Who are the current customers/users? Include information related to demographics, psychographics and buying behavior, price sensitivity, customer satisfaction and loyalty.
According to Mitchell & Lodhia (2017), drug and departmental stores, supermarket chains, Pop & Moms store, hotel chains, and distributors are the current customers Old Spice, which in retail segment mainly targets men within the age group of 12-34 years living primarily in urban and suburban areas, who shop for personal grooming, having active lifestyle and are outgoing and confident. For enhancing and enriching their customer experience the brand works in collaboration with their customers. The brand targets its customers based on the demographics factors like age, income (low income, middle income, and high income), life cycle (single, married, divorced), and occupations (young professionals, high school and college students) besides focusing on psychographics factors like lifestyle (sociable, unsociable, outdoor-oriented) and personality (extrovert, fashion-oriented, trendy). Females in a relationship are also targeted since they influence the purchase decisions of men. Buying behavior of Old Spice customers are influenced by cultural factors affecting their basic needs. Appearance or body care is valued by young men across most cultures. The young American males according to Bano & Mohd Sharif (2016), prefer being stylish, smell good and prove their manliness, a reason behind choosing Old Spice. Moreover, their buying behaviors are also influenced by social factors like groups and social networks, families, roles and status; personal factors like age, occupation and lifestyle (young males preferring going to bars and parties and gaining popularity), economic situation (external factors are not always the concern for customers with low-income, majority of young males with medium and high income can afford Old Spice), personality (outgoing and socially confident, enthusiastic and fashionable males). All products of Old Spice are easily available in local stores at different quantities priced reasonably for targeting both high and low income customers. Retailing stores being the main customers provides wide exposure to the brand hence, customers are not sensitive towards the pricing. Old Spice has an extremely loyal customer base and a high customer satisfaction level as a long standing brand.
What do the customers buy/use?
Body Sprays of Old Spice remains key to the brand, helping it in remaining one of the mass markets male grooming sprays best sellers worldwide followed by fragrances and styling products, antiperspirant & deodorants.
What changes can the company/brand expect in the future? How can the company/brand better serve its customers?
Presently, the image created by the Old Spice is in sync with current trends of how men grooming is perceived globally. Its shaving cream product has recorded an increase in annual growth of only 2% in past five years while men’s skin care in the same period has seen an increase of 5%. With increasing trend of purchasing a wider array of grooming products by men, the current demand of its products is high. The image of Old Spice has changed since it first came to shelves, having long had been associated with elderly gentlemen. According to Stone, et al., (2017), it’s Old Spice and Widen + Kennedy’s Old Spice Swagger campaign transformed completely the brand’s face and customers to compete with competitors like Axe shifting their target to young men between the ages of 18-34. They rebranded and re-launched “Glacial Falls” with a new, awesome name and attitude – Swagger as “The Scent That Makes a Difference,” featured in traditional print, television, YouTube and through online campaigning SwaggeriszeMe.com was a huge success further doubling the sales. With beards coming back into fashion, the average number of times men shave a week has fallen from 3.7 to 3.2 in developed markets, totaling two fewer shaves a month. According to Chopra (2016), despite the slowdown being minor, in past three years the sales in US has witnessed a decline, which means in future Old Spice can expect bad news for its shaving creams and after shave products. Old Spice can better serve customers by starting its online club to encourage customers sharing their expectations and feedbacks, reducing at least 20% prices of less selling products and launching wider marketing campaign to win back customers.
Opportunities:
According to Jha & Banerjee (2013), the opportunities are
Threats:
This Section Discusses what the brand is currently.
Identify strengths and weaknesses of the company/brand as it exists today, providing at least 3 strengths and 3 weaknesses. What does the company/brand do well and not so well at this very moment?
List 3 Strengths (Make sure you label why you call each item Strength):
According to Nambiar (2012), the strengths are
List 3 Weaknesses:
This Section deals with what the company/brand needs to become.
How can the company/brand improve its weaknesses and maintain or grow its strengths? Suggest how the company/brand can improve upon the things it does well and not so well.
According to Melika (2017), Old Spice can improve its weakness by expanding its market segment by targeting the older male customers, product differentiation, overcoming the threat of substitutes by improving products quality, performance and affordable pricings while it can maintain the strengths through consistency, competiveness, uniqueness and gaining audience knowledge. Old Spice can improve its distribution channel by keeping a track on channel dealers, and focusing on local markets and geographic segmentation while it can control over the competitors by knowing well its customers and competition, expanding the offerings and targeting new markets.
Define the current business environment. Include information about political, legal, economic technological and societal factors that may influence sales.
According to Iglesias, Ind & Alfaro (2013),
Political Environment: Old Spice is abided by rules and regulations of governments like import, export and exchange favorable policies may influence the sales.
Legal: its failures in obliging with markets rules and regulations like tax policies, antitrust enforcement, and environmental protection laws etc. may influence the sales.
Economic: grabbing the opportunities of entering into developing markets may generate more revenues and profits thus, influencing the sales.
Technological: incorporating technological factors in production, distribution and customer engagement will increase its productivity and effectiveness and may influence sales.
Societal/Socio cultural: products incorporated with attributes improving customers’ social life besides giving them confidence and beauty has increased the perception towards personal grooming in men and hence, may influence sales.
Define the business partnerships. Does the company/brand have any current partnerships? What other company/brand may be a good partner for them?
According to Cho, et al., (2018), Current Partnerships:
The brand has currently partnered with Freestyle session 2018 for bringing deodorant at all future events. Both spectators and fellow competitors had long waited for this partnership. The event in collaboration with Old Spice hosted ‘Who’s Got the Funk’ on November 11th at the Freestyle Session world finals, competition of bboy/bgirl with Nastiest and ‘Most Foul Flavor, giving the winners cash prize of $500 and Old Spice deodorant supply for a year.
Proposed Partnerships:
For implementing its product expansion strategy to target female customers, Old Spice can partnership with Veet for selling its hair removal creams, perfumes, deodorants and waxes worldwide.
Who are the main competitors? Label and discuss the top three competitors and why you consider them a competitor.
Competitor 1: Axe is considered as competitor because of similar market segmentation, target markets for product like deodorants in the US market
Competitor 2: Gillette is considered Old Spice’s competitor in shaving creams with similar pricing, supply and distribution, and targeting similar demographic and physiographic
Competitor 3: Right Guard is considered competitor for Old Spice in deodorant and shower gel with similar target customers in age group of 18-34, partnerships, product promotions and marketing. Rezaei, Ortt, & Trott (2018)
Based upon the analysis you just completed in this worksheet, what are three (3) key recommendations that you could pass along to Management regarding the future direction of the company you selected? Discuss why you have created these strategies and why you think they should be undertaken and work for the business.
Product expansion strategy for targeting female customers will help Old Spice to grow its business and generate more revenues. This strategy will work as female customers are more aware and conscious about their personal hygiene and grooming.
Spreading awareness about men hygiene strategy in collaboration popular men’s magazine like Men’s Health with will help Old Spice increase its sales. It will work because it will enhance brand awareness.
Introducing Skin care products (face wash, moisturizers, sun blocker cream) for men will also increase sales and this strategy will work since more urban men are today conscious about their skin and looks.
References
Bano, S., & Mohd Sharif, M. A. (2016). Metrosexual: Emerging and lucrative segment for marketers. International Review of Management and Marketing, 6(4) doi: https://search.proquest.com/docview/1796230209?accountid=30552 [ Accessed on 21 November, 2018]
Cho, M., Bonn, M. A., Su, J. H., & Kang, S. (2018). Partnership strength and diversity with suppliers. International Journal of Contemporary Hospitality Management, 30(3), 1526- 1544. doi: https://dx.doi.org/10.1108/IJCHM-01-2017-0016 [ Accessed on 21 Novmber, 2018]
Chopra, S. (2016). How omni-channel can be the future of retailing. Decision, 43(2), 135-144. doi: https://dx.doi.org/10.1007/s40622-015-0118-9 [ Accessed on 21 November, 2018]
Iglesias, O., Ind, N., & Alfaro, M. (2013). The organic view of the brand: A brand value co- creation model. Journal of Brand Management, 20(8), 670-688. doi: https://dx.doi.org/10.1057/bm.2013.8 [ Accessed on 21 Novmber, 2018]
Jha, G., & Banerjee, J. (2013). Opportunities and challenges for FMCG companies in india. Anusandhanika, 5(1), 35-43. doi: https://search.proquest.com/docview/1650906828?accountid=30552 [ Accessed on 21 November, 2018]
Melika, S. S. (2017). Study the role of electronic marketing on business performance with emphasis on the role of market orientation. International Review of Management and Marketing, 7(3) doi: https://search.proquest.com/docview/1984682929?accountid=30552 [ Accessed on 21 Novmber, 2018]
Mitchell, V. W., & Lodhia, A. (2017). Understanding the metrosexual and spornosexual as a segment for retailers. International Journal of Retail & Distribution Management, 45(4), 349-365. doi: https://dx.doi.org/10.1108/IJRDM-05-2016-0080 [ Accessed on 21 November, 2018]
Nambiar, B. K. (2012). Applied case studies in marketing. SCMS Journal of Indian Management, 9(2), 117-119. doi: https://search.proquest.com/docview/1536045159?accountid=30552 [ Accessed on 21 November, 2018]
Rezaei, J., Ortt, R., & Trott, P. (2018). Supply chain drivers, partnerships and performance of high-tech SMEs. International Journal of Productivity and Performance Management, 67(4), 629-653. doi: https://dx.doi.org/10.1108/IJPPM-01-2017-0017 [ Accessed on 21 Novmber, 2018]
Stone, M., Aravopoulou, E., Gerardi, G., Todeva, E., Weinzierl, L., Laughlin, P., & Stott, R. (2017). How platforms are transforming customer information management. The Bottom Line, 30(3), 216-235. doi: https://search.proquest.com/docview/1963075316?accountid=30552 [ Accessed on 21 November, 2018]
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