PRINCIPLES OF MARKETING subject name doves marketing strategy analysis in vietnam market and make proposals

MINISTRY OF FINANCE UNIVERSITY OF FINANCE – MARKETING FACULTY OF MARKETING - - ESSAY PRINCIPLES OF MARKETING Subject name: Dove's marketing strategy analysis in Vietnam market and make proposals Teacher: Nguyen Thi Minh Ngoc Student implementation: Ung Thi My Duyen: 2021008423 Hoang Thu Ha: 2021008431 Le Dinh Cat My: 2021008476 Pham Thi Huynh Na: 2021008481 Nguyen Mai Bao Vy: 2021008595 Ho Chi Minh City - 2021 TIEU LUAN MOI download : skknchat123@gmail.com ACKNOWLEDGMENT Dear Ms Minh Ngoc, First of all, we would like to thank you for being with us this past semester Although we still have many mistakes and the epidemic has caused a lot of obstacles, we are very grateful to you for imparting us useful knowledge as well as enabling us to complete the course in a timely manner This essay was done within three weeks and it was our first time doing it Therefore, our knowledge is still limited and mistakes will inevitably be made, we hope you can sympathize with it Finally, we wish you good health and more and more success in your teaching career Thank you again and all the best to you! TIEU LUAN MOI download : skknchat123@gmail.com TABLE OF CONTENTS 01 INTRODUCTION 02 MARKETING ENVIRONMENT I Microenvironment 1.The Company 2.The Supplier 3.Intermediaries 4.Competitors 5.Publics 6.Customers II Macroenvironment 1.Demographic environment 2.Economic environment 3.Natural environment 4.The Technological environme 5.Cultural environment 6.Political and social environme 03 SEGMENTATION – TARGETING – POSITIONING I Segmentation II Targeting 1.Target Strategy 2.Target market III Positioning TIEU LUAN MOI download : skknchat123@gmail.com 04 MARKETING MIX I Product 1.Type of product Individual product and 2.1 2.2 2.3 3.Product mix 4.Product Life Cycle II Price 1.Pricing Method 2.Pricing Strategies III Place 1.Channel Behavior & Or 2.Channel Design Decisio IV Promotion 1.Promotion Mix 2.Promotion Mix Strategie 05 PROPOSE REFERENCES TIEU LUAN MOI download : skknchat123@gmail.com INTRODUCTION UNILEVER Unilever is a multinational company founded by the UK and the Netherlands specializing in the production and sales of personal, household and food products, officially established in Vietnam and put into operation in 1995 Some Unilever's brands such as Dove, OMO, P/S, Clear, Pond's, Lifebuoy, Sunsilk, Lipton, Sunlight…have become familiar products of every Vietnamese family DOVE DOVE is a typical brand of Unilever, contributing a significant part to Unilever's reputation Dove’s product first appeared in 1957 as a soap bar used by soldiers during World War II After that, with improvements in the formula, Dove impressed consumers with its ability to moisturize in a cleansing product This is also a unique feature that makes the brand become one of the world’s most beloved beauty brands Up to now, Dove has become a prestigious global brand with more than 50 years of experience in the cosmetic chemical industry They offer a wide range of products: body washes, hand and body lotions, facial cleansers, deodorants, shampoos, conditioners and hair styling products… MISSION Since its birth, Dove has set a mission of pure beauty care, always attaching importance to "real beauty" During many years in the market, they persistently | TIEU LUAN MOI download : skknchat123@gmail.com built the belief in natural beauty in the hearts of women around the world and always strives to help women overcome stereotypical beauty and develop positive feeling with the way they look Dove also try to raise their self-esteem and be more confident with their own body with the philosophy: "Only natural beauty lasts forever” Besides enhancing the beauty of women, Dove also cares about men In 2015, Dove launched a men's product line with the message: "Men only become masculine when they know how to care for their family and themselves" Not only that, the brand's goal is to target all those who identify as female and nonbinary with the aim of breaking down gender, color and racial discrimination to create equality in modern life ACHIEVEMENT Today, Dove has become a trusted friend of women in over 80 countries and their products are offered for both women, men, and babies In VietNam, with the “Ad makeover campaign”, Dove has successfully pushed back 171 million banners with negative messages The company reached more than 5.5 million female users – half a million more than its original target What makes Dove successful not only comes from the product quality but also from the value Dove brings to customers It is a long image of beauty without stereotypes |2 TIEU LUAN MOI download : skknchat123@gmail.com MARKE I MICROENVIRONMENT The Company Mrs Nguyen Thi Bich Van has officially been the chairman of Unilever Vietnam since 2017 With more than 25 years working at Unilever, she has made significant contributions to the management plan's design, ensuring that the departments can work together effectively Today she and 1500 other employees Figure First chairwomen of Unilever Vietnam continuously makes efforts to accomplish Unilever’s mission: “Striving for a better Vietnam” To realize that goal, Unilever’s R&D centres invents new products and improves existing products to delight Vietnamese consumers It costs them more than 300 million dollars to invest in the Vietnam market As a result, more and more Unilever’s products including Dove shampoo are well known to Vietnamese people The supplier Dove has a strong base of reliable suppliers of raw material to help the company overcome any supply chain bottlenecks Dove cooperates with their partners: Firmenich and Givaudan They are Swiss multinational manufacturer of flavours, fragrances and active cosmetic ingredients As of 2017, these are also the largest companies in the world in the flavour and fragrance industries Beside that, In Vietnam, Unilever- parent company of Dove, is currently purchasing some key raw materials from Vinachem and Vinachem's |3 TIEU LUAN MOI download : skknchat123@gmail.com member companies This also contributes to more consistent and long-term supply of production materials for Dove Intermediaries 3.1 Reseller Up to now, Unilever has more than 150 distributors and 300.000 retailers nationwide Their wholesalers are some popular supermarkets in Vietnam such as: Lottemart, Coopmart, GO, Mega Market… Besides these big markets, Dove is also distributed to retailers like Vinmart, Bach hoa xanh, Circle K and some grocery stores, local markets in customers’ area In recent years, Dove also has a strong system of e-retailers like Shoppee, Lazada, Tiki… Figure Supermarket in Vietnam Figure Convenience store in Vietnam Figure Popular E-commerce |4 TIEU LUAN MOI download : skknchat123@gmail.com 3.2 Physical distribution firms The main mode of transportation is trucks and containers Since 1995, Unilever has established Lever Haso and Lever Viso to manufacture and distribute personal care products at affordable prices to Vietnamese consumers They want to ensure that their product can be delivered to mountainous and rural areas and everywhere in Vietnam 3.3 Marketing services agencies Although Unilever has their own Marketing department, they still cooperate with many prestigious agencies such as WPP, Omnicom and Interpublic Competitors COMPARISON OF PRICE DOVE SUNSILK CLEAR Dove's average price in the same product segment is extremely high when compared to its main competitors like Clear and Sunsilk This is a significant disadvantage for Dove in the Vietnam market |5 TIEU LUAN MOI download : skknchat123@gmail.com Product Bundle pricing Product Line Pricing Product line pricing is pricing different products within the same product range For example, Dove’s deep moisturizing shower gel (530g) is priced at 123,500 VND, a bit lower than the Dove moisturizing body wash (530g), Dove skin lightening body wash (530g), Dove skin regenerating shower gel (530g) for 149,000VND Product Bundle pricing Bundle pricing means offering a product at a cheaper price if a customer buys more of the same product line For example, a bottle of Dove Damage Repair Shampoo (640g) costs 125,000 VND If the Customer buys two bottles, the price will be 230,000 VND As another example, when a customer buys a bottle of Dove Damage Repair Shampoo (640g) for VND 125,000 and a bottle of Dove Conditioner (620g) for VND 125,000 If customers buy two bottles, the price will be 230,000 VND 2.3 Price Adjustment Strategies Promotional Pricing: According to Nielsen 2020, during Covid-19 pandemic, 39% Vietnamese people tend to purchase from online shopping channels frequently Therefore, Dove has immediately adopted promotional pricing to increase their short-run sales By using this price strategy, Dove will temporarily price their products below list price or even below cost For example, Dove uses flash sales on Shopee to promote consumer’s purchasing with preferential prices Besides, Dove’s shampoo and shower gel are promotionally priced on Shopee’s sale party to attract the young in buying their products | 23 TIEU LUAN MOI download : skknchat123@gmail.com III PLACE Channel Behavior and Organization Belonging to a large corporation like Unilever seems to be a huge advantage for Dove in competing on distribution channels with other brands Therefore, along with the current market, Dove has applied mainly two distribution systems including Vertical Marketing System and Multichannel Distribution System In the vertical marketing system, we can see that Unilever is a famous corporation in the whole country and their products appear everywhere in Vietnam Unilever has become a leader in the FMCG industry and the main distribution system used here is the Administered VMS Based on this distribution system, Unilever used its power to influence retailers in the display and promotion of products or pricing policies Specifically, Dove products are often displayed by retailers in areas that are easy to see, easy to get, as well as eye-catching decorations to attract customers' eyes In addition, Dove also applies appropriate pricing strategies and promotional strategies to attract more customers to the point of sale Thanks to that, any supermarket or grocery store wants to have Dove products on the shelves In the past, Dove used only one distribution channel to sell in one market or market segment, but today, with the diversification of customers, Dove has started using a multi-channel distribution system as a strategy to reach as many customers as possible For older customers, Dove promotes its products through TV ads, banners or through supermarkets, grocery stores and markets where they distribute the products But for younger customers, Dove leverages evolving technology to reach them through ads on social media sites, through | 24 TIEU LUAN MOI download : skknchat123@gmail.com celebrities, or listing their products on the internet e-commerce sites such as Shopee, Tiki In addition, instead of buying goods at points of sale such as Mega Market, Lotte or Guardian and the aforementioned e-commerce sites, customers can buy directly at Dove's website in Vietnam Channel Design Decision Because of being owned by Unilever, Dove also uses intensive distribution strategy in order to provide their product to consumers around the world Using this strategy means stocking the product in as many outlets as possible In Vietnam, Dove’s products are not sold by official agents of the company Instead, they are displayed from offline to online channels For example, Dove’s shampoos are distributed and widely sold in almost supermarkets, grocery stores and E-commerce sites In the survey launched in 2012 about the shampoo market in Vietnam, about 51 percent of the total number of consumers normally buys shampoo in the supermarket, while approximately 29 percent of total consumers prefer buying in grocery stores (Vinaresearch2012) This shows that Dove not only adopts successfully this strategy based on Vietnamese buying habits, but also takes advantage of creating favorable conditions for consumers to buy their products | 25 TIEU LUAN MOI download : skknchat123@gmail.com IV PROMOTION Promotion Mix 1.1 Advertising Figure "Ngẫu hứng đời thường" campaign to celebrate Vietnamese women's day According to a survey by Dove, more than 60% of women are not confident with their body Understanding Dove knows make all advertising this, how to of its campaigns as close to customers as possible Dove has no representative faces, no A-list stars in commercials, the main characters in their advertisement are ordinary women In its most recent promotional campaign, Dove used portraits of "real" women instead of the gorgeous models that are often praised by other brands In advertisement to celebrate Vietnamese women's day named “Ngẫu hứng đời thường” in 2020, the people in the TVC are ordinary Vietnamese women with a variety of personalities They can be girls in their twenties, housewives, mothers, business women or even the women who manual work No matter who they are, they all shine with their own beautiful hair This meaningful message of Dove has moved many viewers, reached 13 million views on Youtube and once again honored the natural beauty of Vietnamese women In the Vietnam market, besides many effective Figure 10 Beauty blogger An Phuong cooperates with Dove to advertise deodorant cream products TIEU LUAN MOI download : skknchat123@gmail.com traditional advertising vehicles such as TV ads, Print ads, Web ads Dove is also bolder in collaborating with beauty bloggers, KOLs or other brands to promote interaction on its social networking sites In 2020, Dove Vietnam cooperated with brands such as Shopee, Merzy, and beauty blogger Linh Truong to promote makeup remover products The combination of Misoa, An Phuong, Man Tien and Guardian for deodorant cream The collaborations through this livestream have brought about a very good interaction effect on Dove Vietnam's fanpage, with the livestream reaching the milestone of 23,000 comments and thousands of online viewers More than 50% of the comments are mostly positive feedback about Dove products, the rest are people who intend to use Dove based on those positive feedback 1.2 Public Relations In mid-2018, Dove Vietnam launched a 4-minute TVC with the message: "Being yourself is easier when you have someone by your side" The content of TVC is three girls with three different hair stories, always longing for sympathy from their mother Then through those confidants, the mothers asked to have the same hair as their daughters With the story from the hair, Dove hopes that mother and daughter will always be close friends so that the girls can be | 27 TIEU LUAN MOI download : skknchat123@gmail.com Figure 11 Dove meaningful advertisement about mother and daughter in 2018 themselves, knowing that their mother will always understand and support them This TVC is considered as one of Dove's best TVCs in the Vietnamese market up to now because it is a very strong psychological hit to viewers The proof is that the views of this video have reached more than 12 million views, 14.000 likes and hundreds of positive comments Because of that, Dove has created a very different impression in the hearts of customers and increased brand’s recognition In 2020, Dove continues to make an impression in the community with the campaign "Courage is beautiful'' - a campaign honoring the heroes who are nurses on the the doctors and front lines against the Covid-19 epidemic, fighting day and night despite Figure 12 Dove’s humanitarian campaign about the spirit of doctors and nurses during the pandemic the marks from wearing a mask that criss crossed their face Instead of erasing those marks, through 'Courage is Beautiful', Dove wants to turn them into symbols of bravery, and convey the meaning of beauty Dove does not flaunt | 28 TIEU LUAN MOI download : skknchat123@gmail.com billion-dollar campaigns, nor openly sponsor any events What Dove brings is the contribution of spiritual values, both encouraging and supporting women to believe in themselves and be confident with the beauty they have This has brought a very good PR effect to Dove, making Dove's good images appear on the pages of newspapers and magazines, impressing customers in the most skillful way 1.3 Personal Selling Although not as popular as previous tools, personal selling is an option that Dove considers investing in their booth activations or brand’s events This is a tool helping reach new audiences that haven't yet interacted with the brand, learn their needs, interests, and collect consumer feedback It is also an opportunity for Dove to increase brand recognition Personal selling is a chance to bring new experience to customers, affirm brand value, thereby creating intimacy with them Although the disadvantage of this tool is quite expensive, it can reach deeper with the potential customers and expand the target audience 1.4 Sales Promotion | 29 Figure 13 Some booth activations and Dove’s events TIEU LUAN MOI download : skknchat123@gmail.com Dove also uses sales promotion to encourage the purchase or sales of a product or a service in a short time Examples of sales promotion are found everywhere such as in magazines, supermarkets or anywhere that attract customer attention Besides, sales promotion includes a wide variety of promotion tools designed to stimulate earlier or stronger market response Consumer promotions Final buyer is one of the objectives targeted by Dove For example, in 2020, Dove launched a series of attractive promotions such as giving out free samples combined with shampoo to not only encourage their customers to quickly buy the product, but also make a chance for trying another one In addition, on annual Black Friday, Dove releases many attractive coupons on supermarket shelves or on E-commerce channels Trade promotions Trade promotion can persuade resellers like Lottemart, Coopmart, Bach hoa xanh… to give them shelf space, promote their product in advertising and push it to consumers This is a mutually beneficial agreement guaranteed by offering price-off, allowances and so on Promotion Mix Strategies Push and Pull Strategy Push: In push strategy, Dove gives many attractive offers to their resellers such as discounting for huge purchases, offering free goods to retailers and wholesalers or giving them specialty advertising items like bags and pillows Besides, the Dove manufacturer or service provider always has a team of professional staff available such as: sales support, | 30 TIEU LUAN MOI download : skknchat123@gmail.com supervision, area manager in order to convince the agents to sell their products to customers After receiving an offer from Dove, these resellers will promote their products through advertising, personal selling to grab consumer’s attention Pull: In the pull marketing strategy, in addition to some meaningful campaigns above that spread Dove's reputation Dove also brings customers closer to them with attractive promotions Every time Dove launches new products, on major holidays or every time they want to thank their customers, Dove will have buy get free programs, buy combos with cheaper prices, gifts included with purchase, and most commonly discount vouchers on e-commerce platforms Dove uses this strategy very often in order to capture customer visibility in supermarkets, markets and grocery stores Since most Vietnamese consumers, especially housewives, all prefer to have a gift included every time they buy an item Figure 14 Some of Dove’s promotion to attract customers | 31 TIEU LUAN MOI download : skknchat123@gmail.com PROPOSE PRICE In the Vietnam market, consumers always consider when they pay a high price for Dove's product Almost all Dove's products target from the middle to high income segment, which makes Dove less popular than its competitors such as Clear and Sunsilk For example, Sunsilk shampoo has the same quality compared to Dove ones, however, its price is cheaper than Dove’s This is the reason why Vietnamese people having low income can easily afford to pay for Sunsilk’s products instead of Dove Therefore, Dove should have a suitable price adjustment strategy to attract people from many segments PRODUCT LINE Dove has always been known for its moisturizing abilities However, Dove's products only focus on moisturizing body skin and hair care With the current beauty trend, women are interested in moisturizing facial products such as moisturizing lotion, moisturizer cream With its impressive moisturizing ability, Dove should diversify its product line and expand its focus on facial care items Vietnam is considered as one of potential markets for the beauty industry in Asia Thus, the demand for using beauty and personal care products is rising annually On the Dove USA product list, there are many products meeting Vietnamese people's needs but are not available in Vietnam such as Instant Foaming Body Wash used for sensitive skin or Men Care collection Dove should expand their product line to create more market share in Vietnam | 32 TIEU LUAN MOI download : skknchat123@gmail.com ADVERTISEMENT Dove should promote advertising in the Vietnamese market more strongly Regarding advertising, Dove should invest in its ads to appear more on TV along with popular TV channels such as VTV3, HTV7 ; cooperate more with famous people, especially the influencers to create more quality ads In terms of public relations, in the Vietnamese market, Dove should have more meaningful activities for the community, be it charity programs, volunteering sessions, workshops on hair care and health care or scholarship funds named Dove like other brands often In addition, Dove should also spend more in sponsoring TV game shows or music videos of famous singers Currently in Vietnam is the emerging social network tiktok, Dove should take this opportunity to advertise their products on the tiktok platform to reach more audiences This is the easiest way to get the attention and trust of customers | 33 TIEU LUAN MOI download : skknchat123@gmail.com REFERENCES Maple holistics: Dove Company History and Review: Real Beauty, Real Soap! (16.11.2016) https://blog.mapleholistics.com/blog/dove-company-history-and-review-real-beautyreal-soap/? fbclid=IwAR2yGekkexhjfpfHnWDiPTU4qPj9moq7meSeXPlQ786sDXFXhFcTu4WFksI Dove Official Website https://www.dove.com/us/en/stories/about-dove.html? fbclid=IwAR2y3t4bmbC95KnyoMRNqTBiaNIJ14Y1pgK3tnFi1lqnhQOrILvejMU2H-8 Marketing AI: “Chiến dịch cảm động Dove giúp mẹ gái xích lại gần nhau” (10.05.2018) https://marketingai.admicro.vn/chien-dich-cam-dong-cua-dove/? fbclid=IwAR0cLSpdsbcS2cPQN9FPMMuoxkK8c6gebGLfJF1ep11aHVd2VU5GEqwEI e4 Brands Vietnam: “Chiến dịch Dove "Vẻ đẹp thực sự": Sự cộng hưởng tiếng nói thứ ba” (08.03.2013) https://www.brandsvietnam.com/1308-Chien-dich-Dove-Ve-dep-thuc-su-Su-conghuong-cua-nhung-tieng-noi-thu-ba?fbclid=IwAR1LCRQAkiNMPKMkEUK8UmKXiffLFV9GN7dB26qaVjGZsUDtH1JkTg_H0U Brands Vietnam: “Cannes Lions 2021: Dove giành giải Grand Prix, giải Gold giải Silver với ‘Courage is beautiful” (23.06.2021) https://www.brandsvietnam.com/congdong/topic/318443-Cannes-Lions-2021-Dove-gianhduoc-1-giai-Grand-Prix-1-giai-Gold-va-2-giai-Silver-voi-Courage-is-beautiful ? fbclid=IwAR3anogOcjPZHlxhX_UM7TqfnXdK03CiVCh6jaV3PXqDiTMVundi70Qp6nI TronHouse: “DOVE - 15 NĂM MỘT HÀNH TRÌNH ĐỒNG HÀNH CÙNG PHỤ NỮ TOÀN THẾ GIỚI” (03.03.2020) https://tronhouse.com/dove-15-nam-mo t-hanh-trinh-dong-hanh-cung-phu-nutoan-the-gioi-p8882? | 34 TIEU LUAN MOI download : skknchat123@gmail.com fbclid=IwAR08MR50ysY_SMb6RcdI1ugHn970Cz4pOzpd7Mi_vhQT5fT5V0M6Ve7yQ UQ TopVietreview: “Thương hiệu mỹ phẩm Dove” (08.04.2021) https://topvietreview.com/thuong-hieu-my-pham-dove-top-viet/? fbclid=IwAR3Q81PFikL0oQeRmx3B8ZZB4H-IkddowUjn62_tV-ouFd-Zv6cfa9kQ5hE Q&Me: “Ý kiến 1000 người Việt Nam nhãn hiệu dầu gội đầu” https://qandme.net/vi/baibaocao/Cac-nhan-hieu-dau-goi-dau-pho-bien-nhattren-thitruong-hang-tieu-dung-Viet-Nam.html/ Unilever Official Website https://www.unilever.com.vn/news/news-and-features/2018/guong-mat-moicua-Unilever-Viet-Nam.html Dichvusieuthi: “Thông tin phân phối Unilever Việt Nam, thống lĩnh thị phần” (01.07.2019) https://profit500.vn/Thong-tin-doanh-nghiep/CONG-TY-TNHH-QUOC-TE-UNILEVER- VIET-NAM-Chart 18-2021.html https://www.elle.vn/elle-network/brand/dove Avada.io: “Dove Marketing Strategy: How Dove became the voice of women” https://avada.io/resources/dove-marketing-strategy.html Marketing91: “Marketing Strategy of Dove” (16.06.2018) https://www.marketing91.com/marketing-strategy-of-dove/ https://shopee.vn/unilever_international?categoryId=100630&itemId=1269129981 Bach hoa xanh Website https://www.bachhoaxanh.com/dau-goi-dove BẢNG ĐÁNH GIÁ ĐĨNG GĨP VÀ MIÊU TẢ CƠNG VIỆC | 35 TIEU LUAN MOI download : skknchat123@gmail.com Họ Tê Ung Thị Mỹ D Hồng Thu Lê Đình Cá Phạm Thị Huỳ Nguyễn Mai B Vì với mục tiêu từ đầu chúng em đặt người nhóm phải đóng góp vào luận, hiểu hoàn toàn doanh nghiệp mà nhóm nghiên cứu, chia người làm phần xảy tình trạng người biết phần mà khơng hiểu phần khác Cho nên, tụi em chia nhỏ phần làm để tất thành viên nhóm hồn thành, để vừa có nhiều nguồn thông tin hay vừa bao quát luận, tổng hợp, chắt lọc chỉnh sửa để đưa thơng tin phù hợp cho làm Vì thi cuối kì nên chúng em muốn hồn thành hết mình, hỗ trợ lẫn phát huy hết lực người vào làm chung để cuối tạo sản phẩm hồn thiện Dựa vào tiêu chí với quan sát thơng qua q trình làm việc nhau, phần trăm đóng góp thành viên 100% cho người Ngoài ra, bảng miêu tả công việc công việc mà chúng em cho bật, việc hoàn thành phần làm giao hạn để cô xem qua có đánh giá khách quan Chúng em xin chân thành cảm ơn | 36 TIEU LUAN MOI download : skknchat123@gmail.com ... https://www.elle.vn/elle-network/brand/dove Avada.io: “Dove Marketing Strategy: How Dove became the voice of women” https://avada.io/resources/dove -marketing- strategy. html Marketing9 1: ? ?Marketing Strategy of Dove” (16.06.2018)... different types of shampoos being sold in the Vietnamese market, Dove is using differentiated marketing to reach a diverse range of customers and dominate the shampoo market Target Market Dove shows... is still maintained in the top 10 most trusted shampoos used by Vietnamese women 2.3 Branding Strategy Dove is a case study in applying a Brand Extension strategy to expand their influence Dove