BRAND EXTENSIONSSrikanth

PGP30231, Sec A

srikanth.muraleedharan@

gmail.com

7054620157

THE CATEGORY

THE BRAND

THE EXTENSION STP

THE 4P’s

THE MANUFACTURER - HULLargest FMCG maker in India

Unilever owns 51.5% controlling stake

INR 2000 Cr + Brands: 6INR 1000 Cr + Brands: 6INR 0500 Cr + Brands: 5

QUICK FACTSAnnual Sales: INR 30171 Cr 33% in 4 years

EBIT margin: 16.3% 350pts from 2011

Promo Spends: INR 3875 Cr 40% in 16 Qrtrs

Personal Care • Skin Care• Skin

Cleansing• Hair Care• Oral care

Foods• Spreads• Savories

MARKET PRESENCEHome Care • Laundry• Household • Water

Refreshments• Beverages• Ice-cream

THE CATEGORY THE BRAND THE EXTENSION THE 4P’s STP

MECHANICS OF THE DEO CATEGORYStable Category growth by

value

• 2012: 35%

• 2013: 28%

Men Women

Value share

• Higher % of working class men

• Use of men’s deodorants by women due to its strong smell

New Trends in Promotional

Strategy

No-gas Long lasting

Fragrance varietiesAntiperspirantSkin-whitening 

Sensuality

Brand Equity mostly built through TV ads

Market

Distribution

• Urban: 87%

• Rural: 13%

3.4% of entire Personal

Care

Total Sales of $19.5 million

Related: Grooming, Hair

CareTHE CATEGORY THE BRAND THE EXTENSION THE 4P’s STP

THE PARENT BRAND - AXE

2011 2012 2013 2014

46 45 36 28

Axe Competitors

185

249

319

394

Indian Deodorants Market

The Competition – Market Share

Million USD

2011 2012 2013 2014

THE CATEGORY THE BRAND THE EXTENSION

Introduced in 1999, leader till 2011

Declining sales and share in a growing category

BRAND MANTRAhelp men look, smell, and feel their best

THE 4P’s STP

THE EXTENSION

CURRENT MARKETS

NEW MARKETS

CURRENT PRODUCTS

NEW PRODUCTS

Penetrate Product Dev

Market Dev Diversify

Category: shower gel, aftershave

THE CATEGORY THE BRAND THE EXTENSION

Line: Axe Signature collection

Target the same customer segment• Leverage brand awareness• Enhance brand image

THE 4P’s STP

THE CATEGORY THE BRAND THE EXTENSION

THE LINE EXTENSION – AXE SIGNATURETAGLINEDon't Fade Away

USP3x more perfume

Long lasting fragrance PoD

No-gas perfume PoP

Seduction - parent brand theme

Low priced

MARKET30% of overall Deodorant market

Top 4 players now offer “no-gas”

TARGET GROUP18 – 25 year old males

Altered proposition will induce trials from old loyalists

Capitalizing existing brand knowledge to convey the message

THE 4P’s STP

THE CATEGORY THE BRAND THE EXTENSION

THE 4 P’s - PRODUCTFEATURESLong lasting fragrance

No gas, 100% fragrance - A first for the brand- Matching the category trend

VARIETYdefinitive collection featuring four variants- Suave- Mysterious- Intense- Rogue

Original Metallic design refined, moving away from distinctive “twisting” cap

Shift in design philosophy:- From being meant for young males, to

attract girls- To being used by more mature youth

to complement their personality

Creating new usage instances for consumers – small portable “Bullet” can

Extensive dermatological testing to prevent side-effects

THE 4P’s STP

THE CATEGORY THE BRAND THE EXTENSION

THE 4 P’s - PLACEFEATURESLeverages HUL’s extensive distribution network

Premium eye-level shelf space in Malls, Modern trade outlets

Distinctive in-store communication

Over the Counter strategy in medical stores and small retail outlets

Available through popular urban e-commerce retailers including BigBasket, Purplle, etc

THE 4P’s STP

THE 4 P’s - PRICE

LOW PRICE

HIGH PRICE

LOW QUALITY

HIGH QUALITY

Economy Penetration

Skimming Premium

₹ 225 for 122 ml can, for all variants

Premium pricing wrt rest of Axe range

Cheaper wrt expensive designer colognes

THE CATEGORY THE BRAND THE EXTENSION

Axe Signa-ture

Axe Fogg Ferrari Red Old Spice Park Avenue

225

180

225

180204

COMPETITIVE PRICING600

THE 4P’s STP

THE CATEGORY THE BRAND THE EXTENSION

THE 4 P’s - PROMOTIONCentral Brand theme – attracting women

Brand Extension shifts the theme - from “weapon of mass seduction”- To “complements his strong personality”

Combines the messaging of - Long Lasting Fragrance- 3x perfume- Central brand theme

Integrated Communication Strategy using traditional and digital media

Axe Signature TVC vs older Axe TVC

THE 4P’s STP

SEGMENTATION AND TARGETING

THE CATEGORY THE BRAND THE EXTENSION THE 4P’s STP

BEHAVIOURAL DEMOGRAPHIC GEOGRAPHIC PSYCHOGRAPHICOCCASSION: Regular

BENEFITS: Quality, Economic

USERSTATUS: Regular User

USAGERATE: Medium

AGE: 16 to 28 years

GENDER: Male

INCOME: Middle, Upper Middle

JOB: Students

MARITALSTATUS: Single

LOCALITY: Semi - Urban, Urban

LIFESTYLE: Outdoor - Oriented

PERSONALITY: Fashion - Oriented Trendy

Young Urban males, looking for a quality product at economic price-point

Extensive Brand awareness, compelling campaign styles

POPs and PODsCOMPETITIVE FRAME OF REFERENCE

THE CATEGORY THE BRAND THE EXTENSION THE 4P’s STP

- Perfumed Deodorant Spray- Good quality- Economic price- Fragrance Varieties

POINTS OF PARITYCategory PoP:- Wide Range of fragrances- Standard quantity for SKU (~120 ml)- Leak-free sturdy spray cap

Competitive PoP:- No gas, 100% perfume- More value for money- Single can lasts longer

Competitive PoP:- Relatively high price point

POINTS OF DIFFERENCECRUCIAL POINT OF DIFFERENCE:3x Longer Lasting Fragrance

Other PoDs:- Brand’s expertise as “Weapon of seduction”- Strong fragrance

THE CATEGORY THE BRAND THE EXTENSION THE 4P’s STP

PERCEPTUAL MAPSSTRONG SCENT

WEAK SCENT

FLASHY ADVERTISING

DULLADVERTISING

Product Feature vs Promotional Strategy

AXE

Old Spice

Gillette Garnier Dove

Nivea Rexona

Adidas

Impulse

Characteristics vs TG vs Pricing

Sporty

Wellness

Freshness

Feminine

Masculine

Fantasy

Men Unisex Women

Economy

Premium

PRICING

REFERENCESRies, A., & Trout, J. (2000). Positioning the battle for your mind (20th anniversary ed.). New York, N.W.: McGraw-Hill.

Keller, K. (1998). Strategic brand management: Building, measuring and managing brand equity. Upper Saddle River, N.J.: Prentice Hall.

Kotler, P. (2000). Marketing management (Millennium ed.). Upper Saddle River, N.J.: Prentice Hall.

Euromonitor International Reports:1. Deodorants in India, Category

Briefing2. HUL in Beauty and Personal Care

HUL Corporate:3. Annual Reports4. Investor Relations Document5. Brand Articles: Axe

ET article 1ET article 2

Customer review on Amazon.in, Snapdeal.in’

THANK YOU