DEOTECH LLC

ANALYSIS REPORT
Written by Delia Sargeant, Tyler Noeth,
and Stephanie Munson

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Table of Contents

Company Overview ................................................................................................. 3

Major Competitors ................................................................................................... 4

Glade .................................................................................................................................. 4

Febreze ....................................................................................................................................................... 5

Arm and Hammer ........................................................................................................................................ 6

Major Consumer Segments ...................................................................................................... 7

Legal Threats ........................................................................................................... 9

Economic Trends ...................................................................................................10

Social- Cultural Trends .........................................................................................11

Technology Innovations .......................................................................................13

Objectives ...............................................................................................................15

References ..............................................................................................................16

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Company Overview

DeoTech LLC was founded May 23, 2016 by two high school seniors, Anthony Tamras

and Drake Roberts. Both attended Palatine High School in Palatine, Illinois where they took a

class called Business Incubator. To summarize the course, students were randomly assigned to

groups and told to come up with a product or service to solve a problem.

Having both been involved in high school sports, Roberts and Tamras knew the struggle

of a bad smelling gym bags and equipment. So, they set out to create the best portable

deodorizer for anyone’s need – locker, gym bag, equipment bag, closet, car, bathroom, etc.

After designing several prototypes, they came up with deoblock – a cube shape design

that is more durable, structurally sound, better for customization, and different from those already

on the market3. The way it works is simple – pull apart the two halves, insert the 100% recyclable

gel pod, align the arrows, and snap it back together. If consumers don’t want to use their

deoblock at the moment, all they have to do is twist the top half to conserve the use 18.

The main goal for this product is to make sure bad scents aren’t just masked by a good

one. By formulating a mixture of a plant base gel and one of three essential oils (apple blossom,

oceanside, or sandalwood) together, this not only is able to attack mal odors at the source but it

ultimately omitting them3.

Overall, DeoTech is still a brand-new company who is in the process of developing a

name for itself on the market. This report will highlight some of the most crucial information

DeoTech needs to be aware of in terms of outside factors as well as highlight some internal

controls the company could improve on. Research objectives have also been created to help

continue the research process for determining DeoTech’s best avenue for long-term growth and

success.

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Major Competitors

Company: S.C. Johnson & Son, Inc.

Competing Brand: Glade

Overview: S.C Johnson & Son, Inc. was founded by Samuel Curtis Johnson in 1866 and is run by

CEO H. Fisk Johnson as one of the leading manufacturers for household cleaning and storage

products. The company has 17 brands under their name, Glade being DeoTech’s main

competitor under S.C. Johnson. The company operates worldwide in 70 countries in Africa, Asia,

Australia, New Zealand, Europe, North America, and Latin America. In the past 25 years the

company has won 58+ awards in categories including Business and Sustainability, Workplace

Environment, and Diversity and Inclusion, proving them to be a top competitor for DeoTech in this

market13.

➢ Total Revenue: $10 billion

➢ Employees: 13,000

➢ Facebook Fans: 133k - Twitter Followers: 18.3k

Competing Products:

• Glade Solid Air Freshener:

o This product is an easy to use air freshener that you would typically set down in

any room and will start to freshen the space around it. This product comes in over

ten different fragrances and doesn’t require any electricity or batteries. In order to

adjust the amount of fragrance released the user must simply raise or lower the top

lid and also offers refills. This Glade product is most similar to DeoTech’s

DeoBlock17.

• Glade Pug-ins:

o With this product, consumers plug one into an outlet and the heat produced causes

the fragrance to be released into the air. Similar to DeoTech, this product markets

its use of essential oils used in the scent. Glade also offers a customizable scent

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option where you are able to create your own scent and use them in your plug in

while also offering many designs allowing them to fit into any room 6.

Company: The Procter and Gamble Company

Competing Brand: Febreze

Overview: This company operates in five main segments including Beauty, Grooming, Health

Care, Fabric Care, and Home Care with the majority of its sales, about 32%, coming from Fabric

Care. Under Fabric Care is where we find air fresheners which include another one of DeoTech’s

main brand competitors, Febreze. Procter and Gamble is a global company that is working in

about 70 countries worldwide and the company has used its reputation as one of the largest

makers of consumer-packaged goods to help make a difference in Animal Welfare,

Environmental Protection, and Human Rights 22.

➢ Total Revenue: $66.7 billion

➢ Employees: 92,000

➢ Facebook Fans: 5.6 million - Twitter Followers: 190.5k

Competing Products:

• Febreze SMALL SPACES

o This product is a small transportable pod used to make any small space under

10’x10’ smell fresh. This product cost $3.49 and comes with one refill as well with

options to buy more. Febreze SMALL SPACES last for one month and have 14

fragrances to choose from. Similar to other products this one also offers and

twistable base in order adjust air flow and control the amount of fragrance

released5.

Company: Church and Dwight

Competing Brand: Arm and Hammer

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Overview: This company was founded in 1846 and is now one of the leading companies in

household consumer products and the Personal Care Industry. Church and Dwight has 27

brands under the name, one of which is named Arm and Hammer – another big competitor in this

market. This company places high value on sustainability and uses their six pillars of

sustainability in every aspect of their organization from their production process to giving back to

the community. Church and Dwight is a global company operating in Canada, Mexico, Brazil,

France, the United Kingdom, Germany, Australia, and works with businesses in 130 other

countries worldwide2.

➢ Total Revenue: 3.4 billion

➢ Employees: 4,145

➢ Facebook Fans: 766k - Twitter Followers: No Twitter

Competing Products:

• Arm and Hammer Odor Busterz

o Unlike some products this one can be used anywhere in your home and anywhere

on the go. These are small balls that fit almost anywhere and inside contain

natural baking soda in odor to absorb any smells as well give off a pleasant odor.

These can be set around the home and also work in laundry bags and small

spaces. They last for 60 days but do not have any options for refillables. This

product also does not have different fragrance options but what qualifies this

product as a competitor is its ability to deodorize small bags, such as gym bags,

which are DeoTech’s biggest niche 7.

• Munchkin Arm and Hammer Nursery Fresheners

o This product works the same way as the Arm and Hammer Odor Busterz using

baking soda to eliminate odors, but these come in both citrus and lavender

fragrances. This product is specifically designed for diaper bags and hampers but

could be used for similar items such as gym bags.

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Major Consumer Segments

Health-Curious Millennial

So far DeoTech has mainly decided to market their product for gym bags and athletic

people making the Health-Curious Millennial a perfect consumer segment to target. This group of

individuals is becoming increasingly concerned with their lifestyle choices as they are becoming

adults. This consumer segment hasn't decided on the right path for themselves yet but are setting

up habits they can use for the rest of their life regarding diet, exercise, and activities. This

segment also looks to buy products that are natural and are willing to pay more. DeoTech places

value on their entirely plant-based deodorizing gel and use of essential oils, which this consumer

segment might find appealing. Health curious millennials are focused on self-improvement and

with DeoTech’s focus on athletic areas they might be able to find success among this consumer

habits16.

The New Independent

The New Independent group is a group of people that a lot of brands are not reaching and

it’s a problem because this consumer segment makes up the majority of the adult

population. This is a great group to focus on marketing to because they are financially stable and

looking for places, brands, and products to spend their money. A key factor about this group is

that they are very aware that there aren't a lot of products focused on and made for them16. If

DeoTech can find a way to fill this void with this consumer segment they will see many benefits

from the New Independents financial freedom.

The Gen Z Screenager

The Gen Z Screenager is one of the best consumer segments for DeoTech to put focus

on. These consumers are some of the youngest in the market and are finally starting to make

their own money and decisions on how to spend this money. If DeoTech is continuing to market

toward younger athletic consumers it is best to start establishing a connection with them to make

them lifelong customers. Another reason this is a good consumer segment to focus on is

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because out of all consumers these individuals are most involved with social media feed 10.

DeoTech currently doesn’t have much of a social media presence and as a new product they

need to establish some brand awareness and this consumer segment is a great start. Gen Z

Screenagers like to learn about new products things they share on their social media and if

DeoTech is able to become one of these shared products it could boost sales among this

demographic.

Geographic Segmentation

A growing trend in the air freshener industry is choosing scents that go with the current

season. This will play big role if DeoTech were to use geographic segmentation. By looking at

the climate of the area the company will be able to decide which scents – Oceanside,

Sandalwood, and Apple Blossom – to gear towards each geographical area. For example, the

Oceanside scent might see better sales on the west coast where the weather is warm, compared

to the Midwest where Sandalwood might see better sales during the winter months to match the

season1.

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Legal Threats

A main component of the DeoBlock is its essential oil and plant-based deodorizing gel.

Essential oils are currently very popular with Americans, according to a report by Grand View

Research in 2017, the U.S. essential oil market was valued at $3.36 billion in 2015 21. While

common, essential oils are not regulated by the FDA. They even went as far as to send warning

letters to several popular essential oil distributors in 2014, explaining that the claims that their

products are natural homeopathic alternatives to traditional medicine, was unfounded10. The lack

of regulation in the essential oil industry can mean that the purity or level of dilution of any oil

cannot be confirmed. This rather large unknown variable may leave DeoTech susceptible to

potential lawsuits if a customer has an adverse reaction to any essential oil (or oil compound) in

the product that is not disclosed.

Essential oils are able to be used in essentially any capacity, they’re used in food,

aromatherapy, topical treatments, or even sometimes ingested from the bottle. This has caused

the healthcare industry to look deeper into the effects of essential oils, as they are now being

used without a healthcare provider’s supervision. In an article by Alexandra Sifferlin for Time

Magazine, a case of three boys, all aged ten or younger, “…were identified by a Denver

pediatrician as having unexplained large breasts” in 2007. It was later determined that the boys

had all “regularly used tea tree and lavender oils”15. After research and testing, the oils had

interfered with hormone behavior in cells 15. Once ceasing the use of the products, the boys’

enlarged breasts eventually shrunk back to normal size 15. This finding was echoed in a study by

the Institute of Environmental Health Sciences (NIEHS), where scientists took eight compounds

found in lavender and tea tree oil were applied to human cancer cells, while every compound had

“varying effects”, all engaged in “hormone-disrupting activity”15. These findings are not enough to

suggest that the use of essential oils is definitively harmful, instead Dr. Brent Bauer of the Mayo

Clinic states that “essential oils are shown to be safe when they are used as directed” 15.

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Economic Trends

As discussed in the previous section, DeoBlock has an essential oil component. This is

consistent with the essential oil trend in the United States at the moment. In a study conducted by

Grand View Research, in 2015 the U.S. essential oil market was valued at $3.36 billion, and

between 2016 and 2024 the market is expected to see a growth rate of 9%21. Key drivers of this

growth are considered to be an increase in “consumer disposable incomes and [the] rapid

expansion of food & beverage industries…”21.

DeoTech is wise to have included essential oils into their product, as many other

companies have as well. One report from Business Wire found that “manufacturers worldwide are

enhancing their R&D capabilities to cater to the growing demand for high-quality and pure organic

essential oils”20. This corroborates another finding in the Grand View Research report where

fragrance is “projected to generate the highest product demand” 21.

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Social-Cultural Trends

Aside from your everyday DIY trends, there are currently a couple major social-cultural

trends on the rise that DeoTech should be aware of.

Subscription Boxes

Subscription boxes are the latest

trend right now because of their

convenience, affordability, ease, newness,

personalization, and perks. Actually, 52% of

women say they have monthly box

subscriptions just to discover new products;

while 35% do it to receive high-quality

products for a good price, and 6% don’t need to shop any more 8.

Moreover, 47% of women have at least one monthly box subscription, 27% have two, and

25% have three or more. Based on the results from the Benchmarking Company survey (see

photo above), this could be a good avenue for DeoTech to make a future investment in 8.

(Image Source: Customer Direct Promotions - The Benchmarking Company based on an original survey of 6.412 U.S. women ages 18+

conducted in February 2017.)

Influencers

Brands are starting to switch over to influencer marketing instead of traditional mainstream

marketing. This is because consumers today are looking for the concept of authenticity among

brands and their products. The purpose of a brand influencer is to create awareness, interest,

desire, a call to action, and advocacy among their following network for a specific brand.

➢ Awareness: “…influencers create inspirational content through storytelling to

introduce new products and feature capabilities to followers”11.

➢ Interest: “Influencers answer common questions about the product and services.

➢ Desire: “businesses can start planning offers or promotions exclusively for the

influencers’ followers or subscribers on social media”11.

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➢ Action: “…influencers direct customers to the correct paths and channels to

complete their purchase or further evaluate options (measured in downloads, trials,

demonstrations, inquiries, purchases, etc.) After the prospects transform into

paying clients, it will prove the brand has used its social media channels

successfully”11.

➢ Advocacy: “By leveraging on social media, this sales process can be extended to

the point of turning the customer into an advocate for your product. When

customers engage actively and spread the word, they become great ambassadors

who can continue the brand’s sales cycle automatically”11.

To save DeoTech money on marketing costs but also spread customer awareness about their

product – influencers would be a great avenue to look into. Also, a good point to note is, eighty-

four percent of young people believe brands have more power to make change than the

government. It should come as no surprise, then, that consumers are looking for brands that

parallel their principals11. Therefore, DeoTech should be looking through strategies aligned with

their values and practices instead of solely focusing on creating a unique product.

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Technology Innovations

The deoblock design is innovative, different, and good for the environment. However, the

world is constantly evolving. Even though deoblock looks slightly different than other products

and is eco-friendly, that doesn’t mean this product is ‘better’ than similar products out on the

market or products currently being developed. With that being said, there are a couple technology

innovations DeoTech should be aware of.

Paqsule

Paqsule is an FDA approved, smart, all natural, chemical-free, water-proof, heat-resistant,

self-cleaning bag. One of the co-creators, Ravid Yosef, told Digital Trends the process works by

“first trapping bacteria inside. The owner can then activate the unit, which causes ozone to fill the

bag, killing odor and bacteria instantly. UV-C light acts as an additional layer which sterilize

against viruses and pathogens. Each cycle takes 35 minutes to complete, after which the ozone

converts back to oxygen, leaving the bag and its contents smelling fresh”4.

Currently the actual value of the bag is $350 but is currently selling at a discount for kick

starter for $229. If that seem like a lot of money, this bag is a one-time purchase and does not

require any replacement cartridges or refills. This bag has a rechargeable battery with a life up to

10,000 hours. Paqsule also has a USB charging station and over twenty premium features with

lots of pockets to help organize anything 4.

What DeoTech needs to be cautious of is that Paqsule is also trying to solve the same

problem that they are. People today are attracted to objects that have fancy technology features

and make them look important. However, assuming Paqsule’s target audience is more towards

adult travelers or someone who is always on the go – their company is limited to only their one

bag; whereas DeoTech has the possibilities to be more well-rounded and accommodating

towards consumers needs and every day behaviors.

ClickStick

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ClickStick is the first ‘smart,’ eco-friendly deodorant, created by Volumetric Inc. This

product was funded on Kickstarter with more than 1400 supporters and was first released in May

2016. The creators, Carla Bahri and Gilad Arwatz, graduated from Princeton's mechanical and

aerospace engineering department, which technically means ClickStick was designed by ‘rocket

scientists’.

They saw a problem with personal odors, economic waste, and deodorant stains on

clothing, so they set out to design a product that would take care that. By making the product

reusable with a two-year, rechargeable battery life, and eco-friendly refills, this product can

eliminate up to 90% of waste. Plus, a one-hand push-button applicator that makes everything

easier, reduces stains on clothes, and the internal microprocessor delivers the same, precise

amount every time eliminating the human body’s exposure to aluminum 9.

So why is it called a ‘smart’ deodorant? Well, any smart device needs its own app.

Besides allowing users to order refills, the app advices users on which setting they should use to

adjust the amount delivered with each press of the button, provides reminders, and data on

usage9. Currently, ClickStick is sold for about $32.00 on amazon.

DeoTech should be cautious of this product because of the similar market base and eco-

friendly features. In addition, having seen the advance technology and support this product gain

at the beginning, DeoTech should be keeping watch on how people react to products like this or

even taking the initiative to think ahead of the market.

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Objectives

1.) To determine which consumer segment DeoTech will have the greatest impact on

retaining profitable customers.

2.) To determine DeoTech’s best marketing avenue for reaching their target audience and

converting sales – Billboards, TV Commercial, Social Media, Newspaper, etc…

3.) To determine DeoTech’s target audience habits and/or behaviors that ultimately drive the

demand for deoblock – a “luxury" good.

4.) To determine what features deblock offers which appeal and influence consumers to

purchase DeoTech’s product over another company selling a similar product.

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References

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Minnesota Libraries Publishing, University of Minnesota Libraries Publishing Edition,

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Personal Care, churchdwight.com/company/.

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Apr. 2018, www.youtube.com/watch?v=MSfJZOx-xwE&feature=youtu.be.

4. Dormehl, Luke. “Smart Gym Bag Promises to Clean Itself and Everything inside It.” Digital

Trends, Digital Trends, 23 Mar. 2017, www.digitaltrends.com/cool-tech/paqsule-gym-

bag/.

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2018, www.febreze.com/en-us/products/small-spaces-fresh-twist-cranberry.

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plugins-scented-oil-warmer.

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lsjeuxoeqt%2Ceid-ygcnqnyulq&gtim=CPza4f-

dqIihJhC6s6_7kN2ctYEBGLDRqgMiA1VTRA&utm_campaign=7815&gclid=Cj0KCQjw

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2018-that-all-marketers-should-know-about/.

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essential-oils-safe/. Accessed 29 Sept 2018.

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18. “The DeoBlock™ KickStarter Pitch.” YouTube, YouTube, 1 May 2018,

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Technavio". Businesswire.Com, 2017,

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Impacting-Global-Organic-Essential. Accessed 29 Sept 2018.

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