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BRAND EXTENSIONSSrikanth
PGP30231, Sec A
srikanth.muraleedharan@
gmail.com
7054620157
THE CATEGORY
THE BRAND
THE EXTENSION STP
THE 4P’s
THE MANUFACTURER - HULLargest FMCG maker in India
Unilever owns 51.5% controlling stake
INR 2000 Cr + Brands: 6INR 1000 Cr + Brands: 6INR 0500 Cr + Brands: 5
QUICK FACTSAnnual Sales: INR 30171 Cr 33% in 4 years
EBIT margin: 16.3% 350pts from 2011
Promo Spends: INR 3875 Cr 40% in 16 Qrtrs
Personal Care • Skin Care• Skin
Cleansing• Hair Care• Oral care
Foods• Spreads• Savories
MARKET PRESENCEHome Care • Laundry• Household • Water
Refreshments• Beverages• Ice-cream
THE CATEGORY THE BRAND THE EXTENSION THE 4P’s STP
MECHANICS OF THE DEO CATEGORYStable Category growth by
value
• 2012: 35%
• 2013: 28%
Men Women
Value share
• Higher % of working class men
• Use of men’s deodorants by women due to its strong smell
New Trends in Promotional
Strategy
No-gas Long lasting
Fragrance varietiesAntiperspirantSkin-whitening
Sensuality
Brand Equity mostly built through TV ads
Market
Distribution
• Urban: 87%
• Rural: 13%
3.4% of entire Personal
Care
Total Sales of $19.5 million
Related: Grooming, Hair
CareTHE CATEGORY THE BRAND THE EXTENSION THE 4P’s STP
THE PARENT BRAND - AXE
2011 2012 2013 2014
46 45 36 28
Axe Competitors
185
249
319
394
Indian Deodorants Market
The Competition – Market Share
Million USD
2011 2012 2013 2014
THE CATEGORY THE BRAND THE EXTENSION
Introduced in 1999, leader till 2011
Declining sales and share in a growing category
BRAND MANTRAhelp men look, smell, and feel their best
THE 4P’s STP
THE EXTENSION
CURRENT MARKETS
NEW MARKETS
CURRENT PRODUCTS
NEW PRODUCTS
Penetrate Product Dev
Market Dev Diversify
Category: shower gel, aftershave
THE CATEGORY THE BRAND THE EXTENSION
Line: Axe Signature collection
Target the same customer segment• Leverage brand awareness• Enhance brand image
THE 4P’s STP
THE CATEGORY THE BRAND THE EXTENSION
THE LINE EXTENSION – AXE SIGNATURETAGLINEDon't Fade Away
USP3x more perfume
Long lasting fragrance PoD
No-gas perfume PoP
Seduction - parent brand theme
Low priced
MARKET30% of overall Deodorant market
Top 4 players now offer “no-gas”
TARGET GROUP18 – 25 year old males
Altered proposition will induce trials from old loyalists
Capitalizing existing brand knowledge to convey the message
THE 4P’s STP
THE CATEGORY THE BRAND THE EXTENSION
THE 4 P’s - PRODUCTFEATURESLong lasting fragrance
No gas, 100% fragrance - A first for the brand- Matching the category trend
VARIETYdefinitive collection featuring four variants- Suave- Mysterious- Intense- Rogue
Original Metallic design refined, moving away from distinctive “twisting” cap
Shift in design philosophy:- From being meant for young males, to
attract girls- To being used by more mature youth
to complement their personality
Creating new usage instances for consumers – small portable “Bullet” can
Extensive dermatological testing to prevent side-effects
THE 4P’s STP
THE CATEGORY THE BRAND THE EXTENSION
THE 4 P’s - PLACEFEATURESLeverages HUL’s extensive distribution network
Premium eye-level shelf space in Malls, Modern trade outlets
Distinctive in-store communication
Over the Counter strategy in medical stores and small retail outlets
Available through popular urban e-commerce retailers including BigBasket, Purplle, etc
THE 4P’s STP
THE 4 P’s - PRICE
LOW PRICE
HIGH PRICE
LOW QUALITY
HIGH QUALITY
Economy Penetration
Skimming Premium
₹ 225 for 122 ml can, for all variants
Premium pricing wrt rest of Axe range
Cheaper wrt expensive designer colognes
THE CATEGORY THE BRAND THE EXTENSION
Axe Signa-ture
Axe Fogg Ferrari Red Old Spice Park Avenue
225
180
225
180204
COMPETITIVE PRICING600
THE 4P’s STP
THE CATEGORY THE BRAND THE EXTENSION
THE 4 P’s - PROMOTIONCentral Brand theme – attracting women
Brand Extension shifts the theme - from “weapon of mass seduction”- To “complements his strong personality”
Combines the messaging of - Long Lasting Fragrance- 3x perfume- Central brand theme
Integrated Communication Strategy using traditional and digital media
Axe Signature TVC vs older Axe TVC
THE 4P’s STP
SEGMENTATION AND TARGETING
THE CATEGORY THE BRAND THE EXTENSION THE 4P’s STP
BEHAVIOURAL DEMOGRAPHIC GEOGRAPHIC PSYCHOGRAPHICOCCASSION: Regular
BENEFITS: Quality, Economic
USERSTATUS: Regular User
USAGERATE: Medium
AGE: 16 to 28 years
GENDER: Male
INCOME: Middle, Upper Middle
JOB: Students
MARITALSTATUS: Single
LOCALITY: Semi - Urban, Urban
LIFESTYLE: Outdoor - Oriented
PERSONALITY: Fashion - Oriented Trendy
Young Urban males, looking for a quality product at economic price-point
Extensive Brand awareness, compelling campaign styles
POPs and PODsCOMPETITIVE FRAME OF REFERENCE
THE CATEGORY THE BRAND THE EXTENSION THE 4P’s STP
- Perfumed Deodorant Spray- Good quality- Economic price- Fragrance Varieties
POINTS OF PARITYCategory PoP:- Wide Range of fragrances- Standard quantity for SKU (~120 ml)- Leak-free sturdy spray cap
Competitive PoP:- No gas, 100% perfume- More value for money- Single can lasts longer
Competitive PoP:- Relatively high price point
POINTS OF DIFFERENCECRUCIAL POINT OF DIFFERENCE:3x Longer Lasting Fragrance
Other PoDs:- Brand’s expertise as “Weapon of seduction”- Strong fragrance
THE CATEGORY THE BRAND THE EXTENSION THE 4P’s STP
PERCEPTUAL MAPSSTRONG SCENT
WEAK SCENT
FLASHY ADVERTISING
DULLADVERTISING
Product Feature vs Promotional Strategy
AXE
Old Spice
Gillette Garnier Dove
Nivea Rexona
Adidas
Impulse
Characteristics vs TG vs Pricing
Sporty
Wellness
Freshness
Feminine
Masculine
Fantasy
Men Unisex Women
Economy
Premium
PRICING
REFERENCESRies, A., & Trout, J. (2000). Positioning the battle for your mind (20th anniversary ed.). New York, N.W.: McGraw-Hill.
Keller, K. (1998). Strategic brand management: Building, measuring and managing brand equity. Upper Saddle River, N.J.: Prentice Hall.
Kotler, P. (2000). Marketing management (Millennium ed.). Upper Saddle River, N.J.: Prentice Hall.
Euromonitor International Reports:1. Deodorants in India, Category
Briefing2. HUL in Beauty and Personal Care
HUL Corporate:3. Annual Reports4. Investor Relations Document5. Brand Articles: Axe
ET article 1ET article 2
Customer review on Amazon.in, Snapdeal.in’
THANK YOU