Rb Case Study Mortein

8/10/2019 Rb Case Study Mortein

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Agenda

Mortein History & Background

The Pest Control Market

Competitor Overview

Consumer Insights

Key Challenges Exploring New avenues of growth - Questions


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Brand Background


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Mortein (History)

Manufactured as an insecticidal powder in the 1870s by J Hageman a Germanimmigrant to Australia.

Mortein mort (dead one) ein (one).

Hageman used crushed chrysanthemum flowers to produce a pyrethrum extract.The powder was originally sprinkled about.

1920s a squeeze puffer was developed.

1928 Hageman developed a liquid version. He combined this with kerosene andhad a pump pack designed (the traditional flint gun) which allowed the insecticideto be sprayed into the air or onto the pests themselves.

Mortein was first advertised in a lengthy infomercial in 1956 and was one of the firstTV ads to be produced and shown.

Hagemans product was distributed wholesale by Samuel Taylor who ran his ownbusiness until his death in 1995. Soon after that the business went broke.


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Mortein (History)

In 1909 F.S Steer and Thomas Jackson acquired the business. They revived theSamuel Taylor business and set it up as a proprietary company in 1937 as SamuelTaylor Pty Ltd.

By 1953 Mortein was already a household name when the Samuel Taylor companypioneered the aerosol industry in Australia by introducing the Pressure Pak.

In 1969 the Samuel Taylor company was bought by Reckitt and Coleman.

Mortein was developed and made in Australia and is been the leading brand ofhousehold insecticide in Australian homes for more than a century

Mortein is the #1 Pest Control brand in Australia

Mortein is the most recognised and most widely used household insecticide inAustralia


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Mission:

To help families enjoy the great Australian way of life freefrom annoying and disease carrying pests

Vision:

Be the undisputed leader in providing innovative, smart and safe

solutions to everyday pest problems through the intimate

understanding of Australian families

Mortein Vision & Mission


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MORTEIN

73%

Rodent Control

6%

FIK

21%

CIK

41%Area Repellents

7%

Bombs

8%

Coils

3%

Electrics

5%Ant 5%

Bombs 7%

Outdoor Surface 14%

Baits 5%

Portfolio Structure Australia

Indoor Surface 10%

FIK

20%Rodent

5%

Coils 3%

Electrics 4%

73%


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Pest Control Category


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$123m

$139m

+4.4 %

+15.1%

+2.5 +25.2 -29.7%

-7.3%

Season 03/04 Season 04/05 Season 05/06 Season 06/07

$118m

The pest control category is highlyseasonal

$129m

PIR segmentdown -$5Mversus YA


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The pest control category is a diverse& complex portfolio

EL

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Others

PL

SCJ

RB

FIK

IS

S

OSS

DI

Y

Bo

mb

Ba

its

An

t

AR

EP

Moth

PI

R

Ro

dent

60.552.4

73.

3

73.8

81.4

73.1

50.0

25.2

82.

7

75.0

32.4

22.028.7

26.

7

24.218.6

26.8

33.6

17.3

9.6

17.514.1

4.3

4.7

50.0

39.2

10.8

67.6


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Segment OverviewValue Split

Pest Control is a highly segmented market with 48% of the market split between 9 similarsized segments

FIK, ISS & PIR are the 3 largest value segments

AC Nielsen Scan Data


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Total Pest Value Share & Growth


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Consumer Overview


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75 %of Australian Households

purchasePest Controlproducts.

Household Penetration


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What triggers consumers toenter the category?


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OUTWARD

INWARD

AFFILIATION

DOMINATION

FREEDOM (23%)Pests are:A nuisance BUT a part of nature

Motivated by:- Low level of anxiety

- Harmony with nature

Product Benefits:- Safe to use/ not harmful for pets & kids- Natural ingredients & pleasant fragrance

--> LIVE & LET LIVE

POWER (15%)Pests are:Maddening

A blot on the perfection of their home

Motivated by:- Feeling of superiority

- House pride

- Hunting, battling & killing

- Power & assertion

Product Benefits:- Strong, powerful & fast

- Instant kill

-->VICTORY

-SECURITY (37%)Pests are:- A threat/ unsafe

- DirtyMotivated by:-High level of anxiety about pests &harmful chemicals

- Creating a safe environment for loved ones- Need to feel safe, secure & shieldedProduct Benefits:Safe to use/not harmful for pets, kids & environment

--> PROTECTION

-CONTROL (25%)Pests are:Intruders

Motivated by:- Concern over social judgment- Desire to feel in-control- High level of anxietyProduct Benefits:- Powerful, long-lasting action- Methodical application- Efficacious prevention

--> EMPOWERMENT

A new approach to growing the Pest Control categorybased on consumer need states

TNS Consumer Segmentation


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Consumer buying profiles

Light Buyers Medium Buyers

Heavy

Buyers

Heavy buyers: 20 % of HH -> 48 % volume

Medium buyers: 40% of HH -> 37 % volumeLight buyers: 40 % of HH -> 15 % volume

Freedom & Security

Control & Power

ACNielsen homescan


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Shopping the Category

Low pre-trip planning

Is a long drawn out process.

consumers are overwhelmed and need to self-educate themselves


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Purchasing decision hierarchy

Pest Type

Format Type

Area Used

Brand

Price

dec

reasingimportance

Colmar Brunton ShopperWatch


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Documents

Rb Case Study Mortein