+HEC            

 

 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+Care

„Our vision is to extend the Dove brand promise and expertise of superior care to men [...]

there’s 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 market

Product categories like men’s 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 segment’s

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 men’s 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 continent’s 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.

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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 market’s 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

women’s industry and their needs, while not even having scratched the surface when it comes

to men (MaryLou Costa, 2010).

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 men’s 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).

15000

20000

25000

30000

35000

2006 2007 2008 2009 2010 2011

Global  Retail  Value  in  mio  $

4

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 Dove’s growth strategy

Dove a flagship brand of the Unilever company had its origins in the US during the post-

World 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.

33,3

12,8 5,8 5,6

3,5

39,0

Global Company Market Share Male Grooming in %

Procter & Gamble Co

Unilever Group

Energizer Holdings Inc

Beiersdorf AG

L'Oréal Group

Other

30,4

5,4

1,7

0,4

62,1

Global Brand Market Share Male Grooming in %

Gillette

Nivea

L'Oréal Paris

Dove

Other

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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 world’s number one cleansing brand with sales over €2.5 billion year across 80

countries. The brand was one of the company’s 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 Unilever’s biggest brand

launch that year. The company hoped to take advantage of the growing men’s personal-care

market, currently dominated by Axe and Old Spice.

3 Entry strategies

3.1 Unilever – Dove Men+Care

In 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 world’s 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 Unilever’s other male brand Axe which was

targeted at a younger audience. Dove’s 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 ¼

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 men

The Nivea brand always stood for good quality products that are reliable and easy to use. The

brand’s 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 alcohol. While the brand started out

with traditional marketing tools such as ads in fashion magazines, TV commercials and

product sampling, in the 2000s it put a stronger emphasis on consumer needs through an

increased use of two way communication in the promotional mix, which helped building an

emotional connection between the Nivea for Men and its consumers. One of those measures

to build a tighter bond with men, was sponsoring. Nivea for Men is the official sponsor for the

English football team and it sponsors various events all over the world, such as the AVP Tour

(volleyball), rugby and motorsports (BHARTI et al., 2010).

3.3 L’Oréal

L’Oréal Men Expert has deployed outstanding marketing expertise. By cleverly

acknowledging the expert in all men and then aligning us with Patrick Demsey, Gerrard

Butler, Eric Cantona and Hugh Laurie, L’Oréal Men Expert has appealed to all men and more

importantly it understands what goes on in a man’s mind. Compared to its competitors,

L’Oréal stays true to its appeal as fashion brand and is consistent in its communication

through endorsements from masculine Hollywood stars and celebrities.

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3.4 Procter & Gamble – Gillette and Old Spice

P&G has been highlighting the masculinity of its men's brands, Old Spice and Gillette, amid

the high-profile entry of Dove Men+Care. Ads from Wieden & Kennedy, Portland, Ore., urge

women to get their men to stop using "lady-scented body wash" in favor of Old Spice. An ad

for Gillette's body wash, with a fairly obvious proxy for the new Dove product in the shower,

pointedly says, "Just because it says it's for men doesn't mean it is." Procter & Gamble’s

approach is to avoid explicitly stating that the brand was developed for men and instead tries

to build a brand which is grounded in men. While Gillette is the unchallenged leader with a

70%-plus market share in razors and blades, it has difficulties translating that success into

leadership in any other men’s category. In order to leverage the masculine image and

popularity of the brand, P&G is trying to increase Gillette’s product portfolio with brand

extensions around the entire shaving process, which is still the elemental grooming event for

men. Therefore it introduced the Gillette Fusion ProGlide razor system, which includes a

heating face scrub and moisturizing aftershave with sunscreen protection.

4 Brand extension

Brand extension refers to the corporate activity whereby companies introduce new products,

new product variants and product improvements in an existing product category or create an

entirely new product category by leveraging the brand equity of the existing parent brand.

Former is the case if new products are launched with an existing brand name, such as a Dove

shower gel, which is a new product (Dove started out as a soap) in the same category and with

the same brand name. Brand extensions into completely different product categories are not

very common in the FCMG industry, however, in other industries they can be feasible, eg:

Porsche, which extended a very successful sports car brand to design products, such as

sunglasses, watches or smartphones. Most companies are already exploiting their possibilities

when it comes to brand extensions in terms of product variations, nevertheless sometimes the

market allows the development of a new product category or a segment. However, each

extension of a brand bears the risk of leaving the brand’s core competency and entering a

hazardous zone of brand extensions, which could lead to a dilution of the brand and therefore

negative repercussion on the brand equity (Kapferer, 2004). In order to analyze the potential

of a brand extension several steps are necessary, which are illustrated in Figure 4-1.

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Figure 4-1: Esch 2005, p. 313.

First of all it depends on the strength of a brand to what extent it can be expanded. It is not

feasible to extend a weak brand that is little recognized. Instead one should establish and

improve the strength of a brand before brand extensions can lead to sustainable growth in

market share or sales. Secondly, possible product categories that could profit from a brand

extension have to be identified considering potential market opportunities as well as

capabilities within the company. The fit between the new product category and the brand is

essential and reasons for a good fit should be explicitly communicated, in order to leverage

them later on when implementing the brand extension. Since Dove basically stays in the same

product category, a good fit between product category and brand is given. Although Dove is a

very strong brand it’s marked feminine characteristics can pose a hurdle for an extension to

Dove’s Men+Care product line. Thirdly, the internal company framework and external market

environment in which the new product category is launched has to be analyzed. Market

barriers, intense competition, lack of technical know-how and shortcomings in human or

financial resources pose possible difficulties for a market entry that have to be considered

beforehand. A company has to decide if it wants to make or buy: In Dove’s case the company

is producing making it’s on products for the male grooming market, since it can leverage is

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extensive knowledge on personal care products. Fourthly, the brand extension has to be

positioned in the market and is to be communicated through all means possible, from product

design to advertising in all channels. One of the main advantages of a brand extension is the

increased presence in the market and hopefully in consumer’s minds, but this fact also bears

some risks: The degree of adjustment to a new product category is crucial to the success of the

brand extension and the acceptance of the brand in its category, while it also has

consequences for the umbrella brand. If the degree of customization to the new category is too

high, it can dilute the brand image and therefore weaken the entire brand. It is therefore

important to keep the brand identity in mind throughout the entire process of launching a

brand extension (Esch, 2006).

5 Dove Men+Care strategy

5.1 Opportunities

Creating a sub brand such as Men+Care allows Dove to cater specifically to men’s needs and

add new, more masculine associations through differentiation. Additionally, a sub brand

signals the recentness of the product line and draws a clear line between pure Dove products

and Men+Care products, which reduces the risk of a negative image spillover (Aaker &

Joachimsthaler, 2000). Consumers trust Dove and appreciate the values and quality it

represents, which can prove beneficial for the success of Men+Care. Since many potential

consumers are already aware of the brand, they also tend to buy a product which seems

familiar as it reduces the time necessary to search for an appropriate product. The probability

of consumers buying a the product of a brand they are familiar with is higher, than trying out

a completely new brand. What is more, not only the acceptance among distributers is higher

for an extended brand, it also improves Dove’s shelve presence and is therefore more visible

to the customer. Possible synergy effects and economies of scale in marketing activities

present another advantage of brand extension over the introduction of a new brand. Since the

sub brand builds on certain Dove values, the construction of a completely new brand identity

can be avoided which leads to significant savings in time and costs.

5.2 Risks

Generally speaking, there are three main reasons which can lead to a lack of acceptance of a

brand extension: First, if the knowledge and awareness about the umbrella brand among the

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consumer is not extensive enough, the brand can not be leveraged in order to gain acceptance

of a brand extension. A second potential source of possible risks is that the brand image of the

extension does either not fit well to the image of the new product category or is just not

relevant. Third, managers might misjudge potential synergies and economies of scale of

marketing activities and consequently cause a promotional and advertising deficit. If for one

or more of the above mentioned reasons the launch of a brand extension turns out to be a

failure, not only has it a negative result for the new product line or category, it might also

damage the image of the umbrella brand. The greatest challenge for Unilever is to keep up the

balance between the feminine Dove umbrella brand and the masculine Men+Care sub brand.

5.3 A success story

Given that Dove has historically been a family brand, it is crucial to consider family values

when extending the dove brand. Dove has made women less self-conscious. Will the

Men+Care brand have the same success with regard to men? The film for its launch (released

in the U.S. during the Super Bowl – and which was ranked 11th with 76% positive opinions)

features a man who has surmounted all the difficulties of his life, from birth to his first child –

in a humorous tone. The brand then steps in to tell him that now he has found himself – in

essence, that he is feeling confident about himself – and that should also feel comfortable in

his skin. “Now that you are comfortable with who you are, is not it time for a comfortable

skin?”. Dove Men+Care empowers men, telling them they are up to life’s challenges. This

message is important and is the exact counterpart of the one concerning women’s beauty: In

both cases we have a message deeply rooted in a social reality. Dove doesn’t say “Be a man”

(which is the common message used by beauty brands for men) – but in conveys empathy and

well-being with who you are, which is consistent with the Dove brand identity.

Dove shook up the market for male personal-care products through innovative products and

stepping outside of the paradigm it had constructed for itself as a women’s brand. Moreover,

Unilever was well aware of the evolution of the male customer and the male grooming

segment. The market for men’s products had been (and still is) rapidly expanding, and the

idea of a product designed to ‘take care’ of men and feeling good about oneself was much

more accepted than it would have been 20 years ago. All in all, Dove’s Men+Care product

line is very consistent in packaging, communication, design and functionality. For instance

Dove’s well-packaged shower scrub gives men a means to literally connect with Dove’s

signature body wash product, while at the same time further differentiating it from Dove’s

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traditional female-skewed brand. Not only does it have practical application, but the

masculine color palette and package design maximizes its appeal to their target customers. It

is important to understand that for every successful brand extension, there are many more that

fail. Dove Men+Care played its cards just right and is therefore rightfully reaping its rewards.

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6 Bibliography

Aaker, D. A., & Joachimsthaler, E. (2000). Brand leadership (p. XII, 351 S.). New York, NY: Free Press.

Ankutse, E. (2011). Industry report: Male Grooming 2011. Ape to Gentleman. Retrieved November 13, 2012, from http://www.apetogentleman.com/brands/industry-report-male-grooming-2011/#fn-6872-4

BHARTI, V., SINGH, V. K., YADAV, V., SINGH, V. K., RANJAN, V., & RAI, V. (2010). Nivea for Men. London.

Dove reveals its masculine side - Dove Men+Care. (2010).Talking Retail. Retrieved November 13, 2012, from http://www.talkingretail.com/products/product-news/dove-reveals-its-masculine-side-dove-mencare

Esch, F.-R. (2006). Wachstum mit Marken: Marken dehnen und Allianzen bilden. Marketing Review St. Gallen, 23(3), 11–15.

Kapferer, J.-N. (2004). The New Strategic Brand Management: Creating and Sustaining Brand Equity Long Term (5th ed.). London: Kogan Page.

MaryLou Costa. (2010). What men want from a brand relationship. Marketing Week. Retrieved November 12, 2012, from http://www.marketingweek.co.uk/analysis/cover-stories/what-men-want-from-a-brand-relationship/3018175.article

Yeomans, M. (2012). The rise of the male grooming sector. Cosmetics Design Asia. Retrieved November 12, 2012, from http://www.cosmeticsdesign-asia.com/Market-Trends/The-rise-of-the-male-grooming-sector