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“HIPS FEEL GOOD” — DOVE’S CAMPAIGN FOR REAL BEAUTY David Wesley wrote this note under the supervision of Professors Thomas Gey and Nick Nugent solely to provide material for class discussion. The authors do not intend to provide legal, tax, accounting or other professional advice. Such advice should be obtained from a qualified professional. Ivey Management Services is the exclusive representative of the copyright holder and prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2007, Northeastern University, College of Business Administration Version: (A) 2009-02-24 Kerstin Dunleavy, brand manager for Unilever’s Dove line, was both excited and concerned about her meeting the next morning with Unilever’s senior management. She was about to make one of the most important presentations of her career, one that involved taking the successful re-launch of Dove beauty products to the next level. Dunleavy had already helped mastermind the original turnaround of Unilever’s Dove line, which some believed had already been a career-maker for her. She, however, knew that the real test would come as phase two became operational. Only then would she truly be able to establish her reputation as a premier brand manager in the ultra-competitive beauty industry. Without doubt, Unilever had placed a heavy load on Dunleavy’s shoulders. As she gathered her thoughts, she wondered what the next month would hold as Dove rolled out the second phase of the re-launch in September 2006. She placed a call to her assistant executive brand manager and marketing advisor, Michael B. Allen. “Tomorrow I will be laying out the specifics of phase two of the re-launch,” she reminded him.

Things are looking good right now. The self-esteem issues we have focused on have resonated with our target audience. I want it to continue, but I am not so sure about our next move. I want it to continue in the right way. If the competition copies our strategy, we will just become one of them. Remember that a difference that doesn’t stand out is not a difference. Let’s go over what has happened in the past two years one more time to make sure we understand how we got here.

Allen agreed that societal marketing had both benefited the brand and helped customers feel good about themselves he replied.

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Our business has been to sell products, not to satisfy our customers or cure society’s ills. But now we know that we can do both. As long as we keep listening to customers, there is no reason why we can’t continue to stand out and distinguish ourselves from our competitors.

BACKGROUND Unilever was one of the largest consumer products companies in the world with annual revenues of approximately $50 billion and a staff of 250,000. The company’s product lines were organized into four main areas: Cooking and Eating, Beauty and Style, Healthy Living, and Around the House. Unilever employed a global marketing strategy that was adapted to suit individual cultures and the unique requirements of its subsidiaries. The company’s branding policies had been considerably modified in recent years. In 2004, its “Path to Growth” strategy saw the number of products reduced from 1,600 to 400. The company’s brand strategy was also modified to emphasize product brand names, while a newly designed Unilever logo adorned its packages (see Exhibit 1). Along with the new public image came a new corporate mission. Titled “Vitality,” it proclaimed: We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.1 DEVELOPMENT OF DOVE Dove was originally developed in the United States as a non-irritating skin cleaner for pre-treatment use on burns and wounds during World War II. In 1957, the basic Dove bar was reformulated as a beauty soap bar. It was the first beauty soap to use mild, non-soap ingredients plus moisturizing cream to avoid drying the skin, the way soap can. In the 1970s, an independent clinical study found Dove to be milder than 17 leading bar soaps. Based on the results of that study, the company launched a promotional campaign that highlighted the soap’s mildness. Between 1990 and 2004, Dove expanded its product line to include body wash, facial cleansers, moisturizers, deodorants and hair care products. In 2005, revenues from Unilever’s Dove product line reached $3 billion. COMPETITION The beauty industry was highly competitive with many well-supported brands and products. There were few secrets within the industry, and products were in many ways similar. As such, marketing and communications were as critical to a product’s success as new product development. For example, the Body Shop line of beauty care products emphasized social and environmental responsibility as well as all-natural products, thereby appealing to the psyche of the emotionally influenced buyer. As the importance

1 “Vitality”, Unilever Magazine, Issue 132, 2004, p. 19.

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of situational influences increased, marketers began to shift their emphasis from product-related variables to consumer-related variables.2 Modernizing the Brand Image In 2003, the management of Unilever met to discuss the future of the Dove brand. Even though the company’s growing product line was available in 40 countries, sales of its flagship Dove brand were in decline since market share was being lost to competitors. To understand the reasons for the decline, the company undertook a focused brand analysis under the direction of the Ernest Dichter Institute, a Zürich-based market research firm. The result of the brand audit was revealing. Consumers appreciated Dove both for its natural ingredients and its reliability as a moisturizer. However, on a more emotional level, the brand felt dated and old-fashioned. Although Dove’s brand image did not resonate with consumers, those who used it recognized the quality of the products. For Unilever it was clear that the Dove brand needed a new image, and to that end, management laid out the following targets: • Increase market share through improvement of the brand image • Develop an outstanding marketing campaign • Retain the functional strengths of the brand Dove needed to evolve into a modern and desirable brand, while at the same time standing out against the myriad other products offered by Unilever’s competitors (see Exhibit 2). With that goal in mind, Unilever created a global team under the direction of Kerstin Dunleavy, global brand manager for Dove, to develop a new brand strategy for Dove beauty care products. The Dove Research Study Before setting out to design a new marketing strategy, Dunleavy’s team sought to first understand the relationship of women to beauty, without specifically focusing on beauty care products. They wanted to answer four basic questions: • What do women mean by beauty? • How happy are they with their own beauty? • How does a woman’s sense of her own beauty affect her well-being? • What influence does mass media and pop culture have on the perception of ideal beauty? To find answers for these questions, the company turned to StrategyOne, a global research firm that worked with experts from Massachusetts General Hospital, the Harvard University Program in Aesthetics and Well Being, and the London School of Economics.

2 A situational influence is a temporary force that influences behavior usually associated with the immediate purchasing environment. Dimensions of situational influence include the time when purchases are made, the physical surroundings, and the emotional state or mood of the purchaser. Where consumers buy are the physical surroundings. How consumers buy refers to the terms of the purchase. Conditions under which consumers buy relates to states and moods.

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Between February and June 2004, StrategyOne surveyed 3,200 women from Argentina, Brazil, Canada, France, Italy, Japan, the Netherlands, Portugal, Spain, the United Kingdom and the United States. The results of the survey were presented in a paper titled, “The Real Truth about Beauty: A Global Report.”3 The report showed a wide disparity between the ideal of beauty portrayed in the media and the perception of beauty as understood by women themselves. The following were the most notable observations. • Only two per cent of women described themselves as beautiful. • 47 per cent said they were overweight — a trend that increases with age. • 68 per cent believed that the media and advertising set an unrealistic standard of beauty

that most women can never achieve. • 75 per cent wished that the media would portray more diverse measures of physical

attractiveness, such as size, shape and age. • 77 per cent said that beauty could be achieved through attitude, spirit and other attributes

that have nothing to do with physical appearance. • 48 per cent strongly agreed with the statement: “When I feel less beautiful, I feel worse

about myself in general.” • 45 per cent believed that women who are more beautiful have greater opportunities in life. • 26 per cent have considered plastic surgery, a result which varied considerably by country.

For example, 54 per cent of Brazilian participants have considered cosmetic surgery. Aside from the perceived need for cosmetic surgery, the results were remarkably consistent from country to country. For Susie Orbach, a feminist psychotherapist and writer who co-authored the report, the problem was clear. She explained: Most of the images we see of women bear little relationship to reality. Overwhelmingly, beauty is defined as tall, thin and young. It is a very limited definition that is presented as the norm, although it is anything but — it excludes most women and encourages them to be unnecessarily self-critical as most of us fall far short of the images of perfection that we are bombarded with daily.4 Based on the results of the report, Dunleavy’s team perceived an opportunity to redefine beauty in a way that had been ignored Unilever’s competitors. The team presented its findings to Unilever’s executive board along with a strategy to re-launch Dove using new and unconventional ideals of beauty. True beauty could be found in many forms, sizes and ages, they explained. Dove had to integrate this idea in its own brand image and spark discussions by attention-seeking campaigns. The team wanted to choose “real” women for the ensuing advertising campaigns, women who were not “treated” via retouching, the type of women one might encounter every day. The functional advantages of a high-quality product were to be retained. At the same time, it was considered essential to differ significantly in the emotional positioning from Unilever’s main competitors. In contrast to competitors such as Nivea, L’Oreal and Garnier, emphasis was not to be placed on perfect looks of top models but on the ethical aspect of beauty. The moral concern was to boost the self-confidence of women. The products were to be derived from this starting point. According to Dunleavy, the brand and not the single products were to be in the foreground. The emotional ties to the target group needed to be strengthened.

3 Nancy Etcoff et al., “The Real Truth about Beauty: A Global Report: Findings of the Global Study on Women, Beauty and Well-Being,” September 2004, available at www.campaignforrealbeauty.com/uploadedfiles /dove_white_paper_final.pdf. 4 “Vitality,” Unilever Magazine, Issue 132, 2004, p. 9.

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Some members of the executive board expressed concern that taking such an unconventional approach to beauty might expose the company to unnecessary risk. After all, if portraying regular women in beauty advertising was such a good idea, why hadn’t anyone tried it? Eventually the board decided to support the effort noting that the risk was outweighed by the need to turn around the flagging Dove brand. In Dunleavy’s mind, it was the strength of the supporting data presented in the StrategyOne report that finally swayed the vote of the more reticent board members in favor of the real women campaign. THE CAMPAIGN FOR REAL BEAUTY The campaign was launched with a mandate from Unilever to increase revenues by a lofty 80 per cent, an undertaking that would be supported by an advertising budget of approximately $27 million in Europe alone. Unilever worked closely with the advertising firm Ogilvy & Mather to re-brand Dove. The “Campaign for Real Beauty” began in earnest in September 2004, with the launch of the website campaignforrealbeauty.com. Women went online to cast their votes and join the beauty debate in chat rooms. Confessions, philosophical questions and rants showed that nerves were being struck.5 Statements such as “My mommy taught me to believe in myself and to feel good about who I am” were prominently displayed on the site, along with opportunities for potential customers to share their views about the concept of beauty (see Exhibit 3). The main target group was 30- to 39-year-old women, who had not yet tried any skin-firming products. Although the broader target group included any women who used body lotions and creams, Dove expected to experience significant gains among women over age 30, a time when signs of age appear, skin is increasingly less firm and cellulite forms. Based on the results of the StrategyOne research, the Dove team believed that beauty could be reflected in different shapes, sizes and ages, and that “real beauty can be genuinely stunning.” Dunleavy explained:

With the Dove beauty philosophy, we’re not saying that the stereotypical Claudia Schiffer view of beauty isn’t great — it is, we simply want to broaden the definition of beauty.

That definition was reflected in a new brand mission statement, “to make more women feel beautiful every day, by widening today’s stereotypical view of beauty and inspiring women to take great care of themselves. The Advertising Campaign: What Is Beauty? When Unilever launched its ground-breaking advertising campaign in Europe, the core message stated, “No models — but firm curves.” Ads featured a group of women of different ages, shapes and racial backgrounds, dressed only in bras and knickers, animated and laughing among themselves and clearly happy to be themselves. Models for the ads were chosen by well-trained assistants in a “street casting,” in order to achieve a great acceptance among the observers. When the campaign was later rolled out in other countries, different models were chosen to reflect local cultural differences. Some ads asked viewers to make a choice. For example, one featured a 96-year-old woman named Irene and asked “wrinkled or wonderful?” followed by the question “Will society ever accept the beauty of old 5 “Dove's Flight of Fancy,” Marketing Magazine (Ireland), April 2006, www.marketing.ie, accessed April 16, 2007.

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age?” Another ad featured a heavy-set woman named Tabatha, and asked “oversized or outstanding?” followed by the question, “Does true beauty only squeeze into a size 6?” (See Exhibit 4 for two other ads in the series.) At the campaignforrealbeauty website, Internet users could cast votes for the ads or join online debates in the forums section. The company supplemented traditional television and magazine-based beauty advertising with outdoor advertising, such as billboards, posters and signs. Billboards specifically provided a presence that made it easy for journalists to report about the campaign (see Exhibit 5). When the campaign was later rolled out in the United States, an electronic billboard was erected in Times Square that asked bystanders to text message their responses to a beauty question posed by the Dove ads and see their votes counted instantly in the debate. It was the first-ever outdoor mobile marketing event in the United States. The promotional mix was supported by an unprecedented amount of public relations that built as Ogilvy & Mather coaxed the news media to cover the launch of the campaign and to create debate around Western society’s concepts of beauty. The objective was to provoke public attention with a controversial message. To foster discussion, Unilever partnered with American Women in Radio and Television, a non-profit organization that sought to advance the impact of women in the electronic media by educating, advocating and acting as a resource to its members. “It was to be the talk of town,” noted Sebastian Munden, managing director for Home and Personal Care of Unilever. The Results Early results were dramatic. Massive media coverage that included as many as 800 newspaper and magazine articles, many of which featured high-profile debates, helped to nearly quadruple sales of Dove-branded products. Market share increased in six European core markets from an average of 7.4 per cent in 2003 to 13.5 per cent by the end of 2004.6 Traffic on the company website quickly reached 4,000 visitors a day. In 2005, a new brand audit by Millward Brown, a market research company, showed a significant image shift. The brand gained attributes such as “open,” “active” and “self-confident,” and existing characteristics for the skin-firming series, such as “fun,” “energetic” and “confident,” strengthened further (see Exhibit 6). The turnaround was no less than remarkable. Dove was seen not only as a top-quality brand but also as an industry expert in cosmetics and beauty. Moreover, for the first time, the brand was able to break into the premium segment of the market. For its part, Ogilvy & Mather won the Grand Effie Award from the New York American Marketing Association in 2006, for the “most significant achievement in marketing communications.”7 Realbeauty Many girls developed low self-esteem from insecurities about their looks. As a direct result, some failed to reach their full potential later in life. To help these girls, Dove simultaneously established a “Self-Esteem Fund” to support local initiatives. “We’ve made it mandatory that every country launching the campaign links up with an association that’s in line with the Dove Self-Esteem Fund,” explained Dunleavy.8 For

6 “Medaillenflut für deutsche Agenturen, Horizont,” October 6, 2005, p. 34. 7 “Dove’s ‘The Campaign for Real Beauty,’ Created by Ogilvy & Mather Wins the 2006 Grand Effie Award,” Company Press Release, June 8, 2006. 8 “Vitality,” Unilever Magazine, Issue 132, 2004, p. 11.

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example, one program titled “uniquely ME!” partnered with U.S. Girl Scout troops to help build self-confidence in girls aged 8 to 14, largely in economically disadvantaged communities. Unilever also sought to address eating disorders in young females, which research had shown to be directly linked to low self-esteem. The company focused on girls between the ages of 8 and 17. Unilever hired Ogilvy & Mather to develop a 45-second commercial for the 2006 Super Bowl football championship, considered by many to be the most important television advertising event of the year. The commercial suggested ways adults could make a difference in how girls felt about themselves. “All throughout the spot, the voices for the members of the Girl Scouts of Nassau County Chorus from Long Island, New York can be heard singing a version of True Colors.”9 In Canada and Germany, similar projects were launched under the name “Body Talk,” “a program to inform and educate young schoolgirls about perceptions of beauty, helping boost their self-esteem.”10 Further ideas for projects were collected in seminars with teachers in order to include Body Talk messages effectively into teaching subjects. Another activity was a mother–daughter workbook, designed by the U.S. Girl Scout troops, in cooperation with the team that developed the original “Real Truth about Beauty” report. The free workbook could be used together by mother and daughter, and supported mothers in their efforts to encourage communication in the family and to help their daughters improve their self-esteem. Finally, Unilever needed to improve communication about Dove products so that statements in advertisements appeared more sincere. Next Steps Dunleavy’s mind was working at warp speed. The more she thought, the more questions she had. While the first steps of the re-launch were clearly successful, she knew it would not be enough to satisfy Unilever. She sincerely believed that customer-based marketing was paramount. Unilever had quality, well-positioned products. Keeping them there would be the real test. The next step of the re-launch was set to commence in September. Dunleavy wondered how to maintain the brand’s momentum while continuing to take advantage of the stubborn portrayal of flawless beauty by competitors. She also wondered whether the competition would try to imitate Dove’s success by launching similar campaigns. In the world of marketing, the reward for success is typically more and better competition. What should Dove do to prepare for the next phase? CONCLUSION Dunleavy and Allen joked about how much was riding on their next series of strategic moves. “I believe we are doing what needs to be done,” noted Allen.

9 “Super Bowl Spot Launches Multi-Tiered Effort Encouraging Girls to Feel More Confident, Recognize Their Unique Beauty,” Campaignforrealbeauty.com, January 27, 2006, available at http://sev.prnewswire.com/advertising/20060127/NYF01927012006-1.html, accessed August 28, 2006. 10 “How Real Curves Can Grow Your Brand,” Viewpoint Online Magazine, Ogilvy.com, April 2005, available at http://www.ogilvy.com/uploads/koviewpoint/dove.pdf, accessed August 28, 2006.

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Our customers are our customers. That may sound a little silly, but I know that we are making a difference beyond just making good products. We make good products and we sell them in a manner that is fair and honest. Our promotional work has been cutting edge and I believe it has changed the industry’s approach to the portrayal of what is real beauty. Let’s listen to the research and combine it with what we have learned in the past two years. “Tomorrow morning I am going to be asking for some substantial resources to keep this thing going,” Dunleavy added.

We need to be aware of what we need and why we need it. Do me a favor. Be ready with specifics as we lay out the plan. You can brief me later.

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Exhibit 1

UNILEVER LOGO AND SYMBOLS

Sun

Our primary natural resource. All life begins with the sun – the ultimate symbol of vitality. It evokes Unilever’s origins in Port Sunlight and can represent a number of our brands. Flora, Slim Fast and Omo all use radiance to communicate their benefits.

Hand A symbol of sensitivity, care and need. It represents both skin and touch. The flower represents fragrance. When seen with the hand, it represents moisturizers or cream.

Bee Represents creation, pollination, hard work and bio-diversity. Bees symbolize both environmental challenges and opportunities.

DNA The double helix, the genetic blueprint of life and a symbol of bio-science. It is the key to a healthy life. The sun is the biggest ingredient of life, and DNA the smallest.

Hair A symbol of beauty and looking good. Placed next to the flower it evokes cleanliness and fragrance; placed near the hand it suggests softness.

Palm tree A nurtured resource. It produces palm oil as well as many fruits – coconuts and dates – and also symbolizes paradise.

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Sauces or spreads Represents mixing or stirring. It suggests blending in flavors and adding taste.

Bowl A bowl of delicious-smelling food. It can also represent a ready meal, hot drink or soup.

Spoon A symbol of nutrition, tasting and cooking.

Spice & flavors Represents chili or fresh ingredients.

Fish Represents food, sea or fresh water.

Sparkle Clean, healthy and sparkling with energy.

Bird A symbol of freedom. It suggests a relief from daily chores, and getting more out of life.

Tea A plant or an extract of a plant, such as tea. Also a symbol of growing and farming.

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Lips Represent beauty, looking good and taste.

Ice cream A treat, pleasure and enjoyment.

Recycle Part of our commitment to sustainability.

Particles A reference to science, bubbles and fizz.

Frozen The plant is a symbol of freshness, the snowflake represents freezing. A transformational symbol.

Container Symbolizes packaging - a pot of cream associated with personal care.

Heart A symbol of love, care and health.

Clothes Represent fresh laundry and looking good.

Wave & Liquid Symbolizes cleanliness, freshness and vigor. A reference to clean

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Exhibit 2

EXAMPLES OF COMPETITOR ADVERTISEMENTS

Sources: Garnier, Nivea and Jergens (Center for Interactive Advertising, University of Texas, Austin), L’Oreal Communication.

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Exhibit 3

CAMPAIGN FOR REAL BEAUTY ONLINE DISCUSSION FORUM

Source: www.campaignforrealbeauty.com, accessed February 26, 2007.

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Exhibit 4

TICK BOX ADS

Source: Unilever

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Exhibit 5

OUTDOOR ADVERTISING

Source: Unilever

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Exhibit 6

BRAND AUDIT 2005 BY MILLWARD BROWN

Note: Pre-Ads were surveyed from November to December 2003. During/After Ads were surveyed from March to July 2004. Source: Millward Brown International Research, Agreeing Before and After Dove Communications Strategy, “Firming Lotion.”