Evaluating Advertisements
Unilever manufactures and sells a variety food,
beverages, home care, personal care and beauty products under 1,000 global
brands (Unilever, n.d.). The company reports that two-and-a-half billion
consumers use these brands on a daily basis (Unilever, n.d.). Unilever sells bar
soap under several brand name companies such as Dove and Lifebuoy. The soap
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 (Grand View Research, 2018).
To remain a competitor in the market, advertisers must choose a marketing
strategy, market segmentation, and platforms that will provide the highest
return on investment (ROI). Unilever remains a lead competitor in the soap
market in India and the United States by using different marketing strategies
and target segmentation.
Country
Overview
India is the “seventh-largest country in
the world by area and the second-most populous country (Pletcher, 2019, para. 1).
The life expectancy rate in India is 68.8 years, while the birth rate is 19.3
per 1000. In 2015 advertisers spent 158 billion dollars in India, which by
2020, data predicts will increase to 235 billion dollars in India (Statista
Research Department, Advertising…, 2019). Unilever released Lifebuoy soap into
the Indian market in 2013 as the market share increased to 22.7 percent from
18.4 percent in recent years (Balakrishnan, 2013).
The United States in the third most
populated country and the third largest according to landmass (Demography of
the United States, 2019). The birth rate is 12.4 births per 1000 and life expectancy
is approximately 80 years (Demography of the United States, 2019).Dove created
its popular moisturizing bar soap in 1957. Based on U.S. Census data, the majority of
Americans, nearly 115 million consumers, use Dove soap daily (Statista Research
Department, U.S., 2019).
Market
Segmentation Strategies
Market segmentation is the process of identifying
consumer differences and similarities within the population and grouping
individuals with similar purchasing habits and values together. Through target marketing, advertisers
purposefully direct advertisements to specific market segments to increase
effectiveness. Market segmentation allows advertisers to create more effective
advertising by understanding a segment’s values (Weigold & Arens, 2018).
The four types of segmentation strategies are
demographic, psychographic, geographic, and behavioral. Marketers may select
one or several segmentation strategies to reach the target market. Demographic
segmentation is based upon easily measured data such as age, income, or gender.
Geographic segmentation targets consumers with similar needs and wants within a
geographic region. Psychographic segmentations people by personality traits and
personal values. Behavioral segmentation sorts consumers by purchasing habits,
loyalty, and frequency (Weigold & Arens, 2018). Unilever’s “Help a Child
Reach 5” campaign for Lifebuoy soap uses all the segmentation strategies.
Unilever’s
Strategy in India
Corporate
social responsibility (CSR) is a recent extension of ethical behavior that
includes how a business advertises, operates as a company, and promotes social
causes in the community. As one industry leader asked, “Are we using
advertising to make money, or are we using it to make a difference, and can
both of those happen?” (Drumwright & Murphy, 2009, p. 8). There are many
benefits for companies who commit to CSR.
Consumer choice is driven by socially aware companies, as a 2016 Neilson
survey found that 53% of the participants consider a commitment to improving
the community as the highest purchasing factor (Russell, 2018).
In
2016, there were 5.6 million child deaths under five years of age (UNICEF,
2018). Pneumonia and diarrhea are two major, preventable causes of these
deaths. Pneumonia killed over 800,000 children in 2016, and many of these
children were under the age of two. Diarrhea-related deaths dropped over fifty
percent by 2015 at 526,000 cases (UNICEF, 2018). UNICEF set the goal to end
child mortality by 2025 by improving water and sanitation conditions, provision
of medications, and the promotion of good hygiene. In line with UNICEF’s goal,
Unilever set a goal to encourage one billion people to adopt healthy
handwashing habits by 2020.
In
part social responsibility and to take advantage of market growth in developing
countries, Unilever started the “Help Children Reach 5” campaign in 25
countries including India. In India, Unilever employees volunteer at schools to
teach children the importance of handwashing. The children receive kid-friendly
promotion materials with an emphasis on washing one’s hands for at least 20
seconds five times per day. Since forty percent of infant deaths occur within
the first four weeks after birth, mothers are also instructed on the importance
of handwashing (Aaker, 2016).
Demographic
Segmentation
Based upon historical data, market research projects the
soap and detergent industry to maintain continual growth through 2025. The
expected growth is due to increased disposable income in developing countries
and increased hygiene awareness (Grand View Research, 2018). According to
market research the soap market will see the highest growth in China, India,
and other developing countries (Grand View Research, 2018). By looking at
demographics and such as income, poverty levels and one can understand how Unilever
narrowed down the target segment to India. According to income data, one-fifth
of the Indian population rates “poor” (The World Bank, 2016). In 2016, India’s
mortality rate for children under five years of age was 40 per 1,000 live
births (UNICEF, 2018). Since a large percentage of these deaths are avoidable
with increased hygiene, India is a demographic segment that Unilever should
target.
Since Unilever wants to reach children and parents,
another necessary demographic segmentation strategy is to separate the female
population from males, and families from single households. Age information is
vital to find the greatest areas in the population with children, although
census data alone will contain inaccuracies as only 72 percent of children are registered
with the government (The World Bank, 2016). Occupational information will allow
Unilever to locate professionals in education and prenatal care to target
educational materials too
Geographic
Segmentation
Geographic segmentation strategies locate the individuals
within India that can benefit the most from the handwashing campaign. According
to the 2012 World Bank country snapshot, 80 percent of India’s poor population
lives in rural areas, which could indicate decreased access to clean water. The
greatest percentage of poor residents live small villages, large villages, and
small towns (The World Bank, 2016). Geographically, Unilever should target the
more rural regions in India.
Psychographic
Segmentation
Psychographic segmentation groups people with similar
values, attitudes, and lifestyles. This segmentation strategy helps Unilever
find those consumers who have similar backgrounds, routines, and goals. For
example, Forty-three percent of Indians who belong to tribes also live in
poverty (The World Bank, 2016). While psychographic data by itself is too
complex for this campaign, it is likely that many divisions and communities
within each region has similar commonalities worth considering.
Behavioral
Segmentation
Behavioral segmentation splits the population according
to purchasing and usage habits. Behavioral segmentation analyzes buying trends
to determine which consumers range from brand loyalists, to occasional buyers,
or non-users. Unilever will use behavioral segmentation to target non-users,
light-users, those who unaware of the product, and those who are receptive to
use and purchase the product (Weigold & Arens, 2018).
Unilever’s
Strategy in the United States
In 2004, Dove began the “Campaign
for Real Beauty” in response to a survey which polled women to gain an
understanding of their values (Skene, 2014). The release of the first
video advertisement had over 35 million YouTube views within the first 2 weeks
(Aacker, 2017). With this understanding of its target segment, Dove planned a
campaign that would captivate that segment. Dove gained a brand-identity
synonymous with body positivity and saw a sales increase from two-and-a-half
billion dollars to four billion dollars (Skene, 2014).
Unilever
Dove’s Segmentation Strategy
The Unilever Dove Beauty
campaign in the United States, uses primarily demographic, and psychographic
strategies to target different segments. Since the company wants to target
women of all ages, the main strategy is to separate females from males in the
population. Unilever’s message is empowering for women to accept themselves and
embrace each woman’s uniqueness. Psychographically, Unilever targets women with
similar values of feminism and body-positivity.
Product Life Cycle Curve
There are four stages of the product
life cycle: introduction, growth, maturity, and decline. Every product
introduced into the market progresses through the four phases. Understanding
which stage a product is currently in allows a company to plan which marketing
mix to use and which segment to direct it to (Weigold & Arens, 2018).
Unilever’s soap products are in the maturity stage. In the maturity stage, the
market has many competitors, and a company’s share of consumers diminishes as
consumers are divided across multiple brands. At this stage, a company will
increase promotion and segmentation efforts, as only strong companies withstand
the competition (Weigold & Arens, 2018). Unilever’s expansion into India is
indicative of this fight for market share. Dove’s body positivity positioning
reflects a maturity period as well.
Product Marketing Mix
Strategy
One tactic a company uses in a
competitive market is branding. Unilever has always promoted the moisturizing
aspect of their soap, but there are not many perceptible differences.
Therefore, Unilever sets its products apart from the competition through
branding. In India, consumers associate Lifebuoy with cleanliness and health.
In the United States, the Dove brand is nearly synonymous with body-positivity.
Unilever’s
Advertisements
Figure 1. Help Children
Reach 5
(Cause Marketing.com,
n.d.).
Figure 2:
Dove Beauty
(Heiser,
2016).
The
Creative Pyramid
The creative pyramid applies the
advertising pyramid to advertising formatting. The creative pyramid works
hand-in-hand with the way that people learn new information, so an advertiser
understands the best way to position words and images for receivers to encode
the message quickly and clearly (Weigold & Arens, 2018).The first step is
to grab attention. The headline and image grab attention and are usually placed
in the top of the advertising space as the main focal point (Weigold &
Arens, 2018). The next step is to generate interest, which may be done with a
catchy tagline or question placed in the subhead. To establish credibility, the
third step involves including facts or studies supporting the claim or issue
addressed in the ad. The fourth step is to explain why the product is desirable
to the consumer. Lastly, the contact information is added such as website,
store address, or company phone number is included to direct consumers where to
go to act (Weigold & Arens, 2018).
In Unilever’s Lifebuoy
magazine ad (Figure 1), the tagline “Lifebuoy 5 times a day” fans
outward in the right upper corner. The red color matches the Lifebuoy logo and
grabs consumers’ attention. To establish credibility, the third step involves
including facts or studies supporting the claim or issue addressed in the ad.
In the small print under the image, the lab test results are listed. The fourth
step is to explain why the product is desirable to the consumer which reduction
of germs is also listed in the fine print. Lastly, the contact information is
added such as website, store address, or company phone number is included to
direct consumers where to go to act (Weigold & Arens, 2018). The only
contact information on this advertisement is Unilever’s logo (Cause Marketing.com,
n.d.).
In the Dove Beauty magazine ad
(Figure 2), the woman’s glowing face grabs one’s attention. The ad features the
white and blue elements of color featured in the brand’s logo. The element of
interest is the copy, “Discover a daily beauty treatment for radiant skin” in
the upper right hand corner. The credibility element lies beneath the tagline
that explains how Dove’s ingredients are different with a dermatologist’s seal
of recommendation. In this same area the advertisement lists the benefits of
using the product. Lastly, consumers are directed to Dove.com for more
information (Heiser, 2016).
Pros and
Cons of Print Media
Print media has several advantages.
In magazine advertising specifically, there are various options for
advertisements such as colors, sizes, and layouts. Both magazines and newspapers have more
permanence than other advertising medium since both may be passed along to
others (Weigold & Arens, 2018). However, monthly or quarterly magazines
have a longer life span. Advertisers can include more product details in print
than other media because consumers have more time to read and process the
information (Weigold & Arens, 2018). As far as target segmentation
differences between print media, magazines are able to reach consumers with
selective interests, while newspapers can reach members geographically on a
city, state, or national level. Print advertisement is appropriate for both
countries. The Lifebuoy campaign targets poorer residents, who may not have
access to more modern medium such as television or internet. Unilever features
its Dove campaign advertisements in women’s magazines which is an excellent way
to reach its broad target segment.
Cultural and Ethical
Considerations
It is important for companies to
approach advertising in a culturally sensitive way and avoid stereotypes and
misappropriation. There are many incorrect stereotypes that advertisers could
have inserted into the ad regarding the Indian culture or a woman’s gender
roles. The advertisements for Lifebuoy and Dove both approach the different
cultures appropriately. In fact, Unilever could use either advertisement in
either country without violating any legal or ethical guidelines, however, the
message will be better received for each intended audience. While people need
to wash their hands in general, and the United States is not excluded, the Lifebuoy
campaign has saved children’s lives in India. And while many women in India may
desire to have moisturized skin with their soap product, it is definitely something
Americans have, for the most part, more time and resources to consider when
purchasing a product.
Additional Suggestions
Unilever’s Lifebuoy campaign has been a success. Many
soap companies endorse Global Handwashing Day on October 15; however, Unilever
in Dubai set a Guinness Book World Record when people in 72 countries
participated in their scheduled event in 2012 (Aaker, 2016). Unilever
reportedly reached the goal of one billion hand washers by 2018, which is two
years ahead of schedule (Unilever, n.d.). While child mortality rates continue
to decrease, it is unknown until 2025 if UNICEF will reach their goal to reduce
child mortality to zero.
As a result of the Dove Beauty
campaign, 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. The campaign is
successful because the company advertised and met consumers’ needs by addressing
current social issues (Aaker, 2017).
To make each campaign more effective
in each county and see a return on investment, the campaign should extend the
furthest reach in each country. The campaign should use additional platforms
such as bill board ads, transportation, and newspapers to further the reach and
frequency. These two elements will increase Unilever’s handwashing efforts in
India and increase brand awareness in the United States. For continuity,
Unilever may want to increase campaign efforts during peak seasons of illness. However,
since each campaign has already had measurable results, they both prove to be
effective and efficient and may not require any additional changes.
References
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