Marketing Management Case Solution
1.Â Â Â Â Â Market Segmentation of Dove:
Market segmentation allows companies to gain competitive advantage in the market space by enabling them to focus on resources on clearly well-known opportunities. On the other hand, by segmenting the market it should be noted that the segment is large enough to provide a significant return on investment, needs and demands of segments members are similar, and the segment must be accessible so that the customers can easily approach them.
Dove has been considered as the finest brand in the market. If we compare Dove with the competing brands such as Olay and Fair n Lovely, therefore it could be said that ithas sustained its image through its exclusive market segmentation. However, as a brand, Dove has segmented its market in the following ways:
Dove has claimed that its products contain 1/4th moisturizing cream in its products whetherits soap, body lotions, body wash or face wash. They conducted a survey regarding who would prefer to use scent and moisturizing ingredients in the skin care products to identify the segment of people.
Market analysis has shown the preferences of customers regarding the type of product they would like to use such as 40% of the customers want moisturizing properties and fragrance, 40% customers want fragrance free and average moisturizing and 20% of the customers want products depending on their skin type.Â (SANJUL KUMAR)
Under this segmentation, Dove has used the age factor to segment the market. Dove focuses on all women that are above 18 years. This segment comprises of women who are very much conscious about their skin that they only want to use quality products for skin care as well as the women who use skin care and beauty products and who are well aware of the care and beauty of her skin.
Â In this segment, Dove has also used the incomefactor as its products are being sold in premium price that can be afforded by highincome and upper-middle-class women who have good purchasing power.
Â Psychographic Segmentation:Â Â Â
Under the psychographic segmentation, Dove aims to develop psychology in women that beauty incorporates all ages of life. Dove intendsto create a perception of women that theyrequire to use skin care products. Dove has a unique approach as it focuses on real people in its advertisement and shares their experiences with its products. Dove usually does not take any celebrity in its advertisements for developing the better understanding with its customers. Moreover, Dove intends to create a psychology in the mind of average looking women that its product beautifieswomen, which is why it promotes the products without the celebrities and that it takes regular people.
Â 2.Â Â Â Â Â Value Proposition:
Value is something that customers are expecting from a given product and are ready to pay for. The value proposition is a statement that the company promises to deliver through its products and service. The stronger the value proposition is, the more customers will be willing to buy to companyâ€™s product. (Lynette Ryals). The value proposition is the whole reason a prospective customer would buying from the company. The core factors in any successful value propositions are 1) Offering- what products and services company offer, 2) Benefits- what benefits customers can get by using the companyâ€™s product and service, and 3) Proof- identifying the competitive advantage of the companyâ€™s products.
The companyâ€™s value proposition should aim to solve the customersâ€™ problems. If the companyâ€™s value proposition emphasizes on operational excellence, then it might also focus on the consistency of its products. For instance, McDonaldâ€™s offers consistency in its productsâ€™ quality and speed of providing in any outlet across the world. (Lynette Ryals). High-value proposition helps the customers to understand better why they should buy from the company. The value proposition should enclose statement of three things:………………….
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