Neelesh Kamath : ePGP-04C-060 Assignment Questions: 1. Analyze Deo market and Dry Ideas Place in it.

What drives the category from the consumer behaviour point of view? The US Deo/AP market was form driven with form choice (68% loyalty) taking precedence over brand choice. The different types of form include: 1.Cream 2. Aerosols 3. Roll-Ons 4. Sticks & 5. Solids. The US market started with Cream based Deo/AP in 1950s used dominantly by women. Later in 1960s it comprised of mainly aerosol type of Deo, increasingly used by Men also along with women (Rt guard spray-Gillette was the first to launch), but after 1977 due to Govt ban on aerosols, Roll-on was introduced in 1978 by Gillette. The efficacy rate to reduce thermally induced perspiration was highest for Roll-on at 40-55% & the effectiveness based on the active ingredient formulation & delivery factors, was carried by water or silicon. Gillettes Roll-on (Dry Idea) was silicon based which imparted it the Dry-feel & nonsticky with long lasting effects. The following is the Dry idea position in the overall Deo/AP US mkt. Deo/AP US Mkt vis--vis Dry Idea Mkt Analysis: Mkt Metrics Analysis Category/Yr 1978 1979 1980 1981 1982 1983 Deo/AP Mkt size 479.4 475.3 490.5 491 490.6 506 CAGR% =0.90%. Mn (Units) The entire category
Y-OY % Growth

(0.85%) 176% Due to New Prod Intro

3.19% 60.6%

0.10% 17.5%

(0.08%) 9.59%

3.13% 6.68%

show fluctuating Y-O-Y growth for the US mkt.

Dry Idea Sales **Y-O-Y %Growth

Although Dry Idea CAGR% =35%, its

Y-O-Y growth is decreasing which is coherent with the Y-OY fluctuating growth rate of entire Deo/AP mkt. of the US.

** This decreasing Sales growth for Dry Idea showed consumer trend towards another form i.e. Sticks & Solids which increased by 6% & 21% resp. Advtg Cost ($) as % of sales

54%

42.9%

17.93%

17.76%

16.15%

12.49%

Unit Price ($/Unit) Y-O-Y %Growth

1.27

1.323 4.17%

1.546 16.8%

1.725 11.5%

1.906 10.49%

2.10 10.18%

Yrly spending on Advtg was high but as % of sales it was reducing yr after yr thus leading to decrease in sales of Dry Idea in subsequent yrs. Premium Pricing adopted for Dry Idea : Unit price increased every yr but due to falling Mkt conditions,

Dry Ideas Y-O-Y unit price growth flattened

Dry Idea snapshot: Division Category Sub-Category(form) Brand Target Consumers Category Mkt Size Dry Idea Mkt Share
(as % of Deo/AP Category)

PCD (1983)
Deo/Anti-Perspirant (AP) Roll-On (Silicon based) Dry Idea Unisex 506,000,000 units

Comments/Others Other Roll-on (water based) Aerosol/Stick/Solid Other Rt-guard / LadySpeed /? Other- Female/Female/? Roll-On Mkt Share

(as % of form) Sub-Category Pricing Packaging (Plastic RollOn)

4.2% 14%
Premium Sizes :2 (1.5oz & 2.5oz) Choices: 2 (Scented/Unscented) Trade/Consumer/ National Advtg (TV, Print, etc.) 12.49% 1. Efficacy :Improved Dryness & Odour protection 2. Aesthetics: Dryfeeling Application

22.3% (Form) Leader : P&G 19.4% Gillette

(based on Superior performance positioning)

Promotion Advtg Cost/Sales % Brand Communication (Dual benefit: Aesthetics & Efficacy ) Brand Development Index (Dry Idea user to Roll-on) ,Category Development Index (Dry Idea user to Deo/AP) Consumer Behaviour:

Multi-form Advtg to save on cost 1.Brand/Product aesthetics (Brand choice) 2.Application aesthetics (form choice)

High =Females in age grp of 12-24 for White students High=Females in age grp of 12-34 for whites, both students & employed (Old View used by Gillette) Brand as a functional product, its attribute & user, usage-habitual more in females Low involvement

Potential exists for higher age grps, employed, nonwhites Potential exists for higher age grps & non-whites

(Modern view) Consumers perception of evaluation of brand in what it means rather than what it does. Hedonic :Feel good factor High involvement due to

products with grid position UTILITIES. These are habitual consumption goods Do/Learn/Feel (B/C/A)

perceived Affects satisfying physiological, psychological factors involving VALS. Consumption is by A/C/B Feel/Learn/Do

2. Understand the Brand management (client-gillette) and Account management (agency-BBDO) organization based on the case data, read and follow the interactions (scenes 31-32, 62-44 in video transcripts) and analyze/ compare the client and agency perspectives on the Gillette marketing and advertising issues faced during the period. Solution 2: Brand communication was mainly for form choice (Application aesthetics) compared to Brand choice (Emotional/Aspirational/Affects/Hedonic, etc)

Form Choice

Application Aesthetics

Efficacy: Improved Dryness & Odour protection

Aesthetics: Dry feeling Application

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The Dry Idea started with No watercampaign in 1978 and in 1981 had poor Brand Recall of 14% against Secret P& Gs 61%. This was a wake-up call for Gillettes Roll-On brand, Dry Idea. Gillette had a meeting with BBDOs officials for a new campaign which underwent production and was aired commercially in 1982 as 1) SpokesmanNo water ,2)Stay Dry-Challenge, 3)Start Drier to Finish Drier. The ASI copy test showed results very low in terms of Brand Recall for all the three commercials against Category norm of 77. The closest being that of Spokesman76. Spokesman was popular with female consumers for its Application aesthetic, clarity in product concept apart from good brand recall. The agency, BBDO had repeatedly failed to find out a strategic communication fit for Dry Idea. While Gillette wanted to continue with Spokesman for short term till agency BBDO came out with a brand personality with a strategic fit for Dry Idea.

BBDO on the other hand insisted that Start drier to Finish Drier was a much better creative option compared to Gillettes proposal for spokesman, which stressed only on the functional/application part. Both Gillette & BBDO agreed that the Creative Idea was missing in the 3 rd commercial -Start drier to Finish Drier so also was the dual benefit of Efficacy & Aesthetics not balanced. More importantly was the communication which was fragmented, lacked long term focus & failed to communicate on does not stop perspiration (unlike Spokesman) & lacked persuasiveness. BBDO officials blamed Gillette for low and erratic spending on Advtg budgets compared to its competitors spending of 3 to 1. BBDO also attributed the failure to high competition from other forms like solids & Sticks. Overall the commercials lacked Brand personality according to them. There was no deeper strategic understanding of how much of what was required of Aesthetics & Efficacy. In 1983, Gillette pulled up BBDO, upon which a Creative Exploratory Project was initiated before the next production & airing can happen. A six (6) concept commercial test was carried out on 1. No water efficiency 2. Substantivity 3. No water aesthetics 4. Against Solids 5. Against the World and 6. The World graph. The world graph was chosen which was a comparison of Dry Idea against other RollOns and Solids based on clinical trial. The test copy showed failed results for both Brand awareness & Brand positioning for the World Graph. It was found by BBDO that Dry Idea was positioned along functional performance compared to its competitors positioning along People benefit VALS. Therefore it was decided to adopt a Creative strategy -:Dry Idea goes on a feeling drier & keeps you drier than other Roll-ons, targeting Adults-age grp 18-49 to bring out the Brand Personality of Dry Idea that will be consistent with Imagery. Research Findings suggested that Positioning form & attitude using VALS be adopted. Balanced Aesthetic /Efficacy strategy No Water claim support & demo Competitive positioning against Roll-Ons only Target adults achiever for both Men & Women, who are self-assured, well educated, confident, who lead a busy life In mid1983, It was finally decided to go in for Trial campaign with Dry Idea: Goes on dry & keeps you feeling dry, clean, and comfortable all day long Support: No Water, Effective wetness fighter Style & Tone: Upbeat, contemporary, high quality

Target Audience: Affluent, well educated, confident, Adults who lead active busy life-styles. 1.Spokesman 2. All you feel is dry & 3. NEW Start drier to Finish Drier was shown to audience & in Oct 1983, the ASI test results showed disappointing Brand Recall results against Norm of 17% Males & 13% Females, after putting in 3 years of efforts. The closest to norm was that of Brand recall for Spokesman Conclusion 2: The Final 1983 ASI Brand recall test results of Creative Exploratory Project closed off with what they started initially in 1978 (Spokesman) with just a improvement in Brand personality built in, It was still undecided whether to go in for Aesthetics or Efficacy. Gillette did not want to air in these new commercials. They were left with alternatives on: 1. Either fire BBDO, as single source did not bring in competency & loose the learning curve 2. Go in for an entirely New copy but with less time to spare on their hands 3. Go in for a New agency which did not have any negatives (fresh, creative ideas) but lacked the learning curves of BBDO requiring additional 5-6 months 4. Employ another agency to work alongside BBDO which will double their expenses but will expedite the work 3. What really is the problem? What alternative Carol has and what should she do?
Solution:

In a falling US market for Deodorant /Anti-Perspirant category, competitors spending on Advertising was higher compared to Gillette. Throughout the three different campaigns from 1978 to 1983, Advertising highlighted the same functional benefits with only a little Brand personality build in, achieving market sales more for females as per the BDI (Dry user Index to Roll-On) and is not coherent with the Brand Recall which shows higher for males. Overall brand recall was closest to Spokesman & lower compared to the Industry norms. Confusion existed in the minds of the consumers for three different commercials which were not having a common story line among them. More emphasis on the functional part of the brand led to no or little creativity for emotional part of the brand. The emotional part was missing which the consumers could not identify Dry Idea with as part of their self or extendedself (self-concept) thus disengagement of their self with the brand. A connect with the brand was missing.Thus a brand Image and or personality was missing in its entirety. They could have made use of Celebrity endorsements for consumers to identify themselves with as their target consumers are affluent There was a confusion over which one to use more Efficacy or Aesthetics.

Carole should make use of a single, advertisement for both male & female as couples maybe using celebrities who will endorse their brands. Thus brand awareness & persuasiveness will increase. Create campaigns where consumers are given trials, promo coupons for adults to induce them to try & later buy. Carole should go all out & hire a new agency who will bring in fresh, creative Ideas introducing the above ideas in Dry Idea with commercials pitted against other Roll-Ons.