BRAND DOSSIER

AXE DEODORANTS

DEVELOPED BY

NIMAL NITHYANANDAM RAM MOHAN M.P. NIVEDITA SEN SRIRAM S.R.

Agenda
Brand history and its global expansion Positioning Advertisement AIDA Segmentation SWOT Analysis Competition Diversification Distribution System Future Directions Survey Hypotheses & Inferences Recommendation

Brand history and its global expansion

1983 UNILEVER launched AXE in France inspired by another of its brands IMPULSE 1985 renamed AXE to LYNX in UK,Ireland, Australia, New Zealand AXE launched next in Latin America, Asia, Africa 1999 - launched in India

2000 - launched in USA, Canada

Global Expansion in 40 countries

Positioning
Naughtiest Seductive becoming a babe-magnet is just
a spray away

Young,Trendy
same positioning space as a Fastrack or Pepsi

Advertisement

Advertisement
A- Awareness I Interest D Desire A Action

Awareness
WHY? to accelerate market penetration

HOW? Describing fragrance by using a simple descriptor eg : AXE Dark Temptation as irresistible as chocolate
WHY? Testers not available everywhere

THEREFORE? Unique descriptors for each variant for the clear understanding of the customer

Interest

HOW?

Humour

Desire
HOW? Brand positioning as babemagnet

raised to sublime heights with campaigns such as Even Angels/Goddesses will fall

Action
HOW?

Promotional campaigns
CALL ME FREE WAKE UP SERVICE

Sales promotions Sweepstakes : AXE chits with phone nos. in Levis jeans, where AXE customers could call to connect to an AXE angel Fragrance cards in CCD, bar, club outlets

Promotional campaigns

AXE CALL ME 3.5 million calls 35% repeatcallers

AXE WAKE-UP SERVICE

Segmentation
GEOGRAPHIC URBAN SEMI - URBAN DEMOGRAPHIC
AGE GROUP : 16 -25 YRS. GENDER : MALE INCOME GROUP : MIDDLE AND UPPER MIDDLE OCCUPATION : STUDENTS AND BACHELORS

PSYCHOGRAPHIC
LIFESTYLE : OUTDOOR ORIENTED PERSONALITY : FASHION ORIENTED, TRENDY

BEHAVIORAL
OCCASSIONS : REGULAR BENEFIT : QUALITY, ECONOMICAL USER STATUS : REGULAR USER USER RATE : MEDIUM

SWOT Analysis
Strength
1. Each of the fragrances is created by international fragrance diva Ann Gottlieb. 2. The formulation is a base with higher efficacy. 3. Excellent advertising targeting the youth. 4. Good distribution, Promotions and campaigns for luring customers. 5. Also provides grooming range like shaving gel, foam, After-Shave lotion, Cologne Talc, shampoo & conditioner, face wash, shower gel.

Weakness Opportunity

1. Only an urban market phenomenon. 2. High pricing reduces the target market. 3.Controversial advertising often leads to legal issues. 1. Coming up with Limited Edition fragrances.
2. Tie up with gym chains.

Threats

1. Deodorants sales are seasonal. Maximum sales happen in the summer months (April to September). 2. Competition from Premium Segment

Competition

Tackling competition ARMPIT WARRIORS

Principle of Defensive Warfare : Brand Cannibalisation launched AXE anti-perspirant to take on NIVEA Silver Protect & Garnier Mineral Widening the cake, not the slice Market penetration of deodorants - 2-3% AXE 25% market share 2009 - Rs.500 cr, now - Rs.900 cr

Diversification
Capturing the entire male grooming kit
AXE Deodorants
AXE AXE AXE AXE Antiperspirants Hair shampoo & conditioner Face scrub, face wash, shaving gel, after shave Shower gel

AXE ANARCHY for HIM & for HER

Future directions
Move to digital medium to understand young mens consumption habits
Consumer engagement through online games

AXE Instinct

Played by over 3mn , 55% repeat players

AXE Musicstar
Played by over 4 mn

AXE Angels fan page on facebook over 7 lac friends

Survey

Target Group : young males between 15-25 yrs.

Sample size : 60

Hypothesis 1

AXE is able to differentiate itself from other male deodorants through its advertisements.

Advertisements as differentiators

Attributes through Ads

Chart Title
4.5 4 3.5

Frequency of Ads seen

Chart Title
100% 90% 80% 70%

3
Axis Title 2.5 2 1.5 1 0.5 0

Park avenue Set Wet Zatak Adidas Axe Garnier Men

60% 50% 40% 30% 20% 10% 0% set wet Adidas Park Avenue Garnier Men Axe Cinthol Wild Stone

Cinthol
Wildstone

Never seen

Sometimes seen

Seen a lot of times

Inference
Positioning established as the naughtiest brand, highly youth-centric, extremely sexy, and highly masculine. Ads conveyed the same and differentiated the brand from its competitors. Hence, hypothesis 1 is proven to be true.

Hypothesis 2

Axe customers have low brand loyalty.

Change of Brand Per Year

Repeat purchase

Never 10% Four times or more 23% Once 20% All 5 times 2% Thrice 25% Twice 22% 4 times 8% Never 27%

1 time 18%

2 times 23%

3 times 22%

Brand loyalty

I'll search for my brand and if still not available ,i'll buy another brand. 18%

I'll buy another brand 42%

I'll go to another shop to buy my brand 40%

Usage

above 2 years 22%

Less than 3 months 29%

1 -2 years 15%

3 -6 months 20% 6 months - 1 year 14%

Brand loyal to Axe

Brand loyalty

I'll go to another shop to buy my brand I'll search for my brand,if it's still not available,i'll buy another brand
Axe 33%

33%

Others 67%

67%

Latest purchase of Axe loyal customer

4 times 17%
2 times 33%

Never 17%

3 times 17%

All 5 times 16%

Inference
33% of 30% of AXE loyal customers never change or change their deodorant once on an average per yr . Out of these 33% no AXE loyal customer is ready to buy another deodorant in the absence of AXE, and their last 5 purchase behavior of AXE is shown below. Hence, Hypothesis 2 is disproven.

Recommendation
The central theme of seduction is also being played with by other brands too as Set wet Zatak and Wildstone for the young male. Hence, the differentiator factor of AXE is reducing. Our recommendation is that AXE should reposition itself for a TG which is above 25yrs aged males focusing on other attributes such as cool and adventurous which its low on scale presently.

Thank you