Last Updated 15 Apr 2020

Marketing and Dove

Category Microeconomics
Essay type Research
Words 612 (2 pages)
Views 306

Pricing Strategy 2. 2. 1Factors affecting pricing decisions (Types of market) The internal factor that affects the pricing decision of Dove is based on marketing strategy, objectives and mix. The Dove Company mostly is working on the market of women’s personal care. Dove has a large range of products from soap to hair shampoo. The company strategy and objective is to have a high level of segmentation to answer to the many needs of the women’s personal care market and to widening stereotype view of beauty in younger generation, pre-teen and teenager girls.

Besides, the market mix strategy is the price decisions must be coordinates with product design, distribution, and promotion decisions to form a consistent and effective marketing program. Pricing Strategy of Dove hair shampoo is largely determined by the decisions on Market Positioning of product differentiation. So, Dove has been positioned as a product fulfilling the needs of high end consumer class. Dove Company is constantly upgrading time to time to meet the customer needs, such as Dove Straight & Silky Therapy, Daily Shine Therapy, Dandruff Therapy, and Intense Damage Therapy with the affordable price.

In addition, the external factor that affects the pricing decision of Dove is based on the market and demand. Dove Company is under the Monopolistic Competition market because there have a lot of buyers and sellers of differentiated products. Dove Company also is the product differentiation that are selling different product for the same purpose such as Pantene, Sunsilk , Rejoice, and so on. Besides, Dove is also price maker and spends a lot of money in advertisements to convince their customers. Last but not least is the competitor’s strategies and price.

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The competitors of Dove are Sunsilk, Rejoice, Pantene, L’Oreal and so on. According our survey that doing at Kampar area, the competitors are offering the lower price if compare to Dove. For example, Sunsilk 700ml is offering their shampoo product at RM17. 50 and Rejoice is offering at RM21. 50 while Dove is offering the same product at RM25. 90. So, it has been influenced the customers who is price sensitivity. Furthermore, the customer purchasing power, government regulation, economic conditions also becomes the external factor affecting the prices. . 2. 2New Product Pricing Strategy Dove is using the Market Penetration for the New Product Pricing Strategies because they have many competitors like Sunsilk, Pantene, Rejoice and so on to win the market share. When Dove Company introduces the new product to the market, it will set a low initial price in order for the brand to “penetrate” the market quickly and deeply. For example, when the 10th anniversary, Dove will give the promotion by reducing the price and give them discount and offer the new product sample to give the customer trying.

As compare above, Dove is offering a lower price from range RM 18 until RM 22. 50 and same volume compare (700 ml) to Sunsilk in the shampoo market. For increased market penetration, Dove has launching the ‘Campaign for Real Beauty’ where the representative will move to the market segments and will do free sampling. Dove’s revolutionary campaign was for the firming lotion which features women of all shapes and sizes thus breaking down the stereotypic definition of beauty – tall, thin and being fair.

Their ads have created a ripple in the market with their campaign successfully catching the fancy of both the industry and consumers as being something different. Earlier, the ads used celebrities to promote their beauty products. They are also not for the super skinny models. The Dove ads challenge the traditional concept of beauty. This make the customer realize that Dove cares and penetration will be achieved in newly selected market segments.

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