EXTENDING THE AXE EFFECT TO AXE SOAP BAR

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Brand Management_SECTION A

HINDUSTAN UNILEVER – Quick Facts

HOME CARE

• RIN• COMFORT FABRIC CONDITIONER• VIM• SURF EXCEL• ACTIV WHEEL• CIF• DOMEX• MAGIC• SUNLIGHT

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• AXE ELLE 18• POND’S TRESEMME• LAKME REXONA• LUX VASELINE• HAMAM CLEAR• PEARS LEVER AYUSH• CLINIC PLUS LIRIL 2000• DOVE BREEZE• PEPSODENT SURE• LIFEBUOY TIGI• SUNSILK TONY & GUY• CLOSEUP

FOOD & DRINK

• KISSAN• MAGNUM• BRU• BROOKE BOND RED LABEL• BROOKE BOND TAJ MAHAL• BROOKE BOND 3 ROSES• MODERN• KWALITY WALL’S• LIPTON• ANNAPURNA• BROOKE BOND TAAZA• PUREIT (Water Care*)

HUL BRANDS

SOCIAL INITIATIVES LIFEBUOY TREE OF LIFE SURF EXCEL LENDS A HELPING HAND HANDWASHING WITH LIFEBUOY SURF EXCEL KEEP INDIA CLEAN UNILEVER + FACEBOOK WATERWORKS

DEODORANT MARKET IN INDIA

986 varieties of deos (from 500 brands) are sold across Indian markets, with as many as 103 recent launches

2300 crore Deodorant market is growing at around 18 % annually Growth in rural markets that account for a tenth of Deo sales, is 29 % Male deodorants contribute 69% to total sales

2009 20140

5001000150020002500

Deo Market Growth (INR Crores) NielsenDeo Market Growth

11%

7%

6%6%

69%

Market Share 2014FOGG ENGAGE AXEWILDSTONE OTHERS

AXE – 3RD LARGESTSource: Euromonitor

THE AXE BRAND Launched in India in 1999 as a deodorant only brand Market size of deodorant in 1999 – 72 crore Positioned as a male deo brand at a premium price Target Segment – High on confidence | 16-25 year

males

BRAND CORE VALUESCool | Fashionable |

Stylish

Men love to be seduced, which boosts their self confidence

MARKET STATISTICS

• AXE had a market share of 35 % in 2002 and continued to be the market leader till 2013

2010 2011 2012 2013 20140

10

20

30

AXE Market Share (% Value)AXE Market Share

Entry of domestic players offering deos on similar sensual themes – diluting differentiation

Source: Euromonitor

EXTENSION TO SOAP CATEGORY

2012

• By 2012, AXE Deo started to face immense competition from domestic brands

• Its positioning of the deo was challenged by other brands – which positioned their deo’s on similar lines

2012

• India is the only country where HUL has launched premium bathing bars

• Tagline : Engineered for guys• Axe shower soap is targeted at the

affluent young male• This extension filled the men’s soap

slot

INDIAN SOAP INDUSTRY• Bath & shower was an INR 166.4 Billion industry by 2014, with 13%

growth showed in 2013• Hindustan Unilever Ltd is the leader with 47% value share• Bath and shower is expected to grow at value CAGR of 4% at constant

2013 prices to reach INR203.4 billion in 2018

2008 2009 2010 2011 2012 20130

20000400006000080000

100000120000140000160000

BAR SOAP SALES (INR Million)BAR SOAP

2008 2009 2010 2011 2012 20130.85

0.9

0.95

1

1.05

Sales of Premium Shower & Bath (% Retail Value)

Sales of Premium Shower & Bath (% Retail Value)

Source: Euromonitor Source: Euromonitor

AXE BAR SOAPHUL has been the leader in the shower and bath soap category ever since 2009

2009 2010 2011 2012 201345

46

47

48

49

50

51

HUL M arke t Share (% Re t ai l Value )

HUL Market Share (% Retail Value) Brand Share of AXE in the Premium Bath & Shower Soap Category :

2012 – 2.1% | 2013 – 2.4%Highest in the Premium Category

2013 2014 2015 2016 2017 20180.9

0.95

1

1.05

1.1

1.15

Fore cas t Sale s of PREM IUM Bath & Showe r Soap (% Value )

Forecast Sales of Bath & Shower Soap (% Value)

Though the premium segment soap category has not clicked with

the Indian men – owing to their price sensitivity, the future

suggests minor improvements in the sales of this category.

AXE being the leader, has good potential in this segment.

Source: Euromonitor

MARKET SEGMENTATION

DEMOGRAPHICS• Urban Indian men

PSYCHOGRAPHICAL• Axe with its bold and urban sex appeal, targets the male

segment allowing them to turn into ambrosial Romeos, with its bold appeal and promotions

• Targeting males by spurring the male fantasy

BEHAVIOURAL• Consumers loyal to AXE Deos• Premium price paying consumers

MARKETING MIX

An extension to the bold AXE brand – AXE Soap

receives it bold factor from the parent brand mantra

An addition to the premium men’s grooming category, AXE Soap targets the male youth segment willing to make a bold statement

Filled the need of “men’s soap” category

Priced at INR35 for a 90 gm. pack, Axe soap is targeted at the affluent young male

The AXE Bar Soap has primarily crafted all its promotional

strategies that essentially appeal to the ultimate - and perhaps unattainable - male fantasy.

AXE carries with itself a bold image and hence the soap’s

advertisements, communications et al revolve

around an insecure novice since he needs the most help in

getting women, and would be easily persuaded into buying a

product that could aid the woes of nerd hood

Targeted at the urban male – AXE soap is

marketed in the urban retail stores,

ecommerce sites, chemists etc.

TARGET SEGMENT CHARACTERISTICS

Outgoing urban male

Premium segmentspenders

Youth believing in passive seduction

Insecure novice; bolstering the ultimate male

fantasy

Banked on sexual fantasies of males

The AXE Bar Soap has primarily crafted all its promotional strategies that essentially

appeal to the ultimate - and perhaps unattainable - male fantasy.

AXE carries with itself a bold image and hence the soap’s advertisements,

communications et al revolve around an insecure novice since he needs the most

help in getting women, and would be easily persuaded into buying a product that could

aid the woes of nerd hood.

COMPETITION – Premium Bar Category

VS

COMPETITIVE FRAME OF REFERENCE

PREMIUM SOAP

CATEGORY

MALE GROOMING SEGMENT

The male grooming space in India is pegged to be worth 1,500 crore which includes deodorants, creams and gels among others.

The soaps market itself is showing rapid growth. The Indian soap market is worth some 6,500 crore and two brands from the HUL stable - Lux and Lifebuoy - occupy the top slots. While Lux was always been positioned as a brand for the fairer sex, the over 100-year-old Lifebuoy at one time had very male-led imagery.

The premium men’s soap segment was untouched in the Indian market & Axe found it could be the best fit for filling the gap.

Axe bathing bar has the tagline " Engineered for Guys ". The ad campaign follows the same theme as the Axe Deo brand.

POINTS OF PARITY & DIFFERENCEPrimary Competitors : Raymond’s Park Avenue | Godrej Cinthol | ITC Fiama Di Wills

• Premium packaging• Deodorant soap• Premium price• Classy grooming

brand

Premium male only soap

Makes a bold

manly statement

Make men feel special using a bold

tagline

Leverage the

parent brand’s image

POP – Big circlePOD – Smaller circles

REFERENCES

• http://www.hul.co.in/mediacentre/newsandfeatures/2012/HUL-launches-Axe-Soap-Bar-for-Men.aspx• http://

www.hul.co.in/Images/12Aug17-ET-Axe-struts-into-the-mens-soap-space_tcm114-303278.pdf• http://

www.thehindubusinessline.com/marketing/huls-plan-to-enhance-the-axe-effect/article3559246.ece• http://www.portal.euromonitor.com• http://

www.businessinsider.com/axe-advertising-unilever-brandwashed-2011-10?IR=T