DOVE LEAVE-ON HAIR CARE REVIEW

Period Q1 2015

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Le Khanh An Branding & Communication AiiM

Let us show you how this fun facts make a miracle to 2

● Vietnamese consumers are optimistic, confident about the stability of their

incomes, the more they confident the more likely they are to they will likely tend

to make purchases. But now Vietnamese is prefer to save money than purchase

something.

● Transform from 3-generations family to 2-generation family → Individualism.

● 57% population in VN is youth from 18 – 32 years old.

● Urbanization spreads at high speed.

FUN FACTS

State of The

Market

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Match The

Needs

How to Touch Points

Consumer Confidence Index (CCI)

Personal care |Hair care outlook

Shoppers matters towards leave-on products

Dove & competitors performance

Price Distribution channels Television Online Mobile

Conclusion

& Recommendation

Does Dove leave-on

perform well?

Should we continue invest

in leave-on hair care?

Vietnam at a glance

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State of The

Market

Personal Care grows stably in Vietnam Vietnamese CCI remains high score from 2010 (they are confident about the stability of their incomes) but they tends to putting into savings. They do not believe in

Though FMCG is slowing down in Vietnam mainly because of increasing saving money, Personal Care seems not be effected by this down trend.

5 Source: Grocery Report in Vietnam, 2013, Nielsen - Link

Consumer Spending & Saving Strategies, Q2/2013 FMCG sub-cat sales volume & growth rate

Potential Growth for Personal Care in Vietnam

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Global Beauty & Personal Care Value Market Size, 2014

2%

5%

-3%

5%

-5% 3%

3.6%

= $US 10 billions

decrease in value growth increase in value growth

0%

5%

10%

15%

20%

0

20

40

60

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Value Sales Value Growth Rate

Breakdown into Asia Pacific countries

Source: Global hair care category research in 2014, Euromonitor International - Link

Among personal care, there are a Potential Growth for Hair Treatments and Styling in Vietnam

Potential Growth for Hair Care Products in ASEAN.

Vietnam is following USA, UK, Japan, Korea, … market, which gains high growth rate of leave-on (Hair treatments & Hair Styling). While they has likely not gone unnoticed in Vietnam in 2014.

Less competitor & undiscovered market are 2 key points for Dove to entry to.

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FMCG Performance by Category in ASEAN, 2013 Hair Care Porfolio country breakdown, 2014

Source: Mintel Explores Hair Care Trends at in-cosmetics Asia, 2014– Link & The Fifty by Mintel ebook, 2015

Save sunk cost & utilize existing resources

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Global Unilever is investing in different product categories in Vietnam - Use existing distribution channels

Life style changes and LSM change, demands change Problems Vietnamese women are facing 3 generations → 2 generations →

have more time & wealth to take care themselves.

High speed of urbanization & globalization both men & women have to go to work to make a living.

Potential content angles The need to improve appearance everyday Lack of time for daily hair treatment Hair fall, dry, oily hair & breakage are top hair

worries

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CONCLUSION We predict leave-on hair care products are the potential portfolios that will thrive in one or two years.

Source: Hair Care Category Overview Q2/2014, Buzzmetrics - Link

Match The

Needs

Existing Dove leave-on products VS. Customer matters

10 STYLE + CARE TREATMENT TREATMENT

Global Vietnam

Market share & Share of voice of Dove vs. key competitors

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We do not have leave-on market share (sales volume, value) but our group predict that Dove leave-on sales is not good as: No display in Unilever distribution

channels (store, supermarket, hypermarket) recently.

No recommended by expert in hair salon.

No activity interacts to potential customers on social media channels.

Sales team and CMS do not know leave-on product price, distribution.

What did Dove and key competitors do?

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Strategic approach

Help woman gain real beauty via using normal woman ambassadors.

To be a partner & inspired source for girl to find their own fate.

(none) Well-decorated outlet, adding sampling packs regularly & “hallyu” style.

Claim Customers seem to vague to Dove claim.

Customers believe in “damage repair” functional attribute

Unique fragrance Customers seem believe in natural ingredient & natural make-up

Target customer

18-45 years old middle-class & high educated female loves natural beauty.

18 – 27 years old middle-class female loves to find their own fate.

25 – 40 years old middle and premium class office female, who is elegant, needs a product keep long lasting fragrance.

15 – 25 years old middle-class but willing-to-pay-more-money young girl, who loves discover & shape their appearance day by day.

Price strategy

Middle Middle Premium Upper-middle

Distribution strategy

Retail store, supermarket, hypermarket & grocery store.

Middle class hair salon, retail store, supermarket, hypermarket.

Premium class hair salon, retail store, hypermarket.

Outlet Portable goods store

Product Description

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Name Damage Therapy Intensive

Repair Overnight Treatment

Nutritive Therapy Nourishing Oil

Care Nutri-oil Serum

Hair Therapy Hair Fall Rescue

Intensive Roots Treatment

Price 120ml/ VND 340,000 40ml/ VND 340,000 7 Roots Powershot/7ml VND 580,000

Function Replenish protein & Restore

strength

Restore smoothness, softness,

and shine

Strengthen hair at the root & reduce hair

fall in 2 weeks

Pantene leave-on products

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Name Intensive Damage

Repair Oil

All day Hair Fall

Protect Essence

Hair Strength Tonic All Day Smooth

Miracle Water

Natural Shine Booster

Essence

Price 30ml/ VND 100ml/ VND 95ml/ VND 100ml/ 95.000VND 100ml/ VND

Function Protect from frizz

and breakage, repair

damage

Protect against hair fall,

smoothen & nourish

Nourish & prevent

hair fall

Smoothen & moisturize Revitalize weak hair, add

shine and smooth

Double Rich leave-on products

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Name Balancing

water -

Revitalize

Balancing

water -

Nutri Care

Hair repair Gel Soft Hold Gel hard hold Mousse Soft

Hold

Hair Spray

Price 120ml/

250ml/

68,000 VND

120ml/

250ml/72.000

VND

250ml/ 63.000

VND

120ml/ 36.000

VND

250ml/ 59,000

VND

120ml/ 36.000

VND

250 ml/ 59,000

VND

50ml/ 30.000 VND

150 ml/ 50.000

VND

50ml/ 25.000 VND

170ml/58.000 VND

Function Repair dry,

damaged

dyed hair,

scent

Prevent hydration and nourishing limp and lackluster hair

Repair, nourishing create hairstyle creates hairstyle Create hairstyle,

nourishing

Create hairstyle,

nourishing

The Face Shop leave-on products

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Name Jewel Therapy Deep

Moist Hair Essence

Jewel Therapy Aqua

Fresh Hair Essence

Jewel Therapy Damage Care

Hair Oil Serum

Price 120ml/ VND 200,000 120ml/ VND 200,000 80ml/ VND 230,000

Function Add shine, moisturize &

nourish

Moisturize dry hair Moisturize & repair damaged

hair

SWOT Analysis

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STRENGTH WEAKNESS

OPPORTUNITY THREAT

International brand recognition Good quality products: Dove has

been well-known as a therapy for hair.

Use regular women rather than celebrities

No consistency in product message.

Belated or no feedback. Leave-on hair care products are

not widely distributed Lack of information on Dove’s

information portals. Higher price product in total

items list for shopping budget.

Intense Competition from other brands

Herbal and Traditional Method of Hair Care

Growing market opportunities Vietnam has a huge young

population (15 - 24) There are many hair problems

that many competitors have not met customer needs

Recommendation

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Touch the

Points

Recommendations

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Keep these 3 products and change the price

If further distribution in the channel as Dove shampoo, Dove conditioner, leave-on line should also

have an appropriate price for shopper budget. while they arrive supermarket distribution channels to

buy many items at once.

Create a new line of products

Currently, issues of oil due to the humid weather hair in Vietnam is concerned (ranked No. 3 in the

concerns about the hair but only carry-on products have been trusted infected price), if Dove can

actually make a good product special with reasonable price, there is a chance for Dove to improve it

reputation and market share.

Recommendation

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Re-positioning brand image

Nowadays, besides environment factor is being polluted, consumer is paying attention to personal

care, especially young people, 42% usually think they are not protected (Source: Vinasearch) there

should be a product specialized in a problem to protect themselves not a all-in-one product.

Public relation is not consistent, it’s still greedy when it focus not only on TVC (expert in hair care)

but also on the internet (expert in hair repair), packaging is hard to differentiate between product

line, hence consumers do not trust in the brand.

Dove can still run these 2 contents, as long as there is a specialized product which is easily

recognized in packaging, label, brand recognition system.

Create series Online Tutorial On Hair Care, leave-on & Sponsor

Gameshows/TV Series

68% of Vietnamese people make decisions on purchasing FMCG based on TV ads

Recommendation

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Re-educate Vietnamese consumers via:

Expand target market to rural areas

In rural areas, Dove is the most favorite brand and has the highest sales

Vietnamese consumers are willing to spend money on trying new FMCG products of a brand they have

used → Include samples or sell combos of shampoo, conditioner and leave-on.

Focus on Convenient Grocery Stores

According to Nielsen Research, Convenient store is now covering the big cities & spreading urban in

Vietnam => Increase budget for POSM

Leverage affordable hair salon for the use of leave-on becomes habit.

The potential customers often go to affordable to taking care of their hairs. The discount program, the

commission makes them willing to introduce Dove products than other products.

Should promote the training of barber to use leave-on products properly, suggest they guide customers the

use of leave-on product is easily, not wasting time and gradually feel familiar with the leave-on products.

Recommendation

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Build strong real-time logistics system for CSM, especially CSM on social

media which one of the most interactive channels.

Pay more attention on integrated marketing on mobile & social media platforms.

Real Beauty Campaign

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Education Campaign & Community Involvement

Impacts: Change social perception about women’s beauty (i.e real beauty), increase self-esteem and self-confidence Their video ad reached 114 million views To target consumer (people who love simple life value, not exaggerated) they saw their daily image in

family concern, personal health care but after using Dove they felt life is pink, live a happy life, hence life is more beautiful when they use Dove products.

Appendix

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Thank you.

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