Dove Case Study
Mindy Dauber
MKT 9703 Marketing Management : Spring 2012 Sec QMWA
The Dove brand has been a household name since 1955 with its promise of “moisturizer cream” and a product that held up to that promise. The dove bar helped dove grow a consumer base that not only had product loyalty, but after a few unsuccessful product lines, paved the way for brand loyalty that allowed Dove to become a 2 billion dollar corporation. Every company, especially one with the resources like Dove, wants to successfully expand to their full capacity. Dove had the ability to expand because they had a “moisturizing” promise that can lead to many products and product lines. Dove decided to wait 10 years before it introduced its dishwashing product. As stated in the article, this was considered a disappointment even though it is still around today. Dove had a winning product. The soap had such a large market share that moving into the detergent market may have seem logical but ultimately was not able to pierce the Palmolive market. By lowering the prices, Dove put a “strain” on their profits. This taught Dove that their winning product was enough to sustain their profitability and used the classic idea of “if its not broken don’t fix it”. Furthermore, future extensions build on successful extensions. Dove had its original success but failed at its first extension. They kept the product, which caused even more hindrance to any further extension because it hurt the consumer opinion on the brand in general. Due to a patent, Dove was able to keep their market share with their soap bar until the patent ran out. P&G, Dove’s competitor, was now able to create competing products and seize a large portion of the market share that Dove once possessed. Competition, even though difficult at times, can be incredibly helpful in providing pressure to a company to expand. Dove was thrown into a situation where they needed to create a product that rivaled the Olay body wash. P&G was able to use the
MKT 9703 Marketing Management : Spring 2012 Sec QMWA
The Dove brand has been a household name since 1955 with its promise of “moisturizer cream” and a product that held up to that promise. The dove bar helped dove grow a consumer base that not only had product loyalty, but after a few unsuccessful product lines, paved the way for brand loyalty that allowed Dove to become a 2 billion dollar corporation. Every company, especially one with the resources like Dove, wants to successfully expand to their full capacity. Dove had the ability to expand because they had a “moisturizing” promise that can lead to many products and product lines. Dove decided to wait 10 years before it introduced its dishwashing product. As stated in the article, this was considered a disappointment even though it is still around today. Dove had a winning product. The soap had such a large market share that moving into the detergent market may have seem logical but ultimately was not able to pierce the Palmolive market. By lowering the prices, Dove put a “strain” on their profits. This taught Dove that their winning product was enough to sustain their profitability and used the classic idea of “if its not broken don’t fix it”. Furthermore, future extensions build on successful extensions. Dove had its original success but failed at its first extension. They kept the product, which caused even more hindrance to any further extension because it hurt the consumer opinion on the brand in general. Due to a patent, Dove was able to keep their market share with their soap bar until the patent ran out. P&G, Dove’s competitor, was now able to create competing products and seize a large portion of the market share that Dove once possessed. Competition, even though difficult at times, can be incredibly helpful in providing pressure to a company to expand. Dove was thrown into a situation where they needed to create a product that rivaled the Olay body wash. P&G was able to use the