Monday, December 16, 2019

Dove Packaging Market Research (BUS 339: October 1, 2019)


Dove Packaging Market Research
The Need for Market Research?
            The soap and detergent industry was a 97 billion dollar industry in 2016, which economist’s project to maintain annual growth through the year 2025. Certain socioeconomic factors will promote market growth like population increase, income increases, and continued advancements in less-developed countries. New and innovative products will drive the market (Grand View Research, 2018). The soap and body care market is competitive and has a high chance of consumer disloyalty, as 46 percent of consumers are apt to brand-switching and trying new products (The Nielsen Company, 2019). To remain a competitor in the market, companies must decide which products to sell, what marketing message to deliver, market segmentation, and means of delivery. Businesses must make numerous decisions (Burns & Bush, 2012). As the Dove brand ages into this competitive market, the packaging may appear old and outdated. For answers, marketers look to Dove’s customer-base since consumers help define a company’s brand identity (Mininni, 2010). Is there a need to for packaging that is innovative and fresh? Or does Dove’s consumers value the familiarity of its current packaging. Marketing research can evaluate consumer values, explore current trends, and supply Dove with the accurate information to make knowledgeable decisions.
Dove’s Marketing Problem
            Dove sells lotion, body wash, deodorant, and hair care products under Unilever. Before Dove launched the “Campaign for Real Beauty”, the company hired Edelman to conduct a survey to understand women’s’ concerns and attitudes towards beauty and advertising (Skene, 2014).  Dove polled 3000 women across ten different countries to learn about women’s interests. This research ignited the “Dove Campaign for Real Beauty” which has won several awards. The first advertisement had over 35 million YouTube views within the first 2 weeks. In these campaigns, Dove features ordinary women over models, or purposefully demonstrates how photo-shopping is commonly used in beauty advertisements to correct flaws (Bogost, 2017). The first advertisement had over 35 million YouTube views within the first 2 weeks (Aacker, 2017). In breaking gender stereotypes, Dove gained a brand-identity synonymous with body positivity. By 2014, Dove saw a sales increase from two-and-a-half billion dollars to four billion dollars (Skene, 2014). 
            In line with its body positivity campaign, Dove updated the body wash packaging. Dove wanted to encourage women to embrace and appreciate their differences, but the majority of their consumers already do. The Dove Beauty and Confidence Report on Dove’s website shows that 7 out of 10 girls believe that society places too much importance on the idea of beauty. Eighty-two percent of women globally believe that every person has a trait that is beautiful (Unilever.com, n.d.). This information explains why Dove’s consumers may not welcome personified bottle shapes focusing on a woman’s appearance. Many consumers felt confused, while others were offended. Social media reactions ranged from humor to appall (Calfas, 2017). Consumers questioned if the different shapes contained the same amount of product. The packaging was not well-received and unfortunately Twitter and the media’s coverage of the reaction added negative attention.
            Some marketers consider a product’s packaging as the product in the Four Marketing P’s. Others marketers define the packaging as a fifth component in the marketing mix (Agariya, Johari, Sharma, Chandraul, & Singh, 2012). However, regardless the definition, both acknowledge the importance of packaging. For a company with a strong brand identity, the packaging often becomes synonymous with that identity for the consumers (Agariya, Johari, Sharma, Chandraul, & Singh, 2012). Should the company update the packaging? Are there certain elements that should remain unchanged? What do the consumers want?
Research Objectives
            The research objectives are to help Dove create the right packaging suitable for its marketing strategy, so it can deliver a product the consumer needs and wants. First, primary research will provide insight into the current values of consumers to determine if a packaging change is necessary or needed. Next, analyzing the data will detect possible market segmentation and explore different values within those groups. And lastly, secondary research will explore current social values around alternative materials to determine how advantageous it is for the company to change not only the shape of the bottles, but the material itself.
Research Design
            The market research report uses exploratory and descriptive research techniques. Exploratory research allows marketers to gain an understanding of the body wash market, locate problems that the company may face, and generate hypotheses (Burns & Bush, 2012). Exploratory research can pinpoint the growth and trends of a Dove within the market. Descriptive research provides answers on who consumers are and their current values.


Information Types and Sources
            There are many advantages to using external secondary research. Secondary research is widely-available, obtained quickly, cost effective, and sometimes answer a question without a need for additional research (Burns & Bush, 2012). Even If an external secondary source does not provide a direct answer, it can add helpful cultural and social insight. Publicly available research may provide deeper insight into consumers’ emotional choices. To help Dove decide if the packaging should contain an alternative to plastic, the research includes one secondary source that provides insight into consumer readiness to purchase green products. 
            Social media is valuable secondary source that provides insight on how well consumers might receive a product change and current social challenges and concerns. Dove can look at the social response to the previous commercials by analyzing comments on the company’s YouTube channel. Within these comments the company will understand the overall feelings of consumers who engage with the ads. In one study geared towards machine analyzation of quantifying comment responses, reports that the majority of the comments were praise or statements pertaining to the definition of beauty. Skepticism found in the comments measured around 11 percent (Feng, Chen, & He, 2019). While this particular study’s purpose is how to machine process large amounts of social media data effectively, the results reflect the general attitudes towards the ad campaigns. While the praise and positive comments are important, the negative comments may provide valuable information to apply for a new product design.
            Proprietary information is confidential information that is available to a select group of employees on a need-to-know basis. To keep the information secure, companies may have employees privy to this data sign legal contracts such as non-disclosure or confidentiality agreements Proprietary information may include marketing plans, trade secrets, contracts, or recipes (Langoria-Chafkin, n.d.). While researchers do not have access to this sensitive data, a secondary analysis of the Dove brand portfolio provides valuable information on the overall health and direction of the company.  
            Original in-house research is catered to the company and its goals. In-house research allows a company to select specific data and interpret the results for their research needs. If thorough research is necessary for answers, in-house research can take longer than using public research. Research expenses will increase according to the research needed. In-house research is useful when available public data is outdated, or measurements and variables are not specific enough for the required research. If a company does not find answers in external research, then a company can create an in-house, primary research plan including interviews, observations, focus groups, and surveys to obtain answers (PollenStrategy, 2012). The research report includes an in-house online packaging survey featuring several Dove body wash bottle types.
Methods of Accessing Data
            Per Burns’ & Bush’s advice, the bottle packaging survey is brief and clear and the questions are clear and simple (2012). Online participants will chose they’re preferred body wash packaging out of four provided options. Then the participant selects the age range and gender they identify with. Researchers posted the survey publically on Twitter and Facebook with the possibility of resharing. There is no additional place for comments and all three questions require an answer to complete.
Data Collection
            To understand if consumers prefer the original Dove body wash packaging or three other “Body Beauty’ bottles, a brief online survey was shared publically on Twitter and Facebook. The survey was reshared an additional eight times. The survey collected 165 usable surveys. Seventeen percent of the sample is male, seventy-nine percent female, and three percent identified as non-binary, or chose to not report.  Age group options for the survey are: under 12, 12 to 17, 18 to 24, 25 to 34, 35 to 44, 45 to 54, 55 to 64, 65 to 74, and 74 or older. Time and money are major limitations in the study. The survey may contain bias as it was posted online and only placed on two social media outlets. The demographics for the population who uses the two means of social media is unknown.
Sample Size and Limitations
            The sample size is small due to time constraints. The survey was simplified to obtain a larger response quickly, but could have been more thorough and asked other socioeconomic questions. The male and female reporting percentages were tested for an accurate population measure, and the male data is significantly different from the female sample. To well-represent the population a larger sample of males and a larger sample in general are needed. The XL analyst test showed for a 95% confidence interval with a 5% error rate, the necessary sample should be 384 (Table 4). The survey sample is only 165. However, the confidence interval for 95% of the population percentage is 48 +/- 7.6, or between 40.4 to 55.6.
Data Analysis
            Most age and gender groups chose the original package C, besides 18 to 24 year-olds, 55 to 64 year-olds, and non-binary, or other (chose not to report) (Table 1).  On the survey (Table 2), package C is the original packaging for Dove body wash, while A, B. and D are three of the six bottle options from the “Real Beauty” line. While 48.2 percent of the entire sample chose C (Table 3). According to the survey data, many consumers still prefer the original packaging shape.
Should Packaging Go “Green”?
            Even if the shape of the bottle remains unchanged, there are other alternatives to consider. For instance, green products are gaining momentum in every market. Many consumers are aware of environmentally-friendly products, so researchers conducted a survey to determine if awareness correlates to intent to purchase (Arli, Tan, Tjiptono, & Yang, 2018). Researchers collected 916 surveys from universities, shopping malls, and houses in Yogyakarta, Indonesia because Indonesia is the 17th largest economy. Male respondents were 48%, and females were 52%. The focus age group of the survey ranged from 18 to 26 years old. Researchers tested the validity and reliability using the goodness of fit test, and variance extracted (AVE) indexes. The results of the test show that, “Attitude towards green products significantly influences consumers’ readiness to be green on purchase intention” (Aril, Tan, Tipton, & Yang, 2018p. 395). This is reported with a 90 percent confidence interval. Research also concludes that consumers who have purchased environmentally-friendly products once are likely to do so in the future (Aril, Tan, Tipton, & Yang, 2018).
Conclusion
            From the brand portfolio analysis, the Dove brand sales increased from 200 million dollars in the 1990s to over three billion dollars by 2011 (Aaker, 2017). This is notable growth considering the highly competitive market. This growth is due to global expansion, product extension, and product innovation. Dove’s “Campaign for Real Beauty’ largely contributed to the company’s success as the campaign addressed current social issues,  redefined the brand, and strengthened its relationships with consumers. These Dove extensions were successful because the product delivered an innovative, need to the consumer (Aaker, 2017). According to the collected data, it may be time for further innovation & extensions. One survey conducted by Kantar found that brands that are gender-balanced have a higher brand value at 20.6 billion dollars compared to 16.1 billion for female-targeted products and 11.5 billion for brands geared to men (2019). Dove’s campaign for beauty was extremely successful, but changing the bottle shape is not as important as the message. Perhaps it is time for Dove to appeal to consumer with a similar campaign for the environment. Since the current packaging is plastic, maybe it is time for Dove to release a unisex, environmentally friendly bottle as an innovative extension. This research provides some insight into consumer values and trends, and Dove may apply this to its packaging decisions, but additional research is recommended.
  
References
Aacker, D. (2017, June 13). What we can learn from Dove’s brand portfolio growth. Prophet. Retrieved from https://www.prophet.com/2017/06 https://www.prophet.com/2017/06/doves-brand-portfolio-growth//doves-brand-portfolio-growth/
Agariya, A, Johari, A., Sharma, H., Chandraul, U., & Singh, D. (2012). The role of packaging in brand communication. International Journal of Scientific & Engineering Research, 3(2). Retrieved from https://www.academia.edu/2301382/The_Role_of_Packaging_in_Brand_Communication
Arli, D., Tan, L.,  Tjiptono, F., &Yang, L. (2018). Exploring consumers’ purchase intention towards green products in an emerging market: The role of consumers’ perceived readiness. International Journal of Consumer Studies, 42(4), 389-401. DOI: 10.1111/ijcs.12432
Bogost, I. (2017, May 9). How Dove ruined its body image. The Atlantic. Retrieved from https://www.theatlantic.com/technology/archive/2017/05/dove-body-image/525867/
Burns, A. C. & Bush, R. F. (2012). Basic marketing research using Microsoft Excel data analysis (3rd ed.). Retrieved from https://redshelf.com
Calfas, J. (2017, May 8). People are confused about Dove’s new body wash bottles. Fortune. Retrieved from https://fortune.com/2017/05/08/dove-body-wash-bottles/
Feng, Y., Chen, H. & He, L. (2019). Consumer responses to femvertising: A data-mining case of Dove’s “campaign for real beauty” on YouTube. Journal of Advertising, (3). Retrieved from http://eds.b.ebscohost.com.proxy-library.ashford.edu
Grand View Research. (2018). Soap and detergent market size, share & trends analysis report by product, competitive landscape, and segment forecasts, 2018 – 2025. Retrieved from https://www.grandviewresearch.com/industry-analysis/soap-detergent-market
Kantar. (2019, January 29). Advertising industry complacency is letting brands and women down. Retrieved from https://www.kantar.com/company-news/Advertising-industry-complacency-is-letting-brands-and-women-down
Langorio-Chafkin, C. (n.d.). Proprietary information. Inc.. Retrieved from https://www.inc.com/encyclopedia/proprietary-information.html
Mininni, T. (2010, April 30). The rewards and risks of packaging design. Packaging Digest. Retrieved from https://www.packagingdigest.com/packaging-design/rewards-and-risks-packaging-redesign
PollenStrategy [Screen name]. (2012, September 3). In house market research. Slideshare.net. Retrieved from https://www.slideshare.net/PollenStrategy/inhouse-market-research
Skene, K. (2014, April 11). A PR case study: Dove real beauty campaign. News Generation. Retrieved from https://newsgeneration.com/2014/04/11/pr-case-study-dove-real-beauty/
The Nielsen Company. (2019, August 7). Global ad spending is up, but you can’t buy loyalty in CPG. Retrieved from https://www.nielsen.com/us/en/insights/article/2019/global-ad-spending-is-up-but-you-cant-buy-loyalty-in-cpg/
Unilever.com. (n.d.). Girls and beauty confidence: The global report. Retrieved from https://www.unilever.com/Images/dove-girls-beauty-confidence-report-infographic_tcm244-511240_en.pdf


Appendices
Table 1: Bottle Survey Data



n= 165

Frequency
Percentage of sample
Product Selection
Percentage


Age






under 12
5
3.00%
C
40%

12 to 17
9
5.00%
C
44%

18 to 24
7
4%
D
43%

25 to 34
31
19%
C
58%

35 to 44
91
55%
C
49%

45 to 54
10
6%
C
60%

55 to 64
8
5%
B
43%

65 to 74
4
2%
 C & D
50%

74 +
0
-
-
-
Gender






Male
29
17%
C
55%

Female
131
79%
C
48%

non-binary
2
1%
B
100%

Other
3
1%
D
66%




Table 2



Table 3


















Table 4
Sample Size Calculations
Sample Size Table
Sample Size
Allowable Error
Estimated "p"
95% Confidence
99% Confidence
5.0%
50.0%
384
666
Sensitivity - Alternative allowable error values
Sample Size
Allowable Error
Estimated "p"
95% Confidence
99% Confidence
4.0%
50.0%
600
1040
4.5%
50.0%
474
822
5.0%
50.0%
384
666
5.5%
50.0%
317
550
6.0%
50.0%
267
462
Sensitivity - Alternative levels of p
Sample Size
Allowable Error
Estimated "p"
95% Confidence
99% Confidence
5.0%
40.0%
369
639
5.0%
45.0%
380
659
5.0%
50.0%
384
666
5.0%
55.0%
380
659
5.0%
60.0%
369
639


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