MINISTRY OF FINANCE UNIVERSITY OF FINANCE — MARKETING FACULTY OF MARKETING PRINCIPLES OF MARKETING Subject name: Dove's marketing strategy analysis in Vietnam market and make proposals Dove <#⁄
Teacher: Nguyen Thi Minh Ngoc
Student implementation: 1 Ung Thi My Duyen: 2021008423 2 Hoang Thu Ha: 2021008431
3 Le Dinh Cat My: 2021008476
4 Pham Thi Huynh Na: 2021008481 5 Nguyen Mai Bao Vy: 2021008595 Ho Chi Minh City - 2021
Trang 2ACKNOWLEDGMENT
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
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TABLE OF CONTENTS
01 INTRODUCTION LG ng TT KHE kết 1 02 MARKETING ENVIRONMENT QLLQ SH n* HH HH ke 3
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1 The COmpạ\y c Q.0 00111112 H TH SH Tnhh nhe hay 3 2 The Supplier c1 222 220111 n HS TH TH nghe g2 vu 3 KMI {0v -u::paiiiidảáá4Ả 4 3.1 Reseller ẶẶẶ TS nn HH TT TH 4 3.2 Physical distribution firrms - 7-2 c c2 S se 5 3.3 Marketing services agenclies - -Ặ cà 5 4 CompetifOFS 011 n SH HH TT TH TT nh ng 1k xku 5
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II Macroenvironmeni 1n Tnhh TT 8 1 _ Demographic environment - - - - c2 SH SH SH se r 8 2 Economic environmernt - n ST TT kg 8 3 Natural environmen - TT n2 ng Tnhh ky 9 4 The Technological environment - - - TS sex 9 5 Cultural environmeint c1 HT TH TH kkkt 10 6 Political and social environmeri - chen Hke 10
03 SEGMENTATION — TARGETING — POSITIONING 11
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Trang 404 MARKETING MIX cecceeececececeeeeeceeeeeeeeeneeeeeneeseeeeseneeereesnineeereetnirennneees 16
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2 Individual product and service decision
2.1 Product attribufe HH HT nen ng HH Hết 16 2.2_ Branding . TQ TQ SH HS SH HH nghe 16 2.3 Branding strateqgy - - - TQ TQ HH HH HH HH HH se 17 “xo ch ad 18 4 Product Life Cycle - - G0 0220 11122 1n 1 011v vn rrh 21
di Ẽ.Ẽ 22
1 xi si 9° 22 2 Pricing Strafegies -LQnn TQ HH HH HT TH TT Tnhh 22 2.1 New —- product pricing strategies -. .- 22 2.2 Product mix pricing strategies - -2 -ccc22S- 23 2.3 Price adJjustment s†rategies TQ Q TQ 23 is 24 1 Channel Behavior & Organization 2 TS Ss S2 24 2 Channel Design Decision -LL Q22 n SH nhe 25
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1 Promotion Mlx SH SH TT n HH ket 26 ` -› ¡ 26 1.2 Pubilic relafion ST n SH nhe 27 1.3 Personal selling - ST ST SS HS nhe 29 1.4 Sales promotion - TT HH n HH Tnhh nhe 29 2 Promotion Mix Strategies LH nhu 30
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Trang 5Unilever 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 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 Il 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
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 |1
Trang 6built 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 non- binary with the aim of breaking down gender, color and racial discrimination to create equality in modern life
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
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1 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 continuously makes efforts to
accomplish Unilever’s mission: “Striving for a
better Vietnam” Figure 1 First chairwomen of Unilever 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
2 The supplier
Trang 8member companies This also contributes to more consistent and long-term supply of production materials for Dove
3 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
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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 4 Competitors COMPARISON OF PRICE SUNSILK wh 200.000 — 300.000 VND (650g) 70.000 — 150.000 VND (320g) 100.000 — 150.000 VND (650g) 60.000 — 80.000 VND (320g) 120,000 — 150.000 VND (650g) 60.000 — 90.000 VND (320g)
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
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Trang 10Besides, Vietnam has a hot and humid climate, with high temperatures in most parts of the country This is why dandruff-cleaning shampoos are needed While Dove’s products just focus on restoring and moisturizing, Clear has quickly developed a number of anti-dandruff and cooling shampoos As a result, Clear's products dominate the market in central and southern Vietnam
Women's popular shampoos by regions
North WTC Uy
Sunsilk Clear Clear Dove Dœve Sunsilk Pantene ốc Head & Shoulders a Head & Shoulders Kho T30) Clear Sunsilk Pei Head & Shoulders lela
Apart from the tagline "Real Beauty," Dove hasn't had a slogan that has had a huge impact on Vietnamese consumers Sunsilk, for example, uses experts in its TV commercials to increase the brand's verifiability in the face of so many hair care companies competing with it This demonstrates that Dove needs to invest more in TVC in order to reach a larger range of users
Figure 5 A survey made by Q&Me
Trang 115 Publics General public
In 2017, Dove faced criticism in its shower gel ad The advertising content shows a black girl wearing a dark brown t-shirt, after she takes it off, she turns into a white girl with a completely different look After being released, this ad made thousands of people angry, calling for a boycott of Dove shower gel because they thought the ad was racist This brand was forced to change the brand name of its top-selling skin-lightening product in India from "Fair & Lovely" to "Glow & Lovely", after public outcry over negative stereotypes against people with dark skin This scandal made Dove understand the importance of the general public’s reaction to their brand Figure 6 Dove's controversial advertisement 6 Customers Customer-centricity is Dove's guiding principle Two main customers of Dove in the market are reseller and consumer Dove products are suitable for both men and women in the different age groups However, most of Dove's consumers are young, independent and affluent women between the ages of 18 and 34 Customer-centricity is Dove's guiding principle The brand has launched many campaigns over the last decades to educate customers about
Trang 12changing people’s social perceptions, especially women Therefore, Dove’s products try to influence people both physically and emotionally
1 Demographic environment
The current population of Vietnam is approximately 98 million based on the latest General Statistics Office data in April 2021 68% of the population is the age of 15-64 and half of the number is the people below 34 This shows that the population of Vietnam today is a young population and has a large labor force This is one of the potential markets for Dove to grow its business As of April 2019, the number of urban centers in the country has increased to 830 The urbanization rate of the country is estimated to reach about 40% by the end of 2019 This proves that more and more citizens want to access urban living environments instead of rural areas Dove can fully take advantage of this to increase human resources as well as reach more consumers As a result, Dove is increasing output, particularly in Hanoi and Ho Chi Minh city in order to meet rising urban demand
2 Economic Environment
The Vietnamese economy is rapidly changing with remarkable speed In Covid 19, Vietnam’s economy has remained resilient, expanding by 2.9% in 2020,
TOP PRODUCTS GAINING MORE CONSUMPTION
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Figure 7 Nielsen Vietnam research 2020
Trang 13one of the highest growth rates in the world and growth is expected to reach 6.5% in 2021 Despite cutting spending on food services, travel, luxury shopping and entertainment, Vietnamese consumers tend to have a higher demand for health care and personal hygiene products According to research by Nielsen Vietnam in 2020, the personal care product category is one of the categories with increased consumption during the time of Covid 19 Beside that, the standard of living of people in big cities is becoming better and better With higher income, the price of personal care products will become less of a priority and instead, quality is more important
3 Natural environment
According to Dove’s company, the majority of the resources are agricultural raw materials As a result, the natural environment plays a critical role in Dove production However, concerns about environmental sustainability have steadily increased in recent years Our natural resources, particularly nonrenewable sources such as oil, coal, and natural gas are rapidly depleting in the environment Awaring this problem, Dove is trying to transport their products from road to rail and sea to reduce their environmental impact In response to ecological concern, they are also investing in more sustainable plastic choices to reduce the use of virgin plastic, using alternative materials and packaging innovations for their products
4 The Technological Environment
Unilever's products are easily provided to consumers at low cost and in a short time thanks to current science and technology This improves the company's reputation and leads to a significant growth in profitability