We all use a lot of skincare and beauty products. There are many brands in the current era that are delivering top-notch products and helping all of us. One such brand would be “Dove”. It is a widely known brand in the sector of FMCG (Fast Moving Consumer Goods). Some products currently offered by Dove are Deodorants/perfumes, body wash/Beauty bars, Skincare products, hair care products, and baby care products.
You may be using products falling in the above categories. However, have you ever thought about what goes behind manufacturing and delivering these products to our doorsteps?
Like every other business, Dove has its own share or strengths, weaknesses to manage, opportunities to leverage, and threats to tackle!
And this is what I’ll try to discuss in this article.
I’ll perform a thorough Dove SWOT Analysis for you all
Before moving ahead, here is a quick overview of Dove!
William Lever | |
London, England, UK | |
Toiletries | |
6.5 billion U.S. Dollars | |
16,500+ | |
Dove |
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Dove SWOT Analysis: Balancing The Beauty!
There are alternatives to SWOT for analyzing the business. However, SWOT would be a great framework for today’s article. If you wish to learn more about this business tool, you can check our article here.
Let’s begin our SWOT analysis!
Strengths Of Dove
Amazing Brand Reputation
Dove operates under the umbrella of the renowned conglomerate, Unilever. Dove has gained widespread recognition and trust among its customers. In fact, if you use any personal care product, chances are you’ve used a Dove product in one category or another. Now, I am assuming I am not wrong in this assumption.
Furthermore, within the Unilever portfolio, Dove stands out as the most celebrated and lucrative product. In the previous fiscal year, Dove’s valuation reached an impressive USD 5.3 million.
Multiple Product Categories
There are many companies similar to Dove. However, what sets Dove apart is the variety of personal care products it offers. You can find products for hair care, skincare, body wash, perfumes, and even products for your baby care. This has been instrumental in the growth of Dove as a brand. The trust within the customers helps them buy all categories of products from Dove itself.
Not many companies are able to expand like Dove. Moreover, all the products by Dove in different segments are performing equally well in the market.
Marketing Strategies Aiming For Common People
You will find that most companies are hiring celebrities and influencers for their promotion or advertising. However, this is not the case with Dove. The company has made all its advertising and marketing campaigns without high-profile celebrities. Curating advertising and marketing efforts through this strategy helps the brand relate with the common people. Hence, a common consumer relates more with Dove as compared to other brands. Most people relate as if the products offered by Dove are made for the common consumer and not some high-profile privileged individual.
Strong Distribution Due To Unilever
As I mentioned earlier, Dove comes under Unilever. And Unilever is known for its remarkable operation process and network for distribution. And this applies to all its subsidiaries, including Dove. The products of Dove are present in local markets and in high-end shopping centers. Moreover, if you check any e-commerce platform like Walmart or Amazon, you’ll easily be able to search for what you want to purchase. This strong distribution network helps Dove serve its consumers proactively and build a high level of trust. What product is a good product if it is not available near your home? Right?
Dove Is Against Animal Testing
You may have heard many companies being accused of testing their personal care products on animals before launching them for human consumers. Well, there is another reason to love Dove as the company has a strict policy of “no testing against animals” for any of its products. Dove is PETA-approved as well. Dove is able to produce and present high-quality products without testing them on animals. The company has been using non-animal testing methods since the 1980s. This helps Dove to build a sense of responsibility towards the animals and the society at large.
Unique Blend Of Soap And Cream
Many products in the market of personal care provide soap or cream in their ingredients. However, Dove has a different offering for its consumers. Dove provides a unique blend or mixture of soap and cream in its products. Now, why this is a strength for Dove? This unique mixture feels premium, and soft, and is skin-friendly for most skin types. Hence, consumers with all sorts of skins are able to use Dove products without hesitation.
Weaknesses Of Dove
Majority Of Consumers From Tier 1 Cities
Dove is a great brand for sure. However, providing any product with quality requires a lot of research and capital. After all this is done, the final becomes ready for consumers. As Dove focuses on providing top-notch products in all its categories, most consumers with the buying capacity are from tier 1 cities. Dove does provide and delivers its products to people from tier 2 and tier 3 cities. However, the majority of the customers are limited to tier 1 cities. This is something Dove can work on in the future.
Price Point Issues
The products offered by Dove are premium in all aspects. However, the buying capacity of many people still does not allow them to purchase Dove products. Dove products are priced at a higher end as compared to some of its competitors. Many people who are price-sensitive prefer to buy Lifebuoy or Cinthol compared to Dove. Maybe Dove can think of bringing out a product line with more reasonable prices. This is also a reason why Dove is not that successful in tier 2 and tier 3 market regions as stated in our previous point.
Opportunities For Dove
Explore And Focus On Men’s Product Range
Dove is presently doing pretty well in the market. However, the catch is that the products driving the maximum revenue each quarter are the female products. Now, Dove does offer a lot of products for men. However, the market is still dominated by other players. Men prefer other brands for their personal care kits. Having a flawless brand image, Dove can invest and promote its men’s category of products more to drive more revenues. Moreover, Dove already has the experience of decades of producing top-notch products. The experience can easily be used to generate more revenue from the men’s products it offers.
Penetrate The Rural Market
Dove is performing well in the tier 1 cities as mentioned previously. However, having a great product line, Dove has immense potential to serve consumers primarily from rural areas. Many rural areas in the Asian and European regions do not use Dove products at large. Dove has the opportunity to penetrate this market and drive more profit margins. Yes, the product line by Dove is priced at the higher end. However, if Dove can find a way to have low-profit margins from the rural areas, it can be a good strategy to dominate the market.
Mergers And Acquisitions
As Dove comes under a profitable brand like Unilever, it can think of mergers or acquisitions. Acquiring similar small-scale businesses that are already doing well in the market regions where Dove is not that dominant can help the company expand much faster. Merger with some other company is an option that Dove wouldn’t possibly do. The reason for this would be that it already is a subsidiary of a global brand like Unilever.
Threats To Dove
Similar Marketing Strategies By Competitors
You can go back to the “strengths” section of this article and read again that Dove has always used real-life case studies in their marketing efforts. They do not hire any celebrities or influencers for promotions. Although there are many competitors to Dove, some competitors use the same strategy to promote their products. One such brand would be Olay. The company also involved a lot of real clients with their feedback to promote product quality. Now this is not unfair or illegal for Olay to do this. However, this does take away the uniqueness of the marketing strategy started by Dove.
Stiff Competition
The market for personal care products is near saturation. There are many companies in the market catering to different consumer segments. All these companies are direct competitors to Dove. Competition is good for each company which leads to more innovation. However, if a company slips in any aspect, the market share shifts drastically. Major competitors to Dove would be Olay, Nivea, Johnson and Johnson, and many more.
Currency Fluctuation Issues
Dove is a global brand. It is operating in many countries across the globe. When a company operates in this manner, the profit yield generated comes in different currencies. If the currency fluctuations are too high or low, it may negatively impact the company’s profit margins. The currency fluctuations can also cause the company to change its manufacturing budgets, selling budgets, marketing budgets, and more.
Some Fun Facts About Dove
- Dove has a commitment to using sustainable packaging.
- The classic Dove soap bar is well-known for its distinctive curved shape. This design was patented and is intended to fit comfortably in the hand.
- As part of their commitment to promoting self-esteem and body positivity, Dove launched the Dove Self-Esteem Project. This initiative aims to educate young people about body image and self-esteem issues.
Bottom Line
Dove, as a brand possesses several strengths that have contributed to its success. It has a strong brand reputation and widespread recognition. This has made it a household name. Moreover, it has a diverse range of personal care products spanning hair care, skincare, body wash, perfumes, and even baby care, further enhancing its appeal. Dove’s strategic marketing approach, focused on relatability rather than celebrity endorsements, has resonated with the common consumer. Additionally, its affiliation with Unilever ensures strong distribution networks and a commitment to cruelty-free products. The unique blend of soap and cream in Dove’s offerings adds to its allure. However, Dove faces challenges, including its concentration in tier 1 cities and premium pricing, limiting its reach in tier 2 and tier 3 markets. Nevertheless, numerous opportunities, such as expanding the men’s product range, entering rural markets, and considering mergers and acquisitions, await exploration. In a market characterized by stiff competition and evolving marketing strategies, Dove’s unique approach and commitment to sustainability continue to set it apart.