Marketing report Axe Deodorant body spray

bản nghiên cứu về các chiến lược marketing của nhãn hàng xịt khử mùi Axe . Bài làm có các phần phân tích cụ thể về Microenvironment, macroenvironment, 4ps, swot và recommendation. trong microenvironment, báo cáo thể hiện được những yếu tố như company, suppliers, competitors, marketing intermediers và publics. trong macro, báo cáo phân tích cụ thể rất nhiều loại môi trường có ảnh hưởng và tác động đến sản phẩm xịt khử mùi Axe

GROUP 1

LECTURER : Ms TRẦN THỊ THU HIỀN

SUBJECT : PRINCIPLE OF MARKETING

GROUP’S MEMBER:

VÕ THỊ NGỌC CHÂU VƯƠNG MINH ANH TRƯƠNG NGỌC PHƯƠNG DUNG NGUYỄN THỤY MINH ANH

LÊ KIM ANH

AXE DEODORANT

BODY SPRAY

MARKETING REPORT

www.hoasen.edu.vn

TABLE OF CONTENTS



Executive summary 3

A INTRODUCTION 5

B MAIN PART 6

I Microenvironment 6

II Macroenvironment 8

III SWOT 10

IV 4Ps 11

V Recommendation 20

VI Conclusion 21

REFERENCE 21

Executive summary

Unilever is a multi-national company owning many of the world’s consumer product brands

in food, beverages, cleaning agents and personal care product Unilever headquarter is in Rotterdam, Netherlands, and London, United Kingdom In Vietnam, the company located in

Ho Chi Minh city (Source: Wiki)

In Doanhnhansaigon newspaper, Unilever is said that its turnover has not stopped growing since 1995 The company increases profit margin from 10 million USD up to 240 million USD in 2002 According to Business Monitor International (BIM), the average growth of Unilever Vietnam turnover is 18.5 % annually in 5 years, and reached the figure of $ 700 million in 2010, $ 1 billion in 2012

One of products which belongs to the company is Axe which is launched in France in

1983 Axe is the best-selling men’s fragrance brand in the world and is market leader in most of the 60 countries, gaining 10%-20% share of the market In Vietnam, Axe increases their sales and market share year-over-year

Axe has a wide range of personal care products:

• Deodorant: deodorant aerosol body spray, deodorant stick, deodorant roll-on,

antiperspirant aerosol spray (Axe Dry), antiperspirant stick (Axe Dry)

This marketing report is conducted to provide a summary of information which helps

people have a deeper look at all element affect to marketing strategies of the Unilever

Vietnam for the product “Axe body spray” and what company’s marketing strategies are in order to gain best sales performance for this product Therefore, it includes a carefully and meticulous observation about micro environment , micro environment and SWOT The most

important, it demonstrates how the 4Ps of marketing mix was used for better marketing of product.

A. INTRODUCTION

During the opening of the current economy, especially after Vietnam joined the WTO, we can not underestimate the importance of marketing strategies to help local businesses

compete with businesses foreign country Because marketing is a function not only in

business, but also the philosophy led the entire operation of the business in the detection and satisfy customer needs

Nowadays, in the market t here are a lot of the products of different brands, that makes consumers have more choices Besides the cosmetics for female development becoming increasing, the products exclusively for men also develop equally Not to mention the

pioneering brands like X-Men or Romano, AXE brand is preferred by consumers and

appreciated in recent times In spite of competing with so many other products, in recent years the turnover of AXE is always in the top of deodorants for men bestseller To achieve this success, surely the leaders of AXE had to implement marketing strategy very

successfully So the strategy that AXE was used is what makes this brand be so successful? While the market for male deodorants is increasingly saturated That is the reason for my group’s report topic is marketing strategy product of AXE deodorant spray

This report helps us to have an insight into most of the market and how companies

implement strategies to promote products and maintain the success of the product Besides, this report will also help students understand the basic knowledge to get a marketing

strategy It is also the foundation for student attend the advanced courses in marketing

To implement this report, our group used reference source from the book as well as

information from the Internet and textbooks Principle of marketing of Hoa Sen University

B. MAIN PART:

1. The company:

Axe is a brand of male grooming products owned and operated by Unilever which is the

3rd largest consumer goods company as of 2011

Unilever is one of the world’s leading suppliers of fast-moving consumer goods such as foods, home care and personal care Their portfolio ranges from nutritionally balanced foods

to indulgent ice creams, affordable soaps, premium shampoos and daily household care products Some of their famous brands are Lipton, Knorr, Dove, Axe, Omo, Sunlight,

Lifebuoy, Clear, Pond’s… and they have 14 brands with sales of more than €1 billion a year

(About Unilever, 2015)

Unilever Vietnam was established in 1995 It is a step in the overall strategy of Unilever Unilever Vietnam is actually a set of 3 separate companies: Lever Vietnam joint venture based in Hanoi, Elida P/S in Ho Chi Minh city and Best Food Company is also located in

Ho Chi Minh city It currently has five factories in Hanoi, Cu Chi, Thu Duc, Bien Hoa Industrial Zone with more than 2000 employees The company has sales distribution

network nationwide through more than 350 major distributors and over 150.000 retail

outlets (“Introduction about Unilever Vietnam”, 2013)

2. Suppliers:

The suppliers provide the resources needed by the company to product its goods and services With Axe, suppliers provide materials for packaging and ingredients for producing

3. Competitors:

Nivea for men X-Men Romano

Brand positioning Body care Comfortable,

manly

Dry, common

Product Product lines Diverse

Roll and Spray PoorRoll and Spray PoorRoll and SprayFunctions Very good,

long time

Comparative ComparativeScent Diverse about

scent, manly Strong scent, like perfume Manly

Causing yellow streaks

on customers’

cloth

Prevent sweat lower than other brands

Deodorizing function not good

Advertising Functional Emotional Emotional

4. Marketing Intermediaries:

- Resellers: Co.op Mart, Big C, Metro, Circle K,…

- Physical distribution firms: These organizations help the company stock and move products to consuming place They have to be strong connected to the company

because it effects on Axe’s extension campaign throughout Vietnam

- Marketing services agencies: including marketing research firms, advertising

agencies, media firms and marketing consulting firms All of them help target and promote Axe products to the right markets The target market of Axe is young man from 15 – 35 years old At this age they really care about the grooming products for men Marketing services agencies are tools help Axe deodorants attack this target market and understand customer needs and demands

- Financial intermediaries: including banks, credit companies, insurance companies and other businesses This factor is very important with marketing campaign of Axe

because it provide financial for company to produce and distribute products

5. Publics:

- Financial publics: this group affects to Axe’s capability of ensuring funds Major publics of financial publics are banks, financial companies, insurance companies

- Media publics: including press agencies, television, magazines,…Axe have to interest

in how they report beneficially about Axe’s products

- Government publics: The activities of company requires to comply with rules of the state about advertising honestly, rights and responsibilities of firm, consumer rights, social environment through the legal system,…

- Local publics: Axe build good relationships with local organizations

- Citizen-action publics: including consumers organizations, environmental groups, minority groups and others One good relationship and meet the requirements of these groups will create good reputation for Axe products and company

- General public: Axe have to follow behaviors of wide public to Axe’s products,

services and activities Axe’s image in public’s eyes influences on marketing activity

of it

- Internal publics: including the workers, managers of Axe

6. Customers:

- Consumer markets: male (especially at age 15-35)

- Reseller markets: Co.op Mart, Big C, Metro, Circle K,…

II. The Macroenvironment:

1. The Demographic Environment

In Vietnam, the population reached 90 million, among them the male population aged 15-50 accounted for nearly 25.5 million people (2013) Percentage of men use care products for men is ~ 50% which sectors deodorant for men only accounted for ~ 18% Of users concentrated mainly in two major cities: Hanoi, Ho Chi Minh City The level of this ratio does not increase over the last 3 years (Mai, 2014)

2. The Economic Environment

One cited statistics from the Chinese press indicate that deodorant industry is heading the Top 2 in 13 categories were to be highly profitable in China In Vietnam, the growth rate of this sector were 24.4% in 2012, higher than the bottled water industry and some sectors of FMCG group (Le, 2013)

Share on deodorant potential of the industry, Mr Phung Ngoc Trang, Deputy General Director of Sales Co ICP (International Consumer Products), said that this is the sector with margins relatively high compared to other sectors in the current period In the future, the market will gradually deodorant industry moves to a spray products, the Rexona, AXE (Unilever PLC) and X-men (ICP) is being considered as the product has many more

advantages

On the other hand, “While the rate of growth in the FMCG sector in six major cities seem to be saturated in recent times, the rural market is emerging as a new source of growth for many manufacturers This story once again be seen very clearly in the first half of 2015 The rural communities in Vietnam make up 68% of 90 million people and now only 54% of sales come from FMCG in countryside Moreover, rural residents are now prioritizing

investment in education, and who had the income growth of about 44% in 3 years Over 2 points above shows potential rural market many opportunities but many businesses have yet

to be known” Identified by Alex Jeater (2015) , Senior Manager in charge of retail

measurement services of Nielsen Vietnam

3. The Technological Environment

Nowadays, the market has a lot of deodorants and cosmetics for men Over time, the deodorants are improved day by day, from book rolls, stick or spray Furthermore, they are complementary components skincare, whitening Besides, they can hold long odor

Cosmetic companies constantly develop their technology in product’s functional and

packaging improvement

4. The Natural Environment

Vietnam has monsoon climate, it is hot and humid all year round Therefore in the

summer, rising temperatures cause much more human body sweat, especially in men This is advantageous to the deodorants have a chance to thrive

5. The Political and Social Environment

As of October, there are nearly 4,200 procedures in the field of tax cuts, facilitate people making administrative procedures (Tu, 2014) Vietnam's business environment is expected

to have much breakthrough in 2015 when the issue of institutional reform, creating the best conditions for the development of the private sector is seen as a prime target today This is a good basis for faster progress of Vietnam in 2015 with a free trade agreement will be signed But it also put Vietnam before new challenges on request finishing faster business

environment, attract investments, generate momentum for the next development steps

According to the annual report on the ease of doing business in 2015, the World Bank noted, areas in which Vietnam has reformed in business regulation is the loan At the same time, Vietnam has helped companies reduce costs by reducing tax corporate income tax rate However, Hang (2014) believed that tax remains the biggest obstacle to business operations

in Vietnam when each unit takes the average taxpayer 872 hours / year

On the other hand, in Vietnam, people are deeply influenced by Asian culture, so when the products or advertisements are introduced to the public, they need a certain delicacy If they have slightly objectionable content, they will not be accepted

6. The Cultural Environment

From past to present, all of them have beauty needs for themselves and attract the

opposite, the fastest way to make an impression that is the scent In business and everyday life, if your body emits a pleasant scent, which means you take care of yourself and respect

the other person However, Chau (2012) said that when no beauty products for men, men often use women's products Thus, when market have the deodorants and perfumes for men, they are very well received This is a favorable factor for the development of deodorants for men.

1. Strengths:

- Send creative messages to customers

- Products with affordable price, easily to buy

- Wide extension around the world

- Succeed in advertising operation

- Strong emotional touch to customers

- Nice, catchy package

- Leader of spray deodorant trend

2. Weaknesses:

- Objectification of provocation, showing a rude attitude, weakening the reputation of the brand

- Inflexible target customer (always young man from 15 to 35)

- Focus on spray products advertising too much while Axe production line is diverse

3. Opportunities:

- Create new product lines, targeting female customers

- Maintain better standards of products quality

- Unified advertising operation throughout the world

- Continuous innovation

4. Threats:

- Risk of becoming a brand for increasing the men sex-appeal in customers’ eyes

- Copied by the competitors

- Destroy the expectation of consumers

- Spray emits have bad influences to natural environment

1. Product :

Product category: Personal care

Product line:

There are a wide range of personal care products:

- Deodorant: deodorant aerosol body spray, deodorant stick, deodorant roll-on,

antiperspirant aerosol spray (Axe Dry), antiperspirant stick (Axe Dry)

Among these products, the most popular product is deodorant body spray Significance of AXE Deodorant Body Spray For Men is the combination of perfume and deodorant that brings masculine seductive fragrance The fragrance of Axe deodorant body spray is variety, but six fragrances below are popular:

Axe Vice

Axe Provoke

Axe Dark Temptation

Axe Click

Axe Twist

Axe Apollo

Product feature

Axe is known as the best-selling men's fragrance brand in the world Axe is ranked as creativity and modernity brand Axe products have affordable price, high quality, and

attractive design These products are priority for men, especially for young males from

15-35 years old Axe keep focusing on innovation to produce new fragrance, so products have diversity of fragrance

Axe Vice: a blend of coconut, marshmallow, hazelnut and caramel.

Axe Dark Temptation: chocolate fragrance.

Axe Provoke: fragrance of coconut, marshmallow, hazelnut woods, amber and vanilla.

Axe Apollo: scent of fruity and musky.

Axe Twist: a combination of sandalwood and cedar scent.

Axe Click: blend of cranberry, rhubarb, and green citrus scents

Product Style and Design

“AXE” is designed impressively and remarkably Labeling is a part of packaging with information of product on the bottle including price, manufacture date, volume, instruction for use, and ingredient

Brand Name: The Axe man effect!

Axe or Lynx is a men’s fragrance brand that owned by Anglo-Dutch company

Unilever The brand is named Axe in most of the world, except Australia, New Zealand, Ireland, and the United Kingdom called it Lynx, because of trademark conflicts Axe

launched their body sprays products in France in 1983 In 1985, the great success in French motivated the company to expand to the rest of Europe and Latin America In addition, they have moderate impacted in Africa and Asia In 2012, Axe launched to Vietnamese market

Brand Positioning: “The Axe Effect”