Brut Sales Promotion Plan

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    Presented byMatt Kelly, Emily Fuller

    Pat Stevenson, Mike Sheldon

    and Alec Joseph

    Sales and Sales Promotion

    Professor Kurt Komaromi

    Fall 2013

    THE ESSENCE

    OF MANA PROMOTIONAL PLAN FOR BRUT

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    PRODUCT HISTORYA TIMELINE OF BRUTS PAST

    1964Brut splashed on to the market when

    it was launched by Faberge. The brand

    quickly extended beyond cologne into

    other products such as aftershave and

    deodorant. The original Brut was pack-aged in a distinctive green glass bottle.

    2003Rights to the Brut brand were purchased

    by Idelle Labroatories for several regions.

    Idelle continues to own the company

    today.

    1989Heath and beauty products powerhouse,

    Unilever, took over Brut. Unilever kept

    the bottle design and product intact. Brut

    began to lose its market share as more

    competitors began to enter the mens

    fragrance industry.

    TODAYBrut cologne remains the brands topselling product. However, it is low in mar-

    ket share percentage. Brut is sold across

    the world but is heavily marketing in the

    United States. Advertising efforts empha-

    size the attributes in establishing yourselfas a real man. Bruts product line has

    extending into other grooming products.

    The brand continues to attempt to restab-

    lish itself in the market to compete with

    brands like Old Spice.

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    SWOT ANALYSISTHE STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS

    STRENGTHS

    OPPORTUNITIES

    WEAKNESSES

    THREATS

    - Brut is an established brand name

    - Recognizable position as an aggressive manly

    scent cologne

    - Extremely affordable price

    - Loyal following among some the older male popu-

    lation and generations

    - Parent company, Unilever, is an industry leader

    - Can elevate brand equity and perception of prod-

    ucts quality through repositioning strategies- Can differentiate with manly positioning in con-

    trast to metrosexual, progressive colognes

    - Can reach out to new, classier distributors such

    as department stores and boutiques

    - Can re-design packaging to re-energize product

    - Many famous former endorsers (i.e. Joe Namath)

    that could be utilized for a retro campaign

    - Most competitors possess a higher brand equity

    and perception of higher product quality- Old Spice has executed its manly position more

    effectively than Brut

    - Spray bottles may come under attack from gov-

    ernment regulations and environmental activists

    - Current advertising campaign could be viewed

    by feminists as enforcing traditional masculine

    mindsets and stereotypes

    - Increased costs of overall production

    - No appeal for women

    - Old, outdated packaging design

    - Lack of awareness among younger generations

    - Lack of excitement about Bruts strong scent

    - Very low advertising presence

    - Primarily available in grocery and drug stores

    with low brand equity

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    COMPETITOR ANALYSISBRUTS TOP CURRENT AND FUTURE COMPETITORS IN THE MARKET

    CURRENT COMPETITORS

    FUTURE COMPETITORS

    Aqua Velva is similar to Brut. It

    is popular among older men. Itis sold in drug stores across the

    country. The scent is not as bold

    as Brut. Their promotions are

    practically non-existent. Aqua

    is low-cost fragrance provider.Younger generations are out

    of touch with Aqua Velva. Their

    product life is in decline.

    Old Spice is aggressive in adver-

    tising and promotional efforts.The brand began in 1937 with

    historical scents and products.

    They dominate the 16-24 male

    market. Old Spice has three

    lines, Each has its own bodywashes, colognes, and deodor-

    ants. Recent transformations in

    their products saved the brand.

    Axe has been using the manli-

    ness appeal better than Brut.As opposed to Brut and Old

    Spice, Axes advertising and

    promotion are focused on mens

    attractiveness to women. Axe

    started with antiperspirantsand has grown into shower and

    hair products. Axe is a popular

    fragrance among younger men.

    The Nautica brand is a built on

    providing high quality products.

    Primarily a mens sportswearcompany, Nautica has been

    successful in selling products in

    high-end stores. Their cologne

    is light and appeals to preppy

    and sophisticated men. Nautica

    is inexpensive when compared to

    major designer colognes.

    Calvin Klein is a designer clothing

    company with its own fragrance

    line that offers a lot of productdiversification. Calvin Klein has

    bold and fresh scents. Their

    price is very competitive in the

    mens fragrance market as a

    mildly expensive cologne, but

    offers a lot of variety in product

    bundling.

    Acqua de Gio targets men at any

    age with a higher income. Found

    in glass cases at major depart-ment stores, Acqua de Gio has

    high brand awareness and brand

    superiority. The scent is unique

    and light. It has been successful

    in putting emphasis on style and

    quality. It is more expensive but

    still comparable to other brands.

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    REPOSITIONING STRATEGIESTHE REVITALIZATION, RENEWAL AND REVAMPING OF BRUT

    For over 40 years Brut

    has been on the shelves of

    every drugstore. However

    sales have declined in recent

    years due to lack of promo-

    tions and advertising as well

    as increased competitionwith brands like Axe and

    Old Spice. In order to stand

    out from it competitors Brut

    needs to re-image itself as

    a classier fragrance that

    men use as a step up from

    its competitors. The firststep in doing this is for Brut

    to scrap the plastic bottle

    and replace it with our newlydesigned glass bottle. It will

    continue to feature the icon-

    ic green color but the glass

    bottle will gain the attention

    of a different demographic

    of men. There will also be

    an increase in price of our

    products. The original brut

    fragrance costs about $6 for

    the 3 oz. bottle and up to

    $25 for the 25 oz/ bottle. In

    order to move our products

    away from the typical cheap

    drugstore brand we need to

    increase the prices to move

    closer to fragrances such as

    Aqua di Gio and Calvin Klein

    which costs at a range from

    $40 to $85 depending on

    size. The new cost of BrutCologne will be offered in 3

    sizes, a 3 oz. bottle that will

    cost $25, a 7 oz. bottle for

    $35 and our value bottle of

    25 oz. for $55.

    In addition to this wewant to move Brut away

    from the shelves that feature

    cheap brands like Axe andOld Spice. We want the

    Brut brand to be featured

    in department stores such

    as Macys and Nordstrom.

    The product will need to be

    placed in glass cases next to

    the Calvin Klein, Nautica and

    Aqua di Gio. Brut can also

    be found in drug stores but

    no longer on open shelves.

    It will be in the locked glass

    cases.

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    CONSUMER PROMOTIONSFOUR WAYS TO EXCITE CONSUMERS AND DRIVE SALES

    Channel 4 News Team

    anchor, ladies man, andstrong believer in the

    power of Brut.

    RONBURGUNDY

    While Bruts most famous spokesperson,

    former NFL quarterback Joe Namath, has been effec-

    tive for the brand in previous campaigns, we believe

    that Bruts new promotional campaign will need a

    face that represents the new wave of masculinity.

    If Old Spice has taught us anything, its that humor

    helps get that masculinity across to consumers.Thats why we would like our new spokesperson to

    be Ron Burgundy, the newscaster alter ego of actor

    Will Ferrell. With the new Anchorman film coming

    out later this month, now is the perfect time to have

    Burgundy endorse Brut as his preferred musk

    in humorous advertisements. Burgundys likeness

    can be used with in-store displays and in print and

    television advertisements as well. Both Brut and the

    Anchorman franchise should benefit from this in-

    creased exposure. Chrysler-Dodge was able to bookBurgundy for their commercials for free with the only

    condition being that they promoted the new Anchor-

    man film at the end of the advertisement. Following a

    similar strategy, our maximum estimated cost of thespokesperson is $15,000.

    BRUTS NEWLEADING MAN

    With Ron Burgundy as our celebrityspokesman, Brut could be subtly used

    in product placement in the upcoming

    Anchorman film. While it may be too late to

    insert into the original film, Brut cologne

    bottles could be inserted into the DVDversion that will be released in 2014.

    There could also be a deleted scene or

    supplementary YouTube video whereRon Burgundy makes a humorous fake

    commercial in which he touts all the ways

    Brut helps him be the classiest man in the

    world. We see a lot of potential with a bot-

    tle of Brut in Burgundys hilarious hands,and estimate the cost to be $100,000.

    NEW STAR IN THE ANCHORMAN SEQUEL

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    We will purchase a classic luxury

    car in the vein of an old Mercedez

    Benz and repurpose it as our street

    teams car in major cities. This car

    will be painted and detailed in Bruts

    classic green color and logo that willbe sure to catch peoples attention

    around town. Our street team will

    drive through the streets of citieslike NY, Chicago and LA and try to

    find men we deem to embody the

    mature, classy man that we want

    to target with this campaign. When

    the team finds this kind of man on

    the sidewalk, it will pull the car over

    and offer him free samples of Brutcologne and other Brut products.

    This strategy will generate cheap

    attention and word-of-mouth buzzfrom people taking cell phone

    pictures and posting our campaign

    on their social media pages. It will

    also get our products into the hands

    of key influencers that can inspire

    others to try the Brut brand again.

    Between the cost of the car, thepaint jobs, the fuel and the wages

    for the street team, we estimate the

    total cost for this promotion to be$100,000.

    THE BRUT CAR

    A BONUS DEALWell market and sell packages of

    Brut to attract new users and to

    develop product loyalty. The packag-

    es will include three Brut products:

    cologne, body wash, and aftershave.Although it will be more expensive

    than a single bottle of Brut, con-

    sumers will see the value in the

    bundled deal because of the multi-

    ple products included. We estimate

    the production cost for making

    these bonus packs to be $50,000.

    GIFTSET

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    SALES FORCE PROMOTIONSWAYS TO MOTIVATE THE SALES FORCE TO SELL, SELL, SELL

    MOTIVATION FOR REPRESENTITIVESAt the end of the six-month period,sales will be tallied by management

    to determine who is deserving of

    the grand prize. The winner will bebased on who accrued the highest

    total sales. These totals will be pro-

    rated and adjusted on a curve ac-

    cording to how lucrative the markets

    were that each representative sold

    within. Sales for Rochester, NY, for

    example, would be weighted higher

    than in a city like Chicago. The grandprize is a two-week all expenses paid

    trip for two to the Cayman Islands.

    Bruts parent company, Unilever,will foot the bill for air fare, lodging

    at The Ritz-Carton Grand Cayman,

    a rental car, 3 meals per day, and

    a $200 daily stipend to use on spa

    treatments and other immenities.

    The estimated value of the trip is

    $10,500. The second place winner

    will receive a $500 bonus and thirdplace will receive a $150 bonus.

    Our representatives are essential.Their task will require high levels

    of patience and determination. As

    such, we want to properly motivated

    and rewarded for their efforts. The

    prospect of winning this vacation

    should give the reps incentive to sell

    Brut to new distributors.

    It will be a tall order for Bruts sales

    representatives to persuade both

    retailers and consumers to become

    excited about buying Brut once

    again. These sales reps are on the

    front lines of this campaign to re-in-

    vigorate the brand. It will be their

    jobs to establish Bruts credibility

    as a cologne that is still viable and

    attractive in todays marketplace.

    Retailers may be skeptical, based

    on the fading performance of the

    brand in recent years. To overcome

    those objections, our reps must be

    highly motivated to continue fighting

    to convince these retailers that Brut

    cologne is a good fit for their stores.

    To motivate the sales staff, it will be

    necessary to initiate a sales force

    promotion. We believe the best mo-

    tivation tactic would be to have the

    sales staff participate in a good-na-

    tured competition to win a coveted

    prize. For a six-month period (Jan.

    1, 2014-June 30, 2014) our sales

    representatives will attempt to form

    as many agreements and contracts

    with retailers as possible. As they do

    so, they will be required to log each

    contract into a master spreadsheet

    that contains all of the sales made

    to distributors during the contest

    period (Honors system is in place

    here when sales reps submit their

    sales). In addition, receipts and

    invoices must also be saved for

    further proof of sale.

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    TRADE PROMOTIONSPROMOTIONS TO APPEAL TO DISTRIBUTORS AND RETAILERS

    We want our trade promotions to be appealing and effective. They need to maintain and uphold our mission which is

    to position Brut as a classier mens fragrance. We will maintain trade promotions with manufacturers and resellers

    that stay true to this positioning.

    BUYING ALLOWANCEWe will offer a discount to our first time buyer resellers and discounts to anyone who buys large quantities. The dis-

    count will continue if they match or increase their order next month/period/year. This appeals to sellers who do not

    have our product on their shelves to expand our retail outlets and build brand awareness, while also creating brandloyalty with our current sellers.

    THE BRUT BUNDLEWe will offer a bundle special featuring the 25 oz bottle. For $5 more our original fragrance will be bundled with our

    brut aftershave and deodorant. This $15 value will be placed in an attractive kit that is perfect for gift giving. It will

    allow the consumer experience some of our other less popular products as well as give them the opportunity for a

    great deal. It will help reposition Brut as a classier brand not just something you picked up at the drug store.

    IN-STORE DISPLAYSWe will set up a special event themed in-store

    display in all department and retail stores

    selling our products. It will utilize the to be

    released Anchorman 2 movie where we will

    play off the Brian Fantana Sex Panther scene

    from Anchorman. It will feature a large card-

    board cutout with Fantana and Burgundy hold-

    ing Brut saying, The essence of a man. It willattract the a range of the male population and

    work off the concept that a classy, well put to-

    gether, successful man wears this fragrance. It

    also ties in nicely with our spokespersona and

    product placement tactics in the Anchorman

    sequel. All of the materials for assembling this

    display will be provided to department stores.

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    BUDGETA BREAKDOWN OF ALL EXPENSES

    TRADE PROMOTIONS

    CONSUMER PROMOTIONS

    PRODUCTION COSTS

    SALES FORCE PROMOTIONS

    TOTAL COST: $725,150TOTAL BUDGET: $750,000

    37%

    41% 21%1%

    $300,000

    $265,000 $10,150

    $150,000

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    MEET THE TEAM

    MATT KELLYMatt Kelly is a Sport Media major at Ithaca College. Originally from the town of Livonia, Matt

    has lived in upstate New York his entire life. He currently works as a producer for ICTV, a tutor

    at the Ithaca College Writing Center and a writer for The Ithacan newspaper. Matt will be grad-

    uating from Ithaca College at the end of December and plans to pursue a career in creative

    writing in the coming years.

    PAT STEPHENSONPat Stephenson is a senior Business Administration major with a concentration in Finance.

    Pat was born and raised in Rochester, New York. He is an avid Buffalo Bills and Syracuse

    University Orange fan. His hobbies include playing football for the Ithaca College Bombers and

    snowmobiling.

    EMILY FULLEREmily Fuller is a junior Integrated Marketing Communications major at Ithaca College. Emily

    hails from Auburn, New York. She just recently finished her tenure as Design Editor of Ithaca

    Colleges student newspaper, The Ithacan. She is the Advertising Chair of the student organi-

    zation, Colleges Against Cancer of Ithaca College. After graduating from Ithaca, Emily hopes toenter into a career as an art director or editorial designer.

    ALEC JOSEPHAlec Joseph is from Weston, Connecticut. Throughout his early childhood and into high school

    Alec played baseball, basketball and golf. Alec now attends Ithaca College where he is pur-

    suing a degree in Marketing. He will be graduating this coming May. After graduation, Alec is

    looking forward to possibly starting his own business.

    MIKE SHELDONMike Sheldon is a senior Marketing major at Ithaca College. He is originally from Ridgefield,

    Connecticut. Mike recently finished his fourth and final year with the Ithaca College Bombers

    football team. His hobbies include watching Netflix, playing sports and eating pasta.