Professional Documents
Culture Documents
Project
Presented to the Faculty of the
School of Management & Entrepreneurship
AURO University, Surat
In Partial Fulfilment
Of the Requirements for the Degree of
Master of Business Administration
Submitted by:
DIVYA LOHIYA
Submitted to:
Mr. S.P RATH
January 2015
Auro University
competitors analysis, Surat
TABLE OF CONTENT
Sr. No.
Topic
Page No.
Abstract
Chapter 1: Introduction
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Chapter 2: Research Methodology
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Chapter 3: Market share analysis
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Recommendation
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Bibliography
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competitors analysis, Surat
Abstracts
Unilevers Dove is the worlds number one cleansing brand in the health and
beauty sector with sales of over $2.5 billion a year in more than 80 countries. It
competed in categories that included cleansing bars, body washes, hand washes,
face care, hair care, deodorants, anti-perspirants and body lotions. It competed
with brands like Procter and Gambles Ivory and Beiersdorfs Nivea.
The competition is high in FMCG sector, personal care product segment. HUL
has given tough competition by P&G, Nivea and many more brands. Johnson &
Johnson has now also entered into facewash and other products as well through
Clean and clear brand name. The consumer switching from Dove to its
competitors Johnson & Johnson.
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competitors analysis, Surat
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competitors analysis, Surat
14.7 per cent to touch US$ 110.4 billion during 2012-2020, with the rural
FMCG market anticipated to increase at a CAGR of 17.7 per cent to reach US$
100 billion during 2012-2025.Food products is the leading segment, accounting
for 43 per cent of the overall market. Personal care (22 per cent) and fabric care
(12 per cent) come next in terms of market share.
Growing awareness, easier access, and changing lifestyles have been the key
growth drivers for the consumer market. The Government of India's policies and
regulatory frameworks such as relaxation of license rules and approval of 51 per
cent foreign direct investment (FDI) in multi-brand and 100 per cent in singlebrand retail are some of the major growth drivers for the consumer market1.
UNILEVER
Unilever is a British-Dutch multinational consumer goods company coheadquartered in Rotterdam, Netherlands, and London, United Kingdom. Its
products include food, beverages, cleaning agents and personal care products. It
is the world's third-largest consumer goods company measured by 2012 revenue,
after Procter & Gamble and Nestl. Unilever is the world's largest producer of
food spreads, such as margarine. One of the oldest multinational companies, its
products are available in around 190 countries.
Unilever owns over 400 brands, but focuses on 14 brands with sales of over 1
billion euros - Axe/Lynx, Dove, Omo, Becel/Flora, Heartbrand ice creams,
Hellmann's, Knorr, Lipton, Lux, Magnum, Rama, Rexona, Sunsilk and Surf. It is
a dual-listed company consisting of Unilever N.V., based in Rotterdam, and
Unilever plc, based in London. The two companies operate as a single business,
with a common board of directors. Unilever is organised into four main
divisions - Foods, Refreshment (beverages and ice cream), Home Care, and
Personal Care. It has research and development facilities in the United Kingdom,
the Netherlands, China, India and the United States.
1 http://www.ibef.org/home/search
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Company Profile
Dove
Dove is Unilever's biggest personal care brand, and certainly one of the group's
most high profile brands in recent years as the result of a clever marketing
campaign that has consistently generated headlines and accolades since 2004.
Originally positioned in the 1990s as a rival to P&G's Olay, Dove has since
moved into less directly competitive markets such as deodorant and hair care,
and has established a unique niche as arguably the beauty industry's most downto-earth, or "real" master brand. In 2014, Kantar's Brandz ranking placed Dove
as the world's 8th most valuable personal care brand, with an estimated value of
$4.8bn, below Nivea and Clinique but above Olay.2
Dove's sales were around E3bn globally in 2011, according to figures released
by Unilever at the end of that year, and the brand is available in around 100
countries worldwide. Growth was rapid and dynamic in the 1990s and 2000s but
has slowed significantly the recent years. At the start of the 1990s, the brand
existed only as a soap bar in the US. In 1991, thanks to several years of
relentless and aggressive marketing, Dove propelled Unilever into the position
of the #1 bar soap manufacturer in the US, toppling Procter & Gamble. Over the
next ten years, Unilever progressively rolled the brand out worldwide,
introducing a host of spin-off products.
2 Dove advertising & marketing profile (subscriber access). 2015. Dove advertising & marketing profile
(subscriber access). [ONLINE] Available at: http://www.adbrands.net/us/dove_us.htm.
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The steepest growth occurred between 1998 and 2002 with the launch of Dovebranded deodorants and haircare products, and a massive global rollout. In 2002
alone, for example, the Dove haircare range was introduced in 31 new countries
around the globe. Sales topped E1bn in 2000, and E2bn three years later.The
Dove brand now serves as an umbrella for products in four main groups - bar &
bodywash, deodorants, skincare lotions and hair care - and more than 100
different lines including facial wipes, firming lotions, shampoos, body washes,
anti-ageing cleansers, skin nourishing treatments, underarm deodorant, and
several varieties of bar soap. The main Dove brand has also given rise to a set of
spin-off ranges such as Dove Firming (to reduce the appearance of cellulite),
Dove Silk (a moisturizing range containing pure silk), Dove Fresh Touch, Dove
Pro-Age (for "mature" skin and hair), and Dove Summer Glow (with selftanning agents), launched at the end of 2006.
In particular, Dove has attacked segments already dominated by other
manufacturers, such as facial skincare, hair care and deodorants. This has led to
an escalating rivalry with Procter & Gamble's Olay and Johnson & Johnson's
Neutrogena. Both those products have reciprocated with their own rolling series
of brand extensions. In 2001 the group introduced Dove anti-per spirants in the
US, and a shampoo and conditioner line in Asia. Dove hair care products arrived
in the US in late 2002, backed with a $110 marketing launch, as well as 30 other
countries around the globe. In 2003, the company launched Dove Essential
Nutrients facial and body moisturizers in the US market, with a further $50m of
spend. Dove Hair Damage Therapy was a significant new product launch in
2011.
However, with few remaining gaps left in the women's personal care market,
Dove has turned its attention to men. A new line of Dove Men Care products
was launched in 2010, and has been similarly extended into multiple categories
such as skincare, deodorants, hair care and shaving products.
Dove remains the leading bar and liquid soap brand in the US, and the clear
market leader in body wash with around 24% share. However Olay retains the
lead in facial skincare and moisturizers. It was quicker to spin off new products
in the early 1990s, and as a result the full Olay range outsells the Dove range in
the US, although Dove is bigger in the global market. Olay leads by a small
margin in the body wash category, although its lead is much reduced since the
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mid-1990s. Dove's top five markets in 2002 were the US, Japan, UK, Korea and
Brazil. Around 60% of combined sales were generated by Dove cleansing
products, with the remaining revenues more or less equally split between hair,
deodorant and care products.
According to Advertising Age/Kantar figures, Dove has been Unilever's highestspending brand in the US for several years, with measured media expenditure in
2013 of $195m, roughly three times any other group brand, and representing
almost a quarter of the group's total measured ad spend. The brand's marketing,
presented under the banner of Campaign for Real Beauty, and developed by
multiple different offices Ogilvy & Mather, has generated headlines and
accolades around the world. For the UK launch of Dove Body Firming in 2004,
for example, Ogilvy recruited a group of real women with normal, nonsupermodel shapes and persuaded them to strip down to underwear for the
cameras. The resulting posters were enormously popular, and were adapted
locally for each international market. The same concept has been extended
across the other products in the range.
In 2006, promotional film Evolution, created by Ogilvy Canada, generated
considerable media attention for the brand and went on to win a Grand Prix in
the film category at the 2007 Cannes Lions advertising festival. A follow-up,
Onslaught, was less well received. Unilever was subsequently caught in a media
crossfire, accused of hypocrisy because its advertising for another brand,
Axe/Lynx, tended to present women as little more than sex objects, apparently
contradicting the "real beauty" message put forward by Dove's marketing. In
2008, the brand was again the subject of unflattering headlines after comments
in an interview with a celebrated photographic artist who had worked on
elements of the campaign were misrepresented to suggest that images of the real
beauty women had been retouched. This was strongly denied by all concerned
with the ads.
Later in 2008, there were reports that, despite the huge volumes of PR associated
with "real beauty", it had not led to a proportionate increase in sales. Mid-year,
Unilever was said to be considering a change in its marketing to focus once
again on the core product values rather that a more indirect emotional
message. Instead, the "real beauty" concept has evolved into a campaign to
support self-esteem among girls and younger women through charitable
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initiatives. One of the more high-profile recent initiatives was the 2012 launch of
The Dove Ad Makeover, an online campaign originated by Ogilvy in Australia
and the UK, to crowd out Facebook ads that prey on women's insecurities with
Dove-sponsored "feel good" messages.
In early 2009, Unilever began exploring a new strategy in China, where the "real
beauty" concept had never caught consumer interest. The group acquired local
rights to the format of American comedy series Ugly Betty, and remade it for
Chinese television (as "Ugly Wudi") with heavy product placement of Dove and
other group brands. The creation of a new advertising campaign for the Dove
brand was a key plot point running through several episodes.
Product lines:
Products include: antiperspirants/deodorants, body washes, beauty bars,
lotions/moisturizers, hair care, and facial care products. Dove is primarily made
from synthetic surfactants, vegetable oils (such as palm kernel) and salts of
animal fats (tallow). In some countries Dove is derived from tallow and for this
reason it is not considered vegan, unlike vegetable oil based soaps.3
Compititors
3 Product information on the internet. 2015. Product information on the internet. [ONLINE] Available at:
http://pioti.unilever.com/pioti/en/p2.asp?selectCountry=UK&language=EN
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The brand competes fiercely with Procter & Gamble's Himalaya Herbals,
Beiersdorf's Nivea and Johnson & Johnson's Neutrogena, all of which have a
similarly broad product range. A new line of Dove for Men products was
launched in 2010
1. Himalaya Herbals
2. Neutrogena (Johnson & Johnsons)
3. Beirsdorfs (Nivea)
The testimonials did have the desired effect and soon the gentle effect that Dove
had on skin was being recommended for babies as well in a way, baby care
major Johnson & Johnson was finding an unlikely contender in Dove.
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Clean & Clear is a line of dermatology products owned by Johnson & Johnson.
The products are similar to their Neutrogena line (which J&J bought in 1994),
but less expensive.
Most of the products are for the skincare of young women, but some treat a
wider range of conditions, such as the "SOFT" line, focused on facial
moisturizing. Clean & Clear is currently available in 46 countries
Clean & Clear Fairness Face Wash is a product of Johnson & Johnson from the
U.S.A. It contains natural ingredients such as multivitamins and cherry extracts
that remove oil and dirt off the skin and give a rich and more glowing skin.
Nivea is a global skin- and body-care brand that is owned by the Hamburg based
company Beiersdorf AG. The company was founded on March 28, 1882, by
pharmacist Carl Paul Beiersdorf. In 1900, the new owner Oskar Troplowitz
developed a water-in-oil emulsion as a skin cream with Eucerit, the first stable
emulsion of its kind. This was the basis for Eucerin and later, Nivea.
Nivea comes from the Latin word niveus/nivea/niveum, meaning 'snow-white'
A unisex product, equally well suited to men and women, Nivea Sparkling Glow
Fairness Face Wash is another one of the most poplar and widely used face wash
products in India. It provides necessary moisture, softness and freshness to one's
skin.
NiveaIndiaPvt.LtdstarteditfullfledgedoperationsinIndiain2006withits
headquartersbasedinMumbai.NiveaIndiaisanassociateofBeiersdorfAG,
whichisaworldwidegiganticcosmeticbrand.
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RakshitHragaveisthecurrentManagingDirectorofNiveaIndiaPvt.Ltd.,who
joined the group this February, 2011.Nivea India is now making out an
aggressive growth program which will concentrate on tieups with contract
manufacturingenterprisesmeanttoboostitsproductioncapacityinIndia.
While the company did not reveal latest sales figures, in 2013 Nivea India sold
about 60-70 million units, importing nearly 60% of this. The company expects
to reduce imports by half once the factory goes on stream, its company officials
had said during the groundbreaking ceremony in June 2014.
Beiersdorf had sales of EU6.3 billion in 2014. Nivea is the flagship brand in its
portfolio, which also includes brands such as Eucerin, La Prairie, Labello, and
Auro University
competitors analysis, Surat
Statistics
The Micro sector is Surat, India and the Macro sector is Global
Unilever is a multi-national consumer goods company that produces food,
beverages, cleaning agents and personal care products. In 2014, the Unilever
Group had a global revenue that amounted to about 48.44 billion euros. The
largest product segment of the Unilever Group is their personal care segment,
which accounted for 37 percent of the companies global revenue share and
generated approximately 17.74 billion euros in 2014.4
In India, Dove has grown by 100% in shampoos and by 42% in soaps. Now
the Dove portfolio delivers Rs 400 crore in sales. Of this, the soap, or
cleansing bar, as HUL executives would call it accounts for only Rs 200 crore.
Apart from distribution in modern format stores, where Dove claims to be one
of the leading brands with 11.54% share, the brand has also entered adjacent
categories. In body washes, Dove claims to be nearly 19% of the market, while
hair conditioners gets the brand sales of around Rs 40 crore.5
The Indian soap market is ruled by three major giants; Hindustan Unilever
Limited, Godrej and Nirma. These three companies alone account for 88% of the
total market share in India. H.U.L. Nirma another top soap brand in India is one
of the major competitors of HUL and holds a 15% market share in the Indian
soap market. 6 TheoverallsoappenetrationinIndianhouseholdsis98%.
On September 16, 2015, Hindustan Unilever closed at Rs 806.60, up Rs 1.85, or
0.23 percent. The 52-week high of the share was Rs 979.00 and the 52-week low
was Rs 708.00. The company's trailing 12-month (TTM) EPS was at Rs 19.95
per share as per the quarter ended June 2015. The stock's price-to-earnings (P/E)
ratio was 40.43. The latest book value of the company is Rs 17.21 per share. At
4 Unilever - Statistics & Facts | Statista . 2015. Unilever - Statistics & Facts | Statista . [ONLINE] Available at:
http://www.statista.com/topics/1397/unilever/.
5 http://articles.economictimes.indiatimes.com/2009-10-07/news/27642060_1_dove-toilet-soap-brand-haircare
6 http://business.mapsofindia.com/top-brands-india/top-soap-brands-in-india.html
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7 http://www.moneycontrol.com/news/business/hul-eyes-13-market-shareshampoos-by-fy13_598294.html
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CHAPTER 2
Research Methodology
100 Consumers
10 Retailers
5 Distributors
5 Experts
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Secondary
data
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CHAPTER 3
Market Share
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The fast moving consumer goods (FMCG) segment is the fourth largest sector in
the Indian economy. The market size of FMCG in India is estimated to grow
from US$ 30 billion in 2011 to US$ 74 billion in 2018.
Food products are the leading segment, accounting for 43 per cent of the overall
market. Personal care (22 per cent) and fabric care (12 per cent) come next in
terms of market share.
Growing awareness, easier access, and changing lifestyles have been the key
growth drivers for the sector
Personal care has evolved over the years as a key business category for the
company. Last year, the segment contributed around 40% to turnover. It has
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8 http://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-suppliesliquor/himalayas-personal-care-contributes-40-to-turnover-face-care-tops-future-strategy/35381975
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CHAPTER 4
Future scope
Sales of the soap have been growing at over 40 per cent annually and the
recently launched shampoo variant at 100 per cent. Dove is now almost a Rs 500
crore brand, with soaps accounting for around half of that figure. The rest comes
from hair care, a category launched two years ago. On the market share front,
Dove has a 3.5 per cent share in metros. In modern-format stores, it leads with a
share of 11.54 per cent.
HULs other soap brands like Liril, Lux and Lifebuoy, which have undergone a
series of relaunches, Dove has remained constant. Though it has gone in for
brand extensions such as shampoos and deodorants, the brands core advertising
proposition and premium positioning has remained the same.
Heres a pointer to why HUL thinks Dove has a great future. On the LSM scale
of six and above, Indias market is about 100 million strong and that number is
far bigger than the population of some European countries. The skin-cleansing
category was more than Rs 7,700 crore in 2008, recording a growth of 11.8 per
cent. Within this category, the premium price segment is leading the pack with a
15.3 per cent growth rate.
The performance is creditable considering that at the time of its launch in India
nearly 15 years back when everything was priced low HUL launched
Dove that was double the price of any other premium brand. Pricing did put off
customers initially and questions were raised about the soaps longevity
The competitors are giving tough competition. With rising demand in the
personal care segment, ITC, Garnier, Pond's and others are in fierce competition
to explore new markets and products as they seek to win more customers.
Bangalore-based Himalaya Drug Co., which clocked sales of more than Rs
1,200 crore in FY14 and aims to be a billion dollar company by 2020, is also
betting big on its consumer product division. The company has been exploring
the male grooming market.
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Recommendation
Dove as one of ten brands with the greatest percentage gain in brand health and
business value in the past three years. It computed that the brand had grown by
$1.2 billion. Much of the growth was attributable to its extension into new
personal care categories, and exactly how much could be credited to The
Campaign for Real Beauty was not a question anyone had evidence to answer.
What was clear, however, was that the campaign had touched a nerve with the
public
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BIBLIOGRAPHY
Unilever - Statistics & Facts | Statista . 2015. Unilever - Statistics & Facts
| Statista . [ONLINE] Available at:
http://www.statista.com/topics/1397/unilever/.
Dove flies high on new route | Business Standard News. 2015. Dove flies
high on new route | Business Standard News. [ONLINE] Available at:
http://www.business-standard.com/article/management/dove-flies-highon-new-route-109101500017_1.html.
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