Opportunities in times of crisis Presented by Yonathan Dominitz

US recessions: Comparison of Sales & Ad Expenditures * McGraw-Hill Research, U.S. recessions, analyzed 600 companies covering 16 different SIC industries, from 1980 through 1985.

Companies that cut advertising during both of the recessionary years maintained flat sales during the period and only modest sales growth in the following two years. In contrast, the companies that maintained their advertising experienced significant sales growth throughout the four-year period. By 1985, sales of companies that were aggressive recession advertisers had risen 256% over those that didn't keep up their advertising. Findings:

Comparison of Net Income & Ad Expenditures *Sources: 1.McGraw-Hill Research 2. The Strategic Planning Institute of Cambridge, MA.

Conclusions: Maintaining market/ brand identity costs much less than rebuilding it later on. Advertising during an economic downturn should be regarded not as a drain on profits but as a contributor to profits. Increases in market share brought about by advertising can be achieved more cost effectively during a recession. A company that advertises aggressively during this period will be better placed to increase profitability once the market returns to stability or expansion.

Dove during the Turkish recession

The Turkish recession Turkey started heading towards a deep economic recession in November 2000, leading to the worst financial crisis since the Second World War. February 2001-the Turkish lira was devalued by 94% overnight. In 2001, GDP growth rate dropped by 8.0%. Economic recovery only began in 2003; In 2001 Advertising spend shrank by 50%, compared to 2000.

Dove- the background Dove entered the Turkish market in 1993 with Dove Cream Bar& Dove Cream Shower and Dove Cream Wash in Then in 2001 Dove Deo, and in May 2002 Dove Body Silk, were introduced to the Turkish market, right in the middle of the crisis.

Dove- the background All Dove brands contain mild cleansers and 1/4 moisturising cream. Dove cleanses as effectively as soap without altering the skin's natural acid chemistry. It does not dry the skin; instead it works to retain its moisture. The market categories in which Dove is active are all competitive segments, with international players such as P&G, Colgate, Beiersdorf and Henkel Schwarzkopf.

The new strategy A new Target group: Shift from women aged of A and B (SES), to mainly coming from C1 and C2. The risk: As Dove is a premium-priced brand, being several times more expensive than an ordinary soap, it may look risky to shift the core target from AB to C1C2, especially at times of economic recession.

The new strategy The opportunity: and C1C2 female target group meant bigger numbers (60% of population). Dove's proposition is to cleanse the skin while moisturising it at the same time  a two-in-one product. Therefore, even if it is premium priced, it is especially considered as a 'good value' brand by women who cannot afford two different products one for cleaning and one for moisturising.

Market share results

DOVE'S SHARE OF GRPS IN TOTAL SOAP MARKET Source: data obtained from Unilever, Turkey