Target Market Definition: Old Spice
Jason Jagosh [pic] Maria Vallejo [pic] Ekaterina Vorobyova
Jesika Watson [pic] 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.
Table of Contents 3
Product Statement 4
Analysis of the External Environment 5
Industry Trends
Competitive Trends
Technological Trends
Economic Trends
Political, Legal, and Regulatory Trends
Demographic Trends
Lifestyle Trends
Cultural Trends
Analysis of the Customer Environment 11
Who?
How Many?
What?
Where?
When?
Why and How?
Why Non-Customers?
Value Proposition and Positioning Statement 15
Analysis of the Internal Environment 15
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 18
Issues Analysis 22
Marketing Goals and Objectives 23
Marketing Strategies 25
Target Market Definition
Marketing Implementation 26
Marketing Budget 36
What We Learned 37
Works Cited 39
|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.
|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 2009-20014. 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 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 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.
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.
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 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.
|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 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 + 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 after- shave 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 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 , , , and , just to name a few. 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 . 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 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.
|Value Proposition |
Value Proposition
|Company and |Target Customers |Benefits |Price |Value Proposition |
|Product | | | | |
|Old Spice |Post-adolescent males, |Superior quality grooming |Average with |Provide superior quality |
| |women in relationship |products with the freshest |competitors |grooming 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.
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.
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.
|SWOT Analysis |
Strengths
|Statement of Internal |Company Performance |Importance |Strength Index |
|Strengths | | |Number |
| |1 Low |2 |3 |
| |1 Low |2 |3 |
| |1 Low |2 |3 |
| |
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.
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.
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.
|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 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.
|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.
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.
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
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
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.
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
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.
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.
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.
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.
|Budget |
|Samples to Young Adults |Old Spice Battle of the |Implementation of Social media |Placement in an Upcoming |Booths at college 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
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