Principles Of Marketing

AXE- Smells Like Teen Spirit

PRODUCT CATEGORY THREATS AND OPPORTUNITIES

ECONOMIC FACTORS:
AXE is a new and upcoming product in Pakistan (industrialist economy) i.e. wide variety of products and competitors available in the market. Since, it would be difficult for the marketers to discover new ways to satisfy consumers needs and wants because of the emergence of competitors. Therefore, AXE targets the untapped/niche market and can expand its sales and profits by capturing large shares of its market. AXE targets the middle class and upper middle.

CULTURAL FACTORS:
We are launching our product in three big cities of Pakistan (Karachi, Lahore and Islamabad) having a diverse cultural background. We all are aware of the fact that culture plays an important role in selecting a brand. The core belief of the peoples of these cities is same i.e. good/pleasant fragrance separates the person from the rest. However, secondary beliefs might vary from city to city. Our primary target is to focus on changing their secondary beliefs, as it would be difficult to alter their core beliefs.

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AXE- Smells Like Teen Spirit

POLITICAL ENVIRONMENT:
We must abide by all the business rules and regulations while doing advertisements, labeling, pricing, environmental protection etc. in order to sustain in Pakistani market. Name of our product AXE (which means it cuts bad odor from your body like an axe) is not deceptive, misleading or designed to exploit or offend the religious susceptible of people.

TECNOLOGICAL ENVIRONMENT:
AXE deodorant has introduced a revolutionized technology of DRAG and CLICK instead of the traditional CAP. This technology is child safe.

COMPETITORS ENVIRONMENT:
There exists several competitors of AXE: Rexona, Old Spice, RGX body spray, DENIM and ADDIDAS. Rexona and ADDIDAS Body Spray are our major competitors. Rexona: a high profile and diverse brand that targets both male and female, ADDIDAS: this brand is strong competitor of AXE and it targets the male section of AXE target market. However, our less concerning competitors are Old Spice, RGX body spray and DENIM. Old Spice: initially they used to target peoples who were 50 or above but now they are trying to take the brand younger , RGX body spray: they target only guys of 15-24, DENIM: it has large target market ranging from 22 year-olds to onwards.

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AXE- Smells Like Teen Spirit

COMPANY AND INDUSTRY BACKGROUND

CADRX
MISSION STATEMENT

CADRXS vision is to penetrate into customers values and believes and become a part of their life through sheer determination, continuous innovation, persistent hard work, team work and commitment to excel.

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Principles Of Marketing

AXE- Smells Like Teen Spirit

COMPETITIVE ANALYSIS

4Ps
REXONA
PRODUCT
o Rexona Crystal Clear Aqua 100g Rexona Crystal contains no alcohol so it is gentle on the skin and doesn't sting, it gives you long lasting protection against wetness and odour. Rexona Spray Forces For Men 150g - a specially formulated anti-perspirant with powerful wetness and odour protection for as long as you need it. Rexona Essentials For Men Dry 150g - Men can sweat up to 50% more than women, so you need unbeatable protection. Rexona Spray Confidence 150g - Rexona Confidence has a unique pH balanced formula which works in harmony with your body to provide ultra dryness all day long.

PRICE
Ranges from Rs. 125-150/=

PLACE
AGHAS, NAHEED STORE, IMTIAZ SUPER STORE, TIME MEDICO, SHAZZ, D-MART, STOP-N-BUY.

PROMOTION
You never know when the hand of fate will lead you to Mr. Right. Don't take chances with body odor. Use Rexona daily. It won't let you down.

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AXE- Smells Like Teen Spirit

ADDIDAS DEODORANT
PRODUCT
o Active Deodorant For Men 150ml Sport Fever

Active Deodorant For Men 150ml Team Force

o ADIDAS Basic - Deodorant Spray Team Force 150 ml

o ADIDAS Basic - Deodorant Spray - Sport Field 150 ml

o Adidas Ice Dive Deodorant spray 150 ml

Price is Rs. 140/=

PRICE PLACE

Aghas, Naheed Store, Imtiaz Super Store, Time Medico, D-MART, STOP-N-BUY.

PROMOTION
As football fever begins to take over Ireland, adidas, distributed by Coty, has launched adidas 2002 Limited Edition, a new range of body care products for men.

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Principles Of Marketing

AXE- Smells Like Teen Spirit

TARGET MARKET SPECIFICATION

DEMOGRAPHIC CHARACTERISTICS:

AGE
AXE targets the people who are in between the age group of 18-30 years. This age is the ideal age in ones life. People wish to do many things in this age and have willingness to rule on the earth.

GENDER
The product targets both the male and female. We can reach to both the genders by means of offering different color, fragrances, packaging, labeling, etc. depending upon their requirements, tastes, believes, etc.

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AXE- Smells Like Teen Spirit

EDUCATION
AXE target students who are in universities, doing their A-Levels, Chartered Accountancy (CA) or ACCA.

OCCUPATION
Students, young graduates, working in a company, running their own businesses, etc.

FAMILY SIZE
Family size is not dependant on the usage.

FAMILY LIFE-CYCLE
In our country, peoples between 18-30 are either married or unmarried. Therefore, AXE has a segment of young and single; young, married, no children; young, married, with children.

INCOME
Income is most important factor when we talk about Pakistan. Our customers should come from families of an income level exceeding Rs. 40,000 and Rs. 50,000.

RELIGION AND RACE

Person from any race and religion because we do not discriminate peoples on these basis.

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AXE- Smells Like Teen Spirit

GENERATION
Peoples from Generation Y.

GEOGRAPHIC VARIABLES
World Region or Country: Pakistan. Province or State: Sind and Punjab City: Karachi (Sind), Lahore (Punjab) and Islamabad (Punjab) City or metro size: 15 million. Density: Urban areas of Karachi, Lahore and Islamabad.

PSYCHOGRAPHIC CHARACTERISTICS:
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LIFE STYLE
In recent years, body sprays have become a stylish product. AXE targets the younger peoples because they are more likely to accept new products in a market (innovators) as compare to older peoples. AXE has divided its target market into three components:

Activities:

They are social. They watch television regularly. They play sports and other extra curricular activities. They study in educational institutions or working in a company.

Interests:

They show great interest in hanging out with friends in different social gatherings and show socialization on regular basis. Therefore, AXE will help them to remain confident and fresh. They watch television regularly and they are like couch potatoes. They watch movies, songs and commercials on television and most of the time give great response to advertisements that are attractive, appealing and catchy. AXE can penetrate into the minds of its target market by showing the advertisements of their choice. In Pakistan, sports, especially cricket is very famous among our target market (18-30). Majority of youth use to play cricket every day or once in week. However, others play football, hockey, basketball, tennis, table tennis, squash, etc. They also read sports magazine and sports column in newspaper. AXE can keep the sport lovers happy by offering them its Sports Collection. They are not nerds, workaholic and bookworms. They are realistic, street smart, innovative and ambitious and always look for the practical side of their studies and work. AXE is the best for all young and ambitious youths.

Opinions:

They view socialization as a tool for their survival. To them, television is the best medium to connect with the world.

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AXE- Smells Like Teen Spirit

They are very biased towards sports. Student: the pragmatic approach towards education would be beneficial for me. Worker: handsome amount of salary would be enough for me support my expenses.

SOCIAL CLASS
In Pakistan, majority of people belongs to middle class therefore AXE is mainly targeted to middle class and upper middle. All our efforts in promoting AXE should be to extend the vision of the product in the eyes of middle class.

PERSONALITY
Personality is again a very important factor, which attracts consumers. Mostly extrovert people are very sociable. They usually hang out with people and they use to interact with as many people as they can. If they use AXE then it will help increasing their strength to interact with other because of the tempting odor of AXE.

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AXE- Smells Like Teen Spirit

MARKETING STRATEGY
DESCRIPTION OF PRODUCT:

AXE Smells Like Teen Spirit

INTRODUCTION OF THE PRODUCT
AXE is a cool, funky, exciting, bold and non-alcoholic deodorant. It comes in six attractive fragrances that are perfectly designed to suit your style and attitude. If you are a heavy sweater and want to go with something that has both an odor controlling agent as well as something to keep perspiration to a minimum, then AXE would be the best option to choose. Its TEEN SPIRIT formula will allow you to create 30-meter circle of influence this means that everyone within thirty feet from you can smell, feel and inspire your AXE for at least thirty-six hours with a single spray.

POSITIONING STRATEGY
Product positioning is the art of tailoring the image and presentation of a product or service to appeal to a selected market segment.

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AXE- Smells Like Teen Spirit

Product Differentiation

AXE provides child safety features in its deodorants with the technology of DRAG and CLICK. Its shape is perfectly designed to have a great grip in your hand. Its revolutionized TEEN SPIRIT technology has differentiated it from the rest.

Services Differentiation

Its single spray is enough to keep you away from bad odor for 36 hours. It is available in six different fragrances of your choice.

Channel Differentiation

We promise to give our customers the best distribution system among our competitors. AXE is easily available on super stores like AGHSs, NAHEED, IMTIAZ STORE, etc. We will also make sure that AXE is available to our target market, even at University. We can reach these areas from media, newspaper, internet (through eBay and Amazon)

Image Differentiation

With the continuous efforts and commitment to hard work involved in launching AXE, soon we will be able to succeed in building a reputable image in the eyes of our target market. Our emphasis is on reality and facts rather than creating fantasies by projecting a fake and glamorous image of brand.

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AXE- Smells Like Teen Spirit

PRICING STRATEGY
PRODUCT
AXE deodorant is a necessity product for all the heavy sweaters. The product AXE has five components:

AXE is packaged in two containers: primary and secondary. Primary: it a hard metal container of 150 ml in the shape of timepiece. Secondary: an attractive container with multi colors. It has six fragrances:

Green Emerald - for newly married couples, Galatea for girls, Rock Zeppelin mature adults (20-25), Blue Serpent young boys (18-20), Catalan Rulz sports collection (18-30) Silver Sapphire it is one size fits all fragrance.

The ingredients involve in the preparation of deodorants, in highlighted on the backside of both the containers (primary and secondary). The name AXE with its tagline Smells Like TEEN SPIRIT is pasted in its both packaging.

PRICE
Since AXE targets the niche market, therefore its pricing is premium and is also available in 125 ml and 150 ml.

Price Of AXE Deodorant (125 ml)

Original Price (+) Government Tax (15%) (+) Retailers Cost (18%) (+) Advertising Cost (+) Distributors Margin SELLING PRICE TO CUSTOMER Rs. 90 Rs. 13.5 Rs. 16.2 Rs. 6.3 Rs. 9.0 Rs. 135

Price Of AXE Deodorant (150 ml)

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Original Price (+) Government Tax (15%) (+) Retailers Cost (18%) (+) Advertising Cost (+) Distributors Margin SELLING PRICE TO CUSTOMER

Rs. 100 Rs. 15 Rs. 18 Rs. 7.5 Rs. 9.5 Rs. 150

PLACE
Since AXE is launched in three cities of Pakistan (Karachi, Lahore and Islamabad), therefore it is easily available in 70 super stores of these cities like Aghas, Imtiaz, S Mart, D Mart, Time Medico KARACHI. Pace, Cotpurri, etc. LAHORE. Super Jinnah Store ISLAMABAD.

PROMOTION
Our advertising department has extensively researched a market situation and came up with the following promotional activities:

AXE will be advertised on television through commercial, in print media through printed ads and on billboards/hoardings and in the form of teasers. Organize an event in Area 51 in the name of TEEN SPIRIT BOWLING ALLEY

DISTRIBUTION STRATEGY

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EXCLUSIVE DISTRIBUTION
Exclusive distribution is appropriate for AXE deodorant. We are distributing only a limited number of dealers that has the exclusive right to distribute our product in their territories. Our main aim is to penetrate into the market through major chains of stores. Karachi, Lahore and Islamabad are three major cities, which have higher potential for our product. We are focusing on these cities for distribution of our product because people in these areas are aware of deodorants and other stuff. Moreover, they are concerned about their personality, so they do buy these types of products. We will distribute our product in these cities through particular chains of stores in the major area.

KARACHI
Major areas are defence, Clifton, Bahadurabad and Gurumander. We have Deltons, Askaris and Amis in Defence. Aghas Super Market, D-Mart in Clifton, Naheed Super Store in Bahadurabad. Stop and Buy in gurumander, Imtiaz Super Store at Sharaeh-efaisal and Bahadurabad, Shazz at Stadium Road. These are the stores through which we will distribute our product because people frequently visit these stores for their everyday buying.

LAHORE
Major areas are Gulberg, Cannt., Defence, Shaadban. We have Pace and Cotpurri in Gulberg, Enem Store in Defence. H.Karim Buksh Store has a vast chain of stores all over Lahore.

ISLAMABAD
Major area is Blue Area. We have Super Jinnah
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Store in Blue Area. With the help of these chains of stores, we can reach these cities where there is a high potential for our product and can easily penetrate into the market.

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ANALYSIS OF DISTRIBUTION
We have distributed the AXE deodorant in the above-mentioned stores and breaf-up distribution is shown in the table below:

Stores in Karachi:
Stores Aghas Deltons Imtiaz (Both Store) Time Medico Naheed Askaris Amis Stop and Buy Shazz D-Mart Number Of AXE To Be Distributed
,

18,000 9,000 24,000 6,000 16,000 7,000 3,500

,

9,000 8,000 4,000 Total = 104,500

Stores In Lahore:
Stores Pace Cotpurri Enem H. Karim Buksh Number Of AXE To Be Distributed 23,000 16,000 14,500 13,750 Total = 67,250

Stores In Islamabad:
Stores Jinnah Super Store Number Of AXE To Be Distributed
,

32,000 Total = 32,000

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ADVERTISING STRATEGY:
We have used several advertising strategies to communicate with our target market. This will allow our target market to get aware of the brand, compelled to try the product and experience the freshness and confidence it promises. Following are the advertising strategies:

TELEVISION MEDIA
Television media is necessary for the advertisement of AXE because it gives visual effects with motion picture to our viewer. We will give advertisements on AAG, MTV Pakistan and The Musik. We have selected these channels because most of our target market is a regular viewer of these channels.

AAG: (Space To Empower YOUth)

AAG is a space where youth could come to gather and express themselves as a community of individuals. AAG is predicated on the impulse to set free the spirits of youth. The reason to advertise on AAG is that the channel provide youth (including our target market) with an environment where they can air their views, stimulate their vision, engage their peers, confront their fears and share their dreams through debate, music, drama, speaking up, confessions and humor. All in all, it is a youth empowered channel and it will worth advertising on it.

MTV Pakistan:
However, the channel is new compare to The Musik, but it the channel that is the perfect symbol of the television industry in Pakistan: fast-moving, ever-growing and young. It is an appropriate channel to advertise AXE because it has largely captured the attention of our target market in no time.

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THE MUSIK:
THE MUSIK is also a decent youth targeted channel of Pakistan and is one of the first Satellite channels having live link-ups between its studios based in London UK, Pakistan, Dubai and India. Another reason to advertise on THE MUSIK (satellite channel) is that there are less restrictions and limitations set by the sensor committee on our advertisements. Our target is to penetrate into our target market by sponsoring the LIVING ON THE EDGE (biggest youth show of Pakistan). Number of Advertisements per day 4 6 6 10:35/ 07:42/ 10:35/ 07:40/

Channels AAG MTV Pakistan THE MUSIK

Timings 11:45/ 07:35 /09:05/ 11:20 01:10/ 08:36/ 12:48/ 09:15/ 06:03/ 09:30 06:02/ 11:25

PRINT MEDIA
NEWSPAPER
o DAWN Dawn is the most liberal newspaper in South Asia and it seems to be a good option to advertise on DAWN because it can easily reach to our target market because of its vast coverage and acceptance. We have published an advertisement of 15x4 that would be enough to grab our target markets attraction. o Daily Times Daily Times is widely known for its liberal dealing with issues and ideas. Its colorful and attractive layout has made it unique from other newspaper. It has the same aggressive nature as our youth, so it would be a better option to give advertisement on it.

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Newspaper DAWN Daily Times

Advertisements to be published Once in a week for 3 months Once in two week for 2 months

BILLBOARDS
We have installed four billboards on the following four major roads. o o o o TARIQ ROAD (Near ALLAH WALI Chowrangi) NORTH NAZIMABAD (Near KDA Chowrangi) SHARAH-E-FAISAL (Opposite FTC Building) SCHON CHOWRANGI

These are the prime locations for billboard because these areas face heavy traffic daily and catch the attention of car-drivers when traffic signal is red. The pedestrians also see these billboards. We will start our campaign of billboard advertisement by the name of ALLAH i.e. quote Quranic verses or Ayahs for two weeks. Then, we can display teasers to arouse the curiosity of our target market. The teaser WHAT ARE YOU SMELL OF???? would display for one month and after that the original advertisement of AXE would display. This 3-D images design is a revolutionized technology because it gives different views (different fragrances) of AXE to the viewers depending upon their point of observation. For example, the billboard at TEEN TALWAR, if the person coming from Board Basin to Do Talwaar then he/she could see the Green Emerald of AXE, person coming from Clifton will see the Blue Serpent of AXE, person coming from Forum will see the Catalan Rulz fragrance of AXE and finally the person coming from Saddar would see the Zircon Sapphire of AXE.

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FINANCIAL ANALYSIS
TELEVISION MEDIA
Channels AAG MTV Pakistan THE MUSIK Number of Advertisements per day 4 6 6 Timings 11:45/ 09:05/ 10:35/ 06:03/ 08:36/ 10:35/ 06:02/ 09:15/ 07:35 / 11:20 01:10/ 07:42/ 09:30 12:48/ 07:40/ 11:25 Cost Of Each Advertisement
,

Total Cost Rs. 51,040 Rs. 76,560 Rs. 76,560

Rs.12,760 Rs.12,760 Rs.12,760

PRINT MEDIA
Newspaper Advertisement s to be publishe d Once in a week for 3 months Once in two week for 2 months Rate of 15x4 News pape r 61,700 53,475 Rate of 18x 3 New spap er 81,950 63,220 Total Cost

DAWN Daily Times

Rs. 172,3800 Rs. 466,780

BILLBOARDS
Place Size Rent per month Printing and other expenses Rs. 35,200/= Rs. 38,450/= Rs. 36,700/=
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Tariq road North Nazimabad Sharah-e-Faisal

20x40 25x45 30x50

Rs. 450,000/= Rs. 418,000/= Rs. 549,000/=

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AXE- Smells Like Teen Spirit

Schon Chowrangi

25x45

Rs. 610,000/=

Rs. 38,900/=

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