Old Spice: Revitalizing Glacial Falls
Old Spice: Revitalizing Glacial Falls
Context: In 2007, P&G reported a growth of 5% in volume and a 3% increase in revenue for its Old Spice brand. The achievement was deemed "flat" when P&G had maintained a competitive media spending of 23% in the men's deodorant category. As a result, Mauricio O'Connell, assistant brand manager was tasked to address the reasons for the foundering sales of Glacial Falls scent, which was the worst performing scent not only in Old Spice's portfolio but also in the entire category.
Diagnosis: Red Zone line is the higher-end product offering of the Old Spice brand featuring the Glacial Falls scent. From Exhibit 6, we see that consumers of this product enjoy the benefit of the enduring power of the scent keeping away the odors, thus having the need to use the deodorant once per day. Additionally, Old Spice products are easy use as well as offer a scent that is deemed clean and fresh by its loyal customers. However, Old Spice does not clearly distinguish how their product can be a catalyst to energize, empower or give confidence to its users. The case also highlights that Old Spice had not advertised the Glacial Falls scent specifically. Additionally, P&G's media campaigns seem to have painted the brand as "old" and the customers of both segments associate the brand with the elderly.
P&G's problem is its unfocussed position of the Old Spice brand and of the Glacial Falls scent that result in the "flat" growth in the men's deodorant category. Consumers cannot distinguish between the three product lines especially the difference between the "Classic" and the "Red Zone" line. The flat growth or the foundering sales of the Glacial Falls scent are neither a result of the low quality nor the poor smell of Glacial Falls scent itself.
Proposed Solution: To improve the sales of the Glacial Falls scent, P&G needs to distinguish clearly between its product lines - Base, Classic and Red Zone. Based on the qualitative data presented in
Context: In 2007, P&G reported a growth of 5% in volume and a 3% increase in revenue for its Old Spice brand. The achievement was deemed "flat" when P&G had maintained a competitive media spending of 23% in the men's deodorant category. As a result, Mauricio O'Connell, assistant brand manager was tasked to address the reasons for the foundering sales of Glacial Falls scent, which was the worst performing scent not only in Old Spice's portfolio but also in the entire category.
Diagnosis: Red Zone line is the higher-end product offering of the Old Spice brand featuring the Glacial Falls scent. From Exhibit 6, we see that consumers of this product enjoy the benefit of the enduring power of the scent keeping away the odors, thus having the need to use the deodorant once per day. Additionally, Old Spice products are easy use as well as offer a scent that is deemed clean and fresh by its loyal customers. However, Old Spice does not clearly distinguish how their product can be a catalyst to energize, empower or give confidence to its users. The case also highlights that Old Spice had not advertised the Glacial Falls scent specifically. Additionally, P&G's media campaigns seem to have painted the brand as "old" and the customers of both segments associate the brand with the elderly.
P&G's problem is its unfocussed position of the Old Spice brand and of the Glacial Falls scent that result in the "flat" growth in the men's deodorant category. Consumers cannot distinguish between the three product lines especially the difference between the "Classic" and the "Red Zone" line. The flat growth or the foundering sales of the Glacial Falls scent are neither a result of the low quality nor the poor smell of Glacial Falls scent itself.
Proposed Solution: To improve the sales of the Glacial Falls scent, P&G needs to distinguish clearly between its product lines - Base, Classic and Red Zone. Based on the qualitative data presented in