Prepared by: Karan Radia
Submitted to: Dr K S Prasad (Faculty, GHPIBM)
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PREFACE
As per the curriculum prescribed by the Sardar Patel University, the students of management are required to prepare a report as a part of their ‘Business Policy & Strategic Management’ course. The objective behind preparing this project report is to relate the management subject taught in the classroom to their practical application and to get insight into practical situation. The topic of the project –“Dove” I have prepared this project report on the basis if the information gathered from various sources which include site visits, websites. This project allowed us to acquaint with the effort and knowledge necessary to business plan setting various components of organizational strategies for effective, efficient and adaptive operations in dynamic business environment.
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ACKNOWLEDGEMENT
Studying ‘Business Policy & Strategic Management’ between four walls of classroom is surely an incomplete circle. I would like to thank Dr. Y.C. Joshi (Director of Department) for providing me an opportunity to undertake the project. I would like to thank Dr. K.S. Prasad for providing valuable guidance throughout preparation of project. We are also thankful to our friends and classmate for providing us Technical Knowledge and support for my project. Last but not least I would like to thanks everybody who has been associated with my project at any stage but whose name does not find a place in this acknowledgement.
Regards, Karan Radia
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Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 80 years in India and touches the lives of two out of three Indians. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit. The Company has over 18,000 employees and has an annual turnover of INR 31,425 crores (financial year 2015 – 16). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of €53.3 billion in 2015. Unilever has 67.2% shareholding in HUL.
Unilever is a unique company, with a proud history and a bright future. We have ambitious plans for sustainable growth and an intense sense of social purpose.
Unilever is committed to supporting sustainability and providing our consumers around the world with the products they need to look good, feel good and get more out of life.
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Five key priorities provide the foundation for our brand’s campaigns. Read some examples of how different brands are upholding these principles.
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Our oral care brands Signal and Close-Up encourage children to brush their teeth day and night for optimal dental health. We also partner the FDI World Dental Federation, supporting oral health programmes around the world Brands such as Omo and Persil have helped parents believe the unconventional philosophy that Dirt is Good. Children learn through play, and mud spatters and grass stains can easily be removed with effective laundry products Unilever also partners the World Food Programme and launched the Together for Child Vitality initiative to bring our expertise in nutrition to children in some of the world’s poorest countries.
Our Flora/Becel margarine brands have been scientifically proven to help reduce cholesterol levels Vaseline has launched the Vaseline Skin Care Foundation, providing research into skin conditions and support for people affected by them Lifebuoy soap has long had a presence in developing markets around the world, and its campaign to promote handwashing with soap was celebrated by 200 million people across 53 countries in 2013.
Dove’s Campaign for Real Beauty uses real women instead of models in its advertising campaigns. The brand has also launched the Dove Self Esteem Fund which educates and inspires millions of young women Our Sunsilk hair care brand has partnered some of the world’s leading hair specialists to co-create formulas tailored to treat conditions such as hair-fall, frizz, limp locks and uncontrollable curls Close-Up toothpaste provides an affordable oral care solution for consumers in developing markets, allowing them to take care of their dental health and closer with confidence.
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We’re aiming to grow our business while reducing our environmental footprint and working across the supply chain for every brand to do so Our Laundry brands, including Surf, Omo, Persil and Comfort, have launched the Cleaner Planet Plan together, encouraging consumers to change their laundry habits to reduce water and energy consumption Our Lipton tea brand backs sustainable forest management projects in Africa
Many of our brands contain ethically and sustainably sourced ingredients that are independently certified Among these are Lipton tea, which is accredited by the Rainforest Alliance, and Ben & Jerry’s ice cream, which includes Fairtrade vanilla and almonds in various flavours Around half our raw materials come from agriculture and forestry, so we’re working towards making our key crops 100% sustainable.
Our Corporate Purpose states that to succeed requires "the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact."
Conducting our operations with integrity and with respect for the many people, organisations and environments our business touches has always been at the heart of our corporate responsibility.
We aim to make a positive impact in many ways: through our brands, our commercial operations and relationships, through voluntary contributions, and through the various other ways in which we engage with society.
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We're also committed to continuously improving the way we manage our environmental impacts and are working towards our longer-term goal of developing a sustainable business.
Our Corporate Purpose sets out our aspirations in running our business. It's underpinned by our Code of Business Principles which describes the operational standards that everyone at Unilever follows, wherever they are in the world. The Code also supports our approach to governance and corporate responsibility.
We want to work with suppliers who have values similar to our own and work to the same standards we do. Our Supplier Code, aligned to our own Code of Business Principles, comprises eleven principles covering business integrity and responsibilities relating to employees, consumers and the environment.
The Dove brand of personal care products currently includes everything from shampoos to deodorants to facial washes. For the purposes of this assignment, I will focus on advertisements for the Dove Beauty Bar, the original product of Dove which has been around since 1957. The brand has a strong focus on “purity, moisture, cleanliness, natural beauty, and touchable skin” (Elani). The brand promises softness and improvement of the skin and advertises confidence as the consumer benefit (Dove.com).
The Dove brand, founded by Lever Brothers, began in 1957. When the brand first began, they sold beauty soap bars. They have since expanded to produce a wide range of personal care products including “body wash, deodorants, body lotions, facial cleansers and shampoos (
and conditioners” (Dove.com). Currently Dove’s “commitment to delivering real results is mirrored in [their] advertisements. For over 40 years, *they’ve+ been using real women in *their+ ads” (Dove.com), but the brand has not always marketed itself in this way.
Dove TV Advertisements- 1950’s In 1957, the first advertisement for the Dove beauty bar ran, boasting its “1/4 Cleansing Cream”. The comparative ad states that ordinary soaps leave the skin feeling dry, but Dove “creams your skin while you wash”. The ad encourages users to try an experiment themselves by cleansing half of their face with ordinary soap and the other half with Dove soap to notice the difference in how velvety and smooth their skin feels.
Dove Print Advertisements- 1960’s In the 1960’s, Dove’s advertising also places a stronger emphasis on pampering and targets itself more directly toward women. The introduction of a new pink colored Dove bar with its “heavenly new fragrance” brings about new advertising. This advertisement depicts a woman taking a bubble bath with her hair tied in a pink bow, chatting on a pink telephone, and holding up her pink Dove beauty bar. The emphasis on Dove’s ability to cream the skin while you wash is brought down to the fine print of the ad; The emphasis is no longer on the )
functionality and differentiation of the beauty bar. Instead, the advertisement builds a brand personality of being a feminine and indulgent product with which to pamper oneself. This femininity is made clear through the use of pink throughout the ad and through the copy— “darling’, “tickled pink”, “head over heels”, “heavenly”.
Dove Print Advertisements- 1960’s Another 1960’s advertisement also builds upon the brand personality as being feminine and flirty. The majority of the ad is taken up by a soaped up, bathing woman. Her body is in a relaxed and sexy position as she playfully blows on the soap bubbles in her hand. This ad, much like the previous, places the emphasis on Dove as a brand to use to feel like “the most pampered, the most spoiled, girliest girl in the world” (Saddleton).
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Dove Print Advertisements- 1970’s This 1972 print advertisement takes a new approach, asking “What part of you ages first?” This copy-heavy ad discusses dryness as a factor that makes skin look older and harsh soaps as being the culprit for dry skin. The ad then asks the reader to try an experiment reminiscent of its older ads: “put your bar of soap away and wash daily for 4 weeks with Dove”. Throughout the ad, Dove is described as “gentle as rainwater” and able to make skin “softer, smoother, and younger-looking”. This advertisement uses the same side by side comparison technique as used by Dove in past advertisements. This ad, however, is set up like an article, offering scientific information as to why Dove is better and gentler than soaps and why it will deliver better results. The emphasis on this ad is anti-aging—to moisturize skin as a way to keep it from looking “wrinkled and old”.
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Dove TV Advertisements- 1980’s This 1985 Dove ad asks women across America to take the Dove 7 Day Test by switching from their ordinary soap to Dove for seven days. In this ad, Dove is described as being “one thousand times better than soap”. The woman in the ad says “Soap dried my skin out. Dove made it feel soft” and the ad concludes with the line, “Dove makes you feel prettier because it makes your face feel so soft and touchable.” In this ad, the emphasis is on Dove making you prettier due to it’s moisturizing effects. This contrasts later ads from Dove’s campaign for Real Beauty which focus on beauty as coming from the inside. However, the use of challenges or tests for the viewer to try continues to be a running theme throughout Dove’s advertisements.
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Dove TV Advertisements- 1990’s This 1991 advertisement shows a focus group in progress. Participants conduct an experiment by using test strips to determine the harshness of different soaps. It begins with a focus group participant saying “I consider myself an Ivory girl” and after testing Ivory, saying “That’s very disappointing… I don’t want to be an Ivory girl anymore. I want to be a Dove girl now”. This advertisement uses the same comparison technique as Dove used when they first began advertising. The ad is believable because it is real women doing a real experiment and giving their true, uncensored opinions.
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Dove TV Advertisements- 2000’s A 2006 Dove advertisement shows the evolution of a photograph of a real woman after she has her hair and makeup done, lighting adjusted, and after she is heavily photoshopped before her face is printed onto a billboard. This advertisement is part of Dove’s Campaign for Real Beauty. The tagline is “No wonder our perception of beauty is distorted”. The ad functions as a way to show how unrealistic and unattainable beauty is as depicted in magazines and on billboards.
Dove TV Advertisements- 2013 A brand new 2013 Dove ad shows camera-shy women hiding their faces away from the camera in comparison to young girls eager to show their faces. The ad asks, “When did you stop thinking you were beautiful?” and encourages women to “be your beautiful self”. These types of advertisements do not sell any particular Dove product but rather sell the brand as one that cares about and supports women’s issues like self-
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esteem and confidence. Dove’s active support of these issues gains them a lot of respect as a brand. Their focus, seemingly, is on the consumer, not on the products.
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A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization.
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This Environment is very important from company’s point of view because marketing decisions are strongly affected by development in the political environment. It consists of law, government agencies and individual in a given society. Any Political decision can affect market. Some political factors which affected the Dove group, • • • •
Raw materials – Agriculture Environmental Laws Waste management Import and Export laws etc Testing cosmetics on animals
The economical environment consists of factors that affect consumer purchasing power and spending patterns. Market must pay close attention to major trends and consumer spending patterns. Some factors affected the group are as follow, • • •
Excise Tax and Sales Tax Domestic currency fluctuation etc Economic recession makes customer switch brands
Cultural factors strongly affect how people think and how they consume. This environment is made up of institutions and other forces that affect society’s basic values, perception, preferences and behaviours. Some factors are as follow, • • • • • •
Loyal customer base Increasing population – increasing market size Pollution free working Global trend – Decline expected The image of beauty among youth is distorted Campaign to remove gender bias
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Today technological advances are perhaps the most dramatic forces affecting today’s marketing strategies. Forces that are creating new technologies are also creating new product and market opportunities. Need to keep track and monitor the technology in order to keep up with our competitors and monitor this will help us in avoiding and missing new products and opportunities. • • •
Modern equipments Investment in RND Safety measures
Environmental factors refer to ecological and environmental aspects such as weather, climate, and climate change. Climate change is a hot topic these days and organizations are restructuring their operations thus giving space to innovation and concept of Green Business.
Legal embraces legislative and regulatory constraints or changes. For Example, legal changes might include restriction on mergers and acquisitions or new tax treatment of profit earned overseas. On other hand, legal changes can provide opportunities, as for example the Liberalization of Foreign investment in India. At one side customer Safety also become important factors, recently Goderaj more focused on customer and employee safety within the organizations.
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What makes SWOT particularly powerful is that, with a little thought, it can help you uncover opportunities that you are well-placed to exploit. And by understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unawares. More than this, by looking at yourself and your competitors using the SWOT framework, you can start to craft a strategy that helps you
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distinguish yourself from your competitors, so that you can compete successfully in your market.
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Dove contains 1/4 moisturizing cream
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Zero pH levels
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Beauty should be for everyone
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Strong social media presence
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Free publicity and unconventional strategies and excellent drive for advertisements
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Wide range of loyal customers
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Flagship product of HUL with strong brand awareness and appeal through personal touch
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Highly priced for the Indian Market
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Targets only the upper middle class women and it gives an idea of not letting the ordinary women enjoy the touch of beauty
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Critics objected the use of women as objects of their campaign
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Low awareness in the Men body care product line
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Can tap into the market developing beauty products for men
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Continuous improvement is what Dove has been working on and should carry on with it as well
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Men’s participation in the body care increase from 2011-12
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The fashion world is becoming more resistant to using emaciated models. Dove could collaborate with people in the fashion industry
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Variety of products of the same category in the market; so tough competition from Olay, Nutrogena & Nivea
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Copy by the competitors(Olay total effects).
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Not so popular in non-metro cities & the product is only for higher and upper middle class group
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June, 2005’s firming campaign took even fat women in the ad, so it might give it a slight aspect that is a brand of fat girls
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The objectification of women and hence the risk of being rebuked by hardcore feminists
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Undermining the aspirational essence in itself is a big risk. Dove is completely eliminating the reference group which kills the aspirational element from the whole ad campaign
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Sustainability of campaign in long run
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Risk of exposure in social media
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The general electric Matrix was developed by GE with the assistance of the consulting firm McKinsey & Company. The model identifies the market position and profitability of different business units based on their market attractiveness and business unit strength. This is more advanced form of Growth matrix model compared to BCG Matrix.
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Analyze the current portfolio of business units and their position compared to others Develop growth strategies for each individual business units by adding new products and businesses to the portfolio Decide the business units to be sold or invested more to exploit future opportunities Here the two dimensions used are Market Attractiveness and Business Unit Strength. The market attractiveness refers to the attractiveness of the market or the industry in which the business units operate.
Market Size Market growth and growth potential Market profitability Competition Market Predictability New Opportunities Macro environmental and economic factors Business Unit Strength refers to the competitive position of each of the business units. It specifies the strength, market share, market position of the Business units. #"
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Assets and market under the Business Unit Relative brand strength compared to others Market share and growth in market share Brand Loyalty Distribution network and population reach R&D, Patents and Innovations More investment and access to capital
Based on these two dimensions, one 3×3 matrix is formed to be used as a GE Model. The matrix is shown below with the respective strategic decisions.
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It leads to four strategic decisions based on the outcome of this model. • • • •
Invest Protect Harvest Divest
Investment is made in the market on the basis of the existing market attractiveness in terms of growth. Also it is affected by the respective market share of an organization.
Protect condition refers to the situation where a business doesn’t want fresh investment rather it is willing to have the security of the given investment. So that it does not result in losses.
Harvest refers to the situation where the business wants to generate cash out of the given investment (i.e. it does not want stock accumulation).
Divest refers to the condition where a business organization has finally decided to sale an undertaking or a part of its undertaking. Divestment is the last option which a business organization can undertake.
As per the GE model well comes in first stage of Growth because of the Dove still want fresh investment to grow in its verticals.
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The brand Dove has so far evolutionized from a mild soap to range of cosmetics products in 2017. Dove has extended its product range in most of the areas of self care. In the future it is set to focus on innovation and research to enhance and improve its products and product range. Dove was held to explore and assess the impact of current and future franchise trends on businesses, investors, financial institutions, technology, government’s entrepreneurial drive, and at large on society, besides honouring those who have done the best in the franchise sector. So, it’s clear that the Dove interio has good future and growth for next years.
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https://www.hul.co.in/ http://www.business-standard.com/article/management/dove-flieshigh-on-new-route-109101500017_1.html http://www.adageindia.in/marketing/news/hindustan-unilevertakes-on-itc-in-the-soap-market/articleshow/50250352.cms http://economictimes.indiatimes.com/magazines/brandequity/doves-meteoric-rise-from-30-to-4-in-the-most-trustedbrands-list-decoded/articleshow/49995248.cms
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