We will reveal later that we have decided to develop a green product to be innovative and in sync with Unilever. We need to clarify what is Dove's business. Dove is working on the market of women's personal care. Dove has a large range of products from soaps to shampoos. The key point of Dove's strategy is to have a high level of segmentation to answer to the many needs of the women's personal care market.
We must also recognize that the market share of Dove on the French market is decreasing for the last several years. In 2005, the market share of Dove was 9.75% and in 2008 it was 2.6%. Thus our mission is to create a strategy and a product that will be able to help Dove conquer new market share. This loss of market share can be explained by risky marketing choices made by the brand. The shampoo market is worth 466.4 million Euros in France so Dove must respond to the market needs and develop new products and strategies to regain its position as one of the leaders on the French shampoo market.
-Understanding Consumer Behavior:
A survey was conducted among the population to focus more on the needs of our potential consumers, and to understand their preferences in the shampoo market. The survey first had general questions about their age, the texture of their hair, and their hair color etc, to identify the consumer base. Later the survey offered more specific questions about their tastes: what kind of perfume do you prefer? What is your regular shampoo? Are you interested in Bio shampoo?
The analysis of the responses gave us a more accurate vision of our consumers' needs:
1.75% of the population asked would like to buy Bio shampoos
2.75% prefer the fruity smell, 15 % the flowery smell, and 10% other smells
3.50% of people are more likely to buy a shampoo depending on its price first; packaging and brand come afterwards (25%)
With all the information we collected and all the analysis done on the market, we decided to create a product responding to the consumers needs and to fulfill the strategy of the company. This new product will be called: Smooth Sensation. It will be a Bio product sold in stores, which is quite new for Dove. The smell of the shampoo will be fruity in comparison with the Smoothie fever and the Bio aspect is unique. The packaging will be eco-friendly in order to fight against its contradictory nature in exploiting the Bio development. The name responds to the latest fashion of the smoothie liked by the majority of the population.
-Characteristics of our product: The main characteristics of this Dove product are the Bio & Smoothie inspiration, the fruit smell and the eco-friendly packaging.
-Market segmentation: We target middle class women everywhere in France, who are between 15 and 30 years old. Since our product plays on the natural aspect, most of the women that we target are concerned about environmental issues.
-Attractiveness of the market & competitive position of Dove's product
Attractiveness: There are nearly 15 500 000 potential customers, who have an average monthly income of 2000. The macro-trends on this market are favorable: political stability, good domestic market, and a fertility rate of 2.02.
Tags: French market, market segmentation, competitive position , Consumer Behavio
[...] ( Characteristics of our product The main characteristics of this Dove product are the Bio & Smoothie inspiration, the fruit smell and the eco-friendly packaging. Market segmentation We target middle class women everywhere in France, who are between 15 and 30 years old. Since our product plays on the natural aspect, most of the women that we target are concerned about environmental issues. Attractiveness of the market & competitive position of Dove's product Attractiveness: There are nearly potential customers, who have an average monthly income of 2000€. [...]
[...] We are targeting women: Who are concerned about environmental issues: our brand guarantee the use of natural products that do not hurt the environment who like the feeling of natural elements and fruity sensations with kinds of beauty” - We are using a line-extension brand strategy. This strategy consists in introducing new products that differ from those in the existing line by more than just size and price. In fact, Dove will propose two product lines, the classic with dove therapy, and the new with smooth sensation. [...]
[...] DOVE NATURAL 3,24 CLASSIQUE NATURAL SMOOTH SENSATION BIOLOGICAL SPECIFIC SHAMPOO 7,2 How many units we plan to sell: The turnover of the shampoo market in France is 461.8 million Euros. The market share of Dove is amounting to a turnover of 12 million Euros. Dove has nine products, and on an average one product earns 1.33 million Euros. Dove sells 410000 units of each kind of shampoo ( 000/ 3.24 As Smooth sensation will be offered at 4 Euros, we plan to sell units for the first year, amounting to a turnover of Euros. [...]
[...] - of the population is between 20 and 64 years old, and our target is thus huge. - Life expectancy is 84.3 years for women and this increases the number of customers. - The fertility rate is the highest in Europe ( 2.02 ) and it is a great market to invest in. BCG Matrix Based on our survey and some information found on the internet, we have built a BCG matrix. SWOT Analysis After the Porter studies and the PEST analysis, our company needs to analyze the external and internal environment in order to fulfill our project correctly: The SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats): Strengths and Weaknesses are internal to the company, others are external. [...]
[...] Consequently, as purchasing a shampoo is not an important decision, and it is not a complex product, we will have a large number of customers. The buyers will need less information, and we will not need to provide a lot of post-purchase service. There are thus many resources available for advertising. The distribution strategy we will choose is the pull strategy. - Type of advertising We have chosen product advertising. As Dove is already known by most people, we will use competitive advertising, more specifically an indirect one (pointing out product advantages, affecting future intentions). - [...]
Online readingwith our online reader
Content validatedby our reading committee