Introduction
Sunlight soap is an iconic brand and one of the most enduring products around today. Originally
created by the Lever Brothers Corporation in 1884, Sunlight soap was the first household soap to be
cut, wrapped and sold in a carton. The product arose from William Hesketh Lever’s determination to
revolutionize Victorian England's standards of cleanliness and hygiene (Unilever 2010). Sunlight soap
went on to be one of the first internationally marketed products and dominated the early soap
market throughout the British Empire (Stephen 1991).
Sunlight Soap also has a long history in Australia, which began when the entrepreneurial William
Lever began producing sunlight soap in Sydney in 1895. The early success of sunlight soap in the
Australian market was due mainly to intensive advertising campaigns that proved to be very
successful and managed to position the product as a metaphor of value (Stephen 1991). Remnants
of former signs, slogans and advertising initiatives and memorabilia are popular today among
collectors.
Executive Summary
The purpose of this marketing plan is to outline the marketing processes and strategies put in place
to increase market share of the product Sunlight Soap within the bar-soap market and the broader
detergents and cleaning products market. An increase in company revenue is also goal outcome of
the plan with economic growth accompanying it.
The plan will first analyse the current marketing environment for selling sunlight soap in Australia
and explore the possible marketing strategies best implemented given the analyses. Further, the
report will discuss strategies in targeting two market segments. These segments will consist of:
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Recommendations are made throughout the plan and summarized at the end. They include several
unique marketing strategies for selling the soap with subsequent detailed information provided
throughout the Marketing Mix. Finally, a conclusion summarized emphasized information from
throughout the report.
Situational Analysis
Market analysis
In recent decades’ sales of not only Sunlight Soap, but also the whole ‘bar soap’ market has been in
decline, as traditional products are being replaced by newer technology such as shower gels and
liquid cleaners. Market share is being eroded as consumers’ move towards more advanced products
that offer benefits such as additional minerals and moisturisers, a range of fragrances and pump
action dispensers. (need reference, xxxx).
Despite recent advertising and pricing efforts to boost sales and retain market share that is being
lost to the influx of new products, consumers are seemingly unresponsive with a 5.5% drop in sales
for 2002 (Retail World, 2003).
Sunlight Soap stands in an advantageous position with regards to the economic choice between
Sunlight Soap and its more expensive shower gel competitors. Sunlight soap can also promote the
pure and simple make up of the product since it contains no heavy perfumes or strong colours that
are characteristics of the more advanced products. According to Pental, Sunlight soap still sells over
1 million packs of soap annually, and given the 100 year history, this speaks highly of the quality of
the product (Pental 2010).
Economic Environment
The recent global economic downturn has led to consumers looking to reduce discretionary
spending (reference); this opens up opportunities for low cost necessities to reclaim some of the
market share lost to the more expensive substitutes.
Political and Legal environment
The ACCC has regulations in place to ensure correct labelling and product information is accessible
to all customers through text on the packaging. Further, recent outbreaks of the potentially life
threatening influenza strains has resulted in legislation emphasising the importance of basic hygiene.
Social and cultural environment
The recent trend towards more environmentally sustainable products (reference) could be exploited
by Sunlight soap, as it is a simple product packaged in cardboard. Australians also typically personify
the ‘Tall Poppy Syndrome’; given the long, tough track-record Sunlight Soap has acquired perhaps an
underdog status may prove marketable.
Technological environment
The recent technological advance in the industry has place pressure on the more traditional soap
products. The benefits of low technology soaps, such as low risk from long term use and portability
should be emphasised.
Competitor analysis
Sunlight Soap is a product most readily associated with the Bar-Soap market, an older segment of
the Cleaning Products Industry. Recently we’ve seen a rising interest (reference) in newer segments
of this industry such as liquid soaps, powder detergents and alcohol-based sanitisers. Along with
these substitute products there is also a large range of bar-soap products already on the market as
large firms like Palmolive, Dove and Neutrogena fight for market control.
Customer analysis
SWOT analysis
Strengths
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Sunlight soap has a long history of
success
It is relatively cheap
It is simple and portable
Minimal packaging
Well recognised brand
Pure soap
Australian made and owned
Weaknesses
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Opportunities
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Necessity
Large market share of close substitutes
Slower economic conditions
Technologically inferior to new products
Low product awareness in younger
generations
Low novelty appeal
Communal use form
Threats
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Competitive market
New technological advancements
Lots of close substitutes
Objectives
The goal of Sunlight Soap is to improve the products positioning as a trusted and iconic brand in the
personal and household cleaning products markets. The increasing popularity of shower gels,
household cleaning sprays and powders reflects the decreasing popularity of bar soaps for its
intended functions. Indirectly this shows that marketing directors were unresponsive to the threats
of competitors who were targeting customers segments after additional benefits which were not
delivered by Sunlight Soap.
The perceived benefit of Sunlight Soap is similar to its competitors in the sense that people
purchasing these products are after the same basic need of personal hygiene and as a cleaning
utensil. Therefore, it is important that a target market be indentified and Sunlight Soap be sold as a
niche item within a larger heterogeneous market base. Through exposure to several target markets
of different sizes and demographics we intend to improve the product positioning for long-term
standing as the consumer choice within the market. In addition to the Australian backpacker market,
we will also be strategically targeting pensioners, young mothers and a variety of other segments
through advertising the economically beneficial properties of the product relative to substitute
products on the market.
Our goal is to increase market share of the bar-soap market by 30% within an 18 month stretch.
Similarly we intend to increase market share within the entirety of the ‘Soaps and Hygiene’ market
by 15% over the same period. However, throughout the period weekly feedback and modifications
to the marketing approach should be undertaken based on consumer feedback to ensure the
intended message is being broadcast as strongly as possible. These market gains will be achieved
through the fore-mentioned advertising avenues and the innovative modifications to the products
branding. Rough estimates on industry averages put each viral cast at a cost of around $20,000 and a
further $50,000 for each advertisement aired on Television. However, given the profitability of a
strong viral campaign an emphasis will be placed on quality over quantity with each viral broadcast
intended to leave a humorous and long-lasting message.
Consumer Market Segmentation
1. Geographical Segmentation
Sunlight soap is focused mainly in the Australian market which is sold in retail outlets all
over the country. While in a warm temperate climate consumers have a need for soap and
body products for personal hygiene. In addition to Australia’s hot conditions there is a large
population of locals, tourists and other individuals who use hygiene products which provide
a dense market opportunity.
2. Demographical Segmentation
Most individuals have a need for soap and older generations of soap users are aware of
sunlight soap’s history in the market as well its presence as well known brand. Also young
consumers value hygiene and the environment and so look to more natural products to
support being ‘green’. Sunlight bar soap is affordable to consumers with any set of income
or education as it is a necessity.
3. Psychographic Segmentation
Sunlight soap would appeal to all lifestyles including families, back backers, adventurists,
young adults, etc. Individuals with attitudes for more natural products and for Australian
owned soap are a key segment of consumers. The soap brand Sunlight provides the
consumer with good-quality soap and the brand itself is appealing to a range of consumers.
4. Behavioural Segmentation
Benefits received by purchasing sunlight bar soap are its multiple uses, relatively cheap,
natural ingredients, effective hygiene use which provide the expectations for consumers as
well as their needs. Additionally the ‘Sunlight’ brand is known in the soap market which
customers would remain loyal to the brand because of its reliability the past decades. There
is a medium volume usage as soap is bought as a necessity however it stands in competition
with shower gels and other products.
Target Market
In order to improve the positioning of the product relative to the segments previously mentioned an
emphasis will need to be places in certain areas to ensure the characteristics of the Sunlight Soap
product are perceived as we have intended. These segments will make up the basics of the target
markets we intend to promote our product to. Through our analysis we have come to the conclusion
that these target markets represent the ideal product placement possibilities as they hold the
biggest demand, highest willingness to consume and can be most easily influenced by the positive
characteristics of the brand.
Our primary target market will consist of the combined segments of pensioners, young families and
low income earners who collectively share similar demands from the core product. Promotional
initiatives would also share significant overlap throughout these segments which would primarily
focus on advertising and sales promotions however not withholding other aspects of a promotional
mix in smaller quantities. The advertisement approach will consist of a series of commercials using
humor as a primary motivator tying in themes of economical use and an Australian historical
presence.
Through this series of eco-themed commercials Sunlight Soap will be positioned to the wider
consumer market as:
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An economic choice in the soap range for personal and household cleaning purposes.
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Plain bar soap (no frills option) with a history in the Australian home
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An environmentally friendly option in regards to packaging (In comparison with shower gels,
who use plastic bottles, Sunlight Soaps packaging is paper of a substantially less size)
Further, with Australian tourism reaching numbers of 1.6 million a year we feel this would be the
perfect time to advertise the “Real Australian Experience” provided by Sunlight Soap. Spreading viral
iconic advertisements over Facebook and Youtube may lead to a global phenomenon of product
realization similar to the success of products such as ‘Old Spice Body Wash’. Using these products as
an example we intend to replicate similar viral feeds with Sunlight Soap.
Through these viral feeds the product will be positioned to a broader audience of various
demographics but directed its emphasis onto mainly tourists. It will have the following
characteristics:
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Rough, Raw, “True Blue” soap product for tourists wanting a cultural experience.
Very portable – easy to travel with (small, solid,
Embodied with the spirit of Australian heritage and history
Cheap
Iconic and almost novel (given a successful viral campaign)
Of course these strategies will all be funnelled through regular retailers, hostel operators and with
an emphasis being made on its wide availability and its cheap pricing.
Marketing Mix Strategy
Product
Sunlight Soap was established in the late 1800s and has been successful in Australia, as a
multipurpose good in the personal hygiene and household cleaning markets. Sunlight soap faces the
difficult task of increasing its sales, as the bar soap market declines, with the introduction of new
products offering additional benefits, saturating the market.
Sunlight Soap will not alter or add new products to the existing product lines. It will still be available
as a bar soap (pure white, pure yellow) in the personal hygiene market, pure soap flakes in the
laundry market and as a dishwashing liquid in the household cleaning market. No new ingredients;
including oils and natural extracts will be featured. Sunlight will attempt to grow by promoting: it’s
history and social relevance in Australia, it’s portability, it’s low cost, it’s Australian made, and a
product with minimal packaging.
Sunlight Soap will be positioned as: an economic choice in the soap range for personal and
household cleaning purposes (5 pack of sunlight soap [450g] = 2.97$ / Lux shower gel 400mL $ 5.74)
[1], a portable/convenient cleaning product (a bar of soap won’t spill, shower gels often do), a plain
bar soap (no frills option) with a history in the Australian home, an environmentally friendly option
in regards to packaging (in comparison with shower gels using plastic bottles, Sunlight soap is
packaged in a much smaller amount of paper – which is also recyclable).
Sunlight soap will be targeted at: Families/Singles with low income, consumers not interested in the
associated benefits with other products (fragrances, flavours), consumers who understand and
appreciate the historic relevance of the product, environmentally conscious consumers, and
travellers – mainly in the backpacker market, who are largely uncatered for.
Sunlight Soap, is an established brand, experiencing what all bar soap brands are experiencing – a
downturn in profits, because of socio-cultural trends favouring new technologies from competitors.
Marketing directors are faced with the task of reviving the brand, not establishing it.
Price:
Sunlight soap is currently priced in the mid to high range of the soap market at $3.30 cents per bar,
low range being $1.10 and high range being $6.00 including store mark-up. In an effort to capture a
wider share of the market our strategy includes lowering the price so as to fit in the average low to
mid range of soaps and introducing a high range option of an included hard case for tradesman,
fishermen, campers, general laundry use and anyone who might need a convenient way to carry
their soap while travelling.
The thought behind this strategy is that once a consumer buys the hard case dispenser, when that
bar of soap is used the consumer then has an opportunity to refill his or her dispenser hard case with
the cheaper option bar of sunlight soap so in essence the expense will fuel the savings and create
brand loyalty.
Another change to our price strategy can be seen in offering bulk discounts to large chains of
hostels, hotels and motels in a bid to create loyalty from the chosen companies, move large amounts
of product at one time and establish sunlight soap as a brand that delivers on quality and price
effectiveness. (Didn’t know what percentage to put as a foreseen rise in profit, marketshare etc.?)
Distribution / Place:
Sunlight soap predominantly use indirect channels of distribution through supermarkets and grocery
stores. In a further attempt to increase brand awareness and effectiveness we intend to broaden the
channels to include camping stores and adventure chains, for example B.C.F. and Anaconda. This will
be achieved through the promotion of the new hard case product and will open up other untouched
avenues for consumer purchases.
Along with the broadening of indirect channels of distribution we will also focus on developing direct
channels in the form of partnerships and pushing bulk purchases of product by hotel chains, hostels,
motels, resorts and the like. This will not only help with liquidity, but will cut supply chain costs and
drive purchases.
References
Pental. (n.d.). Retreived September 1, 2010, from http://www.pental.com.au/home
Unilever. (2010). Sunlight. Retrieved September 1, 2010, from
http://www.unilever.com/brands/homecarebrands/sunlight/index.aspx
Stephen, Ann. (1991). Selling Soap: Domestic Work and consumerism. Labour History, 61,
pp. 57-69.