Scrub Daddy Marketing Plan

2016 COMPREHENSIVE MARKETING PLAN

Submitted By:

Kia Street

Firm: niriya & saraya cole®

Client: Scrub Daddy®

A COMPREHENSIVE MARKETIN G PLAN

EXECUTIVE SUMMARY

Aaron Krause, a Pennsylvania native, founded Scrub Daddy sponges after revealing a niche in the household- cleaning marketplace. The smiling miracle workers are one-of-a-kind scrubbers with versatile features that set the product apart from any competition. Krause took the idea to owners of incredibly deep pockets, floating on their thrones on ABC’s Shark Tanks’ stage. Lori Greiner was instantly sold and hooked Aaron up with sponsorships with big names such as QVC and Bed Bath & Beyond. Years later, Krause has made millions selling his product throughout the United States and Canada. Our marketing strategy is simple: rebrand Scrub Daddy as modern, cool and fresh. Our marketing strategy is to show college students that Scrub Daddy is the perfect product for everyday cleanup. We want to move away from selling to the suburban mom and instead tap into a younger demographic that would benefit from this product as well. In our research, we surveyed 60 people, 45 of whom were enrolled in a college or university, and asked them quantitative questions about their household cleaning habits and preferred products of use. We later asked them to tell us their thoughts and feelings towards Scrub Daddy. Our research concluded that the majority of this age group felt Scrub Daddy’s packaging was “tacky”, “cliché” and looked “like a child’s toy”. Our research also indicated low brand awareness amongst respondents’, so we developed a relevant marketing campaign that directly targeted these consumers. With an overall marketing budget of $1,000,000 and a tough audience to keep engaged, we took on the challenge of overcoming this barrier. By utilizing the target’s most relevant mediums such as streaming radio, Internet, social media and TV we aimed to increase brand awareness amongst college students by 50%.

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SITUATION ANALYSIS Internal Environment Mission Statement We pride ourselves in developing products that will make your work easier, faster, and more exciting! Stop back often as we are always creating new and unique products.

Company Structure Organizational Chart

Scrub Daddy is incredibly discreet in terms of their company structure and philosophy. Aaron Krause serves as the Founder & CEO of the company and Lori Greiner acts as an investor and partner of Scrub Daddy. The product is manufactured in Germany at an undisclosed location. Krause chose to withhold the information about where the product is developed because he wanted to keep a competitive advantage in the marketplace. Scrub Daddy’s marketing is handled by Centurion Strategies, a firm whose website says, “Concise messaging, bold strategy, building brand alliances, executing unique campaigns, and talented operators rank highest on our list of why our clients succeed.” Also,

FOUNDER & CEO

AARON KRAUSE

PRODUCT DEVELOPMENT

MANUFACTURER IN GERMANY

MARKETING

CENTURION STRATEGIES

OFFICE SUPPORT

50 EMPLOYEES AT FOLCROFT, PA HEADQUARTERS

INVESTOR & PARTNER

LORI GREINER


Scrub Daddy has recently opened a company headquarters in Folcroft, Pennsylvania that’s home to over 50 employees. While their exact job descriptions are unspecified, one can assume the tasks range from accounting to legal strategies to the management of day-to-day operations and administrative tasks. We’ve used the umbrella term “office support” as the label for these various duties inside the company’s headquarters. While the organizational culture of Scrub Daddy is not outlined in their mission statement, our research concluded that the company values the commitment, appreciation of the sponge and competitiveness of their employees. Both Aaron Krause and Lori Greiner are seen as the heroes of the company. They reflect the image and attitude that the brand values most.

Marketing Strategy

The product is positioned as an all-in-one household cleaner that has the ability to scrub any surface or object without scratching it. Scrub Daddy’s sponges are fun but useful to many who actively clean multiple surfaces in their homes. The price is $3.99 for one or three for $9.99, which reflects it’s higher quality. They are distributed in the United States and Canada in major retail locations. Also, they’re available online at shopping sites such as Amazon.com, Target.com and their partner sites. Finally, we found that their promotional strategy is the most lacking out of the four P’s. Scrub Daddy targets an older demographic even though their product aesthetically more pleasing to younger people. They target suburban mothers ages 35-44 that prefer all-purpose household cleaning products. Their advertising is sparse, with mostly demonstration style TV commercials. The commercials are outdated, silly and awkward. They look extremely unprofessional and have the appearance of an incredibly low budget. The text is plain Arial font centered at the bottom of the screen and Aaron himself is featured using his product and talking about it to the audience. There was only one print ad that was modern but it was too informative. There was a lot of information sprawled out across the ad with seemingly no concept or direction to why it looked that way. Scrub Daddy doesn’t seem to do much advertising on its’ own as a brand. Instead, they continuously link themselves with Shark Tank, QVC and Lori

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Greiner. They rely mostly on the word-of-mouth from Shark Tank viewers and this as an advertising strategy isn’t very effective.

Objectives In an interview with Business Wire, Aaron Krause said, “We know we have a best-in-class product that has raised the standard on household sponges, and we are excited to continue to grow the business in a positive direction…” furthermore Krause said his objectives in the upcoming year were to introduce additional scrubbing products to compliment the new Heavy Duty, or HD Scrub Daddy sponge and to continue to grow nationally.

Growth Strategy The company has grown since its’ conception with the help of multiple retail partners and above average demand from consumers. They intend to grow in the future by continuing to utilize Lori Greiner’s connections in their favor and stretching across the United States. Partnerships with Bed Bath & Beyond, Wal-Mart, Kroger and Supervalu have propelled the company in a positive direction and enhanced their businesses’ growth.

Corporate Culture Scrub Daddy’s corporate culture is unique and innovative like their product. However, this culture doesn’t seem to influence their marketing activities. As previously stated, their current marketing strategy is unproductive and outdated.

Company Resources The company benefits from resources obtained from their biggest investor, Lori Greiner. They employ her retail expertise through her associated channels of merchandising. In fact, her connection with QVC was what initially boosted Scrub Daddy’s brand and furthermore, her involvement with Shark Tank gives the company an in at ABC. These resources provide instrumental value to the company as a whole.


External Environment

Domestic Market According to Mintel, people aged 18+:

36% use scrubbing sponges at least once a week o 25% male, ages 18-34 o 24% female, ages 18-34 o 22% live in 4 person households

33% use regular kitchen sponges at least once a week o 24% male, ages 18-34 o 22% female, ages 18-34 o 20% live in 4 person households

26%

26% 25%

14%

5% 4%

Market Share of Household Surface Cleaners, 2013

Toilet/Tub/Tile Cleaners

All-Purpose Cleaners

Specialized Cleaners

Cleaning Clothes/Wipes

Floor Cleaners/Wax Removers

Furniture Polish

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Competitive Analysis

Company Product Marketing Strategy

Scrub Daddy

Original Scrub Daddy

Target moms ages 35-44

Geographically target suburban areas

Sold at QVC, Bed Bath & Beyond, Target, Wal-Mart, Kroger, etc.

Mainly advertise through TV

TV Commercials are demonstration-style

Product positioned as fun and quirky

Cost $3.99 for one, $9.99 for three

O-Cel-O

No-Scratch Scrub Sponge

Target women ages 25-34

Sold at Target, Wal-Mart, Kroger, Shop Rite, Walgreens, etc.

Mainly advertise through print

Print ads are clean, modern, colorful

Product positioned as popular and young

Cost $1.49 for one, $6.99 for six

Scotch Brite

Non-Scratch Scrub Sponge

Target men ages 25-44

Sold at Target, Wal-Mart, Walgreens, Wegmans, ACE, Lowe’s, Kroger, etc.

Mainly advertise through TV and social media

TV commercials funny, parody -like

Product positioned as older and huskier

Cost $2.99 for one, $8.49 for three

Mr. Clean

Kitchen Scrubber

Target men ages 35-54

Sold at Shop Rite, Rite Aid, CVS, K-Mart, etc.

Advertise through all mediums

Ads are melancholic, old-fashioned

Product positioned as old-fashioned, durable

Cost $1.50 for one, $4.99 for four


Key Trends

Scrub Daddy is only available to US and Canada.

People are increasingly worried about germs.

Sponge sales have increased 10% over past 5 years.

Industry projected to make $2,455 in 2015.

Disposable = hygienic. More than 1/3 of users prefer this.

Reusable = environmentally friendly.

Nearly half of adults who do housecleaning agree that it’s important to regularly disinfect dishcloths. About one third say they prefer disposable wipes because they see them as a more hygienic alternative.

Some three in 10 who do housecleaning say they would pay more for cleaning equipment that cleans more effectively than what they’re using now. Nearly as many value effectiveness to the degree that they would rather have more cleaning tools that perform specific tasks particularly well than fewer multipurpose ones.

Given the importance of user experience in the category, in -store demonstrations and opportunities for consumers to try products firsthand are essential marketing tactics for almost any cleaning equipment brand.

Higher income household’s love specialized cleaning tools. Eco-friendly technology seems to be a growing trend in sponges.

Sponges with chemicals

Sponge balls – stupid

Kitchen sponges with handles

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SWOT Analysis

Strengths Weaknesses Opportunities Threats

New innovative "face" idea

Changes in texture

It's fun, has a personality

Featured on Shark Tank

Seen as a joke or novelty

Site unorganized, unprofessional

No real marketing strategy

Weak online presence

Expand into extensive line of cleaning products

Sponsorships

Eco-friendly disposable trend

Brand loyalty to old-fashioned company’s

MARKET RESEARCH Primary Research

Objectives 1. Discover college students' preferred method(s) of household cleaning 2. Identify the level of brand awareness amongst this audience 3. Learn why or why not they buy Scrub Daddy products

Methodology We distributed an 8-question quantitative/qualitative survey via Survey

Monkey, the link is https://www.surveymonkey.com/s/BFFKZJ2

The survey garnered 60 responses

75% of respondents were college students

Findings 33% of respondents live in off-campus apartments

32 out of 60 use regular sponges to wash dishes

When asked, "In a typical week, how many days do you wash the dishes?" 37% said, "2 to 4 days a week"

45 out of 60 respondents weren't aware of Scrub Daddy

Quotes from respondents on Scrub Daddy's look and feel:

“It’s different and colorful”

“I like the packaging. It stands out!”


“Looks like a children’s toy”

“Appears cheap. I feel like the product would last for about two uses!”

“The packaging looks corny, like a made for TV product”

MARKETING OBJECTIVES To reposition Scrub Daddy as modern, fun and mature by developing an ad campaign that directly reaches our target audience. The overall goal of this campaign is to increase brand recognition amongst college students by 50%.

MARKETING STRATEGIES Target Markets & Positioning Target Audience Demographics:

College students

Ages 18-24

Resident of an urban area (major city) Psychographics:

Access to a kitchen

Prefer a clean eating area

Do not own a dishwasher

Active on social media

Positioning We want to position Scrub Daddy as affordable, unique and essential to college life. We want college students to see the product as a must-have for their kitchens or kitchenette’s because the product is all-purpose, leaving more space for other household items. We want Scrub Daddy’s social media presence to tell a story and relate to the consumer going away to college and/or being a college student. The product must be positioned as one-of-a-kind and irreplaceable.

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Product Strategy Core Product Scrub Daddy scrubs and cleans any kitchen surface. The packaging is colorful, fun and eye-catching. The product has a smiley face design that immediately entices the customer.

Actual Product The sponges’ innovative technology aids the cleaning process. Scrub Daddy is soft in warm water for gentle cleansing and firm in cool water for coarse scrubbing. It rinses clean and doesn’t cling to debris so it keeps looking clean and bright. The smiley face design allows the sponge to clean both sides of spoons, spatulas and other utensils. It’s safe on china, non-stick cookware, counters and other surfaces.

Augmented Product Scrub Daddy’s customer service, the detailed instructions available online and the alternative colors that are presented for purchase—all make up the augmented product.

Redesign Scrubdaddy.com Before After

We decided to redesign the website to be easier to use, less tacky and more appealing to our target audience.


Revamp the Scrub Daddy Logo Before After

By modifying the company’s logo, we gave the brand a more sophisticated look and feel. The new logo is fresher and much cleaner in comparison to the previous logo. College students will appreciate the modern colors and the intricate design.

Pricing Strategy Price at $3.99 for one, $9.99 for three Consumers are getting a quality product that sets itself apart from an average sponge. Although other brands value-packs are cheaper and come with more sponges, they don't have the same longevity as the Scrubber. Therefore, the price is justified by quality and ability of Scrub Daddy versus other sponges.

Supply Chain Strategy Retailers

Bed Bath & Beyond

Ace Hardware

The Home Depot

Target

Shop Rite

Wal-Mart

Target

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Promotional Strategies Advertising

Out-of-Home

Billboard Campaign

Shelf Displays


Streaming Radio Example Radio Script: "Congratulations, graduate! It took you four years to get that high school diploma, and time to spend another four years at college, where you will build a foundation for your future. What with roommates, partying, and cramming for finals, it might seem like there’s no time to clean the dishes. Who wants to do that anyway? Now, you will with Scrub Daddy! Scrub Daddy is a scratch-free scrubber with flex-texture and durable action. Don’t waste time on tackling those pasta stains with a sponge that will only absorb water. With Scrub Daddy, not only will you get the stain out with ease, you will also be able to use it throughout your year! Make sure to visit your school store to purchase one for only $3.99! Visit our website for details on how you can win cool Scrub Daddy prizes! Scrub Daddy: cleaning with a smile!"

Social Media Instagram Sweepstakes: #scrubdaddygoestocollege Each student who purchases a Scrub Daddy and has an Instagram account is eligible to win. There will be a winner every month. Each winner will receive a t-shirt, coupons, or a new Scrub Daddy product.

Internet Scrub Daddy App Develop an app with main idea focused around a game that wins you coupons. Also, there is a section called "Facts and Hacks", which explains cool ways on how to use a Scrub Daddy.

Television Commercials demonstrating the product, highlighting the PR events scheduled, showing Scrub Daddy on campus, etc.

Public Relations Campus events will include tables for students to see a demonstration of Scrub Daddy products. Also, coupons and t-shirts will be handed out to students who participate in the activities tables. In the school store there will be Scrub Daddy’s displayed when you first walk in for students and parents to see.

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IMPLEMENT & CONTROL THE PLAN Media Buying/Planning Television Rationale

CHANNEL LENGTH DAYPART RUN COST

ABC 60 seconds Early Fringe (4:30p-7:30p) September- December Low

E! Network 30 seconds Prime Access (7:30p-8p) August High

MTV 30 seconds Daytime

(10a-4:30p)

Late News

(11p-11:30p)

Late Fringe (11:30p-1a)

June- August

June- August

June- August

Average

VH1 30 seconds Daytime

(10a-4:30p)

Late News

(11p-11:30p)

Late Fringe (11:30p-1a)

June-August Average

QVC 120 seconds Late Fringe

(11:30p-1am)

Post Late Fringe

(1a-2a)

Early Morning

(6a-10a)

January- May

January-May

September- December

Low

Create buzz before Back-To-College Campaign Launch in August Engage target audience in media they recognize most (i.e. streaming radio, internet, TV) Heavily push advertising during national campaign Highlight nationwide campus event Keep audience informed of product throughout the year


Action Plan Implementing the Marketing Plan

1. Conduct market research to identify the benefits of targeting college students in urban areas.

2. Develop creative strategy based on consumer insight. 3. Craft relevant advertising campaign 4. Utilize mediums that resonate with college students most (i.e. streaming

radio, internet and social media). 5. Test results of the campaign.

The responsibility of each step will be split amongst the company’s employees. However, third-party services will be used for advertising and public relations. The timeline will be based off of a one-year period (2016). The budget for the campaign is $1,000,000. Measuring the actual performance of the plan will come after the post-test period and will be used to conclude the effectiveness of each tactic used during the campaign.

Scrub Daddy Marketing Plan

Marketing

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