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Contents

Executive Summary....................................................................................................................................... 2
Rationale for choosing the product .............................................................................................................. 2
Market Objective .......................................................................................................................................... 3
Situational Analysis ....................................................................................................................................... 3
Hindustan Unilever Limited (HUL) ............................................................................................................ 3
Company ................................................................................................................................................... 3
Brand: Dove........................................................................................................................................... 4
Competitors .............................................................................................................................................. 4
Market Scenario Product Category: Hair Care ...................................................................................... 4
Context ...................................................................................................................................................... 5
Customer ................................................................................................................................................... 6
SWOT Analysis........................................................................................................................................... 7
Strengths ............................................................................................................................................... 7
Weaknesses: ......................................................................................................................................... 7
Opportunity:.......................................................................................................................................... 7
Threat: ................................................................................................................................................... 7
STP Analysis................................................................................................................................................... 8
Segmentation ............................................................................................................................................ 8
Targeting ................................................................................................................................................. 10
Positioning............................................................................................................................................... 10
Marketing Action Programs ........................................................................................................................ 12
Product .................................................................................................................................................... 12
Price ........................................................................................................................................................ 13
Place: ....................................................................................................................................................... 14
Distribution Channel: .......................................................................................................................... 14
Promotion ............................................................................................................................................... 15
Advertising .......................................................................................................................................... 15
Implementation .......................................................................................................................................... 18
Budget ..................................................................................................................................................... 18
Financial Projections: .................................................................................................................................. 19
New venture ............................................................................................................................................... 21
Annexure: .................................................................................................................................................... 22
Market Survey ............................................................................................................................................. 22
Findings: .................................................................................................................................................. 23
References .................................................................................................................................................. 23

Executive Summary
Market for shampoo in India grew by almost 3.8% in year 2010 to reach sales of INR 4.5 billion. The
economic development, spending habits, living standards and people spending more on discretionary
goods have been driving the growth of hair care segment across the country.

HUL Dove and P&G Pantene have been major players in the shampoo market since last 5 years. HUL
earns revenue of INR 49,693.6 million from the sales of its personal products out of which 30% is
contributed by shampoo sales. HUL provides three leading brands of shampoo in market namely Dove,
Sunsilk and Clinic.

Dove contributes to 21.8% of shampoo sales and has led to increase in HUL revenue sales since 2007
even when sales of other personal products were declining. This has been the result of unique target
segmentation and positioning of dove. From young females target customers were shifted to female
population of all ages and sizes. A very substantial and impressive advertisement campaign is in effect
since 2007 namely- Campaign for Real Beauty (CFRB) thus capturing increasing market share and
attracting more and more consumers.

Dove brand has been actively involved in spreading the message of real beauty among masses and thus
portraying that beauty comes from within inner-self through its commercials and some workshops,
debates, online surveys and other sub-campaigns like daughters campaign, evolution campaign and
self-esteem fund 2008-09. Dove has introduced two specialty effect formulations namely damage
therapy and intense hair care which led to its positioning as an expert formulation in care for hair. Also
dove holds its parity of difference that states that its the mildest and moisturizing shampoo with pH
levels of 6 thus again accentuating its care for hair positioning.

There have been research studies claiming that men too are sensitive to their skin and looks. Taking this
forward and inspired by the message spread by CFRB, a new target segment of men can be entered into.

Thus this report gives existing market analysis and rationale about marketing strategy (segmentation,
targeting and positioning), advertisement activities and strategy, budget allotment, and financial
projections. The expansion scope of this brand is clear by the statistics shown and rationale given thus
justifying the proposal of new market segment of men introduction into the shampoo market.

Rationale for choosing the product


DOVE has a unique segmentation strategy where it targets all women belonging to all ages,
shapes and sizes. To study how it shifted its focus from a narrow segment to a wider segment
and also managed to successfully drive its consumers in a short period of time.
The ad campaign of DOVE has been highly appreciated as it indulged a large range of consumers
i.e. from teenagers to old women to realize that beauty lies in inner self.
To study how HUL has managed to get 8% increase in its market share mainly due to dove sales
when sales of other personal care products declined.
Market Objective
To increase the consumer base and market sales at least upto 15%.(rationale and calculations
mentioned in the report)
Proposing to enter into new market segment i.e. men alongwith maintaining present premium
consumer segments.
To create more awareness about the idea of real beauty among women as well as men through
debates, online surveys, thus adding to the value attributed to ones own beauty.

Year sales (in millions rupees)


2007 2343.79
2008 2521.66
2009 2987.32
2010 3466.62
2011(forecasted) 4309.36

Situational Analysis
Hindustan Unilever Limited (HUL)
Company
HUL is Indias largest FMCG Company with a span of over 75 years. Having 35 brands spanning 20
distinct categories such as soaps, shampoos, detergents, cosmetics, toothpastes, skin care, deodorants,
tea, coffee, ice cream, packaged foods and water purifiers, the Company is a part of the daily life of
millions of consumers across India. Over 16,000 employees and annual turnover of around Rs.19, 401
crores (financial year 2010 - 2011). HUL is a subsidiary of Unilever and leading supplier of fast moving
consumer goods with powerful local hold in more than 100 countries all over the world with annual
sales of about 44 billion for 2011. Unilever has about 52% shareholding with HUL.

Particulars Total Numbers Comments


Brands More than 35 Well established brands
catering to various market
segments
Products More than 250 Huge umbrella of product
family and product line
Direct retail coverage 600,000 Includes both on and off
premise outlets
Household reach 80% Every 2 in 3 Indian uses HUL
product
Shelf availability 84% across India Very deep market reach of
products
Brand: Dove

Doves started off in the US in 1957; is leading brand of Unilever globally. Dove is marketed in 80
countries worldwide with a range of products from lotions, body washes, skin care and moisturising
creams. Dove hair care range was brought to consumers in 1998 in Europe and in 2003 in North
America.

HUL launched the Dove hair care range in May, 2007 which included shampoos, conditioners, and
revitalizing masks. Dove became the fastest growing shampoo brand in the country in a short period of
time of around 13 months. The range claims to deliver the moisture promise of Dove. It has a specific
formulation of chemicals which are mild and soft to the skin composition. Dove enjoys a star position for
damage repair and therapy. Dove has hair care products that repair damage to the hair. The new Zero
Damage System range includes daily therapy shampoo, dry therapy shampoo and conditioner,
breakage therapy shampoo, conditioner, serum and hair-mask.

Competitors
Market Scenario Product Category: Hair Care
The hair care market in India is valued at $200 million with a growth of 3.8% year by year. The hair care
market includes
1. hair oils.
2. shampoos.
3. hair colorants & conditioners.
4. hair gels.
Shampoos
The shampoo market carries a value of Rs 4.5 billion with market penetration level of only 13%
in India. Shampoos are available in the form of shampoo bottles of different volumes as well as
8ml sachets. Sachet makes up to 40% of the total shampoo sale. The shampoo market in India is
divided into:
Cosmetic
Anti-dandruff
More than 50% of the population uses soaps for hair care. The shampoo penetration is only 30% in
metros. The major players in the todays shampoo market are HUL, and Procter & Gamble.

Shampoo market share 2010-11

Total Market Size = 157. 3 million shampoo


22.7%
HUL
users (13% market penetration)
46.2% ITC
HUL Market share = 46.2%
L'oreal India
Others Doves share in HUL shampoo segment = 21.8%
11.5% Dabur
Dove shampoo users = 157.3x0.462x0.218
CavinKare
6.2% = 15.8 million users
7.2%
P&G
3.7%2.5%

Context
Indian hair care is divided into categories

Hair oil

Shampoo/conditioners,

styling products,

herbal remedies and

hair-dyes and colors.

Sachet sales contribute approximately 40%,. Hair care and shampoos targets upper middle class, middle
class and upper class rural customers. Market is expanding to lower class too. Main consumer categories
targeted are women. The usage of shampoo in Indian society has evolved with increasing rate. Today
average usage in Indian population comes out to be2-3 times a week. Use of conditioners is still mostly
in the super premium segment. Indian women require more shampoo as compared to western women
because of thicker texture, longer average. Awareness counts for about 90% in urban areas giving 80%
of total consumption whereas; in rural areas awareness counts for about 80% which is for the remaining
20% of consumption. The growth of different classes in accordance to annual household incomes are
shown below---
Customer
Main benefits provided to customers by DOVE shampooi are - shine, health, strength, anti-dandruff and
herbal. The top three most market covering brands Sunsilk, Dove and Clinic are produced by HUL. The
company holds a 46.2% market share in the Indian shampoo industry. HUL earns almost 8% of its
revenue from the sale of shampoo products of sunsilk, dove and clinic. Unlike the competition by P&GS
PANTENE, Dove has been positioned to suit customer preference andthus result in capturing market and
be a mojor player in this area. Dove defines its market as real women. No supermodels and actresses
are used in advertisement campaigns. Dove gives an emotional and personal touch by showing actual
impact of usage on real women. Dove has used an exclusive and original segmentation strategy by
focusing on mainly the customers. Spending patterns are shown as below:
SWOT Analysis
Strengths
1. Product quality and product variety: Dove offers five varieties of shampoos that cater to
various hair problems which Indian women face. The new technologies researched by Dove
(micro serum and fiber actives) nourish hair and provide extra care to damaged hair. Dove has
now transformed into a Therapy for hair.
The prices of dove shampoos are at par to the other shampoo brands like Pantene, Head &
Shoulders and LOreal. This had lead to higher volume sales for the company.

2. Marketing strategy of Dove: Dove is promoting its products by using the Real Beauty
Campaign. These campaigns make real women as their super models and focuses on real
beauty of women widening the stereotype view of beauty. Thus, Dove focuses on emotional
selling proposition and is gaining popularity in its target segment.

Weaknesses:
1. Feedback available on internet forums: Some of the product feedbacks on internet forums
claim that dove leaves the hair oily after wash and the serum in shampoo does not get washed
from hair which makes the hair brittle.

Opportunity:
1. Growing market opportunities: From the available data the middle class population has
increased from 18% in 1995 to 41% of total population in 2005. This is expected to further grow
till 43% of total population in 2015. The emerging strength of middle class in India also shows an
expected growth in the market potential for shampoo industry.
2. Expansion opportunities: Shampoos for colored hair from LOreal and Garnier Fructis are
available in the market. But, no such shampoo is offered by Dove. Dove can utilize its brand
image to launch a shampoo for colored hair.
3. High product adoption ratio: Within 15 months of its launch Dove had become the fastest
growing shampoo brand in the country. Majority of the women, who tried Dove, appreciated
the product. So, Dove should try to attract more first time users. One of these attempts is the
dove samples available on Cheapfree.com.

Threat:
1. Intense Competition from other brands: The shampoo industry is highly competitive. Pantene,
Head and Shoulders and LOreal are the prime competitors for Dove shampoo. Dove had already
faced the situation of price-wars with Pantene in 2004.
2. Sharing potential market with herbal shampoos: Indian shampoo users still feel that shampoos
contain chemicals that damage hair. So, herbal shampoo brand like Vatika, Nyle and Himalaya
are preferred in comparison with normal shampoos.
STP Analysis
Segmentation
Market segmenting is dividing the market into groups of individual markets with similar wants or needs
that a company divides into distinct groups which have distinct needs, wants, behavior or which might
want different products & services. According to Philip Kotler, Market segmentation is the sub dividing
of market into homogenous subsection may conceivably be selected as a market target to be reached
with a distinct marketing mix. Broadly, markets can be divided according to a number of general
criteria, such as by industry or public versus private.

The concept of market segmentation was first proposed as an alternative market development
technique in imperfectly competitive markets that is, in markets where there are relatively few
competitors selling an identical product. Where there are lots of competitors selling identical products,
market segmentation and product differentiation produce similar results as competitors imitate your
strategic approach more quickly and product differentiation approaches meet market segment needs
more closely. With an increasing proliferation of tastes in modern society, consumers have increased
disposable incomes. As a result, marketers have sought to design product and service offerings around
consumer demand (market segmentation) more than around their own production needs (product
differentiation) and they use market research to inform this process

Since there a large number of competitors in the shampoo market selling almost identical products that
have almost similar attributes and properties market segmentation should be devised for Dove
shampoos.
The figure shows the types of segmentation taking into account various criteria. The relevant
differentiators applicable to Dove shampoo is mentioned below.

Demographic Age The target consumers would be the age class from preteens to
old age. It is commonly observed that there is no much
differentiation in the usage patterns in relation to age even
though the attribute in the shampoos that is sought might vary
within different age groups
Sex Shampoos are used by both men and women although in varying
degrees and frequency
Level of education Dove is a premium shampoo primarily targeted at educated
middle class consumers
Social Class Social Economic classes from B1 particularly the upper middle
class and high income groups would be likely to afford and be
aware of the product.
Geographic The primary consumers would be the Urban middle class and
above. It would not be affordable for rural markets
Psychological Psychographic It tries to change the psychology of an average looking women
that she can look equally beautiful. Some consumers have the
perception that the chemicals in the shampoo render the Hair
dry. The moisturizer concept can be used to address this

Benefits sought Consumers hope to derive a number of benefits like Dandruff


control, Hair Therapy, Oil control through shampoo usage
Behavioral Product usage The products are used on an average of 2 to 3 times per week
among almost all age categories with a slightly higher frequency
for dandruff control
Media usage The media usage of the target customers would be magazines
newspapers and TVs so that communication efforts can be
directed to these channels to cater to the prospective consumers
The insight provided by the market segmentation should be used in conjunction with past data to
initiate the process of STP which in turn would facilitate the marketing plan.

Targeting
The main target market is upper middle class and premium class people (higher socio economic group).
It targets the Indian young women and focuses on real beauty of women widening the stereotype view
of beauty.

The targeting strategy can be presented as division of three aspects: Age, Sex and Lifestyle. The age
group segment of 17-50 years old women (mainly youngsters, Teens and Pre-Teens) who are socially
active with or without job and belong to the premium section of the society.

Age: 17-50
Women
years old

Lifestyle:(socially
active,Premium
class)

Dove shampoo has a potential market at low end consumers; hence it has started to focus on base of
the consumer pyramid (retailing small sachets).

Positioning
1) Point of Parity (POPs)

POPs are generated by the needs of category membership and are desirable by the consumers. These
are to stand up against the advantage of PODs of the competitors and thus build a strong consumer
base for the product. Dove shampoo is available in different sizes in order to fit the consumer budget .It
focuses on Indian hair problems and hence available for different hair types like Intense care for
repairing intense problem of hair fall, Dryness Care for reducing dryness and roughness that can be
caused due to daily exposure to hostile condition etc. These parities help to take care the needs of the
customers as well as better connect the products and the consumers. The POPs can be summarized as:-

Available in different sizes


Available for different hair types
Almost at the same prices
Focuses on Indian hair problems

2) Point of difference (PODs)

i) Relevance:

Target consumers must find the POD personally relevant and important. For Dove hair care products
they position the features as essential to save normal damage that can happen to hair. Its not just a
shampoo its a therapy that repairs your hair & enhances the real beauty in you. Dove Shampoo has
positioned itself as a product of premium quality.

ii) Distinctiveness:

Target consumers must find the POD distinctive and superior. When entering a category where there
are established brands, the challenge is to find a viable basis for differentiation. Dove comes with
features to provide care for preventing damage to hair, reduce dandruff and to arrest normal hair fall.
They create distinctiveness by helping consumers who already have the problems associated hair with
unique solutions developed outside India (and successfully tested).

iii) Believability:

Dove claims it is not just a shampoo its a therapy that repairs your hair & enhances the real beauty in
you which give an emotional selling proposition. It does not use celebrity rather makes regular women
to be its super model which is just different from the strategy used by Pantene shampoo(P&G) where
they make of bollywood film stars like
Sushmita Sen, Katrina Kaif etc. This helped the Dove shampoo better relate to the young women and the
targeted customers. Dove shampoo claimed to make hair three times stronger as well as smoother and
softer than other shampoos available in the market. The PODs for the Dove Shampoo can be
summarized as:-

Three times stronger, smoother & softer hair.


Focuses on emotional selling proposition
Its not just a shampoo its a therapy that repairs your hair & enhances the real beauty in you.
It does not use celebrity rather makes regular women to be its super model.

Positioning Statement

To women (age: 17-50) Dove


(Target group and need) (Our product brand)

is widening the stereotype of beauty among all premium shampoos

(Single most important claim) (Competitive frame)

because beauty is beyond age, size or shape.

(Single most important support)


Marketing Action Programs
Product
Product Variety Five varieties of Dove shampoos are available in the market. These treat
various hair problems like split ends, hair fall, dullness and dryness of hair.

1. Dove Hair Fall Rescue: As per the researches by Dove, on an average a woman looses 100
strands of hair in one day. Dove has innovated Dove hair Fall Rescue to reduce the hair
fall from 100 to just 2.

2. Dove Intense Repair: Dove Intense Repair makes the hair stronger by repairing accumulated
hair damage which is the prime reason for hair fall and hair breakage.

3. Dove Daily Shine: Hair get damaged daily due to the pollution and improper care. Dove
Daily Shine guards hair from daily damage and Makes Normal Hair Beautiful.

4. Dove Dryness Care: Dove Dryness Care has been especially formulated to provide soft
smooth hair with less fly.
5. Dove Dandruff Care: 20% of shampoo market, nearly 186 crores is only for anti-dandruff
shampoos. Dove has designed Dove Dandruff Care that treats dandruff with the
combination of ZPTO and micro-moisture serum.

Quality-
1. Rich delicate foam
2. Pleasant fragrance
3. Remove dandruff efficiently
4. Have moisturizing effect
Features: Dove has developed a superior range of hair damage repair solutions. It was possible
only because of the successful researches of Dove that brought a change in the technology for
shampoos.
1. Fiber-actives
2. Patented Micro-Moisture Serum
3. ZPTO for Dandruff treatment
Brand Name - Doves logo is an outline of the bird Dove representing nurture and care.
Packaging - is quiet thoughtful and attractive.
Sizes- Available in sizes of 8 ml; 100 ml; 200 ml and 375 ml

Price

PRICE (INR)
8ml 100ml 200ml 375ml
Dove Hair Fall 3 64 117 205
Rescue
Dove Intense 3 64 117 205
Repair
Dove Daily Shine 3 64 117 205
Shampoo
Dove Dryness 3 64 117 205
Care
Dove Dandruff 3 69 134 215
Care
Place:
Distribution Channel:
For dove, HUL has 2.8 mn distinct outlets with directly servicing 1 million stores and 7000 stockists and
distributers.

The schematic diagram of the distribution channel followed by the Hindustan Liver Limited is as follows:-

Dove
SHAMPOO(HUL)

CFA

STOCKISTS

MODERN
CSD RETAIL OUTLET
TRADERS

CUSTOMERS CUSTOMERS CUSTOMERS

Sales & Distribution Network of Hindustan Unilever (HUL)

A marketing channel is a tool for the movement of goods from producers to consumers. It plays an
important role in decreasing the time, place, and possession gaps resulted due to the separate goods
and services from the people who need and use them. A number of key functions taken care by the
members of the marketing channel like forward flow of activity from the company to the customers like
goods and backward flow from customers to company like order, Payment etc.
Hindustan Unilever transfers the finished goods to Carrying and Forwarding Agents (CFA). Stockists
receive the goods from respective CFA. Stockists then in turn indirectly deal with the Retail outlets from
where consumers get the desired product according to their convenience. This is how the HUL reaches
to consumers. On an average each Stockiest caters to 700-900 retail outlets of the city. CFA can be
classified into 2 types:
1) With investment.
2) Without investment.
The without investment CFA are mere the Forwarding agents and act as the transporter to the company.
Then depending upon the type of products, sales, turnover and the number of retail counters a stockist
is dealing with, the company has classified the stores into:

1) Super Value Stores


2) Smart /FLO
3) Unicare
4) Vijeta
The stockist apart from retail outlets deals with Modern retail outlets like shopper stop, pantaloon etc.
The stockist also supplies the goods to CSD Canteens and bills them for the same and the difference in
the amount is reimbursed by the company

Sales force behind the Distribution channel


The successful functioning of the distribution channel depend upon having a good and dedicated sales
force. In the case of HUL (in a particular region) the sales are coordinated by Area sales manager (ASM),
Activation Manager (AM), and a Territory Sales In charge (TSI). These people are working on behalf of
HUL and are a Link between the stockist and the company. The goods moves to the stockists go-down by
the companys Truck. The stockist then appoints a (Re Stockist Salesman) RSSM who is required to
collect the orders & payments from the retail outlets. The delivery is made by either cycle or through a
van depending upon the size of the order. The lead time for delivery from the company is 1 day. The
orders are also placed online using the CRM software of Unilever called UNIFY

Evaluation/ Selection of Channel Members


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. Companys 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
shampoos.

Promotion
From 1995 to 2007, DOVE used to target young Indian population with the projection of its brand aiming
at perfect female population. The brand earlier portrayed its main theme for perfect women as role
models. Main objective was to form a brand image of leading and best brand for beauty products and
other personal care products enriching the skin with glow and maintaining beauty of beautiful women.

Advertising
Mission:

In 2008 mission of DOVE changed from increasing sales among beautiful women to concentrating over
all age women without any categorization on the basis of looks. Its mission now stated to make
women feel more beautiful every day by challenging todays stereotypical view of beauty and inspiring
women to take great care of them.

Money:

The stage in PLC is augmented product stage where this product has come up with sensitive
augmented benefits like- damage therapy for hair and intense therapy for hair care.
Market share:

Dove enjoys the market share of 46.2% of total shampoo users of Indian population.
Total shampoo users= 13% of 1.22bn=15.8 cr
HUL users= 46.2 % of 15.8 cr= 7.29cr
DOVE users=21.8% of 7.29cr=1.58cr
Message:

Message generation and selection: as a result of surveys and research it was found that-
90% of all women 15-64 worldwide want to change at least one aspect of their physical
appearance (with body weight ranking the highest).
67% of all women 15 to 64 withdraw from life-engaging activities due to feeling badly about
their looks (among them things like giving an opinion, going to school, going to the doctor).
61% of all women and 69% of girls (15 to 17) feel that their mother has had a positive influence
on their feelings about themselves and their beauty.
91% feel the media and advertising need to do a better job of representing realistic images of
women over 50.
97% believe society is less accepting of appearance considerations for women over 50
compared to their younger counterparts, especially when focused on the body.
Nearly 60% of women believe that if magazines were reflective of a population, a person would
likely believe women over 50 do not exist.
87% of women believe they are too young to be old.
Message execution:

Message is executed by various advertisement strategies that no more included beautiful and
slim models but the actual users- average looking woman. It launched Dove Campaign for Real Beauty
(CFRB) as its advertising campaign. It included following as its parts at different time periods to create
awareness about the recent changes-

1) Daughters campaign: this was a sub campaign under CFRB which focused on young teenage
girls who are sensitive about the way their looks are evolving with age. In the TV commercials
and audio visuals young girls with different looks and different perceptions about their looks
(spotty, fat, dull, pale, dark) were showed along with them gaining confidence as they look
different and de-relating looks with self esteem or glamour.
2) Evolution is a campaign: it captured one of the first online- focused spot by any company.
It derived its budget from daughters campaign. It aimed at providing as much exposure as
possible to women through online means.

3) Dove self esteem fund: it included inspiring advertisements during major live events like Super
Bowl where women were inspired to value the way they look and the way they perceive their
looks.
4) Study voice: in voice, dove was advertised to gain attention of urban class as a premium
product.

Thus main strategy was shifted from concentrating over the product to concentrating over the target
customers- women of all ages and size. The message to be spread among them was that each woman is
beautiful, irrespective of her age or size.
Media:

Major media types used in advertisement campaigns are-

Print media
Tv media
Online media: www.campaignforrealbeauty.com is the website available for woman for their
information and cast their votes on the questionnaire given. Online dialogues are also brought
up through blogs and discussion boards, research studies about beauty, reading articles and
opinions of the users.
Billboards: Dove placed mobile billboards in major cities. Each billboard challenged women's
notions of beauty by encouraging them to cast their votes online.

Sales promotion: activities related to sales promotion included

Free trial packs which were distributed along with newspapers to have a larger reach to the
population for creating high level awareness.

Being a premium brand, DOVE has never been using coupons or samples as its promotional strategy. It
positions itself as a urban (upper) class brand amongst HUL hair care brands. It formerly targets working
class and upper class women. Thus providing cash refund offers or price packs, samples or free trial
packs can harm its standard and image in the mind of consumers.
Implementation
Budget

Table Forecast for the marketing Expenditure

In millions INR Quarter 1 Quarter 2 Quarter 3 Quarter 4


Sales of Dove Shampoo 1013.45 1055.00 1098.26 1143.29
Media Advertising 50.17 (33%) 44.31 (28%) 41.18 (25%) 39.44 (23%)
Salary (Sales team) and Administrative 38 (25%) 39.56 (25%) 41.18 (25%) 42.87 (25%)
Expenses
Sales Promotions 33.44 (22%) 31.65 (20%) 32.94 (20%) 34.3 (20%)
Interactive marketing 12.16 (8%) 18.99 (12%) 21.41 (13%) 24.01 (14%)
Brand/PR sponsorship 18.24(12%) 23.73 (15%) 28.01 (17%) 30.87 (18%)
Total Marketing Expenditure 152.02 158.25 164.74 171.49
Marketing Expenditure as a percentage of 15% 15% 15% 15%
sales

Activity Schedule:
Activities Planned Duration of the Activity Budget in INR
Promotional campaigns at Kitty Sponsoring 100 events per year in 20,000* 100= 20,00,000
Party groups key metros for publicity through
word of mouth
Sponsoring events in Girls Sponsor around 15 events over 3,00,000*15=45,00,000
Colleges the year
Experience Dove Campaigns at 5 such events in malls spread in 85,000*5*5*20=4,25,00,000
Malls in cities various zones in the cities

Launch online hair help Ongoing - Hair experts in Dove 1,00,00,000


portal(Promotion) should answer the queries daily
Advertising Campaign #1 To be aired for 3 months starting 15,00,00,000
15th Oct 2011
Advertising Campaign #2 To be aired for 9 months starting 10,00,00,000
15th Jan 2012
Market survey To find out To be conducted 3-4 months later 1,00,00,000
brand/ product awareness
Collaborate with e-bay for Within the next 3 months 4,00,00,000
selling Dove shampoos online
Workshops for self-esteem Every 4months 15,00,00,000
Financial Projections:

Current financial position calculated:

Average usage per consumer = 2.3 times a week

Volume per usage = 8 ml (approx)

Weighted Price per usage of shampoo= Rs. 4.2

No. of dove users = 15.8 million (reference page 4)

Revenue earned = 55% of total revenue (assumed excluding distributors wholesaler and retailer margin
+ adv expenses)

Yearly Revenue generated = 2.3x4(weeks)x12(months)x4.2x15.8x0.55 = 3678.99 million INR

Present Scenario:

Dove Revenue in million rupees


4000

3466.62
3500
2987.32
3000
2521.66
2500 2343.79

2000
Revenue in million rupees

1500

1000

500 Data monitor: HUL


annual report
0
2007 2008 2009 2010
Proposed Plan:

Market growth over previous year = 3.8%

HULs growth rate over previous year = 5.3%

Projected dove shampoo users = (157.3x1.038) x (46.2 x 1.053) x (21.8)

= 17.31 million users

Yearly revenue projected = 2.5x4(weeks)x12(months)x4.1x17.31x0.55

= 4309.36 million INR

Projected revenue from sales


5000
4500 4309.35912

4000
3466.62
3500
3000
2500
in million INR
2000
1500
1000
500
Growth % = 17.13%
0
2010 2011
%
New venture
With a growth rate curving upward, the Indian hair care market is going through a major paradigm shift.
There is such huge potential that major Indian manufacturers are now relaunching hair care brands.

The change is visible at two levelsconsumer behaviour and marketers trying to grow the market by
introducing new product categories and services.

Men are fast emerging as a separate consumer category in a market traditionally dominated by women.
The change in the buying pattern includes men looking for care and styling products that cater to their
specific needs. A growing number of men go for shopping on their own with more income in their hands
to be spent on personal care products due to demographic features such as the rising number of single-
occupancy households, as consumers delay committing to marriage and children.

The proposed plan is to enter into a new market segment i.e. men. There is a huge potential for this
segment as inferred from the survey given.

APPROPRIATENESS of mens new market segment:

Mild and moisturizing combo composition (pH=6)

Hair care is meant for men as much as it is meant for female population.

CFRB can support Men in a substantial way as men are also sensitive about their looks as
verified by.

Men consider anti-dandruff as an important attribute in a shampoo to be cared about more


than women.

How to tap this new market segment:

Include men (average looking, not celebrities) into advertisement campaigns.

Create awareness of advantages and rationale for dove products to be used by men.

There is enough value proposition in the product hence there could be a potential opportunity
to cater the mens segment.

Dove has already introduced its mens segment in US.


Annexure:
Market Survey
We have done a market survey of 53 people at IIMK. Based on their response we have obtained the
following data:

4% Dove

17% H&S
none 21% 23%
2 to 3 times
Pantene
3 to 4 times 15%
28% 51% 17%
> 4 Times Clinic all
24% clear
Others

Shampoo usage per week Shampoo Brands usage

Damage
17% therapy
23%
Softness 36%
yes
24% Dandruff no
removal 64%
36%
Gloss and
Shine

Shampoo Attributes importance Price justification of Dove shampoo

19%
19% Cost
26%
Yes
Advertisement 49%
No
Reference
32% Indifferent
23% Product Value 32%

Influencing factor on buying decision Should Dove go for Men's Segment?


Findings:

1. General usage of shampoo per week is 2 to 3 times by majority (51%) of users. Average usage
taken into the calculations of current financial position is 2.3

2. HUL and P&G are the major players in shampoo market for the premium segment users. DOVE
and PANTENE are major competitor brands and have maximum market coverage in todays
date.

3. Most important attribute considered for using a shampoo is dandruff removal followed by
softness of hair.

4. Majority of the users are satisfied with Doves current pricing. Rationale: As DOVE covers a
working and upper class target segment the sachets and bottles are priced at one of the highest
in shampoo market. Market penetration into lower class and rural segments is intentionally kept
untapped due to brand image of dove to be maintained as a premium brand.

5. Advertisement is major influencing factor into surge in the sales of dove with launching of real
beauty campaign as its new advertisement strategy.

6. The review favors (49%) Doves venture into mens market. The impression created over the
minds of consumers is positive towards dove due to dove implicating mild and moisturizing
brand.

References
http://360.datamonitor.com

www.scribd.com

http://www.hul.co.in/Images/HUL_Annual%20Report_%202010-11_tcm114-268010_tcm114-
268010.pdf

http://www.dove.in/

www.mckinsey.com/

http://economictimes.indiatimes.com/hindustan-unilever-ltd/finishedproducts/companyid-13616.cms