Group report Case Libra-2 Young Australian of the Year 2021, Isobel Marshall, is credited for putting the issue of period poverty on the government agenda. PDF

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Young Australian of the Year 2021, Isobel Marshall, is credited for putting the issue of period poverty on the government agenda. The 22-year-old had made it her mission to provide sanitary products to girls living in poor conditions overseas, as well as partnering with local Australian organisation...

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MKTG10001 – Principles of Marketing Subject Coordinator: Daiane Scaraboto Group Report Case: Libra Introduction Young Australian of the Year 2021, Isobel Marshall, is credited for putting the issue of period poverty on the government agenda. The 22-year-old had made it her mission to provide sanitary products to girls living in poor conditions overseas, as well as partnering with local Australian organisations to provide free access to pads and tampons for girls living in crisis centres and remote Indigenous communities. However, state governments themselves had begun to realise how the lack of access to sanitary products could impact the mental wellbeing of girls as well as their schooling. As an outcome, the tampon tax in Australia was removed in 2019, which meant that sanitary products were finally recognised as an essential product. Nonetheless, a recent survey of over 4,000 teenagers highlighted how more than one-third of them missed at least one class in the past three months due to their menstrual symptoms. And over 60 per cent would find it hard to speak to a teacher about their periods. The issue is worse for girls living in remote Indigenous communities. Women and girls were sometimes using toilet paper, socks and rags instead of sanitary products, because of how expensive they were to buy, with a packet costing around $10. Some Australian states, as Victoria, have started to offer free sanitary products in public schools, which is a good starting measure. The state of Victoria partnered with Asaleo Care 1 – which produces the Libra brand of pads and tampons – to manufacture and distribute the products. Asaleo Care conducted research in 2019, revealing that 3 in 4 women in Australia believe there is still a stigma attached to periods with 80% of women admitting to hiding their period – at home, at work and at school. For young girls, their shame of menstruation is so bad that almost 70% per cent would rather fail a subject at class than have their peers know they are on their period, with almost 20% saying they would rather be bullied than have their peers know. Company background and marketing mix Libra is the only Australian brand of sanitary pads and tampons, being manufactured in Springvale, Melbourne, for over 30 years. Under Asaleo Care, the brand employs over 200 workers in Australia and New Zealand across all areas: Product Development, Manufacturing, Safety, Marketing, Sales, Customer Service, and Supply Chain. Libra offers pads, tampons and liners that are said to be designed by women, for women. Their target segments are women (19 to menopause) and girls (10-18) who menstruate 2. Libra pads 1

Hygiene and health company Essity has finalised its acquisition of the remaining shares in Asaleo Care, as of July 1st, 2021. Essity AustralAsia will be the name of the regional unit going forward. 2 Individuals other than women (e.g. trans men, intersex, genderqueer or nonbinary) may also menstruate, but they are not Libra’s target segment.

and liners come with and without wings, as well as pants, regular ‘invisible’ and ultra-thin options, for daytime, night-time and sport. Libra also offers the Cotton range, made with 100% organic cotton lining. Its tampons range includes Libra Girl, Body Fit and Slim, which offer regular and super absorbency. Libra also offers a monthly package subscription that allows consumers to pick from any three pre-packaged kits and get it delivered with free shipping. These products are priced between $2.69 (Libra liners dry 28) to $25 (monthly box under subscription), with prices varying depending on the product and promotional agreements with retailers. Libra is sold across major supermarket chains and chemists in Australia and New Zealand, as well as direct to consumers on its website. Libra has focused its IMC efforts on tackling the issue of period stigma. As Caitlin Patterson, Executive General Manager, Retail said: “Libra has challenged the taboo around periods for many decades, with our latest Blood Normal campaign addressing the issue head on.” The brand makes use of social and traditional media and offers an online community for girls (Libra Girl) on its website.

Current marketing challenges Considering the context of consumer concerns with sustainability and period poverty; the increased normalization of menstruation as a conversation topic; and the fragmentation of the period care market by the introduction of several alternatives to pads and tampons, Libra is facing multiple marketing challenges. Product Challenge Plastic pervades modern life, and menstruation is no exception. Since the middle of the 20th century, many tampons and menstrual pads have contained somewhere between a little and a lot of plastic in their basic design—sometimes for reasons that “improve” the design, but often for reasons less crucial. Getting a handle on how much plastic waste comes from menstrual products is tough, in part because it’s labeled as medical waste and does not need to be tracked, and in part because so little research has even looked at the scope of the problem. But rough estimates for the likely output are staggering: 5.4 million Australians buy tampons, pads or panty liners in an average month and over the course of a lifetime, a single menstruator will use somewhere between 5 and 15 thousand pads and tampons, the vast majority of which will wind up in landfills as plastic waste. There is increasing consciousness among Australian consumers of the environmental impact of their purchases. For period care, multiple products have been recently promoted as low-environmental impact alternatives to pads and tampons. These include reusable pads, reusable period underwear and menstrual cups. Australian owned Modibodi has been one of the most successful companies selling period underwear and is one important competitor to watch. Juju (juju.com.au) is one of the key competitors selling menstrual cups and has also started to sell period underwear. While Libra is currently introducing one model of reusable period underwear in its product line, this is taking the company outside its expertise in terms of product design and production. 1. Should Libra further adjust its product line to compete with alternatives to pads and tampons? If so, how?

Pricing Challenge Pricing competition is very aggressive in the category of pads and tampons. Brands such as StayFree, U by Kotex, Tampax, Carefree and Tena are often similarly priced to Libra’s pads and tampons, considering promotional prices across different retailers. In a recent study conducted with 743 Australian consumers, Canstar Blue rated Libra 5th noting: “Libra received four stars (out of maximum 5) in most research categories, including quality, absorbency and overall satisfaction. The only exception was value for money, where it got three stars”. Moreover, with alternatives to pads and tampons becoming more popular and easily accessible, consumers have questioned the added price of wearing disposable products. A single reusable silicone or latex menstrual cup can last up to a decade, making them much more cost-effective than tampons. (Compare a $49.95 Juju cup to a 10-year supply of pads and tampons costing $3,000). Reusable underwear has a higher starting cost for consumers ($197 for a starter pack at Modibodi), but many companies donate money or products to partner organizations in developing countries with each product purchased, a common business model in this industry. 2. What pricing strategy should Libra adopt to keep competitive in the fragmenting market?

Integrated Marketing Communications Challenge The Blood Normal campaign (https://www.youtube.com/watch?v=108gaP2rTas), shows women going about their everyday lives whilst on their period and includes shots of a woman showering with blood running down her leg, a pad demonstration using red liquid, and a woman removing a pad. was aired on premium time TV in Australia. In addition to the TV commercial, Libra has worked with a number of local agencies to bring the #bloodnormal message to audiences via paid, owned and earned media. To normalise the conversation about periods, for the first time in the Australian TV show Neighbours’ 34-year history, Libra has worked with the writers to integrate a period storyline into the show. Libra’s Instagram page features a Q&A with questions about periods while the website has a series of tools and articles about periods. To drive earned media, a #bloodnormal campaign Libra manifesto was launched that plays on Australia’s love of the word ‘bloody’, giving blood and periods an empowering, positive spin. The manifesto was brought to life with a series of influencer activations. However, Ad Standards, which handles complaints against the advertising industry, received more than 600 objections to the advert. Those complaints were since dismissed, and marketing experts note that people who complained were likely not the target audience. Nonetheless, other companies have experienced consumer backlash and other negative repercussions (e.g. boycotts, loss of loyal customers) when engaging in social activism. These consequences are important and can be damaging to the brand image and profits. 3. How can Libra continue to communicate as a company that understands and fights period stigma without alienating customers?

Distribution Challenge Libra products can be found on most major Australian retailers, online and offline. The brand also sells direct to consumers and offers a monthly package subscription that allows consumers to pick from any three pre-packaged kits and get it delivered with free shipping. When direct sales and subscriptions were introduced, by the end of 2019, Libra’s key retailer partners in Australia (Woolsworth, Coles, Chemist Warehouse) manifested their discontent. Melanie Kleipp 3, manager of the distribution company that connected Libra with retailers said: “Our extensive network of stores across all Australian states and territories ensures that Libra products are available to consumers at all times, with the convenience of simply adding another item to their grocery bag or online shopping cart. I don’t think women will go through the hassle of setting up a subscription or going to another website only to buy tampons”. Although Libra has set up this direct channel as another way to support girls and women in acquiring period care products without being exposed to stigma, the channel has not been massively adopted, and as such, it became costly to maintain. Moreover, the direct channel can negatively impact customer experience, as many deliveries have been delayed due to COVID-19 disruptions. 4. What adjustments should Libra make to its distribution channels to create more value for consumers, channel partners, and the brand? Sources: Ad Standards Community Panel (2019), “Case Report – Asaleo Care, Libra”. Available at: https://adstandards.com.au/sites/default/files/reports/0262-19.pdf Asaleo Care (2021). “Asaleo Care has become Essity”. News. Available at: https://www.asaleocare.com/news/Asaleo_Care_has_become_Essity/ Bell, J. (2017). “Talking about periods beyond gender: The language we use is important,” Gender Equality, Clue. Available at: https://helloclue.com/articles/cycle-a-z/talking-aboutperiods-beyond-gender Borunda, A. (2019). “How tampons and pads became so unsustainable,” National Geographic. Available at: https://www.nationalgeographic.com/environment/article/how-tampons-padsbecame-unsustainable-story-of-plastic Dillon, A. (2017). “Planet-Friendly Periods: New menstrual hygiene products give Earth a break,” Online Exclusives, Stanford Magazine. Available at: https://stanfordmag.org/contents/planet-friendly-periods Elmhirst. S. (2020). “Tampon wars: the battle to overthrow the Tampax empire,” The Long Read, The Guardian. Available at: https://www.theguardian.com/society/2020/feb/11/tamponwars-the-battle-to-overthrow-the-tampax-empire Green, R. (2019). “Libra Launches Global #Bloodnormal Campaign In Australia And New Zealand To Normalise Periods In Mainstream Culture Via AMV BDBO, London,” Campaign 3

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Brief. Available at: https://campaignbrief.com/libra-launches-global-bloodnormal-campaign-inaustralia-and-new-zealand-to-normalise-periods-in-mainstream-culture-via-amv-bbdo-london/ Hislop. M. (2019). “Libra’s new #bloodnormal campaign shows period blood on TV for the first time”, Women’s Agenda. Available at: https://womensagenda.com.au/latest/libras-newbloodnormal-campaign-shows-period-blood-on-tv-for-the-first-time/ Lloyd. M. (2019). “Depicting blood during Libra commercial does not breach ethics code, watchdog rules,” ABC News. Available at: https://www.abc.net.au/news/2019-09-18/asstandards-rule-on-period-blood-after-complaints-over-libra-ad/11521530 Lopez-Vito, T. (2021). “Tampons & Sanitary Pads,” Health and Beauty Reviews, Canstar Blue. Available at: https://www.canstarblue.com.au/health-beauty/tampons-sanitary-pads/ Shad, S. (2021). “Period poverty doesn't end once a girl finishes school,” Opinion, SBS. Available at: https://www.sbs.com.au/topics/voices/culture/article/2021/03/16/period-povertydoesnt-end-once-girl-finishes-school...