1. CURRENT MARKETING SITUATION SITUATIONAL ANALYSIS Dove is an internationally popular brand specializing in personal care products and is owned by Unilever. The brand was created in the year 1957 to launch a new line of personal cleansing bars. The brand was later used to sell a new line of cleansers, adapted from the formula of the previous cleansing bar....
1. CURRENT MARKETING SITUATION SITUATIONAL ANALYSIS
Dove is an internationally popular brand specializing in personal care products and is owned by Unilever. The brand was created in the year 1957 to launch a new line of personal cleansing bars. The brand was later used to sell a new line of cleansers, adapted from the formula of the previous cleansing bar. The new cleansers were intended to be used on burned or damaged skins, of which there were numerous cases during that time, following the Second World War (Deighton, 2008). The cleansers marketed under the brand Dove were very innovative products at this time as the products were non-soap cleansers that could be used to eliminate skin dirt more easily than using soap. The Dove brand has grown from this over the years to be considered the world’s top brand in cleansing products today. The brand evolved from its creation to the present day, improving its image and products through intensive research and numerous marketing strategies.
STRENGTHS
· Product design
· Real marketing
· Cost-effectiveness
· Distribution channel
· A valuable addition to the HUL (Hindustan Unilever Limited) portfolio
WEAKNESSES
· Targeted solely at large urban areas
· The prices are not very competitive
OPPORTUNITIES
· Focusing more on men as a part of the target audience
· Possibilities for brand’s diversification
· An evolving market
THREATS
· Saturation of the market
· Lower popularity in less urban areas
· Potential brand imitators
Strengths
1. Product design:
The Dove brand possesses a very unique product design. The product functions both as soap and as cream, performing a dual function of cleansing and smoothing skin. This unique product design has attracted a very devoted customer base to the brand.
2. Real marketing:
Dove attempts to make the product it sells more relatable to the masses by using regular people instead of celebrities for marketing campaigns (Duffy, 2010). This has helped to create a stronger connection with the brand’s customers.
3. Cost-effectiveness:
The brand conserves a lot of money during its marketing campaigns by not engaging celebrity figures’ endorsement. This strategy saves a lot of money and does not compromise the effectiveness of the brand’s advertisements.
4. Distribution channel:
Dove also employs one of an HUL brand’s key features, mostly only in the most prominent retail chains and outlet stores. This bolsters Dove’s image as a premium product only available in select handpicked stores.
5. A valuable addition to the HUL (Hindustan Unilever Limited) portfolio:
Dove is one of the most valued brands of the HUL company. The brand ranks third on the most valued HUL brands, right behind Knorr and Lipton.
Weaknesses
1. Targeted solely at large urban areas:
As a consequence of Dove’s distribution channel, its products are mostly targeted at large urban areas such as metros. The majority of its consumption is identified in such areas.
2. The prices are not very competitive:
Dove products are considerably more expensive than that of the brand alternatives such as Cinthol and Lifebuoy.
Opportunities
1. Focusing more on men as a part of the target audience:
Dove has an opportunity to expand its customer base, and consequently its sales, by appealing to the male portion of the population. Men have become much more conscious about physical appearance in recent times, and products such as Dove offer are suited to meet this need.
2. Possibilities for brand’s diversification:
There are various opportunities for diversification in personal care, creating the possibility for new product lines and variants of a product.
3. An evolving market:
The dynamic market is changing to favour the brand. Dove has become a more accessible brand to the public in terms of prices. The more recent public investment in achieving better overall wellbeing, which includes good skin, has made Dove much more attractive as a consumer product.
Threats
1. Saturation of the market:
Numerous brands are competing with Dove, some of which are Neutrogena, Olay, and Nivea. These brands specialize in either soaps or creams and are options for customers to choose from when purchasing a skincare product.
2. Lower popularity in less urban areas:
The high selling price of Dove products limits the percentage of the population which can afford them. This restricts the sale of such products to more affluent and highly urban areas. This restriction can be more evident in large countries such as India, which has a greater proportion of impoverished and poorly developed areas than highly urban ones, thus limiting the brand’s ability to capitalize on such a large consumer market.
3. Potential brand imitators:
The strategy which allowed Dove to relate so well to its customer base was recently copied by one of Dove’s competitors, Olay. The brand also adopted real-life people in its marketing campaigns to demonstrate the effectiveness of the products it sells and connect better with its audience.
2. TARGET MARKETING AND MARKETING MIX
Pricing strategy
Dove is sensitive to its market and the financial situation of its target population. This sensitivity is best evident in the company’s price reduction to respond to the low demand for its products due to their expensiveness. Even with the reduced prices, Dove products are still more costly than those offered by its competitors. However, Dove still maintains its strong market presence by justifying the cost of its products with the uniqueness and high quality of its products. Thus, Dove’s price strategy is regulated by its competitive prices and the demand for its products.
Place & Distribution Strategy
Dove has established a steady commercial presence in more than 80 countries worldwide, and it maintains this presence using the distribution channel of its parent company Unilever. Dove employs a particular distribution chain to facilitate the transfer of its product from the point of manufacture to the consumer. The product is transferred from the factory to the warehouse for temporary storage, from here, C & F agents sell the product to stockers, who sell them to retailers. The retailers include supermarkets, general stores, chemists, and wholesalers. Dove products are also hosted for sale by independent retailers on e-commerce websites.
Promotion & Advertising Strategy
Dove’s heavy focus on its female audience is highly represented in its promotional strategy, whose central theme is to present aspiration for women. The campaign focuses on encouraging women to raise their self-esteem by unleashing their inner beauty. The brand identifies diversity and celebrates the individuality of each person, regardless of age or race. Dove’s advertising strategy is built on achieving as much relatedness to its audience by using non-models for marketing campaigns. The non-models are usually of varying body sizes, races, and ages. The brand also promotes its image through videos and short films, some of which have gained immense popularity all around the world.
3. MARKETING STRATEGY
Plan Objectives
i. Sales Objective:
· Establish a growth in sales by a minimum of 0.7 percent in the year 2021.
ii. Marketing Objective:
· Increase customer base by converting 10 percent of high-end users; upscale body washes produced by the competition to Dove Body Wash users in 2021.
iii. Advertising Objective:
· Impress upon the users of high-end, upscale body washes produced by the competition the superior quality of the Dove product, which justifies its higher price.
· Reinforce the commitment of the Dove brand to “real” women.
Target
· This product’s primary targets are multi-ethnic women aged 18-49 who are currently married but have no children and earn a lower household income.
· In choosing the intended target, an evaluation was conducted to determine the portion of the population who use high-end body washes. The identified group consists of women of various ethnic backgrounds.
· The evaluation also determined that the female users of high-end body washes are highly likely to be married and not have children. A large portion of this population falls into the lower-income ranges.
Geography
· A national campaign will be employed to promote the product with particular attention and extra promotion directed to all of the following seven cities: Atlanta, Georgia; Dallas-Fort Worth, Texas; Houston, Texas; Los Angeles, California; Miami-Fort Lauderdale, Florida; San Francisco, California; and Washington, District of Columbia.
· The extra promotions, termed local heavy-ups, are intended to provide advertising beyond the nationwide campaign to capitalize on these regions’ large population.
· The local heavy-up promotional efforts in each of the seven cities will reach seven large markets, which make up 16.6 percent of all United States households.
· Three of the cities selected for the local heavy-up efforts are part of the top Nielsen DMAs, and members of the target population are highly likely to reside in these regions. The three cities are Atlanta, Georgia; San Francisco, California; and Washington, District of Columbia.
Seasonality
· The nationwide campaign will be run continuously throughout the year, with the additional promotional efforts, termed heavy-ups, scheduled for the entirety of the fall and winter months. The heavy-ups will also serve as a direct response to the competition’s advertising efforts during these periods.
· The nationwide campaign to be run throughout the year will help maintain the Dove brand’s commercial presence at all times. This will help the brand retain its influence and its large market share.
· The heavy-ups run during the fall and winter months will serve a dual purpose of keeping up with the competition and advertising the Dove product during the time in which it will be the most useful. The Dove body wash can help repair dry skin, which is a very common occurrence in these very dry and cold months.
Scheduling
· The advertisements will be presented at the times of day in which the target audience will be most likely to encounter them. The best recognized times for this are weekday morning hours, evening hours, primetime, late-night, and evening commutes. Advertisements will also be broadcast on the radio during some periods throughout the year.
· The scheduling strategy is intended to maximize the reception of the advertisements by the target audience by choosing times when members of the target audience are most likely to be receiving information from the media.
· The advertisements will also run on weekends at similar hours to that of the weekdays. Members of the target audience tend to receive media information at similar hours on the weekends.
Plan Performance
· In each of the seven cities selected for the heavy-up marketing efforts, an estimated 80% of the target audience will be reached an average of 3 times, producing 250 GRPs throughout the year 2021.
· The heavy-up marketing efforts will be targeted at each of the seven cities from March through October. The second heavy-up effort will ensure constant exposure of the product for the remaining four months.
· In markets without heavy-up marketing efforts, an estimated 70% of the target audience will be reached an average of 2.2 times (as designated by the Ostrow (1982) method).
· There will be a marked difference in the reach and frequency experienced in the markets without the additional marketing effort through the eight-period between March and October.
· There will be a marked increase in reach in the markets without the additional marketing effort during the heavy-up marketing efforts in other markets. This will reach an estimated 80% of the target audience in this market an average of 3 times.
· The heavy-up marketing efforts to be employed in November through February will increase the reach and frequency in markets without the additional marketing efforts. This will ensure that the Dove body wash product reaches as large a portion of the population in this period in which the competition will also be attempting to do the same.
Promotional Tools (list)
Dissemination of information about the Dove body wash will be accomplished through the use of various information media. This will include campaign posters, billboards, newspapers, magazines, e-mails to subscribed customers, TV ads, radio broadcasts, direct marketing through salespersons and social media platforms. The advertisement is intended to produce widespread awareness among the target audience about the benefits of skincare and the Dove product available to meet this need.
1. TV ads
The television advertisements will be aired as commercials to convey the product’s message to the target audience. The commercials will be scheduled to run during television hours and programs to which the target audience is most drawn.
2. Billboards
Billboards will be put up in prominent flash areas, which will promote product exposure and potentially attract more customers.
3. Advertisements in newspapers and magazines
Sections in newspaper editions and magazines will be purchased to be used as an advertisement for the Dove body wash product. This will be an exploitation of the opportunity to reach a portion of the population.
4. E-mails
E-mails are a very effective and cost-effective means of disseminating information to many people very quickly. This service can inform subscribed customers of the Dove body wash product and reach out to potential new customers. Website such as mahan.com from which thousands of e-mail ids can be obtained to reach potential customers.
5. Direct marketing
Salespersons will be engaged to physically interact with the population, promoting the product in the process.
6. Social media platforms
Social platforms such as Facebook, Twitter. Youtube and MySpace are excellent ways to advertise the Dove brand and the Dove body wash product. These platforms are extremely popular among the female target audience and have hundreds of millions of users worldwide. Through these platforms, information about the product can spread very easily and influence more people to become customers. A page dedicated to the Dove brand or the Dove body wash can also be created on these platforms allowing the users of these platforms to engage the information on the page at the tap of a button.
Monitoring Techniques
The following are some of the tools which will be used to quantitatively measure and track the impact of the marketing campaign on the company’s performance:
i. Progress Reports
A comprehensive report on each marketing campaign strategy’s effect will be periodically drawn up and disseminated to each department to allow each strategy’s success or failure to be easily identified all over the company.
ii. Timeline
A timeline will be kept for each marketing campaign strategy so that each one can be adequately followed and compared at varying time intervals. This will allow for easier identification of the change in a company’s success over time concerning the marketing strategies.
iii. Outcome Measurements
A standardized measure for determining a marketing strategy’s success will be recognized and used to compare each strategy. This will be selected to be one or more of the following: increased sales, gross revenue, profits, customer base, client’s feedback, goodwill, or brand awareness.
4. BUDGET
The proposed marketing campaign budget limits the promotional effort’s expenses and forecasts the effort’s potential benefits. The budget covers all the financial requirements to affect the marketing plan for promoting the new product. The budget will be allocated to the marketing team by the company’s bank to give the team the financial ability to execute the proposed plans.
CAMPAIGN
MODE
COST (USD)
NO. OF CONTACTS
TOTAL (USD)
TV Ads
Target local TV stations
50,000
20 TV stations
1,000,000
Billboards
Contract third-party advertisement agencies
100,000
2 advertising agencies
200,000
Newspapers and magazines
Local newspapers and beauty magazines
100,000
10
1,000,000
Direct marketing
In-house sales personnel
Normal salaries and bonuses
300,000
E-mails
In-house digital team
100,000
Social media platforms
· Youtube
· Facebook
· Twitter
Total
2,600,000
5. EXECUTIVE SUMMARY
The Dove brand has earned a deep connection to its customer base by understanding them and relating them. This connection has extended far and wide to transcend age, race, nationality, belief, and size. The current proposed marketing plan is intended to expand Dove’s customer base, both among men and women, and increase sales. The projected growth to be registered using this marketing plan is a 0.7 percent increase in sales and an attraction of 10 percent of the users of high-end, upscale body washes from the competition to the Dove Body Wash in the year 2021. The advertisement campaigns will emphasize the superiority of the Dove product over its competitors and justify its higher selling price. The campaign is to be hosted on different forms of information media to maximize the product’s exposure to the public. This will include TV Ads, billboards, ads in newspapers & magazines, e-mails to subscribed and potential customers, direct marketing using salespersons, and social media platforms. Several monitoring techniques will be used to track the marketing campaign’s success through its lifetime to recognize its effect on the company’s success. Such monitoring techniques include progress reports, timelines, and outcome measurements (increase in sales, brand awareness). This marketing campaign’s budget is around 10 to 15 percent of the company’s overall budget, a total sum of $2,600,000.
References
Crilly, J., & Kirkham, P. (2017). 3 Strategy in practice. Building an Entrepreneurial Organisation, 36.
Deighton, J. (2008). Dove: Evolution of a brand (pp. 9-508). Harvard Business School Pub..
Duffy, B. E. (2010). Empowerment through endorsement? Polysemic meaning in Dove’s user-generated advertising. Communication, Culture & Critique, 3(1), 26-43.
Ostrow, J.W. (1982). “Setting Frequency Levels.” In Effective Frequency: The State of the Art. New York: Advertising Research Foundation, Key Issues Workshop.
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