2 octopus

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

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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

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Hair Care

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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

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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

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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

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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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