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

This situation analysis of Old Spice covers its current customers, buying behavior, strengths and weaknesses, partnerships, competitors, and recommendations for future growth and success.

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
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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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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):
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Assignment 2
Situation Analysis
According to Nambiar (2012), the strengths are
1. Distribution channel- its strong distribution channel saves cost and time, gives convenience to
customers, efficient marketing and wider customer reach ensuring faster growth hence, is
strength.
2. Brand presence and advertising- its stronger advertising and brand presence drives more value
growth.
3. Product portfolio- a wider product portfolio has increased its reach to different types of
customers.
List 3 Weaknesses:
1. Intense competition- it limits the brand loyalty of Old Spice and hence, is a weakness.
2. Substitutes- brand image is getting affected with the availability of cheap substitutes and fake
products.
3. Limited target market- it targeting of only young male customers has limited the target market.
This Section deals with what the company/brand needs to become.
How can the company/brand improve its weaknesses and maintain or grow its strengths?
Suggest how the company/brand can improve upon the things it does well and not so well.
According to Melika (2017), Old Spice can improve its weakness by expanding its market
segment by targeting the older male customers, product differentiation, overcoming the threat of
substitutes by improving products quality, performance and affordable pricings while it can
maintain the strengths through consistency, competiveness, uniqueness and gaining audience
knowledge. Old Spice can improve its distribution channel by keeping a track on channel
dealers, and focusing on local markets and geographic segmentation while it can control over the
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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 4 of 9

Assignment 2
Situation Analysis
competitors by knowing well its customers and competition, expanding the offerings and
targeting new markets.
3. Context
Define the current business environment. Include information about political, legal,
economic technological and societal factors that may influence sales.
According to Iglesias, Ind & Alfaro (2013),
Political Environment: Old Spice is abided by rules and regulations of governments like import,
export and exchange favorable policies may influence the sales.
Legal: its failures in obliging with markets rules and regulations like tax policies, antitrust
enforcement, and environmental protection laws etc. may influence the sales.
Economic: grabbing the opportunities of entering into developing markets may generate more
revenues and profits thus, influencing the sales.
Technological: incorporating technological factors in production, distribution and customer
engagement will increase its productivity and effectiveness and may influence sales.
Societal/Socio cultural: products incorporated with attributes improving customers’ social life
besides giving them confidence and beauty has increased the perception towards personal
grooming in men and hence, may influence sales.
4. Collaborators
Define the business partnerships. Does the company/brand have any current partnerships?
What other company/brand may be a good partner for them?
According to Cho, et al., (2018), Current Partnerships:
The brand has currently partnered with Freestyle session 2018 for bringing deodorant at all
future events. Both spectators and fellow competitors had long waited for this partnership. The
event in collaboration with Old Spice hosted ‘Who’s Got the Funk’ on November 11th at the
© 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.
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Assignment 2
Situation Analysis
Freestyle Session world finals, competition of bboy/bgirl with Nastiest and ‘Most Foul Flavor,
giving the winners cash prize of $500 and Old Spice deodorant supply for a year.
Proposed Partnerships:
For implementing its product expansion strategy to target female customers, Old Spice can
partnership with Veet for selling its hair removal creams, perfumes, deodorants and waxes
worldwide.
5. Competitors
Who are the main competitors? Label and discuss the top three competitors and why you
consider them a competitor.
Competitor 1: Axe is considered as competitor because of similar market segmentation, target
markets for product like deodorants in the US market
Competitor 2: Gillette is considered Old Spice’s competitor in shaving creams with similar
pricing, supply and distribution, and targeting similar demographic and physiographic
Competitor 3: Right Guard is considered competitor for Old Spice in deodorant and shower gel
with similar target customers in age group of 18-34, partnerships, product promotions and
marketing. Rezaei, Ortt, & Trott (2018)
6. Recommendations
Based upon the analysis you just completed in this worksheet, what are three (3) key
recommendations that you could pass along to Management regarding the future direction
of the company you selected? Discuss why you have created these strategies and why you
think they should be undertaken and work for the business.
1. Recommendation #1 and the Defense of the Recommendation:
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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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Assignment 2
Situation Analysis
Product expansion strategy for targeting female customers will help Old Spice to grow its
business and generate more revenues. This strategy will work as female customers are more
aware and conscious about their personal hygiene and grooming.
2. Recommendation #2 and the Defense of the Recommendation:
Spreading awareness about men hygiene strategy in collaboration popular men’s magazine like
Men’s Health with will help Old Spice increase its sales. It will work because it will enhance
brand awareness.
3. Recommendation #3 and the Defense of the Recommendation:
Introducing Skin care products (face wash, moisturizers, sun blocker cream) for men will also
increase sales and this strategy will work since more urban men are today conscious about their
skin and looks.
References
Bano, S., & Mohd Sharif, M. A. (2016). Metrosexual: Emerging and lucrative segment for
marketers. International Review of Management and Marketing, 6(4) doi:
https://search.proquest.com/docview/1796230209?accountid=30552 [ Accessed on 21
November, 2018]
Cho, M., Bonn, M. A., Su, J. H., & Kang, S. (2018). Partnership strength and diversity with
suppliers. International Journal of Contemporary Hospitality Management, 30(3), 1526-
1544. doi: http://dx.doi.org/10.1108/IJCHM-01-2017-0016 [ Accessed on 21 Novmber, 2018]
Chopra, S. (2016). How omni-channel can be the future of retailing. Decision, 43(2), 135-144.
doi: http://dx.doi.org/10.1007/s40622-015-0118-9 [ Accessed on 21 November, 2018]
Iglesias, O., Ind, N., & Alfaro, M. (2013). The organic view of the brand: A brand value co-
creation model. Journal of Brand Management, 20(8), 670-688. doi:
http://dx.doi.org/10.1057/bm.2013.8 [ Accessed on 21 Novmber, 2018]
© 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 7 of 9

Assignment 2
Situation Analysis
Jha, G., & Banerjee, J. (2013). Opportunities and challenges for FMCG companies in
india. Anusandhanika, 5(1), 35-43. doi:
https://search.proquest.com/docview/1650906828?accountid=30552 [ Accessed on 21
November, 2018]
Melika, S. S. (2017). Study the role of electronic marketing on business performance with
emphasis on the role of market orientation. International Review of Management and
Marketing, 7(3) doi: https://search.proquest.com/docview/1984682929?accountid=30552
[ Accessed on 21 Novmber, 2018]
Mitchell, V. W., & Lodhia, A. (2017). Understanding the metrosexual and spornosexual as a
segment for retailers. International Journal of Retail & Distribution Management, 45(4),
349-365. doi: http://dx.doi.org/10.1108/IJRDM-05-2016-0080 [ Accessed on 21
November, 2018]
Nambiar, B. K. (2012). Applied case studies in marketing. SCMS Journal of Indian
Management, 9(2), 117-119. doi: https://search.proquest.com/docview/1536045159?
accountid=30552 [ Accessed on 21 November, 2018]
Rezaei, J., Ortt, R., & Trott, P. (2018). Supply chain drivers, partnerships and performance of
high-tech SMEs. International Journal of Productivity and Performance
Management, 67(4), 629-653. doi: http://dx.doi.org/10.1108/IJPPM-01-2017-0017 [
Accessed on 21 Novmber, 2018]
Stone, M., Aravopoulou, E., Gerardi, G., Todeva, E., Weinzierl, L., Laughlin, P., & Stott, R.
(2017). How platforms are transforming customer information management. The Bottom
Line, 30(3), 216-235. doi: https://search.proquest.com/docview/1963075316?
accountid=30552 [ Accessed on 21 November, 2018]
© 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.
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Assignment 2
Situation Analysis
© 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.
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