Analysis of Unilever's Axe Deodorant Marketing Strategy Report

This report analyzes Unilever's marketing strategy, specifically focusing on the introduction of Axe Bullet deodorant through Woolworths supermarkets in Australia. It details Unilever's company structure, product segments, and competitive landscape, highlighting Nestle and Procter & Gamble as major rivals. The report emphasizes Axe's target market of young males aged 16-30 and examines the brand's successful marketing mix, including pricing strategies and promotional campaigns like 'The Axe Effect.' Ultimately, the report concludes that Woolworths' inclusion of Axe Bullet deodorants would be beneficial due to Axe's established brand reputation and targeted marketing efforts, requiring minimal additional promotional investment. The document is available on Desklib, a platform offering a range of study tools and resources for students.

Running head: MARKETING PRINCIPLE
MARKETING PRINCIPLE
Name of the Student
Name of the University
Author Note

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Executive Summary
The primary objective of the report is to discuss the case of Unilever and analyze the ways by
which the company has been performing and dealing with the introduction of new deodorant of
Axe. After through analyzing of the organization, it has been found that the company lags in
certain areas like connectivity that is why it has been recommended to create a technological
connectivity along with the management of the organization. The report would further explain
the sales, growth and other major competitors that are avaible in the market and how they do
business.

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Table of Contents
Introduction......................................................................................................................................3
Company Summary.........................................................................................................................3
Product Segment Summary.............................................................................................................4
New Product Rationale....................................................................................................................5
Target Customer Description...........................................................................................................5
Marketing Mix Strategy...................................................................................................................6
Conclusion.......................................................................................................................................6

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Introduction
The following report is on the Australian supermarket business Woolworths that has its
products supplied by the multinational organization, Unilever. From the business standpoint,
Woolworths and Unilever are in partnerships for a long time. Many of the products are already
under the shopping sections of the Woolworths outlets. In this assessment, Unilever has planned
to introduce a new range of deodorant products that would be featured in the different
supermarket outlets of Woolworths. Therefore, Woolworth is planning to introduce new
measures based on the target customers and the strategies that would be used to promote the
product so that sales can increase. The product selected for this report is Axe Bullet that is a new
addition to the collection of body deodorants from Axe. The report also highlights the ways
Woolworths can promote this new product to its targeted customers.
Company Summary
Unilever is an international company that is also one of the world largest company that
deals with consumer goods. The company is over than 85 years old that has into branches
throughout different major cities across the world. The company owns over than 400 brand
worldwide with a turnover rate of over 50 billion euros (Alssema et al. 2015). Some of the
popular products that Unilever deals with Woolworths include Dove, Lipton, Lux, Sunsilk and
Surf and many more products (Battersby and Peyton 2014). The company is divided into four
major divisions of products that include food products, home care products, personal care
products and beverages. Out of these most of the profit is from the personal care products as of
2013, the company had a total turnover of around 50 billion out of which 36% of the profit was

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from personal care. The company also spends a huge capital on research and development of
products. Unilever has introduced a variety of products over the years which has been exception
in the Australian market when they were sold through Woolworths. As the supermarket chain is
well reputed it holds a huge trust factor amongst the common Australian consumers, it has a
huge profit rate. Consumers normally tend to buy products from services they trust and as
Woolworth hold the trust factor; Unilever would sell its products through its channels in a bulk
quantity.
Product Segment Summary
Unilever is organized into four major division that includes food, home care products,
personal care products and beverages. Food products include varieties of soups, bouillons,
snacks and different of toppings that would include sauces, mayonnaises, margarines and many
more. Home care products include powders, different types of liquid for washing, cleaning
products and even soaps. Personal care would include skin care products like moisturizers and
hair products like shampoos, scents and body deodorants and oral products like toothpaste and
mouthwash and beverages include various kinds of refreshments such as ice creams and soft
drinks (Nazarova 2015). In Australia, Woolworths is already the leading supermarket chain and
the products of Unilever brought a lot of turnover. It is also known that Woolworths provide
various loyalty schemes for its customers, which would include online shopping and home
delivery and as the products of Unilever are basically day to day used products, the sales rate of
these products specially are higher than the rest. The current statistical update shows that the
sales rate of Unilever grew to a 3.5% increase from the year of 2017which reflected good
performance in market. As of February 2018, there was a fourth-quarter sales growth in the

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company that accelerated the performance in emerging markets which made sure that Unilever
ended their year at a high note. Regarding the competition of the company, Unilever faces
competition from its two major rivals Nestle and Procter & Gamble. There are also local market
competition from ConAgra, Danone, Henkel, Mars, PepsiCo Johnson & Sons and many more.
Regarding the market share, as of 2016 the gross market share of the company is at a 49.6%
worldwide.
New Product Rationale
In the Australian market, the new product that Unilever has launched at Woolworths
includes the body deodorant Axe Bullet. Axe is also known as Lynx in some countries. Unilever
launched the product in the year of 1983, and therefore Woolworth already has implemented the
various range of Axe deodorants it in the Australian supermarket. However this new product,
Axe Bullet will be introduced into the various supermarket chains of Woolworths (Mortimer
2017). The deodorant built quality is smaller than the normal Axe deodorants. The shape of the
deodorant resembles that of a bullet for which it has been given that name. The product has a
wonderful appeal to it which is unique than its previous containers. The new deodorant from Axe
also provides a lighter and sweeter small than the previous versions whoever there is not too
much difference in the smell. What Axe has made a significant change is the appeal of the
product and a it is smaller in size compared to the rest of the deodorants, it is also pocket friendly
for the consumers.
Target Customer Description

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The target market for Axe is normally the young male ranging from the age of 16-30.
Axe is a revolutionary deodorant that had taken the industry of deodorants by storm since the
90s. Axe as a company has targeted the same audience over and over again, and to much of a
surprise, it us the teenage audience that actually buys the product the most. This brand actually
directly speaks to the audience that this product would create a sexual tension between the
consumer and an attractive opposite sex (Srinivasan and Lu 2014). The advertisements also
promoted by Axe show the same elements of masculine sexuality that draws a huge population
of the young male audience into buying the product. Many people have labeled this product as a
‘trap’ for the young gullible male audience into buying each new deodorant from Axe however,
that is actually the power of promotion, brand and the marketing mix (Palermo et al. 2016). If
promotion and advertisement is used correctly, a brand would be able to sell any product to
anyone, and Axe is one of the biggest example of such.
Marketing Mix Strategy
Axe already has a huge audience base throughout the world. Due to the high reputation of
the brand, Unilever has taken many steps over the years, both in urban areas and rural areas.
However what actually Axe different as a product is the pricing (Benmiled-Cherif, Kaufmann
and Manarioti 2016). For example in this case Axe Bullet, it is sold in a bundle, that is if a
deodorant of 150ml is sold at 5 AUD then Axe would provide two deodorants in one package for
7 AUD. What makes Axe unique and popular is not the various range of products it provides but
the smartly done price. That is not only makes it affordable but also increases the sales count
from the company’s end without making the customer worry. On top of that, Axe has included
various campaigns both online and offline (Trevena et al. 2014). For Woolworths, as it is already

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the most reputed supermarket chains in Australia, Unilever would provide many. Axe has used
many promotional methods such as tagline ‘The Axe Effect” in advertisements that has been an
USP towards the business (axe.com 2018). The products are successful in the market because of
its impressive and unique campaign. The Axe deodorants have became so popular that the
campaign ensures everyone should try it at least once, even if they are loyal to a different brand.
With sensuous elements in place, the advertisements show men who are shown to use the
deodorant and attract beautiful women with the means of this product.
Conclusion
Therefore, from the above discussion, it can be concluded that when Woolworths would
include the deodorants of Axe Bullet from the company or their partner, Unilever, it would be
beneficial for the company. As Woolworth deals with personal care based items of Unilever,
such as body care products like deodorants, soaps, shampoos, this states that Woolworths already
have a separate section for the newly launched Axe Bullet. As the product is well known to the
target audience, Woolworth will not have to spend too much capital on its promotion. Just a few
advertisements on the internet would be sufficient to draw the young male audience in buying
the product. As mentioned before, being a small product, which comes in a bundle package, it
would easily make a lot of sales as it is really portable and can be carried anywhere.

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