Rediscovering Market Segmentation for Dove Brand Alina Chesnokova
Mikhail Chubarov
Arina Chokati
Vitaly Mindlin
Executive Summary Widened target audience along with the entrance to the new market segments will allow Unilever to increase Dove’s sales by 30% in quantity and by 35% in monetary terms in 2014 Attracting new consumers and keeping the existing Kids
Initial target audience 25-45
Dove Clinical
5 new products
For kids
4 new products
Skin care
4 new products
Hair care
1 new product
Antiperspirants
1 new product
Ladies 20-25
Ladies 45-55
Source: Octopus Analysis
Revenue increase by 35%
Creating new products and improving marketing for existent
2
What is Dove?
3
Currently Dove plays in 4 categories with various products in each
Hair care
Antiperspirants
Dove
Skin care
Source: case data
Cleansers
4
Our consumers, who are they?
5
To whom?
What?
How?
Analysis of Dove consumers versus competitors’ suggests widening of the target audience to capture young ladies Dove Brand has significant growth opportunities in 20-25 segment :comparable brands have twice as more solvent young clients % of 20-25 clients
40 Fructis
35 30 25
Shauma
20
Nivea
Rexona
Pantene Garnier
Palmolive
15
Timotei
10
Dove
Barhatnie ruchki
5
Chistaya linia
0 54
56
58
60
62
64
66
68
70
72
74
76
78
80
82
84
86
88
90
92
% Upper-Intermediate Income
Number of categories the company plays in Source: Octopus Analysis, Euromonitor
6
To whom?
What?
How?
Analysis of Dove consumers versus competitors’ suggests widening of the target audience to capture children Child-products segment steadily perform higher growth rates in comparison with mass segment
Nearest competitors are also represented in this segment
2011/12 Growth rate
Basic brand
10 Child-specific skin care
9
Child-specific Brand
Market share
Child-specific hair care
8
21,7%
7 6 Hair care
5
1,7%
4
Skin Care
3 2 5
6
7
8
9
10
11
12
13
0,7%
2007-12 CAGR Source: Octopus Analysis, Euromonitor
7
To whom?
What?
How?
Analysis of Dove consumers versus competitors’ suggests widening of the target audience to capture middle-aged ladies
Source: Octopus Analysis, Euromonitor
8
To whom?
What?
How?
Analysis of Dove consumers versus competitors’ suggests widening of the target audience to capture children, young and middle-aged ladies Initial target audience 25-45
Dove for children
Ladies 20-25
Ladies 45-55
Source: Octopus Analysis
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What to sell?
To whom?
What?
How?
Categories having most potential were identified for launching new products to address revisited target audience Dove Value Share
Dove Sales, mln RUR
Market Growth Rate
Skin cleansers
6%
2255
3,5%
Skin care
3%
712
3,7%
Antiperspirants
4%
659
5,7%
Hair care
3%
1704
5,1%
Source: Octopus Analysis
Dove Products Variety
Average Development Competitor potential Products Variety
Low
High
Medium
Medium
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To whom?
What?
How?
The following new products will be added to Dove’s portfolio in the existing price-wise segment Antiperspirants
Facial care
Foot cream
Foot antiperspirant Basic facial cream
20-25
Body care
Hair care Treatments for hair ends
Basic lipstick
25-45
Sun protection
45-55 Lipstick
Dove for children
Source: Octopus Analysis
Shower cream and body lotion
Shampoo
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To whom?
What?
How?
Following global market tendencies more advanced line of products will be launched – Dove Clinical Antiperspirants
Facial care Facial creams for young skin
20-25
Clinical antiperspirant
Clinical lipstick for extra-dry lips special care
25-45
for mature skin
45-55
Source: Octopus Analysis
13
Antiperspirant & Deodorant
14
To whom? Competitors
What? Foot antiperspirant
How? Target audience
20-25
25-45
45-55
46 mln RUR Sales increase
Source: Octopus Analysis
15
Facial Care
16
To whom? Competitors
What?
Facial cream
How? Target audience
20-25
25-45
45-55
130 mln RUR Sales increase Source: Octopus Analysis
17
Hair Care
18
To whom? Competitors
What?
Treatment for hair ends
How? Target audience
20-25
25-45
45-55
28 mln RUR Sales increase
Source: Octopus Analysis
19
Body Care
20
To whom? Competitors
What?
Foot cream
How? Target audience
20-25
25-45
45-55
45 mln RUR Sales increase
Source: Octopus Analysis
21
To whom? Competitors
What?
Sun protection
How? Target audience
20-25
25-45
45-55
107 mln RUR Sales increase
Source: Octopus Analysis
kids
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Kids products
23
To whom?
What?
How?
Lipstick Competitors
10 mln RUR sales increase Shower gel and body lotion
23 mln RUR sales increase Shampoo
42 mln RUR sales increase
Source: Octopus Analysis
24
Premium Cosmetics
25
To whom?
What? Clinical facial cream
How?
Lipstick for extra-dry lips
Clinical antiperspirant
7 mln RUR sales increase
11 mln RUR sales increase
for young skin
20-25
25-45
special care
for mature skin
45-55 43 mln RUR sales increase Source: Octopus Analysis
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How to sell?
To whom?
What?
How?
Both existing and new products’ advertisement will be reconsidered: age groups are to be approached in different ways
Dove for children
20-25
Beauty boxes
“Get used to be natural”
Partnership Workshops in shopping malls for mothers with children
Source: Octopus Analysis
25-45
Put our products in partners’ boxes
“Real Beauty Box” by Dove Consumer can order our beauty box on the site
28
To whom?
What?
How?
Both existing and new products’ advertisement will be reconsidered: seasonal campaigns to support newly-launched products
20-25
25-45
45-55
Dove for children
Seasonal advertising campaigns Advertisements “Care of yourself all year long�
Promo-actions in the places of mass winter and summer attraction
Mainly printed advertisement introducing new sunprotection products in summer and positioning our existing ones as those for care during winter
Campaign both for summer and for winter allowing the potential consumers to take a closer look on our products
Promotional sets 8th of March
Source: Octopus Analysis
New Year
29
To whom?
What?
How?
Both existing and new products’ advertisement will be reconsidered: acquiring loyalty of the Russian consumers through customized limited edition products
Advertising campaign: “Every woman can be naturally beautiful”
Source: Octopus Analysis
Traditional Russian prints on the bottles
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To whom?
What?
How?
To be in trend with the developing channels of information delivery, we will introduce several digital actions
QR codes on the bottles with links to comments of this products users
Source: Octopus Analysis
Mobile applications with advice concerning skin and hair problems
Social Media Management (SMM) as a way of delivery information about new promo campaigns
31
To whom?
What?
How?
Availability in stores is highly important for Dove products to be sold and thus high distribution in the following channels is to be pursued
Antiperspirants
Skin care
Hare care
Cleansers
Priority of consideration
Makeup store
Low
Hypermarket
Low
Supermarket
High
Superette
Medium
Drugstore
High
Open-air market
Low
Source: Octopus Analysis
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To whom?
What?
How?
All the actions are to be taken in a course of 2014 following the below schedule Limited edition line launch Launching lipstick and basic facial cream
2014 Dec
Jan
Nov
Kids launch line Introduction of virusadvertising about kids Stands in shopping malls
Source: Octopus Analysis
All-year long actions: Improving SMM and availability in stores Launching beauty-boxes
Feb
Oct
Mar
Sep
Apr
Aug
Launching premium products “Dove Clinical” except antiperspirant Promo: “Dove Clinical” Gift sets for 8th of March
May Jul
Jun
Promo: “Summer care” Launching new clinical antiperspirant, foot cream, foot antiperspirant and summer protection line
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Any questions?
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an ambitious team of students with diverse professional experience in solving analytical problems Alina Chesnokova
Mikhail Chubarov
Arina Chokati
Vitaly Mindlin
+7 (985) 436-81-28 alina.chesnokova@gmail.com
+7 (903) 169-53-75 tschubarovm@yandex.ru
+7 (906) 066-13-56 achokati@gmail.com
+7 (968) 634-15-69 mindlin.vitaly@gmail.com
• Pursuing Master degree at HSE • Obtained Bachelor of Economics degree at HSE in 2013 • Internships at Alfa Investment Banking; Ministry of Economic Development • Participant of K-foundation’13 program at KPMG
• 4th year student at HSE • Alfa-Chance scholarship 20112012 • Banksbattle Business simulator 2013 Finalist • Internships at Rosgosstrakh, Slavneft, Enter
• 4th year student at ICEF HSE • Successful internship at Procter&Gamble • Exchange student at Tilburg University in Netherlands • FLEX program alumna
• 4th year student at HSE • Successful internship at VSMPO-AVISMA • Participant of K-foundation’13 program at KPMG
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