axe brand dossier

BRAND DOSSIER

AXE DEODORANTS

DEVELOPED BY

NIMAL NITHYANANDAMRAM MOHAN M.P.NIVEDITA SENSRIRAM S.R.

Agenda

• Brand history and its global expansion• Positioning• Advertisement – AIDA• Segmentation• SWOT Analysis• Competition • Diversification• Distribution System• Future Directions• Survey• Hypotheses & Inferences• Recommendation

Brand history and it’s global expansion

• 1983 – UNILEVER launched AXE in France inspired by another of its brands IMPULSE

• 1985 – renamed AXE to LYNX in UK,Ireland, Australia, New Zealand

AXE launched next in Latin America, Asia, Africa

• 1999 - launched in India

• 2000 - launched in USA, Canada

Global Expansion in 40 countries

Positioning

• Naughtiest

• Seductive becoming a babe-magnet is just

a spray away

• Young,Trendy same positioning space as a

Fastrack or Pepsi

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• A- Awareness• I – Interest• D – Desire• A – Action

Awareness• WHY? to accelerate market penetration • HOW? Describing fragrance by using a simple

descriptor eg : AXE Dark Temptation – as

irresistible as chocolate

• WHY? Testers not available everywhere

• THEREFORE? Unique descriptors for each variant for

the clear understanding of the customer

Interest

• HOW? Humour

Desire

• HOW?Brand positioning as “babe-

magnet”

raised to sublime heights

with campaigns such as

“Even Angels/Goddesses will fall”

Action

• HOW?

Promotional campaigns

CALL ME FREE WAKE UP SERVICE

• Sales promotions

Sweepstakes : AXE chits with phone nos. in Levis jeans, where AXE customers could call to connect to an AXE angel

Fragrance cards in CCD, bar, club outlets

Promotional campaigns

AXE CALL ME

3.5 million calls 35% repeatcallers AXE WAKE-UP SERVICE

SegmentationGEOGRAPHIC

URBAN

SEMI - URBAN

DEMOGRAPHIC

AGE GROUP : 16 -25 YRS.GENDER : MALEINCOME GROUP : MIDDLE AND UPPER MIDDLEOCCUPATION : STUDENTS AND BACHELORS

PSYCHOGRAPHIC

LIFESTYLE : OUTDOOR ORIENTEDPERSONALITY : FASHION ORIENTED, TRENDY

BEHAVIORALOCCASSIONS : REGULARBENEFIT : QUALITY,ECONOMICALUSER STATUS : REGULAR USERUSER RATE : MEDIUM

SWOT Analysis

Strength

1. Each of the fragrances is created by international fragrance diva Ann Gottlieb.2. The formulation is a base with higher efficacy.3. Excellent advertising targeting the youth.4. Good distribution, Promotions and campaigns for luring customers.5. Also provides grooming range like shaving gel, foam, After-Shave lotion, Cologne Talc, shampoo & conditioner, face wash, shower gel.

Weakness1. Only an urban market phenomenon.2. High pricing reduces the target market.3.Controversial advertising often leads to legal issues.

Opportunity1. Coming up with Limited Edition fragrances.2. Tie up with gym chains.

Threats1. Deodorants’ sales are seasonal. Maximum sales happen in the summer months (April to September).2. Competition from Premium Segment Deodorants like Burberry, Body Shop.

Competition

Tackling competition – ARMPIT WARRIORS

Principle of Defensive Warfare :-

Brand Cannibalisation launched “AXE” anti-perspirant to take on NIVEA Silver

Protect & Garnier Mineral

Widening the cake, not the slice Market penetration of deodorants - 2-3% AXE – 25% market share 2009 - Rs.500 cr, now - Rs.900 cr

Diversification

Capturing the entire male grooming kit

AXE Deodorants AXE Anti–perspirants AXE Hair – shampoo & conditioner AXE Face – scrub, face wash, shaving gel, after shave AXE Shower gel

AXE ANARCHY for HIM & for HER

Future directions

• Move to digital medium to understand young men’s consumption habits

Consumer engagement through online games

AXE Instinct• Played by over 3mn , 55% repeat players

AXE Musicstar• Played by over 4 mn

AXE Angels fan page on facebook –

over 7 lac friends

Survey

Target Group : young males between 15-25 yrs.

Sample size : 60

Hypothesis 1

• AXE is able to differentiate itself from other male deodorants through its advertisements.

Advertisements as differentiators

Attributes through Ads Frequency of Ads seen

Highly

Masculin

eSe

xyCool

Youth Cen

tric

Adventuro

us

Naugh

ty0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Chart Title

Park avenueSet Wet ZatakAdidasAxeGarnier MenCintholWildstone

Axis Title

set wet Adidas Park Avenue

Garnier Men

Axe Cinthol Wild Stone

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Chart Title

Never seen Sometimes seen Seen a lot of times

Inference

Positioning established as the naughtiest brand, highly youth-centric, extremely sexy, and highly masculine.

Ads conveyed the same and differentiated the brand from its competitors.

Hence, hypothesis 1 is proven to be true.

Hypothesis 2

• Axe customers have low brand loyalty.

Never10%

Once20%

Twice22%

Thrice25%

Four times or more23%

Change of Brand Per Year

1 time18%

2 times23%

3 times22%

4 times 8%

All 5 time

s2%

Never27%

Repeat purchase

I'll buy another brand42%

I'll go to another shop to buy my brand

40%

I'll search for my brand and if

still not available ,i'll buy another brand.18%

Brand loyalty

Axe33%

Others67%

Brand loyal to Axe

67%

33%

Brand loyalty

I'll go to another shop to buy my brand

I'll search for my brand,if it's still not available,i'll buy another brand

2 times33%

All 5 times17%3 times

17%

Never17%

4 times17%

Latest purchase of Axe loyal customer

Inference

• 33% of 30% of AXE loyal customers never change or change their deodorant once on an average per yr .

• Out of these 33% no AXE loyal customer is ready to buy another deodorant in the absence of AXE, and their last 5 purchase behavior of AXE is shown below.

Hence, Hypothesis 2 is disproven.

Recommendation

• The central theme of seduction is also being played with by other brands too as Set wet Zatak and Wildstone for the young male. Hence, the differentiator factor of AXE is reducing.

• Our recommendation is that AXE should reposition itself for a TG which is above 25yrs aged males focusing on other attributes such as cool and adventurous which it’s low on scale presently.

Thank you