Rexona advertising


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Rexona advertising

  1. 1. PART 1 1. MARKETING ENVIRONMENT A. The Company: o History: Although Unilever wasn't formed until 1930, the companies that joined forces to create the business we know today were already well established before the start of the 20th century. 1900s Unilever's founding companies produced products made of oils and fats, principally soap and margarine. At the beginning of the 20th century their expansion nearly outstrips the supply of raw materials. 1910s Tough economic conditions and the First World War make trading difficult for everyone, so many businesses form trade associations to protect their shared interests. 1920s with businesses expanding fast, companies set up negotiations intending to stop others producing the same types of products. But instead they agree to merge - and so Unilever is created. 1930s Unilever's first decade is no easy ride: it starts with the Great Depression and ends with the Second World War. But while the business rationalises operations, it also continues to diversify. 1940s Unilever's operations around the world begin to fragment, but the business continues to expand further into the foods market and increase investment in research and development. 1960s as the world economy expands, so does Unilever and it sets about developing new products, entering new markets and running a highly ambitious acquisition programme. 1970s hard economic conditions and high inflation make the 70s a tough time for everyone, but things are particularly difficult in the fast-moving consumer goods (FMCG) sector as the big retailers start to flex their muscles. 1980s unilever is now one of the world's biggest companies, but takes the decision to focus its portfolio, and rationalise its businesses to focus on core products and brands. 1990s the business expands into Central and Eastern Europe and further sharpens its focus on fewer product categories, leading to the sale or withdrawal of two- thirds of its brands. The 21st century the decade starts with the launch of Path to Growth, a five-year strategic plan, and in 2004 further sharpens its focus on the needs of 21st century consumers with its Vitality mission. o Size: multi-local-multinational. o geographical scope Unilever has operations in around 100 countries and our products are on sale in about 50 more. With consumers, customers, suppliers and shareholders on every continent, we describe ourselves as a ‘multi-local multinational’.
  2. 2. TURN OVER OPERATING PROFIT o production process: A deodorant or antiperspirant soft solid composition is filled into dispensing containers by injection moldings, i.e. under pressure, preferably in the vicinity of its normal setting temperature. The deodorant or antiperspirant composition is preferably continuously produced in a screw extruder, especially a twin screw extruder, controlled to deliver the composition in a suitably viscous state under low shear and particularly for formulations in which a particulate antiperspirant is suspended in a fluid carrier. The pressure in the injection head at the point of injection is greater than 120 kPa and in many instances from 800 to 2000 kPa. The combined process offers benefits for controlled fill of dispensing containers, particularly for formulations incorporating sensitive ingredients and offers tolerance in composition temperature at the time of fill. o Structure (focus on marketing structure) Paul Polman Chief Executive James A Lawrence Chief Financial Professor Geneviève Michael B. Pier Luigi Sandy Ogg - Douglas Anderson Chief Research & Polk - Sigismondi - Professor Geneviève Chief HR Baillie: Development President, Chief Supply Berger - Chief President of Western Harish ManwaniOfficer Americas Chain Officer Research & - President, Development Officer Europe (Marketing) (Marketing Asia, Africa, Central & Eastern Europe (Marketing)
  3. 3. Products’ Portfolio: Define the product portfolio of the company in terms of width and length. (Graph): Our strong portfolio of foods, home and personal care brands is trusted by consumers the world over. 13 of our brands achieve annual sales of €1 billion or more. Our top 25 brands account for over 70% of our sales. In 2008 thirteen of our brands had global turnover of €1 billion or more. These were Knorr, Hellmann’s, Lipton, Becel/Flora (Healthy Heart), Rama/Blue Band (Family Goodness), Wall’s/Algida (Heartbrand), Omo, Surf, Dove, Lux, Rexona (including Sure and Degree), Axe/Lynx and Sunsilk (including Seda and Sedal). We manage our brands under the following four category headings: savoury, dressings and spreads; ice cream and beverages; personal care; and home care. B. Objectively segment for each product: Remember that products from a company could have different market segments.
  4. 4. Segment information Segment information is provided on the basis of geographical regions and product categories. The primary format, geographical regions, is based on the management structure of the Group, which operates in three geographical regions. Savoury, dressings and spreads includes soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines, spreads and cooking products such as liquid margarines, and some frozen foods. Our key brands here are Knorr, Hellmann’s, Becel/Flora (Healthy Heart), Rama/Blue Band (Family Goodness), Calvé, Wish- Bone, Amora, Ragú and Bertolli. Population: House wifes Income:low-moderate Ice cream and beverages includes ice cream sold under the international Heartbrand, including Cornetto, Magnum, Carte d’Or and Solero, Wall’s, Kibon, Algida and Ola. Our portfolio also includes Ben & Jerry’s, Breyers, Klondike and Popsicle. This category also includes tea-based beverages, where our principal brands are Lipton, Brooke Bond and PG tips, as well as weight management products, principally Slim•Fast, and nutritionally enhanced products sold in developing markets, including Annapurna and AdeS. Population: adults and teenagers Income: moderate business providing In personal care, six global brands are the core of our business in the mass skin care, daily hair care and deodorants product areas – Dove, Lux, Rexona (including Sure and Degree), Sunsilk (including Seda/Sedal), Axe/Lynx and Pond’s. Other important brands include Suave, Clear, Lifebuoy and Vaseline, together with Signal and Close Up in oral care. Population: Mostly teenagers Income: Moderate Our home care ranges include laundry products, such as tablets, traditional powders and liquids for washing clothing by hand or machine. Tailored products including soap bars are available for lower-income consumers. Our brands include Omo (‘Dirt is Good’ platform), Surf, Comfort, Radiant and Skip. Population: house wifes Income: low-moderate. Product Information: "The particular strength of today's woman has to do with living their emotions intensely. This actually cause you to lose force the old paradigm that linked him with an emotional weakness. It is now assumed to be emotional beings and
  5. 5. recognize them as a fortress and positive momentum in their lives "and introduced Mariela Mociulsky, Director Trendsity, regional qualitative research that was proposed to investigate the relationship women have with their emotions and that was the kick to the latest release of the brand: Rexona Women With the ability of their’s research centers, the companies have invested in development and innovation in products and new formulas and deodorants division was no exception. The quantitative sociological study carried out by Trendsity was supplemented by a quantitative analysis conducted by clear data through a survey of 1500 women from 18 to 35 years in Argentina, Brazil, Chile, Colombia and Mexico. Emotional Compass The qualitative report, in line with international research concludes that women who live their emotions intensely are more likely to stay healthy, physically and emotionally, and therefore meet their social roles with greater energy and fullness, achieve their goals and improve family relationships, couples, work and friendship. The ultimate pop-analysis which also included interviews with prominent international references in various fields related to the topic was off-feminine emotions of vulnerability to indicate them as a source of strength to the guide to action. Research indicates that 70% of respondents believed that emotions are a source of strength and in Argentina the trend replies: 7 out of 10 agree with the statement. Rexona launched Rexona for woman with a differential antripespirant formula which offers proven protection against emotional perspiration, which according to testings conducted by the brand showed that women exposed to emotional stimuli-first day of work, public display, an appointment, etc., can sweat up to five times. “Today's woman are more intensely than ever: is active, flirty, tender, mother, daughter and wife, friend and professional," says Jorgelina Racciatti, Marketing Manager for Rexona Women-we represent this new woman and offer the most effective protection , so they can experience and enjoy these emotions. On the product in particular has special microcapsules that sit on the surface of the skin and in a situation of emotional intensity dissolve in sweat, releasing fragrance as much protection. The new variety has a new fragrance that mixes oriental notes (vanilla, amber and flowers seats) with touches of wood and fruit and gourmand (circuela, grape and peach) for aerosol presentation. The spot advertising campaign accompanying the agency were developed by Ponce and show the woman trapped by an emotional situation to be encouraged to deal with the help of Rexona for woman. Study Results: In order to know the experience of women in this regard, Rexona make a qualitative-quantitative study in Latin America, and we have this amazing resoults:
  6. 6. • Eight out of ten women consider that emotions are very important in their life. • 90% of women in Latin America believe that "feel intensely worthwhile ago live " • 70% of women believe that emotions are not a weakness but a strength. • 7 in 10 women say that emotions are a powerful tool for development. • 7 in 10 women in Latin America recognize the emotion as a resource for action • There is evidence that intense feeling is manifested through the body: 7 out of 10 women admit that sweats more than normal when you experience emotions. According to the report qualitative and in line with the latest research on global trends, shows that women today choose to live their emotions with intensity and that makes owning a particular strength. It ensures that those who are in touch with their emotions are more likely to remain vital, both physically and emotionally and, accordingly, may fulfill their social roles with greater energy and fullness. The study examines in turn the expansion possibilities and potential that emotions give women in different social dimensions: family, couple, work and friendship. B. PRICE: • Objective of the company in setting prices: is to maintain the growth momentum and deliver competitive levels of profitability. The company wants most that all to have a good sustainability in the market and also offer a good quality product to their customers and innovating. Rexona is the leader in the deodorant products its prices go from US $2 to US $7, selling fortified products at affordable prices while maintaining adequate Margins, that’s the strategy. The company uses understanding of consumers ‘everyday needs for nutrition, hygiene and personal care to create high-quality branded products that are safe to use, competitively priced and accessible even to the remotest consumers. • Price setting according to product mix. (It is important to understand the type of product being evaluated). Product line, secondary products, Substitutes products, etc. Rexona is a brand that have most that all deodorant products but also manage others like soap, and has a large line of products. Rexona line of products
  7. 7. Powder y Sensive Bamboo Creme & Citrus y Sensive Oxygen Neutral $6 200 $6 300 $7000 Women crystal Women Rexona Cool Green Stick Rexona intense Invisible neutral teens $5900 $6 983 $6000 $8 981 $6 165 $ 5500 Rexona Teens Dance Rexona Teens $4900 $6650 Nivea is the biggest competitor of Rexona, Nivea prices area little bit more expensive that Rexona goes from US $5 to US $8 but this one is also an important and prestigius brand, but even like that Rexone keep been the leader in deodorants. The prices of these products are very affordable for everyone, and rexona is always giving the best quality to their customers. When they rise the prices the do it, thinking in giving a better service to their customers, and also in having a good relationship with the cutomers, that goes beyond the price. • Price adjustment strategy: Discounts, sales, price segmentation, psychological prices, promotional prices, international prices. Promotions and 2 x 1 are evident and very strong. Build brand and gain market share in these circumstances will be one of the difficulties, especially since the game rules are defined by the price today. But there may be something to his favor, taking in count the difficulties in the negotiation processes between suppliers and chains, this ones are demanding safer returns against sales variables. The category of deodorants has a high level of promotions and the chains are putting much of their space in these deals. "But for them it is important to optimize their space with more profitable products," says an analyst. That is, promotions and sales tactics might be adjusted for a longer term strategy. But this is just an alternative that is looming in a market still dominated by the price variable.
  8. 8. • Price Changes: Increasing prices, consumers and competitors reactions to a price increase. When Rexona changes the price, they do it in a very moderate way, and the customers, doesn’t reject them because they like the product and they re faithful to it, and also when they do they are offering a new product with some added value; most that all they think in prices that be accessible to all customers and of course they have a large product line where each person can choose according to their financial situation. DISTRIBUTION/PLACE Rexona is a deodorant brand that is manufactured by Unilever S.A, it has a huge distribution channel for all over the world, represented by warehouses. Rexona does not use its own fleet of transportation, how ever it has outsourced its distributors process to various third party distributors in each country, exclusively dedicated to Unilever transportation. These distributors then supply the product all over the rest of the market. Unilever’s point man on contract packaging projects. He works with about 20 contract packagers on more than 100 outsourced packaging projects per year, and says logistics play a large role in selecting a co-packer. “Price is very important, but the location of the co-packer is so important because of the high cost of transportation,” Potochar says. “This factor can override even the most inexpensive cost structure a co-packer could have.” CHANNELS: Rexona uses two kinds of channels, the first one is the modern channel, which are the most importants supermarkets in the country like Almacenes EXITO, Carrefour, Cafam, etc in Colombia, and internationally the most importants ones are Wal-Mart, Tesco, Carrefour and Metro, predominate in the US and Europe and have a growing presence in developing markets. Also, Rexona has the traditional channel that works with distributers, they go to the small stores located in all the country. In the Metropolitan Zone, there are fIVE distributers: Pond Pan, H y R, Zona 2, Zona 3 y Tropicna. The reason why Rexona has two channels is because they need to distribute their merchandize to the Biggest Supermarkets and also to the towns, stores, which is easier and more efficient to be distributed by distributors, using the the division of labor. CHANNELS MEMBERS: Rexona deals with retailers, and their characteristics are their wide network that are recognized in comunity like: supermarkets, drugstores, department stores. Rexona also sell products through a more diverse group of distributors, wholesalers and small, independent outlets and kiosks particularly in developing and emerging markets. Meeting the needs of
  9. 9. these different types of retail channels will contribute to their growth inthese markets. DISTRIBUTION INTENSITY: Rexona has a selective distribution, depending on the income of the income where they are operating, they offer differents kinds of products with differents characteristics. DISTRIBUTION STRATEGY: Unilever has specifics distribuirors in every region that only can sell Unilever`s products, this distribuitors are in charge of in specific convinience stores that are recognized inside the comunity with the requirments of sellings highers than one thousand million pesos. Products are physically distributed through a network of distribution centres, satellite warehouses, company-operated and public storage facilities, depots and other facilities. DISTRIBUTION IN COLOMBIA: Unilever does not have its own transportation, they hire compmaies of transportation, the most importants ones are Icoltradas and Coltanques. THE PALMIRA´S CENTER OF DISTRIBUTION: Unilever accelerates its logistic to increase its productivity and acceding to seven markets in South America by allying with DHL are built the biggest center of in Palmira- Colombia, investing US$32 millions. This is a really strategic distribution place because it is close to the Buenaventura port, which is the main one related to charges in the country, becoming easier the importations and exportation. Unilever has 120 distribution centers in America, but the one that is located in Colombia is the the best in technology, infrastructure, Colombia attends to seven countries in South America. In Colombia there are important retailers like Almacenes EXITO, Carrefour, Olimpica, Pomona, Carulla, between other supermarkets. . PROMOTION • Promotion Mix: Explain how the promotion mix is compounded and how the budget is assigned.
  10. 10. MEDIUM Compounded by Budget Newspapers Complete page with a specific 5% advertising depending on the product. Ejm: Rexona crystal, Rexona citrus. Magazines Female target with complete full color 10% ads made by Sharemind. Large scale print advertising. Radio Very limitated. 5% Television TV commercials lasting 30 which 50% is part of a global campaign developed by Lowe. In the commercials Uniliver tries to reflect usual situations of the contemporanean woman. Also this enterprise always considerate the characteristics of female’s sweat. Outdoor An outdoor advertising effort from 15 % media Rexona targeting women who love fragrances. The posters invites women to remove a sample and keep it. Each week, the slips of paper were replaced with new perfumed ones. The spot advertising campaign were developed by Ponce and show the woman trapped by an emotional situation to be encouraged to deal with the help of Rexona for woman. Also, in some supermarkets Rexona uses Giant inflatables Internet Communication strategies include 15 % website, where consumers are invited to respond a test to see if they can sweat more than normal and require an effective product to help them to continue their activities without discomfort. This online initiative is
  11. 11. strengthened by TVs commercials. Social web sites like: facebook and Myspace. Amicada, Inc., a provider of technology for the delivery of online permission-based advertising via full- motion, full-frame video, had signed an agreement with Unilever. Under the agreement, Unilever will use media space on Amicada's on-line advertising system, delivering advertisements originally produced for television.
  12. 12. • Analyze the activities the company undertakes for each of the promotional elements. o Personal Selling: Objectives: -Strengthen company-client relationship, through the effective use of technology. - Inform consumers about the development of new products and possible improvements. - Seek new ways of bringing our products within the reach of people of all income levels. - The company is committed to building trust through responsible practices and through transparent communication -Unilever will use a combination of channels, which includes product labels, websites, carelines and/or consumer leaflets to communicate openly with our consumers -Promoting healthy lifestyle and physical activity. - Provide clear information which allows the consumer to make the right choice- -Recognise that in some countries more information is required. - Identified the consumer life style to offer a special product that consumer requires. o Instruments: -ONLY IN INDIA: Women in self-help groups across India are invited to become direct-to-consumer sales distributors.The company provides training in selling, commercial knowledge and bookkeeping to help them become micro-entrepreneurs. -Internet: Blogs, facebook, Unilever official website, rexona for women official website. - The customers that have long term relationship with the company, they receive calls and get information about promotions and new products. -Samples on supermarkets. o Development and evaluation (For the company): -The companie should improve selling door to door. -Unilever´s business and sustainability strategies are starting to come together. The company is finding that addressing society’s concerns holds the potential for business growth and success. One such opportunity is to meet the needs of low-income consumers in developing and emerging markets. -In 2008, 47% of their sales were in developing and emerging markets. The company expects to see this figure increase as populations and purchasing power grow, particularly in Asia. -Their aim is to satisfy the needs and aspirations of consumers at all levels with quality products. The company would achieved through new distribution channels, using smaller formats or creating new products, the company is trying to develop business models to reach the poorest members of society. However, producing and selling products for a few cents while making adequate margins is extremely difficult.
  13. 13. -Consumers may be concerned about the use of particular chemicals in their products. The company works in partnership with a range of organisations to strengthen consumer confidence in our products. -The company supports their brands and their growth through compelling and competitive levels of investment in advertising and promotions. The breadth of both our portfolio and our geographic reach also help us mitigate general economic risks. -Advertising and promotions as a percentage of sales was in line with the previous year. o Sales Promotion: The sales promotions are based on things that women are very interested like beauty. For example one famous promotion was: With the purchase of one of the Rexona´s women products, the first 5000 shares won: 400 sessions of Makeup, 800 Duyos Tops , 800 Duyos Sweatshirts, 2000 Duyos Bags. Now they are concentrared in the design of handbags for women. For example here in Colombia, Rexona and Hernan Zakhar allied to spoil women. Therefore, the Colombian designer, design a line of handbags made exclusively for Rexona women. Rexona for women use more frequently television and Internet as the media of promotion advertising. Most of the commercial advertisements are made in such a way that the consumers are attracted to buy the product. Rexona promotes itself by providing new advertisements and making its customer aware of the availability of its new and improved versions of the product. They also promote via billboard, magazines and leaflets. o Direct Marketing: Company’s strategy. Rexona uses blogs and facebook groups where possibilitates a close relationship with the costumer, besides it is a way of being in direct contact with them. Stadistics of Internet users in colombia Comportamiento semestral S2 2007 - S1 2008 Clientes de Internet en Dic-07 Jun-08 Diferencia Cambio Colombia Acceso conmutado por 174,383 190,053 15,670 9.0% suscripción Subtotal Conmutado 174,383 190,053 15,670 9.0% Acceso dedicado (Cobre/FO/uO) 32,282 29,663 -2,619 -8.1% Acceso Dedicado Cable 428,587 524,032 95,445 22.3% Acceso Dedicado (xDSL) 693,133 965,293 272,160 39.3% WiMax 53,088 65,550 12,462 23.5% Subtotal Dedicado 1,207,090 1,584,538 377,448 31.3% Total Suscriptores 1,381,473 1,774,591 393,118
  14. 14. ANALYSIS As we can see, in Colombia the internet acess is increasing, so this is an important tool to let the costumers know about the product and give their opinion about the product. Rexona is using WAP content downloading with useful information for customers. This allows the company to bring information to the customer everytime and Rexona will assure that its consumers will receive the information. Also, contests or sweepstakes can be downloading and people can buy their products. o Public Relations: Public Relations activities promote a positive image, generate publicity and foster goodwill with the intent of increasing sales. Generating favorable media coverage, hosting special events and sponsoring charitable campaigns are examples of public relations activities undertaken by Rexona. Charitable campaigns: Global Public-Private Partnership for Handwashing: to promote handwashing with soap UNICEF: to combat child mortality through nutrition and hygiene Initiatives. In an attempt to separate the facts from the fiction and allay public concerns, Unilever recently partnered with Breakthrough Breast Cancer to host a seminar for journalists on breast cancer risk factors. The keynote presentation was given by Professor Alan Ashworth, Director of the Breakthrough Toby Robins Breast Cancer Research Centre. Professor Ashworth discussed the latest scientific thinking on breast cancer risk factors, as well as some of the popular scare stories surrounding breast cancer that are frequently reported in the media. Advertising: Advertising is any paid form of media communication which includes print ads in magazines, trade journals and newspapers, radio, Transit cards advertisement on buses, trucks and bus stops and TV announcements, Web-based visibility- building, and billboards. Through advertising, Rexona publish few TV advertisement, commercials and announcement. o Publicity: Rexona provide sponsorship in reality shows, soccer teams of women and soap operas Rexona’s break through commercial that focuses on skin care while strengthening the brand’s overall feminine appeal. The advert follows an amusing paper doll character who finds herself in sticky situations, but Rexona deodorant is always there to land a helping hand. Rexona Women from communicating the durability and reliability (it won´t let you down) years ago, Unilever decided to brand for the category of deodorants, the company become more creative and show delicacy and allure. In the version for women, the brand
  15. 15. is focused on making contact with the target and the results led to launch a new line specifically formulated for the care and treatment of the area. In TV commercials the company tries to reflect how an athlete, a housewife with children and an executive, all of them have an active and intense style of life. This way of versioning the global launch, is also linked to add in the communication, the daily problems of women today with humor and wit. BIBLIOGRAFIA: Annual Report and Accounts 2008: Sustainable Development Overview 2008: 2008_v3_tcm13-163522.pdf Servicio al cliente: 018000527517 Unilever Bogotà: 4239700