Packaging_profile_dove.pdf

PACKAGING PROFILE: DOVE September 2011

INTRODUCTION DOVE MARKET POSITION DOVE SIGNATURE PACKAGING GLOBAL BRAND: LOCAL PACKAGING CONSUMPTION DRIVING AEROSOL UPTAKE

COLOUR AND SHAPE IN PACK STRATEGY RECOMMENDATIONS

INTRODUCTION

Scope  This report covers the following categories:

Disclaimer

Baby Care Bath and Shower Deodorants Hair care

Beauty and Personal Care Packaging

Men’s Grooming Oral Care Skin Care Sun Care Sets/Kits

© Euromonitor International

PACKAGING PROFILE: DOVE

Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. In the first of a series of reports looking at the packaging strategies of leading fmcg brands, Euromonitor International considers Dove, the world’s biggest name in bath and shower. Dove’s pack requirements are diverse but it uses simple clean lines to reflect its moisturising and skin-kind benefits so integral to the brand’s image. Dove’s packaging strategy has to balance the demands of consumer with cultivating an instantly recognisable image as it expands around the world.

PASSPORT 3

INTRODUCTION

Dove’s stated mission is a commitment to real beauty and care  Dove focuses on its core USP of moisturising – all products have added moisturiser content with functional moisturising properties, key to the brand’s core principles.  Dove’s packaging reflects the brand’s product image, employing a packaging strategy of simple clean design.  However, widely expanding product and formulation extensions are a potential barrier to a consistently recognisable packaging strategy

© Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 4

INTRODUCTION

Key findings Unilever’s top-selling beauty brand bolstered by line extensions and new product launches

Dove represents one of the 12 core brands at Unilever that generates sales of over than US$1 billion. Entrance into men’s grooming with Dove Men+Care in 2010 responds to the company’s strategy of “winning in the marketplace” by extending its deodorant and bath and shower lines to the male demographic, whilst Dove VisibleCare and Visible Effects indicates Dove’s continuing dedication to product content innovation.

HDPE enjoys widest cross-category use

In Dove’s leading applications of body wash/shower gel, hair care and body care, HDPE is the standard polymer specified for all rigid plastic bottles, stemming from Dove’s iconic white bottle with blue contrast colour cap; such widespread specification of HDPE can enable the brand to garner economies of scale in sourcing packaging materials.

Understands the provision of customised pack type and size solutions applicable to local needs

Across Dove countries, there is a commonality in packaging type and size in evidence with 200ml HDPE bottles a very popular sight for Dove body wash. The brand, however, illustrates an understanding of how local buying patterns can vary, adjusting packaging accordingly, critical to any brand’s success. It retails 8ml hair care sachets for its rural customer base in India, whilst 400ml body wash bottles are retailed in Spain where there is a culture of buying bigger sizes.

Coherence of Dove’s packaging family to be retained in brand’s expansion

As Dove diversifies its country and category reach, entering into new categories like lip care and adding new product lines like Dove VisibleCare and Dove Men+Care, it is essential that the brand’s packaging design clearly communicates the essence of the Dove brand to avoid any loss of brand recognition.

© Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 5

INTRODUCTION DOVE MARKET POSITION DOVE SIGNATURE PACKAGING GLOBAL BRAND: LOCAL PACKAGING CONSUMPTION DRIVING AEROSOL UPTAKE

COLOUR AND SHAPE IN PACK STRATEGY RECOMMENDATIONS

DOVE MARKET POSITION

Key Dove facts Dove Presence:

All world regions 80 countries worldwide

Category Coverage:

Baby Care, Bath and Shower, Deodorants, Hair Care, Men’s Grooming, Oral Care, Skin Care, Sun Care, Sets/Kits

New 2010 Additions: Men’s Grooming Global Dove Brand Sales 2010:

US$5.8 billion

Global Dove Share of Beauty and 1.5% Personal Care 2010: Dove Growth in 2010:

7.6%

Top 5 Countries for Dove Sales:

USA, Brazil, Germany, Japan Italy

Highest Growth Country 2010:

Brazil

© Euromonitor International

 Dove represents one of Unilever’s 12 core brands, each of which provide the company with sales of more than US$1 billion. Unilever’s top 12 brands are Axe/Lynx, Becel/Flora, Blue Band, Dove, Heartbrand ice creams, Hellmann’s, Knorr, Lipton, Lux, Omo, Rexona and Sunsilk.  Dove is Unilever’s top-selling beauty brand with retail sales of nearly US$6 billion in 2010.  Dove sales in beauty and personal care (BPC) are led by bath and shower with the brand’s first product, the beauty bar soap, continuing to exert global importance as the brand’s top-seller. Accounting for 25% of Dove sales in 2010, its retail value sales were up 5% from 2009.  Dove was the seventh most valuable brand in beauty and personal care in 2010, accounting for nearly 2% of global retail sales, with Avon, L’Oréal Paris, Gillette, Nivea, Shiseido and Colgate the major global brands ahead of Dove.

PACKAGING PROFILE: DOVE

PASSPORT 7

DOVE MARKET POSITION

Timeline:1950s America marks the beginnings of the Dove brand

• 1950s

Dove cleansing bar in the US

• 1957

Basic Dove bar developed into the “original Beauty bar”

• 1990s

Dove launches in the UK

• 2001

Dove launches its first deodorant

• 2007

Dove pro·age range launched with lines in skin care, deodorants and hair care

• 2010 • 2011

Dove Men+Care marks Dove’s entry into the men’s grooming category Dove Hair Care relaunched: Dove Damage Therapy range launched to combat daily damage Dove Ultimate Go Sleeveless, “tri-moisturising system” deodorant Dove Caring Beauty and Dove Supreme Shimmer lip balm

© Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 8

DOVE MARKET POSITION

Dove: The world’s best-selling bath and shower brand  Dove’s position in the world rankings of Dove: Retail Sales and Ranking in Key Beauty Categories global beauty brands is improving, 2010 outperforming L’Oréal Groupe’s Garnier Name 2008 2009 2010 Retail Sales brand in 2010, to gain the accolade of (US$ mn) seventh most sold global beauty brand. 8 8 7 5,767.6  Bath and shower lines through bar soap Beauty and Personal Care and body wash/shower gel account for Bath and Shower 1 1 1 2,500.6 more than 40% of Dove’s retail sales and 1,377.8 Hair Care 9 9 9 represents the BPC category in which 1,041.8 Deodorants 4 4 4 Dove is the global best-seller.  Dove continues to enjoy healthy growth, Skin Care 791.2 18 20 20 supported by brand extensions, 66.8 Men’s Grooming 323 74 30 relaunches and widened distribution 28.8 Baby Care 36 32 32 enabling retail sales to rise 8% in 2010.  In hair care, Latin America and Asia Pacific head up global sales of Dove branded products, with Brazilian demand taking the lead, accounting for 18% of Dove’s global hair care sales in 2010. Dove Damage Therapy conditioner extends Dove’s presence in Brazil at the higher end of mass in hair care.  Skin care remains highly competitive and proving to be a more difficult category for Dove to penetrate, but one that posted a 7% CAGR over 2005-2010 and is predicted continued value growth at a rate of 3% CAGR over 2010-2015. Dove sales in skin care grew at a respectable 4% CAGR over 2005-2010, but this was off the pace as global skin care leader, Nivea (Beiersdorf), poses a real threat with a 9% CAGR alongside rising national stars like Natura (Natura Cosméticos) in Brazil, the country which delivered the highest value sales growth for Dove skin care in 2010. © Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 9

DOVE MARKET POSITION

Regional shift sees Dove sales in emerging markets rise in stature  Dove is a truly global brand with 2010 retail value sales quite evenly divided between developed and developing regions with 56% of global sales derived from the established world regions of Western Europe, North America and Australasia.

Dove’s shift to emerging regions continues

 The geographic balance of power is, however, shifting in favour of emerging regions, with Dove retail sales in Asia Pacific, Eastern Europe, Latin America and Middle East and Africa up from 37% of global sales in 2005 to 44% in 2010.

Dove retail sales in Western Europe and North America grow at steady 5% and 3% CAGRs over 2005-2010 but pale in comparison to the rapidly expanding emerging markets

 The brand’s strong position in key growth countries like India and Brazil puts Dove in good stead to further its already influential emerging market presence. Asia Pacific offers ample opportunity, with China, a largely untapped market for Dove but one that offers lucrative gains if developed. © Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 10

INTRODUCTION DOVE MARKET POSITION DOVE SIGNATURE PACKAGING GLOBAL BRAND: LOCAL PACKAGING CONSUMPTION DRIVING AEROSOL UPTAKE

COLOUR AND SHAPE IN PACK STRATEGY RECOMMENDATIONS

DOVE’S SIGNATURE PACKAGING

Dove’s white HDPE bottle is the brand’s signature pack  Dove’s presence in its lead category of bath and shower continues to expand with new variants, offering functional added-value benefits at the forefront of innovation with many new product entrants following a theme evoked throughout the global beauty industry .  In pack specification, Dove’s signature white bottle remains prominent in the design of one of its latest launches, that of Dove VisibleCare, in bath and shower, complementing also the lighter packaging colours that are a common sight on the bath and shower shelf.

Dove VisibleCare A 2011 brand extension of Dove’s bath and shower range, Dove VisibleCare responds to the product efficacy trend meeting consumers’ need to nourish, repair and protect skin. An added-value launch that fits in with strategy to strengthen brand equity through functional benefits. The range, which includes a body wash and body lotion, promotes its ability to offer visible skin improvements. Retailed in a 200ml HDPE bottle. Lighter colours are prominent in the Female personal care aisle

© Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 12

DOVE’S SIGNATURE PACKAGING

Dark grey chosen for Dove Men+Care, tailored for the men’s shelf  Men’s grooming forms a new outlet for Dove with its Dove Men+Care range; its launch has already served to drive Dove’s revenues and growth in bath and shower, addressing specific men’s “care” needs.  For shelf presence, the brand has opted for both a very different shape and colour of packaging with no sign of the classic white bottle and blue signage that is more synonymous of Dove. HDPE remains the polymer specified for the bottle leveraging on the brand’s widespread use of this polymer across its beauty lines. To promote acceptance, the Men+Care is specified in a dark grey tottle (upside-down bottle), fitting in with the array of masculine and commonly dark colours seen in the men’s grooming aisle

Dove Men+Care Men+Care product line, first launched in the US, consists of three-in-one body and face washes, two deodorants and a scrubber. Wider global roll-out in 2010, enables presence in more than 30 countries. Launch leverages Dove’s strong brand equity and household familiarity amongst its female consumers. Leverages the brand’s use of HDPE in specification but uses a tottle. Uses dark grey in its packaging to evoke the masculinity of the product’s consumer target.

© Euromonitor International

Men’s grooming products are typified by the use of dark colours

PACKAGING PROFILE: DOVE

PASSPORT 13

DOVE’S SIGNATURE PACKAGING

Dove’s diverse product range requires a diverse packaging portfolio Dove Category

Dove Pack Family

Bath and Shower

• Folding cartons, HDPE bottles, flexible packaging

Hair Care

• HDPE bottles, metal aerosol cans, squeezable plastic tubes, plastic jars, flexible packaging

Deodorants

• Metal aerosol cans, plastic bottles, glass bottles, squeezable plastic tubes, other rigid plastic

Skin Care

• Plastic bottles and jars, squeezable plastic tubes, flexible packaging, glass jars, metal tins, other plastic

Men’s Grooming

• Metal aerosol cans, folding cartons, plastic bottles and other rigid plastic

Baby Care

© Euromonitor International

2011 Dove’s latest venture is into lip balm in a speciality rigid plastic container

• Folding cartons, plastic bottles

PACKAGING PROFILE: DOVE

PASSPORT 14

DOVE’S SIGNATURE PACKAGING

HDPE bottle remains Dove’s core packaging and is key to success  The HDPE bottle forms the brand’s overriding key pack type with specification primarily led by bath and shower but furthered by important and growing use in hair care, skin care and more recently, men’s grooming.  In Dove’s leading category of bath and shower, body wash/shower gel shows especially buoyant development. This drives growing demand for HDPE, the polymer specified for Dove bottles, all of which are fitted with plastic dispensing closures.  The use of HDPE is actually quite typical of the global body wash/shower gel category, where HDPE bottles account for 65% of the 2.9 billion packs sold in 2010.  For Dove, the greatest 2010 advances in bottle sales for body wash were seen in North America, indicative of the region’s rising preference for liquid body wash over bar soap with men’s grooming providing further gains as penetration of body wash amongst women is high.  With specification of HDPE common across several of Dove’s categories, the need for strong brand recognition in the pack’s design becomes even more crucial. Going forward, the use of colour and shape will continue to be used to enable the brand to forge a coherent packaging family.

© Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 15

INTRODUCTION DOVE MARKET POSITION DOVE SIGNATURE PACKAGING GLOBAL BRAND: LOCAL PACKAGING CONSUMPTION DRIVING AEROSOL UPTAKE

COLOUR AND SHAPE IN PACK STRATEGY RECOMMENDATIONS

GLOBAL BRAND: LOCAL PACKAGING

Dove employs mix of standard and custom packaging in body wash Dove: Bath and Shower Packaging Family 2010 Bath and Shower

Main Pack Formats

Core Pack Sizes

Folding cartons

75g, 90g,100g

Body wash/shower gel

HDPE bottles

200ml, 250ml, 400ml, 500ml, 550ml, 650ml, 700ml,750ml

Bath foam/gel

HDPE bottles

250ml, 500ml, 750ml

Liquid soap

HDPE bottles

200ml, 250ml, 500ml, 750ml

Bar soap

 Dove’s standard sizing of 200ml/250ml in body wash widely apparent…  Dove bath and shower is largely specified in common pack sizes across geographies with 90g and 100g most typical for bar soap. Meanwhile, in body wash/shower gel, 200/250ml sizes dominate.  …but applies local policy too, from family sizes in Spain to refills in Asia  Importantly, however, the brand does not exert a one size fits all strategy with local sizing variances evident.  In Spain, Dove is not retailed in the 200/250ml size but in line with the Spanish preferences for purchasing in larger volumes where 750ml is the most sold size for shower gel, Dove retails in 400ml and 750ml sizes.  Meanwhile, in Japan, in addition to the familiar HDPE bottle, Dove retails both its body wash and liquid soap in refills, using pouches, procuring ecological and economic benefits. Dove’s use of pouches addresses Japan’s already wide acceptance of pouches in the country that leads global pouch sales in beauty. © Euromonitor International

PACKAGING PROFILE: DOVE

Average Pack Size in Body Wash/ Shower Gel in Core European Markets 2010 Italy: UK: Germany: Netherlands: France: Spain:

259ml 261ml 264ml 264ml 283ml 654ml

PASSPORT 17

GLOBAL BRAND: LOCAL PACKAGING

Tailored sizing strategy in shampoo meets varying consumer needs  In Dove’s sale of hair care, shampoo and conditioner form the mainstay of demand, amounting to 91% of the brand’s global hair care sales in 2010. As in bath and shower, the need to customise pack type and size to address varying country requirements is apparent in Dove’s packaging strategy for hair care.  Leading country consumers for Dove shampoo, that of Brazil and the US, which accounted for 25% of the brand’s global sales in 2010, have differing sizing preferences. In Brazil, the standard sizes of 200/250ml are widespread, whilst in the US, the larger 12oz (340ml) is more typical and reflective of the position of the larger 12oz as the most sold size in the US.  In sharp contrast, India, globally Dove’s secondfastest growing market of 2010 in hair care, exhibits a very different pack mix. Only entering India hair care in 2007, Dove has posted stellar progress through the provision of a range of pack sizes. The brand’s Rs3 8ml sachet, a value pack size, is aimed at low-income households in semi urban/rural areas, an important part of the population. This use of sachets demonstrates Dove’s success at understanding local preferences with a suitable customised sizing strategy. © Euromonitor International

PACKAGING PROFILE: DOVE

Most Common Dove Pack Sizes in Shampoo 2010 200ml

250ml

400ml

PASSPORT 18

GLOBAL BRAND: LOCAL PACKAGING

Developing regions exert different pack requirement of Dove  As developing regions represent a larger part of Dove’s global retail sales, the need to provide packaging that answers specific local requirements will become ever more pertinent to achieving success. The typical pack format synonymous with Dove shampoo in the global marketplace remains the 200/250ml HDPE bottle. Whilst this may be suitable in some of its leading hair care markets of Brazil, Japan and Germany, packaging breakdowns for beauty and personal care by region show that consumers can have differing local pack requirements.  As Dove continues to expand its presence in developing regions, a key objective in line with Unilever’s global Compass strategy, it is critical that this regional growth is developed with the right range of packaging type and sizes to make most impact.

© Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 19

GLOBAL BRAND: LOCAL PACKAGING

Pouches, an Asia Pacific pack solution, especially strong in Japan  Pack type specification reflects specific local preferences. In body wash, rigid plastic packaging is the outright pack leader, accounting for 95% of global packaging unit volume sales. Typically fitted with a plastic dispensing closure, this pack combination became the worldwide default format for body wash/shower gel. However, in many Asia Pacific markets this pack type is supplemented by the pouch.  Dove has responded with its own pouch offering, for example, with a 400ml pouch in Japan and Indonesia, and a 650ml refill pouch in Taiwan.  In developing Asia Pacific, personal care products retailed in flexible packaging widely attract a lower unit price, important for priceJapan sensitive consumers. Dove body wash pouch (400ml)  Providing the standard rigid plastic bottle alongside the pouch enables Dove to access lower-income consumers alongside those able to trade up to a rigid plastic dispensing format.  In Japan the pouch has a different dynamic. As the world leader when it comes to demand for stand-up pouches in beauty and personal care, refill pouches have been well positioned in the country for a number of years as an environmentally-friendly pack solution with many brands across both personal and home care offering such pouches.  In Japan, pouches need to retain the premium brand positioning of the rigid plastic alternatives. As such, a higher quality of pouch can be expected with the use of more elaborate print surface and the use of closures for resealability. © Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 20

GLOBAL BRAND: LOCAL PACKAGING

Sachets, an economic value pack for India hair care  HDPE bottles, synonymous with the Dove brand across North America and Western Europe, are also specified in India but hold a much smaller role with sachets of less than 10ml in size by far the preferred medium for shampoo. In India, the plastic sachet accounted for 97% of 2010 shampoo unit sales.  Dove only entered the India hair care category in 2007, but has already made strong headway in shampoo and conditioners with strong support from Hindustan Unilever, leading beauty brand owner, to command nearly 7% of retail Indian shampoo sales in 2010.  Dove’s use of the sachet in India is very particular to the Asia Pacific region, with sachet sales most prevalent in India and Indonesia and reflective of the consumer base, the sachet represents an affordable format designed to optimise consumer take-up amidst the strong competition that Dove has to contend with in the form of Sunsilk, Pantene and Clear. Dove’s launch of the 8ml sachet is slightly bigger than the 5ml size enabling in-store differentiation. The sachet further works as both an introductory pack for the affluent to try before trading up to Dove’s larger-sized rigid plastic offerings, as well as being a repeat purchase pack for the less affluent, rural consumer base. Dove: Hair Care Packaging in India - 2010 Pack Formats

Pack Sizes

Shampoo

HDPE bottles

100ml, 200ml, 250ml,400ml

Shampoo

Flexible packaging

8ml

Conditioner

HDPE bottles

100ml, 200ml, 250ml,400ml

Conditioner

Flexible packaging

8ml

© Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 21

GLOBAL BRAND: LOCAL PACKAGING

Importance of traditional retail outlets to future Indian sachet sales  A traditional retail infrastructure with Kirana stores in India and Warung stores in Indonesia contributes to driving small sachet sales over larger rigid plastic bottle sales in shampoo.  In India, such traditional, small grocery retailers account for 54% of hair care sales as opposed to less than 1% in the US where specialist health and beauty retailers are most significant, indicative of just how different shopping patterns can be between developing and developed countries.  India’s pack mix clearly shows the absolute need for Dove to supply in a pack appropriate to diverse consumer needs and ways of buying; this will be pertinent to the brand’s success as it aims to grow position in emerging markets.

Kirana stores in India and Warung stores in Indonesia where sachets of shampoo and conditioner are a common sight © Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 22

GLOBAL BRAND: LOCAL PACKAGING

Small grocery retailers dominate India hair care sales

© Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 23

GLOBAL BRAND: LOCAL PACKAGING

Case study: Affordable Dove broadens appeal in US slowdown

In Dove’s top country sales generator, the US, the brand records impressive advancing sales despite the economic slowdown. With the

provision of a broad product range and strong advertising support, Dove further extends its lead on the competition as the US’s biggestselling bath and shower brand, procuring especially lucrative gains for core pack formats

of HDPE bottles and folding cartons. PASSPORT 24

GLOBAL BRAND: LOCAL PACKAGING

Dove’s packaging for the budget buyer; bulk sizes and multipacks Mid-priced Solution

Economy Value Offering

Dove VisibleCare Crème Body Wash Softening

Dove Beauty Bar White 4.25oz bar in folding carton US$0.47/oz/US$3.79 for 2-pack; US$0.35/oz/US$8.99 for 6-pack

18oz HDPE bottle US$0.44/oz/US$7.99 unit price

Dove Beauty Bar White is the classic entrylevel Dove product purchase.

Launched in 2010, three variants: Softening, Renewing and Brightening.

Choice in variants with same unit price applied across the range of bar soap widens: Beauty Bar Pink; Beauty Bar Sensitive Skin; Beauty Bar Fresh Burst Nectarine & White Ginger; Beauty Bar Gentle Exfoliating extol both fragrance and skin kind enhancements.

Contains a blend of glycerin and lipids for enhanced moisturising properties to moisturise and hydrate the skin and provide “visibly” softer, smoother skin.

Use of largersized multipacks procures additional costsavings for endconsumer.

Larger 18oz bottle size procures per oz cost savings amongst more mid-priced offerings.

PASSPORT 25

GLOBAL BRAND: LOCAL PACKAGING

Dove’s packaging for the mainstream buyer; focus on functionality Dove’s iconic moisturising properties +more benefits

Nourishing Dove Nourishing Care Shea Butter

© Euromonitor International

Hydrating Dove Go Fresh

Beauty enhancing Dove VisibleCare Renewing; Softening

PACKAGING PROFILE: DOVE

 The health-driven upsurge in sales of bath and shower seen in the US on the back of the swine flu H1N1 virus and health concerns was less apparent as an impetus for growth in 2011.  However, additionally aware of consumers placing a growing importance on functional, skin care benefits, Dove Nourishing Care Shea Butter is just one of a number of body wash/beauty bar (bar soap) launches in HDPE bottles that seeks to not only offer the skin moisturising quality that Dove Original is known for but to deliver on other skin care qualities, such as nourishing, hydrating, renewing and beauty-enhancing benefits.  Seasonal fragrances are also introduced with Dove Winter and Summer lines whilst the launch of Dove VisibleCare, builds on Dove’s “moisturising” USP containing a high concentration of Dove’s NutriumMoistureTM.

PASSPORT 26

GLOBAL BRAND: LOCAL PACKAGING

Dove to use a range of sizes to heighten value gains in recovery Bulk and multipacks – economic value format

Functionality – add value to mainstream product line

 Attractive price positioning and widening product range through function and fragrance have enabled Dove to increase its share under difficult economic market conditions in the US.

 Going forward as the economy recovers, Dove should develop its focus on value-added lines to avoid being caught by product consumption stagnation in mature regions.

 Euromonitor International recommends that Dove continues the use of a range of pack sizes to broaden consumer reach and accessibility, through the added affordability of multipacks and larger sizes and in the provision of price points that are appropriate to all consumer budgets.

 Value-added lines need to stand out on the shelf. Euromonitor International recommends pack differentiation through colour and shape in packaging to communicate the added-value product positioning of new product lines.

 Countries with the lowest per capita disposable incomes that represent opportunity markets for Dove’s value propositions are:

 Countries that exhibit a high per capita disposable income and are more open to added-value lines from Dove are:  Switzerland

 Vietnam

 Norway

 India

 Australia

 Philippines

 USA

 Indonesia

 France

 Ukraine

PASSPORT 27

INTRODUCTION DOVE MARKET POSITION DOVE SIGNATURE PACKAGING GLOBAL BRAND: LOCAL PACKAGING CONSUMPTION DRIVING AEROSOL UPTAKE

COLOUR AND SHAPE IN PACK STRATEGY RECOMMENDATIONS

CONSUMPTION DRIVING AEROSOL UPTAKE

2010 aerosol sales propels Dove to 3rd fastest-growing deodorant  Although ranked fourth in global deodorants in 2010, Dove joins other market leading Unilever brands, Rexona and Axe/Lynx/Ego, to become the third bestperforming brand in the category over 2009-2010.  Spray deodorants retailed in metal aerosol cans is Dove’s top-selling format, accounting for 41% of its global deodorant sales in 2010 and is the driving force behind growth, as consumers’ use of Dove deodorant retailed in metal aerosol cans resulted in a 29% rise in 2010 sales over 2009.  Competition is rising as other global beauty players strengthen their positions, with notable gains in 2010 from Natura, Garnier and O Boticário. Nivea (Beiersdorf AG) also continues to invest strongly in deodorants, requiring Dove to continually innovate through its product range and packaging in order to develop its position in the face of competition.  Germany, Romania and the UK offer best volume per capita consumption growth opportunities for aerosol deodorants to 2014 and so key countries for Dove to pursue with new fragrances attractive amongst younger consumers as an affordable alternative to perfume.

© Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 29

CONSUMPTION DRIVING AEROSOL UPTAKE

Importance of skin-kind products feeds into Dove deo innovation  Innovation in Dove’s deodorants range very much stems from those seen in skin care where anti-agers provide the highest growth, retail value sales of which grew at a 10% CAGR over 2005-2010 and will further head up forecast value gains in the beauty industry.  The rising importance placed on skin care benefits in deodorants is exemplified by new deodorant line extensions from Dove like Dove pro·age (anti-ageing line) launched in 2007 and Dove Sensitive, whilst more practical consumer benefits are derived from Dove Silk Dry, Dove Invisible Dry and Dove Minimising.  The distinctively shaped aerosol can ties the lines together to strengthen brand equity and retail sales. In a highly competitive marketplace, new line extensions that offer improved protection and skin care attributes help to invigorate sales, but it is important that the pack type and design need to complement the existing pack range for longevity of brand recognition. 2011 Latest Launches Dove Beauty Finish Dove Ultimate Go Sleeveless

Dove increases sales through functional and fragrance extensions; widely uses white with contrast colour cap for core packaging of aerosols (deodorant sprays) and rigid plastic (sticks and roll-ons)

© Euromonitor International

Danger: Dove’s use of different colours as in “pro·age” and “Minimising” lines, and different logo position may dilute brand recognition

PACKAGING PROFILE: DOVE

PASSPORT 30

CONSUMPTION DRIVING AEROSOL UPTAKE

Case study: India, an opportunity for Dove’s aerosol deodorant

Dove has entered the Indian aerosol spray

deodorants category, leveraging parent company Hindustan Unilever’s market-leading strength in India deodorants through its Axe brand. Doubling sales in two years, the sharing attribute of the aerosol can makes it the practical, economic pack solution for Dove deodorant in India.

PASSPORT 31

CONSUMPTION DRIVING AEROSOL UPTAKE

Aerosol preferred for India’s deodorant entry, a practical share pack Dove aerosol deodorant enters India in 2007  India represents a relatively new market for Dove deodorants, with uptake driven by the young urban consumer base.

 Only entering the country in 2007, the brand’s launch into deodorants has been supported by Dove’s prominent position in bath and shower and from the parent company’s market-leading presence in deodorants through the Axe brand.  Dove’s parent company, Hindustan Unilever, exerts a strong presence on the sale of deodorants in India, accounting for 29% of the country’s aerosol spray deodorant sales through its Axe, Dove, Rexona and DIY brands. Through this influential position, Dove benefits from leveraging economies of scale in its new product launches.

 Dove’s decision to launch in metal aerosol cans instead of rigid plastic for deodorant roll-ons or sticks comes from the aerosol’s practical ”sharepack” attribute enabling the aerosol spray to be used amongst all the family in the way that a roll-on deodorant is not.

Dove leverages growth through Unilever stronghold India: Deodorant Sprays Brand Shares and Sales

Name

2008

2009

2010 Retail Sales 2010 (US$ mn)

Axe

27.0

26.5

25.5

43.1

Set Wet

5.0

9.0

10.6

17.8

Wild Stone

2.0

7.0

9.6

16.2

Spinz

6.5

6.7

6.2

10.5

Fa

7.8

6.3

5.6

9.4

Eva

3.5

4.5

5.3

8.9

Nivea

3.0

4.0

4.8

8.1

Dove

1.5

2.0

2.9

4.9

Old Spice

2.5

2.7

2.2

3.7

Oriflame

1.8

2.0

2.1

3.5

39.4

29.3

25.2

42.8

Others

PASSPORT 32

CONSUMPTION DRIVING AEROSOL UPTAKE

Aerosol’s widespread popularity presents buoyant pack prospects

 The Indian market for deodorant sprays was valued at US$169 million in 2010; it is the dominant deodorants format, accounting for 99% of the country’s deodorants sales. The rapid gains to date are supported by media campaigns educating the consumer on the use of deodorants.  There is a natural burgeoning growth trajectory predicted for deodorants in aerosol cans through 2014 from the very low current per capita use at just 8ml per capita compared to world leading use of 590ml in Argentina or 566ml per capita in the UK.  As the most popular deodorants format, Indian per capita use of aerosol sprays is set to reach 18ml by 2014. In absolute packaging gains, the aerosol can is predicted a 21% CAGR over 2010-2014 as an affordable, easy-to-share format over roll-ons, providing ample opportunities for Dove to develop. India Aerosol Deodorant Spray Consumption per Capita 2005: 2.4ml

2010: 8.2ml

2014: 18.4ml

PASSPORT 33

CONSUMPTION DRIVING AEROSOL UPTAKE

Aerosol can as deodorant pack for all income bands and occasions Consumer uptake to spur on Indian aerosol sales

Develop broader range of sizes in emerging markets

 India represented the fastest-growing category for the Dove aerosol spray deodorant in 2010 and looking ahead to 2014, India is expected to provide the highest aerosol can unit volume gains globally. Sheer rise in per capita consumption  Indian consumption of aerosols is predicted growth of 101 million units over 2010-2014, as per capita consumption of aerosol deodorant increases. Skin kind and fragrance for value-add prospects  As the Indian consumer with more disposable income to spend becomes more familiar with the efficacy of the aerosol can in deodorants, there exists the opportunity to make added-value gains. Dove’s deodorants with moisturising properties are well-placed to gain as the discerning consumer seeks out skin care benefits from their purchases.  The incorporation of fine fragrance is another strategy for Dove to explore to expand aerosol sales amongst the middle-class consumer base, as deodorants become more widely accessible and affordable than fragrances for scent.

 100ml and 150ml are widely the most common pack sizes for Dove aerosol deodorant. In India, the standard aerosol spray can posted strong progress to date as a family share pack. Smaller pack size strategy to grow occasion use  Going forward, aside from the product content range development, in packaging, Dove should use pack sizing to grow sales. With growing acceptance as deodorant sales in metal aerosol can become more entrenched, there exists the opportunity to increase sales with smaller sizes. Offering lower price points, the use of smaller pack sizes can help increase the attractiveness of the Dove spray deodorant amongst low to mid-income households and further encourage more individual use in instances where used as a family pack.  Equally, amongst more affluent consumers, the smaller aerosol can offers potential through its convenience attribute as a travel pack. Top volume growth countries for aerosols in deodorants 2010-2014: India, Brazil, Germany, Argentina, UK

PASSPORT 34

CONSUMPTION DRIVING AEROSOL UPTAKE

Case study: Brazil’s passion for fragrance and ability to spend

Brazilians’ unceasing demand for deodorising

accounts for the importance of Brazil to Dove’s global deodorant sales growth. The country’s rising economic strength combined with Dove’s new launches with the Brazilian consumer in mind serves to consolidate Dove’s position further, procuring especially healthy ongoing gains for metal aerosol cans and rigid plastic.

PASSPORT 35

CONSUMPTION DRIVING AEROSOL UPTAKE

Brazil sweeps the board in global packaged deodorant sales

 Looking at Dove’s global performance, Brazil is critical to the brand’s success in many ways; it leads global 2010 retail value sales in deodorant sprays and roll-ons, accounting for 28% and 33% of Dove’s global 2010 value sales respectively. Brazilian sales of Dove deodorants remain robust in growth terms too, heading up Dove’s global value sales growth in deodorant sprays, roll-ons and creams and specifically, for packaging, the country’s retail consumption of metal aerosol cans and rigid plastic packaging.  In a volatile financial climate, Dove, alongside other major brands, chose not to increase prices significantly in sprays and roll-ons in 2010, an important growth strategy, sensitive of consumer cautiousness. This has enabled the brand to retain its consumer base and even grow it with Dove’s share of retail deodorant sales in Brazil rising from 5% in 2009 to 6.1% in 2010. Top Global Country Performers in Deodorants by Deodorant Type Top Country 2010 Retail Fastest Growth Retail Sales Seller for Sales Country Growth Dove in 2010 (US$ mn) 2009-2010 2009-2010 (US$ mn) (US$ mn)

Deodorants

Brazil

216.7

Brazil

80.4

- Sprays

Brazil

118.4

Brazil

64.0

- Roll-Ons

Brazil

93.8

Brazil

15.4

- Sticks

USA

156.7

USA

58.7

- Creams

USA

16.2

Brazil

1.0

© Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 36

CONSUMPTION DRIVING AEROSOL UPTAKE

Consumer trade up from pump to aerosol can gives Dove a key win

 Deodorant sprays in metal aerosol cans are enjoying the greatest progress of all pack formats in Brazil, growing at a 23% CAGR in unit volume terms over 2005-2010. Brazilian consumers are trading up from the traditional, cheaper pump, squeeze deodorants in HDPE and other plastic bottles that are not sold under the Dove brand to deodorant sprays and roll-ons, largely to the benefit of international value-added brands like Dove and its competitors.  The efficiency of dispensing of the deodorant spray has meant that once consumers make the switch over from deodorant pumps to the aerosol spray format, they rarely revert to the deodorant pump.  The 2010 upsurge in sales of Dove spray deodorants is further stimulated by added-value launches of Dove Dermo Aclarant, a deodorant range that promises to recover natural skin colour.  Added-value formulations will continue to add to revenues, with metal aerosol can sales projected dynamic growth. A significant R$65 million advertising budget in 2010 from parent company Unilever to its deodorant lines is another factor pertaining to the company’s and brand’s strong market presence.

© Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 37

CONSUMPTION DRIVING AEROSOL UPTAKE

Adding value is not merely a strategy for developed world markets Dove Dermo Aclarant in Brazil shows a commitment to adding value in developing world markets  The relaunch of Dove Dermo Aclarant in Brazil demonstrates Dove’s commitment to adding value in developing world markets. This line is marketed as premium in Brazil and differentiates from many other Dove deodorant lines, where white is the predominant colour with a contrast colour cap.  Softer colours with metallic hues are used for this packaging line to convey premium product image.  Brazil’s ongoing switch from pumps to the valueadd packaging format of metal aerosol cans for deodorant sprays will continue as consumers are able to trade up.  Line extensions offering added-value functions and fragrances will support growth and drive storebased retail sales for Dove sprays in aerosol cans and roll-on deodorant in rigid plastic.

Food for thought in other developing markets that illustrate more discretionary spending  Packaging that achieves shelf impact will continue to be important as Dove continues to diversify its range of deodorants. However, if the pack appears too similar to the mainstream range, consumers will expect to pay the same unit price.  Shape, colour and texture are important packaging tools to communicate added-value and attract a higher unit price.  In looking to develop sales of its added-value lines, Dove should not overlook developing markets as exemplified by the brand’s success in Brazil.  Argentina, high capita user of deodorant sprays at 590ml per capita in 2010, offers good prospects with skin care attributes an important avenue to pursue.  Meanwhile in Asia Pacific where usage of deodorants is lower, the changing household profile embodied by a rise in incomes and fall in birth rates shows a shift from expenditure on essentials to more discretionary spending, additionally points to opportunities for Dove to explore.

PASSPORT 38

INTRODUCTION DOVE MARKET POSITION DOVE SIGNATURE PACKAGING GLOBAL BRAND: LOCAL PACKAGING CONSUMPTION DRIVING AEROSOL UPTAKE

COLOUR AND SHAPE IN PACK STRATEGY RECOMMENDATIONS

COLOUR AND SHAPE IN PACK STRATEGY

Dove shows continuity in body care bottle shape, variation in colour  Dove specifies a similar shaped bottle across many of its body care lines, but shows variance in colour. Whilst many adopt the Dove signature white, colours vary in Dove pro·age where a rich red is the dominant colour chosen for all Dove pro·age product lines, irrespective of the product type or pack format specified.  The brand uses HDPE for all plastic bottles in body care; this global specification of HDPE enables the brand to procure economies of scale in its purchasing of packaging, further beneficial as HDPE is also specified in bath and shower and hair care. Dove Visible Effects launched in January 2010, in contrast, is filled in a tottle.

Dove Visible Effects © Euromonitor International

Dove pro·age nourishment

Dove Intensive Nourishment PACKAGING PROFILE: DOVE

Dove Summer Glow

Dove Essential Nourishment PASSPORT 40

COLOUR AND SHAPE IN PACK STRATEGY

A broad familiarity of shape also in body wash, some exceptions  Dove specifies a similar shaped bottle across Dove body wash/shower gel ranges, with the main difference that of colour, in the pro·age and men’s ranges.  However, with the Dove Visible Effects skin care range, Dove has opted for a tottle (upside-down bottle) for its VisibleCare body wash range in contrast to most other body wash variants.

Dove VisibleCare Brightening

© Euromonitor International

Dove pro·age Nourishment

Dove go fresh Cucumber & Green Tea

PACKAGING PROFILE: DOVE

Dove Silk Glow Nourishing

Dove Deeply Nourishing

PASSPORT 41

COLOUR AND SHAPE IN PACK STRATEGY

Changing colour strategy apparent in Dove aerosol deodorant lines Original Dove aerosol deodorant design of white background and contrast colour cap.

Dove Beauty Finish 150ml aerosol can © Euromonitor International

Whilst many of Dove’s deodorant spray lines follow the design of the Dove Original line using a largely white background with a contrast colour cap reflective of the fragrance or formulation with blue for Dove Original, yellow and green for Dove go fresh and pink for Dove Beauty Finish that was launched in 2011, this is not universally the case. Dove pro·age, Dove Minimising and Dove Men+Care have moved away from this design to using the same dominant colour on both the metal aerosol can and cap.

Dove Men+Care 150ml aerosol can

Dove pro·age 150ml aerosol can

PACKAGING PROFILE: DOVE

Dove Minimising 150ml aerosol can

PASSPORT 42

INTRODUCTION DOVE MARKET POSITION DOVE SIGNATURE PACKAGING GLOBAL BRAND: LOCAL PACKAGING CONSUMPTION DRIVING AEROSOL UPTAKE

COLOUR AND SHAPE IN PACK STRATEGY RECOMMENDATIONS

RECOMMENDATIONS

Do not lose brand equity through too much pack diversification Focus on consistency in pack design

Retain Dove’s strong pack and shape identity even in innovation and local pack strategies

 As Dove looks to  Dove’s upside-down HDPE bottle continually build brand launched for deodorant roll-ons in equity by extending its 2010 contains less plastic than its presence in its core predecessor; this lighter pack has markets through line been rolled out across Rexona and extensions and relaunches Sure to enable efficiency and cost alongside that of entering savings for parent company, new categories, it is Unilever, as part of the company’s essential that consistency target to reduce packaging weight by of design is retained a third by 2020. across its packaging  There is the necessity to differentiate portfolio as too much pack range to meet diverse country variation in shape and needs by implementing the most colour can dilute brand suitable pack type and size, but it is recognition. equally important for Dove to remain true to a central brand packaging design, material and colour ethos for maximum success in new country and category entries.

© Euromonitor International

PACKAGING PROFILE: DOVE

Rationalise down to a more defined colour palette with a refined number of pack designs  By adopting a strong uniform design/colour palette, Dove can help cement the position of new products as being instantly recognisable Dove products. Additionally, a more coherent pack design from bottle shape, closure format, label and print design and dyes used in the packaging will further realise cost efficiencies for the brand in sourcing by reducing the complexities and add to Dove’s revenues.  Without this rationalisation, if spread too thinly with too broad a colour palette and pack design, Dove runs the risk of losing rather than gaining in brand position.

PASSPORT 44

REPORT DEFINITIONS

Definitions This Global Brand Packaging Briefing examines the packaging portfolio of Unilever’s Dove brand in the following beauty and personal care categories:  Baby Care  Bath and Shower  Deodorants  Hair Care

 Men’s Grooming  Oral Care  Skin Care  Sun Care  Sets/Kits

And the following pack types:  Flexible Plastic  Folding Cartons  Glass Bottles  Glass Jars  HDPE Bottles  Metal Aerosol Cans  Metal Tins  Other Rigid Bottles  PET Bottles  Plastic Jars

 Plastic Pouches  Squeezable Plastic Tubes

© Euromonitor International

PACKAGING PROFILE: DOVE

PASSPORT 45

Experience more... This research from Euromonitor International is part of a global strategic intelligence system which offers a complete picture of the commercial environment. Also available from Euromonitor International: Global Briefings Timely, relevant insight published every month on the state of the market , emerging trends and pressing industry issues. Interactive Statistical Database Complete market analysis at a levels of detail beyond any other source. Market sizes, market shares, distribution channels and forecasts. Strategy Briefings Executive debate on the global trends changing the consumer markets of the future. Global Company Profiles The competitive positioning and strategic direction of leading companies including uniquely sector-specific sales and share data. Country Market Insight Reports The key drivers influencing the industry in each country; comprehensive coverage of supply-side and demand trends and how they shape the future outlook. © Euromonitor International

PACKAGING PROFILE: DOVE

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PASSPORT 46