Centre for Continuing Education Computerized Financial Management AEC – LCA. AV – MEQ VI Course: Marketing Case 1 Dove October 20, 2011 By Joumana Introduction: Dove started its life in 1957 as a beauty soap bar that was clinically proven to be milder for dry, sensitive skin than other leading soaps: half of women have dry skin. In a world of promotion and brand names, Dove provides a pleasantly real option for women who appreciate that beauty comes in all shapes and sizes. Case 1 Dove 1. The market was flooded and jam-packed with beauty products from soaps, body washes, creams etc.
As a result Dove a division of Unilever sales’ began deteriorating in 2004. They were on the dog side of the BCG matrix and needed to come up with a strategy soon. 2. As a result of declining sales, Unilever ‘s management approached their PR agency Edelman to come up with a plan to turn things around, together, they created a campaign that centred on the beauty of women regardless of their age and size, rather than on the product itself. In 2004 The Dove Campaign for Real Beauty (CFRB) was born in England, and it was introduced to the USA in 2005.
They were able to reposition the brand Dove and it moved to the cash cow side of the BCG matrix, thus their sales increased and, their market expanded to include women of all shapes, sizes, color, and age. The campaign has won two Grand Prix Cannes Advertising Awards. 3. With the environment sector booming, they could have used an environmental and sustainable solution for a healthy body and a healthy planet and reduce our footprint, they would need to rebrand and transform their products as eco friendly, or organic with biodegradable packaging, and thrive on this new market segment of eco conscious consumers.
Or they could have done a portfolio analysis and phased out the brand Dove and incorporated it with one of the many other brands that Unilever produces and sells such as Lux soap which has a very profitable and large international market, the cost of doing so would have been less than the advertising campaign, and the savings could have been used in other aspects of the business like R & D 4. Since Dove is a company with a vision of helping people feel good, look good and get more out of life with brands and services that are good for them and good for others.
They used this vision to embark on a trek that normally is a debatable topic in this industry whether beauty alone sells, times were changing and ripe for the picking, they took a huge risk and it worked for them. Not all companies have the staying power to go against the traditional way of marketing beauty products. But Dove saw the opportunity and took it. 5I think the criticism is normal and healthy we are all humans and love to criticize just to make a point.
But no matter what the motives of Unilever/Dove are, the impact of their campaign has had a highly positive and constructive effect on young girls, teenagers and women of all ages. So I welcome the criticism it will bind Dove to continue on this path with integrity and accountability, because they are aware that every move they make is being scrutinized. 6. As a shareholder the only concern I would have regarding the criticism would be the effect it had on the stock value; a decline would concern me, an increase would not affect me. References: http://www. unilever. com/brands/personalcarebrands/dove/index. aspx