Research proposal on dove edited

Research Proposal on

“Effectiveness of Brand Extension in Personal Care Product:

A Case Study on Dove of Unilever”

Table of Contents1. 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

3.4.1 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

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.

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

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

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.

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

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 self-

esteem, 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

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

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

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.

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

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.

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.

Respondents NumberFemale users of Dove brand 100Executives managing Dove Brand 3Total 103

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

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

Y = α + β1X1 + β2X2 +β3X3+β4X4+β5X5+e

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

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 ThesisSurvey Conduct

Data mining and FilteringIntroduction

Literature Review

Research Methodology

Data Analysis

Submitting First Draft

Submitting Second DraftProof Reading and Error CheckingFinal 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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