THE ESSENCE
OF MAN A PROMOTIONAL PLAN FOR BRUT
Presented by Matt Kelly, Emily Fuller Pat Stevenson, Mike Sheldon and Alec Joseph
Sales and Sales Promotion Professor Kurt Komaromi Fall 2013
TABLE OF CONTENTS History of Brut 3 SWOT Analysis 4 Competitor Analysis 5 Repositioning Strategies 6 Target Market 7 Target Market Profiles 7 Consumer Promotions 8-9 Sales Force Promotions 10 Trade Promotions 11 Budget 12 Meet the Team 13
2
PRODUCT HISTORY A TIMELINE OF BRUT’S PAST
1964 Brut 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 packaged in a distinctive green glass bottle.
2003 Rights to the Brut brand were purchased by Idelle Labroatories for several regions. Idelle continues to own the company today.
1989 Heath 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 men’s fragrance industry.
TODAY Brut cologne remains the brand’s top selling product. However, it is low in market share percentage. Brut is sold across the world but is heavily marketing in the United States. Advertising efforts emphasize the attributes in establishing yourself as a “real man”. Brut’s product line has extending into other grooming products. The brand continues to attempt to restablish itself in the market to compete with brands like Old Spice.
3
SWOT ANALYSIS THE STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS STRENGTHS - Brut is an established brand name - Recognizable position as an aggressive “manly” scent cologne - Extremely affordable price - Loyal following among some the older male population and generations - Parent company, Unilever, is an industry leader
OPPORTUNITIES - Can elevate brand equity and perception of product’s quality through repositioning strategies - Can differentiate with “manly” positioning in contrast 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
4
WEAKNESSES - No appeal for women - Old, outdated packaging design - Lack of awareness among younger generations - Lack of excitement about Brut’s strong scent - Very low advertising presence - Primarily available in grocery and drug stores with low brand equity
THREATS - 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 government regulations and environmental activists - Current advertising campaign could be viewed by feminists as enforcing traditional masculine mindsets and stereotypes - Increased costs of overall production
COMPETITOR ANALYSIS BRUT’S TOP CURRENT AND FUTURE COMPETITORS IN THE MARKET
CURRENT COMPETITORS
Aqua Velva is similar to Brut. It is popular among older men. It is 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 advertising 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 body washes, colognes, and deodorants. Recent transformations in their products saved the brand.
Axe has been using the “manliness” appeal better than Brut. As opposed to Brut and Old Spice, Axe’s advertising and promotion are focused on men’s attractiveness to women. Axe started with antiperspirants and has grown into shower and hair products. Axe is a popular fragrance among younger men.
FUTURE COMPETITORS
The Nautica brand is a built on providing high quality products. Primarily a men’s sportswear company, 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 product diversification. Calvin Klein has bold and fresh scents. Their price is very competitive in the men’s 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 department 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.
5
REPOSITIONING STRATEGIES THE 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 promotions and advertising as well as increased competition with 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 first step in doing this is for Brut to scrap the plastic bottle and replace it with our newly designed glass bottle. It will continue to feature the iconic 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
6
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 Brut Cologne 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 we want to move Brut away from the shelves that feature cheap brands like Axe and Old Spice. We want the Brut brand to be featured in department stores such as Macy’s 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.
TARGET MARKET BRUT’S IDEAL MARKETPLACE Since the beginning of Brut, their marketing efforts have focused young male teens entering adulthood. Brut prides itself on being the brand that teens use as their first cologne; transitioning them to manhood. Today’s Brut has realized some trends in the market have
changed and their marketing efforts have not exactly shot in the appropriate direction. Mintel Research has discovered that projects targeting men in the 50 and older age group represent the fastest growing category of men’s fragrance buyers. New campaigns should seek to
attract new buyers while maintaining Brut’s identity. Marketing director of Brut, Marc Broccoli, says the target buyer is now men aged 30 and up. We’ll need to market and advertise Brut’s product line to men that have basic daily grooming regimens.
TARGET MARKET PROFILES THREE QUINTESSENTIAL BRUT USERS
DAVE, 57 Dave is an established business owner with three grown children. He began using Brut at the beginning of his professional career over 35 years ago. He consistently recommends Brut to his friends, collagues and family. Dave enjoys golfing, boating and traveling. He finds Brut fragrance to be refreshing and classic.
BRENNAN, 42
GRAHAM, 36
Brennan is a police officer and avid runner. He has been a user of Brut for many years. His father introduced him to Brut when he entered his teenage years. Brennan plans to do the same with his boys when they reach that age. He likes the classic scent of Brut and how it easy it has been for him to grow with the fragrance through the years.
Graham is a single marketing communications executive at a fortune 500 company. He is always in meetings with clients. When not at work, Graham enjoys dining out and exploring new cities. He needs a cologne that is not too pungent but has a distinguishing scent. He puts his trust in Brut and enjoys its defining fragrance.
7
CONSUMER PROMOTIONS FOUR WAYS TO EXCITE CONSUMERS AND DRIVE SALES
BRUT’S NEW LEADING MAN While Brut’s most famous spokesperson, former NFL quarterback Joe Namath, has been effective for the brand in previous campaigns, we believe that Brut’s new promotional campaign will need a face that represents the new wave of masculinity. If Old Spice has taught us anything, it’s that humor helps get that masculinity across to consumers. That’s 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. Burgundy’s 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 increased exposure. Chrysler-Dodge was able to book Burgundy for their commercials for free with the only condition being that they promoted the new Anchorman film at the end of the advertisement. Following a similar strategy, our maximum estimated cost of the spokesperson is $15,000.
RON BURGUNDY
Channel 4 News Team anchor, ladies man, and strong believer in the power of Brut.
NEW STAR IN THE ANCHORMAN SEQUEL With Ron Burgundy as our celebrity spokesman, 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 DVD version that will be released in 2014. There could also be a deleted scene or
8
supplementary YouTube video where Ron 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 bottle of Brut in Burgundy’s hilarious hands, and estimate the cost to be $100,000.
THE BRUT CAR 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 Brut’s classic green color and logo that will be sure to catch people’s attention around town. Our street team will drive through the streets of cities like 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 Brut cologne and other Brut products. This strategy will generate cheap attention and word-of-mouth buzz from 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, the paint jobs, the fuel and the wages for the street team, we estimate the total cost for this promotion to be $100,000.
A BONUS DEAL We’ll market and sell packages of Brut to attract new users and to develop product loyalty. The packages will include three Brut products: cologne, body wash, and aftershave. Although it will be more expensive than a single bottle of Brut, consumers will see the value in the bundled deal because of the multiple products included. We estimate the production cost for making these bonus packs to be $50,000.
G IF T SE T
9
SALES FORCE PROMOTIONS WAYS TO MOTIVATE THE SALES FORCE TO SELL, SELL, SELL It will be a tall order for Brut’s 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-invigorate the brand. It will be their jobs to establish Brut’s credibility as a cologne that is still viable and attractive in today’s 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 motivation tactic would be to have the sales staff participate in a good-natured 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 (Honor’s 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.
MOTIVATION FOR REPRESENTITIVES At 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 be based on who accrued the highest total sales. These totals will be prorated and adjusted on a curve according to how lucrative the markets were that each representative sold within. Sales for Rochester, NY, for example, would be weighted higher
10
than in a city like Chicago. The grand prize is a two-week all expenses paid trip for two to the Cayman Islands. Brut’s 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 third place 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.
TRADE PROMOTIONS PROMOTIONS 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 men’s fragrance. We will maintain trade promotions with manufacturers and resellers that stay true to this positioning.
BUYING ALLOWANCE We will offer a discount to our first time buyer resellers and discounts to anyone who buys large quantities. The discount 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 brand loyalty with our current sellers.
THE BRUT BUNDLE We 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 DISPLAYS We 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 cardboard cutout with Fantana and Burgundy holding Brut saying, “The essence of a man.” It will attract the a range of the male population and work off the concept that a classy, well put together, 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.
11
BUDGET A BREAKDOWN OF ALL EXPENSES
41%
21% 1% 37%
TRADE PROMOTIONS
PRODUCTION COSTS
CONSUMER PROMOTIONS
SALES FORCE PROMOTIONS
$300,000 $265,000
$150,000 $10,150
TOTAL COST: $725,150 TOTAL BUDGET: $750,000 12
MEET THE TEAM MATT KELLY Matt 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 graduating from Ithaca College at the end of December and plans to pursue a career in creative writing in the coming years.
PAT STEPHENSON Pat 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 FULLER Emily 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 College’s student newspaper, The Ithacan. She is the Advertising Chair of the student organization, Colleges Against Cancer of Ithaca College. After graduating from Ithaca, Emily hopes to enter into a career as an art director or editorial designer.
MIKE SHELDON Mike 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.
ALEC JOSEPH Alec 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 pursuing a degree in Marketing. He will be graduating this coming May. After graduation, Alec is looking forward to possibly starting his own business.
13
