Beruflich Dokumente
Kultur Dokumente
SUBMITTED TO, Mr. ANAJI SHARMA, ASSOCIATE PROFFESOR MASTER OF FASHION MANAGEMENT, NIFT-HYDERABAD
TABLE OF CONTENTS
SL. NO
TOPIC
PAGE NO.
1.
Introduction
2.
Background Study
3.
Research Methodology
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4.
12
5.
Results obtained
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6.
22
7.
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7.
Appendix
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8.
References
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INTRODUCTION
This report focuses on one of the most commonly used and known personal care product line in the world; Dove by Unilever. Responding to new competitive conditions in its business environment, Unilever Corporation has evolved into one of the foremost transnational companies. With the marketing leverage and established brand name of Unilever, Dove became a success story shortly after its launch. The accomplishment of Dove has largely been built on Unilevers ability to target the right consumers by offering quality and consumer-friendly products. Thus, despite the intense competition provided for by companies such as Procter and Gamble and Colgate-Palmolive, Dove remained to be on top of the market. In the year 2011 in India the brand Dove featured in the list of top 50 brands in India according to the Brand Trust Report. Today, Dove is the biggest Home and personal care brand by the leading multilocal multinational company, Unilever (HUL in India). Having been introduced for the first time as a skin-cleansing product, Dove is now a 2.5 billion Euros brand. Dove has a long range of brands including soaps, body washes and hair care shampoos and conditioners. Consequently, Dove also offers different countries with Dove products that are unique to their climate, culture and skin texture. This research report aims to examine the brand loyalty of Dove. An analysis was conducted with a survey was distributed to 50 consumers at random which has helped in gathering information on existing reasons why they would prefer any product based on the Dove brands product line.
BACKGROUND STUDY
Customers have a number of reasons to be loyal to a brand. Maybe the first product of a type they ever tried was of that brand, and they were satisfied. It might taste, work, feel, or fit better than other brands for that person. Many customers are influenced by price and have an innate distrust for less expensive products. Whatever the reason, these customers are more inclined to purchase with that brand to which they are loyal than with others. Even those customers who favor a single brand but are willing to purchase outside, may look down on a store that doesnt carry the favored brand. The primary thing that a brand name does for a customer is establish a reputation. Most people will know something of a given brand, either from experience, from word of mouth, or even by advertisement. The more positive reinforcement that is available for a brand, the greater is the influence on customers. One of the most important things a company can do to gain a customers trust is to provide a great initial purchasing experience. A company that makes a less than impressive impression on a new customer has a much tougher time getting that customer to buy again. In the case of a negative experience, that likelihood declines even further. To build a happy, loyal customer base, its important to have quality products and offer top notch service after the sale. The easiest way to gain a customers distrust is to be disinterested in helping a customer after a problem has arisen. Be proactive and go out of your way to make the customer happy. Assuming your quality control is at an acceptable level, good experiences should far outnumber bad ones. This will lay the foundation for a customer loyal to your brand.
Some customers are inherently predictable and loyal, irrespective of the brands with which they are doing business. They simply prefer long-term relationships with him. Loyal customers are predisposed to stay with one product or brand, resisting competitive offers and also recommend the supplier to others. True, the customers who are targeted by a retention program demonstrate higher loyalty to a business. Therefore such customer retention programs should include regular communication with customers, and provide them opportunities to remain active and choosing to do business with the supplier. Loyalty is demonstrated by the actions of the customer. But it doesnt mean that the customer satisfaction level can measure his loyalty. Customer loyalty is not customer satisfaction. Customer satisfaction is the basic entry point for a good business to start with. A customer can be very satisfied with the deal and still not be loyal. On the other hand a customer may not express satisfaction but wants to remain loyal to the brand due to some reasons which keeps him benefited from that brand. On the other hand, loyalty should not be considered as just an attitude. Customer loyalty should have a direct connection to a companys financial results. The brand should be able to plan a clear and direct economic benefit of some kind, as the result of the strategies and tactics it employs to increase its customers loyalty. Measuring customer loyalty and developing a retention strategy are of great importance to an organizations success.
manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category" (sales promotion definition). 2. "The degree to which a consumer consistently purchases the same brand within a product class" (consumer behavior definition). Brand loyalty has been defined by Oliver (1997) as, A deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior. (Oliver, 1999 cited in Pohl, 2006) The definition provided by Oliver lays stress on the situational influences and marketing efforts which cause customers to switch over. A loyal customer is one who is not influenced by these factors and makes repeated purchases from the same seller or brand. Brand loyalty, in marketing, consists of a consumers commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service, or other positive behaviors such as word of mouth advocacy. Philip Kotler, again, defines four patterns of (brand loyal) behavior: 1. Hard-core Loyal - who buy the brand all the time. 2. Split Loyal - loyal to two or three brands. 3. Shifting Loyal - moving from one brand to another. 4. Switchers - with no loyalty (possibly 'deal-prone', constantly looking for bargains or 'vanity prone', looking for something different).
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Moreover when customers are loyal to a brand they are less sensitive to price change and willingly pay higher price to get the unique value that your brand offers. Brand loyalty ultimately leads to cost cutting and high profit margin as a loyal customer is indifferent to competitive promotions. Once brand loyalty is established one does not need to spend much on advertising and marketing. A number of things can influence brand loyalty starting from designing a new product to writing its catch line, understanding customers need to employing effective marketing strategy. Brand loyalty occurs as the customer perceives the brand in a positive manner. Developing loyalty among new customers and retaining it among existing customers are equally important. Therefore it is necessary that the customers have a good impression about the brand as it is the foundation of their buying habits. When the customers buy a product they make a trial purchase. If they are satisfied with the product they will get back to buying that product again. Customers prefer to buy products that are familiar, safe and of good quality. A number of things determine brand loyalty. A customer develops brand loyalty only when they get quality product or service at the right price. It is the responsibility of the marketer to maintain the quality at a reasonable price.
Unilevers brand name used for many years on toilet soap became so successful its name was extended to other products. However, being the consumers best choice, Dove is enjoying the leading position in the market with the largest market shares in 75 countries and is a 2.5 billion Euros brand. The goals of Dove brands are to comply with the needs of the consumers all over the world and to work together in effective manner to adopt the advanced ideas while working out on the existing ones. Dove is a personal care brand owned by Unilever. Dove products are manufactured in Argentina, Australia, Brazil, Canada, Germany, India, Ireland, Netherlands, Thailand, Turkey and United States. The products are sold in more than 35 countries and are offered for both women and men. The Dove trademark and brand name is currently owned by Unilever. Dove's logo is a silhouette profile of the brand's namesake bird, the color of which often varies. Products include: antiperspirants/deodorants, body washes, beauty bars, lotions/moisturizers, hair care, and facial care products. Unilever spends 2 billion Euros every year on marketing whereas 1 billion Euros for the research and development purpose. This marketing by Unilever has led Dove brands to attain the leading position in the market by the effective strategies including market research, concentration of a small number of products, varieties in brands, business in collaboration with any other renowned company, innovations, marketing according to demographics, commercials on television, announcements on radio, through contests, workshops and supermarkets, billboards, free help lines, knowledgeable website, and free gift offers etc. Moreover, substantial country-to-country differences in consumer tastes, preferences, and practices, as well as market structures, distribution channels, and local regulations have motivated top management to allow extensive operating independence of Unilever's subsidiaries (Maljers, 1992).
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Moreover, rising trade barriers have, until recently, always reinforced the need for managerial autonomy at the subsidiary level. The major competitors of Dove brands are Palmolive by Colgate-Palmolive and Ivory and Oil of Olay by P&G, but Dove is still at the top because of the consumers confidence in it, its best quality and curative advantages that keep the skin moist and beautiful and hair healthy and shiny by the advanced formulae of moisturizing cream, conditioners, vitamin B5, Vitamin E and nutrients used in Dove brands that also helps for the aged people to keep their skin protected from wrinkles. Hence the success of Dove brands is attributed to just one thing that Unilever goes extra miles to give the loyal consumers high-quality, competitive products and services The products under the brand Dove can be listed under the following heads Shampoos Conditioners Dove hair fall rescue Dove daily shine Dove dryness care Dove dandruff care Hair Treatments Heat defense mist Intensive repair overnight mask Intensive repair regenerating mask Body lotions Essential nourishment Go fresh nourishment Indulgent nourishment Bar and body wash Crme Fresh moisture Gentle exfoliating
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Antiperspirants
RESEARCH METHODOLOGY
The primary research methodology involves identifying the population, selecting a sample, identifying the appropriate sampling technique, preparing the survey and administering the survey to the sample population. Defining the Target Population People who have used Doves products and are most likely to have a perception about them. The target population for evaluating the perception towards Dove as a brand would include people possessing all of the following attributes: Has used any product of Dove at least once Falls in the age group of 16 to 50 yrs.
Selection of Sampling Procedure Since no sampling frame exists, which could provide information about the probable respondents, thus convenience sampling technique would be used to conduct the survey using a structured questionnaire. Determining Sample Size The sample size for conducting this survey has been decided on ad hoc basis and a large sample size of 40 respondents has been chosen. Administering the Survey The survey is primary survey, conducted by administering a structured, non disguised questionnaire.
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Time frame The survey will be conducted in the city of Hyderabad during the month of May 2012.
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RESULTS OBTAINED
1. Consumer rating of Dove brand in terms of quality:
25 40 % 20
Number of responses
30 % 15
20 %
10
8% 2%
16
28 %
Number of responses
14
Number of responses
4. Agreement/Disagreement with following statements: a) Always had a good impression about Dove
16 14 30 % 30 %
Number of responses
24 % 12 10 16 % 8 6 4
2
0% 0 Strongly Agree Agree Neutral Disagree Strongly Disagree
Responses
15
Number of responses
Responses
Number of responses
12 %
14 % 8%
Responses
16
Number of responses
Responses
Number of responses
4%
0%
Responses
17
Number of responses
Responses
Number of responses
Responses
18
Number of responses
6%
Responses
6. Likelihood of repurchase:
20 18 32 % 16
38 %
Number of responses
14
12 10 8 6 22 %
A= definitely repurchase dove, B=might repurchase dove, C= neutral towards repurchase decision, D= not repurchase dove
8%
4
2 0 A B C D
Responses
19
Number of responses
20 15 10 12 % 5 0 A B C 28 %
12 %
Responses
Number of responses
20 30 % 15 22 % 10 5
8%
0
A B C D
Responses
25
46 % A=not discontinue dove, B=might try lower priced product, C=switch to lower priced product 26 % 28 %
20
Number of responses
15
10
0 A B Responses C
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whether Dove products were better than its competitors only a small percentage of 18% agreed to it, this means although people are highly satisfied with the quality of products they still dont find other brands inferior.
loyal customer base but at the same time it also has a segment of customers which are price sensitive and not loyal in the true sense, therefore it should make constant efforts to retain the customers it already has and make efforts to turn the not so loyal switchers into hardcore loyal.
References
http://ivythesis.typepad.com/term_paper_topics/2011/06/industry-report-dove-byunilever.html
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SURVEY
Declaration: This survey is being conducted by the students of National Institute of Fashion Technology, Hyderabad; as a part of their project survey. The information given by you will be used solely for academic purposes only and will not be disclosed anyhow. You are kindly requested to fill the following survey form. Have you used Dove products? o Yes o No (if no please exit the survey, thanks for participating) Rate Dove as a brand in terms of quality Very good Good Neutral Bad Very Bad
Rate dove as a brand in terms of value for money Very Good Good Neutral Bad Very Bad
Do you perceive a difference between the quality of Doves products and products of other brands? o o o Yes No Cant say
Thinking of Dove brand to what degree do you agree or disagree with the following statements? Statement I have always had a good impression about this brand My friends and family highly value this brand I believe the products of this brand are better than its competitors The brand suits me The brand is trustworthy and credible I say positive things about this brand to others 25 Strongly Agree Agree Neutral Disagree Strongly Disagree
I consider myself loyal to this brand How many times have you purchased Dove products in the past 6 months? o o o o o Once Twice Thrice More than four times I have not purchased it How likely are you to repurchase dove products? I will definitely repurchase Dove I might repurchase Dove I am neutral towards the repurchase decision I will not repurchase dove How likely are you to purchase a different brand in case of stock out situations? I will not purchase another brand, I purchase only Dove I might consider purchasing a different brand in emergencies I will browse and look for brands offering similar products I will certainly purchase a different brand if I do not find dove
o o o o
o o o o
How likely are you to repurchase the product if price increases? o o o o I I I I will will will will purchase Dove even if the price increases purchase Dove purchase Dove only if the price increase is marginal evaluate other products also if the price increases for Dove not purchase Dove incase the price increases
How likely are you to repurchase if a similar competitor has a price slightly lower? o o o I am not likely to discontinue Dove in favor of a lower priced product I might try out the lower priced product instead of Dove I will switch to the lower priced product instead of Dove
Demographic Questions: Your Gender Your Age Educational Qualifications Occupation Income of Family (Per Annum) Male Female 21 to 25 yrs
18 to 20 yrs.
Undergraduate Graduate Post- Graduate Student Service Personnel Own business Housewife below Rs.1.5lakh Rs.1.5lakh to 3lakh 26
Rs.3.1lakh to 5lakh
above Rs.5lakh
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