Ego to Axe Strategy Assignment

Topics: Brand management, Advertising, Brand Pages: 15 (3960 words) Published: May 11, 2013
1.Executive Summary
Ego was launched in South Africa(SA) in 1974 and positioned as the young man’s partner in the seduction game, Ego decided to introduce the element of fragrance to help enhance good smelling odour instead of controlling body odour. Unilever decided to globally synergise and prepared to launch a revitalised Ego now called Axe into SA’s mature market. The product offers a competitively unique combination of existing product features with a bigger can size and new name at a value added price. We are targeting specific segments in the consumer market (16 to 25years of age), however there is plans to develop a product to attract some more of the older market(young at heart) ,taking advantage of new opportunities offered by a global market. The primary objective is to achieve 2% gains in volume share after migration from Ego to Axe and 93% distribution to major retailers in 4 weeks. Our annual objective is to maintain ±9% volume share growth. The long term goal is to extend the brand inot other markets through product development and to take over a competitive brand e.g. Sarah Lee, this can help us get a foot into other markets we are not currently market leaders in.

Table Of Contents|
Number| Topic| Page|
1| Executive Summary| 1|
2| Situational Analysis| 2|
3| SWOT Analysis| 4|
4| Key Issues and Critical Success Factors| 6|
5| Marketing Goals and Objectives| 8|
6| Strategies| 8|
7| Action Plans| 12|
8| Budget| 14|
9| Controls| 15|

2.Situational Analysis
Macro Environmental, Market and Customer Environment
Economic Situation-
* Axe’s target market in SA is the age group 16 to 25 who are educated , in SA most of the money power rests with the white race which makes up most of Axe’s target market however they do offer a multicultural brand that has potential for the growth of the SA market * There are huge opportunities in SA as they are fast growing economically and are the way into further African markets, after progressing through there recent recession they are proving everyday they are a worthy market of investing in. Technology-

* South Africa are introducing newer technology into the market to make production cheaper e.g. The world class Durban based manufacturing plant.

* Advertising keeps having to adapt to new technology as South Africa is evolving in digital media making marketing cheaper and direct to consumers e.g. advertising on Facebook and BBM( Blackberry Messenger) this fits perfectly into Axe s core target market as they are the main users of this technology. Social/Cultural Situation-

* There is an emerging black middle class(Black Diamonds) in SA and a move towards greater Urbanisation, this will increase the populations disposable income and create a greater demand for goods .Axe need to keep marketing product so young people view it as a need and always purchase there good allowing for a good Customer Life Time Value.

* Currently there is a lot of influence on the younger generation to be trendy and fit in (be socially acceptable). Axe users are trendy and leaders amongst their peers with a fragrance and brand that is respected and a market leader Legal Situation-

* Products have to meet quality standards in Sa which can be costly

* Laws that affect pollution can make the price of a product go up due to taxes the company has to pay, so manufacturing needs to limit ozone pollution

* Laws have been passed in SA to provide education for the previously disadvantaged allowing them to become educated and leaders amongst peers, they also become respected and trend setters amongst peers and a segment of the market Axe are tapping into increase market capitalisation. Competitors-

* DIRECT (fragrance)- Yardley, Lentheric, Revlon, Playboy,Status * INDIRECT (efficacy)- Sheild, Mitchum, Shower To Shower ,Speed Stick

* overall market 14 to 50 years of age
* Core...

Bibliography: * Applied Strategic Marketing 3rd edition, by C J Jooste, J W Strydom, A Berndt, PJ Du Plessis
* Harvard Referencing from External Readings
* Wind, Y J. (1990) Positioning analysis and strategy, in G.Day et al. (Eds) The Interface of Marketing and Strategy (Greenwich, Connecticut: JAI Press)
* Sampson, J 2003. Major trends in brands and branding. In the Encyclopaedia of Brands and Branding, Johannesburg: Affinity Advertising and Publishing.
* Keller, K.L. 2003. Building consumer- based equity. In the Encyclopaedia of Brands and Branding, Johannesburg: Affinity Advertising and Publishing.
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