Dove Cosmetics Analysis

2672 words - 11 pages

4. Financial Analysis
In 2012, Dove was placed as the world's 4th most valuable personal care brand, with an estimated value of $4.7bn. Dove's sales were around 3bn globally in 2011, according to figures released by Unilever at the end of that year, and the brand is available in around 100 countries worldwide. Growth has been rapid and dynamic over the past 20 years. Since many years, the bar soap market has turned down on an annual rate of 2% which is an average rate, whereas Dove has grown at an annual range of 30% regarding to the product conflictions and geographical amplifications. In 2007, Dove’s rapid growth had begun to fall dramatically in the US. The sales rose only just over 1% in the year to August 2007, compared to growth of over 10% for the previous year. Dove continued to focus on increase spending on promotions through different marketing channels and in 2011 it succeeded to rise its sales in US by 10% and achieve about $690m.
Budget Allocation
Regarding to 2004 beauty campaign, Dove had determined a budget of $65,572,000 with a $3,500,00 contingency plan. The campaign started in January with moderate advertising begun to increase in March. The highest advertising months were during the months of May, June, July and August. Since Dove already has a high awareness, It focused on heavy frequency, especially during the summer months. According to the media plan we created, $61,868,200 was going to be spent on advertising for the year in Television, Internet, Radio and Print advertising. The breakdown of Dove’s advertising spending per month was demonstrated in the chart below.

Month Amount Spent Percent of Budget
January 3647.7 5.9%
February 3647.7 5.9%
March 3928.2 6.3%
April 6277.6 10.1%
May 6716.4 10.9%
June 6716.4 10.9%
July 6716.4 10.9%
August 6716.4 10.9%
September 6277.6 10.1%
October 3928.2 6.3%
November 3647.7 5.9%
December 3647.7 5.9%

The primary expenditure for advertising was through Television and Print advertisements with 35 percent of the budget spent on TV and 33 percent spent on print. Only 17 percent had been spent on radio and 15 percent on internet advertising.

5- Control systems

Implementation of Dove at business and corporate – level

The timeline is an important tool used within an advertising marketing campaign because it provides the client with a clear business plan, which is strategically though tout to provide optimal results. The timeline is used to reduce ambiguity. On its way to becoming the best beauty brand, Dove continues to maintain the highest levels of investment in the market as well as expanding its product portfolio.

Today, Dove, as a brand, has a higher turnover than many fast moving consumer goods markets, The main reasons for Dove’s success in the intensely competitive environment in which it operates is its achievement and functional and...

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