract out how brand campaign, media planning, customer attitude, brand
development and management, public relation played role in affecting success of brand
extension of Dove brand of Unilever
7. To evaluate the outcome of the study through statistical test to validate the findings of the
study on rand extension strategy of Dove
To suggest appropriate and specific recommendations and to provide conclusion along
with mentioning the scope of future scope of study.
2.0 Literature Review
Literature review is very important part of any credible research and it provides the research an
opportunity to review similar and related previous research to take knowledgeable insight to
design his or her study. The second chapter of the research will cover the literature review
related to title of the research. The following sections will be covered by this chapter.
2.1 Brand
Brand can be defined as name, tern, sign, symbol or design, or a combination of them intended to
identify the goods and services of one seller or group of sellers and to differentiate them from
those of other sellers (AMA, 2011).
2.2 Brand Extension and Types of Brand Extension
Brand extension is strategy of launching and selling new product under an established brand
name of other existing products to persuade customer’s perception with success of existing
products (Monga and Deborah, 2007). Extension can be described as strategy to sell new
products without establishing a new brand of the company (Chen and Liu, 2004).
There are two types of brand extension mostly used in branding strategy. The following graph is
elucidating such types of brand extension.
8. Figure: Types of Brand Extension
Source: (Kim and Lavack, 2001)
2.3 The Reasons of Brand Extension
There are logics why organization goes with brand extension instead of launching new brand for
every new product. The most influential arguments are reducing risk and cost of launching new
products, increasing sales and profit of the company and being able to ask a premium price
(Alokparna and Zeynep, 2012). The other reason includes increase brand awareness and
perceived brand value of the company (Smith and Park, 1992).
2.4 Brand Extension in Personal Care products
Brand extension in personal care product is more prevalent than other types of product due to
homogeneity in product nature and communication of common perception to the consumers.
From Unilever to P&G everyone does follow brand extension strategy more or less in their
personal product portfolio (Xie, 2008).
2.5 Factors that Determines the success of Brand Extension strategy
Various factors brand extension strategy of personal care products. The given case outlined the
following factors that were considered influential in affecting brand extension strategy to Dove
from soap to other personal care products
9. 2.5.1 Branding Campaign
Branding campaign is very important parameter to change customer perception from a narrower
point of view to broader point of view. Earlier Dove is considered a cleansing cream or
moisturizing cream (Tom et al, 2012). Whenever Unilever intended to communicate Dove as
Masterbrand, it reshuffles its campaigning strategy to communicate Dove brand campaign as
“Campaign for Real Beauty” (Deighton, 2008). The case produced the following discussion.
2.5.2 Branding to Change Customer Attitude
Successful brand extension strategy change customer attitude to the favor of new product
launched under established product category. In Dove case, the branding campaign redefines the
notion of beauty to the women of the world by saying that every woman possesses real beauty,
which is merely not defined by size, skin or age. The brand defines beauty as function of selfesteem, feeling superiority about oneself. Such bold step to change women attitude toward
beauty invites discussion and debate, which ultimately gave the familiarity of new product under
Dove brand (Deighton, 2008a). The following comments are from Marketing Director of Dove.
2.5.3 Media Planning
Media planning is very important to communicate brand extension to new launched products.
The effectiveness of media planning largely defines how effectively and efficiently message can
be communicated to the target customers (Jack and Roger, 2002). Uniqueness and cost
consideration are most influential ingredients in media planning where company favors to choose
unusual media to attract easily customers’ attention and least cost media to save marketing cost
10. of the organization (Clarke, 1997). Dove posted a filming featuring dove in YouTube for which
Unilever did not spend a penny literally.
2.5.4 Brand Development and Brand Management
Brand development is successful predictor of brand future. If an innovative and compelling
brand is developed, it is mostly assured that brand will emerge as successful. Whenever a brand
is successfully positioned in one product category, it is very easy to extend it to new product
(Kumar, 2005). Successful brand development requires innovative brand development team,
alignment of branding communication with characteristic of products so that they best fits each
other (Monga and Deborah, 2007). In case of Dove Brand, extension brand development was
separated from brand management in specific market.
2.5.5 Public Relation and Brand Extension
Public relation or PR is emerging as very effective tool in communicating messages of new
brand or brand extension to customers. The recent observation is that impact of advertisement is
falling and that of PR is rising. PR is more effective when it comes to matter of communicating
credibility of brand, saving of cost and clutter (Völckner and Henrik, 2006). Moreover, Brand
friendliness with PR can formulate a compelling communication strategy of brand extension with
low cost (Tom et al, 2012a). Public relation of Dove was compelling covering both positive and
criticism comments from leading press and marketing commentators which gave the firm great
publicity (Deighton, 2008). New York Times mentioned about PR success of Dove as below
3.0 Research Methodology
Research methodology will be third chapter of the research, which is mainly a roadmap of the
research to the outcome, which will be employed with different type of methodology to extract
11. out the insight from the incumbent research (Hunter and Leahey, 2008). The research
methodology section will employ the following techniques.
3.1 Design of Research
The most important element in research methodology is research design which will be
cornerstone for further research steps to extract out relevant information from collected data. The
research design consist of planning of research, dissecting and collecting raw data and
observations from the key stakeholders to build a harmonious research that will fulfill social
objectives (Brymanand and Bell, 2003). The research design is launched with research
philosophy.
3.2 Philosophy of Research
The research philosophy is very important ingredient of research design where philosophy
concentrates on reasoning of rationality and scientific approaches, law of generalization to
develop and establish knowledge. This research is based on positivism philosophy where
transparency of research will be ensured through usage of true sense to make reproduction of
information (Hussey and Hussey, 2007). This philosophy of research mainly employs scientific
tools and techniques to reason knowledge of imagination extracted from observed behavior
(Saunders et al, 2009). The research philosophy that stands against this research philosophy is
anti-positivism philosophy which prefers people judgment on research issues. Positivism
philosophy uses statistical tools which is not used by anti-positivism philosophy (Remeniyi et al,
2008).
3.2.1 Justification of Positivism Philosophy
The justification for selecting positivism philosophy is that in this philosophy research is carried
out on through objective manner to explore the cause effect relationship between exogenous and
indigenous variables (Irving, 2006).
3.3 Research Approach
There are mainly two broad type of research is used by the researcher for conducting research.
These approaches are induction and deduction approach. This research will be based on
12. deduction approach, which is a top down research approach concentrating to relate research
outcome with reasoning rather than a subjective general statement. This approach is very much
relevant to bring a concrete conclusion. Deductive approach depends on earlier conceptual and
theoretical structure, which is supported by quantitative data (Steinar, 2007).
3.3.1 Justification of Deduction Approach
The strongest argument of using deduction approach is that this approach is based on scientific
principles, which leads to highly structured and organized ground for the development of
research hypothesis. This approach is also relevant for collection of research data to elucidate the
relation and dependency among the variables to prove the hypothesis (Kumar, 2008).
3.4 Methods of Research
Quantitative and qualitative two research methods will be used in this research through
application of different qualitative and quantitative research technique.
3.4.1 Quantitative Methods
This method will be used for collecting primary data collection. Different statistical parameters
will be used under this method. The graphical presentation will be employed as instrument of
quantitative method along with charts to display information more visibly (Churchill and
Iacobucci, 2005).
3.4.2 Qualitative Research
In case of subjective measurement qualitative technique will be employed. Brand extension and
product categories have many dimensions that are qualitative in nature which need subjective
evaluation. This method will be used mostly in case of data which are nonnumeric in nature and
more concerned with behavioral aspect of the respondents.
This research has applied a mixed approach of research by incorporating qualitative and
quantitative variable. Quantitative one has been applied to find the Effectiveness of Brand
extension in case of Personal care products. On the other hand, to measure impact of public
relation, media planning and brand management qualitative approach will be used.
13. 3.5 Data Sources
Data will be collected from mainly two types of sources, primary sources and secondary sources.
For primary data, population will be female customers of Unilever in London. Beyond
customers, brand manager of Dove at Unilever UK will be asked for an interview, which is also
another source of primary data. Total 100 customers will be surveyed and three managers will be
interviewed. The primary data will be concerned with collection of data through a questionnaire
that will ask about demographic profile of customers and research topic related questions where
respondent will be asked on predetermined questions (Agresti
and Finlay, 2009). The
questionnaire will provide some statements and give respondent to put score based on their
opinion. The secondary source of data will be relevant articles, books, website and annual report
of Unilever. Appropriate referencing will be provided to authenticate the sources of secondary
data.
3.6 Sampling, Design and Size
3.5.2.1 Target Population
The target population of the research is all the potential respondents relevant to research study
within some specific parameters (Churchill and Iacobucci, 2005). For the purpose of this study,
the population included female users of Dove brand of Unilever UK in London. The demography
of the respondent is developed in such a way that customers from different age, ethnicity and
income level is selected.
3.5.2.2 Sampling
Sampling is a technique to filter respondent from population to conduct the study as deal with
whole population is literally impossible. the influential sampling method is probability sampling
where equal chance of each candidate from population might be selected. There are other
sampling technique that could be employed in this research study which are random sampling,
systematic sampling, stratified random sampling etc (Foss, 2007). Having considered time and
resource constraint, convenience sampling technique is best suited with this study
14. 3.5.2.3 Design of Sample
Design of sample refers to the process of selection of sample units. A self-administered survey
will be conducted among the targeted sample and the in person with female users of Dove brand
in London.
3.5.2.4 Sample size
A sample size of 100 is expected to be collected for this study. Beyond them 3 managers will be
asked for interview. Enough time will be given to each participant to reduce the error. The
questionnaire is designed in simple English to reduce risk of ambiguity.
Respondents
Female users of Dove brand
Executives managing Dove Brand
Total
Number
100
3
103
3.6 Data Analysis Tools and Techniques
Graph, table and different diagram will be used to display data that will be collected through
questionnaire. These will be done in primary data analysis. The core part of the questionnaire
will be based on 5-point Likeart Scale. The questionnaire provided to female users of Dove will
consist of close-ended questions and interview questionnaire provided to the managers of
Unilever will be open-ended questions. To assess the responses C-alpha test will be employed.
The following techniques will also be used in this study.
3.6.1 Usage of Statistical Tools for Analysis
To examine, filter and transform the collected data with research objective statistical tools will
be used for reaching conclusion and approving decision making (Panneerselvam, 2004). Data
will be analyzed through application of most up to date statistical tools used in business research.
Two distinct questionnaires were used in this research to analyze effectiveness of brand
extension strategy of Dove brand. The following statistical tools have been used in this research.
15. Graphical Technique: the graph will be produced in spreadsheet software of Microsoft
Office Excel. In addition to generation of graphs, excel will be used in most quantitative
analysis of the study.
Pearson Correlation Matrix: Correlation matrix is in fact a technique to develop
relation between dependent and independent variables. It mainly observed how variables
are dependent of each other.
Scaling Technique: Scaling technique will be used in this study in case of subjective
evaluation of respondents. In this procedure, weight is assigned according to rank
(Cooper and Schindler, 2008). Result will be presented as percentage through rank
percentage analysis.
Regression Analysis: Regression analysis is used in research arena mainly to calculate
the dependency of dependent variable with independent variables. It incorporates
different statistical test such as P value, t-test to assess the influence of the relation in
terms of statistical consideration. The regression equation of this study will be as below
Y = α + β1X1 + β2X2 +β3X3+β4X4+β5X5+e
Where,
Y= Dependent variable (Dove Brand Turnover)
α = Constant
β1= Coefficients of brand campaign
X1= Brand campaign
β2= Coefficients of customer perception toward brand
X2= Customer perception toward brand
Β3= Coefficients of Brand Development and Management
X3= Brand Development and Management
Β4= Coefficient of Media Planning
16. X4= Media Planning
Β5= Coefficient of Public Relation
X5= Public Relation
e= Error term
3.7 Ethical Consideration
To complete research with appropriate research guidelines research ethics is very important.
Considering ethical aspect of research enough time is given to the respondent of the study so that
they can depict their true view on research questions. Primary and secondary data will be used in
this study. Consent from the respondents will be taken and appropriate permission will also be
ensured for usage of their given data. Confidentiality of the responses will be maintained strictly
to ensure privacy of their data. The disclosure of respondent identity will be based on their
permission where if they are not willing to disclose identity, their identity will not be exhibited.
Beyond that fact, usage of any secondary data from any source will be acknowledged with
appropriate reference. Hence, the ethical aspect of research will be followed very strictly in this
research.
3.8 Possible Research Outcome
The research is pursued to find out whether brand extension strategy of personal care product is
effective through analyzing the case of Dove brand of Unilever. The incumbent researcher is
very must interested to explore the association of brand extension through different factors in
making success of newly launched products. The research will produce how brand campaign,
customer perception towards brand, brand development and management, and brand, media
planning and public relation associates in making brand extension effective in case of Dove
brand of Unilever.
3.9 Limitation
The main limitation of the research is the period allocated for conducting the study. Another
important limitation is the inability to remove the biasness of the responses due to subjective
17. nature of the data. Another limitation is the dimension factors related in brand extension in
addition to mentioned factors, which might produce incomplete conclusion.
4.0 Time Scale of Research
The dissertation will be produced by maintaining the following time scale
Task to be Executed
Week 1
Week 2-4
Week 5-8
Week 9-11
Week 12
Questionnaire
Development
and
Outline of the Thesis
Survey Conduct
Data
mining
Filtering
Introduction
and
Literature Review
Research Methodology
Data Analysis
Submitting First Draft
Submitting
Second
Draft
Proof Reading and
Error Checking
Final Submission
5.0 Conclusion
It is observed that brand extension strategy in personal care products is more prevalent and
effective than any other products. This research study is intended to explore the effectiveness of
brand extension strategy of Dove brand of Unilever. The researcher believes that the study will
produce valuable insight in such evaluation that will be useful for both the executives and
academicians. It will also create opportunity for further research in this field of the study.
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