Mktg 445 Product Launch

Introducing Old Spice to Greece

Lauren Rossi, Emily Jaroszewski, Julie DiberardinisGROUP 9

Agenda

• Background• Current Situation in the U.S.• Product Launch• Legal Differences• Cultural Differences• SWOT Analysis• Target Customers• Competition• Marketing Mix (4 P’s)

Background

• Introduced in 1938 • Marketed as the brand for authentic and masculine

men• Purchased by Procter and Gamble in 1990– Began producing deodorant sticks and body washes

• Expanded to U.K., Australia, South America• Main Advertising Strategies– Theme of masculinity– Humorous advertisements targeted towards men– “Smell like a man, man”

Current Situation in the U.S.• New Advertising Campaign in 2002 – 1997 sales-$98 million– 2002 sales-$143 million

• Sales of Old Spice increased by 107% in 2010– New viral marketing campaigns• Facebook, Twitter, Youtube• “Mr. Spice”

– Isaiah Mustafa – http://www.youtube.com/watch?v=owGykVbfgUE

• Some advertisements targeted towards women– "The man your man could smell like"

• Cultural attitudes towards personal hygiene in the U.S.

Introduction of Old Spice into Greece

• Civilians greatly value their history and ancestors – Spartans

• Good fit with brand image – Masculinity

• Nautical Themed Trademark– Geography

• Males make up 67% of the population

Legal Differences

• No significant non-tariff trade barriers• $2.4 billion worth of U.S. exports in 2008– Strong trade relations

• No tariff barriers for members of the European Union, but has a common customs tariff for non-members

Cultural Differences

• Language (99% of the population speak Greek)

• Strong cultural heritage– Male-dominated society– Man as the main decision maker

• Resistance towards change– Finally adopted Euro in 2002

SWOT AnalysisStrengths

Experience working with social media channels (Facebook, Youtube)

Experience working globally Low priced products for price-sensitive

consumers Nautical themed trademark appealing to

Greek Heritage

Weaknesses Language barrier (labeling) Low brand awareness

Opportunities Large male population Tourist population Strong American presence (brand

awareness) Consumer spending has increased-

economic growth No significant non-tariff trade barriers for

U.S. exports-good trade relations Geographic location-surrounded by

water; high global trade High literacy rate

Threats Strong cultural heritage and resistance

towards change Common customs tariff for non-

European Union members Many established competitors already in

market (i.e. Unilever-strong market leader)

Fluctuation in exchange rates (economy)

Target Customers

• 15+ year-old men – Men who want to be viewed

as very masculine– Men who want to be

appealing to women• Those who fit with brand image• Males are the main decision

makers in Greece• Must appeal to their needs

Competition

• Unilever-owned brands (35%)– Axe – Dove Men Care– Rexona

• Procter and Gamble (24%)-Parent Company– Noxzema

• Beiersdorf Hellas SA (14%)• Thierry Mugler=23,60 Euros ($32.89)

Product • Global Brand – Tourism accounts for 79% of GDP– Bilingual (English as a second language)

• Low-end product• Basic features– Low price

• Variety of scents • Labeling– Increasing sailboat logo – Change label names

Place• Cost-effective

– Low price• Limited amount of middlemen

– Merchant middlemen– Control– Local distributors and manufacturers– High traffic cities

• Transfer of goods is highly accessible • Shipping• Steady demand

• Labeling/packaging– Economies of scale

• Procter and Gamble• Discount/Convenience Stores• Internet

Price

• Low price– Greeks are very price sensitive

• Market Pricing Policy• Penetration Pricing Policy• High acceptance rate• Fast rate of diffusion

• Must keep production costs low to reduce effects of price escalation• Basic Features

• Limit amount of middlemen• Price between 4-6.75 Euros.

Promotion

• Integrated marketing communications strategy

• Advertising campaign– television and print media

• Sales promotions• Convey idea of masculinity within the brand– Appeal to “warrior” aspect of Greek history – psychological attributes

Questions?