Running Head: Dove Shampoo in Vietnam Market 1
Running Head: Dove Shampoo in Vietnam Market 1
Running Head: Dove Shampoo in Vietnam Market 1
Ta Le Thuy Duong, Du Phuc My Kim, Nguyen Trung Son, and Do Hong Phuong Uyen
Table of Contents
Introduction ................................................................................................................................................... 3
Methodology ................................................................................................................................................. 4
Internal analysis ............................................................................................................................................ 5
Company Unilever Vietnam .................................................................................................................. 5
Unilever Category Overview .................................................................................................................... 5
History of Dove Vietnam .......................................................................................................................... 6
Business Strategy and Big Objective ........................................................................................................ 6
Business Model ......................................................................................................................................... 7
Company Insight ....................................................................................................................................... 8
External Analysis .......................................................................................................................................... 9
Segment Insight ........................................................................................................................................ 9
Customer Insight ..................................................................................................................................... 11
Competitors ............................................................................................................................................. 13
Macro Environmental Analysis (PEST Analysis)....................................................................................... 15
Political ................................................................................................................................................... 15
Economic ................................................................................................................................................ 15
Social-Cultural ........................................................................................................................................ 16
Technological.......................................................................................................................................... 16
Internet Connection................................................................................................................................. 17
SWOT Analysis .......................................................................................................................................... 17
Strengths ................................................................................................................................................. 17
Weakness ................................................................................................................................................ 18
Opportunity ............................................................................................................................................. 19
Threat ...................................................................................................................................................... 22
Assessing Market Opportunity ................................................................................................................... 23
Positioning .................................................................................................................................................. 25
Marketing objectives ................................................................................................................................... 26
References ................................................................................................................................................... 27
Appendix ..................................................................................................................................................... 30
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Introduction
Recently, the hair care industry in Vietnam has consistently grown. This has created more
intense competition within the market, in which the producers utilize various ways to attain more
customers. Looking at the vast growth in this country, most of hair care companies are more
serious and competitive in developing and expanding their products in order to gain the huge
profit. From this situation, Dove Vietnam are facing the challenge of being differentiate itself in
the marketplace.
With the aim of holding the sustainable growth as well as the top position in Vietnam
FMCG industry, a team of marketing department from Dove Vietnam selects Shampoo market to
In this report, the marketing objectives are set through the analysis of 4 main parts,
including Internal Analysis, External Analysis, Macro Environmental Analysis, and SWOT
Analysis. Meanwhile, the Market insight in the second part, which includes Consumer Insight,
Competitor Insight, Company Insight and Segmentation Insight, is reported from both primary
and secondary data. In the SWOT analysis, it shows the potential opportunities for an innovation
of shampoo in Vietnam market, instead of technically doing a plan to increase sales or change
Methodology
This project utilizes both primary and secondary data through critical and logical analysis
about Doves haircare market, specifically Shampoo product line. After that, the last part states
Secondary Data
Three quarters of this report is collected as well as selected from lecture books, literature
reports, former research, web articles, academic websites and Doves official website. Through
continuously gathering and comparing the data collected, Doves haircare market is deeply
Primary Data
conducted to collect primary data from online survey questionnaire hosted by Google Form.
Questionnaire includes various types of questions, namely closedended questions and opened-
ended questions. In the situation of financial and time constraints, there are some limitation, such
as results accuracy.
In the survey, the target respondent is women, who are above 18 years old, living and/or
working in central districts of Ho Chi Minh City, regardless of their career. Sampling techniques
of this research are nonprobability that each population element is selected based on our team
relationship. In particular, they are readily available from Facebook, so this is convenience
sampling. After several days, 172 respondents filled their survey but only 167 respondents usable
Internal analysis
Unilever is a Fast moving consumer good (FMCG) company which own a broad range of
product portfolio as well as hold the sustainable position in Vietnam. According to Unilever
Vietnam Employee Handbook (n.d), in 1995, Unilever started the Joint Venture Lever
Vietnam with a capital investment of $ 56 million. In the next 2 years, Unilever continued to
establish Unilever Best foods and Elida P/S with a total investment of US $ 32.5 billion and
Unilever Vietnams growth rate reaches 32% annually for nearly 10 years. In January 2004,
Unilever Best foods and Elida P/S were incorporated. After that, Unilever Vietnam currently has
two companies, including Lever Vietnam Joint Venture with total investment capital takes 64,9
million USD located in Ha Noi, HCM city and Cn Th with 2 main Categories: Household Care
and Personal Care including Hair Care and Skin Care. Lever Vietnam Joint Venture takes
account for these main brands: Omo, Viso, Surf, Comfort, Sunlight, Vim, Lux, Dove, Sunsilk,
Ponds, Hazeline, Clear, Lifebuoy. Secondly, Unilever Best Foods and Elide P/S takes the total
investment capital of 54.6 million USD, located in C Chi Industrial Zone, HCM city. There are
2 main categories: Personal Care and Food Solution including P/S, Close-up, Lipton, Knorr and
Walls.
Unilever is the leading manufacturer as well as distributor of food, home and personal
care products. The company markets these products under 400 brands, including Axe, Ben &
Jerry's, Blue Band, Dove, Flora, Hellmann's, Knorr, Lipton, Lux/ Radox, Surf, Rexona, Wish-
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Bone, Sunsilk, Rama, OMO, Toni & Guy Pureit, Suave and TRESemme. The company classifies
its business operations into four reportable segments: Foods, Refreshment, Personal Care, and
Home Care.
In Personal Care segment, the company offers skincare and hair care products,
deodorants and oral care products. Unilever offers these products under Dove, Lux, Rexona,
Sunsilk, Axe/Lynx, Ponds, Clear, Lifebuoy, Suave and Vaseline brands. Its oral care brands
In 1996, Dove firstly launched Dove Cream Bar and Shower Gel in Vietnam. In 2000,
Dove air conditioners was also launched after that and till 2004, Vietnam Unilever makes the
release of Dove shampoo, hair conditioner and they launched the campaign for real beauty and
innovation one year later 2005. The hair care line came out, marking a bold step for Dove after
years of development with the line of body care, they have 4 main hair care products until now
Sustainable Living Plan in Vietnam - USLP, 2010). According to this plan, USLP is the
blueprint for sustainable growth, which helps drive profitable growth, reduce costs and foster
innovation. In addition, Unilevers big strategy includes 3 sub-targets, namely Business Growth,
Business Model
According to Unilever Annual Report (2016), there are totally 6 steps in the business
First of all, it started with Consumer Insight. In Unilever, there is CMI Group, which
stands for the Consumer and Market Insight Group. All members work together, explore the data
through various means of research, including focus groups, quantitative research and social
media dialogue. Therefore, CMI Group is well-known as the foundation of brand innovation.
Next is Collaboration, the critical elements for business success. USLP is called as a Partner to
Win commitment which encourage the innovation and collaboration with Suppliers. The third
research and development, employing approximately 6,000 experts to drive innovation, uses
insights and technologies to deliver brand-led benefits which meet the latest trends (Unilever
Annual Report (2016). Sourcing, Manufacturing and Logistics is the fourth step of Unilevers
business model. In Unilever Annual Report and Accounts published in 2016, they presented a
strong system with high quality, world-class manufacturing factories, operate a network of
around 400 warehouses globally coordinated by a central system of control towers that improve
customer service, cut costs and reduce emissions. Following step is the Marketing. In 2016,
Unilever Marketing Strategy strongly focus on Digital world which can helps them map the
consumers purchase journey and cut exactly consumer segmentation. Moreover, sustainability is
included in marketing strategy. Unilever reported (2016) that all of top brands be Sustainable
Living brands, which combine a strong purpose delivering a social or environmental benefit,
with products contributing to at least one of our USLP goals. Final step is Sales. In this step,
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Unilever focus on these following actions: establish a close-knit and long-lasting relationship
with retailers; and enhance the effectively accessibility of products through systems of physical
stores. Moreover, Perfect Store Program, Strategic Framework are developed to win all the
shoppers on every occasion and focus more on convenient stores that 33 million increasing of
Company Insight
This is the inclusion of the strength insight the company as well as the root of every
decision, and also included marketing decision. According to Unilever N.V Report (n.d), there
The first strength is Wide Territorial Presence. This strength helps Unilever reduce
their business risk that they are not dependent on a specific market only, instead of worldwide
market including 3 main markets: Asia/AMET/RUB countries, Americas, and Europe. Presence
of more than 300 manufactures around the countries, six main R&D centers in the US, the UK,
the Netherlands, India and China and perfect distribution system which minimizes the risk of
business significantly. Strong Market Position is the next strength of Unilever. Statistically,
Unilever is a leader of FMCG, and stay strong in global market which owns broad lines of
manufactures. This key strong position has attracted many suppliers, retailers and have a
sustainable relationship with Unilever. Thirdly, Broad Portfolio creates opportunities to meet a
variety of needs in different segmentation. For example, there are many range of products by
which Personal Care takes highest account of percent revenue (24.2%) compared to Food,
refreshment and homecare category. The fourth strength is the location of R&D Center, USA
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respectively. Impressive R&D methodology and focus helps Unilever increase their
competitiveness in the marketplace. In 2015, Unilever launch their new R&D technology,
oxyfusion technology. This new range of product is formulated with Oxyfusion Technology to
give hair both nourishment and volume without weighing hair down which is also the inner
External Analysis
Segment Insight
The favorable economic condition has become a fortune for the hair care industry.
Michael (2013) stated. Therefore, the market size of hair care industry are gradually increase,
that is paralleled with the complex and exigent in needs of customers. Additionally, the hair care
industry itself will be included numerous sub-industries, and each sub-industry can be a
which illustrated the same needs, they will have their own expectation for a hair care product. It
is obvious that most of hair care products builds the positive self-esteem and inspires consumers
to reach their full potential. Therefore, this market should be carefully segmented.
In this paper, the hair care market is segmented from Doves already targeted segment
that is all age Vietnamese women in upper-middle class. From that, one more criteria to continue
to divide this market is woman hair performance. This criteria reflect customers hair situation
when they perceive at the time making decision to buy. Nowadays, according to the survey and
other reports, hair performance is very important to woman, because it directly trigger
customers need to choose a hair care product. Moreover, it show the feeling of customers about
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their hair. Due to these beliefs, customers will choose their hair care products that brings them
To come up with the result of segmentation, we had conducted survey about the shampoo
consumption habits of woman in Ho Chi Minh City, called Kho st v thi quen mua du gi
ca n gii TP.HCM. It started from 2nd August, 2017 to 10th August, 2017 with sample of
172 women who above 18 in Ho Chi Minh City. Based on the result that we collected from the
survey, we separate the market into 3 groups of hair performance, namely treatment remedy,
Group 1 - Treatment Remedy (33.1% ~ 57/172 interviewees): Customer have serious hair
problems. These therapeutic hair are commonly known as dandruff, itchy, dry scalp,
uncontrollable fallen, and other related symptoms. These problems strongly affect their daily life
and cause nervous, lack of confident in public. Customers actually needs such an effective
Group 2 Natural Therapy (49.5% ~ 85/172 interviewees): Customer can have just a
light hair problem. The hair damage rate is quite moderate or even less. Moreover, it dont affect
their daily life so much. However, it prevent them from having healthy, beautiful and shiny hair.
The most well-known performance of hair in this case is dryness. Its due to the problems deeply
created insight the texture of hair, broken or lack of nutritive. For this group, customers need the
soothing nourish improvement to rehabilitate as well as humidity provision. On the other hand,
these hair situations might not bother customers so much, however, they are afraid of being
worse or are not satisfied the current hair, they want more in order to feel happy and be proud.
Group 3 Professional expert (17.4% ~ 30/172 interviewees): Woman in this group dont
actually have any hair problems, they are nearly closed to what they are expecting. However,
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they need more total care and maintain their hair beauty. At this level, they need the unique
blend of nutritive ingredients to leave hair soft and manageable, such as Nourishing Oil Care,
Pro-Keratin, etc. This is a perfect products for those who would like to keep an ideal hair
Customer Insight
One of the basically and common purposes of almost companies is serving the targeted
customers better than others. There is nothing to argue if company can meet all customers needs
and satisfy all of them. It is such an unrealistic story. Practically, no one is exactly the same with
others. According to Duggal (2015), he stated that Customers in present times want new and
better solutions to their changing needs. They are not satisfied with mere a good or service, they
want more out a product, they want their emotions to be satisfied. In order to meet the needs of
customers, it is compulsory for every company to deeply understand customer insight. There are
various ways to analyze the insight of customer. And in this part, the insight of women in all age
about Shampoo in Vietnam will be analyzed by 2 tools, including Decision Making Unit analysis
These following analysis are reported from total 3 segments, namely Treatment Remedy,
Natural Therapy, and Professional Expert. All of detailed information are in the Appendix.
Therefore, for any change in the marketplace as well as the environmental forces,
company should promptly perceived whether to take action to redefine the customers needs or
not. Moreover, there is no way to perfectly fit with customers needs; so it is necessary to
seeking information about whom can influence on the customers decision making process, who
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are they, why they do that, what are their roles, and in which scales that will affect, etc., based on
In almost segments, woman the first identity targeted customer, which can be one of
these three roles: user, payer and final decider and stand for a high relative influence. The typical
agenda are about quality of the shampoo (such as clear, not itchy, less chemical indigents, shiny
hairs according to their hair performance); reasonable price; aroma nice scent; famous brand
and convenience (easy to buy, various sizes, use in urgent issue, etc.). The next positions are
friends and family the influencer as well as the payer which relatively account for low or
moderate influence. The value of shampoo that friends and family want to give includes the
sharing of quality, price and care. Moreover, hot face, bloggers and celebrities are also the
influencer at the low or moderate rate to PR or sharing. The last one is seller. The only one
significant point of seller in comparison with others in general is its pressure points. It means that
it is compulsory for the seller to persuade customers to buy and increase profit. In reality, it
never be the simple story of individually seller and user, there are many influencers involved in
the process of decision to buy of targeted customers. The most significant difference among
these segments is the appearance of Doctors in the process of decision to buy in the segment
Treatment Remedy. It means that one company cannot only focus on its end-users. Therefore,
from Dove Vietnams point of view, Dove should intelligently and proactively take advantage to
According to the analysis of need landscape, it is not reasonable to assume that all of
customers need and want the same thing. Because everyone will have their personal needs as
well as they find different elements to satisfy their needs. Therefore, it is not easy to realize what
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all of women need in the shampoo, thats why the marketers should clarify and segment woman
After analyzing each segment based on the need landscape analysis, there are some
potential breakthrough. In the Natural Therapy segment, most of shampoos are gradually fit
womens needs. However, in this segment, woman are finding the daily convenience shampoo
because their demand in keeping the performance of hair for specific occasion or urgent issue.
Moreover, they prioritize not only the cleanness, but also the nutrition. Therefore, the innovation
of a new shampoo which is the combination of 2 elements will be able to satisfy their needs and
Competitors
Q&Me Vietnamese online market research agency, the top 3 most popular brands in the women
haircare are belongs to Unilever, including Clear 22%, Sunsilk 18% and Dove 15%. The
following in that list are Pantene, Head & Shoulder from P&G.
Procter & Gamble (P&G) is the world's largest consumer processed goods company with
revenues of $80 billion in 2014, from a portfolio of about 200 brands. While Unilever is the
world's second largest CPG company with revenues of $57 billion from over 400 brands. On the
other hand, Pantene - a brand of P&G, first entered into Vietnam in the same year of Unilever
1995. These two companies compete each other directly in every segments with quite similar
strategy in pricing, promotion, products and places. And in hair care industry, Pantene presented
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in the same three segment with Dove: Treatment Remedy, Natural Therapy and Professional
Expert.
With the same line Nutritive Solution on the every package of shampoo, Dove position
itself as a hair damage repair brand, which compete directly with Pantene Pro V. Although
Dove Vietnam is the most recognized brand (Q&Me), it is not the most prefer to use brand.
According to Vinamarket research, when being asked Among brands you know, what do you
use as you main brand? Pantene is commonly used by more of respondents, 20.9% in
In Treatment Remedy segment, Pantene launches Pantene Pro-V Total Damage Care
product line to compete with Dove Intense Repair and Pantene Hair Fall Control to compete with
Dove hair Fall Rescue. In Natural Therapy segment, Dove has Dove Oxygen Moisture while
Pantene has Pantene Daily Moisture Repair. For Professional Expert segment where women do
not actually have any hair problems, Pantene and Dove both launch products which offer to
maintain great hair condition and total care. As Pantene has their Silky Smooth Care product line
In addition, in pricing strategy, price of Dove Vietnam is a little bit higher than its direct
current competitor Pantene Vietnam. For example, a bottle of Pantene Pro-V Total Damage
Care Shampoo 670g costs 119,000 VND (on adayroi.com) while a bottle of Dove Intense Repair
Shampoo 650g bottle costs 123,000 VND (on adayroi.com). They both target in Treatment
Remedy segment. Moreover, one Dove Hair Fall Rescue shampoo 900g bottle costs 154,000
VND which is 1,500VND higher than Pantene Hair Fall Control shampoo 950g bottle. Both of
them set price to illuminate the brand image as high quality but still affordable.
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Besides Pantene, there are some indirect competitors like Thai Duong Sao Thai
Duong Inc, Double Rich LG Inc, etc Their size and market share is relatively small compare to
Dove Unilever and the constrain time of this report, we do not take them into consideration.
Political
Vietnam is a one-party state ruled by the Communist Party of Vietnam (CPV) which
provides strategic direction and decides all major policy issues. As a further matters, Vietnam is
one of the more politically stable countries in South East Asia. Internal conflict in Vietnam is
rare although recently there have been a small number of high-profile protests including in
ASEAN FTAs with China, Japan, India, the Republic of Korea, Australia and New Zealand, as
Economic
Vietnams shift from a centrally planned to a market economy has transformed the
country from one of the poorest in the world into a lower middle-income country. Vietnam now
is one of the most dynamic emerging countries in East Asia region. Worldbank. Moreover,
according to the World Banks (WB) Doing Business 2017, Vietnam is in the 82th (rank out of
190), which 9-level increase in overall compared with previous years. In Boston Consulting
Group report (2013), they stated that Vietnam has the fastest-growing middle class in South East
In addition, the data in World Bank has statically proved that the Vietnamese economics
has an tendency to grow. From 2013 to 2016, Vietnams GDP has reported to increase from
171.22 billion USD to 202 billion USD. Economic growth averaged 6.2% in recent years.
Furthermore, the government aims to achieve the growth of 6.5% in 2017. Since 1991,
Vietnams GDP per capita has increased by 350%, which leads Vietnam become the 2nd place in
growth rate.
Social-Cultural
Vietnam population is over 95 million. In reality, Vietnam is known as the 14th populous
country in the world, as well as the third populous country in Southeast Asia- just after Indonesia
and Philippines.
Vietnam is now in the demographic golden age. 25% of the population is aged between
10 and 24; the median age is around 29. There are roughly seven people of working age for each
When doing business in Vietnam, companies should beware of the fact that corrupt
practices are widespread in Vietnam. Anyone engaged in business in Vietnam may encounter,
and at the very least should prepare for, the challenges of corruption in one form or another.
(Gov.uk)
Technological
expected to reach $6.9 billion. Mobile data services own the major share (36.8 percent) of the
Viettel, Mobifone, and VNPT-Vinaphone, continue to dominate Vietnam telecom market with
over 90% shares. Meanwhile, Viettel is called as the largest player currently and estimated to be
at the same position through 2020. As of October 2016, the 4 operators had gained 4G licenses
Mobile Phone Networks. At present, there are six mobile operators in Vietnam; VNPT-
Vinaphone, Mobiphone, Viettel, Vietnammobile, Gtel, and SPT. Per Vietnams Ministry of
Information and Communications, last year there were 128 million subscribers of mobile phones,
of which 63 million were Viettel users, 34.6 million on Mobiphone, 20.5 million used VNPT-
Vinaphone, 5.9 million on Gtel, and 3.6 million are subscribers to SPT and Vietnam mobile.
(export.gov).
Internet Connection
Up to January 2017, the number of fixed broadband internet subscribers is over 9 million,
while the number of mobile broadband internet users via 3G network is greater than 5 times
expected to rise 9% for the next couple years based on the strong growth of applications, e-
SWOT Analysis
Strengths
There are many strengths of Dove in the Natural Therapy segment, which are almost
come from its reputation in years. First of all, the most noticeable strength of Dove shampoo in
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Vietnam market is the sterling reputation from Unilever the prestigious outstanding global
company. According to Unilever Vietnams report in 2015, 2016, Dove has been knowns as the
flagship in recognition of personal care category for many years. In addition, Dove has also been
inherited from the stable and massive national distribution network, which consist of
supermarkets, hypermarkets, markets, convenience stores, grocery stores and retail outlets
(About, websites). Dove promises its quality worldwide with the identical formulation of mild
detergent and moisturizing cream. Following the mission of Unilever To work to create a
better future everyday (Unilever, 2013), Dove keeps going to add more values to their products
through annually technology innovation, for instances, Micro Moisture, Dry Oil, Anti-Frizz Oil,
Keratin Repair Actives, and Oxyfusion Technology. Additionally, Dove has been holding its
expert position as a damage care brand in Vietnam market share. Moreover, up to now, there
are totally five factories of Unilever in Vietnam, including Ha Noi, Cu Chi, Thu Duc - Ho Chi
Minh City, and Can Tho. Therefore, Vietnamese are now paying less money for an international
Doves products.
Weakness
On the other hand, there are some remaining weaknesses of Dove Shampoo in Vietnam.
Although there are five Unilever manufacturers in Vietnam, the price is still higher than
estimated. The main reason is that there are some elements and/or ingredients that dont exist in
Vietnam, Unilever Vietnam still need to import them from foreign countries or through the
agents supporting. Moreover, customers claimed that in comparison among various shampoo
products in Vietnam market, Dove seemed rarely introduce new products through samples, or
real experience campaign. It is obviously that, the buyers or payers, who hold the final decision
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are more important than real consumers. For example, most of Vietnamese housewives tend to
buy what they used to try when they find the new shampoo because they concern whether they
will waste money or not. Therefore, despite of various strengths as being an international brand
Opportunity
for the new innovation of shampoo. It is included the current/ potential size of Vietnam market
for personal hair care products, the Vietnamese womans willingness to pay to satisfy their
demand in convenient of shampooing hair, the awareness in personal care as well as personal
image which are reflected by the hair performance, and the urgent demand of such a dry-spray
shampoo the combination of fast clearness nutrition in the modern life. These opportunities
Firstly, Vietnam market is proving to be the potential market for the development of
FMCG. According to the Nielsen report of FMCG in Vietnam market (April, 2017), there is a
significant increase in the growth of FMCG, 9.6% in generally the highest growth rate in the
last 3 years. Meanwhile, it is the good news for personal care products which reach a peak at
10.512% in the nominal value growth in this quarter. Moreover, based on the report, the rural
sector becomes more potential. Mr. Nguyen Anh Dung, Director, Retail Measurement Services,
Nielsen Vietnam, indicated that Despite the slowdown in the rural sector due to agricultural
challenges seen last year, this sector bounced back strongly with significant recovery across
super categories Over 60% of Vietnams population live in the rural areas and there are
excellent opportunities for companies in this sector. Rural consumers have rising incomes and
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greater access to product information than ever before through the internet and their uptake of
smartphones. Manufacturers that have access to the latest knowledge and information on rural
trends and consumer demands will be best placed to capture growth opportunities. Furthermore,
based on the graph of Vietnam leads convenience store charge post from Bangkok Post on April
2017 about the compound annual growth rate (CARG), Vietnam is predicted to dramatically
increase to 37.4% in the next four years, and become the leader of Asias grocery market. The
remarkable expansion in rural as well as grocery market seems the alert of a new source of
Secondly, with the improvement in the level of literacy as well as the spread of globalized
environment, more and more Vietnamese perceive that they should take more care for
themselves and even ready to spend money for personal care products. In the Nielsens research
of Vietnam macro economy in 2015, Vietnam placed the 1st position in health-conscious in
Southeast Asias countries which stands for 48% of the population prioritize staying fit and
healthy as their aspiration. In March 2014, Euromonitor International complied for British
Columbia Ministry of Agriculture published the Market Opportunity Report: VIETNAM. The
researchers indicated that Vietnamese customers put more effort in enhancing health
consciousness. They used to simply become the followers of the sellers; however, now they
independently select, clarify information and even know how to confirm the real versus fake.
Additionally, in 2014, the report Nielsen Know Act and Grow pointed out that 37% of
Vietnamese respondents think now is the time to buy, 54% of Vietnamese respondents are
confident about personal Finance". Therefore, they switch to quality-oriented, instead of price-
oriented as they used to. Based on the research in secondary data, 75% of Vietnamese woman are
totally willing to spend for hair care products, such as shampoo, conditioner, treatment mask,
serum, etc. It used to be really difficult, costly and even risky for introducing a new personal care
product or brand name into Vietnam, however, the story today is completely different.
Nowadays, Vietnamese favorably approach the modern and advanced technologies, products and
services. And moreover, they tend to consume foreign brands, decide to buy based on the
indication the country of origin on labels, and believe the imported goods from international
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Last but not least, nowadays, the awareness of Vietnamese woman about hair gradually
increase and it creates a new demand. Hair is known as an indescribable part so they are pickier
in choosing a shampoo. Based on the survey, 34.3% of the interviewees agreed that the
situation/performance of hair is the key element the most important criteria to make a decision
to buy; and 55.8% of them stated it was important. Furthermore, they realize the bad affects from
sunshine, polluted environment, dry wind; especially the high temperature in hair styling (such
as dyed, stretch, bending) do harm to the texture of hair, so they think much about the
solutions and how to prevent the best performance or instantly find out the treatment therapy
when hair disease is occurred. In reality, woman not only do household and take care of family,
they also join in the workforce as well as have their own journey to explore the world. Hair is
attractiveness. As the result in our survey, nearly 80% of female from 18 to 55 years old, expect
that in daily, their hair is always look good in any circumstances; or at least, if some works
unexpectedly occur, their hair will look good instantly without going to hair salon. Additionally,
the heavy workload, negative impact of sunshine and polluted environment badly affect the
performance of hair. It leads to various annoyed problems for female, for example, anti-dandruff,
scalps residue, sickness, and unappealing scent. Those are the reasons why they would like to
seek for the product that satisfy their specifically needs of cleanliness, conservation, convenient
and nourishment. Jessica Ragoschke - a consumer analyst company Nielsen, used to say that:
Consumers are simplifying their hair care routines and opting for a more casual or natural style
as well as increasingly using substitute products like dry shampoo. (n.d). Therefore, the Oxygen
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technology in dry-spray shampoo of Dove is absolutely able to become the leading trend in this
Threat
For any giving business, threats shall be taken into consideration. Needless to say,
competition should be prioritized as the top important threat. Competition in this market is
unexpectedly controlled, especially on the ever growing awareness of hair care products.
Michael (2013) researched the Factors Influencing the Purchase Decision towards Hair Color
Products, he concluded that Hair care industry itself actually consists of several sub-
industries. That is, for each sub industry, there is a variety range of products from different
brand names but no significantly difference in the function. Therefore, Dove Shampoo are facing
up with not only the current direct competitors, but also the potential competitors from both local
and global. Additionally, it will be the enormous problem for Dove if the initial Vietnamese
customers are deeply skeptical about the chemicals ingredients. They will switch to use herbal
products or even handmade products. Another threat of Dove comes from its own trademark,
however, it is fake and imitated the counterfeit goods. There is no doubt to see the fake Dove
shampoos rampantly in the market, especially the area of low income and/ or level of literacy.
Those products are nearly the same with the real one but absolutely cheap. Consequently, Dove
will be negatively affected. It is obvious that Dove is able to prove its purity, however, customers
may fear of buying fake products, so they buy the other product with no imitation or scandal.
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As following the class lecture: Assessing Market Opportunities which stated that
assessing the inherent attractiveness for the company and company competitiveness helping
target and allocate the resources, capability and investment effectively to achieve the expected
ROI for business. The attractiveness and competitiveness matrix of McKinsey or we can say GE
model. Such model is applied below acting as the most important tool to analyze and identify
Dove investment strategy. In this analyzation, we focus on the Upper-income segment such
desire to have natural therapy which takes 55% of Dove segment size.
Attractiveness Assessment
First step is define the criteria of attractiveness, weight and score them. This assessment
helps us to answer the question which opportunity of market attractiveness that affect to our
company and objectives. We choose five important criteria including current market size, current
market growth, segment size, price sensitivity and potential differentiation and the total score for
Competitiveness Assessment
The second step is define the competitiveness of the company such procurement executed
the same as the attractiveness assessment. However, the competitiveness criteria is different,
capability that affect to their own competitiveness ability. Thereby, we define 6 criteria including
Dove Market Share, Dove Market Growth, Brand Awareness, Dove Quality, Point of Different
According to Unilever BCG Matrix, Tom Oakley (2014), Unilever has brands standing at
a peak of market growth and holding a large market share including Lipton and Dove. Moreover,
Unilever has a strong resource such as 5 manufacturing factories in Vietnam. Therefore, the cost
of operation reduce relatively in tandem with the high quality of product and unique innovation
After assessing, weighting all of the Competitiveness Criteria Score, the total score of
775 is the high score based on GE matrix ratings that we will discuss below.
According to McKinsey Matrix (1970s), this model perform current business portfolio
situation based on the strategic business units (SBU) score of a corporation. Thereby, business
should take a look and think which effective way for company to put on their next strategy and
Based on the score of Market attractiveness (scored of 595) and competitiveness (scored
of 775) above, we can indicate that Dove Hair Care portfolio unit is decreasing of the
attractiveness degree in the market but still keeping on the high score of competitiveness from
Unilever that no one cant avoid. Therefore, we are exactly at the middle-right of the GE Model.
In this circumstance, the company should build the product portfolio selectively to enhance the
market attractiveness. The principle 3 and 5 from the is the most suitable to allocate effectively
our resources
Principle 3: Keep the balance of Cash Generating and Cash-absorbing of 2 different SBUs.
Positioning
In this case, the multi-attribute model (MAM) acts as a tool to clearly answer the question
The first step AMA - Perception Analysis explains how the customer positioning Dove,
Pantene and Rejoice based on seven main attributes: make hair shiny, repair damage hair, make
hair stronger, make hair soft and smooth, effectively moisturize hair, and give hair shape almost
The second step is Platform Selection, which answers the question What aspects the
company want to highlight and what do we want the target consumer remember about
themselves. According to Dove Brand Position Pyramid (2016), there are 3 main attributes that
Dove set to bring to their target consumer, namely Repair Damage Hair, Effectively Moisturize
hair and Make hair stronger. In this case, The Platform Evaluation Worksheet clearly stated
which criteria is possible, impossible or unknown based on 6 criteria (Broad Appeal, Motivation,
The third step is enhancing current main position includes 4 options: Improve own
perception, hurt competitors perception, change weights and introduce new driver. As stated
above in MAM, Dove has the highest score of nine in such three attributes in which Improve
own perception is not really potential option. By the way, Dove also hurts their competitors
(Pantene and Rejoice) in Repair damaged hair care attribute. About changing weights for other
attributes such as Making hair shiny, which is also the high-score weighted in MAM.
However, the way of increasing weights at other attribute like this is not really potential for Dove
and affect to Doves Point of Distinguished which lead Dove target consumer not being niche
anymore. Besides, Unilever has another Hair Care Brand which is Sunsilk or we can say their
DOVE SHAMPOO IN VIETNAM MARKET
26
Flanker Brand in Brand Portfolio Strategy (David A. Aaker, 2009). Sunsilk has the attribute of
Making Hair Shiny, Soft and Smooth which directly compete with other competitors and
Finally, Introduce New Driver is the most potential option, which is stated and explained
at SWOT Analysis.
Marketing objectives
With regard to the mentioned analyses, Dove Dry Spray Shampoo possesses many
superior advantages, which extrinsically make it a promising product in Vietnam market. Not to
mention, other intrinsic factors such as ingredients and technological properties used for the
production are also owned and available at Unilever Vietnam. Therefore, with additional
adaption to the products packaging for three distinct segments, it is likely for this product to
succeed in meeting Vietnamese customers needs and preferences or even take a spectacular hit.
The Dry-Spray Shampoo introduced in Vietnam is the new technology one of the innovation
versions of Dove recently the Oxygen Moistures (97ml); which had already presented and
become popular in the US and other Europe countries. This new product will also target the
Natural Therapy. Then, a clear set of objectives will be developed as a short-term guidance of
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market.html
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industry/agriculture-and-
seafood/statistics/exports/market_opportunity_report_vietnam.pdf
Michael, P. (2013). Factors Influencing the Purchase Decision towards Hair Color Products.
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ampoo_market_2012.pdf
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DOVE SHAMPOO IN VIETNAM MARKET
29
https://www.unilever.com.vn/sustainable-living/
DOVE SHAMPOO IN VIETNAM MARKET
30
Appendix
These following analysis are reported for the segment Treatment Remedy:
DMU Analysis
Relative Typical Pressure
Identity Role
Influence Agenda Points
Woman User/ Payer/ High - Quality (clear, not itchy) No
Final Decider - Reasonable price
- Famous brand
- Convenience (different size;
easy to use/buy/bring along)
Friends Influencer/ Low/ - Reasonable price No
Payer Moderate - Quality
- Sharing experience
Family Influencer/ Low/ - Take care No
Payer/ Buyer/ Moderate - Reasonable price
Final Decider - Attractive promotion
Hot face/ Influencer Low/ - PR No
Blogger/ Moderate - Sharing
Celebrities - Introduce new trend
Doctors Influencer High/ - Prescription No
Moderate - Famous brand
DOVE SHAMPOO IN VIETNAM MARKET
32
Customers Providers
Area Needs are
have have
- Quality ()
Name of the - Reasonable price
1 Genuine Expressed Addressed
game - Convenience (various sizes)
- Long-lasting clean shampoo
- Premium, Eye-catching package
- Beautiful PG
Misguided
2 Fictitious Expressed Addressed - Models whose hair are nearly
effort
perfect as it is in the TVC
- Liquid mint & microbeads
- No-foam shampoo
Not
3 Pure waste Fictitious Addressed - Wishes tags
Expressed
- Included box in no occasions
Unrecognized Not
7 Genuine Addressed - Hair experience services ()
value Expressed
- Professional therapy by doctors/
Potential Not Not
8 Genuine experts - for upper-middle class, who
breakthrough Expressed Addressed
have problems with hairs
These following analysis are reported for the segment Natural Therapy:
DMU Analysis
Relative Typical Pressure
Identity Role
Influence Agenda Points
Woman User/ Payer/ High - Quality No
Final Decider - Reasonable price
- Famous brand
- Convenience (different size;
easy to use/buy/bring along)
Friends Influencer/ Low/ - Reasonable price No
Payer Moderate - Quality
- Sharing experience
Family Influencer/ Low/ - Take care No
Payer/ Buyer/ Moderate - Reasonable price
Final Decider - Attractive promotion
Hot face/ Influencer Low/ - PR No
Blogger/ Moderate - Sharing
Celebrities - Introduce new trend
Seller Influencer Low/ - Profit Duty
Moderate - Sharing Contract
Customers Providers
Area Needs are
have have
- Quality ()
Name of the - Reasonable price
1 Genuine Expressed Addressed
game - Convenience (various sizes)
- Aroma
- Premium, Eye-catching package
- Beautiful PG
- Models whose hair are nearly
Misguided perfect as it is in the TVC
2 Fictitious Expressed Addressed
effort - Liquid various color (mint,
purple, pink) and also included
microbeads
- Cute scent
- No-foam shampoo
Not
3 Pure waste Fictitious Addressed - Wishes tags
Expressed
- Included box in no occasions
- No sensitive for eyes
- Able to change the shape of the
Healthy Not
4 Fictitious Expressed package
skepticism Addressed
- Included collagen & vitamin for
skins and hands
- Food-flavor in scent (ex: pizza,
ham, seafood, BBQ)
No-mans Not Not
5 Fictitious - No bitter flavor
land Expressed Addressed
- Glass bottle
- Mini zipper package
- Conditions of Refilled services
Immediate Not
6 Genuine Expressed - Allowance to pay after use
opportunity Addressed
- Membership
DOVE SHAMPOO IN VIETNAM MARKET
35
These following analysis are reported for the segment Professional Expert:
DMU Analysis
Relative Typical Pressure
Identity Role
Influence Agenda Points
Woman User/ Payer/ High - Quality the best condition No
Final Decider for hair
- Famous brand
- Convenience (different size;
easy to use/buy/bring along)
Friends Influencer/ Low/ - Reasonable price No
Payer Moderate - Quality
- Sharing experience
Hot face/ Influencer Low/ - PR No
Celebrities Moderate - Sharing - Introduce new trend
Seller Influencer Low/ - Profit Duty
Moderate - Sharing Contract
Customers Providers
Area Needs are
have have
DOVE SHAMPOO IN VIETNAM MARKET
36
- Aroma
Name of the - Famous brand
1 Genuine Expressed Addressed
game - Protect the hair texture with
qualitative ingredients
- Premium, Eye-catching package
Misguided - Beautiful PG
2 Fictitious Expressed Addressed
effort - Models whose hair are nearly
perfect as it is in the TVC
- No-foam shampoo
Not - Cute scent
3 Pure waste Fictitious Addressed
Expressed - Wishes tags
- Included box in no occasions
- Good for skins (hands, face) with
collagen and vitamin
Healthy Not
4 Fictitious Expressed - No sensitive for eyes
skepticism Addressed
- Able to change the shape of the
package
SWOT Analysis
STRENGTH WEAKNESS
OPPORTUNITY THREAT
example
- Vietnamese customers
+ Quality-oriented
DOVE SHAMPOO IN VIETNAM MARKET
40
+ Health consciousness
+ Personal performance
product class
Hair Care Brand Positioning Profile from official Unilever Research (2010)
Weighted
Success Factors Weight Relative Score Score
Dove Market Share 20 8 160
Dove Market
Growth 20 7 140
Brand Awareness 15 8 120
Dove Quality 20 7 140
Point of Different 15 9 135
Cost of Operation 10 8 80
Total Score 775