Contents Executive Summary ....................................................................................................................................... 2 Rationale for choosing the product .............................................................................................................. 2 Market Objective .......................................................................................................................................... 3 Situational Analysis ....................................................................................................................................... 3 Hindustan Unilever Limited (HUL) ............................................................................................................ 3 Company ................................................................................................................................................... 3 Brand: Dove........................................................................................................................................... 4 Competitors .............................................................................................................................................. 4 Market Scenario Product Category: Hair Care ...................................................................................... 4 Context ...................................................................................................................................................... 5 Customer ................................................................................................................................................... 6 SWOT Analysis .................................. ................. ................................... ................................... .................................. ................................... .................................... ................................... ................. 7 Strengths ............................................................................................................................................... 7 Weaknesses: ......................................................................................................................................... 7 Opportunity:.......................................................................................................................................... 7 Threat: ................................................................................................................................................... 7 STP Analysis ................................................................................................................................................... 8 Segmentation ............................................................................................................................................ 8 Targeting ................................................................................................................................................. 10 Positioning ............................................................................................................................................... 10 Marketing Action Programs ........................................................................................................................ 12 Product .................................................................................................................................................... 12 Price ........................................................................................................................................................ 13 Place: ....................................................................................................................................................... 14 Distribution Channel: .......................................................................................................................... 14 Promotion ............................................................................................................................................... 15 Advertising .......................................................................................................................................... 15 Implementation .......................................................................................................................................... 18 Budget ..................................................................................................................................................... 18 Financial Projections: .................................................................................................................................. 19 New venture ............................................................................................................................................... 21 Annexure: .................................................................................................................................................... 22 Market Survey ............................................................................................................................................. 22 Findings: .................................................................................................................................................. 23
References .................................................................................................................................................. 23
Executive Summary Market for shampoo in India grew by almost 3.8% in year 2010 to reach sales of INR 4.5 billion. The economic development, spending habits, living standards and people spending more on discretionary goods have been driving the growth of hair care segment across the country. HUL Dove and P&G Pantene have been major players in the shampoo market since last 5 years. HUL earns revenue of INR 49,693.6 million f rom rom the sales of its personal products out of which 30% is contributed by shampoo sales. HUL provides three leading brands of shampoo in market namely Dove, Sunsilk and Clinic. Dove contributes to 21.8% of shampoo sales and has led to increase in HUL revenue sales since 2007 even when sales of other personal products were declining. This has been the result of unique target segmentation and positioning of dove. From young females target customers were shifted to female population of all ages and sizes. A very substantial and impressive advertisement campaign is in effect since 2007 namely - Campaign for Real Beauty (CFRB) thus capturing increasing market share and attracting more and more consumers. Dove brand has been actively involved in spreading the message of ‘real beauty’ among masses and thus portraying that ‘beauty comes from within inner-self ’ through its commercials commercials and some workshops, workshops, debates, online surveys and other sub-campaigns like daughter’s campaign, evolution campaign and self-esteem fund 2008-09. Dove has introduced two specialty effect formulations namely damage therapy and intense hair care which led to its positioning as an expert formulation in ‘care for hair’. Also dove holds its parity of difference that states that it’s the mildest and moisturizing shampoo with pH levels of 6 thus again accentuating its ‘care for hair’ positioning.
There have been research studies claiming that men too are sensitive to their skin and looks. Taking this forward and inspired by the message spread by CFRB, a new target segment of men can be entered into. Thus this report gives existing market analysis and rationale about marketing strategy (segmentation, targeting and positioning), advertisement activities and strategy, budget allotment, and financial projections. The expansion scope of this brand is clear by the statistics shown and rationale given thus justifying the the proposal of new market segment of men introduction into the shampoo market.
Rationale for choosing the product
DOVE has a unique segmentation strategy where it targets all women belonging to all ages, shapes and sizes. To study how it shifted its focus from a narrow segment to a wider segment and also managed to successfully drive its consumers in a short period of time. The ad campaign of DOVE has been highly appreciated as it indulged a large range of consumers i.e. from teenagers to old women to realize that ‘beauty lies in inner self’.
To study how HUL has managed to get 8% increase in its market share mainly due to dove sales when sales of other personal care products declined.
Market Objective
To increase the consumer base and market sales at least upto 15%.(rationale and calculations mentioned in the report) Proposing to enter into new market segment i.e. men alongwith maintaining present premium consumer segments. To create more awareness about the idea of ‘real beauty‘ among women as well as men through debates, online surveys, thus adding to the value attributed to one’s own beauty.
Year 2007 2008 2009 2010 2011(forecasted)
sales (in millions rupees) 2343.79 2521.66 2987.32 3466.62 4309.36
Situational Analysis Hindustan Unilever Limited (HUL) Company HUL is India’s largest FMCG Company with a span of over 75 years. Having 35 brands spanning 20
distinct categories such as soaps, shampoos, detergents, cosmetics, toothpastes, skin care, deodorants, tea, coffee, ice cream, packaged foods and water purifiers, the Company is a part of the daily life of millions of consumers across India. Over 16,000 employees and annual turnover of around Rs.19, 401 crores (financial year 2010 - 2011). HUL is a subsidiary of Unilever and leading supplier of fast moving consumer goods with powerful local hold in more than 100 countries all over the world with annual sales of about €44 billion for 2011. Unilever has about 52% shareholding with HUL. Particulars Brands
Total Numbers More than 35
Products
More than 250
Direct retail coverage
600,000
Household reach
80%
Shelf availability
84% across India
Comments Well established brands catering to various market segments Huge umbrella of product family and product line Includes both on and off premise outlets Every 2 in 3 Indian uses HUL product Very deep market reach of products
Brand: Dove
Dove’s started off in the US in 1957; is leading brand of Unilever globally. Dove is marketed in 80
countries worldwide with a range of products from lotions, body washes, skin care and moisturising creams. Dove hair care range was brought to consumers in 1998 in Europe and in 2003 in North America. HUL launched the Dove hair care range in May, 2007 which included shampoos, conditioners, and revitalizing masks. Dove became the fastest growing shampoo brand in the country in a short period of time of around 13 months. The range claims to deliver the moisture promise of Dove. It has a specific formulation of chemicals which are mild and soft to the skin composition. Dove enjoys a star position for damage repair and therapy. Dove has hair care products that repair damage to the hair. The new Zero Damage System range includes ‘daily therapy’ shampoo, ‘dry therapy’ shampoo and conditioner, ‘breakage therapy’ shampoo, conditioner, serum and hair-mask.
Competitors Market Scenario Product Category: Hair Care The hair care market in India is valued at $200 million with a growth of 3.8% year by year. The hair care market includes 1. hair oils. 2. shampoos. 3. hair colorants & conditioners. 4. hair gels. Shampoos The shampoo market carries a value of Rs 4.5 billion with market penetration level of only 13% in India. Shampoos are available in the form of shampoo bottles of different volumes as well as
8ml sachets. Sachet makes up to 40% of the total shampoo sale. The shampoo market in India is divided into: Cosmetic Anti-dandruff More than 50% of the population uses soaps for hair care. The shampoo penetration is only 30% in metros. The major players in the today’s shampoo market are HUL, and Procter & Gamble.
Shampoo market share 2010-11
HUL
22.7% 46.2%
users (13% market penetration)
ITC L'oreal India Others
11.5%
Total Market Size = 157. 3 million shampoo
Dabur
HUL Market share = 46.2% Dove’s share in HUL shampoo segment = 21.8%
Dove shampoo users
= 157.3x0.462x0.218
CavinKare 6.2% 7.2%
3.7%2.5%
P&G
= 15.8 million users
Context Indian hair care is divided into categories
Hair oil Shampoo/conditioners,
styling products,
herbal remedies and
hair-dyes and colors.
Sachet sales contribute approximately 40%,. Hair care and shampoos targets upper middle class, middle class and upper class rural customers. Market is expanding to lower class too. Main consumer categories targeted are women. The usage of shampoo in Indian society has evolved with increasing rate. Today average usage in Indian population comes out to be2-3 times a week. Use of conditioners is still mostly in the super premium segment. Indian women require more shampoo as compared to western women because of thicker texture, longer average. Awareness counts for about 90% in urban areas giving 80% of total consumption whereas; in rural areas awareness counts for about 80% which is for the remaining 20% of consumption. The growth of different classes in accordance to annual household incomes are shown below---
Customer Main benefits provided to customers by DOVE shampooi are - shine, health, strength, anti-dandruff and herbal. The top three most market covering brands Sunsilk, Dove and Clinic are produced by HUL. The company holds a 46.2% market share in the Indian shampoo industry. HUL earns almost 8% of its revenue from the sale of shampoo products of sunsilk, dove and clinic. Unlike the competition by P&G’S PANTENE, Dove has been positioned to suit customer preference andthus result in capturing market and be a mojor player in this area. Dove defines its market as ‘real women’. No supermodels and actresses are used in advertisement campaigns. Dove gives an emotional and personal touch by showing ‘actual impact of usage’ on ‘real women’. Dove has used an exclusive and original segmentation strategy by focusing on mainly the customers. Spending patterns are shown as below:
SWOT Analysis Strengths 1. Product quality and product variety: Dove offers five varieties of shampoos that cater to various hair problems which Indian women face. The new technologies researched by Dove (micro serum and fiber actives) nourish hair and provide extra care to damaged hair. Dove has now transformed into a Therapy for hair. The prices of dove shampoos are at par to the other shampoo brands like Pantene, Head & Shoulders and L’Oreal. This had lead to higher volume sales for the company. 2. Marketing strategy of Dove:
Dove is promoting its products by using the “R eal Beauty Campaign”. These campaigns make real women as their super models and f ocuses on real
beauty of women widening the stereotype view of beauty. Thus, Dove focuses on emotional selling proposition and is gaining popularity in its target segment.
Weaknesses: 1. Feedback available on internet forums : Some of the product feedbacks on internet forums claim that dove leaves the hair oily after wash and the serum in shampoo does not get washed from hair which makes the hair brittle.
Opportunity: 1. Growing market opportunities: From the available data the middle class population has increased from 18% in 1995 to 41% of total population in 2005. This is expected to further grow till 43% of total population in 2015. The emerging strength of middle class in India also shows an expected growth in the market potential for shampoo industry. 2. Expansion opportunities: Shampoos for colored hair from L’Oreal and Garnier Fructis are available in the market. But, no such shampoo is offered by Dove. Dove can utilize its brand image to launch a shampoo for colored hair. 3. High product adoption ratio: Within 15 months of its launch Dove had become the fastest growing shampoo brand in the country. Majority of the women, who tried Dove, appreciated the product. So, Dove should try to attract more first time users. One of these attempts is the dove samples available on “Cheapfree.com”.
Threat: 1. Intense Competition from other brands: The shampoo industry is highly competitive. Pantene, Head and Shoulders and L’Oreal are the prime competitors for Dove shampoo. Dove had already faced the situation of price-wars with Pantene in 2004. 2. Sharing potential market with herbal shampoos: Indian shampoo users still feel that shampoos contain chemicals that damage hair. So, herbal shampoo brand like Vatika, Nyle and Himalaya are preferred in comparison with normal shampoos.
STP Analysis Segmentation Market segmenting is dividing the market into groups of individual markets with similar wants or needs that a company divides into distinct groups which have distinct needs, wants, behavior or which might want different products & services. According to Philip Kotler, “Market segmentation is the sub dividing of market into homogenous subsection may conceivably be selected as a market target to be reached with a distinct marketing mix. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private. The concept of market segmentation was first proposed as an alternative market development technique in imperfectly competitive markets that is, in markets where there are relatively few competitors selling an identical product. Where there are lots of competitors selling identical products, market segmentation and product differentiation produce similar results as competitors imitate your strategic approach more quickly and product differentiation approaches meet market segment needs more closely. With an increasing proliferation of tastes in modern society, consumers have increased disposable incomes. As a result, marketers have sought to design product and service offerings around consumer demand (market segmentation) more than around their own production needs (product differentiation) and they use market research to inform this process
Since there a large number of competitors in the shampoo market selling almost identical products that have almost similar attributes and properties market segmentation should be devised for Dove shampoos.
The figure shows the types of segmentation taking into account various criteria. The relevant differentiators applicable to Dove shampoo is mentioned below. Demographic
Age
Sex Level of education Social Class
Geographic Psychological
Psychographic
Benefits sought Behavioral
Product usage
Media usage
The target consumers would be the age class from preteens to old age. It is commonly observed that there is no much differentiation in the usage patterns in relation to age even though the attribute in the shampoos that is sought might vary within different age groups Shampoos are used by both men and women although in varying degrees and frequency Dove is a premium shampoo primarily targeted at educated middle class consumers Social Economic classes from B1 particularly the upper middle class and high income groups would be likely to afford and be aware of the product. The primary consumers would be the Urban middle class and above. It would not be affordable for rural markets It tries to change the psychology of an average looking women that she can look equally beautiful. Some consumers have the perception that the chemicals in the shampoo render the Hair dry. The moisturizer concept can be used to address this Consumers hope to derive a number of benefits like Dandruff control, Hair Therapy, Oil control through shampoo usage The products are used on an average of 2 to 3 times per week among almost all age categories with a slightly higher frequency for dandruff control The media usage of the target customers would be magazines newspapers and TVs so that communication efforts can be directed to these channels to cater to the prospective consumers
The insight provided by the market segmentation should be used in conjunction with past data to initiate the process of STP which in turn would facilitate the marketing plan.
Targeting The main target market is upper middle class and premium class people (higher socio economic group). It targets the Indian young women and focuses on real beauty of women widening the stereotype view of beauty. The targeting strategy can be presented as division of three aspects: Age, Sex and Lifestyle. The age group segment of 17-50 years old women (mainly youngsters, Teens and Pre-Teens) who are socially active with or without job and belong to the premium section of the society.
Women
Age: 17-50 years old
Lifestyle:(socially active,Premium class)
Dove shampoo has a potential market at low end consumers; hence it has started to focus on base of the consumer pyramid (retailing small sachets).
Positioning 1) Point of Parity (POPs) POPs are generated by the needs of category membership and are desirable by the consumers. These are to stand up against the advantage of PODs of the competitors and thus build a strong consumer base for the product. Dove shampoo is available in different sizes in order to fit the consumer budget .It focuses on Indian hair problems and hence available for different hair types like Intense care for repairing intense problem of hair fall, Dryness Care for reducing dryness and roughness that can be caused due to daily exposure to hostile condition etc. These parities help to take care the needs of the customers as well as better connect the products and the consumers. The POPs can be summarized as:•
•
•
•
Available in different sizes Available for different hair types Almost at the same prices Focuses on Indian hair problems
2) Point of difference (PODs)
i) Relevance: Target consumers must find the POD personally relevant and important. For Dove hair care products they position the features as essential to save normal damage that can happen to hair. It ’s not just a
shampoo it’s a therapy that repairs your hair & enhances the real beauty in you . Dove Shampoo has
positioned itself as a product of premium quality. ii) Distinctiveness: Target consumers must find the POD distinctive and superior. When entering a category where there are established brands, the challenge is to find a viable basis for differentiation. Dove comes with features to provide care for preventing damage to hair, reduce dandruff and to arrest normal hair fall. They create distinctiveness by helping consumers who already have the problems associated hair with unique solutions developed outside India (and successfully tested). iii) Believability: Dove claims it is not just a shamp oo it’s a therapy that repairs your hair & enhances the real beauty in you which give an emotional selling proposition. It does not use celebrity rather makes regular women to be its super model which is just different from the strategy used by Pantene shampoo(P&G) where they make of bollywood film stars like Sushmita Sen, Katrina Kaif etc. This helped the Dove shampoo better relate to the young women and the targeted customers. Dove shampoo claimed to make hair three times stronger as well as smoother and softer than other shampoos available in the market. The PODs for the Dove Shampoo can be summarized as:•
•
•
•
Three times stronger, smoother & softer hair. Focuses on emotional selling proposition It’s not just a shampoo it’s a therapy that repairs your hair & enhances the real beauty in you. It does not use celebrity rather makes regular women to be its super model.
Positioning Statement
To
women (age: 17-50) (Target group and need)
is
widening the stereotype of beauty
Dove (Our product brand)
(Single most important claim)
because
beauty is beyond age, size or shape.
(Single most important support)
among all
premium shampoos
(Competitive frame)
Marketing Action Programs Product
Product Variety – Five varieties of Dove shampoos are available in the market. These treat various hair problems like split ends, hair fall, dullness and dryness of hair. 1. Dove Hair Fall Rescue: As per the researches by Dove, on an average a woman looses 100 strands of hair in one day. Dove has innovated ‘Dove hair Fall Rescue’ to reduce the hair fall from 100 to just 2.
2. Dove Intense Repair: Dove Intense Repair makes the hair stronger by repairing accumulated hair damage which is the prime reason for hair fall and hair breakage . 3. Dove Daily Shine: Hair get damaged daily due to the pollution and improper care. Dove Daily Shine guards hair from daily damage and “Makes Normal Hair Beautiful”.
4. Dove Dryness Care: Dove Dryness Care has been especially formulated to provide soft smooth hair with less fly. 5. Dove Dandruff Care: 20% of shampoo market, nearly 186 crores is only for anti-dandruff shampoos. Dove has designed “Dove Dandruff Care” that treats dandruff with the combination of ZPTO and micro-moisture serum.
Quality1. Rich delicate foam 2. Pleasant fragrance 3. Remove dandruff efficiently 4. Have moisturizing effect
Features: Dove has developed a superior range of hair damage repair solutions. It was possible only because of the successful researches of Dove that brought a change in the technology for shampoos. 1. Fiber-actives 2. Patented Micro-Moisture Serum 3. ZPTO for Dandruff treatment Brand Name - Dove’s logo is an outline of the bird “Dove” representing nurture and care. Packaging - is quiet thoughtful and attractive. Sizes- Available in sizes of 8 ml; 100 ml; 200 ml and 375 ml
Price PRICE (INR) Dove Hair Fall Rescue Dove Intense Repair Dove Daily Shine Shampoo Dove Dryness Care Dove Dandruff Care
8ml 3
100ml 64
200ml 117
375ml 205
3
64
117
205
3
64
117
205
3
64
117
205
3
69
134
215
Place: Distribution Channel: For dove, HUL has 2.8 mn distinct outlets with directly servicing 1 million stores and 7000 stockists and distributers.
The schematic diagram of the distribution channel followed by the Hindustan Liver Limited is as follows:-
Dove SHAMPOO(HUL)
CFA
STOCKISTS
CSD
RETAIL OUTLET
MODERN TRADERS
CUSTOMERS
CUSTOMERS
CUSTOMERS
Sales & Distribution Network of Hindustan Unilever (HUL )
A marketing channel is a tool for the movement of goods from producers to consumers. It plays an important role in decreasing the time, place, and possession gaps resulted due to the separate goods and services from the people who need and use them. A number of key functions taken care by the members of the marketing channel like forward flow of activity from the company to the customers like goods and backward flow from customers to company like order, Payment etc. Hindustan Unilever transfers the finished goods to Carrying and Forwarding Agents (CFA). Stockists receive the goods from respective CFA. Stockists then in turn indirectly deal with the Retail outlets from where consumers get the desired product according to their convenience. This is how the HUL reaches to consumers. On an average each Stockiest caters to 700-900 retail outlets of the city. CFA can be classified into 2 types: 1) With investment. 2) Without investment. The without investment CFA are mere the Forwarding agents and act as the transporter to the company.
Then depending upon the type of products, sales, turnover and the number of retail counters a stockist is dealing with, the company has classified the stores into: 1) Super Value Stores 2) Smart /FLO 3) Unicare 4) Vijeta The stockist apart from retail outlets deals with Modern retail outlets like shopper stop, pantaloon etc. The stockist also supplies the goods to CSD Canteens and bills them for the same and the difference in the amount is reimbursed by the company
Sales force behind the Distribution channel The successful functioning of the distribution channel depend upon having a good and dedicated sales force. In the case of HUL (in a particular region) the sales are coordinated by Area sales manager (ASM), Activation Manager (AM), and a Territory Sales In charge (TSI). These people are working on behalf of HUL and are a Link between the stockist and the company. The goods moves to the stockists go-down by the company’s Truck. The stockist then appoints a (Re Stockist Salesman) RSSM who is required to collect the orders & payments from the retail outlets. The delivery is made by either cycle or through a van depending upon the size of the order. The lead time for delivery from the company is 1 day. The orders are also placed online using the CRM software of Unilever called “UNIFY” Evaluation/ Selection of Channel Members Based on the factors like the investment capacity, number of retail stores covered, appropriate Sales force, infrastructure etc., the stockists are evaluated and are selected by the company. Company’s policy is to work in advance payment mode. This is to ensure that the there is no delay in fulfilling the demand of the consumers and sufficient stocks are available to cover the entire range and categories of Dove shampoos.
Promotion From 1995 to 2007, DOVE used to target young Indian population with the projection of its brand aiming at ‘perfect’ female population. The brand earlier portrayed its main theme for ‘perfect’ women as role models. Main objective was to form a brand image of leading and ‘best’ brand for beauty products and
other personal care products enriching the skin with glow and maintaining beauty of beautiful women. Advertising Mission:
In 2008 mission of DOVE changed from increasing sales among beautiful women to concentrating over all age women without any categorization on the basis of looks. Its mission now stated –“to make women feel more beautiful every day by challenging today’s stereotypical view of beauty and inspiring women to take great care of them .” Money: The stage in PLC is ‘augmented product stage’ where this product has come up with sensitive augmented benefits like- damage therapy for hair and intense therapy for hair care .
Market share:
Dove enjoys the market share of 46.2% of total shampoo users of Indian population. Total shampoo users= 13% of 1.22bn=15.8 cr HUL users= 46.2 % of 15.8 cr= 7.29cr DOVE users=21.8% of 7.29cr=1.58cr Message: Message generation and selection: as a result of surveys and research it was found that90% of all women 15-64 worldwide want to change at least one aspect of their physical appearance (with body weight ranking the highest). 67% of all women 15 to 64 withdraw from life-engaging activities due to feeling badly about their looks (among them things like giving an opinion, going to school, going to the doctor). 61% of all women and 69% of girls (15 to 17) feel that their mother has had a positive influence on their feelings about themselves and their beauty. 91% feel the media and advertising need to do a better job of representing realistic images of women over 50. 97% believe society is less accepting of appearance considerations for women over 50 compared to their younger counterparts, especially when focused on the body. Nearly 60% of women believe that if magazines were reflective of a population, a person would likely believe women over 50 do not exist. 87% of women believe they are too young to be old. Message execution:
Message is executed by various advertisement strategies that no more included beautiful and slim models but the actual users- average looking woman. It launched ‘Dove Campaign for Real Beauty (CFRB)’ as its advertising campaign. It included following as its parts at different time periods to create awareness about the recent changes1) Daughters’ campaign: this was a sub campaign under CFRB which focused on young teenage girls who are sensitive about the way their looks are evolving with age. In the TV commercials and audio visuals young girls with different looks and different perceptions about their looks (spotty, fat, dull, pale, dark) were showed along with them gaining confidence as they look different and de-relating looks with self esteem or glamour. 2) Evolution is a campaign: it captured one of the first online- focused spot by any company. It derived its budget from daughter’s campaign. It aimed at providing as much exposure as
possible to women through online means. 3) Dove self esteem fund: it included inspiring advertisements during major live events like Super Bowl where women were inspired to value the way they look and the way they perceive their looks. 4) Study ‘voice’: in voice, dove was advertised to gain attention of urban class as a premium product. Thus main strategy was shifted from concentrating over the product to concentrating over the target customers- women of all ages and size. The message to be spread among them was that ‘each woman is beautiful, irrespective of her age or size.’
Media:
Major media types used in advertisement campaigns are
Print media Tv media Online media: www.campaignforrealbeauty.com is the website available for woman for their information and cast their votes on the questionnaire given. Online dialogues are also brought up through blogs and discussion boards, research studies about beauty, reading articles and opinions of the users. Billboards: Dove placed mobile billboards in major cities. Each billboard challenged women's notions of beauty by encouraging them to cast their votes online.
Sales promotion: activities related to sales promotion included
Free trial packs which were distributed along with newspapers to have a larger reach to the population for creating high level awareness.
Being a premium brand, DOVE has never been using coupons or samples as its promotional strategy. It positions itself as a urban (upper) class brand amongst HUL hair care brands. It formerly targets working class and upper class women. Thus providing cash refund offers or price packs, samples or free trial packs can harm its standard and image in the mind of consumers .
Implementation Budget
Table – Forecast for the marketing Expenditure In millions INR Sales of Dove Shampoo Media Advertising Salary (Sales team) and Administrative Expenses Sales Promotions Interactive marketing Brand/PR sponsorship Total Marketing Expenditure Marketing Expenditure as a percentage of sales
Quarter 1 1013.45 50.17 (33%) 38 (25%)
Quarter 2 1055.00 44.31 (28%) 39.56 (25%)
Quarter 3 1098.26 41.18 (25%) 41.18 (25%)
Quarter 4 1143.29 39.44 (23%) 42.87 (25%)
33.44 (22%) 31.65 (20%) 12.16 (8%) 18.99 (12%) 18.24(12%) 23.73 (15%) 152.02 158.25 15% 15%
32.94 (20%) 21.41 (13%) 28.01 (17%) 164.74 15%
34.3 (20%) 24.01 (14%) 30.87 (18%) 171.49 15%
Activity Schedule: Activities Planned Promotional campaigns at Kitty Party groups Sponsoring events in Girls Colleges Experience Dove Campaigns at Malls in cities Launch online hair help portal(Promotion) Advertising Campaign #1 Advertising Campaign #2 Market survey – To find out brand/ product awareness Collaborate with e-bay for selling Dove shampoos online Workshops for self-esteem
Duration of the Activity Sponsoring 100 events per year in key metros for publicity through word of mouth Sponsor around 15 events over the year 5 such events in malls spread in various zones in the cities
Budget in INR 20,000* 100= 20,00,000
Ongoing - Hair experts in Dove should answer the queries daily To be aired for 3 months starting – 15th Oct 2011 To be aired for 9 months starting – 15th Jan 2012 To be conducted 3-4 months later
1,00,00,000
1,00,00,000
Within the next 3 months
4,00,00,000
Every 4months
15,00,00,000
3,00,000*15=45,00,000 85,000*5*5*20=4,25,00,000
15,00,00,000 10,00,00,000
Financial Projections: Current financial position calculated:
Average usage per consumer = 2.3 times a week Volume per usage = 8 ml (approx) Weighted Price per usage of shampoo= Rs. 4.2 No. of dove users = 15.8 million
(reference page 4)
Revenue earned = 55% of total revenue (assumed excluding distributor’s wholesaler and retailer margin + adv expenses) Yearly Revenue generated = 2.3x4(weeks)x12(months)x4.2x15.8x0.55 = 3678.99 million INR
Present Scenario:
Dove Revenue in million rupees 4000 3466.62
3500 2987.32
3000 2521.66 2500
2343.79
2000
Revenue in million rupees
1500 1000 500
Data monitor: HUL annual report
0 2007
2008
2009
2010
Proposed Plan:
Market growth over previous year = 3.8% HUL’s growth rate over previous year = 5.3%
Projected dove shampoo users = (157.3x1.038) x (46.2 x 1.053) x (21.8) = 17.31 million users Yearly revenue projected
= 2.5x4(weeks)x12(months)x4.1x17.31x0.55 = 4309.36 million INR
Projected revenue from sales 5000 4309.35912
4500 4000 3500
3466.62
3000 2500
in million INR
2000 1500 1000 500
Growth % = 17.13%
0 2010
2011
New venture With a growth rate curving upward, the Indian hair care market is going through a major paradigm shift. There is such huge potential that major Indian manufacturers are now relaunching hair care brands. The change is visible at two levels —consumer behaviour and marketers trying to grow the market by introducing new product categories and services. Men are fast emerging as a separate consumer category in a market traditionally dominated by women. The change in the buying pattern includes men looking for care and styling products that cater to their specific needs. A growing number of men go for shopping on their own with more income in their hands to be spent on personal care products due to demographic features such as the rising number of singleoccupancy households, as consumers delay committing to marriage and children. The proposed plan is to enter into a new market segment i.e. men. There is a huge potential for this segment as inferred from the survey given. APPROPRIATENESS of men’s new market segment:
Mild and moisturizing combo composition (pH=6)
Hair care is meant for men as much as it is meant for female population.
CFRB can support Men in a substantial way as men are also sensitive about their looks as verified by. Men consider anti-dandruff as an important attribute in a shampoo to be cared about more than women.
How to tap this new market segment:
Include men (average looking, not celebrities) into advertisement campaigns.
Create awareness of advantages and rationale for dove products to be used by men.
There is enough value proposition in the product hence there could be a potential opportunity to cater the men’s segment.
Dove has already introduced its men’s segment in US .
Annexure: Market Survey We have done a market survey of 53 people at IIMK. Based on their response we have obtained the following data: 4%
Dove
17% none
H&S 21%
23%
2 to 3 times 51%
28%
3 to 4 times
Pantene 15%
17%
> 4 Times
Clinic all clear
24%
Others
Shampoo usage per week
23%
Shampoo Brands usage Damage therapy
17%
Softness
36% yes
Dandruff removal
24% 36%
64%
Gloss and Shine
Shampoo Attributes importance
26%
no
19%
Price ustification of Dove sham oo
Cost
19% Yes
Advertisement
49%
Reference 23%
32%
Product Value
Influencing factor on buying decision
32%
Should Dove go for Men's Segment?
No Indifferent
Findings: 1. General usage of shampoo per week is 2 to 3 times by majority (51%) of users. Average usage taken into the calculations of current financial position is 2.3 2.
HUL and P&G are the major players in shampoo market for the premium segment users. DOVE and PANTENE are major competitor brands and have maximum market coverage in today’s date.
3. Most important attribute considered for using a shampoo is dandruff removal followed by softness of hair. 4. Majority of the users are satisfied with Dove’s current pricing. Rationale: As DOVE covers a working and upper class target segment the sachets and bottles are priced at one of the highest in shampoo market. Market penetration into lower class and rural segments is intentionally kept untapped due to brand image of dove to be maintained as a premium brand. 5. Advertisement is major influencing factor into surge in the sales of dove with launching of real beauty campaign as its new advertisement strategy. 6. The review favors (49%) Dove’s venture into men’s market . The impression created over the minds of consumers is positive towards dove due to dove implicating – ‘mild and moisturizing’ brand.
References http://360.datamonitor.com www.scribd.com http://www.hul.co.in/Images/HUL_Annual%20Report_%202010-11_tcm114-268010_tcm114268010.pdf http://www.dove.in/ www.mckinsey.com/ http://economictimes.indiatimes.com/hindustan-unilever-ltd/finishedproducts/companyid-13616.cms
