Brand Extension Analysis

Course: Brand ManagementInstructor: Prof. Sameer Mathur

Expected to reach INR170

billion by 2018

Grew by 17% in 2013 to reach INR

135.2 billion

CAGR of 16.13% from

2009-13

Hair Care Category in India

2009 2010 2011 2012 2013

30,061.10 32,389.7036,726.90

41,476.1046,799.80Shampoo Segment (INR million)

CAGR of 12.06% between 2009-2013

HIGHLY FRAGMENTEDDove

Dove had a market share of 4.4% in 2014

SHAMPOO SEGMENT

CONSTITUTED 35% OF HAIR CARE IN

2013

35%

Shampoo segment’s contribution to hair care

in 2013 (value wise)

Source: Euromonitor

Source: Euromonitor

Hair Care Market (retail % split by manufacturer)

Hindustan Unilever Ltd Dabur India Ltd Marico Ltd L'Oréal India Pvt Ltd Procter & Gamble Home Products Ltd Godrej Consumer Products Ltd Emami Ltd Hygienic Research Institute CavinKare Pvt Ltd Bajaj Consumer Care Ltd Dey's Medical Stores Mfg Ltd Amway India Enterprises Pvt Ltd ITC Ltd Wella India Haircosmetics Pvt Ltd Henkel India Ltd Himalaya Drug Co, The Others

About the Manufacturer

Net sales of INR 258.1bn and profits of INR 30 bn in previous financial year

Leader in the overall beauty and personal care

in India in 2013 with a 30% market share

Leader in 7 out of 10 main categories

Widest product portfolio with strong presence in some of the fastest-growing categories HUL had a market share

of 17% in 2013 in hair care categorySource: EuromonitorSource: Company Annual Report

The Brand

Launched in US in 1957

Fastest growing hair category brand in

India

Leading bar brand in UK, US

and CanadaPresence in 80

countries worldwide

Launched in India in 1993

Source: Company Website

Skin CareSoaps, Body

Wash, Face Wash,

Lotions

Hair CareShampoos,

Conditioners, Hair Oil

Anti-PerspirantsDeodorants

Portfolio

Source: www.dove.in

2010 2011 2012 201302468

101214161820 18.8 17.5 17.3 16.6

3.4 3.7 4.1 4.3

Share in Hair Care: % Value (2010-2013)

Hindustan Unilever Ltd Dove

The Brand Extension

Fastest growing shampoo brand in India

Dove entered the shampoo market in 2007

Offers 5 Variants

Source: Euromonitor

Dove Shampoos

ProductPremium shampoo range offering 5 variants with different benefits

Dryness Care

Nourishing Oil Care

Split end Rescue

Dandruff Care Hair fall Rescue

With one-quarter moisturizing milk

Price

180ml for Rs. 155340ml for Rs. 279

All variants line-priced

Competitors’ Price Analysis

170ml for Rs. 155180ml for Rs. 125175ml for Rs. 145

175ml for Rs. 120

3 SKUs: 180ml, 340ml, 650ml

650ml for Rs. 410

180ml for Rs. 155175ml for Rs. 135

Premium pricing as compared to most competitors

H&S more expensive than Dove

Place Across Channels

Modern Trade Outlets Chemists & Pharmacies

General Trade Stores Online retailers

Tier 1 & Tier 2 cities

Promotion

Dove’s umbrella campaign across categories

Evolution Tick-box campaign Average beautiful campaign Real Beauty Sketches

Make more women feel beautiful everyday

PromotionDove Shampoos Promotion

Television commercials

Price-off promotionsSocial media engagement

Youtube ads

Comparative marketing: Hoardings

Online marketing

Ordinary “Real” women featured in all forms of advertisements: No celebrity brand endorsement

Positioning

Tier 1 and Tier 2 cities in India

Segmentation

DemographicGeographic Behavioral

TargetingFemalesAge Group: 18-34yrsHigh Income groupsUpper middle class

Women who love to

experiment with their hair

Women who want damage-

free hair

PositioningOne-fourth moisturizing milk Dove protects your hair from damage

Experiment with your hair without worrying about hair damage

Positioning

Competitive Frame of Reference

Price

Protection from hair damage

Hair fall repairDandruff careSoft, smooth

hair

1/4th Moisturizing milkRepairs damaged hair

POD

POP

Crucial POD: Repairs hair which are damaged from coloring, straightening, curling

Gives women the confidence to experiment with their hair and look beautiful