Dove Case Study Outline

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Apr 3, 2024

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Shellisha/Marty Week 5: Define the Problem (or Focal Issue): In this case, the focal issue is the crisis faced by Dove, a brand owned by Unilever, in 2017. Dove has successfully built its brand image and equity over the years, mainly through its "Real Beauty" campaign that aimed to challenge societal beauty standards. However, a three- second Facebook promotion by Dove for its body wash was perceived by some consumers as having racist overtones. This led to widespread outrage on social media, with hashtags like #DoneWithDove and #DoveIsRacist gaining momentum. Consumers called for boycotts and posted videos of themselves throwing Dove products into garbage cans. The crisis threatened to unravel the brand's success and undo the brand equity that Jennifer Bremner, the former brand director of Dove, had worked hard to build. Background: Who: Dove is a brand owned by Unilever, a multinational consumer goods company. What: Dove is known for its skin cleansing products, such as body wash and moisturizing bars, as well as a range of beauty offerings, including deodorants, lotions, cleansers, and shampoo. When: Dove was founded in 1957 when it introduced its soap bars as the soap that "creamed the skin." Since then, it has expanded its product portfolio and brand initiatives. Where: Dove is a global brand in numerous countries worldwide. Why: Dove aims to promote a positive and inclusive representation of beauty and challenge societal beauty standards. The company aims to empower women and inspire them to embrace their natural beauty through its branding and marketing campaigns. The "Real Beauty" campaign, launched in 2004, was a significant initiative by Dove to address female body image insecurities and encourage women to have a more positive relationship with their beauty. The campaign aimed to change how women perceived themselves by featuring ordinary women of diverse ages, ethnicities, and body types in its advertisements, challenging the traditional portrayal of beauty in the media. Dove's brand philosophy centers around the belief that beauty should be inclusive, authentic, and self-accepting. Symptoms: 1. Normal consumer reactions: Consumers expressed outrage against Dove and posted negative comments online, accusing the brand of promoting racial hatred and bigotry. Hashtags such as #DoneWithDove, #DoveIsRacist, and #BoycottDove gained momentum rapidly. 2. Social media backlash: The promotion ignited growing social media outrage, with consumers sharing videos of themselves throwing Dove products into garbage cans. The brand faced escalating hostility and calls for boycotts. 3. Potential impact on brand equity: The crisis jeopardized the brand equity that Jennifer Bremner, the former brand director, had worked hard to build over the years. The impressive sales and brand equity growth achieved through emotional branding efforts were at risk. Underlying Issue: The underlying issue in this case study is a branding and marketing misstep by Dove, where a promotional campaign was launched without considering the potential negative racial implications. This oversight led to the perception of racism and triggered a crisis for the brand. The problem highlights the importance of thorough evaluation and sensitivity in promotional campaigns, especially concerning sensitive topics such as race, to avoid unintended negative consequences.

II. Situational Analysis: 1. Current financial/market numbers and objectives of market targets:  Current market share: Not provided in the case.  Current sales, cost structures, and operating profits: Graphs and explanation 1. The relevant market:  The brand's target market(s): Women of various age groups, focusing on those seeking beauty and personal care products.  The market attractiveness of this market for this brand: o Potential market share growth: The beauty and personal care market has potential for growth due to increasing consumer interest in self-care and grooming. o Potential industry growth: The industry has been growing steadily with new product innovations and expanding consumer base. 1. The product determinant attributes:  Dove's advertising campaigns have traditionally promoted inclusivity, diversity, and body positivity.  The brand emphasizes natural beauty and uses real women in its advertisements. 1. Key competitors:  Johnson & Johnson, Pears, Olay, Bath & Bodyworks 1. The brand positioning concept:  Dove positions itself as a brand that celebrates natural beauty, promotes self- acceptance, and challenges societal beauty standards.  Their marketing mix includes using diverse models, incorporating emotional messaging, and focusing on product quality. III. Alternatives: Alternatives to address the problems caused by flawed and discriminatory marketing approaches are challenging to postulate. After all, it can be argued that the Dove brand deserves to lose market share and brand equity if its ads are inherently racist. Some might argue that the ads created by Dove were not intended to be racist but could mistakenly and accidentally be interpreted that way. As it has been said, "Perception is reality." What can the Dove brand do to recover from its foolish, and perhaps evil, marketing mistakes? The first alternative to address the problem Dove has created is to focus on market penetration with its new products geared toward black customers, specifically haircare products, and associated advertising initiatives focused on haircare for black consumers. These products include haircare shampoos, conditioners, curling creams, and detanglers (Kiner, 2021). This product is part of an effort from Dove to support the unique hair needs of those who have experienced race-based hair discrimination (Kiner, 2021). Through this endeavor, Dove can do more than move beyond its blunders; the brand can proactively serve its customers' needs and recommit to its focus on promoting innate beauty in all people, particularly women (Brooks et al., 2020). This approach addresses the problem because it positions Dove not just to be sensitive to racial issues but to proactively support people who have faced discrimination that directly relate to Dove products, namely racism based on skin color and hair type. While this should be done because it is the correct reaction to past behaviors, the company can prove itself worthy of customers buying its products. Dove can support its black customers' needs, representing a global market of approximately $9.56 billion, and is expected to grow to over $15 billion over the next decade (Goyal, 2023). Capturing only a fraction of this market would

profoundly impact the bottom line of Dove's revenue. For example, realizing a three percent market share would mean nearly $300 million. There are pros and cons to this approach. The pros would be the provision of a product needed by a population segment and the support of overcoming racism toward natural hair. The cons that exist with this approach are the appearance of doing these things to capitalize on a population of people whom the company has already mistreated. An alternative approach is to focus on vertical integration, to support the market segment the company has offended. This might involve purchasing companies for black hair care products in the supply chain. The intention would be to reduce the cost of hair care products designed for those with unique needs associated with natural hair. Dove products could be kept below market value for at least several years to tangibly express its remorse for a century-long pattern of egregious advertising. Black populations spend significantly more on hair products than their white counterparts (Blackett, 2022). This is due primarily to the higher cost and higher use of the products aimed at naturally textured hair (Blackett, 2022). These products often contain a high number of quality ingredients that are sold in smaller units (Goyal, 2023). Purchasing suppliers in the vertical supply chain will likely create efficiencies and cost savings in creating Dove products. Vertical integration provides streamlined production, thus reducing costs (Indeed Editorial Team, 2023). Specific savings will depend upon which suppliers are purchased, but cost savings can be expected (Indeed Editorial Team, 2023). Vertical integration has its pros and cons. First, on the positive side, this approach is likely to save money, create efficiencies, increase product understanding, and control ingredients (Indeed Editorial Team, 2023). However, using vertical integration to keep costs down for one customer segment might anger other customer groups. Additionally, claiming to hold prices down in an inflationary economic cycle is likely tricky and unpredictable. A final alternative for Dove is the consideration of maintaining the status quo. Since the company is supporting efforts to fight discrimination against hair-based discrimination, along with offering an array of products that support the hair needs of black customers, the choice can be to stay on this path. The only change might be to have tighter controls on advertising campaigns. Since the company is focused on external appearances, skin quality, and hair care, there is an excellent risk of underrepresenting a segment or unintentionally conveying that one skin tone or hair type is superior to another. To overcome this issue, the company should make particular a diverse group of people evaluating planned marketing campaigns to help the company avoid insulting and degrading advertising. Financially, Dove products are succeeding in their current approaches, reaching a brand value of nearly $5.1 billion (Petruzzi, 2023). This has increased by nearly a billion dollars in value since 2016 (Petruzzi, 2023). This modest but sustained growth wave can be considered an imaginative play for Dove. With steady growth, the company can continue moving Dove products beyond its stained past. A pro to continuing with the status quo is the leveraging and growth of the helpful decisions made since the previous debacles. Fighting against racism and discrimination while offering supportive products is a productive and positive approach to creating brand equity. On the other hand, the company faces the con of being perceived as not continually advancing its support of those offended by past campaigns. The company must determine if enough has been done to overcome the past. IV. Proposed Alternative: Market Penetration The proposed alternative for Dove should be a market penetration approach. The company now offers products that serve the constituency it previously offended. While this can

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