P E S T E L

Analysis of Rexona: Identifying Key Opportunities and Threats

IBU2109022 - YEO XIAO WEI
IBU2109703 - KHOO ZIE MIN
IBU2109861 - CLARISSA MICHELLE AURELIA
IBU2109863 - CONSTANTIN TRISTAN VALEN
IBU2109867 - HADI EVELINE LAURENCIA
IBU2109868 - HARIYONO YEMIMA VICTORIA
IBU2109869 - HARTANTIO FILBERT
 Get to Know Rexona
Originally created by Australian
physician Alice Sheffer in 1908,
became a top-selling product
for the Sheldon Drug Company,
led by her husband SF Sheffer.
In the 1930s, it was acquired by
Lever Brothers (later part of
Unilever) to expand its global
reach. Rexona was introduced
globally in the 1980s under
various brand names like Sure,
Degree, Shield, and Rexena.
In 2021, Rexona relaunched its
core range with patented body-
responsive technology, offering
72 hours of sweat and odor
protection. Today, Rexona is the
world's No.1 antiperspirant and
deodorant brand, available in
over 100 countries, and
generates over €2 billion in
annual turnover. This success
showcases Rexona's commitment
to innovation and meeting
consumer expectations.
 Pestel Framework

What is PESTEL framework is a strategic analysis tool organizations

use to assess and analyze the factors that can impact their
PESTEL business. PESTEL stands for Political, Economic, Socio-
cultural, Technological, Environmental, and Legal
FRAMEWORK ?? factors.

The use of
PESTEL analysis offers valuable insights into external factors,
applicable to businesses of all sizes and across various situations. PESTEL
It aids professionals and senior managers in identifying macro- in diverse business
environmental trends, enabling businesses to seize opportunities
and mitigate threats effectively.
ENVIRONMENT
Political Factors Technological Factors
Political factors relate to the political interactions Technological factors are tech-related developments,
between governments, countries, and various shifts, and patterns that could directly or indirectly
political actors. Influence of tax guidelines, stability impact your business. Example: technological
of government, trade policies, leadership, foreign advancements, innovations in product development
trade policies, internal political issues and trends, and
tax policy.
Environmental Factors
Economic Factors Environmental or ecological factors look at the impact of
businesses on the environment and how the environment
Key economic elements within the business environment might affect the business. Example: sustainability
that can impact your organization. Example: exchange practices. Environmental regulations, consumer
rates, economic growth, and consumer spending trends. preferences.

Socio-cultural Factors Legal Factors

Social factors or sociocultural factors define group
consumer behavior and thinking. They can include
quantitative, such as average age, and qualitative
data, such as opinions. Example: cultural preferences,
consumer lifestyles, demographic trends.
Legal factors are current laws, regulations, and bills
that may affect the organization’s operations and
future plans. Example: intellectual property laws,
product safety regulations, labor laws.
 Political Factors
Influence of Tax
Higher taxes on raw materials or finished products can
increase production costs and potentially lead to higher retail
prices. Tax incentives for using environmentally friendly
materials and processes encourage Rexona to adopt more
sustainable practices.
Stability of Government
A stable government ensures a predictable regulatory
environment, which is essential for long-term planning and
investments. Political instability can disrupt supply chains,
impact consumer confidence, and create uncertainty for
businesses.
Safety Regulations
Deodorant is a personal care product, and safety regulations are
critical to ensure product safety and consumer well-being. It is
essential to avoid recalls, lawsuits, and damage to the brand's
reputation. Rexona which goes above and beyond safety
standards may gain a competitive advantage by building trust with
consumers.
Labor Laws
Labor laws impact employment practices and labor costs.
Regulations related to minimum wage, working conditions, and
employee benefits can affect the cost structure of manufacturing
and distribution. Compliance with labor laws is essential to avoid
legal issues and maintain a positive brand image.
 Economic Factors
Deodorant Revenue
Revenue in the Deodorants market amounts to US$149.50 M in 2023. The market is expected to
grow annually by 2.48% until reaching US$169 M in 2028. In relation to total population figures,
per person averagely spent a total of US$4.36 in 2023

Exchange Rates
Rexona Malaysia is imported from Australia which makes the imported products more expensive
since Ringgit is depreciating against the Australian Dollar
Rexona Men Antiperspirant Aerosol Deodorant Original 250ml cost 3 AUD/9 RM while in
Malaysia it sold for 23.75 RM

Purchase Trends

430 out of 680 Malaysians employ deodorant with some of them using Rexona. Compared to
Indonesia, per person only averagely spent a total of US$0,5 in 2023
 Socio-cultural Factors

Cultural Preferences Health Gender Roles & Consumer Ethical & Sustainable
and Norms Consciousness Expectations Lifestyles Practices

Cultural attitudes and Increasing awareness of Societal perceptions of Busy and active lifestyles Modern consumers
preferences towards health and wellness has gender roles influence the drive the demand for increasingly consider the
personal hygiene and driven the demand for type and formulation of long-lasting, effective environmental and ethical
grooming significantly products that promote personal care products. antiperspirants and impacts of their
influence the demand for hygiene and health. Rexona tailors its products deodorants. Rexona purchases. Rexona
Rexona products. Different Rexona, as a brand, taps to meet the specific needs focuses on products that responds by incorporating
cultures have varying into this trend by and expectations of both
cater to individuals with sustainability practices
expectations regarding emphasizing the men and women, aligning
active lifestyles, aiming to into their manufacturing
personal care, fragrance importance of cleanliness with changing gender
provide all-day freshness processes, sourcing, and
preferences, and overall and freshness to attract norms and preferences.
and confidence. packaging, appealing to
product effectiveness. health-conscious
eco-conscious consumers.
consumers.
 Technological Factors
Technological advancements play a
pivotal role in shaping Rexona's
operations in Malaysia. In today's fast-
paced world, staying at the forefront of
technology is not just an advantage but a
necessity for maintaining a competitive
edge in the personal care industry
Innovation and Product Development
Technological advancements enable Rexona to continually innovate and develop new
formulations for their products. This includes advanced ingredients, improved fragrances, and
longer-lasting effects, aligning with changing consumer expectations and preferences.
Research and Development
Ongoing research and development efforts are vital to create products that effectively
combat body odor and perspiration. Rexona invests in R&D to stay ahead of competitors and
meet evolving consumer needs.
Manufacturing Efficiency
Technological advancements in manufacturing processes enhance efficiency, reduce
production costs, and improve product quality. Rexona leverages these advancements to
maintain competitive pricing while ensuring high-quality products.
 Technological Factors

E-commerce and Digital

Marketing Supply Chain Optimization

E-commerce and digital marketing channels
provides Rexona with new avenues to reach
consumers directly, offer promotions, and
gather valuable consumer insights. Online
platforms also allow for targeted marketing
based on consumer preferences and behavior.
Technological tools facilitate supply chain
management, ensuring timely and efficient
distribution of Rexona products to various
markets. This optimization helps meet consumer
demand and enhances overall customer
satisfaction.
 Environmental Factors
Sustainability
Increasing consumer concern about environmental sustainability may require Rexona to adopt eco-
friendly practices in manufacturing and packaging.
Include using sustainable materials, reducing energy consumption, and minimizing waste during
production.

Climate Change
Climate-related events can impact supply chains, affecting the availability of raw materials lead to
shortages of key ingredients or delays in production.
To mitigate these risks, Rexona may need to diversify its supplier base or develop contingency plans for
supply chain disruptions caused by climate-related events.

Regulations
Environmental regulations related to product ingredients and waste management may affect Rexona
operations.
Governments and regulatory bodies may impose restrictions on certain chemicals or require specific
disposal methods for packaging and waste.
 Legal Factors
Regulatory Compliance
Adhering to local and international regulations on
product safety and labeling is critical for Rexona.
Failure to comply with these regulations can lead to
product recalls, lawsuits, and damage to the brand's
reputation. It's essential for the company to invest in
thorough testing and quality control processes to
ensure that their products meet all regulatory
requirements.
Proper labeling is also crucial to provide consumers
with accurate information about the product's
ingredients and usage.
Intellectual Property
Protecting trademarks and patents is essential for
Rexona to prevent imitation by competitors.
Without proper protection, other companies may
produce similar products with similar branding,
leading to brand confusion and market dilution.
Rexona must monitor its intellectual property
rights and take legal action against any
infringement to safeguard its unique product
formulations and brand identity.
 Key Opportunities in Malaysia

Growing Market Demand Technological Advancements

Rexona can benefit from the rising demand for Adoption of innovative technologies can
personal care products in Malaysia. enhance efficiency and product development.

Consumer Awareness Sustainability Initiatives

Increased awareness of personal hygiene Rexona can align with environmental

presents opportunities for Rexona to promote its consciousness by using eco-friendly practices
products. and packaging.

Market Expansion Partnerships & Collaborations

Rexona can expand its product range to cater to Collaborations with local influencers can boost
specific Malaysian consumer preferences. Rexona's brand visibility and engagement.
 Key Threats in Malaysia

Regulatory Challenges Changing Consumer Preferences

Rexona may face challenges due to evolving Rapid shifts in consumer preferences require
regulations in Malaysia's personal care product Rexona to adapt its product offerings.
industry.

Competition Environmental Regulations

Competition from both local and international Strict environmental regulations may affect
brands is a potential threat to Rexona's market Rexona's production processes and packaging
share. choices.

Economic Uncertainty Supply Chain Disruptions

Economic fluctuations can impact consumer Global events can disrupt supply chains,
spending, necessitating agile pricing and requiring contingency plans to ensure product
marketing strategies. availability.
 Recommendation
Political Technological
Rexona needs to stay updated on
regulations and standards related to
personal care products in target markets.
P T Invest in research and development to
explore sustainable packaging options and
eco-friendly production technologies.

Economic Environmental
Rexona should monitor economic trends
and consumer spending patterns,
especially during economic downturns.
E E
Transition to eco-friendly packaging materials
promotes recycling initiatives and commits to
sustainability by reducing the environmental
footprint of products and operations.

Sociocultural
Continuously research and understand evolving
consumer preferences and values and invest in
marketing campaigns that emphasize the
S L
importance of personal hygiene and confidence.
Legal
Stay informed about emerging legal
requirements related to cosmetics and personal
care products and protect intellectual property
and trademarks to maintain brand integrity.
 Conclusion
In a dynamic market environment, Rexona's proactive planning and adaptability are paramount
for success. By staying ahead of political, economic, sociocultural, technological, environmental,
and legal changes, Rexona can mitigate risks and capitalize on opportunities. The personal care
industry is highly competitive, and Rexona's ability to respond effectively to external factors will
determine its long-term relevance and market position. Continuous monitoring and agile decision-
making will enable Rexona to navigate uncertainties and maintain consumer trust.
In conclusion, Rexona's commitment to staying informed and adaptable is the key to not only
surviving but also thriving in a rapidly evolving industry. By leveraging the insights gained from
our PESTEL analysis, Rexona can chart a course toward sustainable growth and continued
success.
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