MKT 291 Principles Of Marketing

MKT 291 Principles of MarketingMarketing Plan Industry Analysis PaperKaitlyn JohnsonMiami University

Table of ContentsExecutive Overview . . . .2Situation Analysis . . . . .3History of Dove . . . . .2Market Summary . . . . .4Market Trends . . . . .4Market Shares . . . . .5Market Performance . . . . .5Segmentation and Target Markets . . . . .6Environmental Audit . . . . .7Social and Cultural Factors and Trends . . . . .6Economic Factors . . . . .6Technological Factors . . . . .8Competition . . . . .9Other Factors . . . . .9SWOT Analysis . . . .10Citations . . . . . .131

Executive OverviewThroughout this marketing plan we analyze the personal care brand Dove. Starting at thebeginning of the report, we discuss the history of Dove and Dove’s market position currently.We then delve into a market summary of Dove. Specifically analyzing market trends, the growthor decline of the market, market share winners and losers and Dove’s market performance. Inthis section, we also look at Dove’s target markets and segmentation.After this we analyze the environmental audit. This includes discussion of social and culturalfactors and trends and how they relate to consumer behavior in Dove’s market. We also discusseconomic factors. Specifically, the impact of the current economy on the purchase patterns ofDove’s products. We further examine the technological factors and how technology may or maynot impact Dove’s product line. Another component we examine in this section is competition.In addition to this we look at who Dove’s key competitors are Dove’s competitors in terms ofsubstitutable products. The last part of this section includes factors related to legal or regulatoryissues.2

The report concludes with a SWOT Analysis, examining the strengths, weaknesses, opportunitiesand threats of Dove and its products.Situation AnalysisHistory of DoveDove began its journey in the personal care market in the 1940s in the United Kingdom. Its firstproduct was the Dove Bar. This product was created during World War II as a non-irritating skincleanser for pretreatment use on burns and wounds (“On the Wings of a Dove” 45: 36). Then,moving into the 1950s, the original Dove Bar formula was improved and evolved into the DoveBeauty Bar. This product is what introduced Dove in the United States in 1957 (Unilever.com).This product was made accessible nationwide by the 1960s. Moving on to the next decade, anindependent clinical dermatological study proved that the Dove Beauty Bar was milder than 17leading bar soaps in the 1970s (“On the Wings of a Dove” 45: 36). The 1980s gave Dove the titleof the “number-one-physician-recommended cleaning bar”. Following this came UnscentedDove. Eventually in the 1990s Dove Beauty Wash was created. Five years later, the productsindividuals know today, Dove Moisturizing Body Wash, Dove Sensitive Skin Bar, Dove FacialCare Cleanser, Dove Facial Cleansing Scrub and Dove Facial Care Daily Moisturizer wereestablished. At the end of the 1990s, Dove All Day Moisturizing Body Wash was introduced. In3

the early 2000s, Dove advanced into the anti-perspirant and deodorant market. They also createda Dove Hair Care line and added a Dove Massage Body Wash and Cool Moisture Body Washand Bar. Now in the 2010s, Dove has launched Dove Men Care, a line of products specificallytailored to men. Dove is committed to listening to women. They launched their Real BeautyCampaign in 2004, and has continued to run this campaign since, creating the Dove Self-EsteemProject in 2006 in order to help women grow up free of misconstrued beauty standards(Unilever.com).Market SummaryMarket TrendsIn terms of the United States alone, there is an incredibly largemarket for personal care products, ranging anywhere from cosmeticsto oral care. From Figure 1, it can be seen that the current, “revenuein the Cosmetics & Personal Care market amounts to 74,251[billion] in 2018” (Statista). On top of the million dollarindustry, the market is projected to grow by 2.2% annually untilthe end of 2021. From the total revenue of this market, Doveindividually made up 7,830,436 billion of that in 2017, seenfrom Figure 2, making them the most profitable company in thepersonal care market.To break this up into more manageable margains, it can be noted that, “the average revenue perperson in the market for Cosmetics & Personal Care amounts to 226.48 in 2018”4

(Statista). From both Figure 3 and Figure 4, it is evident that the growth rate for most productindustries in recent and future years has, or will have, a steady and positive growth, although nothaving quite a linear relationship. Similar to the entirety of the market, but not exactly to thesame magnitude, the individual spending is projected to grow 1.5% annually until the end of2021.While discussing growth rates and trends, “in the Cosmetics & Personal Care market, 44% oftotal revenue will be generated through online sales by 2021” (Statista). From Figure 5, theamount of offline shopping will decrease from 70% to 56%from 2017 to 2021, while the amount of online shopping willjump from 30% to 44%. The convenience of shopping fromone’s household and being able to compare multiple discountsat once is advantageous to the consumer, and will continue toattract more customers as time progresses.Market Shares & PerformanceFigure 6 displays a pie chart, dividing each specific personalcare industry into a percentage of market concentrations. Thesmallest industry is hand sanitizers at an incremental 4%, whilethe most dominant share is liquid body wash at 48%. Of thesepercentages, Dove leads the first 5 categories in revenue overevery other personal care company, and owns one more categoryin the 10th spot, as seen in Figure 7. Leading the charge is“Dove Mens Care Plus” with 124,600,776 dollar sales, while5

the “Dove Nutrium Moisture” simply outperforms every other brand in percent growth with avalue of 178.8%. That beats the second highest growth rate of “Olay Fresh Outlast” by 90.9%,demonstrating the major potential for profit in the moisturizing industry, which isn’t evenincorporated as its own category in Figure 5. Although often times blended into a liquid bodywash or hand soap, the rise in individual product lines for moisturizers is skyrocketing.Segmentation and Target MarketsAs mentioned above in the “Market Share & Performance” section, moisturizing product linesare the most open for growth and revenue, with a growth rate of 178.8%. To specifically delveinto who should be marketed to, “only 59% of adult men agree they use facial cleansers, and53% agree they use facial moisturizers” (Mintel), but, “helping men to better connect use ofskincare products with a more handsome, healthy appearance may further boost future sales,which are projected to hover around 3-4% over the next several years” (Mintel). Men are theprimary target market for moisturizing profits, but are often resistant to using such products dueto standard “tough-man” stereotypes. By proactively advertising to create a productrepositioning, Dove could successfully own a majority of the market shares in the untappedmoisturizing industry, sell hundreds of thousands of units, and raise profits for the companyexponentially. In order to “maximize sales growth potential, stakeholders should target men aged35-44 who are most invested in the category and are less price sensitive than other age groups”(Mintel). Now the target market gets smaller as there is more potential for sales in the 35-44specific age range, as these men are most willing to try the products without heavy concerns ofcosts. A smaller market, but still with a great opportunity for growth, is the deodorant sector,since, “future deodorant sales are projected to remain steady as a lack of competition and6

continued interest in exercise should propel demand” (Mintel). As people become more activeand want to stay fresh, there may be more of a desire for antiperspirant or spray-on deodorantproducts by Dove, while being relatively unmatched in regards to competition.Environmental AuditThe cultural and social trends is a big part with coming up with a marketing plan. One tactic thatthey do on their website is the release of campaigns that can be reached out to all differentcultures. One Campaign called “Beauty Portraits” shared the life stories of different womenaround the world. These women come from all different ethnic and racial backgrounds. One oftheir social and cultural trends is that they want to be able to appeal to all different cultures andthat Dove is the right place to buy personal care products. Dove has been known for theirfeminist advertising and trying to near more toward women. It is found that Dove personal careproducts sell to mostly women compared to men and target those ages from 25 to 34 the mostwith those products (Industry Trends 2017).Another cultural trend is that the market is multicultural and mainly full of Millenials. They arethe fastest growing population in the country and essential to companies to market their product.They find products that align with their values and their cultural characteristics. AfricanAmerican Millennials spend more on average on personal care products and consist of 80% ofthe multicultural share. They are willing to pay top notch for the premium brand products andfor a better customer experience. With Millennials, social media plays a big role in advertising abrand and is a big influence in the purchase decisions (Industry Trends 2017).7

With technology on the rise, the effect of E-commerce plays a huge deal to the economy andpurchase patterns with personal care products. Mainly sales comes from wholesalers in grocerystores and online ordering. Online ordering is only 3.1% of the market so the purchase patternsare almost all in store purchases. Personal care products is always a product that people need tobuy so opening up more opportunities to buy them increases brand awareness and increase inpurchase patterns especially for small companies starting up. Research shows that people are37% more likely to buy personal care products like soap and body wash on Amazon Prime. Sothe E-commerce is on the rise in the future but the focus right now is in store purchases withfocusing on aligning with the conscious of the customer to improve the purchases patterns(Industry Trends 2017).Technological FactorsTechnology has been advancing rapidly over recent years and has been affecting all industrieswhether it is directly seen or not. Increase use of social media among millenials has allowed formore normalized talk of subjects that used to be more personal. An example would be thatindividuals are now discussing their skin conditions on platforms such as Instagram andFacebook in order to gain advice from others. Dove observed these concerns via social mediaand has created a line specifically for those with sensitive and dry skin. This line, DermaSeries,is available in soap, skincare, and shower products. The goal of their ad campaign, Real Beauty,is to help increase self esteem in women. Through the research they have done with social media,they have been able to expand the Real Beauty Campaign by addressing and normalizing skinconditions (Rosenberg). Other technological advancements can be found within the formulationof their products. Fragrance is a factor that consumers find important when making purchasing8