Professional Documents
Culture Documents
SWOT Analysis: Learning Community 011
SWOT Analysis: Learning Community 011
Group Members:
Brandon Davis, Sam Gravois, Allison Koesters, Claire Koontz, Kirsten
Lucas, Sean Malone, Jake Oney, Audri Razzoog, Danny Rojek, Nell
Saunders, Abby Snyder, Emily Stephens, Justin Tulloch, Serin Waddell,
Luke Warren, Joshua Weidus
Table of Contents
Table of Contents 2
Old Spice SWOT 2
Introduction 3
Strengths 6
Iconic Brand Image
Social Media
Commercials and Advertising
Sustainability
History of Diverse Product Assortment of Product Mix
Weaknesses 11
Animal Testing
A History Lost
Gender Portrayal
Competition Within P&G
Opportunities 14
Workplace Environment
Market Expansion
Womens Line
Green/Safer Products
Threats 18
A Shift Toward Small/Local Brands
Close Brand Competition
Class Action Lawsuit
Conclusion 21
Appendix 23
Bibliography 32
Introduction
Procter & Gamble: it may be hard to believe that a company that manufactures close to
one hundred brands of products was once a startup business that sold only soap and candles.
Although it is now a multinational company, it all began with a simple handshake between two
men.
Old Spice SWOT 3
In the early years of the nineteenth century, Cincinnati, Ohio was a hub for monumental
growth because of its spot along the Ohio River. It was a prime location for transporting
materials to other key cities along the river, making it a popular destination for settlers and
migrants to make their home. Due to Cincinnatis plethora of meatpacking businesses, there was
an abundance of the byproducts fat and oil. These primary resources attracted candle maker,
William Procter, and soap maker, James Gamble to establish themselves in the lively town
known as Porkopolis (History of Innovation). The two met after marrying the Norris sisters,
Olivia and Elizabeth. The History of Innovation page on P&Gs website states, it was their
[the Norris sisters] father that noted his two sons-in-law were competing for the same raw
materials, which in turn led to him suggesting that Procter and Gamble become business
partners. In 1847, both of them put forward $3,596.47 to create a soap and candle business,
which would go on make a net profit of $37,000 less than a year later. By 1859, sales had already
reached $1 million. They had no idea that this family business would one day be known as the
largest and most profitable consumer good company in the world (History of Innovation).
In 1878, the second generation of the Procter and Gamble families became involved in
the company. They each took their own roles; Gambles sons working on research and
development and becoming the first CEO, and Procters son becoming the father of branding and
advertising. James Norris Gamble, the oldest son, did years of extensive research and eventually
introduced Ivory soap, a two-in-one product that was suitable for use in the home, such as on
clothing, dishes, and floors, as well as on the body. This was the companys first branded and
From there, P&G moved on to developing other products, one of the most notable being
Tide detergent. This washday miracle became the leading laundry product in the country by
Old Spice SWOT 4
1949 because it did a better job than any other available detergent. Following closely were Oral
B toothbrushes, Pamper diapers, and Crest toothpaste, which are still leading products on the
market today (History of Innovation). What made these products especially notable and
successful was how revolutionary they were; they surpassed their competing brands with ease.
P&Gs widespread success in Cincinnati led to the spread of the business into the rest of
the country, and eventually the world. The company now operates in Asia, Europe, Africa, Latin
America, and North America (Where We Operate). This widespread success continues on,
resulting in net sales of $65.3 billion in 2016, as seen in Figure (#) [net sales]. (P&G 2016
Annual Report). At 44% of net sales, the majority of P&Gs success is in North America, but
European markets make up about a quarter of net sales. The remaining 33% is in the other
regions P&G does business with, such as China, Asia, and Latin America (as seen in Figure (#)
[geographic location]. According to Forbes, the company now employs 110,000 people across
the globe. P&G is 39th on the Global 2000, showing its success on all fronts in the business
Product lines that P&G manufactures covers a number of different bases, from fabric
care, to grooming, to skin and personal care. Among the skin and personal care category is Old
Spice, the quintessential mens grooming brand (About Old Spice). However, it has not
always been the leader of the male grooming industry. It was originally produced by the William
Lightfoot Schultz and the Shulton company, founded in 1934.. The product, known as Early
American Old Spice was introduced as a womens fragrance in 1937, followed soon after by
Old Spice for men in 1938. Interested in a colonial theme for the product, Schultz chose a
nautical theme for Old Spice. This is what brought on the traditional colonial sailing ship that is
Procter & Gamble purchased the entire line of Old Spice products in June 1990, starting
its journey to success within the company (History of Old Spice). When it was acquired, its
popularity and sales were showing signs of declining (Neilly). However, once P&G took over,
Old Spice was marketed towards younger men as well and in light of that, they have rebranded
and enhanced the company by introducing new products and continuing with many of their
original lines. Today, their product line includes mens deodorant, body spray, body wash,
Procter & Gambles Mission: P&G will provide branded products and services of
superior quality and value that improve the lives of the worlds consumers, now and for
generations to come. As a result, consumers will reward us with leadership sales, profit and value
creation, allowing our people, our shareholders and the communities in which we live and work
Procter & Gambles Values: P&G has many values that it lives by, showing the high
standard it holds itself to. Those values are integrity, leadership, ownership, trust, and a passion
for winning. Descriptions of each value are proudly displayed on the companys website
Procter & Gambles Emphasis: The emphasized standards that P&G holds itself to are as
follows: show respect for all individuals, the interests of the company and the individual are
inseparable, strategic focus on work, innovation is the cornerstone of success, seeking to be the
best, valuing mastery, an external focus, and mutual interdependency (Purpose, Values, &
Principles).
STRENGTHS
Old Spice SWOT 6
Iconic Brand Image- One significant strength of the Old Spice brand is its iconic
brand imaging. The massive product line all share the easily recognizable packaging: a
bright red bottle, sailing ship logo, and the red and white Old Spice script lettering. The
classic ship, which has appeared on Old Spice bottles since its beginning in 1938, was
made to resemble either the ship The Grand Turk or the ship Friendship (As seen in
figure-ship on bottle). During the mid 1990s, Old spice changed the older looking
clipper ship to a more modern yacht, still keeping with the nautical theme, but changing it
to create a more modern feel (Old Spice Packaging). However, ultimately, the brand
realized that the iconic clipper ship was a part of what made their brand image so strong,
hence, the classic ship is what you will find on the packaging today. While their newer
lines all have unique looks of their own, with modern graphics and colors, you will still
find the Old Spice script lettering and classic ship front and center. Even the color of
packaging is a strength. Studies have been done proving the attractiveness of the color
red to many consumers. It catches the eye and is more appealing than other colors,
therefore Old Spices red packaging naturally helps ensure their product is a top seller
(Zerbe). Continuing with their nautical theme, the classic buoy-shaped bottle (As seen in
figure- buoy aftershave) of their original after shave products is a favorite of many, and
the company has kept this iconic shape to hold onto to its legacy. The nautical ambiance
and theme that Old Spice provides is one that has strong brand awareness and
recognition.
Social Media- Old Spice has a strong social media presence on platforms such as
Twitter and Youtube. As of October 16, 2016, Old Spice has 223 thousand followers on
Twitter and over 595 thousand subscribers to its Youtube channel and over 327 million
views across all of its videos, with many videos surpassing 10 million views each.
Old Spice SWOT 7
Comparatively, these numbers are huge as AXE, one of Old Spices main competitors,
only has 134 thousand followers on Twitter and 43 thousand Youtube subscribers. Old
Spice also does a spectacular job engaging customers through social media by quickly
replying to tweets that complain about their product, asking the customer to direct
message them, so the problem can be solved on a personal level. This action can be seen
several times on Old Spices Twitter page, and two specific instances of this would be
when Old Spice replied to tweets by @morgyman and @blakesyms12 as seen in figures.
Both of those specific tweets that they replied to were about different issues, but Old
Spice took similar action in both cases by reaching out for more of a personalized
solution by asking the people with issues to DM them. By trying to personally fix
consumers problems Old Spice is building customer loyalty. Old Spice is reaching
commercials. Old Spice commercials are fun to watch and they reach many people. The
commercials have reached consumers over 1.2 billion times as of August 2010 (Holthaus,
Old Spices New Ads).Which goes to show how Old Spices commercials are growing
their brand awareness and name recognition. The commercials also feature celebrities
that are appealing to both men and women, such as the last celebrity spokesman, Isaiah
Mustafa. The ad campaign with Mustafa was rated as one of the best ad campaigns of the
21st century by Advertising Age (Top Ad Campaigns). The ad campaign with Mustafa
is a great strength because of its appeal to women in addition to men. Because the
commercial is appealing to both genders, Old Spice is more likely to be bought whether
either man or woman goes to buy deodorant. Besides a strong presence in commercials,
Old Spice is gaining advertising in a variety of ways. For example, the last mile of the
Old Spice SWOT 8
Flying Pig Marathon in Cincinnati, Ohio is called the Old Spice High Endurance Mile to
the Finish, This is a strength because it allows Old Spice to reach and stay in the minds
athletic men and women who would be more likely to buy their products if they associate
it with something they are familiar with and passionate about. (Holthaus, Lipstick on a
Pig), This type of exposure allows them to expand their market share, grow
culture. While Old Spice is making efforts to promote social responsibility and
sustainability by implementing policy that mandates all production power plants will be
2020 Goals, Procter & Gamble sustainability page), there are a number of things we
suggest they can do to better their environmental footprint. We would recommend that
materials, such as recycled packaging and developing better relations with supply chain
partners to ensure they are also operating in compliance with green and fair trade
practices. With further understanding of the global impact of their products and the
effects of their processes, Old Spice will be able to produce a product that is better and
more sustainable for the world, while building an image as an environmentally friendly
company.
History of Diverse Product Assortment or Product Mix- Another strength Old
Spice possesses is its extensive and deep product lines. Old Spice is not just a fragrance
company anymore. It has done a very good job of diversifying itself within the market.
Old Spice exemplifies great product line breadth, offering a vast selection of
Old Spice SWOT 9
Antiperspirants, Deodorants, Body Washes, Body Sprays, Bar Soaps, Hair Care and
Styling tools, Trimmers and Shavers, Shave Gels and Colognes, as well as product line
depth with many different scents within these product lines. From P&Gs acquisition of
Old Spice in June of 1990, they have worked hard to reimage the Old Spice brand from
just your grandfathers deodorant to a diverse product mix of cosmetics with a new,
youthful image. Old Spice has kept its original Classic Scent, while also expanding to
many new scents to appeal to the younger target market. To fit their growing product line
and reformed youthful image, in 2008, Old Spice started an ad campaign that emphasized
the heritage and history of their product line to younger generations, calling Old Spice
Products, "The original and stating If your grandfather hadn't worn it, you wouldn't
exist(Old Spice, Wikipedia). Old Spice has long utilized its history as a strength to
provide credibility when persuading young men to use their product. An example is,
again, the 2010 ad campaign with actor and former NFL football player Isaiah Mustafa.
Old Spice utilized Mustafa in order to respond to the growing popularity of foreign
competitor AXE among adolescent boys. This Smell like a Man, Man campaign
utilized Old Spices long history and heritage in the market and positioned Mustafa to act
as a well experienced expert who would guide young men into masculinity. The appeal of
this strength is explained by the quote, "A big question for us at the time was the name
and whether the brand could be relevant to young men moving forward. An early and key
decision was to turn this perceived weakness into a strength. With its 70-year brand
heritage Old Spice was experienced and well positioned to be an expert on masculinity
and being a man"(Eric Baldwin, Case Study Digital Marketing Old Spice Response
Campaign, Dandad.org).
Old Spice SWOT 10
WEAKNESSES:
Animal Testing- In this day and age, consumers are constantly becoming more
environmentally and ethically conscious. Many people will now put more research into
the products they are buying, and allow their buying decisions to be swayed by issues that
are important to them. One issue that has come to the forefront of consumers minds is
animal testing. Old Spice does in fact test their products on animals before bringing them
to consumers. This is seen by many as a form of animal cruelty, and creates a negative
view of Old Spice for some consumers. P&Gs website claims that they only conduct
animal testing in places where it is required by law, but this still leads to many issues with
consumer acceptance. In order to counteract this, P&G has put some research into
alternatives to animal testing, but they dont make their efforts very well known to their
customers. However, since this is a growing concern amongst many consumers, Old
Spice needs to listen to customers in order to better understand what methods they think
are acceptable, and to show them that they are willing to change their practices in order to
benefit everyone.
A History Lost- The Old Spice commercial campaign has always been full of
historical foundations, generational differences, and flashy slogans. Despite this and its
consistent coloring, lettering, and script, the one weakness that its advertisements have
had is losing sight of the past. Old Spice began its advertising with the point in mind to
cater to the manly outdoorsman. In 1972, it released its Wake up with Old Spice
campaign (VintageC OmPlus). This strand of commercials gave any grown man a
refreshing feeling of relief to their typical fragrance and body wash smells. A problem
with the evolution of Old Spices advertisements is that it has lost its older audience and
its historical roots. New commercials cater towards a younger audience and more modern
Old Spice SWOT 11
interests. Instead of fragrances being refreshing and purifying, they have become stronger
and more complex. In todays business world, managers, CEOs, and bosses arent exactly
looking for the intensity of a Bearglove Wild or a Swagger Red Zone, And because
of this, Old Spice has lost much of its older, more professional audience and, as a result,
many potential customers. It has not made up for it in advertisements either. The shirtless
ladies men, movie stars, and race car drivers may seem attractive during the superbowl,
but when the work week starts back on Monday, people are looking for a clean and
neutralizing scent that will warm employers and mask body odor. Old Spice has begun to
abandon its history and because of it, is losing its original consumer base.
Gender Portrayal- Making sure marketing is as unbiased as possible today is a
hard feat; one that Old Spice is struggling with. Looking back at Old Spices campaigns,
such as the Smell Like A Man and Legends, women, but more specifically, men have
stereotypes thrust at them. The commercials for the Smell Like A Man campaign
already suggests that you are not a true man unless you smell like one. Spokesperson
Isaiah Mustafa even addresses the women watching the commercial to compare their
man to himself, later telling the women that their man can be more like him if they
buy Old Spice (The Man Your Man). Not only the commercials, but the different
scents available suggest a stereotypical man. Just to name a few, fragrance scents include:
champion, wolfthorn, hawkridge, and lionpride. These scents portray that a real
man would only smell like someone who spent a lot of time outdoors and must be an
achiever. A male can be identified as a man in many different ways, but the definition Old
Spice is portraying does not encompass all the facets each different man can have, which
limits even more of the market in which they are trying to sell to.
Old Spice SWOT 12
Competition within P&G- Within their own umbrella company of P&G, Old
Spice is forced to compete with a lot of its family members for the same target market
and product. For example, according to Quoras website, Gillettes target market is
roughly 18-34 year olds and Old Spice is targeted towards roughly that same same
market. Old Spice has recently turned from targeting the older generation and has
refocused its marketing efforts towards the younger generation. One of the problems
associated with this repositioning is that there is a conflict of target markets within the
P&G family, causing a loss of profit and a competition for consumers within itself. As
seen in figure #(same one as below), The market size has gone up 4 billion dollars in a
mere four years, and is projected to go up almost another 6 billion by 2021(statista graph
of the market size). With the antiperspirant and deodorant market is so large every little
bit of the market share is important and having the two brands compete against each other
is unneeded.
OPPORTUNITIES:
of Old Spice is vital in order for the company to stay ahead and retain customers. How
can you take a brand around 80 years old and transform it to think like a start-up? Old
Spices innovation is solely dependent its employee, therefore the start-up mindset starts
with them. It starts by creating an environment where employees are able to be creative,
communicate ideas, and stay productive. Management can greatly hinder or boost
employees potential. In a traditional hierarchy, employees may feel the pressure to think
about their everyday small tasks, instead of thinking big. Employees also may not have
the chance to communicate their valuable thoughts or ideas to upper management, due to
Old Spice SWOT 13
the number of layers an employee must go through in order to reach upper management.
thoughts directly to upper management, this nature leads employees to think big, because
they are then able to see how their creativity and thoughts can directly impact a company.
Although Old Spice may not be in a position where they can reorganize their structure
into a flat structure, they can create a platform that make allow employees to have a
voice. Such a platform will create an environment where employees are able to
constantly add to the innovation of Old Spice. One way to do this would be to create a
platform where employees are able to post ideas and discuss what ideas they like the
who commuicate ideas for the MyStarbucksIdea.com are consumers who are able to
Share. Vote. Discuss. See. the ideas they put out into the platform.This process will
allow a more open and creative structure for employees to share their ideas. Employees
are at all different levels and focus on all different aspects of Old Spice. With the amount
of diverse perspectives employees have on Old Spice it can be so powerful to see what
employees are observing and what they may want to change or add to the brand. A
platform where these diverse perspectives can be put together will create an incubator for
market. We propose that Old Spice recreate the very first pilot scent they made for
women when they first started in 1937. With the approaching 80th anniversary of Old
Spices establishment, doing a tribute to the past would be a great way to celebrate. Also,
to make tribute to the original bottle, Old Spice should have the old design of the bottle
be recreated in a plastic version. Although the original bottle was glass, recreating it in
Old Spice SWOT 14
plastic will be more cost efficient. The original bottle, with the current logo of Old Spice,
along with some indication printed on the bottle that the company is now reintroducing
the first Old Spice womens fragrance set would give the brand much attention from the
media and consumers. With the resurgence of the original idea of a womans fragrance,
competitor being Axe. Due to the heavy competition between Old Spice and Axe, we
have look into what has given Axe more success. In 2012, Axe successfully pitched their
first womens line of products in the scent Anarchy (Zafar). These new scents excited
Cosmopolitan and InStyle. On the website of InStyle it was stated that, Axes Anarchy
scent was perfect for women who always considered Axe to only be products in the
bathrooms of our brothers and boyfriends (Mychaskiw). The new line of products
would be made for girlfriends and wives who already buy Old Spice for their significant
others. These products would be just as affordable and targeted toward the everyday
woman, around the ages from 18 to 40 years old. Old Spice needs to take a daring step
forward to extend the line and the variety of people they market too. There is a more than
large enough market for women desiring to find effective, long lasting antiperspirants and
fragrances.
Green/Safer Products- Overall, P&G utilizes green materials for a lot of their
products. For some of its products, though, there is opportunity to further the use of these
green resources. There is an opportunity to increase not only the ethical, but also the
social responsibility of the brand. Many of Old Spices products use ingredients that are
not eco-friendly and not necessarily considered safe for human use either. One of these
Old Spice SWOT 15
products is propylene glycol, which has been known to cause skin rashes in those with
sensitive skin (Sherman). Because of this, Old Spice has the opportunity to utilize
glycerol in place of the harsher product. Glycerol is a natural alternative with the same
effects as propylene glycol without the same effects on human skin. Another not so safe
product used in some Old Spice products is synthetic coloring. Synthetic coloring is
opportunity for this product would be to either not use coloring altogether or use natural
colors. Both of these options would not only be safer for users, but also more sustainable.
It would not only benefit the product itself, but the company overall to go green. This
would create an opportunity for Old Spice to increase its social responsibility. Ultimately,
this could encourage consumers who previously did not purchase Old Spice, to now
purchase it because of its conscious effort to use safer and greener products.
THREATS
consumers are buying personal care products from small/local brands, all-natural brands
and monthly subscription services; areas in which Old Spice has a weak or no presence.
In just 3.5 years, Birchbox, a monthly box subscription service for personal care
products, has grown its subscriber base to 800,000 subscribers and the organic and
natural personal care products market growth has consistently outpaced the conventional
product market growth in the past few years. Old Spice is particularly vulnerable to these
forces, as their target market of young males is proven the least brand loyal, in regards to
Both retailers and competitors of Old Spice and P&G have reacted quickly to the
consumer shift away from conventional, big brand products. Target has begun to carry a
greater selection of smaller brand products and tailor inventory to fit local tastes. Another
one of Old Spices competitors, Unilever, has recently purchased Dollar Shave Club,
which has given them an upper hand with younger males in the monthly subscription
market. Unilever is also discussing a deal to acquire celebrity Jessica Albas, Honest Co.,
a consumer products retailer focused on natural personal care products; this acquisition
would provide Unilever with a foothold in the emerging natural product market. With
P&G and Old Spice remain vulnerable if they delay to enter the monthly subscription
Close Brand Competition- Old Spice constantly faces fierce competition from
other large brands such as Axe, Gillette, Degree, and Dove Men that focus on the same
target market. Competition in the male personal hygiene products is a fierce market that
is experiencing rapid growth. Axe and Old Spice consumers are very similar: 70 percent
of these consumers are men and most of them are between the ages of 25 and 34. As
expected many of the consumers that each company targets overlaps. According to Slice
Intelligence, Old Spice outperforms Axe in regards to buyers per income in each income
level except for the 1-50k range (Figure 6). This can be interpreted as consumers who
likely are students, which make up 43.67% of Axe consumers. Old Spice may not
identify with students as well as Axe does, costing them a large number of customers in
the US market. If another economic recession were to hit the US, Old Spice might lose
some of their 50k-100k income customers as they may drop below their previous income
Old Spice SWOT 17
level, which stats prove, tend to buy Axe products. Nearly 75 percent of Old Spices
revenue comes from strictly deodorant sales, while Axes revenue is evenly dispersed
across its entire product line (Figure ). Styling Products, Cleansers and Shampoos all
generate more revenue per category than the opposing Old Spice Products, making up a
total of 46.3% of Axes total revenue vs 16.8% of Old Spices total revenue (Stanton).
Old Spice in sales and the US. Degree Mens deodorant out sold Old Spice High
Endurance deodorant by over $70 million dollars in sales in 2014 (Figure ). Old Spice
High Endurance deodorant saw a -0.7% decline in sales in 2015 which was actually
higher than Degree Mens deodorant (-3.3%), however Axe Dry deodorants (no change)
and Dove Men+Care deodorants (32.2%) both have a higher growth of sales than that of
Overall Axe and Old Spice are in a fierce competition for the same customers and
are neck and neck in regards to market share making them huge rivals. Gillette ($783m)
dominates the shaving and grooming industry boosting the highest amount of sales,
outperforming Old Spice in the same category by $709 million dollars annually. Degree
has firm control over the men's deodorant market, outperforming Old Spice deodorant by
over $47 million dollars in sales in 2016. Dove Mens+Care is also putting pressure on
Old Spice because it has seen such rapid growth in the industry the last few years.
Although Dove Men+Care has most recently been outperformed by Old Spice High
Endurance by $2.1 million dollars, generating 4.3% of the deodorant market share
compared to 4.4% posted by Old Spice High Endurance (Drug Store News), they are
Old Spice SWOT 18
gaining on Old Spice at an alarming rate, for the amount of time that they have been in
existence.
Class Action Lawsuit- Problems with Old Spice products are being brought to
attention through a currently open class action lawsuit against Procter & Gamble. The
lead plaintiff is a Virginia man who says he suffered severe rashes, burning and
discomfort after only a few uses of an Old Spice product (Grasha). Along with this man
the lawsuit also contains the cases of at least 100 other consumers who have been
affected by these products. It is seeking over $5 million in damages for consumers who
purchased Old Spice deodorant and were injured by a deodorant rash or chemical burn
and contains 13 different Old Spice deodorant products (Top Class Actions). This is a
threat to the Old Spice brand because the bad PR will affect any of the brands products
that are still on shelves. The large amount of social media attention that is now being
brought to the issues with the different Old Spice products will discourage large amounts
of consumers from buying this brand of deodorant as well as possibly continue spreading
the word through different social media sites and negative word-of-mouth. This type of
bad PR can make Old Spice brand investors nervous and cause many consumers, affected
or not, to search for alternative products causing Old Spices market share and revenue to
decrease.
Conclusion
Old Spice is a brand that is rich in history. One that is a part of the fabric of our American
culture, and something that can hopefully stand the test of time. From the beginning with
William Lightfoot Schultz and the Shulton company and now with Procter and Gamble, Old
Spice is a brand that has and will thrive in the days to come. Though the path is not always easy,
Old Spice is a dynamic brand that continues to grow and thrive. Whether its by utilizing its
strengths, such as its iconic and easily recognizable brand image, strong and interactive social
Old Spice SWOT 19
media presence, innovative and engaging advertising campaigns, or the quality product which it
produces. Old Spice has strengths and opportunities that it can focus on as it continues to grow.
These include a dynamic and engaging workplace for its employees, a possible historically rich
women's line, an environmentally friendly approach, and historical approach to its future by
utilizing its prosperous past in its marketing. Old Spice can truly flourish in the years to come if
it can utilize these things, stay away from the threats of its competition, and fix weaknesses such
as animal testing and mixed brand image. However, overall, Old Spice is an incredible brand
with a rich history and a incredibly bright future.
Old Spice SWOT 20
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