Case Study 1 Old Spice PDF

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Case study: Old spice repeating success in the face of competitive threat...

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Nunez 1 Jeremy Nunez Professor Basch BUS 427_01 14 February 2018 Case Study Summary: Old Spice The case study of, “Old Spice: repeating success in the face of competitive threat” discuss various topics for which the brand Old Spice, a male grooming product, had to create multiple positioning strategies in order to combat the threat of their competition. Through effective brand positioning, and segmentation within the brand, Old Spice had to create an advertising strategy that would surpass their successful year for which they won numerous awards for their reposition of the scent ‘Glacial Falls’ as ‘Swagger’. Through a creative campaign not only did the scent move from being the worst performing scent to one the top three in their portfolio, they were able to position themselves as a brand that gave consumers confidence. As a result of their efforts, Old Spice managed to create a “halo effect” to its brand. The halo effect in advertising is the development of a product that was not advertised, but achieves success due to an association with an advertised product. When used properly, businesses would be able to save money because rather than paying to advertise every segment within the brand, creating one advertisement that generates a high level of trust for the brand allows consumers to try other products. What made Old Spice different from any other brand under the Proctor & Gamble umbrella was that the brand made great strides with less conventional advertising motifs and used advertising agency’s like Winden + Kennedy, to further advertise their brand.

Nunez 2 Placing them in a position to promote their products better and reach more of their target audience, Old Spice had to plan for the fiscal year 2009-2010 to avoid plateauing. Expectations were high for the Old Spice team, so when it came to planning for their next big campaign there options were as followed: 1. Continue to promote ‘Swagger’: Taking the risky move of putting all their eggs in one basket Old spice ‘Swagger’ had become a success, boosting sales up to 175 percent and volume to 270 percent. Old Spice had to decide whether or not to extend the campaign for Swagger that could potentially launch a new flagship scent or switch its strategy since the campaign had reached its peak. When evaluating the pro’s and con’s of this decision Old spice would have the advantage of seeing sales because of Swagger’s Halo effect, but will lose out on the opportunity to see more if they don’t update their strategic position to fend off competition. 2. Stay with the umbrella brand: Rather than focusing on a specific scent the overall brand name would be focus entirely on Old Spice. They speculated it would attract consumers to other scents under Old spice, increasing brand identity. However, staying under the umbrella makes them vulnerable if they don’t reinvent their message to appeal for a larger target market. 3. Rebrand or promote another scent: Promoting another scent from their Red Zone portfolio, Old Spice could potentially revamp sales to the same level of degree that Swagger had. The team had identified ‘Showtime,’ a member of the Red Zone portfolio to be rebranded because it had been the weakest- performing sent, accounting for only 8 percent of total sales in the portfolio. With a name like ShowTime, Old Spice believed that it had the same opportunity as swagger to be become great. When evaluating the pros

Nunez 3 and cons of this decision Old spice would have the advantage of using the name Showtime to untapped another psychological need for consumers. The disadvantage that comes with this decision is that they would need to target a different demographic, which would could incur more cost for the brand 4. Focus on another segment: Old Spice also decided to focus on body wash since the market for body wash had grown significantly from 2003-2009, passing bar soap as the preferred means of personal cleansing. They would potentially see sales if they catered to both men and women body washes, but would have to consider the trade off of spending advertising resources to only 20 percent of old spice sales that represented body wash. Unfortunately, due to Dove’s Super Bowl commercial advertising a men’s body-line Old Spice would have to consider alternatives if they wanted to stay a presence in the market. Ultimately, Old Spice had decided on option 1 and continued to advertise ‘Swagger’ with a new tagline, “Swaggerize your Wallet.” Choosing the appropriate social media outlet to advertise the brand the campaign had grown sales by an approximate 55 percent above traditional media effort. If put in the position I would have been more found of choosing option 3 and promote ShowTime in smaller events that would still attract more than average target audience. On a more aggressive scales I would have also taken the long shot of advertising in the Super Bowl if my ad was ‘Super Bowl-worthy.” Being that Old Spice is P&G’s rebellious child only accounting about 1 percent of an $85 billion portfolio, repeating success could be as little as revisiting old moves to revitalizing new ones....