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Axe Deodorant

This document provides an overview and marketing plan for AXE deodorant by Unilever Bangladesh. It acknowledges the report authors and provides an executive summary on AXE's market presence and primary research findings. The marketing plan sections cover the product, market segmentation targeting males aged 16-25, distribution strategy across multiple channels, and competitive advantages through the parent company Unilever's scale and brand building activities. The competitive analysis finds AXE holds an 11% market share in the global body spray industry.

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Mehadi
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0% found this document useful (0 votes)
1K views19 pages

Axe Deodorant

This document provides an overview and marketing plan for AXE deodorant by Unilever Bangladesh. It acknowledges the report authors and provides an executive summary on AXE's market presence and primary research findings. The marketing plan sections cover the product, market segmentation targeting males aged 16-25, distribution strategy across multiple channels, and competitive advantages through the parent company Unilever's scale and brand building activities. The competitive analysis finds AXE holds an 11% market share in the global body spray industry.

Uploaded by

Mehadi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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AXE DEODORANT

UNILEVER BANGLADESH
Course Tittle
Marketing Management
Course Code
MKT 301

Submitted To
Barnali Nandi
Lecture
Faculty of Business Administration
University of Asia Pacific

Submitted By:
Name ID

Mehadi Hasan 16102057


A K M Samsur Rahman 16102083

Jahidul Islam 16102052


Acknowledgement

We are very thankful to Almighty Allah who helped us in


preparing this report. This is to inform you that we have
completed our report on the topic of “AXE DEODORANTS”.
The purpose of this report is to prepare the marketing plan on our
cool products. We have thereby provided a detailed information
of marketing plan. With much effort and diligence, we made this
report. We wish that you will find this report complete in content
and framework. We are very grateful to you for teaching us the
important aspects of Marketing, for helping us whenever we
needed your guidance and believing in us to complete this report
in the best possible manner by fulfilling our capabilities
Executive Summary
AXE is a global brand from Unilever in the deodorant and the personal care sector. It is one of the
most recognizable brands in the Indian markets and enjoys very high TOMA (Top of Mind
Awareness) status even in the people who do not use products of the personal care category. It is
owned by the British-Dutch company Unilever, which controls 52% majority stake in Unilever.
Its products include foods, beverages, cleaning agents and personal care products. Unilever’s
distribution covers over 2 million retail outlets across India. The report is on AXE deodorant for
men. AXE, the deodorant that is considered cool, fashionable and stylish by the young man is the
world leader in male territory. AXE has become the leading male Analysis of Primary Research
AXE has a nation-wide presence and it has a strong distribution network. Due to this it has become
easier for Unilever to spread awareness about new AXE products. AXE body sprays and other
products lead the men’s grooming industry. 35 of our respondents favored AXE over other brands.
The marketers want the people to believe in the AXE effect. Those who believe on AXE, they do
so because of its personal, the strong and the outdoorsy feel. AXE is not only targeted at a younger
crowd between 20 and 40 years, but also at people who are above 40 years. AXE enjoys the
marketing majority due its marketing and positioning strategy.
1. Introduction
Axe (known as Lynx in the United Kingdom, Republic of Ireland, Australia, New Zealand, and
People's Republic of China) is a brand of male grooming products, owned by the Anglo-Dutch
company Unilever and marketed towards the young male demographic.
Product type: Men's grooming products
Owner: Unilever
Country: France
Introduced: June 6, 1983; 34 years ago
Markets: Worldwide
Axe has been introducing new scents named according to different geographical areas and gained
massive popularity in the deodorants market, successfully targeting the young men segment aged
15-25 years. Axe plans to launch a unique and new range of products in its "organic deodorants
category".

2. Mission
Product Mission: To come up with fragrances that help men smell and feel their best
Social Mission: To operate the company in a way that actively recognizes the central role that
business plays in society by initiating innovative ways to improve the quality of life locally,
nationally and internationally
Economic Mission: To operate the company on a sustainable financial basis of profitable
growth. Increasing value for our stakeholders and expanding opportunities for development and
career growth for our employees.
3. MARKETING ORGANIZATION

Axc Deodorant Chif


Marketing oficier Abdullah
Shahid

AM
SM PM
Raj Shivani
Saandeep Kumar Siraj Anwer

Rigonal Sales Advertesing Analyst PA


Abdul Samad LAL kisam HAMDAN

Rigonal Sales
Rehaman GUL
4. Product
Our product
 Botanical Essence:

It has been made from 98 per cent natural ingredients: Italian bergamot, high-altitude
French lavender, Damask rose from Turkey and Indonesian patchouli. The aroma does not
fade throughout the day and is warm and spicy with woody notes
 Tea green (women):

This organic perfume supposedly has a different effect – sensual, calming, enhancing
confidence –made to enhance alertness and vitality, and does exactly what it says. It
contains 100 per cent natural essential oils with refreshing notes of lemon and cedar that
give you a burst of energy. It comes in a roll-on bottle which is especially handy for when
you’re travelling.

 Ambre Essentie:

This amber potion is earthy and oriental, made from mandarin, bergamot, vanilla,
Australian sandalwood and 300 roses. Another key ingredient is labdanum (a sticky resin
from the Cistus ladanifer flower) that is responsible for its warm, yellow-brown colour. It
uses organic corn alcohol and organic rose flower water which are both gentle on the skin
and do not cause irritation. It has a warm, earthy fragrance that is suitable for winter with
a citrus kick.
 Melvita Roses (women)

Made from ingredients that are organically and responsibly sourced, this perfume meets the criteria
of Ecocert. The lovely floral scent, which is light, feminine and subtle, will get you in the mood for
spring. This eau de toilette has been made from combining three wild roses: Rosa Canica from
Drôme, Rose Gallica from Vercors and Rose Mosqueta from Chile. 99 per cent of its ingredients
are natural and 80 per cent are organic

5. Product Line Extension

Line extension brand strategy would include addressing the marketing objectives of
targeting younger males by promoting current brands to the new potential market by
adjusting the product strategy to appeal to current affairs that interest this section of the
target market, still, however, preserving brand names. Line extension strategy is highly
effective in targeting niche sub-culture markets by extending the Axe brand to appeal to
their unique interests. Line extensions represent existing brand names extended to new
forms, sizes and flavors of an existing product category.

6. Market Segmentation

Demographic
Age group 16-25 years

Gender Male (Female)

Income group Middle and upper middle


7. Competitive advantage in the Marketing strategy of Axe
A leader in FMCG market: Being present in diversified consumer good product categories with
more than 35 brands, Unilever is leading the FMCG businesses in many markets especially
developing nations resulting in high visibility and awareness of the brand AXE.

Optimized Distribution cost: As compared to its competitors in the market, AXE has edge over
the competition as the per unit distribution cost is being optimized with the due to economies of
scale on a distribution of other brand products along AXE.

Parent company: Unilever is a well-known conglomerate in the FMCG market known for its
extensive reach in more than 100 markets globally it serves into. With such wide presence in the
broad product categories and with large SKU’s (Stock keeping units) is helping the company in
understanding the demand pattern and occupying large shelf space in the stores.
7.1 BCG Matrix in the Marketing strategy
The Parent company Unilever have a presence in 4 products under the brand AXE which consist
of Deodorant & Antiperspirant, Hair Care, Fragrance, and Bodywash.

The product line such as Deodorant & Antiperspirant and Fragrance are Stars in the BCG matrix
due to its acceptability in the majority of the markets while the product segments Haircare &
Bodywash are question-mark in the BCG matrix.

7.2 Distribution strategy


A multi-channel strategy is used by the company to make the AXE brand of products available to
the customers. It distributes the products through different mediums such as distributors, retailers,
resellers, pops & mom stores, and e-commerce sites.

For more than 34 years the brand has helped the customers looking confident in more than 90
countries across the globe. It is known as Lynx in countries such as UK, Ireland, Australia, and
China.
7.3 Brand equity in the Marketing strategy
Through sponsoring various fashion shows, events the brand has increased its visibility in the
market and awareness about the hygiene factor, crave of a man to look confident and smell good.

Engaging with the communities through different mediums like social and digital platforms has
helped the company in becoming most favored Body Spray Brand in most of the market it operates
into.

8. Competitive analysis:
The total body spray market is of more than 5000 Crs in which Men segment covers 70% of the
market share. The Axe deo and fragrances are the front-runner in the majority of the markets with
11% market share in the industry.

It competes with brands such as FOGG, Park Avenue, Wild Stone, Adidas, Nike and many others
in one or more markets.
8.1 Market analysis:
Body Spray and the Deodorant market is flourishing with consumer giving more importance to
hygiene factor, a rise in a middle-income segment, migration of population from rural regions to
metropolitan cities, awareness among the consumers for look good factor.

The market is driven by the advertising campaigns that companies in this business run to lure the
customers which implies that companies are heavily relying on the risk of failure in
communicating the messages and indirect benefits of the products to the customers.

8.2 Customer analysis:


AXE is being targeted to the Men who are in the age group of 15-40 years and are in constant
search of their inner self. The brand position itself as an offering which can help the customer in
smell good, feel good and be confident in itself.

Majority of customers of AXE are middle and upper-middle income class customers.
9. Marketing Mix of AXE
Axe comes from the colorful house of Unilever. The home care brand Unilever caters to almost
half of the world’s population; over the time brand has developed a sense of trust among people
and tends to serve them with the best, every time.
Axe is one of the most popular products; it not only spoils people with hundreds of products to
choose from but also serves an experience like never before. There are millions of deodorants in
the market but only the likes of Adidas, Park Avenue and Nivea are in competition with Axe

9.1 Product in the Marketing Mix of Axe


Axe intricately understands that preferences differ from person to person hence; they have started
creating products with a range. The Axe perfume and deodorants come in all shapes and sizes. The
varied fragrances cater to the taste of people of all types. While kids are happy with the chocolate
flavor, oldies are swaying it with Musk flavor.

Here’s a list of the most popular Axe Sprays:

 Axe Essence
 Axe Chocolate
 Axe Phoenix
 Axe Africa
 Axe Hot Fever
 Axe kilo
 Axe Clix
 Axe Vice

Besides the above, Axe also provides the following products


 Axe Shower gels
 Axe Shampoos
 Axe Hair styles

9.2 Place in The Marketing Mix of Axe


Axe is sold in more than 200 countries and regions. The brand Axe is known with the name of Lynx in
United Kingdom, Ireland, Australia and New Zealand.
With such a huge audience base, the product innovation team at Axe has tried to create sprays that cater to
the needs of people from around the world. Axe Essence and Axe Musk are quite popular in Asian countries
while Axe Africa is a rage among people from hotter region.

Axe has a solid penetration in urban as well as rural regions across the world and it is because of these
penetration levels that Axe has become a solid brand overall.
9.3 Price in The Marketing Mix of Axe
What makes Axe so popular is not only the exquisite range of product but also the smartly done pricing.
Pricing has played an eminent role in making the brand popular among peers. A 150 ml spray is priced
somewhere between 3-5 USD bd 350-400 TK, which is quite affordable. The perfect range of product
allows people to present the best of them to the world that too without making a whole in the pocket.

Users from India and its sub-continent are addicted to this classic brand. A 150 ml spray battle can be
purchased against the payment of 200. The product is durable, which makes it cheaper. Axe surely has a
set of genius minds working on it. The exquisite range of product available for grab at such innocuous price
is a cheat deal for everyone.

Axe is also known to use Bundling pricing where in it promotes 1 + 1 axe bundles or 2 + 2 Axe deo bundles.
Along with this, the company also uses cooperative marketing and the product can be bundled with some
other product from within the house of Unilever.

9.4 Promotion in The Marketing Mix of Axe


Axe products have been successful in winning the world because of the impressive campaigns.
The enterprise has marketed the product quite smartly and ensured that everyone uses it at least
once.
Axe has established some serious stereotypes and monotony in the ad world and almost every
contemporary is following it. The sensuous ads where men who use Axe are shown as swaying
with gorgeous models are the Unique Selling Proportion of this product.
FIND YOUR MAGIC is the tagline that moves the brand in all corners of the world. THE AXE
EFFECT is just another tagline that has helped the brand acquire some huge market percentage.
The marketing geniuses have made this brand a success among people from all around the world.
Axe is many times criticized for its sexism and its objectifying women in ads. But overall, the
brand is mainly male targeted and the advertising has worked wonders for their brand equity.
Axe is here to stay and leverage people with access to more of classic sprays. The AXE EFFECT
has helped hundreds of boys and men portray their swag in the best possible way.
10.Product Review

 Our deodorants consist of special essence which is made from natural extracts to provide
unique fragrances.

 Our deodorants have a special ingredient which make the fragrance last up to twice as
much longer.

 Our products are against animal testing, and are prepared using environmentally friendly
practices.

 Our organic deodorant collection comes in different sizes including a small 100ml pack,
a 175ml pack and even travel packs.

 Our deodorants come in very unique and appealing bottle which will catch your eye on
the first sight.

11.Product Extension

Within underarm care the following are available:


 Deodorant aerosols body spray
 Deodorant stick
 Deodorant roll-on
 Antiperspirant aerosol spray (axe dry)
Brand has also extended into other areas such as:
 Shower gels
 Aftershaves
 Skin care
 Shampoo
 Hair styling
12.Marketing Research:
 Primary Data includes:

1.Sales Person

2.Dealers

3.Consumers

 Secondary Data includes:

1.Periodicals and Newspapers

2.Govt. Publications and Reports

3.Trade Associations

4.Published Surveys of Markets


Promotion Strategy
I. Brochures and social Networking:
We promoted our AXE deodorant from many brochures and social networking. We promoted our
brochures in big malls like, Dolmen Mall, Ocean Tower, Park Tower, etc. We also promoted it
through famous social sites like, Facebook, Twitter, Instagram, etc. and also received good review
from our valuable consumers.
II. Sing boards:
We promoted our AXE deodorant from many signboards. You can see our signboards on Karsaz
road, Shahr-e-Faisal road, etc
III. Sales Promotion:
We also offered 30-40% discounts for 1st week after opening our outlet in Lucky Mall Rashid
Minhas Rd, Karachi. We also offered 20-30% discounts on special events like, Music Festivals,
Universities etc.

12
AXE USP

Environmental and Socially-conscious Approach (against animal testing)

Premium Quality Organic colognes and perfumes.

Wide range of fragrances targeting both men and women.

SOLOGAN

“Feel the Fragrance feel the Nature”

Prime Objectives:
 First year objective: We are targeting to sell 100,000 or more units by creating a remarkable
impression on our consumers.

 Second year objective: Our 2nd year objective is to sell almost double the amount of our
units in 1st year objective and reach to break-even within 18 months.

Issues
 Our big issue is to generate an imposing brand name in front of our valuable
consumers by considering the strong competitors.
 We have invested heavy amounts of funds for (R & D) in our business to
survive.
Monthly Planning
 April: Launched our products on 17th April 2017 at the “Lucky one mall”,
Karachi and offered 20% discounts on all products for a whole week.
 June: Spend Rs, 150,000 for promoting our Deodorants.
 July: We also provide 20% extra in most of the varieties of Axe to provide
more to their customers.
 September: Sponsored many events in famous clubs in Karachi. Like, Karachi
Club and Golf club.
 December: create many zones and launch our deodorants in various areas in
Karachi. Sales Promotion Tools:
 Discount: To increase the sales of the company sometimes slashes down the
price of 150ml bottle does. Through online shopping also we can get Axe deos
with discounts.
 Offers: The Company also advertise through online games available on their
website.

13.SWOT ANALYSIS
Axe is a brand of Unilever, known as Lynx in the United Kingdom, is a deodorant targeting young
male demographic. Axe is a popular brand due to some of its very attention-grabbing youth-centric
advertisements. Axe has won over 10 awards at the prestigious Cannes Lions Advertising Awards.
Axe is present in over 90 countries throughout the globe. The Axe effect is also a very popular
slogan used to brand the Axe products.

Strengths:

 Good Advertising and Branding: Axe has successfully been able to create buzz through
its youth-centric advertisements and has gained popularity through them.
 Brand recall – A positive aspect of AXE is that it has a fantastic advertising frequency,
therefore having a fantastic brand recall as well. Axe regularly comes up with unique eye-
catching campaigns.
 Packaging – Besides the brand recall, the packaging of the deodorant, with its constant black
exterior is another advantage for AXE deo. When you go to a retail store or medical store,
AXE is displayed as a line of Black deodorants, out of which you can choose the one of your
choice.
 Far and wide distribution – Because it is from the house of HUL, AXE has a fantastic
distribution network and it is distributed parallel to all other products of HUL.
 Association with Ann Gottlieb: All fragrances of Axe are created by Ann Gottlieb, a
popular international fragrance developer.
 Affordable Pricing: Axe has always had a low pricing strategy to cover a larger share of the
market instead of going for higher price and targeting a niche market.
 HUL support: Axe being an HUL brand has an advantage of being a brand from one of the
largest FMCG in the world. This allows Axe to take risks for the business.
 Product Line Extension: Axe has successfully extended the brand name for products like
shaving gel, After-shave lotion and Cologne Talc.

Weaknesses:

 Less Popular in Rural: The advertisements and promotions only attract the urban
youth. It lacks appeal for the rural youth and thus this weakens the sales considering
the size of the market.
 Controversial Advertising Campaigns: Axe has been associated with its share of
controversy considering some of its advertisements which have been termed sexist.
This affects the brand value of Axe.
 Limited Target Market: Axe has a Limited Target Market, i.e. age group 16-25,
which restricts the sales of Axe.
 Brand fatigue – Axe has tried the same time-tested methods over and over – a guy
who attracts women in his life whenever he applies the AXE deo. This, with the fact
that it has a very common presence, has led to brand fatigue. Hence, people like to
“try something new” which is generally something other than AXE.

Opportunities:

 Expansion of Target Market: Axe should look forward to expanding its target market to
cover rural youth as well as expand the age group size.
 Tie-ups with Gyms, Hotels etc.: To increase its sale, Axe should look forward to tie-up with
Gyms, to increase sales and promotions.
 Rapid Urbanization: Urbanization has been increasing in the emerging nation and hence it
is an opportunity for Axe to capture.
 Exclusivity – Axe should ideally launch Limited edition deodorants and perfume just like
FOGG has done in India (a gifting package). This will give more of a premium appeal to
AXE.
Threats
 Competition: Axe faces competition from well recognized global brands such as Burberry,
Old Spice etc. and needs to constantly promote so as to maintain its market share.
 Threat of New Entrants: Local new entrants can prove out to be a threat for Axe for
example, Fogg in India has captured the market and has become the market leader in a short
span of 7-8 years ousting Axe from the top.
 Branded competition – The likes of Adidas, Reebok, Nivea and many others have entered
the Deodorant market. They cannot be classified as new entrants because they have existed
in the market since ages and Deodorant is just a new addition. But because of the
existing strong brand equity of these brands, they have affected the sale of AXE quite a bit.
 Seasonal Variation in Sales: Deodorant sells more in the summers and hence the seasonal
variation in the business is difficult to manage.

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