Running Head: Market Analysis of Dove

Market Analysis of Dove in Australia [Name of the Writer] [Name of the Institution]

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Market Analysis of Dove

Executive Summary This report is about the market analysis of dove in Australian market. Dove is a cosmetic care company by Unilever. Unilever is a household name and the leading producer and manufacturer of consumer care products. Dove comes under the category of the personal hygiene market which consists of bath & shower products, soaps, deodorants, body washes, lotions, beauty bars, moisturizers, antiperspirants, shampoos and hair care products.

Unilever first began its operations in Australia, in 1899. It set up its first soap production factory in Sydney. Today it is the leading cosmetic care company in the country with a growth of 4.6% in 2010. Where as Unilever is the leader in Australian hygiene market with a striking share of 44.5% in 2010.

Further I discussed the major environmental element concerning FMCGs in Australia. Rise in petrol prices and threats of new entrants were the main concerns. High prices will drive the cost for Australian manufacturers. Suppliers will have to absorb the price increase because of the competitive environment.

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Market Analysis of Dove Table of Contents

Running Head: Market Analysis of Dove..........................................................................................................i Market Analysis of Dove in Australia...............................................................................................................i [Name of the Writer]..........................................................................................................................................i [Name of the Institution]....................................................................................................................................i i Executive Summary..........................................................................................................................................ii This report is about the market analysis of dove in Australian market. Dove is a cosmetic care company by Unilever. Unilever is a household name and the leading producer and manufacturer of consumer care products. Dove comes under the category of the personal hygiene market which consists of bath & shower products, soaps, deodorants, body washes, lotions, beauty bars, moisturizers, antiperspirants, shampoos and hair care products.....................................................................................................................................ii Unilever first began its operations in Australia, in 1899. It set up its first soap production factory in Sydney. Today it is the leading cosmetic care company in the country with a growth of 4.6% in 2010. Where as Unilever is the leader in Australian hygiene market with a striking share of 44.5% in 2010........................ii Further I discussed the major environmental element concerning FMCGs in Australia. Rise in petrol prices and threats of new entrants were the main concerns. High prices will drive the cost for Australian manufacturers. Suppliers will have to absorb the price increase because of the competitive environment.. .ii Introduction.......................................................................................................................................................1 Dove is a company which manufacture products for skin care like soaps, shampoos moisturizers etc. It falls in the industry category of fast moving consumer products (FMCG). FMCGs includes products of daily use by consumers like skin care, detergents, food, confectionary, beverages, pharmaceuticals and other household goods. These products are easily available at super markets or grocery stores and are used in our day to day lives.........................................................................................................................................1 Cosmetic company Dove is the brand name owned by Unilever. It is the worlds largest producers of consumer goods. Particularly Dove comes under the category of the personal hygiene market which consists of bath & shower products, soaps, deodorants, body washes, lotions, beauty bars, moisturizers, antiperspirants, shampoos and hair care products. Dove is not only worlds but of Australias leading brand in cleansing. It is clinically proven and accepted to be an effective solution for dry skin...................1 .........................................................................................................................................................................1 Discussion.........................................................................................................................................................2 Market Background and History......................................................................................................................2 Unilever first began its operations in Australia, in 1899. It set up its first soap production factory in Sydney. Today, Unilever has more than 1800 employees in Australian office and factories. It generates estimated $ 1 billion sales each year in Australia. Unilever offers a portfolio that includes, dove which is a household name in Australia............................................................................................................................................2 In 1940, Dove developed antiseptic dove bar for sensitive skin type. Later, in 1957, it came up with the famous dove beauty bar. In 1980, it became the household name in Australia and proved to be milder than other leading bars. In 1995, Dove came up with other products, which includes moisturizers, scrubs, shampoos and cleansers. Further in 1999 it introduced body wash where as in 2001, its deodorant line was launched..........................................................................................................................................................2 In 2003 dove offered complete hair care products like shampoos for different types of hair, conditioners and damage control hair therapies products. In 2004, we witnessed real women campaign from dove, which inspired women to enjoy their beauty. This real women campaign was an important and critical time for dove as the marketers were not sure of the response from Australian women. They had doubt and concern as to how women would feel, but it proved to be a success. ..........................................................................2 Market size.......................................................................................................................................................3 I mentioned earlier that Dove falls with in the personal hygiene market segment. The personal hygiene market of Australia generated total revenues of $558.3 million in 2010. It has a compound annual growth rate (CAGR) of 4.4% for the period from 2006 to 2010.................................................................................3 Market growth..................................................................................................................................................3 The Australian personal hygiene market showed a growth of 4.6% in 2010 as compared to 4.3% in 2009. It reached a value of $558.3 million in 2010. The compound annual growth rate of the market is 4.4% for the period starting from 2006 till 2010.................................................................................................................4 Market share.....................................................................................................................................................4 This is the pie chart which is showing market share of companies in FMCG industry in Australia. It can be clearly seen that Unilever is the leader in Australian hygiene market with a striking share of 44.5% in 2010. Where as others contributes 37.0% to the market. Colgate Palmolive has a share of 13.4% followed by PharmaCare Laboratories with 5.0% of the market...................................................................................4

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Market Analysis of Dove

Environmental Factors .....................................................................................................................................5 Environmental factors can be micro or macro that affects a company. The micro environment factors are those elements or conditions over which a company has complete control. Where as, macro environment factors are out of the companys control. These are the factors which cannot be manipulated by the company, for its own benefit. There are many micro and macro environmental factors affecting dove currently e.g. Political, Technological, Cultural, Economic, but there are two most significant macro environmental factors that are currently affecting the Australian industry the most. One of the greatest concerns is the petrol price which has a negative impact on the suppliers.....................................................5 The Nielsen Company conducted a survey which is called barometer survey. Over 100 officials of leading Australian FMCG companies were asked to participate in it. There were asked about the business concerns of FMCG sector. According to the result of this survey, the major environmental element concerning FMCGs in Australia is the rise in petrol prices. High prices will drive the cost for Australian manufacturers. Suppliers will have to absorb the price increase because of the competitive environment. This factor indirectly brings up another factor which will affect the market..................................................5 FMCG companies in Australia face a very competitive environment. They possess threats not only from the competitors already present in the market but also from new entrants. Plus consumers focus more on cost and less on brand name in Australia. Such high prices can lead to decrease in market share. If, dove manufacturers are not able to absorb price increase than there is always a threat that some new entrant will eat up the share of dove in future....................................................................................................................6 Conclusion........................................................................................................................................................6 This report proved to be very enjoyable experience for me. It is about one of the leading cosmetics care product company, namely Dove. The report included the history of the company, its market size, market growth and market share in Australia. Towards the end of the report, I presented two major environmental concerns for the company in Australia. These concerns are rise in petrol prices and threat of new entrants. 6 Appendices........................................................................................................................................................7

Market Analysis of Dove Market Analysis of Dove in Australia

Introduction Dove is a company which manufacture products for skin care like soaps, shampoos moisturizers etc. It falls in the industry category of fast moving consumer products (FMCG). FMCGs includes products of daily use by consumers like skin care, detergents, food, confectionary, beverages, pharmaceuticals and other household goods. These products are easily available at super markets or grocery stores and are used in our day to day lives.

Cosmetic company Dove is the brand name owned by Unilever. It is the worlds largest producers of consumer goods. Particularly Dove comes under the category of the personal hygiene market which consists of bath & shower products, soaps, deodorants, body washes, lotions, beauty bars, moisturizers, antiperspirants, shampoos and hair care products. Dove is not only worlds but of Australias leading brand in cleansing. It is clinically proven and accepted to be an effective solution for dry skin.

Market Analysis of Dove Discussion Market Background and History Unilever first began its operations in Australia, in 1899. It set up its first soap production factory in Sydney. Today, Unilever has more than 1800 employees in Australian office and factories. It generates estimated $ 1 billion sales each year in Australia. Unilever offers a portfolio that includes, dove which is a household name in Australia. In 1940, Dove developed antiseptic dove bar for sensitive skin type. Later, in 1957, it came up with the famous dove beauty bar. In 1980, it became the household name in Australia and proved to be milder than other leading bars. In 1995, Dove came up with other products, which includes moisturizers, scrubs, shampoos and cleansers. Further in 1999 it introduced body wash where as in 2001, its deodorant line was launched. In 2003 dove offered complete hair care products like shampoos for different types of hair, conditioners and damage control hair therapies products. In 2004, we witnessed real women campaign from dove, which inspired women to enjoy their beauty. This real women campaign was an important and critical time for dove as the marketers were not sure of the response from Australian women. They had doubt and concern as to how women would feel, but it proved to be a success.

Market Analysis of Dove Market size I mentioned earlier that Dove falls with in the personal hygiene market segment. The personal hygiene market of Australia generated total revenues of $558.3 million in 2010. It has a compound annual growth rate (CAGR) of 4.4% for the period from 2006 to 2010. Market growth

Source: Data Monitor

Market Analysis of Dove The Australian personal hygiene market showed a growth of 4.6% in 2010 as compared to 4.3% in 2009. It reached a value of $558.3 million in 2010. The compound annual growth rate of the market is 4.4% for the period starting from 2006 till 2010. Market share

Source: Data Monitor

This is the pie chart which is showing market share of companies in FMCG industry in Australia. It can be clearly seen that Unilever is the leader in Australian hygiene market with a striking share of 44.5% in 2010. Where as others contributes 37.0% to the market. Colgate Palmolive has a share of 13.4% followed by PharmaCare Laboratories with 5.0% of the market.

Market Analysis of Dove Environmental Factors Environmental factors can be micro or macro that affects a company. The micro environment factors are those elements or conditions over which a company has complete control. Where as, macro environment factors are out of the companys control. These are the factors which cannot be manipulated by the company, for its own benefit. There are many micro and macro environmental factors affecting dove currently e.g. Political, Technological, Cultural, Economic, but there are two most significant macro environmental factors that are currently affecting the Australian industry the most. One of the greatest concerns is the petrol price which has a negative impact on the suppliers. The Nielsen Company conducted a survey which is called barometer survey. Over 100 officials of leading Australian FMCG companies were asked to participate in it. There were asked about the business concerns of FMCG sector. According to the result of this survey, the major environmental element concerning FMCGs in Australia is the rise in petrol prices. High prices will drive the cost for Australian manufacturers. Suppliers will have to absorb the price increase because of the competitive environment. This factor indirectly brings up another factor which will affect the market.

Market Analysis of Dove FMCG companies in Australia face a very competitive environment. They possess threats not only from the competitors already present in the market but also from new entrants. Plus consumers focus more on cost and less on brand name in Australia. Such high prices can lead to decrease in market share. If, dove manufacturers are not able to absorb price increase than there is always a threat that some new entrant will eat up the share of dove in future.

Conclusion This report proved to be very enjoyable experience for me. It is about one of the leading cosmetics care product company, namely Dove. The report included the history of the company, its market size, market growth and market share in Australia. Towards the end of the report, I presented two major environmental concerns for the company in Australia. These concerns are rise in petrol prices and threat of new entrants.

Market Analysis of Dove Appendices Business conditions deteriorating for FMCG sector as top Aussie manufacturers predict a downturn to come 24 June 2008 Australia
Business confidence amongst Australian fast moving consumer goods (FMCG) manufacturers has taken a turn for the worse with 45 percent saying business conditions have deteriorated in the past 12 months, according to the latest Nielsen research. The findings were released today by The Nielsen Company as part of its latest bi-annual Retail Barometer survey which captured responses from over 100 senior leaders from top Australian FMCG companies on business confidence and concerns. Less than a quarter of respondents (23%) to the Retail Barometer survey said they felt business conditions had improved in the 12 months to May 2008, which was a drop of 10 percentage points compared to May 2007. The business outlook for the next few years

has also started to wane according to the industrys leaders, with 39 percent predicting that business conditions in the next one to two years would deteriorate, up six points in the past six months. Around one third (34%) felt business conditions would improve, down five points in the past six months). As petrol prices continue to escalate and the threat of further interest rate rises looms, weve seen consumer confidence start to dip in recent month, observes Kosta Conomos, Executive Director of Pacific Retailer Services, The Nielsen Company. This in turn

Market Analysis of Dove

appears to be having a negative effect on supplier sentiment, as FMCG manufacturers know only too well that as consumers begin to tighten their belts this will inevitably impact sales passing through supermarket check-outs. Curiously, overall sales growth expectations for FMCG manufacturers were in contrast to the gloomy outlook for business conditions, with a slight increase in estimated sales growth. More than one in 10

manufacturers (11%) said they anticipated their sales would be up by 16 percent or greater in 2008 and a further 23 percent were expecting between eight and 15 percent growth. Just three percent

said they thought their business would record negative growth. Asked what kept them awake at night, manufacturers ranked pricing as their number one concern in terms of the impact it might have on their business, a significant jump compared to the November 2007 results when pricing ranked number three. Other concerns to take

large jumps in manufacturers priorities were inflation (up from number 11 to number 4) and petrol prices (up from number 12 to number 5) A number of factors, particularly petrol prices, are driving up costs for Australian manufacturers, says Conomos. But with the

retailers vying to maintain competitive price offerings, suppliers are being forced to look for alternative ways to absorb their manufacturing price increases. The Nielsen survey asked manufacturers to rate Australian grocery retailers on their performance across eight categories. Of the

eight categories, having clear strategies for success was the key driver of perceived retailer performance, followed by supply chain efficiency, then strength of the management team.

Market Analysis of Dove

On the topic of Private Label products, manufacturers were asked whether they thought Australian consumers would buy premium Private Label products. Only 13 percent of respondents felt it was unlikely

that Australians would go for a premium Private Label offering, while close to half (45%) said it was very likely or definitely would occur.