soap industry presented by: abigail clifford, tess berghoff, mahak goel, udeme akpaete
TRANSCRIPT
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Soap IndustryPRESENTED BY: ABIGAIL CLIFFORD, TESS BERGHOFF, MAHAK GOEL, UDEME AKPAETE
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Why the Soap Industry?
Interesting
Product positioning comparable to diamond industry
Relatively inelastic demand
Homogenous nature demands unique advertising
Differentiation based on brand image
Traditionally steeped in negative advertising
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Industry BackgroundABIGAIL CLIFFORD
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Industry Background Soap is a multi - billion dollar industry
Majority of soap is sold in supermarkets and mass merchants
Total number of units sold each year is 3.1 million (10 billion pounds)
Hotels discards 2.6 billion bars of soap every year
Humanitarian efforts for washing hands
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History Production began during the colonial times where main ingredients where in abundance
Remained a locally produced good until Revolutionary War
Early 19th century and the rise of the Textile Industry stimulated the rise of soap making firms
By the early 1840s Cincinnati became the soap industry leader containing 17 companies including Proctor & Gamble
No Advertising, No Branding, Small Firms
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Post Civil War Emergence of brands and product differentiation
Advertising became the biggest innovation
Invention of radio created a new avenue of advertisement
P&G pioneered radio advertising through creating daytime serial dramas
By 1962 soap firms were spending 250 million annually on advertising 90% on TV P&G spending 190 million
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Todays Market Aging population has paved the way for new companies and increased
product differentiation
Rising germ free attitude
Increased preference towards liquid soap over bar soap
Innovation in firms to create soaps with dual purposes
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Brand Market Share
Dove22%
Dial14%
Soft Soap9%Lever 2000
8%
Irish Spring7%
Caress6%
Olay6%
Other29%
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The industry 650 establishments in the US alone
The change in the millennium market creates slightly easier entry through change in preferences and innovation
Still highly competitive
No government regulations
Success comes from businesses of scale
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Advertising DifferencesWOMEN
Advertise to achieve emotional response
Highly combative through comparative advertising
Easy to repeat innovative additions to product
MEN
Focus on overall image
Offer many more aspects to brand
More persuasive than combative
Scent of product large factor
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Organization Profitability of individual companies depends on efficient operations and effective sales and marketing
Pricing set by the firms
The top 50 companies control 90% of revenue
Most firms manufacture in similar manners
US is the biggest consumer of soaps
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P&G In August they began to streamline their brands down to their 80 most profitable
Their company market share is divided into personal care 35%, food 28%, homecare 18%, and refreshment 19%
The overall goal is to reduce carbon footprint through innovation and sustainability
In 2014 they recorded 81 billion in sales
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Unilever Unilever is a Britain founded
multinational company 400 brands focused on health
and well being In 2014 they recorded a profit
of 48.44 billion euros Revenue of personal care
products 17,739 billion euro Skin care and hair care market
worldwide 12.9% Grocery store market world
wide 50.1%
36%
27%
19%
18%
Personal Care FoodsRefreshment Home Care
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Industry Market Share
Unilever42%
Procter & Gamble
20%
Henkel Group 11%
Colgate Palmolive Co.8%
Johnson & Johnson7%
Private Label7%
Others 5%
Unilever Procter & Gamble Henkel Group Colgate Palmolive Co.Johnson & Johnson Private Label Others
HHI= 2200.14(Highly Concen-trated)
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Female Personal Care BrandsTESS BERGHOFF
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Dove Subsidiary of Unilever
Founded in 1957 Dove Beauty Bar
Headquartered in the United Kingdom
Target Market: Women 20-40
Estimated $5.8 Billion brand value
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Dove Advertising◦ Original focus on product attributes
◦ Ads featured traditional models◦ 2004 Campaign for Real Beauty
◦ Celebration of diversity◦ Widen definition of beauty
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Dove AdvertisingDove ‘Beauty Sketches’ 114 Million Views in one monthLead to 4 Billion blogger media impressions
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Dove AdvertisingSocial Media Presence
◦ 23 Million Facebook followers◦ 164,000 Twitter followers◦ Interactive Community ◦ #choosebeautiful campaign
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Dove AdvertisingCorporate Social ResponsibilityAdvertising Goodwill
◦ Image Acceptance◦ Breast Cancer Campaign
Launched ‘Movement for Self Esteem’ in 2010◦ Partnered with the Global Advisory Board, Boys & Girls Club, Girls Inc, and Girl Scout
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Olay Subsidiary of Proctor & Gamble
Founded in South Africa in 1953 “anti-aging” fluid
Acquired by P&G in mid 1980s
Target: Women 30-50
Estimated $4 Billion brand value
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Olay Advertising◦ Focus on Elegance and Exclusivity◦ Adherence to Traditional Beauty Standards◦ Models and Celebrities
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Olay Advertising◦ 2012 Launch of Olay Essentials◦ Attempt to target a younger customer
base◦ Launch of mobile app and
advertisements
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Olay Advertising◦ 2014 ‘Your Best Beautiful’ Campaign◦ Campaign Ambassador Katie Holmes◦ “I want to have skin like a royal”
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Olay AdvertisingOnline Social Media Presence
◦ 6.3 Million Facebook followers◦ 100,000 Twitter followers◦ ‘Olay for you’ website & mobile app
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Male Personal Care BrandsMAHAK GOEL
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Axe Overview Subsidiary of Unilever
First launched in 1983 in France
Target Market: Men 18 – 30
Estimated Brand Value: $421 Million
Products: Deodorants, shampoo, shower gel, aftershave, cologne, skin care, hair styling products
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Axe Advertising The Axe Effect Campaign
Popularity increased in 2000s in America
Main focus is how the everyday man is irresistible when he wears Axe
Heavy use of models
Sex Appeal
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Axe Advertising
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Axe Social MediaShower Pooling Campaign
Facebook Likes: 4M
Twitter Followers: 135 K
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Axe SWOTStrengthsFragrance
Brand positioningVariety of productInternational reach
Availability
WeaknessesNarrow Target
ExpensiveSexual Appeal
Products overlookedDesign
OpportunitiesLarge product line for men
International expansionBrand image in sports
Social media expansion
ThreatsCompetitors
Focused solely on sexDegrades women
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Old Spice AdvertisingFounded by the Shulton Company
Introduced Early American Old Spice for Women in 1937
Closely followed by Old Spice for men in 1938
Bought by Proctor and Gamble in June 1990
Target Market: Men 18 onward
Estimated Brand Value: $903 Million
Products: shaving cream, aftershave, deodorant, body wash, and body spray
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Old Spice AdvertisingThe Man Your Man Can Smell Like Campaign
Marketing to Women for Men’s Products
Heavy focus on masculinity
Celebrity Endorsement: Former NFL Player Isaiah Mustafa
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Humor Advertising
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Old Spice Social MediaResponse Campaign in 2010: Answering Twitter and Facebook Queries
Over 180 short commercials
Targeted social media celebrities, such as Ellen DeGeneres
Personalized ads
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Raw Data AnalysisUDEME AKPAETE
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Sales in the Industry
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Average Amount per Ad
Dove Axe Old Spice$0
$50,000
$100,000
$150,000
$200,000
$250,000
$84,300.00
$54,670.21
$229,557.14
Brands
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Average Advertising Time
14
14.5
15
15.5
16
16.5
17
15 15
16.49
Brands
Seco
nds
AxeOld Spice Dove
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Old Spice Primetime Advertising
NFC CHMPSHP GM
NBA BSKB PLYFF GM
GOTHAM-FOX
BROOKLYN NINE-NINE-FOX
WORLD SRS GAME 5
0 0.5 1 1.5 2 2.5
Old Spice Advertising
Number of Advertisements
Prog
ram
s Ad
verti
sed
On
• Majority of prime time advertisements took place on sports related programming
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Axe Primetime Advertising
NCAA BB PLYF GM
NBA BSKB PLYFF GM
NBA COUNTDOWN-ABC
SATURDAY NIGHT CLG FTBL
1
1
1
5
Number of Advertisements
Prog
ram
s Ad
verti
sed
On
• All of the advertisements took place during sports-related programs
• Reinforce males as target audience
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Dove Primetime Advertising
• Advertised on 100+ shows during primetime
• Indicative of wide audience reach
• Larger target audience
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Olay Primetime Advertising
Category 1 Category 2 Category 30
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Series 1 Series 2
No soap advertisements by Olay during prime time
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Olay
• “Age is the enemy”• Age renewal, vanishing creams • Brand image has trickle down effect to their soap brand
Target Audience-Middle Age women hoping to retain youth
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RecommendationsOlay
Look for growth potential in soap segment
AxeShow more initiatives towards CSR
Engage the female audience to buy for significant others
Old SpiceIntroduce “traditional” line, catered to men 40+
Capitalize on gaps in market for older men
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Recommendations IndustryReact to sluggish sales for bar soap, shift emphasis
Complementary Advertising (Health & Beauty)
Cater towards a larger ethnic audience
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Questions? Thank you!