Jason Jagosh
Maria Vallejo
Ekaterina Vorobyova
Jesika Watson
Dave Roberts
Marketing Management 3823 Sec. 001
Professor Jill Solomon
Executive Summary
Old Spice is perhaps the most original brand for men’s fragrances. Old Spice for
men began in 1938. The industry for men’s fragrances was once a fairly small market,
but has expanded greatly since the 1990s, as more diversified products have entered the
market. An industry that was once dominated by aftershave and soap now contains a
wider variety including deodorants, antiperspirants, body wash, shampoo, cologne, and
more. The recent expansion of new products offered in the market means that companies
and marketers are taking higher risks in a previously unutilized market. Currently, the
men’s grooming market in the U.S. and Canada is valued at around $3.8 billion annually.
Male specific brands have grown faster in recent years than the grooming market as a
whole.
Old Spice is trying to re-brand its image and appeal to a younger audience to
increase sales and brand awareness. In order to do this Old Spice needs to reach a new
target market of males. These males should age from 12 to 34 year old.
A budget of $685,015.00 will be needed to rebrand Old Spice. With this budget we will
reach our target market, create brand awareness, and most importantly increase sales.
-2-
Table of Contents
Product Statement
Analysis of the External Environment
Industry Trends
Competitive Trends
Technological Trends
Economic Trends
Political, Legal, and Regulatory Trends
Demographic Trends
Lifestyle Trends
Cultural Trends
Analysis of the Customer Environment
Who?
How Many?
What?
Where?
When?
Why and How?
Why Non-Customers?
Value Proposition and Positioning Statement
Analysis of the Internal Environment
Target Market
Sponsorship
Financial Performance
Strengths and Weaknesses
Marketing Mix
Marketing Strategies
Marketing Trends
Sponsorship List
Advertising and Promotions
Product Service Offer
Sales Strategy
Public Relations
SWOT Analysis
Issues Analysis
Marketing Goals and Objectives
Marketing Strategies
Target Market Definition
Marketing Implementation
Marketing Budget
What We Learned
Works Cited
3
4
5
11
15
15
18
22
23
25
26
36
37
39
-3-
Product Statement
Old Spice is a division of Proctor & Gamble that offers a product line of men’s
grooming products including antiperspirant, deodorant, body wash, body spray, and
fragrance which consists of cologne and after shave. Old Spice products can be
purchased at big box stores, drug stores, and online retailers at the current competitive
price for under $10.
Old Spice’s antiperspirant product line consists of several items: clear gel, fresh
collection, sweat defense, invisible solid, aerosol spray ranging from 2.6 oz. to 3 oz. in
size for antiperspirant sticks, and 6 oz. for the aerosol spray. The antiperspirant product
line packaging colors include red and white, with other variations of grey and off white.
The deodorant product line consists of the long-lasting stick and fresh collection ranging
in size from 3.0 oz. to 3.25 oz. The body wash product line consists of classic, high
endurance, red zone and fresh collection in 16 oz. plastic bottles. The body spray product
line consists of red zone and fresh collection lines in 4 oz. aerosol containers. The Old
Spice fragrance product consists of after shave and cologne ranging from 2.5 oz. to 6.375
oz. bottles.
All Old Spice product packaging colors include the main red and white logo
colors, with other variations of grey and off white. The Old Spice product line consists of
18 different scents: After Hours, Aqua Reef, Arctic Force, Classic, Cyprus, Denali, Fiji,
Fresh, Game Day, Komodo, Matterhorn, Original Scent, Pacific Surge, Playmaker, Pure
Sport, Showtime, Smooth Blast, Swagger.
-4-
External Environment Analysis
Industry Trends
The men's grooming industry is one that seemingly is not as affected by the
economic recession as other industries. It is maintaining a steady, slow growth. In 2009
$61.3 billion dollars were spent on men’s grooming products such as bath, deodorant,
hair care, and skincare products. That’s a total growth of 37%, or $16.6 billion, over the
last five years concluding an annual growth rate of 7%. According to Packaged Facts, the
retail sales for men’s grooming products will increase 39%, or $23.6 billion from 200920014. The United States will be the second fastest growing market for 2009-2014. By
2014 it is estimated that the men’s grooming industry will increase to $84.9 billion.
Competitors
Brand Competitors
Axe
A line of Unilever products. Unilever products are sold in more than 180 countries
and are sold as Lynx in the UK, Ireland, and Australia. Axe products include shower
gel, deodorant, and hair products such as shampoo and conditioner, and styling gel.
Axe prices are competitively priced and can be purchased at grocery chain stores, big
box stores, online, and pharmacies. Axe products are priced between five and seven
dollars.
Gillette
A brand that Proctor and Gamble recently acquired, Gillette is a line that offers shave
-5-
gel, deodorant, body wash, and razors as well. Gillette products can be purchased
online, in grocery chain stores, big box stores, and pharmacies. Gillette's prices for its
products start at three dollars for shave gel and go up to five dollars for body wash.
Deodorant is priced competitively at five dollars.
Dove for Men
Dove for men is a line of Unilever products. Dove began in 1957 as a beauty soap bar
that was clinically proven to be milder for dry, sensitive skin than other leading soaps.
Today Dove for Men offers products such as deodorants, body wash, and face wash.
Its products are set at a price of five dollars for deodorant up to seven dollars for body
and face washes.
Product Competitors:
Neutrogena for Men
Neutrogena for men is a product line offered by Johnson and Johnson. Neutrogena
markets and manufactures products in 70 countries. Neutrogena is the number one
dermatologist recommended skincare brand, and offers a wide range of skin and hair
care products. Neutrogena for men offers only face care products. These products
include shave gel, after shave lotion, facial wash, and face protecting lotion. Prices
range from five dollars for shaving gel up to fifteen dollars for face moisturizer.
Neutrogena for men can be purchased online as well as any grocery chain store or big
box store.
Biotherm Homme
A skincare and body care line for men. This collection offers basic skincare for face
and body. Products include face care such as cleaners and aftershave, body gel, and
-6-
fragrances. Biotherm reaches customers in 67 countries worldwide. In the U.S this
brand is sold exclusively online. These products tend range anywhere from $20.00
for basic skincare to $54.00 for fragrances.
Adidas Active
Adidas Active is a body and skin care line for men that were developed by athletes.
Its products range from fragrances, after shave, shower gel, and deodorant. These
body care products can be purchased at grocery chain stores, big box stores, and
pharmacies. Prices range from five dollars for deodorant up to ten dollars for
fragrances.
Nivea for Men
Nivea for Men was introduced in Germany by a company named Beiersdorf in 1931.
It offers products like face wash, shave gel, after shave, body wash, and body and hair
care in one. Its products can be purchased at big box stores, online, and grocery chain
stores. Prices are for Nivea products are all priced around six dollars.
Generic Competitors
Generic competitors could include basic store brand items of soap, body wash, face
wash, and deodorant.
Total Budget Competitors:
Total budget competitors would include items such as a fast food meal, magazines,
going to the movies, or getting a gallon of gas.
-7-
Technological Trends
Old Spice sweat defense reduces wetness and odor by giving long lasting odor
defense. It contains the antibacterial agent Triclosan, which prevents sweat from
smelling foul, according to P&G. More advanced scents have been developed to mask
odor better than their previous counterparts. Scent variants include Metallic Ice (spicy),
Aqua Reef (citrus), Glacial Falls (watery) and Pure Sport (fresh). When Old Spice
launched their new line of deodorants in 2003 there was speculation about the harmful
affects aluminum (found in most antiperspirants) posed on the body, and the myth that
prohibiting the body from naturally sweating may be unhealthy. Old Spice marketing
director Alex Lipinski countered the speculations by saying: "Our deodorant technology
is much better than it was years ago, which is the reason for the launch."
Regulatory Trends
The Food & Drug Administration regulates both deodorants and antiperspirants.
Deodorants and body washes are considered cosmetics by the FDA because they don't
affect the body's structure or function. Antiperspirants are considered to be drugs
because they affect the function of the body by reducing the amount of sweat that reaches
the skin. Antiperspirants, according to the Food and Drug Administration, can safely and
effectively reduce sweat for up to 24 hours, if formulated and tested properly. But
different laws and regulations apply to each type of product. Some products, for
example, must comply with the requirements for both drugs and cosmetics. This happens
when a product has two intended uses, for example, when an antiperspirant is also a
deodorant.
-8-
Economic Trends
The United States economy is still recovering from what is said to have been the
worst recession since the Great Depression, and Florida caught the brunt of it. The real
estate bubble burst in 2007, and financial markets followed suit in 2008. However, the
2011 economy has experienced an increase in consumer spending. A 2007 study by the
World Bank found that the rich accounted for 58% of all world income in 2000, with
69% expected by 2030. The World Bank’s definition of “rich” was per capita income of
about $30,000. The middle class was projected to maintain a 14% share of world income
throughout 2000-2030, though one must remember that a stable percentage is applied to a
world economy that will trend upward over the 30-year period. The retail value of all
grooming products used by male residents of the United States is estimated by Packaged
Facts at almost $14.1 billion in 2009. As a result, the total advance for 2004-2009 is
shaping up to be 41%, for a five-year increment of $4.1 billion.
Cultural Trends
In recent years there has been a huge leap to social media for means of marketing
and advertising for many companies. Old Spice is a perfect example of this, with
consumer media consumption habits changing, social media has become an important
marketing platform for all CPG manufacturers. Old Spice uses Facebook, Twitter, and
YouTube to post videos about the product as well as new commercials. Old Spice has
been singled out by industry commentators as the best practical example of social media
marketing. Their campaign taps into the consumer insight that the women are more likely
to believe men should spend time and money investing in their appearance, and social
-9-
media was used to engage consumers in an interactive dialogue with the brand. What
makes Old Spice successful is the fact that they feel men may not care about shower-time
routines. But women, who do the majority of household purchasing, will buy a male body
wash for their “main squeezes” as a recession-era treat. Or perhaps each shopper will
pick up a bottle for her guy so, come shower time, he will keep his wet mitts off her
products. Global men’s grooming market will boost to $84.9 Billion by 2014, this is
partly due to all of the new media outlets, and Old Spice's recent success is why they
have the lead in market share.
Unemployment and GDP
Ever since the real state bubble burst in 2007, the Florida unemployment rate has
risen at a very fast rate. At the end of 2007 the unemployment rate was 4%, but by the
end of 2008 the unemployment rate had risen to 8.1%, over four points in one year.
Florida 2011 unemployment figures have peaked at a record 10.6%.
From 2005 to 2009 the Florida GDP was in a rapid decline. Since 2009, the GDP
has experienced slow growth. In 2005 the GDP was $680,277 million, with a growth rate
6.1%, but by 2008 the GDP moved to $747,770 million, and the growth rate had declined
to -3.4%. The graph below shows the trend of the U.S. GDP vs. Florida GDP since 2005.
- 10 -
Analysis of Customer Environment
Who?
The Old Spice customer base will consist of males who are between the ages of
12 and 34, living in urban or suburban areas of Florida of any ethnic background, and are
most likely high school and college students, or young professionals. The customer base
is not limited to males only. A study by MarketResearch.com shows that younger men
are willing to try new products and purchase products that are part of the latest trends in
men’s grooming, older men more often depend on females to make their purchases for
them. Old Spice’s customer base will also include females over the age of 18 living in
urban and suburban areas in Florida of any ethnicity that have at least one son, a
boyfriend or husband that they would purchase Old Spice products for.
Considering females as part of the customer base means the purchaser may not be
the actual user of the product. The person to influence the purchase could be a male
fitting the demographics and psychographics mentioned above purchasing or requesting
for a particular Old Spice product. The influencer could also be a female who meets the
demographics and psychographics mentioned above that makes most of the purchasing
decisions in the relationship, and/or that is conscious about her partner’s hygiene and
personal health and knows what her ideal partner should smell like.
How Many?
According to a U.S Census Bureau report conducted in 2010, in Florida, there are
approximately 2,987,175 males between the ages of 12 and 34 and close to 2,001,028
females in a relationship. According to Dean Macbeth, a digital strategist from Wieden +
- 11 -
Kennedy, who spoke at a conference in 2010, said Old Spice’s “The Man Your Man
Could Smell Like” campaign received 1.5 billion impressions since its launch in
February. By August 2010, the brand’s body wash sales had increased by 55%. Alex
Keith, P&G’s global deodorants general manager, says that in 2009, Old Spice held 25%
of the men’s deodorant market share. According to Experian Simmons’ Study of Media
and Markets in Summer 2009, Old Spice was being used by 5% of U.S. men over 18 (pg.
271). Data provided by Experian Simmons also depicts that Old Spice deodorant was the
most widely used deodorant brand of 23.2 million U.S. men over 18 (pg 275), and aftershave was used by 10.8 million men.
What?
Old Spice offers a number of products to suit a male’s hygienic needs consisting
of different fragrances of antiperspirants, deodorants, body wash, body sprays, and
fragrances/after shave. Buyers can purchase these products in different sizes. After shave
comes in 2.5 oz., 4.2 oz., and 6.37 oz. bottles, body spray comes in a 4 oz. spray cans,
body wash comes in 16 oz. and 18 oz. bottles, deodorant and antiperspirant sticks are sold
in 2.0 oz., 2.6 oz., 3 oz., and 3.25 oz. containers. All products come in different packages
available in big box stores, grocery stores, and pharmacies, as well as online retailers
such as Amazon. Old Spice also offers special packages, such as the Fiji 6 piece gift set
which comes with body wash, antiperspirant, body spray, and two varieties of smaller
sized deodorants along with a loufa.
Light users of Old Spice products may be those who purchase hygienic products
less than 1 time every 2 months and don’t use it frequently. Light users can also purchase
Old Spice every now and then, but also use other competing products. Heavy users would
- 12 -
consist of those who purchase only Old Spice products, or purchase these products often
because they are highly active and need to apply multiple times a day.
Old Spice packaging consists of aluminum containers for body spray and plastic
containers, both of which are recyclable.
Where
Old spice products are conveniently sold at many grocery, big box, and pharmacy
stores. These include Publix Supermarkets, Wal-Mart, Target, and can conveniently be
purchased in bulk at Sam’s Club or Costco’s. Old Spice products can also be purchased
at pharmacy stores such as Walgreens or CVS. These products are purchased more at the
grocery and big box store level because it is considered an “all in one haul” trip, meaning
consumers can conveniently pick up these items while shopping for other related items.
Customers that enjoy online shopping can purchase Old Spice online at Amazon.com,
soap.com, drugstore.com, and athisbest.com, just to name a few.
Oldpsice.com/WheretoBuy provides a summary of online retailers for Old Spice
products. In a test of brand power, Procter & Gamble's Old Spice hopes to entice visitors
to its Web site with the lure of merchandise. The brand recently began selling Old Spice
t-shirts, flasks, caps and even beer koozies on oldspice.com. The merchandise features
the iconic Old Spice ship logo. This e-commerce component was added for brand
imagery.
Why and How?
The primary benefit from Old Spice antiperspirant is that it provides 24-hour
wetness and odor relief. Along with antiperspirants all other Old Spice products provide
the customer with a variety of fresh scents to remove body odor for the active male. Old
- 13 -
Spice’s main competitor is Unilever’s Axe men’s product line. Axe has targeted
European markets by saying it is a lifestyle brand. Old Spice realizes this and is trying to
dive into that market as well. According to a P&G spokesman, "You have more lifestyle
fragrance brands like this in Europe, and we think there's an opportunity for that in the
U.S.” In recent years childhood obesity is on the rise and with the push to be healthier
Old Spice can offer its products to younger men who are exercising to keep them
smelling fresh.
Why Non-customers?
Old Spice product pricing is relatively low but there is still not a lot of demand for
their products from the lowest of income levels. The competitors at this level are the
“value” stores that offer products that do not have the quality that Old Spice offers, for
example dollar stores, Big Lots, and Sav-a-lot. Besides this issue Old Spice is distributed
very well and is a well-known brand. The problem arises when potential customers
already have loyalty to other brands. Price, basic benefits, and knowledge of Old Spice is
not an issue but converting potential customers into customers is the real concern.
- 14 -
Value Proposition
Value Proposition
Company
and
Product
Old Spice
Target
Customers
Benefits
Price
Value Proposition
Post-adolescent Superior
quality Average with Provide
superior
males, women in grooming products competitors quality
grooming
relationship
with the freshest
products at a moderate
scents
price
Positioning Statement
To post-adolescent males who demand superior quality grooming products, Old
Spice is the product line that offers you the most effective and best scented grooming
products than its competitor at market price.
Internal Environmental Analysis
Financial Background
In June 2010, Procter and Gamble reached a gross profit of $41,019,000; in 2009
the company’s gross profit was approximately 1 million less. P & G’s net income in 2010
was $10,946,000 and in 2009 it was at $11,293,000.
In 2004, Old Spice’s market share was 20% of the $1 billion market. This year,
the market share of Old Spice increased by 5% leaving it at 25% of the entire men’s
toiletries market.
- 15 -
Marketing Information
In 1994 Old Spice started to target 18-34 year old males. The company offered a
“money back guarantee” if consumers were not happy with the product. The company
started to realize that they were missing the mark on reaching 25 to 45 year old men who
knew of Old Spice from the time their fathers used it.
To reach the younger group, Old Spice started handing out samples of their High
Endurance deodorant to fifth grade health classes. Old Spice ended up covering 90% of
the schools in the nation. Since the younger target market did not have much experience
in purchasing deodorants, Old Spice made the connection that the younger target market
would most likely pay more for a deodorant because of the inexperience.
In 2009, P&G started to gather information through focus groups on what people
expected from a deodorant. Research found that consumers were not impressed with the
Ever Clear deodorant Old Spice made in 1990. P&G created a new formula which would
leave a clear layer of deodorant that would not clump up.
Advertising Campaigns
A recently successful Old Spice advertising campaign included a former football
player turned actor, Isaiah Mustafa. Old Spice uploaded YouTube videos of Isaiah
Mustafa in the form of a commercial, gearing towards the idea that a man who uses Old
Spice products is found extremely attractive to women; in other words, it used sex appeal.
These particular ads were found appealing by young men and women because the tone of
the ads was funny and aspirational. The videos with the highest views were selected to be
launched as television commercials.
- 16 -
Towards the end of March 2010, the video reached over 5.8 million viral views.
After this particular ad was launched, Old Spice body wash products went up 11% in
sales in 2009, and by February 2010 sales were up by 27%.
The Old Spice Swagger campaign was launched in 2008in an attempt to rebrand
the “Glacial Falls” scent. The campaign was about transforming “wimpy nerds into
strong manly studs.” Old Spice released ads featuring celebrities such as LL Cool J, Tony
Stewart and Brian Urlacher, showing them as young nerds lacking confidence, following
with snapshot of them grown up displaying them as confident successful men.
This particular campaign had surpassed the company’s goal to double its “Glacial
Falls” sales and ended up quadrupling its growth.
- 17 -
SWOT Analysis
Strengths
Statement of
Internal Strengths
Company Performance
1
Low
2
3
4
5
High
Importance
1
Low
2
3
4
5
High
Strength
Index
Number
Sales
X
Brand Equity
(Strong Branding)
Research and
Development
Market
Leadership
Global Leadership
Successful
Advertisement
Campaigns
X
X
20
X
20
X
X
16
X
X
20
X
X
16
X
20
X
Sales - Gross profit margin of Procter & Gamble is 15 times the industry average.
Brand Equity - Old Spice has been around for over 70 years, and consumers of all ages
know about Old Spice.
Research and Development - P&G invests heavily in research and development. About
$2 billion are invested every year by P&G for improving and introducing new products.
The end-consumer understanding of P&G and its large database of consumers make its
research and development strong.
Market Leadership - Between 2009 and 2010, Old Spice has increased U.S. market share
from 6.2% to 10.1%, while its number one competitor, Axe, decreased from 7.7% to
5.9%.
- 18 -
Global Leadership - Since 2009, Procter & Gamble became the global leader in the men's
grooming market after its acquisition of Gillette. P&G sells over 300 products in 180
countries.
Successful Advertisement Campaigns - Old Spice has used viral marketing perhaps more
effectively than any other brand in recent years. Its commercials are humorous and
memorable, especially to the target audience. Several parodies have been made, and
other brands have adopted a similar style of commercial.
Weakness
Statement of
Internal
Weaknesses
Brand Image
Company Performance
1
5
Low 2
3
4 High
X
Competition
Against Itself
Diversified
Customers
X
X
Importance
1
Low
2
3
4
5
High
Weakness
Index
Number
X
15
X
20
X
15
1. Brand Image - Old Spice has been around for many years. The company has focused
on marketing the older generation. Although Old Spice has shifted its marketing
strategies to target a younger generation it still has that brand image for an older working
man.
2. Procter & Gamble has acquired many brands and product lines, and as a side effect its
own brands are often competing against each other for the same sales and customers. Old
Spice is competing against Gillette, Tag, Mach3, and Prestobarba/Blue, all owned by
P&G.
- 19 -
3. Although Old Spice is trying to reach a new target market with its new advertising it
may lose loyal customers. The mature customers that Old Spice once before was
targeting may not like the new fragrances or scents now being offered.
Opportunities
Statement of
External
Opportunities
Shift and Growth
of Market
Attractiveness
1
Low
2
3
4
5
High
Success Probability
1
5
Low 2
3
4 High
X
X
Opportunity
Index
Number
20
Economy
X
X
15
Shift and Growth of market - Up until the past four years, Old Spice was geared towards
middle aged men. Since, it has been restructuring its brand identity to be able to market
to younger generations. So far it has been successful, but Old Spice needs to maintain
this strategy in order to keep up with the competition
Economy - consumer spending has decreased in the United States. Also, the prices for
raw materials and shipping are increasing, resulting in an increase in operating cost.
Although, this could become an opportunity because those not in our target market may
begin trading down and begin using affordable bands such as Old Spice.
- 20 -
Threats
Likelihood of Occurrence
Statement of
External
Threats
Government
Regulations
Brand
Competition
Product
Competition
Economy
1
Low
2
3
4
5
High
Seriousness
1
Low
2
3
4
X
X
X
X
5
High
Threat
Index
Number
X
10
X
25
X
16
X
20
Government Regulations – Proctor and Gamble is subjected to changes in laws in
regulations in the U.S and as well in other countries. Failure to manage changing laws
and regulations could affect Proctor and Gamble as a company and Old Spice as a brand
as well.
Competition - The male grooming market is still experiencing rapid growth, even during
the recession, due to societal trends. The competition is very fierce since there are so
many brands and there is no majority market shareholder.
Product Competition - Cheaper non-name brand substitutes are available in some stores
Economy - Due to economic recession, consumer spending has decreased in the United
States. Also, the prices for raw materials and shipping are increasing, so cost is increasing
- 21 -
Issues Analysis
Old Spice has been around for over 70 years. The company has focused on
marketing to an older generation. Although Old Spice has shifted its marketing strategies
to target a younger generation, it still has that brand image for an older working man.
Despite Old Spice’s successful advertising campaigns, efforts to appeal to a
younger market do not have the same brand image. Brands such as Axe came out
targeting a younger market from the beginning.
Old Spice also has the issue of competition against sister companies. Procter &
Gamble has acquired many brands and product lines. As a side effect, cannibalization is
created because its own brands are often competing against each other for the same
customers and sales goals. Old Spice is competing against Gillette, Tag, Mach3, and
Prestobarba/Blue, all owned by P&G.
Today’s economy has been a major factor in lower profits of most companies.
Due to the economic recession, consumer spending has decreased in the United States.
Also, the prices for raw materials and shipping are increasing, resulting in an increase in
operating cost. Although, this could become an opportunity because those not in the
target market may begin trading down and begin using more affordable bands such as
Old Spice.
- 22 -
Marketing Goals
Use marketing techniques to increase sales, which will in turn increase the P&G
stock price as a whole.
Use internal and external marketing tactics to increase brand awareness.
Use social media (YouTube, Facebook, Twitter) to target a younger audience
Continue developing new grooming products with new unique scents.
Increase awareness of Old Spice’s full product line (ex. Not just deodorant).
Maintain Old Spice’s #1 ranking in the male deodorant products market share.
Become leader in all male grooming products market.
Change brand image to make it more appealing to a younger audience.
Increase customer loyalty by providing the highest quality male grooming
products, and high quality customer service.
Find a sporting venue (NFL/NBA/MLB games) to act as a mutually beneficial
sponsor.
Increase brand awareness by having marketing campaigns at local Florida
universities.
- 23 -
Marketing Objectives
Increase net income by 5% through 2012.
Increase total number of costumers by at least 15%.
Help increase P&G stock price by 2% through 2012.
Create awareness in the secondary target market: women in relationships who
having purchasing power.
Develop 3 new scents through 2014.
Allocate at least $200,000 of merchandise to send samples to teenagers just
turning 14.
- 24 -
Target Market Definition
The geographical segmentation is the state of Florida in the United States. The U.S.
Census Bureau reported that the 2010 population of Florida was 18,801,310.
Primary Market: 2,987,175 males ages 12- 34
The behavioral segmentation is men who are seeking to maintain a clean,
manly personal image. According to the Kline U.S. Male Grooming Market
Study Reports, 50% of men surveyed used personal fragrances and aftershave.
This number is growing, too. Many men once thought personal fragrances were
too "girly", but are now more self-conscious about their appearance.
The demographic segmentation is men who live primarily in urban and
suburban areas. They come from any ethnic background, and tend to be high
school students, college students, or young professionals.
Secondary Market: 2,001,028 females in a relationship
The demographic segmentation is females in relationships who make most of
the purchasing decisions. According to Procter & Gamble, approximately 60% of
Old Spice products are purchased by women.
The behavioral segmentation is females in relationships who are conscious
about their man’s hygiene and personal health, and know what their ideal partner
should smell like. According to a MarketResearch.com study, while younger men
are willing to try new products and stay up with the latest trends in men's
grooming, older men more often rely on females to make their purchases for
them.
- 25 -
Marketing Implementation
Action Plan: Set up Old Spice booths at College Sporting Events
Objective: To increase brand awareness among college age males, and increase Old
Spice's brand equity.
Target Market: College age males who are active and social
Description of Plan: Hire a street team of college students to travel across various
schools in Florida to set up a free sample booth and a couple of games in which passersby
can play. The games will be classic carnival games with an Old Spice twist, for example,
a high striker hammer game called "Test your MAN level", an inflatable sumo wrestling
pen where friends can face off, and a trivia booth that asks off the wall Old Spice style
questions.
Who: A marketing manager and a team of four to five college age employees to travel
across the state.
Timing: The team will travel to different Florida colleges in the Fall during college
football season.
Budget: Approximately $6,000 for equipment, $2,000 for transportation, $45-$60/hr for
all employees, $500 for banners, $200 for free samples. May also need to consider the
cost of setting up if certain venues charge for that.
Measurement: This project will be measured by having customers take surveys at the
booths asking if they have heard of Old Spice before or purchased any Old Spice
products in the past. This project can also measure regional sales increases around
colleges to determine effectiveness.
- 26 -
Action Pan: Implementation of Social Media
Objective: to create brand awareness in the teen age and young adult community
Target market: teenagers and young adults that see Old Spice as an “Old” brand
Description of the program: create social media pages such as Facebook fan pages,
twitter, Google plus and Youtube to stream videos and post statuses that will create
interest in Old Spice.
Who: Someone from the marketing department can take the task of updating social
media as one of their responsibilities.
Timing: Facebook, Twitter and Google Plus should be updated daily and YouTube
videos should be uploaded at least once a month.
Budget: Free. If Old Spice decides to become an official sponsor of YouTube; it would
cost $50,000. If Old Spice wishes to become an official sponsor of Facebook, it would
have to enter an auction to bid against other companies with prices varying on space.
Measurement: the effectiveness of this plan will be measured by level of activity in each
of the social media pages. For Facebook, it will be measured by the number of “likes”
and shares, for twitter by the number of followers and shares, and for YouTube by the
number of views and “thumbs up” votes of the video. If Old Spice becomes an official
sponsor, it will measure based upon how many times the ads are clicked and how many
viewers see the ads.
- 27 -
Action Plan: Old Spice Battle of the Bands
Objective: Create brand awareness around college campuses
Target Market: Social male college students
Description of the Program: Old Spice will sponsor a battle of the bands with local
bands at each of the major Florida universities, and at the event there will be prizes and
giveaways of Old Spice products and coupons.
Who: Old Spice will hire a street team in each college to put together the event, as well
as working with the campus activities board/student government of each college to set up
and promote the event.
Timing: Battle of the bands will happen once a year in each of the college campuses.
Budget: $5,000 for stage equipment, $45-$60/hr. for all employees, $500 for banners,
$500 in prize money for the top three bands, $200 for samples
Measurement: the effectiveness will be measured by the attendance to the event and the
use of the coupons provided at the event on Old Spice Products in that area. Old Spice
would continue the event next year only at the successful college campuses
- 28 -
Action Plans: Product Placement in an Upcoming Movie
Objectives: Use product placement in an upcoming movie to subtly increase brand
awareness
Target Market: Males 13 and up who enjoy movies
Description of the program: Old Spice products would be made clearly visible in one or
more scenes of a movie. The movie would be one that appeals to young males, such as
an action or raunchy comedy. The male lead character of the movie would be seen using
or in possession of Old Spice products.
Who: A marketing team would negotiate the terms of the product placement with the
movie production team.
Timing: the product placement would be visible whenever audiences would view the
movie
Budget: Between $100,000 and $300,000 depending on the popularity of the film and
how many times Old Spice wants to be placed in the film.
Measurement: Effectiveness will be measured by the increase in sales and buzz about
Old Spice following the movie’s release
- 29 -
Action Plan: Florida Keys Vacation Giveaway
Objective: Increase sales to consumers and promote brand awareness
Description of the Program: Old Spice will give away one luxury vacation for two to
the Florida Keys to one Florida resident. Every Old Spice product will have an entry
code that the costumer will submit online in the Old Spice website. The more products
the costumer buys the more chances they have to win. At the end of a three month period
one winner will be randomly picked.
Target Market: consumers 18 years or older
Who: The marketing team will be in charge of this contest
Timing: this contest will go on for a three month period during the winter, and the
winners will have one year to use the vacation
Budget: Approximately $7,000 for a four day vacation to the Keys. This would include
airfare, hotel accommodations and some meals.
Measurement: The effectiveness of this plan will be measured by the change in level of
sales during the three months that the contest is happening and by the amount of entries
to the contest.
- 30 -
Action Plan: Samples to Young Adults
Objective: to introduce young high school males to Old Spice products
Description of the Program: Old Spice offer consumers to be put on a mailing list,
which will send a sample box containing shave gel, deodorant; body wash and body
spray to any male in Florida on their 14th birthday.
Target Market: Young high school males, and parents who can sign up for the mailing
list
Timing: Old Spice will promote this in their packaging in select areas throughout the
year.
Budget: Old Spice will have the carry the cost of providing and mailing the samples
Measurement: Old Spice will measure the effectiveness by recording how many people
sign up for the mailing list
- 31 -
Action Plan: Florida Bundles
Objectives: To increase sales during the summer time
Target Market: Florida males and females in a relationship, since women tend to buy
bundles and packages
Program Description: from the month of May through August Old Spice will have
summer specials called “Florida Bundles”, which will include deodorant, body wash,
body spray and a free water bottle with the Old Spice logo.
Who: The marketing department will develop a specific package for this bundle and the
manufacturing and distribution plants will be in charge of putting them together.
Timing: This program will happen from the months of May- August since they are the
hottest months of the year, and when many people are active outdoors.
Budget: Old Spice will manufacture 50,000 bundles for distribution throughout Florida.
Furnishing the water bottles which will cost about $.80 apiece and the special packaging
of the bundle will cost $.20 apiece.
Measurement: The effectiveness of this program will be measured by the volume of
sales of the package.
- 32 -
Action Plan: College Newspaper
Objective: To increase brand awareness in the major Florida college campuses
Description of the Program: Old Spice will display an ad with a coupon in the
newspaper paper of the major universities in Florida.
Target Market: college students
Who: Advertising director at Old Spice will email each college newspaper with a picture
of the ad.
Timing: This will appear in each school newspaper at least once a week and it will be
continued depending on success
Budget: $645 per school per year
Measurement: The effectiveness of this program will be measured by the volume of
sales in each area and the amount of coupon use.
- 33 -
Action Plan: Clint Eastwood University Road Trip Sponsored by Old
Spice
Objective: This program’s man goal is to increase brand awareness on universities across
the state by having Academy Award winning actor & director Clint Eastwood spreading
the word that he has been a loyal Old Spice user since the 1940s.
Target Market: College aged males
Description of the Program: To have Mr. Eastwood travel to several universities across
Florida and tell his personal story of Old Spice. He has been an avid user since the 1940s
and still to this day uses Old Spice. Use his classic iconic status to show that Old Spice
has been a well renowned brand for many years and it will continue to be. All while using
a tour bus covered with Old Spice decals. Giving out samples with unique coupons
related to Mr. Eastwood’s speeches.
Who: Clint Eastwood and three to four members of Old Spice’s marketing department
Timing: Next Spring semester, over a span of two weeks have Mr. Eastwood and the
team travel to ten different universities across Florida
Budget: $10,000 per speaking event for Mr. Eastwood’s pay, $1,000 a day for hotel and
meal accommodations for the whole team, $15,000 for all expenses related to the tour
bus, and $1,000 worth of samples for each show. A total approximate cost of $139,000
Measurement: Giving out 1000 Old Spice deodorant samples with coupons offering
buy-one get-one on Old Spice other products. When coupons are redeemed we can see
what store, its location, and what product is being purchased.
- 34 -
Action Plan: NASCAR Driver Sponsorship
Objective: Increase brand awareness among NASCAR fans
Description of the Program: Old Spice will endorse a racecar and sponsor a driver such
as Tony Stewart to advertise the Old Spice logo at each NASCAR practice and race
Target Market: NASCAR fans
Who: Tony Stewart and his racing crew
Timing: The Old Spice logo will appear on the car as well as the uniforms and crew
during the 38 races NASCAR has each year. All are nationally televised.
Budget: $200,000 to $500,000 a year
Measurement: The effectiveness of this program will be measured by the increase in
brand awareness among NASCAR fans, taken either by the surveys or an increase in
sales.
- 35 -
Budget
Booths at
Old Spice
Placement in
Samples to
Implementation
college
Battle of the
an Upcoming
Young Adults
of Social media
Sporting
Bands
movie
events
$7,500
$7,000
$50,000
$200,0000
$9,000
1.1%
1%
7.3%
29%
1.3%
Florida
Bundles
Nascar
Driver
College
newspaper
Trip to the
Florida keys
Clint
Eastwood as
a Spokesman
$50,000
$200,000
$4,515
$7,000
$150,000
7.3%
29%
.7%
1%
22%
Total Budget: $685,015
Percentage of Budget Action Plans
NASCAR
29%
Clint Eastwood
22%
College Sports
1%
Newspaper
1%
Social Media
7%
Bundles
7%
Samples
1%
FL Keys Trip
1%
- 36 -
Movie Product
Placement
30%
Battle of Bands
1%