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 lea d to higher volume sales for the company. 2. Marketing strategy of Dove:
Dove is promoting its products by using the “Real Beauty
Campaign”. These campaigns make real women as their super models and focuses 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 o ily after wash and the serum in shampoo does not get washed from hair which makes the hair brittle. Opportunity: 1. Growing market opportunities: opportunities:
From the available available data the middle middle class population population has
increased from 18% in 1995 to 41% of total population in 2005. This is ex pected to further grow till 43% of total population in 2015. The emerg ing strength of middle class in India also shows an expected growth in the market potential for shampoo industry. 2. Expansion opportunities: opportuniti es:
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 gr oups 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 mar ket 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.
Types of segmentation Demographic: Age: 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 Sex: Shampoos are used by both men and women although in varying degrees and frequency Level of education: Dove is a premium shampoo primarily targeted at educated middle class consumers Social Class: 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. Geographic: The primary consumers would be the Urban middle class and above. It would not be affordable for rural markets Psychological : Psychographic: 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
Benefits sought: Consumers hope to derive a number of benefits like Dandruff control, Hair Therapy, Oil control through shampoo usage Behavioral: Product 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 Media usage: 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
Targeting: The main target market is upper m iddle 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. 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 str ong consumer base for the product. Dove shampoo is available in different sizes in or der 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 bette r 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. W hen 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 shampoo 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 t he Dove shampoo better relate to the young women and the targeted customers. Dove shampoo claimed to make hair t hree 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.
