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

2. 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

3. Industry Background
Abigail clifford

4. 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

5. 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

6. 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

7. 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

8. Brand Market Share

9. 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

10. 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

11. 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

12. 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

13. Unilever Unilever is a Britain founded multinational company
400 brands focused on health and well being
In 2014 they recorded a profit of 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%

14. Industry Market Share

15. Female Personal Care Brands
Tess Berghoff

16. 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

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

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

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

20. 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

21. 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

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

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

24. Olay Advertising 2014 ‘Your Best Beautiful’ Campaign
Campaign Ambassador Katie Holmes
“I want to have skin like a royal”

25. Olay Advertising Online Social Media Presence
6.3 Million Facebook followers
100,000 Twitter followers
‘Olay for you’ website & mobile app

26. Male Personal Care Brands
Mahak Goel

27. 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

28. 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

29. Axe Advertising

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

31. 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

32. 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

33. 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

34. Humor Advertising

35. 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

36. Raw Data Analysis
Udeme Akpaete

37. Sales in the Industry

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

39. 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

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

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

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

43. Olay Primetime Advertising
No soap advertisements by Olay during prime time

44. 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

45. 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

46. 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

47. Questions?
Thank you!