MBA 240 Individual Case #2 11/2/2011 Dove’s Campaign for Real Beauty I. Executive Summary The Dove brand has been revitalized with the success of their “Real Beauty” campaign. Dove’s main goals are to continue to improve their brand image and gain market share. The key challenges facing top management to accomplish these goals are; building on the momentum the ‘Real Beauty’ campaign has generated, differentiating from their competition and modernizing their brand image.
I am recommending that Dove should continue to stay the current course of designing marketing campaigns to redefine what real beauty is and also push to promote more natural skin care products. Dove is able to stand out with the message they are communicating through their “Real Beauty” campaign. Dove is in an industry where there is little product differentiation. I believe the best strategy is to continue to focus efforts on differentiating themselves through the image developed by their marketing campaigns.
Revamping the ‘Real Beauty’ and ‘Self-Esteem’ marketing campaigns will allow Dove to continue to build on the momentum generated thus far and will limit new costs since current marketing strategies can continue to be used. II. Statement of the Problem Dove’s main goal is to continue to gain market share through the improvement of their brand image. The Ernest Dicher Institute conducted a research study for Dove and they found that consumers associate Dove with being a reliable moisturizer but that the brand was also old-fashioned.
Dove is a brand that has been produced commercially since 1957 when they introduced their first beauty soap bar. The brands longevity and relatively unchanged image have contributed to many consumers, especially younger generations, perceiving Dove as an old-fashioned brand. The main decision facing top level management now is how to go about modernizing their brand image and differentiating themselves from the competition. III. Causes of the Problem
Dove is in a highly competitive market where new brands are continuing to be introduced and there is little room for product differentiation. Dove is one of the longest tenured brands in the industry and has been able to develop a reliable brand image. I believe that Dove’s longevity and steady success led them to become complacent and bland, ultimately leading to the brand being viewed as old-fashioned. Up until the campaign for real beauty, Dove failed to make any significant changes in marketing campaigns and packaging.
Many of Dove’s competitors have a more energetic and edginess feel to them. Garnier has done a great job with promoting natural ingredients in their products with their ‘Fructis’ line and they have been able to differentiate themselves with bright colors used in their packaging. L’Oreal Paris has done a great job at producing a sophisticated image by promoting strong ties to European fashion. According to reportlinker. com, Johnson & Johnson was the industry leader in 2010 with a 13% market share in the skincare industry.
Johnson & Johnson’s Neutrogena brand has been able to differentiate itself by promoting that they are the number one dermatologist recommended skincare brand. These newer brands were succeeding not because their products were superior to Dove, but rather because they were successful at differentiating themselves from other competitors. The launches of the ‘Real Beauty’ campaign and more recently the ‘Movement for Self-Esteem’ campaign have allowed Dove to begin to differentiate themselves from competitors.
The two campaigns have given life to the brand and begun the image shift. According to a study by research firm Millward Brown, the brand is now being described as “open, self-confident, and fun. ” Dove needs to continue to modernize their brand image. IV. Decision Criteria and Alternative Solutions The decision criteria I used to evaluate the viability of my alternative solutions are; does the solution help to improve the brand image, timing and costs of implementation, and does the solution create differentiation in the market.
If the solution is able to accomplish all three of the identified criteria, Dove will improve their brand image and continue to gain market share. Solution 1: Make a concerted effort to penetrate the growing Chinese market. Currently Dove has little exposure in the Chinese market. The Dove website doesn’t even offer a Chinese version. Dove can take current marketing practices and implement them in China, gaining global market share through a more aggressive expansion plan. Pros: Dove will be exposed to a very large new customer base.
Dove won’t have to convince customers that they are not old-fashioned due to the Chinese markets lack of prior experience with the brand. Implementation of the “Real Beauty” and “Self-Esteem” campaigns will differentiate them amongst local Chinese and other global brands. Cons: Further penetration of the Chinese market will have considerable costs. Introducing a new brand to a large audience will cost millions of marketing dollars. In addition to the other major global leaders in the skincare industry, Dove will have to compete with local brands that have a better understanding of the market.
According to Cosmeticdesign-Europe. com, in 2006 there were already over 1300 different skincare products on Chinese shelves. Olay and L’Oreal were the dominant leaders with 13. 4% and 11. 3% market share. There are also still unique challenges in dealing with the Chinese government. Solution 2: Stay the current course; focus on the brand as a whole and not selling individual products. In addition, do a better job of promoting the natural ingredients in Dove products. They also need to modernize their packaging, add more color.
Pros: The current marketing campaigns have already generated dramatic positive results. Core European markets increased from 7. 4% to 13. 5% shortly after the campaigns launch. The current marketing plans are an effective way to create differentiation in the market. There is no waiting time for implementation of a new plan. Costs are minimized since current marketing tools can be used. Cons: Duplication by competitors, thinking of ways to revamp the same marketing idea, and by not focusing on individual products they are requiring the consumer to do some research on their own behalf.
Solution 3: Switch focus from promoting the overall brand to selling individual products; specifically focus on marketing their male products. Tailor ads for male products to promote masculinity, similar to what Old Spice has done. Pros: Focusing on individual products allows Dove to better meet the needs of different market segments, as opposed to their blanket marketing approach. Increase in sales for growing male market. According to Skincaretrends. net, “More and more men are becoming conscious of grooming and appearance.
In addition, men’s skin is different from women’s, and products specifically made for women may not be as effective for men. ” Cons: Strategy of focusing on individual products in a market where product differentiation is limited will make it difficult to make the brand stand out. Dove currently has a strong association with female products. Males might be hesitant, thinking that the brand is not for them. Dove’s brand image will become confusing to consumers. V. Recommended Solution, Implementation and Justification I recommend that Dove should go with solution 2.
They should continue to stay the current course and further focus marketing strategies on defining their brand. According to Dove, their recently launched ‘Self-Esteem Movement’ is designed to promote “a world where beauty is a source of confidence, not anxiety. ” Dove’s current strategy of connecting with customers on an emotional level allows them to develop stronger relationships with customers. Skincare products are very similar from company to company, by placing a greater importance on marketing their brand image and not necessarily their products Dove is giving customers a different reason to buy.
There will be no wait for implementation and the plan will be the least costly since most of the strategies and tools are already in place. Implementation will include doing a better job of communicating that Dove products are largely made up of natural products. According to Skincaretrends. net, “natural skin care products derived from botanical sources are all the rave today. ” Like most industries, skincare consumers are placing a higher importance on natural ingredients than ever before.
Dove should add more color to their packaging and make them more eco-friendly, this will help them modernize their brand image. They should also consider a gorilla marketing tactic to regain some of the media coverage and buzz that the “Real Beauty” campaign originally generated. Instead of using billboards to ask provocative questions, Dove could put some of their “street models” in Times Square and place signs around their necks that ask similar questions. An older woman could have a sign that reads “wrinkled or wonderful,” “grey or gorgeous? All of these solutions help Dove to connect with their customers on a deeper level than their competition. This is the strongest way Dove can differentiate themselves. The current campaign has turned the brand around; they just need to keep the momentum going. Works Cited 1. Pitman, Simon. “Competition Heats up in China Skin Care Market. ” Cosmetics Design Europe – Cosmetics Packaging, Industry, Manufacturers – Cosmetics Ingredients, Supply. Web. 01 Nov. 2011. <http://www. cosmeticsdesign-europe. com/Market-Trends/Competition-heats-up-in-China-skin-care-market>. 2. Skincare Market Overview in the US to 2014 – Market Research Report. ” Find Industry Reports, Company Profiles and Market Statistics. Web. 01 Nov. 2011. <http://www. reportlinker. com/p0115263-summary/Skincare-in-the-US-to. html>. 3. “Skin Care Trends » Skin Care Trends in Focus. ” Skin Care Trends. Web. 01 Nov. 2011. <http://skincaretrends. net/skin-care-trends-in-focus/>. 4. “The Dove® Movement for Self-Esteem. ” Dove® Skin Care, Hair Care, Body Cleansers, Lotions & Beauty Tips. Web. 01 Nov. 2011. <http://www. dove. us/Social-Mission/Our-Vision/>.