Upload
anubhuti-gupta
View
249
Download
1
Embed Size (px)
Citation preview
IIM Kozhikode
IMC Case Submission
The Gillette Company: Dry Idea Advertizing
Group 8
Anubhuti Gupta 15/72
Dwip Sengupta 15/86
Riyas Moosa 15/45
Sanish Machyan 15/110
Shiladitya Sengupta 15/114
Q1. Analyze Deo market and Dry Idea’s Place in it. What drive the category from the
consumer behaviour point of view?
Ans:
Industry Overview:
By 1983, the US market for underarm products had grown to 506 million units,
representing over $1 Billion in manufacture’s sales
Category: two types: Deodorants (25% of sales), Antiperspirants (75%)
In 1983: underarm products were available in 4 major application forms:
- Aerosols
- Roll-ons
- Sticks
- Solids
Efficacy rate is defined as the product’s ability to reduce thermally induced perspiration
versus untreated control measures. 25%-40% for aerosols, 25%-45% for solids and from
40%-55% for roll-ons
Table A in the case shows a growth of 6 % for sticks, 21 % for Solid, 3 % decrease in the
sales of Aerosol and Roll-ons and 14 % decrease for other products in 1983 compared to
the figures of 1982. Clearly showing an increasing trend towards solid form of
Deodorants/AP.
The U.S. Deodorant/Antiperspirant industry was dominated by six manufacturers:
Sl. No. Manufacturer Brands Market share
in terms of
units
1. Procter & Gamble Secret and Sure Brands 21.8
2 Gillette Right Guard,Soft &Dri,
Dry Idea
17.1
3 Carter-Wallace Arrid 11.4
4 Mennen Mennen, Lady Speed
Stick
9.9
5 Bristol Myers Ban 9.1
6 Shulton ChoiceOld Spice, Lady’s 6.2
Market Segmented as Males, Females and Unisex
In 1983 deodorant/Antiperspirant advertisers spent a total of $ 121 million on media;
13% increase over 1982
From Exhibit 3:
- Of the total users of Deodorants/Antiperspirants: 48% are males and 52 %
females
- Of the 48% males and 52 % females: Dry Idea users are 17 % and 83 %
respectively
- Among the roll-on users 30% are males and 70% are females
- The 55+ age group has highest users of Deodorant/AP and lowest is in the 12-17
Age group
- The age group of 25-34 have maximum Dry Idea users, minimum in the 55+ age
group
- Highest Roll-on users in the 55+ age group and lowest in 12-17 age group
- The highest users of Deodorant/AP among the PCD category is in the eastern
region and lowest in South Central
- Among the Deodorant/Ap users in different regions, Dry Idea users are highest in
North Central and lowest in Western Region
Gillette
Gillettes’s worldwide sales in 1983: over $2 Billion with before-Tax profits of almost
$239 million
Company’s US operation: contributed about $157 million in operating profits on sales of
approx $ 906 million
Four major product lines:
- Blades and razor
- Toiletries & Cosmetics
- Writing instruments
- Electric shavers and small appliances
Divided into three product-focused units:
- The safety Razor division
- The paper mate division
- The personal care division
PCD: products in the deodorant/anti-persipirant, hair care and skin care : accounted for
approximately 20% of Gillette’s total U.S sales
Dry Idea:
Two consumer benefits:
1) Improved dryness protection
2) A dry-feeling application
Dry Idea had a silicon suspension formulation compared to the industry norm of water
based formulations
Two fragrances: scented and unscented
Two sizes: 1.5 oz and 2.5 oz
Adopted premium pricing strategy
As per exhibit 4:
Dry idea share in the total Deodorant/Antiperspirant market increased from .7% in
1978 to 4.8% in 1981, then it came down to 4.5% in 1982 and 4.2% in 1983
Dry Idea’s market share in the roll-on category increased from 1.4% in 1978 to
14.6% in 1982, then it decreased to 14% in 1983
The decline in the market share can be attributed to
Market shift away from Roll-ons
Low Brand awareness
Inferior media spending
Increasing price differential
Increased competition in the roll-on category
From the Consumer Behavior point of view, the key success factors In the industry:
Distinctive Brand Positioning
Strong advertising and promotion support for established brands
Product line expansion into non-aerosol forms
High efficacy rate of a product
Dry feeling with Body odor protection
2. Understand the Brand management (client-gillette) and Account management (agency-
BBDO) organization based on the case data, read and follow the interactions (scenes 31-32,
62-44 in video transcripts) and analyze/ compare the client and agency perspectives on the
Gillette marketing and advertising issues faced during the period.
Issues:
The commercials are not impactful. It had low recall. Customers were not able to relate it.
The advertizing budgets of competitors are around three times that of Gillette.
The roll-on market size is declining.
No identifiable brand personality.
They keep changing the themes of the commercials so there is no proper positioning in
the minds of the customers.
Client – Gillette’s perspective:
Launching a strategic test, free of exceptional variables.
o Figure or what drives the business – efficacy, aesthetics, or both.
o If they need to go into solids?
They should run the “Start to Finish” campaign as it
o successfully communicates the balanced efficacy and aesthetics story
o is in consistency with the “Challenge” campaign
o offers long-term viability. There is a brand personality to it and they can extend it
Put “Start to Finish” at least for the next six to twelve months
“Spokesperson” no-water
o Attribute oriented not benefit-oriented
o Is a short term-benefit
Agency – BBDO’s perspective:
“Spokesperson” should be on air till we develop a stronger commercial
o Communicates the brand heritage
o Mentions the no-water
o Strongly positioned among women
o Has a high recall rate
3. What really is the problem? What alternative Carol has and what should she do?
Problem:
Gillette had tested two commercials for the Dry Idea- “New start to finish” and “All you feel is
dry”.
After spending $500,000 on the advertizing, when they ended up with average advertizing, they
felt frustrated. The recall rate among the females for “New Start to Finish was” 13% and for “All
You Feel is Dry” was 16%. While for men it was 9% and 13% respectively. These figures were
less than the already existing “Spokesman” campaign.
Gillette also was not happy with the effort of BBDO. They felt that they were not getting the
creative attention they deserved.
So, to increase the sales, they needed to advertize more and now they had to select which
commercial to go for.
Alternatives:
Choose one of the two commercials – New Start to Finish or All You Feel is Dry
Continue with the existing “Spokesman” campaign
Develop a new commercial o Continue alliance with BBDO o Contract a new agency
Recommendations:
Short Run:
Continue with the “Spokesman”. The new commercials developed have lower recall
rate. Unless something more interesting is developed, changing it might confuse the
customer of lose all his attention.
Continue with BBDO: The firm should continue with BBDO as it has a long term
relationship and they are already committed to other product lines of Gillette. But
however, they should negotiate with the agency to allocate them a better creative team
and insist on putting in more efforts in it.
Long Run:
Declining sales in the roll-on industry has seen the customers migrating away from the
product. So market research should be done to analyze the cause of this problem and the
customer needs. And thus new improved product variants should be launched to suit the
customer.
Gillette needs to position the product properly. Its twin benefits need to be understood
and appreciated by the customer.
Gillette needs to build relationship with other agency and move the product brand to
some other agency if they continue receiving less fulfilling efforts from BBDO.