AXE Situation Analysis The Third Wheel: Abby Levenhagen, Claudia Shapiro, Jenna LeRoy and Molly McCall

1. History / Industry Trends

Introduction of AXE to the Grooming-Product Industry: • The AXE was initially launched in France in 1983 by the cosmetics brand, Fabergé. In 1989, Fabergé Inc. was absorbed by , a multinational consumer goods company. http://www.unileverusa.com/brands-in-action/detail/AXE-/298199/ http://www.basenotes.net/company/102709 • “The brand was launched as Lynx in the UK back in 1985 (It is also known as Lynx in Ireland, Australia and New Zealand). South Africans knew the brand as Ego until that became AXE in 2002.” http://www.basenotes.net/company/102709 • After finding success in Europe, Latin America and other parts of the globe, Unilever spent $90 million introducing AXE to the U.S. and Canada in the summer of 2002. http://www.unileverusa.com/brands-in-action/detail/AXE-/298199/ http://www.basenotes.net/company/102709 • “After immediate success with [their] iconic bodysprays, AXE launched a line of anti-perspirant and deodorant sticks in 2004.” http://www.unileverusa.com/brands-in-action/detail/AXE-/298199/ • “[AXE] then expanded into shower gels in 2005, a full line of hair care products for guys in 2009 and entered the face care space for guys in 2013.” http://www.unileverusa.com/brands-in-action/detail/AXE-/298199/ • “In 2015, [AXE] rocked the grooming category again by introducing AXE White Label, a refined grooming line designed to boost guys’ confidence by helping them look and feel their finest.” http://www.unileverusa.com/brands-in-action/detail/AXE-/298199/ • “Today AXE is the biggest mens toiletries brand in the world and is market leader in most of the [~90] countries it sells in, with a 10%-20% share of the market.” http://www.basenotes.net/company/102709 • “The brand has partnered with countless tastemakers and celebrities, and created exclusive content and experiences for [the AXE] community of guys and girls all over the world.” http://www.unileverusa.com/brands-in-action/detail/AXE-/298199/

History of AXE Brand Development and Industry Trends • “Unilever first analyzed the potential AXE user by breaking males down into six profiles: 1. The Predator -- He takes advantage of drunk girls, and lies about his job and where he lives 2. Natural Talent -- Athletic, smart, and confident. He doesn't need to lie to score 3. Marriage Material -- Humble and respectful, he's the sort of guy you want to bring home to Mom and Dad 4. Always the Friend -- He always hits that glass ceiling 5. The Insecure Novice -- He has absolutely no clue what he's doing, and things get awkward fast -- the geeks and nerds 6. The Enthusiastic Novice -- He has absolutely no clue what he's doing, but he's outgoing and tries valiantly anyway” • “Then, they determined that The Insecure Novice would be their natural target, since he needs the most help in getting women, and would be easily persuaded into buying a product that could aid the woes of nerdhood.” • “Next came the ads themselves. The Axe TV ads proclaim that it will help you get chicks. And not just one at a time -- their research showed that the ultimate male fantasy is to be irresistible to several sexy women.” • “The result? Axe became the #1 male antiperspirant/deodorant brand. It actually worked too well -- they had to backpedal a bit from the image because Axe had gained a reputation as a product that only losers use. Also, high school kids would even totally douse themselves in Axe, getting the brand into trouble with some school districts.” • “But overall, Axe has been a huge success because of how it targeted its marketing and took advantage of sexual fantasies. It still runs similarly themed ads.” http://www.businessinsider.com/axe-advertising-unilever-brandwashed-2011- 10

The AXE Range • “The range consists of around six fragrances. To ensure that the range is kept on the ball with current fragrance market trends, a new version is launched each year with the poorest selling scent quietly dropped.” • “The new fragrances are normally launched in January of each year and tend to be based on the most popular fine fragrance trends of the time - this is why Axe / Lynx products tend to smell better than your average deodorant.” • “The range was introduced to the USA and Canada in 2002 with six fragrances: Axe Phoenix, Axe Orion, Axe Kilo, Axe Voodoo, Axe Tsunami and Axe Apollo.” http://www.basenotes.net/company/102709

2. Competitive Analysis, including rival and partner brands • AXE’s rival brands: o Old Spice o Right Guard o Secret o Gillette o Nivea for Men http://www.statista.com/statistics/194809/leading-us-deodorant- brands-in-2013-based-on-sales/ http://www.brandindex.com/article/old-spice-and-right-guard-muscle- some-buzz • AXE’s partner brands: o Degree o for Men o for Men http://www.unileverusa.com/brands-in-action/view- brands.aspx?view=AtoZ

3. Consumer Analysis, including users, purchasers, and influencers • “Axe often visits college campuses and talks to students to discover what topics and themes will captivate their Millennial customers. Right now, McCarthy says, those topics are peace and harmony.” (http://time.com/5673/how-axe-made-the-ad-everybody-is-talking-about/) • “Oft perceived as innovators, trend starters and predictors of the next big thing, Millennial males lead the pack, in one way or the other.” • “Today's Millennials are the most racially diverse generation in U.S. history, with nearly 43% identifying as non-white*. They also have spending power.” • “...data shows that Millennial males are not only receptive to marketing, but that they proactively try to learn more about the companies they hear about or do business with—and their interest is growing.” • “‘Normal’ guys in extreme or exaggerated situations have the strongest effect with this segment, and though humor is a winning characteristic across all audiences, slapstick, edgy and sarcastic humor resonates highly with younger men” http://www.nielsen.com/us/en/insights/news/2014/the-men-the-myths-the- legends-why-millennial-dudes-might-be-more-receptive-to-marketing.html

After Shave/Cologne Used Last 12 Months (INDEX)

Axe Gillette Nivea For Men Old Spice

Males 18-24 319 167 196 88*

Males 25-34 279 229 331 168

Males 35-44 198 234 226 140

Males 45-54 183 166 157 183

Males 55+ 96 163 122 301

Body Wash Brands Used Most (INDEX)

Axe Dove Gillette Nivea Old Spice High Endurance

Males 18-24 166 110 105 99* 183

Males 25-34 164 109 178 110 158

Males 35-44 171 99 148 147 115

Males 45-54 112 77 102 113 124

Males 55+ 42 68 74 67 86

Deodorants/Anti-Perspirants Brands Used Most (INDEX)

Axe Dove Degree Gillette Old Spice Old Spice High Classic Endurance

Males 18- 407 30* 129 125 201 198 24

Males 25- 263 19* 133 215 151 318 34

Males 35- 233 25* 127 189 88 151 44

Males 45- 120 18 119 227 207 190 55

Males 55+ 62 18 66 153 241 148

Body Wash Brands Used Most Often (Index)

Axe Bath&Body Works Dial Dove Neutrogena Suave

Females 18-24 193 130 154 122 149 113

Females 25-34 155 106 110 117 133 127

Females 35-44 157 105 122 109 62 132

Females 45-54 85 103 69 85 92 110

Females 55+ 24 84 84 88 91 62

Race: Race: Race: Race: HH HH HH White Black Asian Some Income Income Income Other >$20K $25-49K $50K or Race more

Used AXE 88 185 81** 98 105 109 96 Aftershave/ Cologne Last 12 mo

4. Brand Analysis, including product information and positioning • “With a full line of grooming products including daily fragrance sprays, deodorants, anti-perspirants, shower gels, shampoos and styling products, AXE helps give guys the edge to feel their best.” • “In addition to being the #1 men’s fragrance brand*, AXE is a lifestyle brand that engages guys and girls with unique experiences like no other brand can.” http://www.unileverusa.com/brands-in-action/detail/AXE-/298199/ • AXE continues to call itself the number one men’s fragrance brand. They position themselves as the girl-getting fragrance, using sexual print and TV ads to achieve what is termed “The AXE Effect.” • However, the AXE brand’s positioning has been lagging over the past few years when compared to its competitors, mainly Old Spice. • “Scorching weather in the US has put the focus on deodorants and Old Spice and Right Guard are hitting the best consumer perception numbers of the year for men 18 - 34, as AXE has experienced a recent decline according to YouGov BrandIndex data.” • Lagging behind the others is Unilever’s AXE, which has been losing its mojo with young men since December.” • “AXE slipped into negative perception territory during the middle of July, now down to -11 from 4 earlier in the month.” http://www.brandindex.com/article/old-spice-and-right-guard-muscle-some- buzz

5. Media Usage Analysis • “Millennial males spend less time on average each week consuming traditional TV—only 20 hours, compared to 23 hours for Millennial females...This group spends significantly more time per week (2 hours 15 minutes) than any other demographic watching videos on the Internet.” • “While these young men are united by age, the group is diverse and their habits can vary by their ethnicity. African-American Millennial males, for example, spend significantly more time watching content than Millennial men as a whole: these viewers spend nearly 33 hours a week with traditional TV and 3 hours watching videos on the Internet.” • “Millennial men are also heavy music listeners. Eighty-eight percent of all Millennial males in the U.S. listen to radio each week, spending more time than their female counterparts tuned in...They also show greater interest in personalized streaming audio services—think Spotify or Pandora—than other demographics.” • “Millennials are more likely than Gen X or Boomers to hear of what's going on with companies through social media tools, such as Facebook, Twitter or blogs. They're also more likely to trust the information they learn about a company through social media than information offered elsewhere. “ http://www.nielsen.com/us/en/insights/news/2014/the-men-the-myths-the- legends-why-millennial-dudes-might-be-more-receptive-to-marketing.html

Websites Used/Visited Last 30 Days - Males (INDEX)

ESP Facebo Hul Marketwat Fox Netfli Pandor Twitt Youtub N ok u ch Sport x a er e s

Male 194 137 140 91* 155 164 159 183 162 s 18- 24

Male 251 121 175 97* 245 155 198 183 154 s 25- 34

Male 211 103 157 104 202 140 119 95 118 s 35- 44

Male 162 76 86 170 192 72 67 54 92 s 45- 54

Male 82 40 41 126 100 46 28 32 44 s 55+

Magazines Read/Looked Into Last 6 Months - Males (INDEX)

Car Cosm ESP Fitnes GQ Healt Peopl Seventee Sports and o N s h e n Illustrate Drive d r

Male 107 52* 240 76* 20 63* 30 70* 161 s 18- 4 24

Male 192 53* 271 71* 20 45* 39 21* 155 s 25- 7 34

Male 235 20* 214 37* 14 14* 51 7* 201 s 35- 4 44

Male 190 21* 146 53* 16 44* 60 33* 167 s 44- 0 54

Male 165 20 74 42 76 52 68 36* 164 s 55+

Websites Used/Visited Last 30 Days - Females (INDEX)

ESP Facebo Hul Marketwat Fox Netfli Pandor Twitt Youtub N ok u ch Sport x a er e s

Femal 64 175 248 172 45* 165 249 349 193 e 18- 24

Femal 51 157 151 60* 39* 156 158 116 144 e 25- 34

Femal 48 144 101 102 41* 142 139 169 129 e 35- 44

Femal 35 108 72 102 36* 72 67 53 81 e 45- 54

Femal 21 62 23 39* 26* 40 24 19 41 e 55+

Magazines Read/Looked Into Last 6 Months - Female (INDEX)

Car Cosm ESP Fitnes G Healt Peopl Seventee Sports and o N s Q h e n Illustrate Drive d r

Femal 21* 405 84* 208 12 100* 129 682 31* e 18- 9 24

Femal 30* 255 53* 116 70* 167 143 168 29 e 25- 34

Femal 34* 188 40* 190 59* 141 149 128 31 e 35- 44

Femal 10* 117 18* 186 60* 179 156 115 43 e 44- 54

Femal 27 61 16* 93 29 155 141 38 36 e 55+

6. Category Creative Analysis • “Their ads are well known for their sexual humor and exaggerated scenarios that play into male fantasies.” http://time.com/5673/how-axe-made-the-ad- everybody-is-talking-about/ • Previous slogans/taglines: o Axe Vice: “Turns nice girls naughty” o Axe Recovery Shower Gel: “Wash away your hangover” o Axe: “Any excuse to get dirty” o The Axe Effect: “Imagine the power of Axe” • Visuals imply sex, girls can’t resist a man who wears Axe • Axe makes you wanted, etc http://www.designyourway.net/blog/inspiration/66-axe-print-advertisements- and-tv-commercials/

Past Creative Campaigns • 2012 - Axe Excite o “The second-ever Creative Effectiveness Grand Prix awarded at the annual ad fest in the South of France went to Unilever for its Axe ‘Excite’ campaign by BBH, London.” o “..the centerpiece of the "Excite" campaign is a dramatic commercial in which angels -- not the cupid kind, but the voluptuous, sexy and beautiful Victoria's Secret kind-- fall upon a small town from the heavens. As they walk through the , everyone stops cold in their footsteps, stunned by their beauty. They walk in unison until they stop in front of a man who, of course, wears Axe, and then they one by one rip off their halos and throw them at the ground, smashing them to bits. The tagline at the end says: "Even Angels Will Fall." http://adage.com/article/special-report-cannes-2012/creative- effectiveness-cannes-lion-unilever-s-axe/235476/ • 2012 - “Susan Glen” o “Axe takes on a more sophisticated approach...looks at dream women in a more contemplative way, via the point of view of a very familiar action stud, who may have not been seen as such, back in the day. The spot hinges on the idea of "the one that got away." In this case, she's represented by Susan Glenn, and the protagonist's V.O. reminisces about how he never had the courage to ask her out. The big reveal, however makes the point that he should have had the guts to do so--because he turned out to be someone pretty damn awesome.” http://creativity-online.com/work/axe-susan-glenn/28421 • 2013 - Axe Apollo ad campaign by BBH Global o “The company this week launched a contest to gather 22 people for a trip to space... Axe even managed to get Buzz Aldrin...to announce the campaign” o “a handsome fireman braves a burning building to save the pretty girl trapped within. He removes his fireman's coat, wraps it around the damsel in distress (this initially appears to be a segue into a striptease routine, but alas, it's just an act of kindness) and carries her out of the building. At this point the woman appears suitably love-struck—until, that is, a fully suited astronaut approaches out of nowhere. The damsel immediately abandons her rescuer to go flirt with the man in the big white onesie, because, as Axe informs us, ‘Nothing beats an astronaut. Ever.’” http://www.adweek.com/news/advertising-branding/ad-day-axe- 146459 • Copy: “Leave a man. Come back a hero. Axe Apollo Space Academy.” o “The fully connected campaign included web build, TV, press, digital, click farm, online and events. Thousands entered for a chance to go to Space Camp in Florida.” http://www.bartleboglehegarty.com/work/apollo/ • 2014 - Axe Peace ad - “Make Love, Not War” by BBH Global o “Instead of focusing on broad humor, the company’s Super Bowl spot to promote the new Axe Peace fragrance line is a sprawling epic that seemingly spans to span continents and generations.” o “The commercial...begins with a montage of classic wartime images. Midway through, though, the narrative is turned on its head as each invader is revealed to actually be making a loving gesture toward a woman.” Idea that romance sells rather than sex that Axe usually uses. o Copy: “Make love, not war with new Axe Peace.” o “The promotional campaign also includes a #KissForPeace Twitter hashtag, through which users can submit photos of themselves kissing to Axe.” o “[Matthew McCarthy, Axe’s senior marketing director] thinks they’ve hit a note that resonates with their Millennial demographic. ‘Being relevant is more important than anything else,’ he says. ‘If you’re not relevant, you’re nothing to young people.’” http://time.com/5673/how-axe-made-the-ad-everybody-is-talking- about/ • 2014- Axe White Label o “Axe is edging further away from its heritage of ads about sex with a campaign for the new Axe White Label line...aimed at sophisticated men seeking serious grooming -- and not just to attract women.” o “One new ad from BBH...shows women fantasizing that a man is a movie star or someone else famous. But it also shows a little boy, an old man and a Russian general fantasizing about who the mysterious and impeccably groomed stranger strutting confidently through the lobby of a swanky hotel is...He turns out to be a hotel worker.” o Copy: How you feel says it all. o “...the idea is that "confidence really emanates from within and doesn't depend on the products that you use," said Matthew McCarthy, Unilever senior director of Axe and men's grooming.” http://adage.com/article/cmo-strategy/unilever-s-axe-takes-college- football-playoffs/296375/ • 2014 - Axe Dark & Axe Gold Shower Gels o “Axe is doing something it's never tried before -- an ad that features no boy-girl interplay whatsoever, not even the high-concept sort it's tried at times in recent years” o “The new ad for Gold Temptation from Ponce...shows a factory line pumping out such things as a chocolate bunny and the gold bust of a goddess, cutting to two related yet different body washes.” o “‘...a fragrance that was as irresistible as chocolate,’ said Matthew McCarthy, Axe senior marketing director. ‘Gold Temptation is really built on the insight that temptation between boys and girl has many facets. It's not just a sexual temptation."

7. Public Opinion and Stakeholder Analysis • Women reacted more favorably than men to the AXE brand after the launch of its unisex fragrance, Anarchy, in 2012. “On January 2nd, Axe’s perception with men and women was quite close: men had a 29 buzz score and women had a 26 score. When Anarchy debuted on January 31st, the men buzz score remained steady at 29 while it nearly doubled to 53 for women. The Men’s score currently stands at 25, back to earlier levels. The women’s buzz score for Axe is now 41, down considerably since its peak, but still ahead of men by a comfortable margin.” http://www.brandindex.com/article/axe-launches- anarchy • Stakeholders: • Unilever Corporation and shareholders • AXE employees • AXE customers • Department stores • Spokesperson (currently John Legend)

8. SWOT Analysis Strengths: • Currently in position as market leader • Strong brand recognition/awareness • Releases engaging, memorable, and frequently talked about campaigns • Wide extension around the globe (sells in more than 90 countries)

Weaknesses: • Sexist reputation due to large quantity of ads that objectify women • Reputation as an overpowering scent that teenage boys overuse • Rarely advertises for any AXE products besides the spray products, which means limited exposure for the majority of what the brand offers • Concrete target market already established (males, ages 16-30)

Opportunities: • Target a female audience • Appeal to a more sophisticated audience (new AXE White Label) • Partner up with hotel and gym chains

Threats: • Rival brands copying AXE promotional strategies • Environmentalists (spray is harmful to environment) • Feminists (sexist campaigns)