Soap Industry
P R E S E N T E D B Y: A B I G A I L C L I F F O R D, T E S S B E R G H O F F, M A H A K G O E L ,
U D E M E A K PA E T E
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
Industry Background
ABIGAIL CLIFFORD
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
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
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
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
Brand Market Share
Other
29%
Dove
21%
Dial
14%
Olay
6%
Caress
6%
Irish Spring
7%
Soft Soap
Lever 2000 9%
8%
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
Advertising Differences
WOMEN
 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
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
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
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%
Personal Care
Foods
Refreshment
Home Care
18%
36%
19%
27%
Industry Market Share
Others
Private Label5%
7%
Johnson & Johnson
7%
Colgate Palmolive Co.
8%
Unilever
42%
Henkel Group
11%
HHI= 2200.14
(Highly Concentrated)
Procter & Gamble
20%
Unilever
Procter & Gamble
Henkel Group
Johnson & Johnson
Private Label
Others
Colgate Palmolive Co.
Female Personal Care Brands
TESS BERGHOFF
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
Dove Advertising
◦ Original focus on product attributes
◦ Ads featured traditional models
◦ 2004 Campaign for Real Beauty
◦ Celebration of diversity
◦ Widen definition of beauty
Dove Advertising
Dove ‘Beauty Sketches’
114 Million Views in one month
Lead to 4 Billion blogger media impressions
Dove Advertising
Social Media Presence
◦
◦
◦
◦
23 Million Facebook followers
164,000 Twitter followers
Interactive Community
#choosebeautiful campaign
Dove Advertising
Corporate Social Responsibility
Advertising 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
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
Olay Advertising
◦ Focus on Elegance and Exclusivity
◦ Adherence to Traditional Beauty Standards
◦ Models and Celebrities
Olay Advertising
◦ 2012 Launch of Olay Essentials
◦ Attempt to target a younger customer
base
◦ Launch of mobile app and
advertisements
Olay Advertising
◦ 2014 ‘Your Best Beautiful’ Campaign
◦ Campaign Ambassador Katie Holmes
◦ “I want to have skin like a royal”
Olay Advertising
Online Social Media Presence
◦ 6.3 Million Facebook followers
◦ 100,000 Twitter followers
◦ ‘Olay for you’ website & mobile app
Male Personal Care Brands
MAHAK GOEL
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
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
Axe Advertising
Axe Social Media
Shower Pooling Campaign
Facebook Likes: 4M
Twitter Followers: 135 K
Axe SWOT
Strengths
Fragrance
Brand positioning
Variety of product
International reach
Availability
Weaknesses
Narrow Target
Expensive
Sexual Appeal
Products overlooked
Design
Opportunities
Large product line for men
International expansion
Brand image in sports
Social media expansion
Threats
Competitors
Focused solely on sex
Degrades women
Old Spice Advertising
Founded 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
Old Spice Advertising
The 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
Humor Advertising
Old Spice Social Media
Response Campaign in 2010: Answering Twitter and Facebook Queries
Over 180 short commercials
Targeted social media celebrities, such as Ellen DeGeneres
Personalized ads
Raw Data Analysis
U D E M E A K PA E T E
Sales in the Industry
Average Amount per Ad
$250,000
$229,557.14
$200,000
$150,000
$100,000
$84,300.00
$54,670.21
$50,000
$0
Dove
Axe
Brands
Old Spice
Average Advertising Time
17
16.5
Seconds
16
15.5
16.49
15
14.5
15
14
Old Spice
15
Axe
Brands
Dove
Old Spice Primetime Advertising
Old Spice Advertising
• Majority of prime time
advertisements took
place on sports related
programming
Programs Advertised On
WORLD SRS GAME 5
BROOKLYN NINE-NINE-FOX
GOTHAM-FOX
NBA BSKB PLYFF GM
NFC CHMPSHP GM
0
0.5
1
1.5
2
Number of Advertisements
2.5
Axe Primetime Advertising
Programs Advertised On
SATURDAY NIGHT CLG FTBL
5
NBA COUNTDOWN-ABC
1
NBA BSKB PLYFF GM
1
NCAA BB PLYF GM
1
• All of the advertisements took
place during sports-related
programs
• Reinforce males as target
audience
Number of Advertisements
Dove Primetime Advertising
• Advertised on 100+
shows during
primetime
• Indicative of wide
audience reach
• Larger target
audience
Olay Primetime Advertising
5
4.5
4
3.5
3
2.5
No soap advertisements by
Olay during prime time
2
1.5
1
0.5
0
Category 1
Category 2
Series 1
Series 2
Category 3
Olay
• “Age is the enemy”
• Age renewal, vanishing creams
• Brand image has trickle down effect to their soap brand
Target AudienceMiddle Age women
hoping to retain youth
Recommendations
Olay
Look for growth potential in soap segment
Axe
Show more initiatives towards CSR
Engage the female audience to buy for significant others
Old Spice
Introduce “traditional” line, catered to men 40+
Capitalize on gaps in market for older men
Recommendations
Industry
React to sluggish sales for bar soap, shift emphasis
Complementary Advertising (Health & Beauty)
Cater towards a larger ethnic audience
Questions?
Thank you!