Dove’s PESTEL Analysis in Australia

The 4P model of product marketing suggests that the marketing process should consider four main categories: The product, price, place, and promotion (the 4Ps) (Nuseir and Madanat 78). Dove is a subsidiary brand of Unilever, one of the largest consumer products companies in the world. Dove’s primary target consumer base are women of all demographics although it still offers men’s products (Bahadur 30). Furthermore, the promotion process involves the campaigns that seek to inform, persuade and remind consumers about the given product. This includes using strategies such as selling, advertisement and public relations activities. In Australia, the organization has developed several strategies to incorporate the 4Ps of marketing in the production and distribution process (Chen and Zhu). This paper closely examines Dove’s Promotion as part of the 4P in relation to the PESTEL analysis in Australia.

PESTEL analysis incorporates the political, economic, Social, technological, environmental and legal factors that influence a product (Chen and Zhu). In Australia, these factors may affect Dove’s promotion process in the following ways:

Political and Legal Factors

Factors such as the election period may cause consumers and investors alike to hold on spending which in turn reduces the likelihood of people purchasing Dove products even if it campaigns aggressively (Ho 60). The foreign policies may influence the country’s external and internal trade which may introduce products similar doves while also being competitive, shadowing its promotion activities. Furthermore, open regulation policy and moderate tax rate of 30% which comes with some tax deductions open room for Dove to capitalize in its marketing strategies in the country including expanding to different parts of the country and using several marketing strategies such as advertising and personal sells (Cook, Davison, and Crabtree 3).

Economic Factors      

The economic factors that may affect the promotion strategy include issues such as rate of employment, the GDP growth, interest rates and inflation and cost of living. With factors such as low economic growth, this may mean opportunities may become harder to get with may lead to reduced spending (Cook, Davison, and Crabtree 3). This may affect the performance of the brand calling for the promotion of the cheaper products from the brand. Furthermore, the economic factors influence the different products the brand will target different income earners

Social-cultural Factors

Australia is a multiethnic nation which influences its views on liberty and inclusive stance (Cook, Davison, and Crabtree 3). Furthermore, the population is progressively growing which increases the size of Dove’s target consumers, the female consumers between the ages of 15 to 60. This offers an opportunity to promote products to secondary consumers including the brand can develop products that target younger 21st-century generations and children, male consumers and products for people above 65 years old. The promotion should also be wary of sensitive issues such as ethnic backgrounds to avoid promotions that seem to exclude consumers based on these factors (Nuseir and Madanat 78).

Technological Factors

Technology is growing at a high pace in the country which also provides an opportunity for more research and development before and while marketing Dove products. Factors such as the adoption of social media and the internet, cheaper production and distribution channels also offer room to use even bigger and multiple promotion strategies (Nuseir and Madanat 78). However, technology also favors competitor by enabling them to produce similar products with competitive prices which may also influence Dove to adjust pricing and promote its differentiation factor as a global brand. Technology can also easily be used to communicate with consumers and help develop personal sales and advertising initiative using the internet (Srijumpa 2). However, it can also quickly spread image-damaging information that may negatively affect the promotion efforts.

Environmental Factors

The promotion can also consider issues such as the weather and climate in the country, hence should consider seasons, space and the landscape to avoid conducting activities that contrast with the environment. The promotion should also be aware of issues such as waste disposal, pollution, environmental laws and resources (Chen and Zhu).  With factors such as increased environmental awareness, climate change and concern with greenhouse gases, the brand should also seek to promote products that are environmentally friendly and find alternative measures for controversial products such as planting more palm trees than the brand products use (Chen and Zhu).  

Conclusion

Australia is a healthy place for doing business and from the pestle analysis, the advantages include an open business opportunity, a high economically developed state which enables the people to purchase a wide range of products. Furthermore, population growth, developing technology and promotion options and fairly moderate taxing rates make it easier to recuperate the cost of product promotion. The challenges the promotion may face is recent slow economic growth, increased competition, demand for environmental consciousness and internet shaming which may damage the brand’s image. Comparing the two, the advantages of the Australian environment are stronger hence by observing the PESTLE analysis observations, promotion as a marketing mix tool can improve the performance of DOVE as a brand.

Works Cited

Bahadur, Nina. “Dove ‘real beauty’campaign turns 10: How a brand tried to change the conversation about female beauty.” The Huffington Post (2014): 30-37.

Chen, Feiran, and Daoli Zhu. ”Price Strategy and Network-Size Allocation Strategy in a Two-Sided Monopoly Market.” (2018).

Cook, Nicole, Aidan Davison, and Louise Crabtree, eds. Housing and Home Unbound: Intersections in economics, environment and politics in Australia. Routledge, 2016.

Ho, Hsuan-Fu. ”Place strategy in school marketing: Location, timing, and physical evidence.” Review of European Studies 7.7 (2015): 60.

Nuseir, Mohammed T., and Hilda Madanat. ”4Ps: A strategy to secure customers’ loyalty via customer satisfaction.” International Journal of Marketing Studies 7.4 (2015): 78.

Srijumpa, Repeeporn. ”What beyond marketing 3.0: The 4Ss marketing mix strategy for sustainability.” Journal of Global Business Review. 15.1 (2017): 1-12.