Marketing PlanDove Hair Care

Products

About Dove Dove is a personal care product produced by Unilever. Dove came

into existence in 1957 as a beauty soap bar. It was clinically proven to be milder for dry sensitive skin.

Unilever is a large global company with many brands in its portfolio. Each brand is customized in such a way so as to cater to the tastes and needs of the consumers. The company has a wide range of products in foods, beverages, cleansing agents and personal care segments.

Dove in India

Dove entered the Indian market as a soap care brand 15 years ago and in the past two years, it has been extended to the body wash and body cream categories.

The Indian market is now led by skin but there is already a lot of awareness about the Dove Hair Care range in the country.

Dove hair care has moisturizing milk just like its soaps and body washes. Dove launched its hair care in May 07 and now it’s the no. 1 in modern trade.

Purpose of the Marketing Plan

This marketing plan will provide direction for all relevant members of the organization and will be referred to and updated throughout the year.

To provide a structured approach that ensures that the marketing department considers all the relevant elements of the planning process which could otherwise be missed if a more rushed approach is adopted.

Examining both the internal and external marketing environments, can identify both opportunities and threats to the business and is a core component of the plan.

We have conducted an online survey to figure out our customer base and if it has changed since the last few years. Our plan will focus on coping with any of these changes and help us formulate future policies.

The Survey

3%

69%

10%

17%

Age Groups

Under 1818-3030-45Above 45

58%

42%

Gender of respondents

FemaleMale

Under 18 18-30 30-45 Above 4533.33%

44%

10%18%66.66&

56%

90%

82%

Age & Gender

Male Female

34%

23%

24%

19%

Income Groups

Less than 3 LakhsBetween 3-5 lakhsBetween 5-10 LakhsMore than 10 Lakhs

53%

30%

17%

Monthly expenditure on hair

Less than Rs. 1000Between Rs. 1000-2000More than Rs. 2000

7%

13%

20%

27%

33%

Importance of Hair Care

12345

16%

13%

62%

9%

Usage of shampoo per week

EverydayOnce a week3 times a week5 times a week

27%

40%

6%

6%

16%

2%4%

Other Products Re-spondents Use

Medicated/Special Hair Oils

Conditioners

Mousse Treatment MasksSerum OthersNone

19%

25%

18%

9%

9%

16%

3%

Hair Problems

DandruffHair FallDrynessFrizzinessDamage due to ColoringSplit EndsNo Problems

8%

25%

20%10%

9%

7%

8%

4%

8%

Shampoo Comparison

All ClearDoveL'OrealHead & ShouldersPanteneSchwarzkopfSunsilkGarnier FructisOthers

8%

20%

26%

30%

16%

Complaints with dove

Complaints with doveOther It is expensive for daily useNot too many op-tions for menI don't understand which dove product to buyMy hair are damaged

89%

11%

Respondents having used dove haircare

range

YesNo

28%

7%

16%5%

14%

12%

18%

Range of Dove Shampoo Used

Hair Fall RangeColor Rescue RangeIntense Repair RangeNourishing Oil RangeDandruff Care RangeDryness Care RangeDaily Shine Range

38%

3%4%

16%

39%

Value for money

AverageBadBelow AverageExcellentGood

18%

3%

5%

20%

54%

Quality of Products

AverageBadBelow AverageExcellentGood

15%

1%2%

31%

50%

Availability

AverageBadBelow AverageExcellentGood

24%

34%

41%

1%

If the Respondents would try Other Products

Never. I love Dove.Yes I wouldn't mind trying it if it claims to have special qualities.I always experiment with Shampoos to find what suits me.Other

47%

11%3%

4%

36%

If the Respondents like Dove Advertisements

I love them!They are boring.They are repulsive.I've never seen one.I don't care!

Situational AnalysisCurrent Products

Hair Fall Rescue - Treats Hair fall from the roots.  It also moisturizes your hair to reduce tangling which causes breakage.

Color Rescue – Enriched with Fiber Actives and Micro Moisture and helps treat damage caused by coloring the hair.

Intense Repair - Gently repairs damaged hair to correct the problem of split-ends.   Nourishing Oil Care - It has revolutionary Vita Oils that gets easily absorbed to replenish

essential oils.   Dandruff Care - Contains clinically proven ZPTO formula that cures dandruff  Dryness Care - Contains Micro Moisture Serum that gently restores your hair’s lost softness

Hair care and shampoos targets upper middle class, middleclass and upper class rural customers.

The usage of shampoo in Indian society has evolved with increasing rate. Today average usage in Indian population comes out to be 2-3 times a week.

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.

Situational AnalysisCurrent Target Market

Situational AnalysisCurrent Distributor Network

Level - 4

Level - 3

Level - 2

Level - 1 Dove (HUL)

C & F

Stockists

CSD Retail Outlet

Modern Traders

The major players in the today’s shampoo market are HUL, and Procter & Gamble.

Situational AnalysisCurrent Competitors

Financial Analysis(Hindustan Unilever Limited)

Personal Products categories comprise Hair Care, Skin Care, Oral Care, Deodorants and Colour Cosmetics. The Personal Products category grew by 17.3% during the year, led by strong underlying volume growth.

Market for shampoo in India grew by almost 3.8% in year 2010 to reach sales of INR 4.5 billion.

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.

The Company had a strong year, strengthening its position by becoming the market leader in the hair conditioner category along with maintaining its leadership in shampoos.

Dove continues to lead the premiumisation agenda and has consistently gained market share.

The Company continued its focus on market development by investing strongly behind the nascent but emerging high potential hair conditioners segment, thus growing ahead of the market.

The details of expenditure on scientific research and development at the Company’s in-house R&D facilities eligible for a weighted deduction under Section 35(2AB) of the Income Tax Act, 1961 for the year ended 31st March, 2012 are as under:

› Capital Expenditure: Rs. 1.88 Crores› Revenue Expenditure: Rs. 22.91 Crores

(BGC Matrix) Cash cows are units with

high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. We believe Dove Shampoos fall in this category as the Indian customer still hasn’t put Hair Care top on the agenda. However, shampoos have become a necessity and they are doing very well in the market.

Dogs are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share. The new shampoo and conditioner range for Dandruff Care is bound to fall in this category as it has some intense competitors like Head and Shoulders which focus only on Dandruff related problems.

Question marks are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The ‘Intense Repair’ Range is becoming popular however its sales are still not as good as expected. The response of the general audience has been good towards it.

Stars are units with a high market share in a fast-growing industry. The hope is that stars become the next cash cows. Hands down, Dove’s range of Conditioners is selling out in very good numbers. They have been very well received and already have loyal customers who vouch for them every time. Customers have started shelling out cash in order to avoid expensive treatments at salons because they can now get the same results at home.

SWOT Analysis

Strengths

› Product quality and product variety The new technologies researched by Dove

(micro serum and fiber actives) nourish hair and provide extra care to damaged hair.

› Marketing strategy of Dove Dove is promoting its products by using the

“Real Beauty Campaign”.

Weaknesses› Feedback available on internet forums

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› Growing market opportunities

From the available data the middle class population has increased from 18% in 1995 to 41% of total population in 2005.

› 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.

Threat

› 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.

› 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.

Sales & Distribution Network of Hindustan Unilever (HUL)

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

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.

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.

HUL 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

Marketing Objectives

A primary objective is to continue to invest in market development while increasing our lead versus competitors—big or small. A secondary objective is to give value proposition for every-body at the right price.

Over the years, the market has fragmented from the generic kaale ghane baal (dark, thick hair) market to speak about a sharper concept of damage, dryness, breakage of hair. The well-educated,professional category woman is willing to look at these issues.

The opportunity for growth is in both urban and rural markets. The other end of the market, where dove is significantly investing, is shampoo sachets, which is the rural part of it. Close to 60-70% of volumes come from sachet(s).The split in value market share is 60:40 between urban and ru-ral (areas). Dove is willing to continue to grow the lower end of the market as well.

The opportunity is to really get people to consume more. In three words, it is more users, more usage and more benefits. Those are the three fundamental ways around which plans are designed.

Dove’s competitor at rural India is very different from urban India. There are different players in rural India. There are new players that are coming in, Indian companies are coming in.

The hair conditioner business is the market of the future.In many markets,conditioners is: about one-third of the shampoo market. In India, it is virtually next to nothing. This is a 200 crore category today and growing at 40% to 50%.

Dove is running one of its largest consumer connect initiatives — Khushiyon Ki Doli. It allows to go deeper, to villages that are media dark with populations of 5,000 people. Close to 30-40% of rural UP (Uttar Pradesh) is media dark.

Budgeting, Performance and Financial Projections

Table – For the marketing Expenditure In millions INR Quarter 1 Quarter 2 Quarter 3 Quarter 4

Sales of Dove Shampoo 1013.45 1055.00 1098.26 1143.29

Media Advertising 50.17 (33%)

44.31 (28%) 41.18 (25%) 39.44 (23%)

Salary (Sales team) and Administrative Expenses

38 (25%) 39.56 (25%) 41.18 (25%) 42.87 (25%)

Sales Promotions 33.44 (22%)

31.65 (20%) 32.94 (20%) 34.3 (20%)

Interactive marketing 12.16 (8%)

18.99 (12%) 21.41 (13%) 24.01 (14%)

Brand/PR sponsorship 18.24(12%)

23.73 (15%) 28.01 (17%) 30.87 (18%)

Total Marketing Expenditure

152.02 158.25 164.74 171.49

Marketing Expenditure as a percentage of sales

15% 15% 15% 15%

Performance Analysis:› The performance of Dove has been very good from last

6 months which results as Company's largest profit gaining segment in last quarter. Personal Products momentum was sustained with 16% growth led by strong volume growth in Hair Care and Skin Care. In the Hair category, Dove grew rapidly across shampoo and conditioners, becoming the No.1 Hair Care brand in Modern Trade.

Financial ProjectionsCurrent 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 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

Recommendations.

Discount coupons on cumulative buying helps in promoting sales without harming the sales margins. On dove US’s official website www.dove.us discount coupons are available which could be used for promoting sales in India too.

Dove Men care range is available in Canada only and during the survey conducted one of the findings was that males who use dove want more options.

A huge potential unvanquished market for dove in India is baby shampoos. The baby care range which is already available in Canada.

On head & shoulder’s official website free samples are available which are aimed at converting more people trying the product into more number of buyers and loyal customers.

These days all brands associate themselves with social causes to build the image of the brand as a socially aware and active, responsible, reliable and conscious one. Dove could use this technique to show its interest in Indian society.

Various brands these days issue newsletter to customers who are registered. This helps in knowing the customer and maintaining a database of customer’s personal information.

Brands like Lancome, Loreal Paris, Lakme, Sunsilk and others provide gifting options.

Head and shoulders on its website provides comparison with other products to appeal to customers who want to spend their hard earned money on the best available products in a certain price range.

Also available on the websites of Head and shoulders and Pantene are options like Kareena’s secret to beautiful hair and testimony of stars.

In the survey too, many people said they found the advertisements a bit boring and they did not like them. So using a popular face to promote the brand is a good option.

Loreal Paris’ and Sunsilk’s websites provide where to buy and eBuying options to facilitate comfortable purchasing.

Herbal shampoos market is totally different and established in India because there are customers who want to use natural products and no chemicals on their hair and in this domain Nyle herbal shampoo by Cavin kare is faring well. A herbal shampoo and conditioner range could be worked upon to win over this market segment which mainly consists of over fifty population.

Thank You.