Groupreport Product development project Dove PDF

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Groupreport Product development project Dove...

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Product development project Dove

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EXECUTIVE SUMMARY 1. Company Description - overall company’s product lines and activities - sales in the last 3 years, a trend to be made with chart - number of stores, and current products positioning, - what countries it operates in. Situation Analysis - Illustrate the organization’s internal and external factors. Industry Analysis - It illustrates total industry sale volume in last 3 years, number of competitors, and market share of competitors S.W.O.T. Analysis - Demonstrates the strengths, weaknesses, opportunities and threats of the company. Market segmentation - describes how the customers are divided into sections. Target Market Strategy - describes about targeted customers and positive impact of this strategy on the company. Product Positioning - describes how the company is placed in the customers’ mind. Marketing Mix

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- describes how product, place, promotion and price are important for a new product. Product development project Dove I. Company Description Dove is a brand which offers a wide range of personal care products, for instance, washing and bathing, skin care, hair care and antiperspirant deodorants. It is owned by Unilever, a global company, whose purpose is ‘to make sustainable living commonplace.’ Its origins are rooted back in 1957, when Dove started as soap bar brand known for its quality of moisturizing. Regardless of its higher price, Dove succeeded to gain a powerful reputation till 1990’s with profit of $200 million and it kept on increasing. Then, Dove brand wanted to extend their business by introducing wider range in their products rather than sticking to only one product. Subsequently, they started by introducing washing and bath care products ‘with the innovative Dove Nutrium technology that deposited lipids, Vitamin E and other ingredients onto the skin’ to the products like deodorants. Additionally, Dove also launched Men+care products which were followed by Baby care products in the market. Consequently, they spread their business geographically also by selling their products in 150 countries and setting up their branches worldwide. The reason behind the success of Dove Brand products is that unlike other companies who hire Models or actresses, Dove brand choose to have real authentic women regardless of colour, age, slim or fat without any makeup because the goal was to ‘change the way that women are perceived and to improve their self-esteem.’ Moreover, they started a campaign for real beauty in 2004 to help women dealing with the issue of appearance and self-development of women and their daughters as in a recent research, it was found that 9 out of 10 females are less confident about the way they look. Therefore, this campaign was a great success and ‘provided energy and visibility that enhanced all the Dove products.’ One can visit Dove’s official site where

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they have access to beauty tips and regime along with many articles to boost the confidence of younger generation to accept them as they are and to be beautiful in their own way. II. Business Mission: The mission of Dove brand is apparent on the its official site when one clicks on Dove Self-Esteem Project which clearly states that,’ When it comes to body image and girls’ self-esteem and body confidence, our mission is to ensure that young people grow up enjoying a positive relationship with the way they look.’ III. Marketing Objective: The marketing objective of Dove brand is not only to sell its products and earn profit against it competitors but also to build a relation with the consumers by educating them to how to improve self-esteem of the young generation and to make them aware of their potential. This will become a great asset for the brand to gain advantage among competitors in market.

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In the above given graph, a visible trend can be observed in the last three years 2018-2020 as the value of dove brand declined from $4847 to $4486 million U.S.dollars. However, in the year of 2020, it brand value increased by approximately $5000 million U.S.dollars worldwide. Part-2 SITUATION ANALYSIS Situation Analysis is defined as set of methods which marketing manager will use to analyze the external and internal factors of the company’s environment to have the clear understanding of the capabilities of business, potential customers, customers and business environment, and its impact on the company. The analysis can provide an appreciation of the risks and benefits to the project and the organizations involved from the way in which the communication process is implemented. Further, to examine the situation of the Dove Company, marketing department will use S.W.O.T. analysis method by means of which company will examine all the aspects related to success or results of the project Dove Serum in question. 1. INDUSTRY ANALYSIS A. TOTAL INDUSTRY SALES VOLUME IN LAST THREE YEARS At global level Dove had performed better. In the initial stage, sale value of Dove was approximately 4000 million US dollars in year 2016 meanwhile it started increasing. Further, in 2018 trend elevated to 4847 million US dollars then declined by 361 million US dollars and again, in 2020 trend went higher to 4977 million US dollars. Year Brand value of Dove in

2018

2019

2020

6

million U.S. dollars

4847

4486

4977

B. NUMBER OF COMPETITORS Dove is one of the leading personal care company owned by Unilever originated in the United Kingdom. Therefore, it has number of competitors in the market which might can affect their growth. The top competitors of Dove are Dial, Neutrogena, L’Oréal, Garnier, Olay, Aveeno. C. MARKET SHARE OF COMPETITORS Competitors Market Share

Dove 27.1

Neutrogena 18%

L’Oréal 15%

Garnier 13%

Olay 13%

Dial 14%

Aveeno 14%

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2. S.W.O.T. ANALYSIS SWOT is an acronym for Strength, Weaknesses, Opportunities and Threats, it is a framework used to evaluate company’s position and to focus on developing strategic planning. In Dove Company, the strengths and weaknesses of SWOT analysis are the internal factors whereas external factors are opportunities and threats. This analysis enables Dove to benchmark its business & performance as compared to the competitors and industry, it works as a proven management framework for Dove. While examining internal strengths and weaknesses, the marketing department would focus on organizational resources such as production costs, marketing skills, financial resources, company or brand image, employee capability and available technology. By performing SWOT analysis, it will allow the firm to identify their competitor. Dove firm used this

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analysis as a technique to assess the competition, performance, risk and potential of business also, part of business such as division or product line, an industry and other entity. STRENGTHS a. Product Design: Dove has the best advantage in its product design. It is combination of soap and ¼ moisturizing cream both of which makes it cleansing and soothing product. b. Real Marketing: Dove is popular as it uses real life people for its campaign instead of celebrities’ model. As a result, consumers connect with the product immediately and long lasting. Company’s motto is “Beauty should be for everyone” so brand itself speaks for people. c. Distribution Channel: A major strength of any HUL brand is its distribution channel. Handpicked distribution helps Dove as it wants to pull off the premium looks. It is found as grocery stores, at leading retail chains and premium outlets. These channels will be used to supply company’s new product Dove Face Serum in market. d. It has different range of products including soap, body wash, shampoos, conditioners, deodorants and now marketing department has launched new product as Dove Face Serum. Launching new product will broaden scope of Dove Beauty range products. e. It gives strong competition to other brands in the market. WEAKNESSES a. Intense competition for dove in the FMCG1 market results to limited growth in the market share. b. Dove primarily targets only female segment, products are not popular in men.

1 Fast Moving Consumer Goods. It relates to products in the market sold quickly and at a reasonably low price.

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c. Advertisements have controversial among the audiences including hypocrisy, nudity and racism. OPPORTUNITIES a. Firm can purposefully target men audience; they should concentrate more on men equivalent to women. As the company will launch Dove Face Serum so, firm will use opportunity to make skin glow serum for both genders. b. They should increase their reach to further geographical expansion. c. By involving students from colleges and tie up with corporates can open a new opportunity. THREATS a. Due to increased competition in the market segment business of Dove company might get affected. b. At global level business can get affected by government policies and by fluctuating economy. c. False beauty in advertisement creates pressure to look good, it increases expectation of consumer that they will definitely look good after using Dove. d. Its price is the reason that people in remote areas could not prefer dove soap or other products. Part3: Marketing Strategy: 1. Market segmentation (describe the basis of market segmentation) Before describing the basis of market segmentation in this industry is important to understand what market segmentation is. In the words of Lamb et al. (2017), "Within a market, a market segment is a subgroup of people or organizations sharing one or

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more characteristics that cause them to have similar product needs" (page 136). So, we can say that marketing segmentation divides the market into subsets or groups. As every customer has unique expectations, we organized our target into two groups that target similar needs and wants to the product. The marketing segmentation is young girls and women of age between 18 and 45, concerned with their skin. The accessibility criteria will be used to reach target segments with a customized marketing mix. The market segmentation will base on four categories: geographic, demographic, psychographic, and behavioural. First, the geographic segmentation characteristic will help us to understand women of various countries and continents. Second, demographic segmentation is necessary to divide our market into segments based on age. The necessity and wants change according to customers' generation. The third is psychographic segmentation, which is essential to divide customers according to personality and lifestyle. Generally, clients choose products that match their lifestyle. Marketing segmentation guides the decision-maker to more accurately define objectives and allow the company to allocate the resources better. 2. Target Market Strategy (target market selection) We know that the primary target of Dove is women. The company’s campaign is for real women's beauty-focused self-esteem. Dove provides high-quality products, and different from the other brands, the company has decided to connect with real people. The brand focuses on helping the customer by improving their self-image, satisfying the needs and wants. However, the multisegmented targeting strategy will be used along with that to launch this new product. The advantages of using this type of strategy are great financial success and economies of scale in producing or market. Linking this strategy with Dove’s campaign will help the company succeed, gain an

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advantage in the market, and appeal to as many people as possible. Besides these advantages, the company will generate as many sales as possible. 3. Product positioning (your product positioning in the market for the new product) Dove has been positioned as a personal care beauty product to encourage women around the world to feel good about themselves and help women to be beautiful as they have always been. Positioning is how the company places the product in the consumer’s mind creating a unique, consistent, and recognize customer perception. After understanding how Dove has been positioned in the market, we decide to use various bases for positionings, such as price and quality, attribute, and emotion. First, price and quality. The price is associated with the quality of the product. This base will help the company achieve profitability, support the product and complement the marking mix. Secondly, the new product will relate to the high quality of Dove products. Aside from matching the needs and requirements of customers. The attribute is related to a product feature and customer benefit. Finally, emotion can connect and produce feelings in people. The goal is to present an effective product to connect with our possible consumers and makes the customer feel confident following the company mission. Question4. Marketing Mix – address how you would suggest the company design: 1. Product 2. Price 3. Place/Distribution 4. Promotion Answer- The marketing mix is about putting the right product in the right place, at the right price, at the right time. There are some basic ingredients available to use to create the best out of a marketing plan are known as the marketing mix. A marketing mix is a group of elements, the four Ps. They are considered as the 4 decision-making areas in marketing. Getting any of these elements wrong destroys the rest of the

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factors which got right. These four elements of the marketing mix are interdependent. Its purpose is to ensure the creation and execution of a successful marketing strategy. This covers the marketing plan predominantly. The first P of the marketing mix is; Product: Firstly, there is a need to understand the problems our new product Dove serum is trying to solve, because except this, we don’t have a place in the market, and we certainly can’t sell or advertise something that doesn’t exist or doesn’t have any demand. There should a detailed definition of this new product. A unique selling proposition will be determined in this step as well. It is the marketing strategy of informing the customers about how our new product Dove serum is superior to its competitors. For instance, the best-seller serum (according to Amazon.ca) contains 11% of Hyaluronic acid which might be harmful to the customers’ skin. A high percentage of this acid might irritate skin according to the dermatologist. Our new serum will contain just 2% percent of this acid along with vitamin c/b3 which will prevent dark spots and skin darkening. It will also include Alaria Esculenta Extract and Maris Sal (Sea Salt) which will improve skin hydration levels and promotes unclogging of pores respectively. Price: This is the second P of the 4Ps of the marketing mix. The price of this new product should reflect its value to the customer. This step presents a challenge of coming up with a price attractive to the customers while still be profitable to the company. So, we should simply put the value of our new Dove face serum in the eyes of the consumers which automatically determines the price. It should be noted that the value should not low or negative otherwise the product may need to be underpriced to make sales. Place: The way through which the new product will be provided to the customers is considered as the ‘place’ factor of the marketing mix. In other words, the place is

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referred to where the product is to be sold. In today’s modern world, the place of the product is the most important as if the product appears on the internet it will reach globally while the reach in the physical marketplace is limited by the physical space. I would recommend choosing both the marketplaces for the new Dove serum as the worldwide e-commerce sales are increasing at a high rate2. Promotion: It is the last P o the 4 Ps of the marketing mix. It refers to the marketing communication methods used to inform, persuade and remind the target market of the Dove serum. This may include special offers, sales, promotions, and nowadays, many giveaways which are very helpful in promoting new products globally. Promotion is quite different from marketing because promotion is the communication aspect of the entire marketing function. The company is already doing very well in the advertisements as they always feature women, not models in their commercials. The company should also follow this practice with this new Dove face serum. In the conclusion, the four elements of the marketing mix should be in harmony and customer-centric.

References: 2 https://kinsta.com/blog/ecommerce-statistics/

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1.https://www.prophet.com/2017/06/doves-brand-portfolio-growth/ 2. https://www.dove.com/uk/dove-self-esteem-project/our-mission.html 3• Dove: brand value worldwide 2016-2020 | Statista 4. https://matrixmarketinggroup.com/marketing-situation-analysis/#:~:text=The %20definition%20of%20a%20situation,%2C%20customers%2C%20and%20business %20environment.&text=The%20situational%20analysis%20for%20the%20marketing %20plan%20is%20your%20marketing%20benchmark. 5. https://www.iaea.org/resources/nuclear-communicatorstoolbox/methods/planning/situational-analysis 6. https://www.mbaskool.com/brandguide/fmcg/805-dove-soap.html 7. https://www.pdfdrive.com/mktg-principles-of-marketing-e184017254.html 8. https://www.slideshare.net/carrinekezia/dove-marketing-plan-37041827 9. https://www.emarketer.com/topics/category/dove 10. https://www.slideshare.net/mayankjiii/dove-shampoo-hul-report 11. https://www.statista.com/statistics/1010915/dove-brand-value-worldwide/ 12. https://www.pdfdrive.com/mktg-principles-of-marketing-e184017254.html 13. https://www.byrdie.com/hyaluronic-acid-serum 14. https://www.superheuristics.com/marketing-mix-4ps-with-examples/ 15. https://www.amazon.ca/20-Vitamin-Serum-HyaluronicMoisturizer/dp/B00PL3DK26/ref=zg_bs_16735210011_1? _encoding=UTF8&psc=1&refRID=V7RXB9B722NNNB2QQ3VN 16. https://notesmatic.com/2019/04/marketing-strategy-of-dove/

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