Unilever Group Dove Intensive Repair: Situation Analyssis Report
Unilever Group Dove Intensive Repair: Situation Analyssis Report
Unilever Group Dove Intensive Repair: Situation Analyssis Report
DOVE GROUP
INTENSIVE
REPAIR
1
PAGE \*
Arabic \*
MERGEFOR
RMIT UNIVERSITY
CAMPUS SAIGON SOUTH
SCHOOL OF BUSINESS AND
MANAGEMENT
MTKG1205– Marketing Principle
Student Information:
STUDENT NAME STUDENT ID
NUMBER
Nguyen Thoai Khang s3752294
Ho Thu Quyen s3761911
Lu Kim Thanh s3754106
Le Bao Vuong s3757301
Huynh Doan Thuy Trang s3740916
Nguyen Thi Mai Anh s3794043
Bui Dang Huy s3748979
UNILEVER
Vietnam
156 Nguyen Luong Bang Street,
UNILEVER
Ho Chi – INTENSIVE
Minh, Ho Chi REPAIR
Minh DOVE - RANGERS
City Vietnam
Submission date:
Word count:
Unilever group is an international company owns over 400 popular brands which are leading in
the world’s fast-moving consumer goods in 100 countries worldwide. In 1995, Unilever came to
Vietnam as a foreign investor and spent $300 million on building modern two factories in Ho Chi
Minh city and Bac Ninh province. Over two decades, Unilever has become one of the most successful
foreign investor in the FMCG sector (Unilever Global: Unilever investment in Vietnam, 2009). It is
estimated that there are nearly 35 million of Unilever products consumed in a day by Vietnamese
consumers ( Unilever official Vietnam website, viewed on 2013) ). One of the brands of Unilever
which has been familiar with Vietnamese women is “Dove”. Dove releases a lot of products in
Vietnam such as hair care, skin cleansing and antiperspirant deodorants and these are currently popular
and reliable because of its high quality but affordable for Vietnamese customers. In this report, every
developing and marketing strategy which help Dove improves dramatically over 20 years will be
analyzed thoroughly.
2 SITUATION ANALYSIS
3 MARKETING ENVIRONMENT
3.1.2 Suppliers
Vietnam National Chemical Group (Vinachem) became a chemical provider to Unilever in
2010 and become one of the most important suppliers of the company. The main materials of Dove’s
producing were from Vinachem, the company still had to purchase many other materials to produce,
which is approximately $100,000,000 per year. Both two companies, then, make a decision that they
should cooperate to make needed chemical materials (Vietnamplus, 2010) rather than Unilever spend
huge money on buying them. Therefore, Unilever can save funds for other things.
Unilever, then, try to aim to be a partner with more environmentally-friendly companies after
they applied the sustainable strategies, yet the supplier list did not change much year through the year.
3.1.3 Public
3.1.3.1.1 General public
Intensive repair Dove, in these years, quite popular, in a positive way, with Vietnamese
women. (Appendix 1)
The Strong competitor such as TRESemme or L’oreal come from around the world through
advertising and the announcement of U.S department of health and human service about L’oreal
scandal (Appendix 2) in these years nearly change the general public view about shampoo product.
However, because of this announcement, Dove should be careful more in producing.
3.1.5 Competitors
In term of quality, direct competitors: Clear, Pantene and Sunsilk (Appendix 1 & 3)
In term of brand, in these recent years, TRESemme (Appendix 4) and Korea became one of the most
popular hair products for B, A, and even A+ class consumers, big hair salon and spa (Appendix 3), yet
after Vietnamese knew about L’oreal’s scandal, it is not a very big competitor of Dove anymore, until
recent years. (Appendix 2)
🡺 In conclusion, Dove have strong competitors in both quality and brand field. These
competitors, in general, target in a variety of class and give more advantage in many aspects, compare
to Dove. As a result, if customer compares Dove in a general view, the competitors would illustrate
that Dove did not change much through the period and offer a not reasonable choice.
3.1.6 Customers
Consumer market: mainly target on X generation, women in Vietnam.
● When it comes to Dove in Vietnam, intensive repair Dove, firstly, was believed that was
promoted for young ladies who have long hair with “I’m a lady of DOVE” (Baomoi, 2010). However,
3.2.1 Politics
The Communist Party of Vietnam has been remaining in a stable policy environment. Vietnam
is also a safe country to run a business because terrorism and threats to personal security rarely happen.
Moreover, corporate income tax was reduced from 25% to 22% in January 2014 and then to 20% in
January 2016. (This number is still available now) (Khoa. D, 2019)
Vietnam has been accepted and joined the World Trade Organization (WTO) since November
11th, 2007. The government, for the reason, is more opened to integrate into international trade and
investment: participating in ASEAN Economic Community at the end of 2015; signing EU-Vietnam
free trade agreement which comes into effect in early 2018. (Khoa. D, 2019)
🡺 Impact: With the stable policy and peaceful environment, Unilever, as well as Dove, don’t
have to worry about war or terrorism which may risk their safety. The tax law could heavily affect the
financial resources of any company. However, Vietnam has reduced the income tax which means the
company (Unilever shampoo factory in Vietnam) can save more money than before. Finally, Vietnam
now gives foreign companies such as Unilever-Dove more chances of operating in this nation when
joining international organizations.
3.2.2 Economic
3.2.3 Demographic
As Worldometers website’ s statistic, Vietnam has just over 97 million people. It can be seen as
an overpopulation country and a majority of them is in labor age. (Appendix 6) Furthermore, people
increasingly move into the developed city such as Ho Chi Minh and Hanoi. The UN forecast the urban
population increasing from 23% in 2013 to more than 50% by the early 2040s. (Demographic profile,
2015)
🡺Impact: With the steady rate of population, Dove will maintain a stable amount of consumer
through the years. Thus, because intensive repair shampoo aims at young and middle age female
customers, it is a benefit for Dove because Vietnam is the best marketplace where middle age people
3.2.4 Nature
According to international organizations, Vietnam ranked 17th in the world plastic waste
pollution with 13 tons of plastic waste released to the ocean every year. The Ministry of Natural
Resources and Environment (MONRE) estimated that about 80 tons of plastic waste are released in Ho
Chi Minh City and Hanoi combined. ( vietnamnews, 2019)
🡺Impact: Unilever (Dove’s company) and Vietnam have participated in the project Zero Waste to
Nature which builds a sustainable business model for limiting the use of plastics in production as well
as reusing and recycling plastics.
3.2.5 Culture
In Vietnamese cultures, mothers still have a traditional mind that does not encourage their
children, especially daughter, to have styling hair. “Good girls” are considered to have long black hair
as the same as every woman in the past. With the opened-mind society, young people want to break the
old order for having styling hair but causing controversy between them and their parents. (Appendix 7)
🡺Impact: The campaign showed stories of three young girls have an outbreak hairstyle in their
mother thought. This campaign inspires mothers to dismiss prejudice of modern hairstyle and
understand their daughters.
3.2.6 Technology
Nowadays, Vietnamese businesses have strong demands in investing technology to generate a
product. In October 2018, 57% of businesses reported that they are speeding up investment in
technology, whereas others are remained as investing gradually or still in preparatory stages.
🡺Impact: Although Vietnam has started to invest technology in the manufacture, it is still far
behind other developed countries in Asian. Applying technology will be a big concern for the
company.
4 SWOT ANALYSIS
4.1 Strength
● The local company in Vietnam can get support in many different aspects like money or human
resource from parents company.
● The old structure has been replaced into a brand-new concept that a decision could be done
directly and more quickly. This structure offers fewer management layers but giving more ability for
different areas.
● Unilever has an efficiency of digital marketing strategies with a good slogan and advertising,
for example.
● Unilever’s fund could be saved for other departments ‘development after the cooperation with
Vinachem. It is also mean that they need to spend less money on earning the same profit.
4.2 Weakness
● Some technologies used in Unilever’s might not be able to apply in Vietnam, also the
technologies in Vietnam are still establishing. It can lead to damage Unilever’s honor in long-term
conditions
● The local Unilever in Vietnam, until now, cannot independently of parents company. If they
made an important decision, they still need to approach the leader from parents, which would take some
time.
● The company, in 2010, applied the USLP, this is good for their business image and long-term
development, yet in this first period, it would cost lots of time and money to rebuild the company’s
structure.
● Many high positions in Unilever Vietnam are held by foreigners, who know less about
Vietnamese culture and hard to have an omnipotent view of Vietnam social.
● According to 3.1.2. , while trying to be a partner with more environmentally-friendly
companies, the supplier list of the company is still not changing much. This cause the difference
between the strategies and the fact, which make the top manager hard to control all departments or
decide things slower.
● Their competitor may show that intensive repair Dove did not improve much every year.
4.3 Opportunities
● Since the Communist Party of Vietnam has been maintaining a stable policy environment,
Dove has a possibility for achievement in Viet Nam marketplace. Moreover, with the minimum risk of
war and terrorism, the company don’t have to deal with their safety issue.
● The reducing of tax help the company to save its finance since the amount of money they pay
for the tax is much smaller than before.
● The act of joining an international organization in the business field, the Vietnamese
government gives foreign brands such as Dove opportunity to join the marketplace.
● Vietnam is the most suitable marketplace for Dove because the county has a young population
structure which mainly targeted by the company.
● With the high population, Vietnam is the best supplier to provide human resources for the
company. Consequently, the company will have the potential to be a work-leading company.
4.4 Threats
● Dove will have to face many competitors as Vietnam is considered as a potential marketplace
with their fast economic growth.
● The income of Vietnamese is higher than previous, even they are in what types of class. In fact,
the customers, who always have higher demands and they, now, have more money, would move on the
better shampoo if intensive repair Dove could not offer a high-quality product. Thus, Dove could lose
their position if they do not improve.
● Investing technology in Vietnam for manufacture may cause many unpredictable consequences
since Vietnam just takes its first step in approaching technology investment.
● Dove also shares the potential market with herbal shampoos. Women in Viet Nam still like to
use soapberry or organic shampoos that do not contain chemicals which lead to damaged hair. So,
environmentally friendly shampoo products are preferred in comparison with normal shampoos.
● After the announcement of the Department of Health and Human Services( Appendix 1), Dove
should be produced in a careful project.
● While they have more chances to advertising in media is a strength and opportunity, they also
have more chances to lose customers with their scandal if they do not focus enough on improve their
business image as well as let their competitor hold more media power.
5 S.T.D.P
5.1 Segmentation
Geographic
Since the price of the product is quite reasonable for the middle class and above
thus the market environment for the rural market is different from the urban.
However, with the extreme weather in the rural of Vietnam such as the middle zone
Location and the busy working schedule of women, their hair may have many problems and
need to repair. For these reasons, the middle area in Vietnam is a good market for
Dove to target to the middle class with a quite soft price, compare to other areas.
(Uniliver_Vietnam, Marketline, 2017) vietnam (Appendix 1)
5.2 Targeting
Dove’s niche marketing plan focuses on bringing this shampoo out to those women who
currently struggle with hair damage. Generally speaking, Dove is keen on delivering a product in a
specific group that is a niche. Then, they continuously break the group down into smaller ones, till it
can directly target the consumer and satisfy their needs. For example, Dove launched all high-quality
products along with their video on the Vietnamese Women’s Day “Cùng Dove tự do thả mình strong
từng kiểu tóc" (Appendix 5) which triggers the consumers’ minds of no matter what age you are, Dove
will help to reveal your beauty and boost up your confidence in fulfilling your life in every second.
Dove’s targeting strategy falls into demographic characteristics, especially presents in three
aspects: Age, Sex and Lifestyle. Generally speaking, Dove’s products currently stick with all young
Women, especially X generation, who want to escape the case of their life and do what they want.
e.
5.3 Differentiation
The Unilever offers both product and image differentiation.
● Product: It really stands out in the market whereas middle-age women are worried about
protecting their hair. To be more specific, this shampoo provides a variety of essential nutrients in its
formula that “repairing signs of surface damage, making your hair look and feel smoother and stronger
against breakage.” (Dove 2019) along with the special ingredient “Nutri-Keratin Repair Actives”.
Furthermore, Dove also maintains well the PH level along with the minimal chemical effects on your
hair in the long run.
● Image: When people mention about Dove’s accomplishment “Dầu gội Dove Ngăn rụng tóc đã
giành giải "Người đọc bình chọn nhiều nhất" strong giải Elle Beauty Award 2012. Hàng trăm ngàn phụ
nữ Việt Nam đã tin dùng và công nhận rằng Dove sữa tắm giúp dưỡng ẩm, who da mềm mịn tốt hơn cả
sữa.” (Unilever Vietnam, 2019), they graciously compliment that Dove’s shampoos would always be
5.4 Positioning
5.4.1 Positioning map
First map: Consumers are mainly focused on the scent of the product which suits everyone
differently, and the price (≈650 ml per bottle) that they can afford. (Using price and scent of a product
to evaluate the position of brands)
Second map: The products’ popularity and organicity are being acknowledged in recent year.
Consumers care about the brand name its quality in ingredients. ( Depending on sales and ingredients
the locate brands’ position )
7 APPENDIX
Appendix 1:
According to the detail from Vietnam Market Research in 2016, the below chart shows that
● Dove ranked second, middle of Vietnam, and ranked third in the north and south of Vietnam.
● It’s can be seen that in Vietnam Dove is one of the most popular hairs shampoo brands.
● Clear, Sunsilk and Pantene can be seen as a big competitor of Dove, especially Clear (when it
comes to the popular level).
20%
20% 17%
15% 16% 15% 16% 16%
15% 12% 13%
11% 11%
10% 8%
5%
5%
0%
North Middle South
Appendix 2: After the announcement of the U.S Department of Health and Human Services
about the amount of formaldehyde in some types of shampoo from Johnson & Johnson or L’Oreal is
too high and causes cancers to people (Bach & Nam 2009). It also leads to the stop of selling
shampoos from some large supermarkets such as Big- C, Coop mart or Martximart until the official
Appendix 3:
● Clear is also a branch of Unilever Group, which helps in the scalp problems. The new version
of Clear could be used by both men and women. This version is considered a Dove’s competitor
because it offers consumers a giving-nutrition choice of shampoo and the company could earn profit
from it. (total revenue of Clear Vietnam in Binh Duong province: $42,069,280) (EBSCO host, 2019)
● Pantene has various products, which are advanced care (according to Pantene official website).
This includes anti-breakage, aqua light, beautiful lengths, classic clean, curl perfection, daily moisture
renewal, damage detox, everlasting ends, and also heat shield. For these benefits, Pantene is the most
direct competitor of Intensive repair Dove.
● The hair care products of Sunsilk are simple and helps to keep the hair strong and well-
groomed. Furthermore, some type of Sunsilk, in these years, produced for hair repairing with nature
and traditional herbal like soapberry. This new hair shampoo not only repairs broken hair but also
protect hair from UV. Thus, due to their products’ purpose, Sunsilk can be seen as one of the top Dove
competitors.
Appendix 5:
campaign video: “Cùng Dove tự do thả mình strong từng kiểu tóc” (Own a hairstyle that you
like)
Song: “Giữ Cho em một thế giới” (Keep for me a little world)
Singer: Trang
Resource: office DOVE YouTube channel
Link: https://www.youtube.com/watch?v=Y3mv2eP2KWg
Public date: 07/03/2019 (near Women’s day)
Appendix 6:
The Economist Intelligence Unit forecasts that Vietnam’s population will continue to grow at a
steady rate of around 1% a year in 2015-2019. Middle age people account for the highest percentage of
the population, which provide a large human resource for the business field. Vietnam is ranked 15th in
the world’s population and rural area accounts for the highest number of citizens. (Demographic
profile, 2015)
Appendix 7:
campaign video: “Là chính mình sẽ dễ dàng hơn, khi ta có một người bên cạnh” (Be yourself,
yet not alone)
Resource: office DOVE Vietnam YouTube channel
Link: https://www.youtube.com/watch?v=RJccJVCZyV8
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