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Old Spice: Wild Collection Case Study
Old Spice is a male grooming brand owned by Procter & Gamble that is introducing a new product line called the Wild Collection. The Wild Collection aims to appeal to older men ages 18-24 by featuring "primal" scents that bring out men's wild, masculine side. It will include 3 new scents - Foxcrest, Hawkridge, and Wolfthorn - available across a variety of product categories from deodorant to cologne. Old Spice will promote the new line using their typical marketing strategies of television advertising, digital media, and celebrity endorsements to position the Wild Collection as capturing the raw power of nature and appealing to a man's call of the wild.
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Old Spice: Wild Collection Case Study
- 1. Old Spice andthe Wild Collection Mark, Cindy, Joey, Rob
- 2. • • • • • • Manufacturer: Procter andGamble Founded: 1934 Acquired by P&G in 1990 from the Shulton Company Industry: Male Grooming Products P&G Annual Marketing Budget: $10 billion Wieden + Kennedy advertising firm for Old Spice Old Spice Background
- 3. • “Provide brandedproducts and services of superior quality and value that improve the lives of the world‟s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders and the communities in which we live and work to prosper.” • “The idea is that these primal scents bring out the wild, masculine side of men” while having “a little more sophisticated look and feel” Old Spice and Wild Collection Mission Statements
- 4. Situational Analysis (size, growthrate, geographic trends) • Market Share of Old Spice: 37.8% - Men‟s Deodorant 6.6% - Men‟s Fragrance 16% - Shaving Cream
- 5. External Analysis: CompetitiveAnalysis • Major competitors: Axe, a Unilever brand; and Right Guard, a Dial brand. HOW DO COMPETITORS COMPETE? • PRODUCT, PRICE, PLACE, PROMOTION • • • • Axe generally targets the teen to late teen demographic Axe Apollo Campaign Right Guard markets to the sports enthusiast Both competitors can be found at the same places and cost about the same. ARE THEY VULNERABLE TO YOUR NEW OFFERING AND HOW WILL THEY RESPOND? • Axe is vulnerable because as users in their target market age, they will be likely to switch brands to a more mature positioned product such as the Wild Collection.
- 6. • Financial Performance/Operations:
- 7.
- 8. P&G departments: Janitorial& CarpetCleaning Services Industry Pet food Manufacturing Industry Personal Care Products Manufacturing Industry Soap & Other Detergent Manufacturing Industry Snack Foods Manufacturing Industry Pharmaceutical
- 9. • Wild Collection,Red Zone, High Endurance, Fresh Collection, Red Zone: Sweat Defense, Classic, Odor Blocker, Dry Skin Defense • Antiperspirants, deodorant, body wash, body spray, bar soap, shave gel and fragrance • Return Policy: If you received a damaged or defective item from us, or the wrong item was shipped to you, you will not be responsible for return shipping charges and we will not charge any restocking fee or other fee in connection with the return. In addition, you will receive a full refund for the item. For all returns other than damaged, defective or incorrectly-shipped items, we will charge a return shipping fee of $5.00 per package returned and a restocking fee equal to 20% of the purchase price for each item returned INTERNAL ANALYSIS: PRODUCT/SERVICE ANALYSIS
- 10. • Stock • Current:77.94 • 52 week: 59.07 - 82.54 • SEGMENTATION ANALYSIS: • • • • • • TARGET MARKET: Males 18-24 Who: Males usually buy; some females What: Primarily men‟s deodorant; in personal grooming When: shopping for the house Where: Convenience, grocery stores, and super-stores Why: Old Spice provides branded products and services of superior quality and value that appeal to young men Demand/Customer Analysis
- 11. SWOT Analysis: Strengths •Brand recognition; marketing • Many products offered • New products liked by younger demographic • By creating more products and product line Old Spice benefited from allowing consumers to experiment within the brand; retaining their market share. • • • • • • Leading market position from a strong brand portfolio Significant R&D and marketing investments Social Media Strategic acquisitions expanded P&G's product portfolio Increasing presence in the developing markets Strong cash productivity
- 12. SWOT Analysis: Weaknesses •Neglecting older demographic • P&G probably relies on Gilette for late 25-40 demographic but for Old Spice, it is a weakness. • Increasing instances of product recalls • No shampoo products. Axe has shampoo products on top of their deodorants and body washes
- 13. SWOT Analysis: Opportunities •Expand market, focused on BRIC countries • Old Spice is not present in these countries that have incredibly rapid economic growth. • • • • • • The Growing middle classes in these countries could present big opportunities for Old Spice in the future. Growing personal care and household care markets Growing men's grooming industry Initiatives to improve productivity Expand Old Spice Body Spray product line Development of an Organic/Natural Product Line
- 14. SWOT Analysis: Threats •Competitors: Axe and Right Guard • Negative skin reactions caused by high scent loadings; lost customers • This can lose customers to a competitor and deter new customers from the brand entirely • Rising input cost inflation • Store brand imitations • “Classic” products target market ages
- 15. Marketing Strategy: Goals •Old Spice is primarily geared to men ages 18 to 24; The Wild Collection aims at the older end of that spectrum to keep users in brand • Increase brand recognition through ad campaigns and social • Grow in Sales and Volume • Increase already ruling market-share for men‟s grooming products. • Continue to encourage young to middle age men with innovation of products • Develop new “manly” scents
- 16. • Concentrated marketingstrategy- Large share of one or more segments of a market. • The modern Old Spice brand contains numerous male grooming products, but is segmented in five clear lines, comically referred to as the “Gentleman‟s Stockade”: Antiperspirant, Deodorant, Body Wash, Body Spray and Fragrance. • The product lines are expanded primarily based on scent and product type and all utilize a similar color scheme containing red or white packaging, various sailing ship logo and “Old Spice” written in classic cursive. • All Products look familiar • Ex:This Powerpoint and products Marketing Strategy: Product
- 17. • 3 newscents -- Foxcrest, Hawkridge and Wolfthorn -- are available in stick deodorant, body spray, body wash, after shave lotion, and new cologne spray. • Foxcrest suits the man of the day, with the always hirsute mix of woods, musk, green herbs and a dash of citrus. • a cool and cunning fragrance that keeps the senses sharp, yet seductive. • Hawkridge was crafted with date night in mind, mixing rich, red fruits and chocolate with finishing notes of musk and sandalwood. • Formulated with spicy, manly ingredients to capture the raw power of nature. • Wolfthorn is for the nocturnal animal; a pulpy mix of citrus and mango with bases of vanilla and carnal musk. Wild Collection: Product
- 18. • Price: $2-5(Excluding shaving cream) • Priced fairly enough to be in a wide range of stores • Higher quality products; higher price • Old spice bundles products together • Cheaper to buy in bundle rather then individual products • Gift sets come around the holidays Marketing Strategy: Pricing
- 19.
- 20. • Old Spicedeodorant can be found at almost any retail establishment. • Their product line is carried at mega-retailers such as WalMart, Costco, and Target as well as local grocery and convenience stores. Those options currently make up a large part of the sales percentage of deodorant. • Distribution • Options `gives consumers more choices which results in more volume • their already existing website which includes a list of on-line retailers that allows customers to see where products are sold in the nearest location Marketing Strategy: Placement
- 21. • The OldSpice brand has undergone significant repositioning since it was acquired by P&G, with a greater emphasis on a younger demographic. Before P&G Old Spice focused on the older male demographic. Products conceived before P&G are currently categorized as “Classic” and bear an older logo, color palette and product packaging. • Acknowledges old roots with “If your grandfather hadn‟t worn it,” it says, “you wouldn‟t exist.” on packaging. • Old Spice seeks to appeal to both men and women in their advertising so that women that are shopping will be more likely to purchase Old Spice products. • Old Spice encourages experimentation of products among young men. (Giving samples out at high school events) Marketing Strategy: Positioning
- 22. • The WildCollection harnesses is man‟s call of the wild. The collection‟s are spiced in just a way to give off the air of business, but not as usual • At the same time, as the advertising campaign makes clear, the scents are not meant to project that their wearers are wallflowers, but rather, that they are men who want to be viewed as manly, seductive and maybe a little intimidating • Representing the dangerous side of masculinity and inspired by the personality attributes, eating habits and mating rituals of wild animals, the Old Spice Wild collection is a sophisticated line-up of man smells that helps guys answer the smell of the wild. • Old Spice is primarily geared to men ages 18 to 24. WC aims at the end of the spectrum Wild Collection: Positioning
- 23. • In thegrand scheme of mannish history, Foxcrest Deodorant might be considered the turning point from wild stink to wild nights of face-winking and pleasurable food delicacies in the company of lady lovelies. • Foxcrest is a cool and cunning fragrance that keeps the senses sharp, yet seductive. • For cunning gentleman • Hawkridge: Get ready for the hens to invite you into the coop • Wolfthorn is marketed as a fragrance for the man who can run alone or with a pack and for nocturnal creatures. Wild Collection: Positioning
- 24. • Old Spicespent $46.2 million on advertising in 2011 and $16.6 million in the first nine months of 2012 • Old Spice‟s promotional strategy has been extremely successful over the last 2-4 years • In the last 3 years, Old Spice has focused heavily on television advertising. • Most notable to consumers are their effective use of advertising, sales promotion, event sponsorship, use of digital media and public relations. • Old Spice commonly uses celebrities in their campaigns; • Fabio, Terry Crews • Their television advertisements had a carried over to digital media. Old Spice uses Twitter, Youtube, Facebook and their company websites to promote their brand. Marketing Strategy: Promotion
- 25.
- 26. • In theyear following “The Man Your Man Could Smell Like” campaign, Old Spice received 40 million Youtube, increased Twitter followers by 2,700%, Facebook traffic increased 800% and website traffic increased 300%. • Making effective use of digital media has strengthened Old Spice‟s connection with their target market and created mass appeal. • The humorous creative frames Old Spice products in a way that they can contribute to confidence and attractiveness, playing on male bravado. Marketing Strategy: Promotion cntd.
- 27. • Old Spiceemploys direct marketing through their displays techniques in stores. • Men‟s grooming products are typically found in the health and beauty sections of stores. By building on the expanding “male grooming” market, Old Spice has been a lead contributor to the development of the concept of “Man Aisle”, a direct marketing technique creating a separate aisle containing all male-specific products as opposed to mixing them in with female products. Marketing Strategy: Promotion cntd.
- 28. • Advertising createdby Wieden + Kennedy • Introduced during the third quarter of the Super Bowl • Advertised through TV, print, and online ads, as well as interactive advertising via social media • The advertisements are focused specifically on the Wild Collection product line, however they show an „umbrella‟ effect that results in increased sales in all products. Wild Collection Promo
- 29. Foxcrest: • For cunninggentlemen Wolfthorn: • Alpha dog marketing style Hawkridge: • Women gaze approvingly at the Hawkridge user, but the primary message is not that his scent attracts women, like Axe ads, but that it vanquishes other men. • Intimidation is at the heart of a commercial for another scent in the line, Hawkridge. The other things that are important besides girls are money and winning. • the poker-game commercial might be especially appealing to men who started using Old Spice as adolescents and were at risk of abandoning it for what they perceived as more sophisticated products. In addition, Old Spice employed Mr. Wolfdog to address the brand‟s well-known humorous side to advertising Wild Collection Promo Wild Collection Commercials
- 30. • Facebook- Facbook.com/OldSpice •2.3 million likes • Twitter- @OldSpice; @DirectorWolfDog • 3,360 Tweets; 230k followers • Youtube- Youtube.com/OldSpice • 480 videos; 325,647 subscribers • 22 Wild Collection videos; 3mil views • Live business webinars; also on Ustream • LinkedIn- www.linkedin.com/in/directorwolfdog • 266 connections • Tumblr- MrWolfDog.com • 32 blog posts • Google+ • Mr. Wolfdog searched for an assistant through Hangouts • Pinterest- Pinterest.com/mrwolfdog Social Media Marketing
- 31. • Automated interactivefake business call: 1-866-695-2407 • Mr. Wolfdog played Xbox Live with fans • Music: • Released an album of inspirational business music • Spotify playlist • Ringtones • teachmetojob.com/ • oldspicewildcollection.com/ Social Media Marketing cntd
- 32. Why Old SpiceMarketing is Successful • Creative and Unconventional • Simple, easy and straight forward ads • Keeping their content relevant Use of social media to activate mass media • Mainstream media outlets used to tap into global audience • Superbowl XL viewers in 2013: 164 mil. (34% of US Population) • Millions of views on Youtube • Youtube • Facebook posts • Tweets • Engaged in personal conversation The WC campaign is exactly what consumers have come to expect from the brand: brilliantly tongue in cheek, self-referential and full of the viral hooks that the internet loves
- 33.
- 34. • • http://pawade0484.hubpages.com/hub/Old-Spice-Market-Overview http://www.nytimes.com/2013/02/01/business/media/old-spices-wild-collection-introduces-new-scents.html?_r=0 • • • • • • • • • • • • • • • • www.pg.com www.oldspice.com Mintel: Antiperspirants andDeodorants – US – February 2011 Mintel: Fragrances – US – September 2011 http://www.businessweek.com/magazine/content/04_44/b3906117.htm - Changing Old Spice‟s Message Mintel: Soap, Bath and Shower Products – US – March 2011 http://www.businessweek.com/magazine/content/04_44/b3906116.htm - Old Spices Extreme Make Over Data Monitor: Old Spice Case Study Mintel: Men‟s Toletries US September 2011 The Emerging Middle Class in Developing Countries by Homi Kharas – Centre For Development www.unilever.com http://www.colgatecommercial.com/ http://www.theaxeeffect.com/#/axe-products/understated-styling-aid http://www.colgate.com/app/Speedstick/US/EN/HomePage.cvsp The America's Intelligence Wire, April 27, 2011 pNA http://eylercreative.com/digital-media/proctor-gamble-slashing-traditional-media-advertising-budget-in-favor-of-more-efficient-digitalmedia/ http://www.nytimes.com/2013/02/01/business/media/old-spices-wild-collection-introduces-new-scents.html?partner=rss&emc=rss http://www.thedrum.com/opinion/2013/03/14/viral-chart-highlights-another-epic-marketing-win-old-spice http://www.worldsbiggestchart.com/ • • • Appendix: Charts, Tables, Bibliography
Editor's Notes
- #5 This section should include a detailed analysis of the market in which your company operates. Quantifiable data (including sources) should be used here. This will show if the Product/Service/Company is in a growing, flat or declining market.
- #8 This section should provide detail on the uncontrollable factors which may influence the success of your company/product. For example, if a new law such as the Nutritional Labeling Education Act is about to be enacted the marketing plans of a food company will be affected. If you know what is happening on the "outside", you can account for these situations in your plan.
- #12 Consumers have found that “the web is an easier way to disseminate information than traditional media. Blogs, discussion boards, videos, and reviews all offer glimpses of real-life experiences with products, and in addition to pictures of various styles and instructions about how to achieve certain looks, companies can also encourage interaction and questions while projecting their brand images”
- #13 Recalls: chemicals in antiperspirants cause negative reactions
- #14 Current research shows that consumers are using alternative shopping outlets in search of a deal (3). Old Spice can take advantage of this trend by utilizing their already existing website which includes a list of on-line retailers that allow their products to be available at any time. If you are unsure of where a local Old Spice retailer may be located, there is a zip code search option located on their webpage. This search option guarantees that anyone can find the closest accessible location offering Old Spice deodorant, therefore never allowing the consumer to be removed from their product.
- #15 When either of these brands create new products and or product lines it takes away from Old Spice’s market share. Axe billboard “For men that would rather be with women than on a horse”
- #17 In analyzing the market segmentation and Old Spice sales, it is clear that the “Classic” products are more limited and not as prevalent in the current product mix.Intergrade wild collection
- #19 Retail sales in the antiperspirant and deodorant market remained fairly stable from 2008-2010, which indicates that this product is resistant to recessionary pressures. Based on recent research data, most people spend between $2.50 and $4.50 per container of antiperspirant/deodorant. Statistically, 13% of males spend less than $2.50, 52% spend between $2.50 and $4.50, and 18% spend between $4.50 and $10.00. When researching pricing at a local supermarket and also online, it was found that the price of a container of deodorant ranges between $1.50 and $4.50, which is in line with the market research data.At the local supermarket, Old Spice antiperspirant/deodorant products have a price ranging from $1.50 to $4.39. This is reflective of a strategy that Old Spice offers a range of products depending on consumer preference of scent and/or performance. A smaller container with a basic scent was priced at $1.50, which meets the needs of someone who is price conscience, but also recognizes the value and quality of the Old Spice brand. As the prices increase for Old Spice so do the scents available and suggested performance. There is a $2.79 price level, a $4.19 price level, and a $4.39 price level. Old Spice’s High Endurance and Red Zone lines have higher price levels, as they suggest better performance. In addition, these lines have more scent offerings.
- #29 Advertising created by Wieden + Kennedy, a private advertising agency based out of SeattleThe Wild Collection has been advertised extensively through TV, print, and online ads, as well as interactive advertising via social media
- #31 “One example is our Old Spice campaign, where we had 1.8 billion free impressions” -McDonald
- #34 Internal: SalesReviewsPricing