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Branding Strategies in Consumer Goods Elective Course for MIB-CEMS Prof. Jan-Philipp Buechler

Dove Men+Care Simon Eckert Paris, 19-Nov-12

Dove Men+CareOur vision is to extend the Dove brand promise and expertise of superior care to men [...] theres a huge gap in the market as there are currently no toiletry brands specifically catering for more mature men, which the new Dove Men+Care range is set to fill. Paul Connell, Brand Manager, Unilever UK

1 The global male grooming marketProduct categories like mens facial skin care and grooming tools electric shavers, trimmers and home hair clippers are said to be amongst the largest growth drivers in the personal care industry, boasting an overall sales growth of 12 per cent up from 9 per cent in the last twelve month alone. Hair care products are also gaining popularity as leading marketers such as P&G, and Unilever begin to offer a plethora of hair care products across relevant categories. Multi-functional and technologically advanced products are also doing well due to the convenience of having a number of benefits in one product while the use of natural ingredients is another rising trend, especially those with fewer natural ingredients, but higher efficacy. According to a market researcher at Kline, men are increasingly using skin care products such as anti-aging creams, eye creams, energy-boosting serums, tinted moisturizers, blemish balms, and hand and body lotions as a part of their everyday routine. The segments growth is due to a wider range of consumers opening up to and becoming comfortable with the idea of male grooming, technologically advanced products, innovative packaging, and clever marketing strategies targeting consumers exclusively. According to Kline & Company, sales of mens cosmetics and toiletries in the U.S. could hit US$ 3.2 billion by 2016, up from an estimated US$2.6 billion this year and US$ 2.2 billion in 2006. As far as the European market is concerned, sales of skincare products have boomed from 289 million euros in 2005 to 420 million euros in 2010 in the continents five biggest markets - France, Germany, Italy, Spain and UK - according to Mintel. The surge in sales is also affecting new markets. With an expected sales volume of nearly RMB 10 Billion (~ USD 1,6 bn) by 2014 which signifies and increase of more than 20% especially the Chinese sector stands out in the male grooming industry. According to a study by RNCOS male consumers in China are ready to spend more on cosmetics products due to the rising affluence, increased product knowledge and exposure, and desire for better lifestyle.

Currently, the hair care segment is dominating the market, however, with the introduction of innovative products, the skin care section is to see rapid growth in the future. Going forward, it seems immanent that manufacturers ensure they are marketing their products the right way in order to get the most out of the markets potential if the sector is to continue to do well (Yeomans, 2012). Although in Figure 1-1 a growth trend can be seen already, the male grooming segment bears significant further potential to be exploited. Saatchi & Saatchi strategy director Huntington points out that marketers are still far more informed about womens industry and their needs, while not even having scratched the surface when it comes to men (MaryLou Costa, 2010).

Global Retail Value in mio $35000 30000 25000 20000 15000

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Figure 1-1: Euromonitor Beauty and Personal Care (2012): growth in male grooming market Promotions seem to be a popular (and logical) approach of targeting men, particularly with product launches, as the mens skin care industry is currently more elastic than the female equivalent. Unilever used this approach when they introduced the Dove Men+ skincare range in January 2010; they had 34 offers on the range between its launch and June that year (Ankutse, 2011).

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Global Brand Market Share Male Grooming in %

Global Company Market Share Male Grooming in %Procter & Gamble Co

Gillette 30,4 Nivea L'Oral Paris 62,1 5,4 1,7 0,4 Dove Other 3,5 5,6 5,8 12,8 39,0 33,3

Unilever Group Energizer Holdings Inc Beiersdorf AG L'Oral Group Other

Figure 1-2 and Figure 1-3: Euromonitor 2011. While Procter & Gamble is clear market leader with Gilette in the male grooming industry, men's toiletries are set to overtake sales by 2014. The shaving category's slowdown can be attributed to the "three-day beard" trend, causing men to shave less often. Growth in men's toiletries is due in part to skin care, the most dynamic category in men's grooming. Deodorants are also boosting revenues, with innovations such as additional moisturizing properties, as well as an increasing alignment with fragrances both driving sales (Ibid.).

2 Doves growth strategyDove a flagship brand of the Unilever company had its origins in the US during the postWorld War II era. Dove introduced its first product a beauty bar in 1957, which claimed not to make the skin dry as soaps did. Ogilvy and Mather created the advertising campaign for the product launch. The message was Dove does not dry your skin because it is one-quarters cleansing cream. Dove soon went on to become a popular brand icon in the US. As the brand grew, there were minor changes in the message with cleansing cream being replaced with moisturizing cream. But the overarching theme was still that it did not dry skin for over 40 years. During the 1980s, Dove became the leading brand of cleansing through endorsements from dermatologists and physicians. Throughout the 1990s, Dove extend its product line by introducing body wash products, a Sensitive Skin Bar, Facial Care Cleanser, etc. The brand was growing at a rate of 20% annually in 1999, expanding geographically and depending on its functional benefits to gain market share.

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In 2000, when Unilever embarked on its Path of Growth strategy, Dove was chosen as a Masterbrand and in succession became an umbrella brand and a wide variety of products (deodorants, hair care products, facial cleansers, body lotions and hair styling products) were brought under its wings. Only a few of these product categories were performing well, which is why the company decided to search for a new brand message. The process lead to The Campaign for Real Beauty (CFRB), which was to be the new brand message. The campaign entailed the launch of new products over the next years, such as Dove Intensive Firming range and the Dove pro-age range for women aged above 45. Dove growth strategy was firstly to build a strong identity, which goes far beyond the functional, i.e. hydration, and places the woman at the heart of the brand. Secondly, it build an emotional relationship with the consumers by persuading them to be less self-conscious about their bodies. By 2010, Dove was the worlds number one cleansing brand with sales over 2.5 billion year across 80 countries. The brand was one of the companys strongest performers and taking advantage of this stable situation, Unilever was pursuing further growth of the brand through the launch of Men+Care product in the male grooming market in 2009. It was Unilevers biggest brand launch that year. The company hoped to take advantage of the growing mens personal-care market, currently dominated by Axe and Old Spice.

3 Entry strategies3.1 Unilever Dove Men+CareIn 2009, Unilever launched Dove Men+Care range of products in Europe, a first of its kind in the male grooming market. Although Dove was the worlds number one cleansing brand with sales of over 2.5 ($3.4) billion a year across 80 countries, the brand was considered a feminine brand and had strong associations with beauty. The Dove Men+Care range claimed to bring greater skin comfort and care without compromising on performance and targeted men over 35 years in order to complement Unilevers other male brand Axe which was targeted at a younger audience. Doves vision was to extend the brand promise and expertise of superior care to men across deodorants and shower, the two fastest-growing sectors in male toiletries at the time. According to Paul Connel, Brand Manager at Unilever UK, before the introduction of Dove Men+Care men were forced to accept discomfort and irritation as a necessary compromise for performance. Dove saw a real category opportunity and decided to develop a range of products which were formulated with male specific requirements in mind

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and include a body and face wash that fights dryness, and an antiperspirant deodorant that offers 24 hour protection and skin caring action. Dove Men+Care also includes a range of deodorants that are tough on sweat, but not on skin. Over half of Men think antiperspirant deodorants dry their skin and 50% of men claim to experience underarm irritation from using deodorant, which is why the Dove Men+Care Antiperspirant Deodorants feature the moisturizer technology for which Dove is already well known. The packaging was in keeping with the familiar Dove family of products, but with a masculine design and color scheme. With a background of strong grey, each product had bright color coding so that shoppers could clearly see which variant they were choosing, giving the range great standout on shelf (Dove reveals its masculine side - Dove Men+Care, 2010).

3.2 Beiersdorf Nivea for menThe Nivea brand always stood for good quality products that are reliable and easy to use. The brands main values are security, trust, closeness and credibility. When launching Nivea for Men internationally in 1986, the company intended to lever these main values and expand on them. Initially, Nivea for Men was very popular among the male target group as their products belonged to the few that did not contain skin-irritating al