SUSTAINABLE MARKETING

We live in a world where temperatures are rising, water is a scarce resource, energy is expensive, food supplies are less and the gap between the rich and the poor is increasing.

In such circumstances, in order to protect our resources and as a responsible citizen marketers should keep in mind the concept of sustainable marketing. According to this concept, we should indulge in business practices and relationships that do not harm the environment. This will ensure the availability of our resources for future generations and promote healthy relationships with present and future customers.

Dove as a brand had made sure to provide quality products to its customers which ensure sustainable development. Dove deep pure face wash has contributed towards skin care. The product is clinically safe for soft and smooth skin.

The parent company Unilever chalked out a sustainable development plan known as the Unilever Sustainable Living Plan which decouples growth from environmental impact, however, bringing about a positive social impact. Some of the product campaigns under HUL which aim at sustainable marketing and growth are mentioned as follows:

1. Dove Self Esteem Movement
   
   
   Dove has always focused on their promotion as a beauty brand. The self esteem movement believes that everyone has the ability to make a difference and through this movement we try to build self esteem in every girl through simple actions and community interactions. These include educational and learning programs which encourage, motivate and inspire girls around the world. The movement was successful worldwide and everyone had a story to share.
   
   
   
   

   

   Feel beautiful in your own skin.
   

   
   

   
   
   
   
2. Dove employs Selfies to raise women’s self confidence
   Dove has always celebrated natural beauty and asked women to feel special in their own sensual skin. The brand challenged stereotypes yet again but asking women and girls to upload the photos of their most hated body parts on social media. This encouraged females to post selfies and take a fresh new look at their imperfections. The reason for taking the message on social media was that 63% of the working women think that social media has a huge impact on beauty standards as compared to print, TV and other media sources.
   
   The message behind the campaign was to take pride in imperfections and don't run behind cosmetics unnecessarily as measures to enhance beauty. This resonates with Dove’s message of feeling beautiful the way you are.
   
   
   

   

   Love your Imperfections
   

   
   

3. Global Green Brands 2011
   
   
   As the name suggests the Global Green Brands follow the go green approach. According to this approach the brands should follow sustainable marketing and indulge in market practices that do not harm the environment. The team behind this objective surveyed 9000 people in the world and found that the brands which hold high reputation in the minds of consumer are most trusted, used and repeatedly bought. Dove among the brands surveyed stood tall at 9th position worldwide.
   
   
4. Corporate Social Responsibility (CSR) by HUL
   HUL has various Corporate Social Responsibility programs through which the company makes sure it contributes a share of its earnings to social causes. HUL contributes 2% of its net profits as its share towards social initiatives.
   
   There are 5 levers for change that Hindustan Unilever Limited has adopted as foundation stones of their CSR policy. These are mentioned below:

• Barriers - the things that stop people from shifting to new behaviour patterns.
• Trigger - What forces people to adopt a new behavioural pattern.
• Motivators- what are the motivating factors that help people to stay loyal to the same brand.
• Understood- help in creating awareness and acceptance among masses.
• Easy- should be convenient in its reach and instils confidence

Towards a better tomorrow.

With the help of these the organization aspires to make a difference.

ANALYZING BUSINESS MARKETS

Dove falls under the umbrella of HUL, Hindustan Unilever Limited, which is a subsidiary of Unilever. The products offered by HUL, Dove deep face wash, are fast moving consumer goods popularly known as FMCG goods.

The movement of these goods can be:

1. B2B - business to business
2. B2C  - business to client. 

The Rs.22,116 crore company Hindustan Unilever Limited has shown interest to invest more on beauty, food and water segments. Dove falls under the beauty segment because the products offered by the brand marketed as beauty products for women in skin care category. Personal products account for 38% of the total revenue of HUL.

B2B vs B2C Marketing

 

B2B Markets

Economic researches have revealed that around 50-60% of the gross domestic product of any country depends on the B2B markets. These markets are like an invisible wheel slowly and steadily driving the wheel of the economy.

• Here, let us consider the case of HUL and the distribution of Dove products. 
• The products are sold as brands to customers. These products are FMCG products and the marketers require raw materials, oils, fragrance, packaging tubes and many more for the manufacturing of these products. 
• Marketing of all such products will be done by B2B marketers. 
• Each of them will classify themselves as the B2B marketer for HUL. 
• The processing of these raw materials would require proper processing plants, packaging materials, conveyor belts for the proper production of one unit of the product. 
• The housewife who will purchase this product will never be able to find out the various B2B marketers the product has travelled through before reaching the end customer. 
• We can say that the product reached the end customer through business marketing and B2B brands.

B2C Markets

• HUL has promoted Dove in direct business to clients markets as well. 
• The project ‘Sangam Direct’ was launched in the year 2001 for the first time. 
• Under this project a non-store retail delivery system was established by HUL for its famous FMCG products. 
• This project was first launched as a test project in Mumbai. 
• Under this scheme, the centre which works as a call centre takes orders directly from customers on phone. After consolidating the orders it passes those orders to the re-distribution agents. 
• This, particular model where there is no physical store but the orders are taken from the customers provided twin benefit to the customer.
•  It not only provided convenience to the customer but also value. After, a great customer response HUL took this idea to many cities across the country.

BRANDING

The American Marketing Association defines brand as a name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from those of other sellers.

According to Philip Kotler, “a brand is a sellers promise to deliver a specific set of features, benefits and services to the buyer.”

A brand

• indicates quality delivered by the product.
• indicates ownership and identity of the product.
• indicates how the product differentiates itself from others in the market.
• indicates the value addition by the product.
• indicates confidence.
  

  

  Evolution of Dove as a brand

History: 

Since its launch in the year 1940 Dove has been intricately positioned at different points of time. Dove by Unilever has evolved itself from a just any other brand to one of the most trusted beauty brands around the world. In 1940s when soaps were marketed mainly for cleaning the skin Dove was marketed as a gentler and softer alternate for the skin. It was in fact not just soap, it was a product manufactured specially for the skin after careful military research at that time.

Growth: 

However, the company was slow to take off because of low global popularity. The product offering was decentralized and the corporate strategy was poor. The company offered a limited variety of products which were not so popular as compared to its competitors. Price was also one of the factors why Dove took time to take off as a brand in the market.

By 1970s, Dove popularity as a gentle bathing bar started gaining momentum. It was marketed as a bathing bar with 25% moisturizing lotion which is gentle and soft for the skin as compared to the other bathing bar alternatives present in the market.

By 1980, Dove’s popularity attained a good height and it was the most recommended brand by physicians at that time. With the passage of time the company launched other products in skin care category like- body lotions, deodorants, face wash, body wash, hair care products etc. The question that still remains unanswered is how did Dove reached the positioning that it has today in the market.

New Positioning:

Gender-Specific positioning

In 2003, after careful market research and surveys Dove targeted working women and positioned itself as a beauty brand. Dove knew that the growing trend of working women would provide it a gender-specific positioning thus, launching the brand in a whole new way in the market. These women are conscious about their beauty and have awareness about every available product in the market.

As per the market research Dove found out that 78% of the women believed that they do not want the product to tell them how to look pretty and younger. Instead they want a quality product for their skin and per skin type oily-normal-dry skin.

Dove launched many ad campaigns, but none of these campaigns had any celebrities. The campaigns had real women of all ages, shape and size. It showcased older women, young women, curvy women, skinny women and spread the message of loving your skin the way it is. It is all about feeling good and happy about your own skin. Dove’s key message to every women was to feel happy and good about yourself.

Dove got maximum eyeballs due to such a positioning in the market. An emotional touch was delivered along with the objectives set by the brand for the new positioning in the market. Even the product print ads and banners show real women who do not fall under the thin, blonde and toned stereotype thus, showing them feeling free and high on self esteem in their own body.

One of the most famous ad campaigns by Dove, Dove Real Beauty Sketches has over 55 million. It showcases sketches of different women based on the interpretation of how they see themselves and how the world sees them. The message conveyed through the campaign is to feel beautiful the way you are.

The brand lowered their original amount of offerings from 1600 to just 400. They basically made different categories and put their most popular offerings in each of the categories. Less popular products were taken off the market. Dove’s story of making profits and increasing consumer sales is a clear example of how changing the brand strategy can lead to exponential sales. One thing however, which has not changed over time is the premium image that the brand enjoys over all these years.

SEGMENTATION, TARGETING AND POSITIONING

Dove falls under the umbrella of HUL and offers an assortment of personal care products.It offers 23 body washes, 15 body bars and products in hair care, skin care, body lotions and deodrants category. Dove face wash hit the markets in 2011. It is available in three variants namely:

Three variants of Dove face wash in market

1. Dove Deep Pure face wash
2. Dove Beauty Moisture
3. Dove Go Fresh

Dove has been considered as a premium brand in the market. If we compare Dove products with competing brands such as Pears, Olay, L’Oreal Garnier, Ponds, Fair n Lovely etc. it has maintained an image above the rest through its unique segmentation, targeting and positioning.

Segmentation

Market Segmentation can be done as shown in the diagram below:

Merket Segmentation

However, as a brand Dove segments the market in the following ways:

1. Dove has claimed 1/4^th moisturizing cream in its products. Be it soap, body wash, body lotions or face wash. A survey was conducted to find out the segment of people who would prefer scent and miosturizing cream in the skin care products they use.
2. Market Analysis:The analysis will show the preference of people in terms of the kind of products they like to use.40% : moisturizing properties and fragrance. 40% : frangrance free and medium moisturizing. 20%: products depending on skin type.
3.  Demographic Segmentation:
   
   -Under this segmentation. Dove focusses on all women above 18 years.
   -These incluide women who are conscious about skin care.-They want to use quality products of the skin.-They have good purchasing power.
4. Psychographic SEgmentation
   
   
   -Dove uses psychographic segmentation, where it aims to create psychology in women that beauty incorporates in all stages of life.
    -Beauty is present at all ages, sizes and body shapes.
    -You need to feel and celebrate you skin and body.-We can say that Dove has a unique approach of concentrating on real people even in their advertisements.-They do not take any celebrities in their promotions for better connect with the customer.-Women should feel good and look good not only from outside but also inside.

Targeting

We care for your skin.

-The target group of Dove is particularly women above 18 years. 

-The brand says they target women of all ages, shapes and sizes.

- Women who are concerned about skin care and belong to high income groups who would spend extra for a good quality product.

- Dove wants every woman to believe that. “You are beautiful the way you are.

-Primarily Dove targets working women who do not have much time for their skin and thus, will be inclined towards a product which has both moisturizing and cleaning properties.

-These working women in the age group 21-35 have purchasing power for quality products as well.

-They always want to be ready, be it at work or at home. Client Presentations, hectic work schedules, long working hours, and deadlines are a part of their daily routine.

-We can say. They target high income groups who would be willing to pay Rs. 90/- for 50g face wash tube.

Positioning

Celebrate your real self

-Research has shown that 80% of all purchase decisions are made by or influenced by women.

-Dove realized that it is critical to position the brand and market it to women. 

- Since 2003, Dove positioned itself through a gender-specific brand positioning.

-Dove Deep Pure face wash has been positioned as a beauty product in the market.

-In 2004, dove launched the ‘Real Beauty Campaign’. The brand realized that women are not interested to know about products that will help them look younger and prettier. Instead, they want to feel beautiful in their own skin.

-The Real Beauty Campaign celebrated women in their own sensual skin with a series of advertisements that without any PhotoShop elements used on women in the ads.

-The campaign took a step further, when Dove launched a video where they showed  evolution of a woman in an advertisement when different PhotoShop elements are applied on her body. Totally different!

Thus, from a brand in skin care category which was positioned as a personal care brand completely transformed itself as a beauty brand and gained momentum in the market. It is a good example of how good positioning can be a boon to a brand’s strategy.

SALES

Increase in demand increases Sales

According to the AMA definition of sales, 

“Sales refers to the number of activities designed to promote customer purchase of a product or service. They can be done in person or over the phone, through e-mail or other communication media. The process generally includes stages such as assessing customer needs, presenting product features and benefits to address those needs and negotiation on price, delivery and other elements.”

Marketing and promotions of a brand has the final objective of converting to sales. Sales is one of the essential parts of any business primarily because it results in revenue for the company. These profits are then used in different ways for the welfare of the organization.

In case of Dove deep pure face wash sales are dependent on the demand created in the market through marketing activities and promotions. 

Here, the concept of Demand Creators can be applied. Demand creators increase the demand of the product by keep a track of the number of people talking about the product. In fact they increase the number of such people.

An increase in sales can be achieved through..

• catering to the need
• ad campaigns
• right brand positioning
• marketing as per the changing needs.

The sales of FMCG goods particularly face wash category has attained a stagnant point for quite some time. HUL the parent company for Dove witnessed sales of 3% in the personal skin care segment whereas the projected sales for the last quarter were 5% in March 2014. Thus, we can say that the sales figures were not similar to what was project for the year.

In the personal care segment, the skin care section has seen an increase in demand to 8%. The company traded at 32.2 times in its 12 month forward earnings compared to ITC who traded at 27.7 times and Godrej which traded at 27.7 times according to Thomson Reuters Starmine Smart Estimate.

Out of the analysts hired by the brand to cover stock, 19 had the ‘sell’ rating which only 6 out of them as ‘strong sell’. 13 held ‘recommendations along with ‘buy’ and ‘strong buy’.

Share value of the company increased  1.8% so far this year, compared to a 4 percent increase in the BSE FMCG index.

INTEGRATED MARKETING COMMUNICATION (PROMOTIONS)

You are Beautiful

Dove believes that beauty - feeling and looking your personal best - is the result of proper care. Dove always aims to deliver products which tangibly improve the condition of skin or hair and give a pleasurable experience of care, because when you look and feel beautiful, it makes you feel happier. It’s a feeling every woman should experience every day.

From the beginning Dove has always celebrated real women at the heart of everything the brand does and believes. Real beauty embraces diversity - no woman is or should feel excluded from the world of beauty that the brand represents. Real women are the brand’s true inspiration.

Before 2003 – Dove brand was promoted as solution to soap problems. The two categories prevalent at that time were Hand wash and body cream soap.

After 2003 - Dove was promoted as beauty brand primarily for working class women.

Dove Real Beauty Campaign 2003:

·         “Beyond Compare: Women Photographers On Real Beauty," a show organized by Dove and Ogilvy & Mather, featured work from 67 female photographers.

·         And it marked the beginning of Dove's quest to understand how women thought about beauty -a conversation that would eventually become the Dove Campaign For Real Beauty.

Ten years after the exhibition opened, the Campaign For Real Beauty is one of modern marketing's most talked-about success stories. The campaign has expanded from billboards to television ads and online videos.

Question Arises :
How did a brand associated with a plain white bar of soap get men and women worldwide to think about the narrow definitions of female beauty? 

Answer: Promotion

Evolution Campaign 2006:

Beauty evolution through PhotoShop

• Dove created a fund in 2004 to partner with organizations like the Scouts, Boys and Girls Inc. to organize activities including discussions about online bullying and photography projects capturing the beauty girls see in the world around them.
• The team at Dove Canada created a series of short films to raise awareness about the fund and the larger campaign.   
• "Evolution" was the tipping point, turning the Campaign For Real Beauty into a household name. For many young women, "Evolution" struck a chord, opening their eyes to the narrow definitions of beauty they grew up with and the way images were manipulated to fit said ideals. Today, "Evolution" still has an impact, but seems almost passé
  

Recent Campaigns :

The way you see yourself and the way world perceives you is different.

• Dove's 2013 spot "Real Beauty Sketches," which shows women describing their appearances to a forensic sketch artist, became the most-watched video ad of all time.
• Dove plans to continue making videos like 2013's "Real Beauty Sketches." 
• Currently, Dove Canada is working on a social media campaign, #DovePositiveChange, which posts encouraging responses to women tweeting self-deprecating remarks about themselves. And Dove's latest short film, "Selfie," was released on Jan. 20.

Conclusion:

Both critics and champions of many Dove campaigns have pointed out that just because women are redefining beauty, doesn't mean they are actually feeling differently about themselves. An estimated 80 percent of American women feel dissatisfied with their bodies, and 81 percent of 10-year-old girls are afraid of becoming "fat." Can a series of ad campaigns really change institutionalized body hatred?

The Dove team feels strongly that the campaign will be around for a long time to come.

DISTRIBUTION

HUL Distribution of FMCG Products (Dove Distribution)

Dove as a brand comes under the umbrella of Hindustan Unilever Limited. The distribution of various products is done by the parent company. HUL covers the consumers mainly with the combination of carriers and forwarding agents and stockiest who indirectly deal with the retail outlets. The company which is headquartered in Mumbai has appointed Hindustan Cargo ltd. as the C&F agent.

C&F agents can be classified as:

1.      One’s with investment

2.      One’s  without investment.

The without investment C&F agent then supplies the goods to the authorized stockiest.

These stockiest are also classified into 2 categories called U1 and U2. 

The stockiest are classified as U1 and U2 stockiest on the basis of the product that they stock.
E.g. U1 stockiest generally stocks products like surf and ponds whereas the U2 stockiest deals with high profile products of HUL like Lakme and Dove(premium products).

The stockiest in HUL system are commonly referred to as Re Stockiest. 
E.g.  In Delhi region there are approximately 8 U1 stockiest and 6 U2 stockiest. These are appointed for a particular region of the city. Each stockiest is then responsible for distributing the goods to the retail counters in his locality.

The stockiest then deliver the value product for general trade to comprises grocery stores, chemists, wholesale, kiosks and general stores.

HUL provide tailor made services to each of its channel partners. 2,800 suppliers and nearly 2000 distributors serve HUL’s 37 factories reaching 6.3 million outlets.

Based on the factors like the investment capacity, number of retail stores covered, appropriate Sales force, infrastructure etc., the stockists are evaluated and are selected by the company. Company’s policy is to work in advance payment mode. This is to ensure that the there is no delay in fulfilling the demand of the consumers and sufficient stocks are available to cover the entire range and categories of Dove face wash.

According to HUL Annual Report 2013, the Company has a robust Supply Chain savings programme with continuous focus on end-to-end Supply Chain cost reduction through new technologies, alternative sources of energy, efficient processes and methods. During the year, the Company has delivered 5% saving in Supply Chain cost with sourcing network optimisation, logistic efficiency through improved utilisations, and factory production cost reduction through improvement in energy efficiency, technical efficiencies, wastage reduction and yield improvement.

There has been a 15% improvement in innovation OTIF (On Time in Full) with more than 150 innovation networks being executed during the year touching more than 50% of the product portfolio. The focus on better and faster innovation and capability development has significantly helped the Company launch innovations first time right. The Company has identified beauty, foods, modern trade and rural as key capabilities to win in the future and the supply chain function has significantly improved capability and skill building in these areas during the year.

The Partner to Win programme with supplier and business partners in procurement function focuses on reducing lead time, decreasing procurement cost, improving reliability and work on new innovation.