Soap Industry Presented By: Abigail Clifford, Tess Berghoff, Mahak Goel, Udeme Akpaete

Why the Soap Industry? Interesting Product positioning comparable to diamond industry Relatively inelastic demand Homogenous nature demands unique advertising Differentiation based on brand image Traditionally steeped in negative advertising The soap industry has been hailed for one of the greatest advertising campaigns in history

Industry Background Abigail clifford

Industry Background Soap is a multi - billion dollar industry Majority of soap is sold in supermarkets and mass merchants Total number of units sold each year is 3.1 million (10 billion pounds) Hotels discards 2.6 billion bars of soap every year Humanitarian efforts for washing hands

History Production began during the colonial times where main ingredients where in abundance Remained a locally produced good until Revolutionary War Early 19th century and the rise of the Textile Industry stimulated the rise of soap making firms By the early 1840s Cincinnati became the soap industry leader containing 17 companies including Proctor & Gamble No Advertising, No Branding, Small Firms

Post Civil War Emergence of brands and product differentiation Advertising became the biggest innovation Invention of radio created a new avenue of advertisement P&G pioneered radio advertising through creating daytime serial dramas By 1962 soap firms were spending 250 million annually on advertising 90% on TV P&G spending 190 million

Todays Market Aging population has paved the way for new companies and increased product differentiation Rising germ free attitude Increased preference towards liquid soap over bar soap Innovation in firms to create soaps with dual purposes

Brand Market Share

The industry 650 establishments in the US alone The change in the millennium market creates slightly easier entry through change in preferences and innovation Still highly competitive No government regulations Success comes from businesses of scale

Advertising Differences Women men Advertise to achieve emotional response Highly combative through comparative advertising Easy to repeat innovative additions to product Focus on overall image Offer many more aspects to brand More persuasive than combative Scent of product large factor

Organization Profitability of individual companies depends on efficient operations and effective sales and marketing Pricing set by the firms The top 50 companies control 90% of revenue Most firms manufacture in similar manners US is the biggest consumer of soaps

P&G In August they began to streamline their brands down to their 80 most profitable Their company market share is divided into personal care 35%, food 28%, homecare 18%, and refreshment 19% The overall goal is to reduce carbon footprint through innovation and sustainability In 2014 they recorded 81 billion in sales In august they began to streamline

Unilever Unilever is a Britain founded multinational company 400 brands focused on health and well being In 2014 they recorded a profit of 48.44 billion euros Revenue of personal care products 17,739 billion euro Skin care and hair care market worldwide 12.9% Grocery store market world wide 50.1%

Industry Market Share

Female Personal Care Brands Tess Berghoff

Dove Subsidiary of Unilever Founded in 1957 Dove Beauty Bar Headquartered in the United Kingdom Target Market: Women 20-40 Estimated $5.8 Billion brand value https://www.prophet.com/blog/aakeronbrands/138-dove

Dove Advertising Original focus on product attributes Ads featured traditional models 2004 Campaign for Real Beauty Celebration of diversity Widen definition of beauty

Dove Advertising Dove ‘Beauty Sketches’ 114 Million Views in one month Lead to 4 Billion blogger media impressions

Dove Advertising Social Media Presence 23 Million Facebook followers 164,000 Twitter followers Interactive Community #choosebeautiful campaign

Dove Advertising Corporate Social Responsibility Advertising Goodwill Image Acceptance Breast Cancer Campaign Launched ‘Movement for Self Esteem’ in 2010 Partnered with the Global Advisory Board, Boys & Girls Club, Girls Inc, and Girl Scout http://www.businessinsider.com/how-doves-real-beauty-sketches-became-the-most-viral-ad-video-of-all-time-2013-5

Olay Subsidiary of Proctor & Gamble Founded in South Africa in 1953 “anti-aging” fluid Acquired by P&G in mid 1980s Target: Women 30-50 Estimated $4 Billion brand value

Olay Advertising Focus on Elegance and Exclusivity Adherence to Traditional Beauty Standards Models and Celebrities

Olay Advertising 2012 Launch of Olay Essentials Attempt to target a younger customer base Launch of mobile app and advertisements

Olay Advertising 2014 ‘Your Best Beautiful’ Campaign Campaign Ambassador Katie Holmes “I want to have skin like a royal” http://www.beautyworldnews.com/articles/7524/20140122/olay-set-to-launch-new-your-best-beautiful-campaign-mirror-olay-collections-pro-x-regenerist-fresh-effects-total-effects-body-image-self-esteem.htm

Olay Advertising Online Social Media Presence 6.3 Million Facebook followers 100,000 Twitter followers ‘Olay for you’ website & mobile app http://www.bustle.com/articles/12623-olays-new-ad-campaign-your-best-beautiful-promotes-unachievable-beauty-goals http://www.beautyworldnews.com/articles/7524/20140122/olay-set-to-launch-new-your-best-beautiful-campaign-mirror-olay-collections-pro-x-regenerist-fresh-effects-total-effects-body-image-self-esteem.htm

Male Personal Care Brands Mahak Goel

Axe Overview Subsidiary of Unilever First launched in 1983 in France Target Market: Men 18 – 30 Estimated Brand Value: $421 Million Products: Deodorants, shampoo, shower gel, aftershave, cologne, skin care, hair styling products

Axe Advertising The Axe Effect Campaign Popularity increased in 2000s in America Main focus is how the everyday man is irresistible when he wears Axe Heavy use of models Sex Appeal

Axe Advertising

Axe Social Media Shower Pooling Campaign Facebook Likes: 4M Twitter Followers: 135 K

Axe SWOT Strengths Fragrance Brand positioning Variety of product International reach Availability Weaknesses Narrow Target Expensive Sexual Appeal Products overlooked Design Opportunities Large product line for men International expansion Brand image in sports Social media expansion Threats Competitors Focused solely on sex Degrades women

Old Spice Advertising Founded by the Shulton Company Introduced Early American Old Spice for Women in 1937 Closely followed by Old Spice for men in 1938 Bought by Proctor and Gamble in June 1990 Target Market: Men 18 onward Estimated Brand Value: $903 Million Products: shaving cream, aftershave, deodorant, body wash, and body spray

Old Spice Advertising The Man Your Man Can Smell Like Campaign Marketing to Women for Men’s Products Heavy focus on masculinity Celebrity Endorsement: Former NFL Player Isaiah Mustafa

Humor Advertising

Old Spice Social Media Response Campaign in 2010: Answering Twitter and Facebook Queries Over 180 short commercials Targeted social media celebrities, such as Ellen DeGeneres Personalized ads

Raw Data Analysis Udeme Akpaete

Sales in the Industry

Average Amount per Ad NFC Championship Game (49er’s vs Seahaws)

Average Advertising Time Dove focuses on the health and beauty benefits, detailing vitamins and minerals Old Spice/Axe are humor content where the emphasis is heightened by the brevity, making you want to watch over and over Dove

Old Spice Primetime Advertising Majority of prime time advertisements took place on sports related programming

Axe Primetime Advertising All of the advertisements took place during sports-related programs Reinforce males as target audience

Dove Primetime Advertising Advertised on 100+ shows during primetime Indicative of wide audience reach Larger target audience

Olay Primetime Advertising No soap advertisements by Olay during prime time

Olay “Age is the enemy” Age renewal, vanishing creams Brand image has trickle down effect to their soap brand Target Audience-Middle Age women hoping to retain youth

Recommendations Olay Axe Old Spice Look for growth potential in soap segment Axe Show more initiatives towards CSR Engage the female audience to buy for significant others Old Spice Introduce “traditional” line, catered to men 40+ Capitalize on gaps in market for older men

Recommendations Industry React to sluggish sales for bar soap, shift emphasis Complementary Advertising (Health & Beauty) Cater towards a larger ethnic audience Industry players must recognize that ethnic consumers want to feel that a product is designed specifically for their needs. Reformulating products may not be necessary; rather changes in product packaging and marketing could help drive product acceptance among these key category users

Questions? Thank you!