An analysis of Dove, Unilever
The Implications of Customer Acquisition Activities on the Organization’s Performance8 Implications of Customer retention activities on the organization’s performance9 Implications of Innovations on International Strategy for Products/Services10 Implications of Future Trends on Marketing Objectives for International Organizations11 Implications of Future Trends on Marketing Strategies for International Organizations11 Evaluation of the political environment12 Evaluation of the economic environment12 Evaluation of legal and economic environment13 Conclusions and Recommendations13 References14 Executive Summary
Dove denotes a personal care brand name that speaks for itself. It emanates from the global business Unilever. Unilever has over 400 varieties of products typically in advertising foods, drinks and toiletries. Having been established in 1957, in the United States, Dove currently stands as one of the biggest names in women’s skin care products. Dove beauty bar, Dove body wash, Dove body lotion, Dove deodorant and Dove hair care take credit for putting Dove Company as a leading brand in the beauty market. Dove range of products extends to Facial Cleansers, body splashes, shampoos, conditioners and hair styling products.
The company targets women and men across the globe with the larger investment being in women’s product than men. The emblem of the brand is formed by a silhouette of the dove. The company owns plants in sixteen countries situated across the globe and directly distributing to another thirty five. The company subsequently reports total sales in eighty countries with an annual estimate of over 2. 5 billion euros in sales. The company prides in dermatological endorsement and being the number one approved in skin care products in the United States, Canada and France.
Dove makes use of vegetable oils and salts of animal fat. The company holds vision to help young girls all over the world embrace their beauty. With extensive research in their product market, the company reports an ever growing increase in the number of girls that loose self-esteem in seeking the media-depicted beauty. Dove campaigns for women to be comfortable in their own skin and offer a product that help maintain that beautiful skin. The company owns the number one cleansing brand with double-digit growth proving that the Dove a brand can be trusted.
Introduction The report includes market trends for Dove products. Dove sells its products in over thirty five countries and produces in sixteen. The report also discusses the marketing strategies both local and international. It also includes market segmentations and their effect on the company sales. The report indicates the implication of marketing concepts and approaches at both local and international level. It investigates the role of customer acquisition, customer retention and customer loyalty in the organization’s performance.
The report investigates future trends and the role of innovation in marketing strategies in retaining hold on the economic edge. The report will also critically analyze the role of the social environment political environment, economic environment the legal and ecological environment at international levels for the organization. Marketing Strategy The Nature and Role of Marketing at Local Level Marketing refers to informing the public about a service or product that an organization intends to or already distributes in the market. It makes us become aware of the buying deeds of the customer.
Marketing management includes influencing the market contributions, seizing the significance of communication, coming up with a long-standing growth and developing marketing strategies and plans. Product promotion alerts consumers of a products existence as well as letting consumers know about developments and offers. For the promotion of Dove products, Unilever gives flyers and posters to customers. They set top notch billboards. Unilever also runs catchy televised advertisements and post more advertisements on an array of magazine issues.
The company frequently checks and tracks the advertising campaigns so that the companies can promise long-standing achievement (Bradley, 2005). To measure if marketing plans are successful, the company compares monthly sales to check for increment. The Nature and Role of Marketing at International Level Large companies such as Unilever market their products to every demographic member of the global community. With the flux in internet use over the past decade, there has been fundamental shifts in the way consumers shop for and purchase goods and services.
Unilever like other multinational companies, adds Facebook, Twitter and other sites on social media (Doole & Lowe, 1997). Unilever also makes use of social projects, Dove Self-Esteem Fund for international product awareness. The project collaborates with organizations such as the Girl Scouts of the USA and UK’s Eating Disorder Association. They jointly fund educational body talk programs in schools to improve body-related self-esteem. Television and magazine commercials remain appropriate in International advertising.
Unilever runs the advertisements on global television networks like CBS among others and popular magazines like The Cosmopolitan among others (Ryan & Jones, 2012). Asset holdings in advertising and promotions rose by nearly EUR300 million, from 12. 6% to 13. 1% of sales in 2006, in order to support leading brand launches. Particularly successful was the “Campaign for Real Beauty” for Dove, which maintains its worldwide roll-out and crusades for self-confidence. The advertisement run by the theme “feels good, look good and get more out of life”.
‘Real Beauty Sketches’ a television run advertisement for Dove, picked up an award- Titanium Grand Prix, at Cannes International Creative festival, 2013. The advertisement also became the biggest viral hit of the year 2013. Marketing Concepts and Approaches at a local level Marketing concepts embrace the fact that brilliant marketing strategy takes the needs of the target market. Marketing concepts depicts creative ideas formed to tackle the problem of how to generate product need and get a group of consumers interested in purchasing the product.
Communication of benefits is vital in overriding competitor product’s appeal. Marketing concept focuses on the product’s unique selling proposition, offering benefits the product that competing products lack (Glowik & Smyczek, 2011). Promotion strategies should be unique, appealing and motivate the target audience while creating a desire for the product. Dove’s main target market is women. The product faces competition from Olay, Nivea, and Neutrogena products. Unilever enjoys profit sanctuary on its home turf, Western Europe. In the United States, Canada and France Dove is the leading beauty product distributor.
To stay ahead of the competition, the brand makes use of unconventional but appealing strategies in advertising. Unilever occasionally gives the campaign a new and a better look. It ensures that they keep the hearts and minds of a wide range of loyal clientele hooked Dove. Marketing Concepts and Approaches at an International Level Unilever holds high potential for expanding into foreign market especially with Dove, a key global brand. In marketing products internationally, Unilever pursues a worldwide approach, also known as a “think-global and act-global strategy”.
In foreign markets, Unilever uses an offense approach of cross market promotion (Mcleish, 2011). When venturing an emerging-country market, Unilever prefers to vie on the basis of less cost. With Dove, Unilever’s marketing strategy also involves niche market. It refers to features designed for fulfilling market requirements, which could be the product demand, the affordable cost range, high manufacture quality and the targeted demographics that are essentially the middle upper class women. Implications of segmentation on international organization
Market segmentation is a content-driven campaign that helps an organization in creating its agenda rather than focusing in monitoring the agenda. Dove bases segments on demographic and psychographics. Dove focuses on women above the age of eighteen. These are women who know and use beauty products. The women at this age better understand the value of skin care. Consumer statistics further put the upper middle class women as being more likely to purchase the wide range of quality products offered by Dove. By psychographic segmentation, dove aims at the mental outlook of women on beauty.
Dove advertisements, ‘Campaign for Real Beauty’ and ‘Real Beauty Sketches’ aim at the beauty of the real woman. They use everyday women as opposed to the stereotypical model advertisements used by other companies inclusive of some Unilever brands. The products do not add beauty but attack the attitude women hold towards beauty. Implications of targeting on international organization Targeting approach is an effective, efficient, and affordable way to identify and establish potential customers. Dove targets the upper middle class women of all ages’ shapes and sizes.
These are women who can comfortably afford and stick to the brand. Dove anticipates that they work and lack enough time for personal grooming. They attract them with products like their beauty bar, which is soap with high moisturizing content. The newest focus group, women in their fifties, has long been ignored but holds high customer potential. They serve a good market for skin care anti-aging products. The market has long been L’Oreal’s turf but Unilever is fast settling in the market. ‘Campaign for Real Beauty’ features a pro age theme.
Implications of positioning on international organization In marketing, positioning applies in the product sector while trying to counter competition in the market. Dove’s positioning attracts women all over the world, not because it has special beautifying formulas but because it preys on the mind, making women feel as beautiful as they wish. Dove’s campaign to change the concept of beauty has worldwide appeal as runway model beauty is difficult to achieve. Most women want the everyday woman to be the definition of beauty ensuring Dove unending consumer support.
As a result, this increases the organization’s annual sales and profitability margin. The Implications of Customer Acquisition Activities on the Organization’s Performance Unilever attracts a wider consumer base through the expansion of its brands and geographic markets. Unilever claims that market shares went up across geographies, with tough gains in Latin America and North America with a turnover of €18. 1 billion, essential sales growth of 10. 0% and essential volume growth 6. 5%. Rise in consumer base end results in profit growth.
The cross market subsidization forms part of the company’s strategy in the acquisition of new clientele. Unilever also makes use of bargain prices especially in new markets to lure new customers in new markets (Robinson & Rajah, 2002). Another strategy entails the company’s custom of quality goods production. Unilever’s entry in emerging market such as Asia-Pacific, Latin America and North America implies to the high contribution of Unilever total revenue by 26%, 21% and 16% respectively. Implications of Customer retention activities on the organization’s performance
Corporate social responsibility calls on Multinational Corporations like Unilever to focus more on environmental, economic and social issues. Unilever shows equal interest in human life as with the business part. On member of staff comfort and security, the company constructs member of staff accommodation adjacent to its industrial unit. They also enjoy fixed work week, enjoy paid holidays and get enrolled in health and safety programs (Ferrell & Hartline, 2011). Customer’s loyalty is higher towards companies that express regard for human life.
Unilever recognizes that branding is about sustaining customer loyalty and trust. In 2006, Santiago Gowland, Unilever’s then-VP of Global Brand Development & Sustainable Development Strategy, led a group that initiated the company’s Brand Imprint Tool. The strategy entails sharp focus on impacts and influences on society, economy and the environment. (See Appendix 3) The branding put the company at a better position to handle environmental problems. Unilever’s holistic approach towards sustainability of ecofriendly profitable business challenges by leveraging the strengths of brands, not programs.
Implications of Innovations on International Strategy for Products/Services In the year 2010, Unilever spent €928m on research & development. Unilever at this time hosts more than 6000 persons working in research and development departments in all Unilever areas all over the world. The company characteristically files between 250 & 350 fresh patent requests annually. Worldwide, Unilever holds more than 20 000 registered copyrights & patent applications (Meissner, 2012). Unilever also invests in breakthrough technologies, creating products that give consumers an unmatched experience.
Implications of Future Trends on Marketing Objectives for International Organizations Dove products face intensifying competition by the day from leading brand names like Proctor and Gamble’s Olay, Beiersdorf’s Nivea, Johnson and Johnson’s Neutrogena and L’oreal(See appendix 4). In addition, small niche brands with fast growing popularity pose new threats for the products. Dove resultantly invests in its research and development departments to improve products and in search of new products that cover all consumers’ needs.
Unilever’s objective remains the intent to retain an edge in the market (Zisa, 2011). Dove faces the threat of consumer boycott and action by animal rights activists especially with ever growing awareness of animal rights in foreign states. This results from the fact that they still test their products on animals. A permanent alternative remains a vital project in the company’s future. Implications of Future Trends on Marketing Strategies for International Organizations Dove like its competitors makes use of trendy advertisements to generate product awareness.
They continually invest more in modern technology when developing the advertisements. Dove recently adopted the use of email marketing campaigns, social media platforms, and a unique specially designed tablet media to expand its reach and engage more consumers on the digital plan. New York-based agency L2 ThinkTank started its most recent Digital IQ Index: Personal Care, which tries to enumerate the digital performance of 75 American Personal Care brands, spot strengths and weaknesses, and names Dove as one of the top ‘genius’ brands (McDougall, 2013).
Dove marketing recently included a mobile component, with experiments in video, games, and interactive content. Adoption of technology and the website saves the organization valuable funds while giving profitable returns in the form of widespread consumer awareness. Evaluation of the social environment The social environment, as an aspect of pestle, refers to diverse factors such as demographics, consumer buying patterns, consumer attitude, trends, advertising, and many others (Hancock, 2005). Dove’s consumer attitude is summarized by their self-esteem campaign.
Targeting women of all types gives them a wide consumer base. Dove reputably focuses on the real woman and natural beauty in promoting their products. It has long been the subject of debate but Dove stands by the company’s intent to redefine beauty as opposed to manipulating sales numbers. The strategy however serves both purposes. Evaluation of the political environment Political environment of an organization at international levels entails the different countries interventions that affect international economy.
These political forces include international environmental laws, trade restrictions by different countries, tax policies, and political stability among nations (O’Guinn, Allen & Semenik, 2010). The New York Times reported that sales growth for 2013 overall was 4. 3 percent, down from 6. 9 percent in 2012. Unilever attributes the drop to unstable political currents slowing growth in some emerging markets including South Africa, Vietnam and Thailand. Consumers in the reported countries did not spend money on many of Unilever’s products.
Leading companies L’Oreal and Revlon have taken to withdrawing many investments in the Asian market as a result of the prevailing hovering political unrest. Evaluation of the economic environment Economic environment entails factors that relate to the economic structure, economic policies, and the degree of economic influence in the operation of international organizations. For instance, taxation issues by different countries across the world might affect the dominance and penetration of a company in certain markets (Maljers, 1997). Unilever’s market prowess lies in their ability to meet consumer demands. To uphold their market hold, the company constantly introduces new products like Doves anti-aging cream. They have to conduct surveys on consumer needs, which by company policy is the highly funded research and developments department’s major role. Evaluation of legal and economic environment It refers to the law related issues that affect the operation of an organization on an international platform. Different countries have different legislation that might support or might not support the entrance of a multinational the country’s market.
Dove has been slammed on animal rights testing by different activist groups which usually disrupt work. Unilever also faces threat of information leakage despite legally binding contracts signed by employees. In 2008, Unilever reported an increase of 4. 3 % in total waste compared to 2007. Legal charges were laid to seek alternative disposal methods for effluent. Conclusions and Recommendations As one of one of Unilever’s iconic brands, Dove serves as a good example of a successful multinational brand.
The strategies employed by Unilever retain Doves competitive edge in an ever growing but market. The wide range of quality products with many years guarantees appeals to the loyal clientele who get the best from the product. The organizations sustainable plan in Corporate Social Responsibility is a point of recommendation to competing brands. It should not entail short programs, but a lifelong plan. This reassures the consumers of the organizations dedication to humanity. However, Dove remains top notch and a brand to reckon.