Unilever's Dove Soap: Marketing Management and Competitive Analysis

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This report provides a comprehensive analysis of marketing management principles applied to Unilever's Dove soap. It begins with an introduction to marketing management and Unilever, followed by a description of Dove soap and an evaluation of its competitive environment using Porter's Five Forces. The report identifies opportunities such as geographic expansion and targeting male audiences, as well as threats including government policies and high competition. It also examines the impact of these factors on Unilever's business operations and profitability. Furthermore, the report discusses the marketing mix (4Ps) in relation to Dove soap and offers recommendations for improving brand positioning and reputation. The conclusion summarizes the key findings and emphasizes the importance of effective marketing management for Unilever's continued success with Dove soap. Desklib offers a variety of study tools, including past papers and solved assignments, to support students in their academic endeavors.
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Marketing
management
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Table of Contents
Executive summary..........................................................................................................................3
INTRODUCTION ..........................................................................................................................4
TASK...............................................................................................................................................4
Description of the company........................................................................................................4
Description of the products.........................................................................................................5
Evaluation of competitive environment......................................................................................5
Analysation of competition:........................................................................................................6
Identification of opportunities and threats..................................................................................7
Impact on Unilever: ...................................................................................................................8
Marketing Mix............................................................................................................................9
Recommendation......................................................................................................................10
Branding....................................................................................................................................10
Reputation ................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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Executive summary
This report involves a brief description of marketing management which is essential part
of a business in order to expand the sales volume. In this portfolio, an organisation is taken into
consideration for making innovations in its products or services. In this report, environmental
analysis will be conducted for identifying opportunities and threats that impacts the performance
of business operations. This portfolio also covers the concept of marketing mix along with the
techniques of segmentation, targeting and positioning.
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INTRODUCTION
The concept of marketing management is defined as the process in which planning,
organising controlling along with implementation of different marketing policies, strategies as
well as programmes are designed with a purpose of satisfying customer needs by offering
products of the company. This process facilitates the business in understanding the wants and
requirements of the target-base by making improvements and offering its products according to
them. It is the backbone of the business enterprise which is significant in the development of an
organisation (Alnawas and Hemsley-Brown, 2019). In this era of stiff competition between
different companies, it is important for a business to concentrate on its marketing-management
for gaining competitive advantages over rivalries in market. In this report, Unilever is taken into
consideration as an organisation which is a UK-based company and was introduced by William
Lever in 1929. Within this existing report, the description of the company along with its products
is going to be explained. An environmental analysis will be conducted for Unilever in order to
identify the opportunities and threats for company. Along with it, concept of marketing mix will
be discussed focussing on 4Ps in context to organisation. Furthermore, this report also includes
an analysis regarding impacts of brand positioning and ways in which the company can improve
its image.
TASK
Description of the company
Unilever Plc is a multinational company existed in London, UK and is dealing in a wide
range of products within the market-place. The organisation is offering products related to food,
home care, health care, etc. to the customer-base. Products of the company are air purifiers,
toothpaste, coffee, ice-cream, tea, condiments, minerals and supplements, cleaning agent,
personal care products, water, beauty products. The respective organisation has 400 brands and
earning a large number of profit (Cho, Fu and Wu, 2017). The most common brands of the
company are Axe, Lux, Dove, Omo, Lipton, Knorr, Lifebuoy, Sunsilk, Magnum, Sunlight, etc.
The organisation is also offering products related to personal care, home care, beauty care, food
and refreshment. Unilever Plc was established on September2, 1929 by William Lever. The
company is one of the largest producer of the soap because it is offering soap in large quantity
and has large number of brand in it.
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Description of the products
Dove is one of the good brand which is used by consumers and is owned by Unilever.
This is a personal care brand that is offering related products as well as services. Dove is
manufactured in various countries such as Australia, Canada, Japan, Thailand, Bangladesh,
India, Poland, Mexico and many more. The product is sold in many of the countries and is
available for men, women and children. Brand's product line consists of lotions, hair care, body
wash, beauty bars, facial care and many more (Eggert and et.al, 2020). This portfolio
concentrates on a particular product that is Dove Soap. Unilever wants to bring changes within
their soap by providing saffron ingredient in existing Dove soap that allows them to bring a new
and unique variant in their existing product.
Evaluation of competitive environment
For analysing the competitive environment, the framework of Porter's five Forces helps
the company in analysing different forces. It gives new form to the industry and facilitates in
ascertaining the internal business environment through determining strengths and weaknesses of
the industry. This is used in order to identify individual's structure for determining corporate
strategies and is introduced by Michel E. Porter in 1980. The explanation of this framework in
context of Dove soap is described as follows:
Threat of New Entrants: New entrants pressurize the existing companies through their reduced
prices, innovative ideas, differentiated products or services, low cost strategy. The power of the
any organisation can be influenced with new entrants in market-place. This does not need much
money and time for a rivalry to take entrance into the existing market in an effective manner.
Dove is not having threat from this type of force because organisation is enjoying the highest
economy of scale as it is one of the largest producer of Soap. There is an extending brand
development cost within the industry that generates threat for the competitors.
Bargaining power of customers: Customer-base wants to purchase their products at low cost
which is possible and pressurize the company such as Unilever Plc. Consumers are having high
power in making the changes in the process of decision-making of the company (El-Omari,
2019). The business of new variant of Dove is totally depends on the response of the target-base
towards this product. Low cost of switching make it convenient for them to shift to another
brand. Consumers have great information of various kinds of consumer goods that offer them
several choices and they make their decision after making an analysis of the different products
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process. However, the company is having several number of customer-base that means small size
of individuals who will not buy this product cannot impact the company so there is moderate risk
from this kind of factor.
Analysation of competitor: The competition among the existing rivals within nan
industry displays the number of rivals with strong competition. Competition is the
leading factor that can create problem for Dove as there are large number of companies
that are dealing in soaps (Gómez-Suárez, Yagüe and García-Gumiel, 2019). There is low
switching cost for the customer-base for shifting on another products. There are various
rivals that are present within the existing industry that are having competition with Dove.
Bargaining power of suppliers: A business needs raw material and other equipments for
the purpose of carrying out business operations in the market-place that it access from
various suppliers. The suppliers can make a direct influence on any business organisation
as it can generate impact on firm's supply. Unilever's product Dove has a large number of
suppliers that cannot affect on business because if one supplier stop its supplies to the
company, then the respective organisation can easily switch to another supplier.
Threat of substitute products: The products that can be easily replaced with other
product of the company offering same benefits are considered as substitute products.
These kind of products can make impact on the revenues and profits of the firm. There is
low switching cost associated with this type of force as consumers can easily shift to
products of the competitor. In context to Dove, there are less number of substitutes
available to the market, therefore, it does not create a threat for the company.
Analysation of competition:
Rivalry is one of the leading factor within a particular industry that influences business
operations. This can also affects the attractiveness of the industry in which a company wants to
carry out its business (Jones and et.al, 2018). It declines the profits as well as market-share of the
company and for capturing more target-base, a business may have to reduce its prices. There are
different kinds of factors that influence the profit margins of the organisation and must be taken
into consideration by Unilever when offering Dove. There are several substitutes of the products
that are available within market for which Dove requires to sum up some extra features and
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benefits to their products. The new companies would not generate a greater impact on the
company because entrance cost is relatively high within the market-place.
Identification of opportunities and threats
There are different opportunities as well as threats that are described as under in context
to Dove:
Opportunities:
There are different marketing opportunities for Dove that allow Unilever to expand its
business and profitability level. Some of these opportunities are described below:
Geographic expansion: The product-line of Dove is very large and is a multinational
brand that creates opportunities for the company to earn and maximise the level of profits
within the business (Lim, Jee and De Run, 2020). The company can expands the level of
profitability by offering the product at more geographical locations because the company
can sell its new products to different countries of the world. It permits the organisation in
expanding more products as well as profits by creating an opportunity for it to enhance its
customer-base.
Tie up with cooperatives: Unilever's product Dove can make its portfolio of product
more effective and strong by taking involvement with cooperatives and including
students of colleges because they can provide the company some new ideas that assists it
in gaining competitive benefits over rivalries in the market.
Target to male audience: Dove is introducing female concentrate products in the market
for making profits and the company has opportunity in introducing male centred products
because men also are becoming more conscious about their looks and skin. It can be done
by education through advertisements for years. This will provides assistance to men in
understanding the importance of better looks and gives opportunity to Dove for covering
market-place with their excellent products.
Threats:
There are different threats for Dove that occur in market for Unilever that does not permit
the company to carry out its business operations (Mulet-Forteza and et.al, 2018). Some of the
threats are given below in context to Dove soap:
Policies of government: This type of threat influence the business operations of Dove
soaps which is a multinational brand providing its products in various countries to earn
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maximum profits. For the purpose of selling the products in different countries,
administration o0f the company requires to adhere the government policies. These
policies can create a problem for Unilever by putting burden of taxes and duties and may
be a threat for company for maintaining sustainability within the market.
High competition: The competition within the market-place is very high and is a threat
for the company as there are different rivalries that are offering identical goods and
services in market (Osovtsev, Przhedetskaya and Sagidullaeva, 2018). The respective
competitors are developing effective strategies to sell out their products and services
related to Dove for capturing more customer-base. These rivalries influence the market-
share as well as profitability level of the company and to overcome from this situation,
Unilever has to reduce its prices that declines profits of company.
Competitor's copy strategy: It is another threat for Dove as there are different strategies
that are developed by the company in order to capture a large number of consumers and
developing strong brand value. But these strategies can be copied by the rivalries in the
market to attract more customer-base. It creates a threat for the organisation because it
reduces the chances of success of the marketing strategies.
Impact on Unilever:
This create several influences of these factors on business ans its operations along with
making an impact on profitability level. There are some impacts of the above factors and are
described below:
It pressurize the companies to decline their prices for offering products and services as
rivalries within the market-place are creating competition based on prices for capturing
large number of target-base.
The competition declines the level of profits of the organisation and does not allow the
companies for expanding their market-share (Pantano, Bassano and Priporas, 2018).
This also impacts the quality of the products because it provides goods and services at
low cost. For doing this, the company reduce its product quality which can bring negative
impact on the brand value of the company.
Marketing Mix
It is a set of elements that need to be determined by a company to promote its brand or
product effectively in market with an aim to earn and maximize its level of profit. For doing so,
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it concentrate on four elements of marketing mix that are Product, Price, Place, Promotion. The
marketing mix consists of other elements also like Process, People, Physical evidence and all are
also known as 7 Ps of Marketing mix. Dove's marketing mix strategy helps the company to stand
itself competitively in market to achieve targets of company (Putra and Putri, 2019). It analyses
brand with marketing mix framework mainly considered of 4 Ps and facilitates in building brand
as well as product's image effectively in market. Marketing mix of Dove is described as under in
context to new Saffron soap:
Product: Dove has introduced new saffron soap that provides moisturisation, softness as well as
cleansing. It consists of different elements within the soap like moisturising cream, saffron and
synthetic surfactants. This is offering best quality, features and repairs, packaging and
accessories to satisfy buyers because if product is not satisfiying the consumers then it does not
get acceptance from them in market. But if product is of superior quality then it get recognition
in market and helps business to grow.
Price: Dove is considered as the most affordable soap within the market-place by maintaining its
pricing policy in terms of inexpensive in comparison to products of competitors. Dove is
providing best quality with additional features that increases the demand of product. Brand
makes sure to maintain great features as well as packaging that justifies its price. For capturing
more customers and gaining competitive benefits, the company may also consider the discounts
and perks. This element of marketing mix has great influence on success of Dove that reflects its
marketing strategy, demand of product and sale.
Place: Dove has brand recognition in the market because the customer-base is aware of this
product and its network is expanded all over the countries as well as the brand can sell its
products through websites, catalogue, social media and trade shows (Rayburn, Anderson and
Sierra, 2020). Managers of the organisation understands the customer-base for establishing the
proper place for reaching out to consumers and making profits. With the help of effective
distribution channel, dove identifies the correct location of the business and will be a key
strategy of marketing. For making continuous profits, Dove resides as well as distributes at
locations that are both proper for business and accessible to customers.
Promotion: Dove is adopting unique promotional strategies to aware the customer-base with
new features and benefits of Dove Saffron soap. Promotional strategies include sales action,
direct marketing, social media promotion, advertising, mobile marketing that helps in expanding
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sales and generating revenues (Reddy, 2018). The new variant of Dove helps in interacting the
customer-base that increases products awareness which will have direct influence on brand
success.
Recommendation
From above explanation, it is recommended that Dove Soap must more concentrate on
the promotional activities for getting success in market-place. The promotion of the soap will
create awareness among customers about its features and benefits and will persuade them to buy
Dove saffron soap. It is also recommended to administration of Unilever that it must develop an
effective marketing strategy that helps the company to overcome from the competition in market.
This is significant for organisation to remain confident in its decision-making and strategy
process because it is copied by rivalries in market that does not give advantages of it. It is
suggested that managers of the company must adopt latest technology that helps them in
improving overall productivity of business as well as reduces its cost.
Branding
The process of branding consists of developing favourable as well as strong perception
about the products and services of the organisation in customers mind. It can be done with
design, logo, consistent theme and tag-line in order to do market communication. Effective
branding facilitates in differentiating the product from its competitors. It assists business to
overcome from competition because it builds unique image of company's products in customers
mind (Wierenga, 2021). Superiors of Dove can adopt various effective strategies to improve
brand recognition that are described as follows:
Trademark registration facilitates the company in protecting identity, logo, design, brand
name , etc. Dove must register its trademark to get unique identity within market-place.
They should also need to make sure of using social media within the organisation to
create impact on brands and on other companies too. Most of the people are using social
media sites so respective company can use social media platforms to increase products
awareness. It permits organisation to make direct contact with their audience as well as
give different information regarding bringing up of new products and services to them.
This is also essential for the organisation to build their identity that can be done by
establishing tag-line, brand name and logo. Logo refers to the visual embodiment of
brand and is significant for customers to interact with company's brand. Strong icon
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facilitates the organisation for gaining competitive advantage and give advantages of
differentiation from other brands.
For improving the process of branding, the company needs to research about the market
competition. It is significant for superiors of Unilever for understanding the market an the
methods that helps them in overcoming from competition by maintaining their presence
in the market-place.
This is significant for Dove to aware its audience about their presence in the market.
Customer-base should have knowledge about the products as well as services of the
organisation. They also required to identify their roles for the success and growth of the
company. Administrators of the company are required to understand the neds,
requirements and wants of the target-base. It is also necessary for them to recognise the
methods of communication with customer-base and make them interested about Dove
products.
Reputation
Reputation of brand refers to view and perceptions about specific brands by customers,
stakeholders and a market as a whole. This is considered as a stage of emotion and thoughts that
are associated with the customer-base (Yaghtin, Safarzadeh and Zand, 2020). It is concerned
with the brand and experiences of customer service while purchasing products and services as
well as using them along with the services offered by the organisation after the sale of its
product. Brand reputation facilitates the company in developing the trust among the customers
and enhancing brand loyalty in them. It helps in expanding the volume of sales and offering
competitive benefits. It creates favourable word-of-mouth as well as gives opportunities to
business for its expansion. There are some ways that helps management of Dove in improving
their reputation of brand and these ways are described as under:
It is significant for a company to be a thoughtful leader that allows it for connecting with
their brand.
This can be done by making improvements in experiences of customers that can be done
with the help of favourable review of social media.
Administrators of Dove can develop their strong online presence along with optimising
the search engine.
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CONCLUSION
From above explanation of the report, it is concluded that management of the marketing
is the significant process that facilitates a business in controlling several aspects that are
concerned with marketing activities. With the help of marketing management, the company can
easily set its objectives and makes essential decisions for getting better returns. For effective
marketing, it is important for an organisation to analyse the competitive environment of
organisation because it helps them in recognising those factors that are negatively impacting the
business operations. Porter's five forces model has been used in the report to analyse the
competitive environment. The factors within the model creates threats and generates opportunity
within the market-place for the company. Marketing mix of the company has also been discussed
in this portfolio that helps the company in making effective marketing strategies to expand the
business. With the help of effective branding techniques, the company can differentiate its
products from its competitors within the market-place.
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REFERENCES
Books and Journals
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Contemporary Hospitality Management.
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2014. Journal of Interactive Marketing. 40. pp.52-72.
Eggert and et.al, 2020. Understanding and managing customer value propositions: Introduction
to the special issue.
El-Omari, H. A., 2019. Marketing information, management and use: the case of Saudi
Arabia. Journal of Islamic Marketing.
Gómez-Suárez, M., Yagüe, M. J. and García-Gumiel, C., 2019, June. Measuring the Experiential
Marketing Orientation Management of Shopping Centres. In International Conference
on Advances in National Brand and Private Label Marketing (pp. 35-42). Springer,
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Jones and et.al, 2018. A prototyping analysis of relationship marketing constructs: what
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Lim, W. M., Jee, T. W. and De Run, E. C., 2020. Strategic brand management for higher
education institutions with graduate degree programs: empirical insights from the higher
education marketing mix. Journal of Strategic Marketing. 28(3). pp.225-245.
Mulet-Forteza and et.al, 2018. Twenty five years of the Journal of Travel & Tourism Marketing:
a bibliometric ranking. Journal of Travel & Tourism Marketing. 35(9). pp.1201-1221.
Osovtsev, V. A., Przhedetskaya, N. V. and Sagidullaeva, M. S., 2018. Conceptual Model of
Adaptive Management of Strategic Marketing: A System Approach. European Research
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Pantano, E., Bassano, C. and Priporas, C. V., 2018. Technology and innovation for marketing.
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Putra, I. W. J. A. and Putri, D. P., 2019. The mediating role of relationship marketing between
service quality and customer loyalty. Journal of Relationship Marketing. 18(3). pp.233-
245.
Rayburn, S. W., Anderson, S. and Sierra, J. J., 2020. Future thinking continuity of learning in
marketing: A student perspective on crisis management in higher education. Marketing
Education Review, pp.1-15.
Reddy, B. A., 2018. Green marketing: a study ON CONSUMER’S perspectives. New Trends in
Business Management, 120.
Wierenga, B., 2021. Commentary on Kohli & Haenlein: The study of important marketing issues
in an evolving field. International Journal of Research in Marketing. 38(1). pp.18-28.
Yaghtin, S., Safarzadeh, H. and Zand, M. K., 2020. Planning a goal-oriented B2B content
marketing strategy. Marketing Intelligence & Planning.
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