Old Spice Situation Analysis: Customers, Company, Context, Collaborators, Competitors, and Recommendations

Assignment 2
Situation Analysis
Based on what you’ve learned so far in this course, regarding the 5 Cs, 4Ps, and STP, complete
the assessment questions below. Submit the completed template in the Week 10 assignment
submission link.
Name:
Professor’s Name:
Course Title:
Date:
Company/Brand Selected (Old Spice):
1. Customers
Who are the current customers/users? Include information related to demographics,
psychographics and buying behavior, price sensitivity, customer satisfaction and loyalty.
According to Mitchell & Lodhia (2017), drug and departmental stores, supermarket chains, Pop
& Moms store, hotel chains, and distributors are the current customers Old Spice, which in retail
segment mainly targets men within the age group of 12-34 years living primarily in urban and
suburban areas, who shop for personal grooming, having active lifestyle and are outgoing and
confident. For enhancing and enriching their customer experience the brand works in
collaboration with their customers. The brand targets its customers based on the demographics
factors like age, income (low income, middle income, and high income), life cycle (single,
married, divorced), and occupations (young professionals, high school and college students)
besides focusing on psychographics factors like lifestyle (sociable, unsociable, outdoor-oriented)
and personality (extrovert, fashion-oriented, trendy). Females in a relationship are also targeted
since they influence the purchase decisions of men. Buying behavior of Old Spice customers are
influenced by cultural factors affecting their basic needs. Appearance or body care is valued by
young men across most cultures. The young American males according to Bano & Mohd Sharif
(2016), prefer being stylish, smell good and prove their manliness, a reason behind choosing Old
Spice. Moreover, their buying behaviors are also influenced by social factors like groups and
social networks, families, roles and status; personal factors like age, occupation and lifestyle
(young males preferring going to bars and parties and gaining popularity), economic situation
(external factors are not always the concern for customers with low-income, majority of young
© 2018 Strayer University.All Rights Reserved. This document contains Strayer University confidential and proprietary information
and may not be copied, further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of
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MKT 100Assignment 21186 (6-13-2018) Page 1 of 9

Assignment 2
Situation Analysis
males with medium and high income can afford Old Spice), personality (outgoing and socially
confident, enthusiastic and fashionable males). All products of Old Spice are easily available in
local stores at different quantities priced reasonably for targeting both high and low income
customers. Retailing stores being the main customers provides wide exposure to the brand hence,
customers are not sensitive towards the pricing. Old Spice has an extremely loyal customer base
and a high customer satisfaction level as a long standing brand.
What do the customers buy/use?
Body Sprays of Old Spice remains key to the brand, helping it in remaining one of the mass
markets male grooming sprays best sellers worldwide followed by fragrances and styling
products, antiperspirant & deodorants.
What changes can the company/brand expect in the future? How can the company/brand
better serve its customers?
Presently, the image created by the Old Spice is in sync with current trends of how men
grooming is perceived globally. Its shaving cream product has recorded an increase in annual
growth of only 2% in past five years while men’s skin care in the same period has seen an
increase of 5%. With increasing trend of purchasing a wider array of grooming products by men,
the current demand of its products is high. The image of Old Spice has changed since it first
came to shelves, having long had been associated with elderly gentlemen. According to Stone, et
al., (2017), it’s Old Spice and Widen + Kennedy’s Old Spice Swagger campaign transformed
completely the brand’s face and customers to compete with competitors like Axe shifting their
target to young men between the ages of 18-34. They rebranded and re-launched “Glacial Falls”
with a new, awesome name and attitude – Swagger as “The Scent That Makes a Difference,”
featured in traditional print, television, YouTube and through online campaigning
SwaggeriszeMe.com was a huge success further doubling the sales. With beards coming back
into fashion, the average number of times men shave a week has fallen from 3.7 to 3.2 in
developed markets, totaling two fewer shaves a month. According to Chopra (2016), despite the
slowdown being minor, in past three years the sales in US has witnessed a decline, which means
© 2018 Strayer University.All Rights Reserved. This document contains Strayer University confidential and proprietary information
and may not be copied, further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of
Strayer University.
MKT 100Assignment 21186 (6-13-2018) Page 2 of 9

Assignment 2
Situation Analysis
in future Old Spice can expect bad news for its shaving creams and after shave products. Old
Spice can better serve customers by starting its online club to encourage customers sharing their
expectations and feedbacks, reducing at least 20% prices of less selling products and launching
wider marketing campaign to win back customers.
Opportunities:
According to Jha & Banerjee (2013), the opportunities are
1. Developing market- expansion into developing markets will generate more revenues.
2. Continuous innovation- improving product quality, inventory and supply chain and customer
engagement will increase brand loyalties.
3. New product lines- targeting female customers through personal grooming products will
increase sales.
Threats:
1. Competitors- similar market demographics are targeted by Lanxe, Divea & Axe
2. Shift towards smaller brands- younger consumers are inclining towards small/local brands and
monthly subscription services like Birchbox.
3. Lawsuits- current open class action lawsuit against Old Spice product Grasha is a threat to the
brand and can decrease market share and revenues
2. Company
This Section Discusses what the brand is currently.
Identify strengths and weaknesses of the company/brand as it exists today, providing at
least 3 strengths and 3 weaknesses. What does the company/brand do well and not so well
at this very moment?
List 3 Strengths (Make sure you label why you call each item Strength):
© 2018 Strayer University.All Rights Reserved. This document contains Strayer University confidential and proprietary information
and may not be copied, further distributed, or otherwise disclosed in whole or in part, without the expressed written permission of
Strayer University.
MKT 100Assignment 21186 (6-13-2018) Page 3 of 9