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Dove Soap Report Essay Sample

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Dove Soap Report Essay Sample

1.1. INDUSTRY OVERVIEW:

Fast moving consumer goods are products are products that are sold quickly and generally consumed at a regular basis at a relatively low cost. India’s FMCG sector is the fourth largest sector in the economy. FMCG sector is an important contributor to India’s GDP.

FMCG principal constituents are household care, personal care and food and beverages. The FMCG industry primarily involves the production and marketing operations of fast moving consumer goods.

This sector is classified into following segments:

Food Products and Personal Care make up to two-thirds of the sector’s revenue. Over 2006-2011, the sector’s revenues posted a Compound Annual Growth Rate (CAGR) of 17.3 %. The Urban Segment is the largest contributor (66.5%) to this sector with over two –thirds of total revenue. 33.5 % of revenues are acquired from the Semi-urban and rural segments.

1.2. MARKET PLAYERS UNDER FMCG IN INDIA:

FMCG market in India operates with three well defined set of players:

1) Foreign players: the one who are present through their subsidiaries.

Eg: Unilever, P&G

2) Major Indian players: with established national presence.

Eg: Dabur, Godrej consumer products

3) Regional: small domestic players who are present in a few regions of country

Eg: Ajanta, Anchor

1.3. MARKET SIZE:

The Indian FMCG sector has a market size of $13.1 billion. It is expected that FMCG market will reach $33.4 billion in 2015.

1.4. FMCG GROWTH LADDER AND FUTURE OUTLOOK:

Over the next two year, FMCG marketers will look to shift their creative and media strategies to fully capitalize on the online opportunity and make digital media a bigger priority in their brand strategy. According to CII report on FMCG road map 2020, FMCG industry is expected to grow at a base rate of at least 12 percent annually to become INR 4000 billion industry in 2020. Major growth drivers of the FMCG sector in India are:

Demand side drivers- constant GDP growth, increased consumer income. Systematic drivers- favourable changes in government policies, infrastructure development. Supply side drivers-growth of modern retail, newer product categories meeting consumer needs, low labour costs.

2. SOAP INDUSTRY IN INDIA

India today is one of the largest producers of soaps in the world. Indian soap market is about Rs 41.75 billion and is growing at the rate of 7%. Still, the per capita consumption of toilet bathing soaps in India is low as compared to other countries.

Per Capita consumption of soap in countries

Countries
Per capita consumption in Kgs
India
0.8
U.S.A
6.5
China
4.0
Brazil
1.1
Indonesia
2.5

Soap segment is one of the biggest FMCG categories in the country. Bathing and toilet soaps contribute to about 30% to the soap market. There are 38 companies in India manufacturing soaps. Major players include HUL, Reckit Benckiser, Godrej Consumer Products, Henkel Spic, Wipro, Procter & Gamble and Nirma. Some of the major brands in the soap segment are Lux, Dove, Hamam and Lifebuoy, Cinthol, Shikakai and Godrej No. 1 (GCPL), Camay (P&G) and Dettol (Reckit Benckiser), Santoor (Wipro). In the December quarter of year 2012, HUL’s Lux and Lifebuoy were India’s leading soaps with a market share of 14.4% each Santoor had 8.8% and Dettol 7.8%. The Soaps are made available for the purchase by the Indian consumers at about 5 million retail outlets. The pervasive new form of selling points in organised retailing exposes consumers to wide variety of attractive brands. When soap was first introduced in India at around start of 19th century, all the brands focused more on dirt removal and cleaning. The soap brands in India have evolved much over the years and currently brands are positioned on several new platforms for example Lux has positioned it in such way that it makes women feel transformed, on top of the world it inspires every woman to feel irresistible and confident in her own skin every day.

3. HINDUSTAN UNILEVER LIMITED

3.1 HISTORY AND INTRODUCTION:
In 1931 Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form Hindustan Unilever limited (HUL) in November 1956. HUL is India’s largest FMCG Company with a heritage of over 80 years in India and touches the lives of two out of three Indians. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice creams and water purifiers, the company is a part of the everyday life of millions of consumers across India.

Different categories of HUL products:
Water Purifier- Pure it
Personal Care- Fair & Lovely, Pond’s, Vaseline, Dove, Clinic Plus, Sunsilk, Pepsodent, Axe. Home Care- Surf Excel, Rin, Wheel.
Food and Drink- Brooke Bond, Bru, Knorr, Kwality Wall’s

KEY FACTS: HINDUSTAN UNILEVER LIMITED

4. DOVE
4.1 OVERVIEW OF DOVE:

First launched in the US in 1957.
One of the leading brands of Unilever globally.
Presence in 80 countries worldwide with a range of superior products from bar, lotions, body washes, shampoos, face care and creams. Since 1993, Indian women have relied on dove for beautiful for beautiful skin. DOVE PRODUCT RANGE:

DOVE BAR & SKIN CLEANSING
Dove got women to experience the ‘real’ Dove difference, with the Face Test campaign. Thousands of women across the country put their soap, and Dove, to the test. They all had the same answer – Dove made their skin soft.

DOVE HAIR CARE RANGE
Dove launched its hair care range in India in 2007, and became the fastest growing shampoo brand in the country. It’s highly conditioned formulation delivers the moisture promise of Dove. The range includes Daily Shine, Dryness Care, Dandruff Care, Hair Fall Rescue, Intense Repair Therapy, Nourishing Oil Care and Color Rescue.

DOVE ANTI-PERSPIRANT DEODORANTS
The New Dove Deodorants with ¼ moisturising cream. Choose from 3 variants – Original, Silk Dry and Clear Touch, for visibly softer, smoother underarms, 24-hr protection from sweat and odour.

DOVE LOTIONS & CREAMS
Pamper your skin with the unique rich moisturisers and pure silk formula of Dove Lotions and Creams.

4.2 DOVE BAR:

Dove bar contains 1/4 moisturizing cream so it doesn’t dry skin like other soaps can. Leaves skin feeling softer and smoother.

Dove Bar variants available are:
Dove beauty cream bar,
Dove fresh moisture beauty bathing bar,
Dove gentle exfoliating beauty bathing bar,
Dove pink beauty cream bar,
Dove go fresh touch beauty cream bar,
Dove go fresh emerging beauty bar etc.

5. STP ANALYSIS OF DOVE

5.1 SEGMENTATION OF DOVE:

Dove segments the market as given below:
Dove focuses on women of all age groups.
Women who have high purchasing power (premium class) and belongs to upper middle class. 5.2 TARGETING OF DOVE:

Highly focuses on working women as they don’t have much time to take care of themselves, so it uses its USP of double of double benefits (soap and moisturize ) to attract target. 5.3 POSITIONING OF DOVE:

Dove soap is positioned as a personal care beauty product.
Dove positions itself as a mild moisturizing bar with one fourth of moisturizer.

6. DOVE WITH RESPECT TO 4P’S

1) PRODUCT:
Product is anything that can be offered to a market to satisfy a want or need, including physical good, services, experiences events, persons, places, properties, organisations, information, and ideas. Product is a key element in the marketing offering. The Dove soaps can be classified as Nondurable goods because they are purchased frequently. Further on the basis of shopping habits Dove soaps can be classified as Staple convenience goods since buyer routinely purchase it.

Product name- Dove soap
Product features- Dove contains ¼ of moisturizing cream.
– Neutral pH
Product variants-
Dove beauty cream bar,
Dove fresh moisture beauty bathing bar,
Dove gentle exfoliating beauty bathing bar,
Dove pink beauty cream bar,
Dove go fresh touch beauty cream bar,
Dove go fresh emerging beauty bar etc.

Dove soap available in sizes of 75 gm and 100 gm.

2) PRICE:
With the entry in Indian market in 1995, it was priced at Rs.50 Dove than changed its strategy and lowered its prices to Rs. 28 –thereby attraction upper middle class Indian consumers.

Price bundling-
Dove cream beauty bathing bar- 100 gm of pack 3 for Rs.158
Dove exfoliating soap- 75 gm of pack 3 for Rs.162
Dove exfoliating soap – 75 gm of pack 6 for Rs.266

3) PROMOTION:
Advertisements- Following are the promotional campaign used by Dove: Clean while you wash
Dove 7 days test
Give up half you face, take the dove face test
Guessing games to the streets
Real beauty campaigning in 2008
Print media, TV and also radio used for the promotion.

4) PLACE:
Physical distribution-
For Dove, HUL has 2.8Mn distinct outlet with directly servicing 1 million stores and 7000 stockists and distributers. It is more popular in Metropolitan cities.
Distribution channels HUL’s products, are distributed through a network of 2500 redistribution stockists covering around one million retail outlets. The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores. HUL provide tailor made services to each of its channel partners. 2,000 suppliers and2000 distributors serve HUL’s 37 factories reaching 6.3 million outlets. HUL provide tailor made services to each of its channel partners. 2,000 suppliers and2000 distributors serve HUL’s 37 factories reaching 6.3 million outlets.

7. COMPETITORS
7.1 COMPETITORS AND THEIR STP
1) NIVEA-
Nivea is a global skin- and body-care brand that is owned by the German company Beiersdorf. The company was founded in 1882.The NIVEA brand has enjoyed market success for over 100 years and is one of the world’s largest skin care brands today. NIVEA stands for values ​​like trust, security, and reliable care for all skin types. In the soap category it has three variants:

Nivea cream soft creme soap
Nivea lemongrass and oil creme soap
Pearl and beauty creme soap

STP analysis:
Segmentation- Nivea focuses on both men and women.
– Premium class and upper middle class. Targeting- Targeted as all skin care product.
Positioning- positioned itself as a “gentle care product”

SWOT analysis:
Strengths- Strong brand image
-Strong distribution network weakness-
Opportunity- Entry in men’s segment by focused products
Threats- competition
-Popularity of other skin care brands

2) NEUTROGENA-
Neutrogena comes from Johnson and Johnson stable that has its headquarters in Los Angeles, California. It is a skin care brand in the US that offers the guidance of a dermatologist, who is employed in the company. Neutrogena products are manufactured and marketed over 70 countries. The brand has created a foothold in their daily Skincare use products, especially those designed for anti-aging. The products are high in quality, and are priced reasonably, keeping in mind the budget for regular Men and women who desire high quality products for their skin needs. Neutrogena facial cleansing bar-This glycerine-rich facial bar contains no harsh detergents, dyes or hardeners. It removes excess oil and then rinses clean without leaving any pore-clogging residue. Neutrogena naturals face and body bar-Avocado and Olive Oil bio nutrient rich bar gently cleanses and conditions skin. Neutrogena® Naturals Face & Body Bar gently

Cleanses, conditions and softens your skin without over drying. This avocado and olive oil bio nutrient rich bar nourishes skin. Specially formulated for face and body and fragrance-free. Facial Cleansing Bar for Acne-Prone Skin-Cleansing Bar for Acne-Prone Skin is pure and gentle cleansing for clean, clear, healthy-looking skin. This glycerine-rich facial bar contains no harsh detergents, dyes or hardeners. It removes excess oil and then rinses clean-without leaving any pore-clogging residue.

Its non-medicated formula won’t over dry skin.

STP analysis-
Segmentation- focuses on both men and women.

Targeting- targeted as all skin care product.

Positioning-A product which is best for the skin as it is recommended by Dermatologists.

3) FIAMA DI WILLS-
The gel bathing bar contains skin conditioners with moisture lock giving soft moisturized and youthful skin round the clock.

Variants-
Fiama di wills la fantasio
Fiama di wills mild dew
Fiama di wills exotic dream
Fiama di wills pure rio splash
Fiama di wills clear springs

STP analysis:
Segmentation- Premium and upper middle class men and women
Targeting- Young, modern, aware customers who are confident of themselves and seek indulgences that make them feel alive and beautiful. Positioning- Positions itself as in India’s first gel bar with skin conditioner.

7.2 COMPARISON WITH COMPETITORS

PRODUCT
Product name- Dove soap
Product features- Dove contains ¼ of moisturizing cream. – Neutral pH
Product variants-
Dove beauty cream bar,
Dove fresh moisture beauty bar,
Dove gentle exfoliating beauty bar,
Dove pink beauty cream bar,
Dove go fresh touch beauty cream bar,
Dove go fresh emerging beauty bar
Product name- Fiama Di Wills soap
Product features- Transparent Gel Bathing Bar
Product variants-
Fiama Di Wills exotic cream
Fiama Di Wills la fantasia
Fiama Di Wills mild dew
Fiama Di Wills pure rio splash
Product name- Nivea Crème Soft
Product features-
Cleansing abilities with caring qualities
Product variants-
Nivea Crème soap bar with Almond Oil
Nivea Vitamin Crème

PRICE
75 gm- 44 Rs.
bundling-
Dove cream beauty bathing bar- 100 gm of pack 3 for Rs.158
Dove exfoliating soap- 75 gm of pack 3 for Rs.162

75gm – 36 Rs
Price bundling-
125 gm carton (3 pcs) at the price of 162 and 168 Rs.

75gm – 36 Rs
Price bundling-
75 * 4 gm pack at the price of 125 Rs

PROMOTION
Advertisements-
Promotional campaign used by Dove:
Clean while you wash
Dove 7 days test
Give up half you face, take the dove face test
Guessing games to the streets
Real beauty campaigning in 2008
Print media, TV and also radio used for the promotion

They have employed brand ambassadors for the promotion of their soap brand.
ITC is promoting fiama di wills soap bar as NOT JUST A SOAP BAR IT’S A SHOWER GEL.

PLACE
For Dove, HUL has 2.8Mn distinct outlet with directly servicing 1 million stores and 7000 stockists and distributers. 2500 redistribution stockists covering around one million retail outlets. The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores. 2,000 suppliers and2000 distributors serve HUL’s 37 factories reaching 6.3 million outlets.

Fiama di wills uses the vast distribution network of ITC Companies. Being an old player in the market it has many distribution point through which it made Fiama di wills soap available to all the leading retail stores and super markets. Nivea being a product of German based company initiated its distribution in Germany It then came in India and launched creme products first and then a range of products including NIVEA CREME SOAP, and used its own distribution network for placing NIVEA CREME SOAP in INDIA.

8. SWOT ANALYSIS FOR DOVE

STRENGTH
Moisturizing feature
Brand image

WEAKNESS

OPPORTUNITY
Growing market for moisturizing products.

THREAT
Competition

9. PRODUCT DIFFERENTIATION

1) Feature – Dove soap comes with 1/4th moisturizer milk thus it provides soothing effect to skin and leaves skin with a smooth finish after use. Dove also has a Neutral ph. i.e. between the range of 6.5 to 7.5 therefore it is very mild on skin 2) Performance Level – Dove possesses a very high performance level and in the only soap bar which leaves the skin moisturized 3) Style – It possesses a unique curvy design which provides it a distinctiveness compared to other soap bars.

10. RECOMMENDATIONS

1) Market development strategy – Dove can develop its market by going on into other segments. For example: Dove now is focusing only on women it can also launch products for men segment as there is a huge market there also with huge opportunities. 2) Dove in the future may try to expand its market share by launching new products which are related to skin care so that people can easily relate dove to those products. The products in which dove can enter are as follows: Sunscreen lotions

Cosmetics
3) As the target is upper middle class and premium class it is better to go with the price structure what it follows now.

11. BIBLIOGRAPHY

http://www.ijirset.com/upload/2014/january/45_FAST.pdf
http://simconblog.wordpress.com/2013/12/07/fmcg-sector-in-india/ http://www.hul.co.in/

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