degree men dry spray marketing plan

Degree® --- It won’t let you down

Analysts: Beining Gong, Ethan Goodstein, Meixuan Lu, Nick Maher, Tianpei Zhou

Table of Contents● Executive Summary● Financial Goals (P&L)● Competitive Market Analysis (5C’s)● Marketing Goal● Marketing Strategy (STP)● Marketing Tactics ● Financials ● Index

● The expanding market of men’s personal care gives Degree Men Dry Spray

Deodorant a good opportunity, but the subsequent competition is also where the challenge lies in.

● Our Financial Goal is to achieve $30MM retail sales in 2016. But due to the fact

that Degree Men Dry Spray is newly launched, the first year’s profit might be negative after all kinds of investment in marketing as a short-term effect.

● We intend to target Athletes and Sports fans through a combination of

marketing tactics including but not limited to: a new packaging design, 4 promotional activities, an endorsement campaign and partnerships with gyms.

● We want to make sure all the marketings would help reduce the product

cannibalization within the brand itself.

-Executive Summary

In general, the financial goal of 2016 is to increase retail sales by 50%, up to around $30 MM in one year.

-Financial Goal

~It won’t let you down.

As a member of Unilever brands, Degree has expertized on APDO products since the 1960s. We’ve expanded globally and become the world’s leading antiperspirant brand. We’ve also entered the world of professional sports, backing some of the world’s best athletes, like Stephen Curry.

Company - Brand

We have categorized our products based on three needs:

Featured MOTIONSENSE technology.

Trusted all day protection.

Excessive underarm sweating treatment

Company - Product Line

Our new antiperspirant technology MOTIONSENSE reacts to your every move. Unique microcapsules contain specially designed fragrances. When you move, the friction

breaks the capsules delivering a burst of freshness when you need it most.


Goal - Grow Sales of Degree Dry Spray by 50%.

❏ Goes on instantly dry for a cleaner feel.

❏ Superior 48-hour wetness and odor protection.

❏ Unlike other formats, dry spray antiperspirant contains no water or alcohol, which can leave a wet feeling residue. Nor does it contain wax, which can leave a waxy residue.

Introducing: Degree Dry Spray

------“The power of Degree in a spray antiperspirant”

Goal - Grow Sales of Degree Dry Spray by 50%.

We see the potential to grow from the anticipated expanding market of men’s personal care

As the men’s personal care market is anticipated to remain growing stably, gains could be seen by encouraging men to be more involved in their personal care routines.

Market - Men’s personal care market

Men’s interest in personal care products concentrate on functional staples

Men are more likely to use personal care staples such as oral care products and antiperspirants/deodorants and are less likely to use discretionary products such as facial or specialty skincare.


Men seek simplicity in their personal care routines and when shopping for personal care products.

Men are seeking ways to simplify the personal care process, both through improved retailing of products and through products that are simple to use. Brands can also benefit from featuring spokespeople whom everyday men can relate to by incorporating a variety of ages and body types into marketing campaigns.


Degree Men stably holds one-fifth of the male Antiperspirant/deodorant category in dollar sales.

Company - Market Share

**MULO is defined as Multi Outlet, representative of the following channels: total US Grocery, Mass, total US Drug, total Walmart, Dollar, Military, and Club.

Source: Information Resources, Inc., InfoScan Reviews/Mintel

MULO** Sales of Men’s Antiperspirant/Deodorant, by Leading Companies, 2013 and 2014

Company - SWOT Analysis

The majority of deodorants and antiperspirants purchases are taking place through “other retail channels,” including mass merchandisers, supercenters, warehouse club stores, dollar stores, off-price retailers, and convenience stores.

Collaborators - Main Distribution Channel

❏ Unilever, P&G experience APDO success related to

spray formats in 2014:

❏ Unilever: sales increase of more than 7% .

Unilever has positioned its spray deodorants as the company’s biggest deodorant innovation in the past 40 years.

❏ P&G: for Secret, sales increase by more than 5%

during the review period. Meanwhile, Gillette, the only P&G deodorant brand which does not come in a spray format, posted losses of nearly 4% during the review period.

An emerging trend in APDO products is a focus on products that go on dry, avoiding any underarm wetness as a result of application.

❏ Dry benefits are typically seen in spray formats

Context - “GO ON DRY” & Spray Format Trend

❏ APDO brands can benefit by

building off the success of spray

formats and expanding brand

lines to include deodorizing for the full body, not just

underarms.

Context - Full Body and Multi-Function Trend

❏ New personal care product launches have

focused on deodorizing the entire body, not

just underarms. Most launches have been

deodorizing body sprays, though Right

Guard has launched a deodorizing hair and body wash, adding increased competition

for APDO alternatives. Additionally, these

launches have been from brands not

traditionally associated with the APDO

market

Our current customers are mostly young southern men.Degree Men’s emphasis on powerful

strength is a powerful message for

young, Southern men. Adult male

Degree users are more likely to be in

the 18-44 years age group, with those

in the 25-34 years range using the

brand more frequently (index 150).

Other demographic spikes include:

African American (index 214), reside in

the Southeast (index 115) and

Southwest (index 143), high school

graduates (index 114), part-time

workers (index 113) and college

students (index 143).

Consumer - Current Customers

APDO usage is nearly universal among both Adults and TeensAPDO usage within the past 12 months, by age and gender, February 2015Q: “Which, if any, of the following body care and deodorant products have you used in the last 12 months?”

❏ APDO products experience near universal usage, with 93% of respondents reporting use within the past 12 months.

❏ Compared to Whites and the total population,

both Black and Hispanic consumers use APDO

products more frequently and they are also

more likely to use less common forms of

APDO, including roll-on and aerosols/ sprays.

❏ Use declines slightly among consumers 55+, who may no longer consider underarm sweat to be an issue and do not feel the need to use APDO products as a result.

Consumer - By Age

Category will benefit from Black and Hispanic population growth

APDO use (Mean) by gender and race/Hispanic origin, November 2013- December 2014, Based on 27066 adults 18+ who use deodorantQ: “How many times have you used antiperspirants/deodorants in the last 7 days?”

❏ Compared to Whites and the total population, both Black and Hispanic consumers use APDO products more frequently and they are also more likely to use less common forms of APDO, including roll-on and aerosols/ sprays.

❏ Black consumers report increased usage of APDO products, which is likely driven by a passion for fragrances and a tendency to coordinate and layer scents.This higher usage positions Black consumers as a key demographic for growth.

Consumer - By Race

Solid stick APDO most commonly used ; Younger men more likely to be using formats other than stick

Deodorant/Antiperspirant usage, by gender and age, October-November 2013 Q: “How often do you use each of the following?”

❏ In different age segments, most others will regularly use Solid stick deodorant/antiperspirant

❏ Body spray deodorant/antiperspirant is the second choice for deodorant, especially for younger men.

Consumer - Forms of Deodorant

On average, consumers are applying APDO products 8.6 times a week, which equates to more than once per day.

❏ Young men, and middle age men tend to use more frequently than the average user because they tend to exercise more.

❏ Use declines slightly

among consumers 55+, who are no longer active and do not feel the need to use APDO products as a result.

Consumer - Usage Frequency

Unsurprisingly, when it comes to selecting an

APDO product consumers most commonly

choose effectiveness of protection as the number

one attribute that is important to them. Price and

fragrance follow effective protection as

attributes that are ranked first by consumers. It is

essential that brands deliver strong protection

from both sweat and odor if they hope to capture

consumers’ loyalty. Consumers use these

products for their daily hygiene and to avoid

embarrassment, which explains why product

performance is so highly valued.

Consumers are looking for effectiveness of protection

Consumer - Value

Consumers are already using APDO on a daily

basis for hygiene purposes but brands may be

able to leverage these attitudes in marketing

campaigns in order to promote more frequent

use throughout the day.

Consumer - Value

After using deodorant/antiperspirant, consumers feel clean, refreshed and more confident.

Companies could position that reapplying APDO

during the day can help a person feel more

refreshed, especially if he or she has had a

stressful morning. There also could be an

opportunity for brands to promote more on-the-

go APDO usage.

Many consumers prefer to stick with the same brand of APDO (43%)

43% of the consumers are really loyal to their frequently used brand

Consumer - Shopping Behavior

20.8%

In the deodorant category, P&G and Unilever are the two biggest companies, and they account for 75% of the market. The products they own are also under competition with each other.

6.2%

Competitors - Major competitors companies

10.8%

29.8%

Old Spice has 29.8% MULO sales of men’s antiperspirant/deodorant, in 2014

The target audience for Old Spice has shifted from a generation of men within the 40 to 60 age range to a younger market of men 12 to 34 age (NY TIMES).

Old Spice’s marketing campaign focuses on humor. Commercials for Old Spice include either Terry Crews, who represents comically over-the-top masculinity, or Isaiah Mustafa, who is suave and charming and speaks directly to female viewers. As 42% of men report that their appearance is influenced by their spouse or significant other, Old Spice is capitalizing on the importance of reaching females in the marketing of male products.

Competitors - Outside Unilever, Old Spice is the biggest competitor

http://ezproxy.library.nyu.edu:2471/display/751149/

http://ezproxy.library.nyu.edu:2471/display/751149/

Degree has 2o.8% MULO sales of men’s antiperspirant/deodorant, standing in first place; Axe has 10.8% MULO sales of men’s antiperspirant/deodorant, standing in second place, in 2014

Competitors - Inside Unilever, Axe is the second competitors

❏ Axe strongly targets younger male consumers.

❏ Axe has seen much success with clever ad campaigns that don’t take themselves too seriously and is a bit over the top in terms of how to attract a mate.

Key Brand Value Brand Qualities Tagline Demographic Target

Get the girl Young, sexy, smell great The Axe Effect Teens & young men, 14-24

$30 Mil Retail Sales

Price$6.49

Volume4,622,497

Purchase Quantity

5 Units

Number of Buyers924,500

Purchase Size1x

Purchase Frequency

5x/year

With 43% Loyalty

Previous Buyers

397,535

New Buyers

526,965

Penetration Rate

1.23%A penetration rate of 5.13% is reasonable, but in order to achieve the $30 mil sales goal, the purchase quantity must also increase. Increasing purchase size would decrease purchase frequency, but would overall increase the average purchase quantity.

Marketing Goals: Determining Areas for Growth

Number of US Households =75,000,000

Penetration Rate = Number of Buyers/Number of US Households

=924,500/75,000,000=.0123

Marketing Goals

● Cross promotions with other sports-affiliated products or skin moisturizers within Unilever (Suave, Dove)

● Package two spray cans together to increase purchase quantity

● Increase frequency of promotions because of the competitive nature of the market

● Increase customer loyalty from a 43% loyalty rate to decrease customer acquisition costs

● Get a southern sports team member for advertisements (possibly Miami Dolphins or Miami Heat) because our main demographic are southern black and hispanic men

The Customer Value Analysis below presents several customer segments that Degree could target. We specifically focus on the dry spray as it is the product in which we’d like to see a sales increase.

Marketing Strategy - Segmentation

In order to find out our target customer segment, the competitive benchmark below helps present our competency compares to major competitors

Marketing Strategy - Targeting

We put together the Customer Value Analysis and Competitive Benchmark to select the customer segments to serve, for which the company can provide better value than competitors.

5 Matching Values

Marketing Strategy - Targeting

IDENTIFY TARGET CUSTOMERS

Degree’s MotionSense technology is perfect for athletes and sports fans that live very active lifestyles, or for businessmen who are constantly moving and on-the-go and require a convenient deodorant body spray.

It is in Degree’s best interest to target athletes and sports fans, as well as businessmen.

Marketing Strategy - Targeting Customers

According to the customer value analysis and competitive benchmark, it is apparent that effectiveness is the most characteristic benefit that Degree can offer to customers whereas competitors cannot.

Effectiveness

Long-Lasting

Smell

Cosmetic

Price

Quantity

Gender Split

Eco-Friendly

Marketing Strategy - Value Proposition

In order to identify and communicate a clear competitive differentiation, we emphasize only one single benefit from the overall value proposition.

Marketing Strategy - Attribute Map

Effectiveness

Price

Scent

Brand

Cosmetic

Effectiveness

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Marketing Strategy - Positioning Map

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ALL BENEFITS

Frame of Reference

Primary Benefit: Effectiveness

Secondary Benefits:ScentCosmetic Benefits

Primary Benefit:Trendy

Secondary Benefits:Convenient PackagingEffectiveness

Marketing Strategy - Optimal Positioning

Price, Effectiveness, Cosmetic Benefits, Scent, Brand Loyalty, Eco-Friendly, Convenient Packaging, On-the-Go Use, Confidence Builder, Trendy

ALL BENEFITS

Frame of Reference

Primary Benefit:Effectiveness


Primary Benefit:Cosmetic Benefits

Secondary Benefits:EffectivenessEco-Friendly



ALL BENEFITS

Frame of Reference

Primary Benefit:Effectiveness


Primary Benefit:Confidence Builder

Secondary Benefits:ScentOn-the-Go Use



Marketing Strategy - Positioning

EFFECTIVENESS MOTIONSENSE

We recommend that Degree should emphasize its effectiveness and build its positioning through their MotionSense technology.

Degree’s Dry Spray is the best anti-perspirant dry spray for athletes and sports fans because of Degree’s use of MotionSense technology.

Marketing Strategy - Positioning Statement

Marketing Tactics - Branding (Association Map)

Degree Men

SportyMasculinity

Protection Active

Reliable

Adventurous

Massive Sweating

Professional Athletes

Long Lasting

Exercise

DurableToughHealthy

Smelly

YoungEffective

Brand Essence

Core Identity

Extended Identity

Marketing Tactics - Branding (Brand Identity)

·Active

·Innovative

·Effective

·Reliable

·Adventurous

·Responsible

·Revolutionary

·Protective

·Sporty

·YoungWe named Degree’s brand essence as “active” to attract people who lead active lifestyles that require an effective, reliable deodorant.

Brand Essence

Brand CharacterValues

Consumer Insight

Competition Frame Target Customers

Marketing Tactics - Branding (Brand Identity Pyramid)

Active

Fresh Smell Superior ProtectionLets you stay active

PersonalitySportyReliableDynamic

Use the same deodorant products as my favorite athletes and stay fresh and protected while being

active like them

Athletes/Sports FansMale Antiperspirant/Deodorant Category

Marketing Tactics - Branding (Touchpoints)

Degree Store

Employees

CRM

Social Media

Sponsoring

Online

Promos

Make sure employees understand Degree Men’s brand image and represent it when dealing with customers

Make sure promotion activities are consistent with Degree Men’s Brand Image

Manage Degree Men’s interactions with current and future customers

Develop company-customer interactions on Facebook, YouTube, Instagram, etc...

Have famous athletes endorsed the product to hit on the image to appeal athletes and sports fans

Make sure store displays reflect Degree Men’s brand image

Make sure the online channels reflect the right information of Degree Men’s brand image

Basic Product

·Dry Spray·Easy to apply·Long-lasting·Instant Dry ·Clean·Motionsense

·Experienced ·Brand·Established ·Parent Company·Innovational ·Format·Leading ·Deodorant Brand

Marketing Tactics - Branding (3 product levels)

An antiperspirant for men Core

Product

Augmented Product

Marketing Tactics - Avoid Cannibalization

Volume: 2.7 ozPrice: $2.72Pro: PortableCon: Undesirable Waxy ResidueTargeting: Price sensitive;Conservative people

Volume: 3.8 ozPrice: $4.94Pro: Quick Dry; Con: Itching experience sometimesTargeting:Sports fans; Athletes

The source of consumers for Degree Men Dry Spray should not come inside of our brand.

We may consider stealing consumers from our competitors.

Marketing Tactics - Customers Stealing

DEGREE:DRY!COOL!INSTANT!

GILLETTE:GEL…..Ew…..

We are aiming to steal customers from Gel Deodorant products, particularly from Gillette, which seems to target sportsman as well.

Water-based gel formulas are too gooey and sticky.

We are also concerned about the potential Brand Cannibalization between Dove Men+Care and Degree Men Spray because of their similar packagings.


• Degree Men Dry Spray Antiperspirants are engineered with MOTIONSENSE technology that responds directly to body movement, releasing extra protection during physical activity.

• Dove and Dove Men+Care Dry Spray Antiperspirants feature non-irritant formulas that contain ¼ moisturizer technology for softer, smoother underarms.


Spray ProductsVolume: 3.8 ozPrice: $5.47Pro: Moisturizing TechnologyCon: ExpensiveTargeting: Family Guys;Conservative people

Spray ProductsVolume: 3.8 ozPrice: $4.94Pro: Motionsense, Super DryCon: Itching experience sometimesTargeting: Sports fans; Athletes;Young people

Marketing Tactics - Packaging

-Degree Men’s Current Packaging features masculinity and athletic ability.

-Dove Men+Care focuses more on moisturizing.

However, it is hard to notice the essential difference between Degree Men and Dove Men+Care at first sight. We may want to emphasize the Motionsense technology of Degree Men Dry Spray.

Source:http://www.packworld.com/package-design/structural/custom-actuators-deliver-dry-spray-antiperspirant

Marketing Tactics - Packaging

We suggest Degree emphasize “Motionsense” to highlight the key feature of Degree Men Spray.

Marketing Tactics - Pricing

Old Spice-Red Zone Refresh Men’s Body Spray Pure Sport3.75 oz.

$4.39

Dove Men+

Care Dry Spray

Antiperspirant,

Clean Comfort,

3.8 Oz

$5.47

Degree

Motionsense Dry

Spray

Antiperspirant,

Fresh Energy

3.8 Oz

$4.99

Degree Men

Motionsense Dry

Spray

Antiperspirant,

Adventure

3.8 Oz

$4.94

AXE Adrenaline

Charge Up

Protection Dry Spray

Antiperspirant

3.8oz.

$4.99

Price is Degree biggest advantage in the highly competitive deodorant industry. When comparing with competitors, we have the second lowest price points.

Marketing Tactics - Pricing

Price is Degree biggest advantage in the competitive deodorant industry.

Unilever ’s Dry Spray Products has the bigger size (3.8 oz) compared with P&G’s Dry Spray Products (3.75 oz)

It is hard for consumer to notice this change in volume.

Within Unilever, Degree is the lowest price product

Since our consumers are not price sensitive, we should NOT make any change in price.

Marketing Tactics - Distribution

Wholesaler

Retailer Retailer

Manufacturer

Physical

online

Consumers

online

Marketing Tactics - Distribution

Problem: The longer the channel, the higher the price.

Decrease the wholesaler process.

Increase the shorter channel’s distribution.

Focus more on online channel, because online will save slot fees.

Marketing Tactics - Seasonal Promotion

As deodorant products plateau through summer time, we suggest the best months for promotional activities are June, July, August and September.

Marketing Tactics - Promotion to Trade

We suggest Degree offer promotions to distributors to influence consumers’ purchase behaviors.

Incur indoor display:To inform the consumers about the key long-lasting, instant dry and clean features of Degree Men deodorant.

Since Degree Dry Spray is a newly launched product, it is important to make sure the consumer know the right way to use it. And we want them to maximize their customer experience by knowing how to make the most use of our distinct motionsense technology.

Marketing Tactics - Promotion to Trade

We are going to subsidize retailers and trade partners to advertise specifically about how to correctly apply the motionsense technology of Degree Dry Spray.

Marketing Tactics - Promotion to Consumer

We suggest Degree distribute and give out free samples at sports club or gyms, where have the densest population of the product’s target consumers--athletes and sports lovers.

Because spray deodorant is a relatively new format, our goal is to induce as many new trials as possible.

Marketing Tactics - Promotion to Consumer

We suggest add spray format as a free gift in a bonus pack of degree men’s other established products to induce trials in our existing consumers.

Kevin Hart is a famous actor/comedian who is very into fitness

and is a self-described “full-fledged workout guy.” He even has a

campaign with Nike, coordinating 5K runs around the country

encouraging people to join and inspire them to reach their fitness

goals.

As someone who lives such an active lifestyle he’d be the perfect

celebrity endorser to promote Degree’s dry spray and emphasize

how he needs Degree’s protection to keep him smelling fresh

throughout his day.

Due to the limited budget, we would just have him post instagram and twitter photos of him using the dry spray deodorant with a

caption showing his love for the product.

Advertising Campaign - Celebrity Endorser

Advertising Campaign - Partner with GYM franchise

We suggest that Degree Men cooperate with nationwide gym franchises such as 24-Hour Fitness, Crunch, New York Sports Club, Gold’s Gym etc. and offer samples of their dry spray deodorant to be placed in the locker rooms for gym-goers to try out after a workout.

Marketing Tactics - Marketing Mix

Summer would be the most intensive advertising season for Degree to increase brand awareness.

Marketing Plan Tactics CostMonthly Consumption Indices

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

New Packaging Design -$1,260,000 1

Indoor Display -$1,050,000 1 1 1 1

Advertising how to apply -$1,076,250 1 1 1 1 1 1

Free Sample -$113,750 1 1 1

Bonus Pack -$21,000,000 1 1 1 1 1 1

Advertising Campaign -$7,000,000

Kevin Hart endorsement 1 1 1 1Partner with Gym Franchise 1 1 1 1

Total Marketing Campaign Costs -$31,500,000.00

# of campaigns 2 2 3 6 6 5 3

Marketing Tactics - Financials P&L

Our financial goal this year is to increase retail sales by 50%, up to around $30 MM in one year. Compared with last year’s P&L, the goal is achievable. Loss are expected to occur since it is a new product.

Degree's Potential P&L

Retail Sales $30,000,000Channel Margin -$15,000,000

Net Revenue $15,000,000COGS & Distribution -$6,000,000

Gross Margin $9,000,000

Marketing Budget -$32,000,000Advertising & Promotion -$31,500,000.00-New Packaging Design -$1,260,000-Promotion Activity-Indoor Display -$1,050,000-Promotion Activity-Advertising -$1,076,250-Promotion Activity-Free Sample -$113,750-Promotion Activity-Bonus Pack -$21,000,000-Advertising Campaign (endorsement, product placement, corporations) -$7,000,000

Marketing Research -$500,000

Market Contribution -$23,000,000

Index - Competitor Products

degree men dry spray marketing plan

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