Five Environmental Forces in Hong Kong Affecting Dove’s Marketing Strategies Essay
Five Environmental Forces in Hong Kong Affecting Dove’s Marketing Strategies In 2001, Dove introduced its hair care products to Hong Kong’s market1. According to The Marketing Information Company, ACNielsen’s retailing survey report, Dove was ranked number one in the sale volume of personal care product including shampoo, body wash, soap and face care products from 2001 to 2003 in Hong Kong. 2 This survey report proves that Dove has adopted successful marketing strategies in the Hong Kong personal care market.
In this essay, I will analyse the how Dove shampoo satisfies Hong Kong consumers’ needs and wants, recognize the influence of environmental forces on the marketing strategies adopted by Dove and how changes in economic environment affect Dove to target the markets.
Consumers’ Needs and Wants “Target market is one or more specific group of potential customers toward which an organization directs its marketing program. ”3 The target customers of Dove shampoo are women between 20 to 50 years old. Their needs and wants are met by Dove.
Need represents basic necessities such as food, clothing and shelter. It is very important for people. Shampoo is a basic necessity for human . We need shampoo to help us remove oils, dirt, skin particles, environmental pollutants and other contaminant particles that gradually build up in hair so as to make our hair clean and be manageable5. “A want is a need that is shaped by a person’s knowledge, culture and personality. ”6Consumers want the shampoo can match their hair type and improve their quality of the hair.
They want their hair become smooth, soft, more manageable, easy to detangle and full of radiance right down to the tips after using the shampoo. Dove has introduced the shampoo containing 1/4 moisturizing cream and different formulas to satisfy consumers’ wants and needs. There are totally 3 upgraded series in order to meet different hair types. 8 Moreover, Dove can meet consumers’ needs and wants in the four seasons. For example, in summer, Dove shampoo contains controlling oil formula to make your hair feel fresh 9. In winter, Dove shampoo can replenish water to your hair under the dry weather. 10 Five Environmental Forces in Hong Kong Affecting Dove’s Marketing Strategies Five Environmental Forces include social, economic, technological, competitive and regulatory forces. 1 “Social Forces of the environment include the demographic characteristics of the populations and its values. ” 12Demographics is the physical characteristics of a population such as gender, age, ethnicity, income and occupation13. In Hong Kong, about 95% of the population were of Chinese ethnicity . 14 Thus, Dove established an Asia Research Centre which aims as investigating and analysing the hair types of Asian like Hong Kong people, Japanese, Thai, …15 Basing on the researches’ results, they can introduce new formula of shampoo which are tailor-made for Asian market.
Culture, includes the set of values, ideas, and attitudes that are learned and shared among the member of a group, is very important because the elements of the culture will affect the consumer buying behaviors. 16 Hong Kong people like trying new things, so Dove Company has continued developing new products. 17 For example, it introduced a shampoo with foam giving out when pressing the container. This attracts the targeted consumers to try this new type of shampoo. 18Coloring, straightening and permanent curling hairstyle is very common in Hong Kong19.
People like changing their hairstyle very often. However, all these will damage their hair. Dove shampoo containing 1/4 moisturizing cream can hydrated and repair the damaged hair. 20 The second component is the economic force, which pertains to the income, expenditures and the resources that affect the cost of running a business or household. 21Hong Kong is in inflation. 22 Economy is vigorous. Marketers are willing to spend more money on advertisements. Dove has increased its advertisements on TV, newspapers and magazines.
Besides, Dove has held a public T-shirt design competition to increase consumers’ cognition to its brand. 23 Furthermore, Dove repackaged the products to make the consumers feel easier to recognize. 24 The technology force refers to inventions or innovations from applied science or engineering research. 25Advanced technology has an apparent effect on marketing. In the past, consumers only focused on the cost and the basic cleaning function of the shampoo. Nowadays, as the improvement of technology, they focus on quality and special hair care function provided by shampoos.
Hence, Dove has developed news product continuously. For example, Dove adopted the new technology to develop “Delicate Care Shampoo” containing control oil factor—Thiosome. This can control the oil secretion and moisten the hair. 26 Dove uses the Internet to promote its products and activities like “Campaign for Real Beauty” and T-shirt design competition holding currently. In the website, it provides some games and music for consumers to download in order to increase its brand cognition and sales volume. 27It uses the Extranet to share information with supplies, distributors and other partners. Competition refers to the alternative firms that could provide a product to satisfy a specific market’s need”28. Shampoo industry is oligopoly, which is a common industry structure with a few companies control the majority of industry sales. 29In Hong Kong, there are six major companies which are Unilever, P&G, Kao, Alberto Culver, Colgate –Palmolive and Johnson & Johnson to control this market.
As the competition is keen in the shampoo market, Dove needs to have different marketing strategies to increase its sales volume. The last component is regulatory force. “Regulations state and federal law place on business”30. Trademarks are intended to protect both the firm selling a trademarked product and the consumer buying it”31. A bird flying above the blue word “DOVE” is the trademark of Dove. 32 The Changes in Economic Environment in Hong Kong in the Next Decade China is developing rapidly and becoming stronger. As Hong Kong and China has close relationship, this will help the growth of Hong Kong economy. Therefore, the expectation of economic environment in Hong Kong in next decade will have a good development and positive growth. 33As a result, the living standard of people will be improved.
Besides, the working population being managers, administrators, professionals and associate professionals keep on increasing34. Hence, the Company should target the consumers who are better off career women between 30 to 50 years old. Dove could introduce high-class shampoo to meet this segment. Conclusion Dove shampoo satisfies both needs and wants to the targeted consumer. Besides, it has difference marketing strategies to meet the five environment forces in Hong Kong. Forecasting the future, Dove can target a new segment because of superior economic environment.