Unilever studies on this. They are trying to expand

Unilever is a worldwide
multinational company established in the year 1930.This FMCG Company which
provides products such as personal care products, cleaning products, food
products etc. Dove is a personal care product, active since 1955 and originated
in United States. Though it started as a beauty bar soap now it includes all
kinds of personal care products such as shampoos, conditioners, face wash etc.

                         The brand concerns mainly
on purity, cleanliness, softness and natural beauty of the consumers. The brand
intends to focus on product innovation and conducting many studies on this.
They are trying to expand the definition for beauty and giving new meanings for
the beauty concept. They believe that real beauty should come from inner self.
“Dove”, the logo of the product is also a symbolic representation of purity and
softness. Dove will focus on women of all ages, shapes and
sizes. Especially targets on women who are working and have no time take care
of their skin. It uses the concept of market specialization. They are also
targeting on women with higher income groups.

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SWOT ANALYSIS –DOVE

 

STRENGTHS

1.    One
fourth of the product is made up of moisturizing cream. So its product design
itself is strength.

2.    It
is available worldwide.(more than 80 countries)

3.    Strong
distribution and sales network-Dove is an HUL brand so it is found in retail
chains, premium outlets and online.

4.    Strong
marketing-They does not uses celebrities for their campaign instead of that
they uses common people as their models (real beauty campaign). Hence people
prefer Dove more than other brands.

5.    Its
product line includes variety of products like shampoos, conditioners,
deodorants etc.

6.   
High
market shares.

7.   
Competitive
prices.

8.    International
brand recognition.

9.    They
win many awards.

WEAKNESS

1.    Tough
competition in market leads to limited growth rate.

2.     They are targeted mainly on the female
products and is not popular among the men.

3.    The
products are widely consumed in the metros and because of the price its
penetration towards rural areas is limited.

4.    Its
price is relatively high compared to the competitors so it’s difficult for them
to enter into price sensitive areas.

5.    Portfolio
of Unilever will affects Dove’s credibility also

6.    They
are facing many critics against their real beauty campaign.

7.    Advertising
expenses

OPPORTUNITIES

1.    Today
men are becoming more aware about the body care and conscious in body care
category. They can target men also

2.    Unilever
is active in more than 150 countries so that Dove can expand more.

3.    Target
market is increasing – Income of people is increasing so more people are buying
costly products for body care.

4.     Body wash is one of the leading segments in
the market and continuously increasing its sales.

5.    They
can launch natural products.

6.    They
can associate with fashion world.

7.    Research
and development of new category products.

THREATS

1.    Increasing
number of competitors day by day can affect the business of the brand.

2.    Now
a days people prefer natural products like Patanjali.

3.    Duplicate
products which imitate Dove can affect the image of the brand.

4.    Maturity
stage in the product life cycle of Dove.

5.    Some
does not believe in inner beauty which is their advertisement.

6.    Consumer
allergies.

 

PORTER’S
FIVE FORCES

 

1. Threats of new entrants

Threat of new entrants is very high. Now a day the
information which people getting through the different media is very high.
There are many brands with same or better quality than of Dove. The Switching
cost is very low people are ready to try new product s from different brands.so
they need to maintain their brand image and trust of the people. Brands like Patanjali
and Himalaya are coming with new a natural product which is obviously a threat
for the Dove.

•Low entry barriers- When barrier are less, there is
no difficulty for new competitors to enter the market. In soap industry there
is not much difficulty to enter.

2. Threat of substitute products

There are many substitute products for dove soap
category some of them are

Companies like Himalaya and Patanjali are coming up
with herbal beauty bars and most of them use face washes instead of soaps for cleaning
their face.

 Dove soap is
alternatively used as a moisturizer since ¼ th of it is cream but most of the
women use cream separately so moisturizing cream is also a substitute product.

Liquid body washes of Lux, Lifebuoy etc.

Soaps of other categories like antiseptics and
lotions like Dettol, Savlon etc.

 

 

3. Bargaining power of the suppliers

The product is mainly made up of palm oil and since
there is increase in the prices of palm oil there has been a change in the
terms and conditions with the present supplier. The bargaining power of the
supplier is of moderate force since they need large number of suppliers are
needed.

Before they were using animal fat but because of
certain regulations they are using vegetable oil so they need to change their
suppliers.

4. Bargaining power of the buyers.

Bargaining power of the buyers is very high.
Information which people are getting through the different types of media is
very high. There are many brands with same or better quality than of Dove. The
Switching cost is very low people are ready to try new product s from different
brands. The people are ready to experience premium products since their income
levels are increasing.

5. Degree of
rivalry

The degree of completion in this industry is pretty high and there are
many big players in this market.

Himalaya herbal, patanjali and many other natural products are big
competition to the Dove because people prefer ayurvedic than artificial ones.

Pears and Lux are other main competitors of the Dove. Large industry
size is also a reason for competition there are even many local brands like
medimix who is a competitor of Dove