1

CONSUMER BEHAVIOUR

SUBMITTED BY,

SADHANA YADAVMFM-2ND SEMESTER,NIFT-HYDERABAD

SUBMITTED TO,

Mr. ANAJI SHARMA,ASSOCIATE PROFFESOR MASTER OF FASHION MANAGEMENT,NIFT-HYDERABAD

TABLE OF CONTENTS

SL.

NO TOPIC PAGE NO.

1. Introduction 3

2. Background Study 3

3. Research Methodology 11

4. Nature and Scope 12

5. Results obtained 14

6. Analysis of the Results 22

7. Findings and Recommendations 23

7. Appendix 24

8. References 26

2

INTRODUCTION

This report focuses on one of the most commonly used and known personal

care product line in the world; Dove by Unilever.

Responding to new competitive conditions in its business environment,

Unilever Corporation has evolved into one of the foremost transnational

companies. With the marketing leverage and established brand name of

Unilever, Dove became a success story shortly after its launch. The

accomplishment of Dove has largely been built on Unilever’s ability to target

the right consumers by offering quality and consumer-friendly products.

Thus, despite the intense competition provided for by companies such as

Procter and Gamble and Colgate-Palmolive, Dove remained to be on top of

the market. In the year 2011 in India the brand Dove featured in the list of

top 50 brands in India according to the “Brand Trust Report”.

Today, Dove is the biggest Home and personal care brand by the leading

multi-local multinational company, Unilever (HUL in India). Having been

introduced for the first time as a skin-cleansing product, Dove is now a 2.5

billion Euros brand.

Dove has a long range of brands including soaps, body washes and hair care

shampoos and conditioners. Consequently, Dove also offers different

countries with Dove products that are unique to their climate, culture and

skin texture.

This research report aims to examine the brand loyalty of Dove. An analysis

was conducted with a survey was distributed to 50 consumers at random

which has helped in gathering information on existing reasons why they

would prefer any product based on the Dove brand’s product line.

3

BACKGROUND STUDY

Customers have a number of reasons to be loyal to a brand. Maybe the first

product of a type they ever tried was of that brand, and they were satisfied.

It might taste, work, feel, or fit better than other brands for that person.

Many customers are influenced by price and have an innate distrust for less

expensive products. Whatever the reason, these customers are more

inclined to purchase with that brand to which they are loyal than with others.

Even those customers who favor a single brand but are willing to purchase

outside, may look down on a store that doesn’t carry the favored brand.

The primary thing that a brand name does for a customer is establish a

reputation. Most people will know something of a given brand, either from

experience, from word of mouth, or even by advertisement. The more

positive reinforcement that is available for a brand, the greater is the

influence on customers. One of the most important things a company can do

to gain a customer’s trust is to provide a great initial purchasing experience.

A company that makes a less than impressive impression on a new customer

has a much tougher time getting that customer to buy again.

In the case of a negative experience, that likelihood declines even further. To

build a happy, loyal customer base, it’s important to have quality products

and offer top notch service after the sale. The easiest way to gain a

customer’s distrust is to be disinterested in helping a customer after a

problem has arisen. Be proactive and go out of your way to make the

customer happy. Assuming your quality control is at an acceptable level,

good experiences should far outnumber bad ones. This will lay the

foundation for a customer loyal to your brand.

4

CONCEPT OF BRAND PERCEPTION LINKED WITH

CUSTOMER LOYALTY

Brand loyalty is more than simple repurchasing, however. Customers may

repurchase a brand due to situational constraints (such as vendor lock-in), a

lack of viable alternatives, or out of convenience. Such loyalty is referred to

as "spurious loyalty". True brand loyalty exists when customers have a high

relative attitude toward the brand which is then exhibited through

repurchase behavior. This type of loyalty can be a great asset to the firm:

customers are willing to pay higher prices, they may cost less to serve, and

can bring new customers to the firm. For example, if Joe has brand loyalty to

Company A he will purchase Company A's products even if Company B's are

cheaper and/or of a higher quality. From the point of view of many

marketers, loyalty to the brand — in terms of consumer usage — is a key

factor.

Every brand wants to create and retain a loyal customer who engages in

continued profitable business with it. Customer Loyalty is the measure of

success of the brand in retaining a long term relationship with the customer.

Thus customer loyalty is when a brand receives the ultimate reward of its

efforts in interacting with its customer. Customer loyalty leads the customer

to voluntarily choose a particular product against another for his need. The

loyalty may be product specific or it may be company specific. When a loyal

customer has repetitive requirement of the same product, such customers

may be described as being ‘brand loyal’.

Loyalty also means that customer is sticking to the brand on certain grounds

though he may be having other options also.

Such loyal customers tend to spend more money buy more, buy longer and

tell more people about the product or supplier. This type of long-term

5

customer loyalty can only be created by making the customers feel that they

are number one priority.

Some customers are inherently predictable and loyal, irrespective of the

brands with which they are doing business. They simply prefer long-term

relationships with him. Loyal customers are predisposed to stay with one

product or brand, resisting competitive offers and also recommend the

supplier to others.

True, the customers who are targeted by a retention program demonstrate

higher loyalty to a business. Therefore such customer retention programs

should include regular communication with customers, and provide them

opportunities to remain active and choosing to do business with the supplier.

Loyalty is demonstrated by the actions of the customer. But it doesn’t mean

that the customer satisfaction level can measure his loyalty. Customer

loyalty is not customer satisfaction. Customer satisfaction is the basic entry

point for a good business to start with. A customer can be very satisfied with

the deal and still not be loyal. On the other hand a customer may not

express satisfaction but wants to remain loyal to the brand due to some

reasons which keeps him benefited from that brand.

On the other hand, loyalty should not be considered as just an attitude.

Customer loyalty should have a direct connection to a company’s financial

results. The brand should be able to plan a clear and direct economic benefit

of some kind, as the result of the strategies and tactics it employs to

increase its customers’ loyalty.

Measuring customer loyalty and developing a retention strategy are of great

importance to an organization’s success.

6

DEFINING BRAND LOYALTY

The American Marketing Association defines brand loyalty as:

1. "The situation in which a consumer generally buys the same

manufacturer-originated product or service repeatedly over time rather

than buying from multiple suppliers within the category" (sales

promotion definition).

2. "The degree to which a consumer consistently purchases the same

brand within a product class" (consumer behavior definition).

Brand loyalty has been defined by Oliver (1997) as, “A deeply held

commitment to re-buy or re-patronize a preferred product/service

consistently in the future, thereby causing repetitive same brand or same

brand-set purchasing, despite situational influences and marketing efforts

having the potential to cause switching behavior.” (Oliver, 1999 cited in Pohl,

2006) The definition provided by Oliver lays stress on the situational

influences and marketing efforts which cause customers to switch over. A

loyal customer is one who is not influenced by these factors and makes

repeated purchases from the same seller or brand.

Brand loyalty, in marketing, consists of a consumers’ commitment to

repurchase or otherwise continue using the brand and can be demonstrated

by repeated buying of a product or service, or other positive behaviors such

as word of mouth advocacy.

Philip Kotler, again, defines four patterns of (brand loyal) behavior:

7

1. Hard-core Loyal - who buy the brand all the time.

2. Split Loyal - loyal to two or three brands.

3. Shifting Loyal - moving from one brand to another.

4. Switchers - with no loyalty (possibly 'deal-prone', constantly looking for

bargains or 'vanity prone', looking for something different).

IMPORTANCE OF BRAND LOYALTY

The increasing competition has forced every seller in the market to

reconsider their views on customers. Gone are the days when customers

were simple and attracting them to the firm was child’s play. Today the

customers are to be treated like kings and must be provided with all that

they expect the firm to provide. The firms face double challenges of

attracting the customers as well as retaining them. The competition in the

marketplace offers the consumers with an opportunity to select from wide

variety of similar offerings; so achieving customer loyalty is extremely

difficult.

Every successful business depends on Brand Loyalty as it is the ultimate goal

a company aims at. Brand Loyalty means a consumer’s commitment to a

brand. It implies that the customer not only looks for his/her own benefit but

is willing to think about the brand’s interest. It is mainly stated by repeat

purchase. However it is not the end of the story. Brand Loyalty can be

reflected in various positive behavior of the customer such as word of mouth

advocacy, referring the brand to others and so on.

A customer who is loyal to a brand has a typical mind set. When a customer

is committed to a brand he/she keeps coming back to the brand to buy a

product or a service. A loyal customer is always willing to pay higher price for

his/her preferred brand than other brands. He/she also recommends this

brand to others after realizing that the brand offers value for money.

8

Thus the importance of brand loyalty is immense since it is brand loyalty that

determines the sale of a product or a service. It is very difficult to survive in

today’s competitive world. In order to do so it is very crucial not to lose

customers. Reducing customer loss and achieving new customer’s trust and

loyalty can dramatically improve business growth.

Moreover when customers are loyal to a brand they are less sensitive to

price change and willingly pay higher price to get the unique value that your

brand offers. Brand loyalty ultimately leads to cost cutting and high profit

margin as a loyal customer is indifferent to competitive promotions. Once

brand loyalty is established one does not need to spend much on advertising

and marketing.

A number of things can influence brand loyalty starting from designing a new

product to writing its catch line, understanding customer’s need to

employing effective marketing strategy. Brand loyalty occurs as the

customer perceives the brand in a positive manner. Developing loyalty

among new customers and retaining it among existing customers are equally

important.

Therefore it is necessary that the customers have a good impression about

the brand as it is the foundation of their buying habits. When the customers

buy a product they make a trial purchase. If they are satisfied with the

product they will get back to buying that product again. Customers prefer to

buy products that are familiar, safe and of good quality.

A number of things determine brand loyalty. A customer develops brand

loyalty only when they get quality product or service at the right price. It is

the responsibility of the marketer to maintain the quality at a reasonable

price.

INTRODUCTION TO THE BRAND “DOVE”

9

Unilever was established in 1930 and since that time, the brands introduced

by Unilever are attaining the leading position in the International markets.

Among all those brands by Unilever, Dove is one of the most famous brands

in the consumer industry and they use Dove daily for their skincare and hair

care. There is a wide range of brands of Dove including soap bars, face

washes, shampoos, conditioners, deodorants, moisturizing creams etc. that

are used in 1 in 3 houses all over the world.

Unilever’s brand name used for many years on toilet soap became so

successful its name was extended to other products. However, being the

consumers’ best choice, Dove is enjoying the leading position in the market

with the largest market shares in 75 countries and is a 2.5 billion Euros

brand. The goals of Dove brands are to comply with the needs of the

consumers all over the world and to work together in effective manner to

adopt the advanced ideas while working out on the existing ones.

Dove is a personal care brand owned by Unilever. Dove products are

manufactured in Argentina, Australia, Brazil, Canada, Germany, India,

Ireland, Netherlands, Thailand, Turkey and United States. The products are

sold in more than 35 countries and are offered for both women and men. The

Dove trademark and brand name is currently owned by Unilever. Dove's logo

is a silhouette profile of the brand's namesake bird, the color of which often

varies. Products include: antiperspirants/deodorants, body washes, beauty

bars, lotions/moisturizers, hair care, and facial care products.

Unilever spends 2 billion Euros every year on marketing whereas 1 billion

Euros for the research and development purpose. This marketing by Unilever

has led Dove brands to attain the leading position in the market by the

effective strategies including market research, concentration of a small

number of products, varieties in brands, business in collaboration with any

other renowned company, innovations, marketing according to

demographics, commercials on television, announcements on radio, through

10

contests, workshops and supermarkets, billboards, free help lines,

knowledgeable website, and free gift offers etc. 

Moreover, substantial country-to-country differences in consumer tastes,

preferences, and practices, as well as market structures, distribution

channels, and local regulations have motivated top management to allow

extensive operating independence of Unilever's subsidiaries (Maljers, 1992).

Moreover, rising trade barriers have, until recently, always reinforced the

need for managerial autonomy at the subsidiary level.

The major competitors of Dove brands are Palmolive by Colgate-Palmolive

and Ivory and Oil of Olay by P&G, but Dove is still at the top because of the

consumers’ confidence in it, its best quality and curative advantages that

keep the skin moist and beautiful and hair healthy and shiny by the

advanced formulae of ¼ moisturizing cream, conditioners, vitamin B5,

Vitamin E and nutrients used in Dove brands that also helps for the aged

people to keep their skin protected from wrinkles.

Hence the success of Dove brands is attributed to just one thing that

Unilever goes extra miles to give the loyal consumers high-quality,

competitive products and services

The products under the brand Dove can be listed under the following heads

Shampoos and

Conditioners

Dove intense repair

Dove hair fall rescue

Dove daily shine

Dove dryness care

Dove dandruff care

Hair Treatments Heat defense mist

Intensive repair overnight mask

11

Intensive repair regenerating mask

Body lotions Essential nourishment

Go fresh nourishment

Indulgent nourishment

Bar and body wash Crème

Fresh moisture

Gentle exfoliating

Antiperspirants Original

Silk dry

Clear Touch anti white marks

RESEARCH METHODOLOGY

The primary research methodology involves identifying the population,

selecting a sample, identifying the appropriate sampling technique,

preparing the survey and administering the survey to the sample population.

Defining the Target Population

People who have used Dove’s products and are most likely to have a

perception about them. The target population for evaluating the perception

towards Dove as a brand would include people possessing all of the following

attributes:

Has used any product of Dove at least once

Falls in the age group of 16 to 50 yrs.

Selection of Sampling Procedure Since no sampling frame exists, which

could provide information about the probable respondents, thus convenience

sampling technique would be used to conduct the survey using a structured

questionnaire.

12

Determining Sample Size

The sample size for conducting this survey has been decided on ad – hoc

basis and a large sample size of 40 respondents has been chosen.

Administering the Survey

The survey is primary survey, conducted by administering a structured, non

– disguised questionnaire.

Time frame

The survey will be conducted in the city of Hyderabad during the month of

May 2012.

NATURE AND SCOPE OF THE RESEARCH

This report focuses on the primary research conducted to understand the

customers’ perception of Dove as a brand. The report discusses what drives

consumers to be loyal to Dove as a brand or what makes them choose other

brands. The consumers would be asked to fill a questionnaire that would

analyze:

How do they feel about products of Dove brand?

Why do they purchase Dove products?

How do they compare Dove brands with the competitors in the market?

What would drive them to discontinue using Dove brand and switch to

competitors?

The gathered data is then processed, analyzed and interpreted in a

systematic and objective fashion to understand what reasons influence the

loyalty of the consumers being studied towards the brand.

13

RESULTS OBTAINED

1. Consumer rating of Dove brand in terms of quality:

Very Good Good Neutral Bad Very Bad0

5

10

15

20

25

20 %

40 %

30 %

8 %

2 %

Responses

Nu

mb

er o

f re

spo

nse

s

2. Consumer rating of Dove brand in terms of Value for money:

Very Good Good Neutral Bad Very Bad0

2

4

6

8

10

12

14

16

18

28 %

20 %

32 %

8 %

12 %

Responses

Nu

mb

er o

f re

spo

nse

s

14

3. Difference Between The Quality Of The Brand And Other

Brands:

Yes No Can't Say0

5

10

15

20

25

30

50 %

10 %

40 %

Responses

Nu

mb

er o

f re

spo

nse

s

4. Agreement/Disagreement with following statements:

a) Always had a good impression about Dove

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

2

4

6

8

10

12

14

16 30 %

24 %

16 %

30 %

0 %

Responses

Nu

mb

er o

f re

spo

nse

s

15

b) Friends and family highly value Dove brand:

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

5

10

15

20

25

30

50 %

20 % 20 %

10 %

0 %

Responses

Nu

mb

er o

f re

spo

nse

s

c) Believe that Dove products are better than its competitors:

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

5

10

15

20

25

30

18 %

12 %

48 %

14 %

8 %

Responses

Nu

mb

er o

f re

spo

nse

s

16

d) Dove suits them:

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

5

10

15

20

25

30

35

40

4580 %

10 % 10 %

0 % 0 %

Brand Suits Them

Responses

Nu

mb

er o

f re

spo

nse

s

e) Dove as a brand is trustworthy and credible:

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

5

10

15

20

25

30

35

40

70 %

20 %

6 % 4 %0 %

Responses

Nu

mb

er o

f re

spo

nse

s

17

f) Spread positive word about dove:

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

2

4

6

8

10

12

14

16

18

26 %

32 %30 %

12 %

0 %

Responses

Nu

mb

er o

f re

spo

nse

s

g) Consider themselves loyal to dove:

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

2

4

6

8

10

12

14

16

20 %

30 % 30 %

8 %

2 %

Responses

Nu

mb

er o

f re

spo

nse

s

18

5. Frequency of purchase during past 6 months period:

Once Twice Thrice More than 4 times

not purchased0

2

4

6

8

10

12

14

20 %

16 %

24 %

14 %

6 %

Responses

Nu

mb

er o

f re

spo

nse

s

6. Likelihood of repurchase:

A B C D0

2

4

6

8

10

12

14

16

18

20 38 %

22 %

32 %

8 %

A= definitely repur-chase dove, B=might repurchase dove, C= neutral towards repurchase decision, D= not re-purchase dove

Responses

Nu

mb

er o

f re

spo

nse

s

19

7. Likelihood of purchase of a different brand in stock out

situations:

A B C D0

5

10

15

20

25

30

48 %

12 %

28 %

12 %

A=not purchase an-other brand, B=might purchase in emergencies, C=look for other sim-ilar brand D=purchase differ-ent brand

Responses

Nu

mb

er o

f re

spo

nse

s

8. Likelihood of repurchase in case of price increase:

20

A B C D0

5

10

15

20

25

30

50 %

30 %

22 %

8 %

A=only purchase dove, B=purchase dove if price in-crease is marginal C=evaluate other products also D=not purchase dove

Responses

Nu

mb

er o

f re

spo

nse

s

9. Likelihood of repurchase in case of a lower priced similar

product by a competitor:

A B C0

5

10

15

20

2546 %

26 %28 %

A=not discontinue dove, B=might try lower priced product, C=switch to lower priced product

Responses

Nu

mb

er o

f re

spo

nse

s

10.

21

ANALYSIS OF THE RESULTS

The survey was undertaken on customers of Dove products and 60% of the

respondents rated Dove positive in terms of quality which indicates that a

majority of the consumer base uses Dove products because of the quality it

provides to them. In addition to this a good 48% people think that it is a good

value for money brand and the amount that they pay for the products gives

them the kind of satisfaction they require out the products they buy. Also

50% of the people surveyed believe that the products are different in terms

of quality as compared to other brands providing similar kind of products.

This number reinforces the results of question number 1 in which people rate

Dove positive in terms of quality and therefore we can say that as far as

quality is concerned Dove as a brand has an affirmative image in the minds

of its users . Looking at the results of question number four we can see that

more than 50% percent of the people feel that their family members also

value the brand, the brand suits them, the brand is trustworthy and credible,

they will spread positive word about the brand. These results insinuate that

the users as well as peers value the brand highly they trust the brand and

are readily willing to recommend it to other people. They think that the

brand suits them and no other brand available in the market is able to satisfy

them then way Dove does. On the other hand people don’t feel that Dove

products are any different from their competitors, this can mean that people

use the products just for the fact that it satisfies their needs and is a good

value for money but incase some competitor launches products that is

perceived better than Dove products it is possible that the customers might

switch to the competitors products. Also, from looking at the responses of

question number 6 through 9 we can say that a major chunk of the people

surveyed regularly buy Dove products and other things being equal people

are most likely to repurchase the brand even if the brand increases price,

there is a stock out situation or even if a competitors lowers his price or

comes up with similar lower priced products people are loyal enough to stick

22

to the brand. However, when consumers were asked about whether Dove

products were better than its competitors only a small percentage of 18%

agreed to it, this means although people are highly satisfied with the quality

of products they still don’t find other brands inferior.

FINDINGS AND RECOMMENDATIONS

Similar to any other brand’s customers Dove’s customers also fall in various

consumer categories, which are explained below along with the percentage

in each category:

Hardcore loyal: These are those customers which are satisfied with the brand

will not switch to other brands in any situation. In Dove’s case this

percentage is close to 30 percent.

Switching loyal: This is that category in which people are not emotionally

attached to the product and if they feel that there is a brand which is better

in terms of quality they will switch to the other brand in no time. But if they

find that the second product is not living upto there expectations than they

might switch back to the first product again. In Dove’s case this percentage

is a 26 percent. This is a segment that Dove really needs to work upon and

turn them into hardcore loyal.

Not loyal: This is category which is not loyal at all and is more than ready to

switch to other brands in case of a fall in the price of other brands. These

people are very price sensitive and are using dove just because it suits them

and is easy on their pocket. The percentage of this category for Dove is a

whopping 28%. For these people the brand does not need to bother much

because they are price sensitive and will not stick to the brand in any way

except lowering the price.

Overall the brand enjoys a fairly good reputation in the minds of the

customers and the customers feel that it’s a value for money brand that

23

gives them great benefits and enough satisfaction. The survey concludes

that Dove has a strong loyal customer base but at the same time it also has

a segment of customers which are price sensitive and not loyal in the true

sense, therefore it should make constant efforts to retain the customers it

already has and make efforts to turn the not so loyal switchers into hardcore

loyal.

References

http://ivythesis.typepad.com/term_paper_topics/2011/06/industry-report-dove-by-

unilever.html

24

SURVEY

Declaration: This survey is being conducted by the students of National Institute of Fashion Technology, Hyderabad; as a part of their project survey. The information given by you will be used solely for academic purposes only and will not be disclosed anyhow. You are kindly requested to fill the following survey form.

Have you used Dove products?o Yes o No (if no please exit the survey, thanks for participating)

Rate Dove as a brand in terms of quality

Very good Good Neutral Bad Very Bad

Rate dove as a brand in terms of value for money

Very Good Good Neutral Bad Very Bad

Do you perceive a difference between the quality of Dove’s products and products of other brands?

o Yes o Noo Can’t say

Thinking of Dove brand to what degree do you agree or disagree with the following statements?

StatementStrongly Agree

Agree NeutralDisagree

Strongly Disagree

I have always had a good impression about this brand My friends and family highly value this brandI believe the products of this brand are better than its competitors

The brand suits me

25

The brand is trustworthy and credibleI say positive things about this brand to othersI consider myself loyal to this brand

How many times have you purchased Dove products in the past 6 months?

o Once o Twice o Thriceo More than four timeso I have not purchased it

How likely are you to repurchase dove products?o I will definitely repurchase Doveo I might repurchase Doveo I am neutral towards the repurchase decisiono I will not repurchase dove

How likely are you to purchase a different brand in case of stock out situations?

o I will not purchase another brand, I purchase only Doveo I might consider purchasing a different brand in emergencieso I will browse and look for brands offering similar productso I will certainly purchase a different brand if I do not find dove

How likely are you to repurchase the product if price increases?

o I will purchase Dove even if the price increaseso I will purchase Dove purchase Dove only if the price increase is marginalo I will evaluate other products also if the price increases for Doveo I will not purchase Dove incase the price increases

How likely are you to repurchase if a similar competitor has a price slightly lower?

o I am not likely to discontinue Dove in favor of a lower priced producto I might try out the lower priced product instead of Doveo I will switch to the lower priced product instead of Dove

Demographic Questions:

Your Gender ○Male ○Female

Your Age ○ 18 to 20 yrs. ○ 21 to 25 yrs

Educational Qualifications ○ Undergraduate ○ Graduate

26

○ Post- Graduate

Occupation ○Student ○ Service Personnel ○ Own business ○ Housewife

Income of Family (Per Annum)

○ below Rs.1.5lakh ○ Rs.1.5lakh to 3lakh ○ Rs.3.1lakh to 5lakh ○ above Rs.5lakh

27