Anti-aging Hand Soap SoftSoap Colgate-Palmolive Group #9 Antoine Béguerie, Brennan Eccles, Matt Haug, Hayden Hirsch, Daina Larkin, Torri Santander Section #3, SDSU MKTG371, Fall 2012 1 I. EXPLORER STAGE a. Explore the Product Client: • #1 recommended by dentists for oral care • Approximately 36,000 employees • Most used company worldwide for oral care • Sold in 200 countries and territories • #1 liquid hand soap provider worldwide Colgate-Palmolive is an American company focused on the production, distribution and sales of a range of household products. Starting in New York during the year of 1806 by William Colgate, the company began with a small product offering of candles, soap, and starch. By 1873 Colgate had expanded its enterprise and its product offerings to include perfumed soap, toothpaste, and trademarked perfumed toilet soap. By the turn of the 20th Century, Colgate celebrated its 100 years of existence and began to expand to markets in Asia, Europe, Latin America, and Africa. In 1928 Colgate merged with Palmolive-Peet and went public on the New York Stock Exchange two years later. After years of excellence and innovation, present day Colgate-Palmolive has annual sales of $15 billion and focuses on oral care, personal care, home care, and pet nutrition. A portion of their successes can be attributed to Amy Baer, the Senior Manager of Consumer Insights, and her teammates Francesca Cruz and Rebecca Green Heagney. With innovation being a key value of Colgate-Palmolive, Amy and her team are constantly finding new ways to take the company to the next level, and either gain or sustain market share. Products like the disposable toothbrush “Wisp” and their “Colgate Optic White” toothpaste are prime examples of their innovative ideas bringing ColgatePalmolive much success. 2 Product: Colgate-Palmolive is one of the most prevailing brands among household products. With one of their most popular products being their liquid hand soap, “Softsoap,” Colgate-Palmolive must maintain a unique selling proposition to uphold their brand name. Softsoap’s specific unique selling proposition is to produce liquid hand soaps that are fashionable for your home, affordable, and diverse to fulfill every consumer’s wants and needs. Although they have to compete against their largest competitors: private label companies, and their low prices, Softsoap’s reasonable pricing matched with their attractive packaging and a variety of colors and senses make them appealing in a highly competitive market. Softsoap provides a variety of product lines to fit every consumer’s needs, whether it be soap for your kitchen with their Kitchen Fresh Hands line, soap with a color or scent to accent your guest bathroom, or a child-friendly soap for you kids displaying their favorite TV character from their Kids Collection. As a company, Colgate-Palmolive likes to relate themselves to personalities and values such as pride, excitement, outgoingness, and dynamic and savvy products/ consumers, which is reflected in their Softsoap products and provides them with their very own unique selling proposition. Competitors: Colgate-Palmolive is a worldwide enterprise whose products focus on oral, personal, home, and pet care. Like any other major enterprises, Colgate-Palmolive does have to face the challenges that arise when competing with other comparable companies. According to the Colgate-Palmolive representatives, some of the company’s major competitors are private label companies, Dial, Lysol, and Method brands. 3 Private Label Brands: Private label companies have posed the biggest threat largely due to their ability to offer lower prices. Their products offer the unique selling proposition that the brand is directly correlated to the store in which it is offered. These products are advertised and put on display throughout the store on a substantially higher level than other brands. These private label company products are also backed by coupon add support that also contributes to making them more appealing to consumers and hard to compete with. Dial and Lysol: Two large and very recognizable soap production companies, Dial and Lysol, are continuously competing with Colgate-Palmolive for the newest and most innovative idea to introduce to the market. A major turning point for the Colgate-Palmolive Company was when Lysol developed and launched the motion detected soap dispenser during the time of the Swine Flu outbreak. With its major selling proposition being that its customers would come in contact with fewer germs by not having to physically touch the soap dispenser during a time in which sanitation measures were taken seriously, the motion detected soap dispenser was immensely successful. Method: Created by Adam Lowry and Eric Ryan, Method soap is one of the fastestgrowing private companies in America (Method). Their product is a unique eye-catching teardrop shape that is planet-friendly and comes in an assortment of colors to match any room. The company has made partnerships with large retail stores, such as Target, who dedicate a large portion of their shelving space to the many colored containers of Method soap, acting as its own form of attention grabbing advertisement. With the Method soap 4 company being attractive because of its newness it has the potential for becoming a bigger threat then it already appears. Up and Coming Brands: Lastly, the Colgate-Palmolive Company must also remain alert and aware of any up-and-coming companies that may pose as potential threats. An example of this is the newly launched Güd hand soap by the Burt’s Bees Company. As a natural foaming hand wash, the soap line will catch the attention of eco-friendly consumers-- a trend that is vastly growing in today’s market. Target Markets: Colgate-Palmolive has identified a specific target consumer who is the focus of their marketing efforts. This consumer is referred to as “Laurie”. Target Consumer Demographics: • Female • Works full or part time • 41 years old • Has a family with children • Lives in suburbs Target Consumer Psychographics: Laurie is aware of what others think of her and her family. Being perceived as a good housewife and mother is very important and shapes a lot of her decisions. She views her family as an extension of her own image, so she spends even more time making sure that they look presentable than she does on herself. Laurie also takes pride in her home and likes to add special home accents throughout her house. Her favorite place to shop for these “special touch” type products is in home goods stores. She purchases the more utilitarian products for the household at Target and Wal-Mart. 5 When it comes to hand soap, Laurie is not loyal to one specific brand. Instead, she buys different brands of soaps based on in which area of her home they will be used. In the Kitchen and Bathroom, Dial and Lysol brands are used because Laurie sees them as have more cleansing power than the others. In the guest bathroom, Laurie splurges for the more expensive soap and buys it because of the way it looks. In the master bedroom, the target consumer most often uses discount store brands. She would rather save money than spend it on herself. Teaching her children how to properly wash their hands is important to her. Women Age 25-55: • Respond to traditional sales techniques • Enjoy household shopping • Buy on impulse • Prepare less for shopping trips A more broad segment of the target market includes all women from 25- 55 years old is also included in the target market. Women are more likely to: Benefits of Colgate-Palmolive Softsoap: The primary function of liquid hand soap is to sanitize and cleanse the hands with applied friction. However, Colgate-Palmolive’s hand soap products provide more for their customers than the average product due to its array of benefits within its Softsoap brand. Within Softsoap’s product line are products that contain unique attributes designed to “benefit” the consumer to their preference such as Advanced Benefits, Pampered Hands Foam, Classics, and Kids. The Advanced Benefits Collection is a prime model of how Softsoap addresses benefits directly. For example, the Kitchen Fresh Hands soap is designed to neutralize “lingering kitchen odors” with a blast of citrus scent. This feature is also accompanied 6 with tiny beads (that) deliver sunny bursts of skin-softening moisture” to leave hands nourished. More of the collection’s benefits include soap that indulge the hand washing experience with Shea butter, Pomegranate & Mango extract, Aloe Vera and Sea minerals to soften and enhance the users skin when applied. Another benefit Softsoap utilizes within its Classic Collection are the themes used to satisfy their target market. Each one of these soaps are complementary to common bathroom “themes” through color, smell and aesthetics. These preferences are taken into account by a high percentage of their customers entering a purchase decision. This original success has only been built on when Softsoap introduce additional benefits such as moisturizers and anti-bacterial features. The most recent and innovative benefits that the Softsoap brand provides are within the Pampered Hands and Kids Collections. The containers from these collections expel the soap in a convenient “foam” form. Applied with the benefits from other popular collections, the consumer is receives the same Softsoap experience in a gentler cleanse. Also, for the younger target market, Spongebob Squarepants and Dora the Explorer provide yet another benefit of “fun” for the hand washing routine. New Product Objectives: Colgate-Palmolive’s vision is to become the greatest global consumer products company. A major company goal is to not only increase Colgate-Palmolive’s market share, but also increase the entire product category through innovation. The new product has to be innovative and must stand out from the competition as much as possible in the liquid hand soap product market. The perfect hand soap would have the best cleansing experience with the right amount of sanitization/cleaning for the consumer his or her 7 family on every washing occasion. The challenge is to find an original and unexpected product with an outstanding position, which will fulfill a foreseeable goal. At the same time, Colgate-Palmolive must continue to focus on the features their consumers care most about and directly relate to the company: • On trend fragrances • Decor, pleasure and fun • Protection & efficiency • Skin care benefits Remaining aware of the company’s unique selling proposition and that of their competitors within the market is still important. Conclusion: In conclusion, research showed us that Colgate-Palmolive is the #1 provider of liquid hand soap in today’s current market; with Softsoap being the clear market leader. With its products being sold in 200 countries and territories worldwide, the ColgatePalmolive Company has a strong market presence and continues to maintain it by continuously developing innovative and desirable products. Research also showed us that consumers in the hand soap market are not strictly loyal to one specific brand, which creates and leaves competition open in the marketplace. Most of the company’s Marketing and Product Development efforts are focused on female consumers (“Laurie”), leaving an opening in the market for male focused products. b. Explore the Consumer Description of Interviewee: Zachary Carney: Low-Involvement Zachary is a 22 year-old male currently living in the Pacific Beach Area of San Diego, California. Zach works part time in retail and is a full-time student at San Diego State University, which gives him a particular low disposable income of under $5,000.00 per year. His day-to-day activities include surfing whenever possible, weight lifting, and training 8 in the martial arts of jiu-jitsu. Due to his numerous hobbies, work, and school, Zach tends to be an impulsive buyer. He has limited time to devote to shopping for household products and groceries. Zach has recently returned to San Diego after being a six-month resident of Bali, Indonesia where he furthered his collegiate studies and traveled throughout Southeast Asia. When he was not in school or working, Zach was traveling across the world on surfing excursions. The majority of the areas that Zach traveled to were third-world countries suffering from poverty and overpopulation. In these specific regions the cultures do not socially or economically stimulate a high-involvement of hand sanitation. With Zach’s current low-maintenance lifestyle, low student income, and gender-based characteristics, the cleanliness of his hands is seen as a low priority. Summary of Our Findings: When interviewing Zach, it was found that he is a brand switcher when it comes to the liquid hand soap product category. He has very little loyalty to Colgate-Palmolive’s Softsoap and also does not have preferences in the liquid hand-soap product category as a whole. According to Zach, he only uses soap because it is considered a socially acceptable part of the culture that he is a part of in the United States. While studying abroad in Bali, Indonesia, Zach rarely used liquid hand soap at all because the surrounding culture did not look at him poorly for not washing his hands like people the U.S often would. This shows that Zach has a hedonic motivation because he uses hand soap to be accepted by others; not because of a utilitarian motivation to remove germs from his hands. Zachary explained that he has never actually purchased liquid hand-soap for himself. Either his roommates or his mother has always made this purchase. He also mentioned his mother when he described his associations to the word “soap”. It reminded him of when his mother would always make him wash his hands as a child, which could evoke certain negative connotations with hand soap or have negative priming effects for the 9 product category. This association could directly correlate to Zach admitting that he washes his hands only “sometimes” on a scale including never, sometimes, often, and constantly. Convenience is the most important factor that leads Zach to purchase his liquid hand-soap alternative: hand sanitizer. He is not affected by marketing efforts outside of the immediate grocery store environment because he does not invest his time into preparing to shop for household goods. In-store displays of hand sanitizer at the cash register catch his attention because he is a low involvement impulsive buyer of these kinds of products. Conclusion: Being a low-involvement hand soap user, Zachary still associates “cleanliness” with Softsoap brands. For the majority, however; Zach prefers convenience when considering hand sanitation over any prominent attribute. From his perspective, he believes that hand soap use and purchases are derived from a feminist perspective and societal pressure. Although aesthetics is not the most paramount feature of hand soap for Zach, it still plays a role in triggering his purchase decision. We can conclude that if the product was placed throughout stores in convenient, populated areas such as checkout lines, it will stimulate compulsive purchases for customers such as Zachary. Description of Interviewee: Leslie McGeorge: High-Involvement Leslie is 52 years old, married, stay-at-home mother with two children. She is of the Caucasian race and lives in a predominantly white, upper class neighborhood in Castle Rock, Colorado. Being a stay-at-home mother, Leslie takes pride in keeping her house tidy and organized. Taking pride in her home’s appearance means aesthetic appeal has an effect on her decision making process for purchases of home products. Of her two children, one still lives at home with her and her husband, which means that not only is making the house appear clean important, but making sure that it is actually a germ free and safe environment is key to her family’s well-being. According to Leslie, she is “in charge of the kitchen” and 10 cooks most meals for her family. Leslie also does the majority of the family shopping for food, healthcare, and house maintenance products, and is ultimately the major decider of her home’s cleaning products. Living in a house with numerous bathrooms, Leslie values different products that fit the needs of each room and individual. Summary of Our Findings: Leslie belongs to the core target market of Colgate-Palmolive hand soap products and can be compared to the company’s target consumer known as “Laurie.” Leslie is a regular hand-soap user and makes the majority of purchase decisions based off utilitarian needs. When she realized that water simply was not good enough to clean the germs, grease, and filth from her hands, she began caring about her liquid hand soap purchases. Like any mother, health care and house maintenance products are important to her for her family and home. Leslie can be considered what is known as a “germaphobe.” She pays extra attention to the fact that her house has to uphold a sterile environment, so the effectiveness of the product is crucial. Leslie believes hand soap is an absolute need in life and without it our hands would not be clean. Not only is the essential function of cleaning a vital feature when it comes to choosing liquid hand soap, but the overall appearance of the soap container itself is important as well. Our survey helped us understand that Leslie feels that the hand soap must embrace standard functional attributes, but also aesthetic attributes such as image, color, and scent also play an important role in the purchasing decision process. We have discovered that Leslie is motivated by a need for uniqueness when it comes to buying a hand soap, which has caused her to become partially sensitive to brand perceptions. She has an overall idea of what she expects from her liquid hand-soap and has found these attributes in more than one hand-soap provider. For a company, it means that if all the products fulfill the same functional attributes, standing out from the competition with an original and unexpected bottle of hand soap can be 11 a real key to success for their new product. Leslie has grown to favor the company, Bath and Body Works. They offer her the most aesthetically pleasing soaps she would be proud to display on her kitchen and bathroom sinks. Conclusion: When Leslie thinks of hand soap, the first words that came to mind were cleanliness, scents, and color. She uses soap for basic utilitarian, needs, such as having clean hands. What keeps her from being specifically brand loyal is that she loves having options. All liquid hand soaps accomplish the same task of cleaning your hands, so Leslie bases her purchases off which bottle is most appealing to her eye, has a nice fragrance, and is easy to use. Advertisements and store promotions, such as coupons or holiday edition items, also influence Leslie’s decision making. She is likely to switch from brand to brand depending on who offers the best deal or who has the newest scent. Leslie is a highinvolvement product user because she is constantly using and buying hand-soap. However, she portrays a level of low-involvement decision making when buying hand-soap. She recognizes the need to buy more when the bottle is almost empty at home, she goes to the store to buy more, simply evaluates her options based off price, color, shape, and scent, makes a purchase, and repeats the same step the next time she runs out of soap. Leslie has recognized the need for soap. She knows what she does and does not like and it does not take much deliberation for her to find a satisfying product. II. ARTISTIC STAGE Colgate-Palmolive’s Softsoap brand typically caters to women who fall in the same category as “Laurie”. Laurie is a stay at home mother with children who takes great pride in her home and its appearance. The majority of Softsoap’s products cater to aesthetic needs that Laurie would find important, such as shape, scent, and many colors to match different rooms in a home. Our first idea is still targeted towards a consumer 12 similar to Laurie and still satisfies these aesthetic needs. With the cold winter months around the corner, staying warm is of utmost importance. Not only do you want to stay warm, but you want to avoid getting a cold and germs as well. Our newest innovative idea for Softsoap’s liquid handsoap is here to rescue you from your winter worries! Softsoap’s “Warm Sensations” would be a liquid handsoap that not only cleans your hands by eliminating germs, but also leaves your hands with a warming sensation that makes them feel as though summer has never left. This new breakthrough appeals to our target consumer, Laurie, because not only does the soap provide a warming feeling for her hands, but it also allows her and her family to feel when they have accomplished cleanliness. Laurie and her family will be more inclined to wash their hands to experience the pleasant and warm feeling that would be associated with cleanliness. The “Warm Sensations” line would still possess the original traits of the rest of the Softsoap products by keeping the original look and container, however, it would be providing a new and unfamiliar experience when individuals was their hands with the warming sensation. A second idea of ours has to do with hand soap that helps with anti-aging, wrinkle prevention, and strengthening of nails. All women care about beauty and their appearance. Still targeting Laurie, the mother, who is constantly washing dishes and cleaning her hands after dealing with raw meat while she cooks for her family, doesn’t want tough man hands. Moms do a lot of wear and tear to their hands with all their household tasks, yet still want to feel sexy and womanly with beautiful nails and hands that don’t look or feel like leather. Every woman, no matter what age, hates broken nails and painful hang nails. They all want someone to hold their hand and not be grossed out 13 by its appearance or feel. This soap would help women, just like Laurie, feel confident in themselves and the fact that they’re getting older. They will still want to do all their tough-on-hands household chores, and take care of their family and children as they grow older, too. Our third idea, “See-Clean”, would focus more on targeting children rather than Laurie. Developing soap that appeals to children is not a foreign idea to Softsoap. Although they currently have a children’s line that catches the attention of children by possessing figures of favorite TV characters, we would aim to catch the attention of children through the soap’s color and the physical experience of washing their hands. The “See-Clean” line would also contain a hidden message that parents continuously try to teach their children-- the importance of hygiene and staying clean. Stopping the spread of germs is one of Softsoap’s core benefits. Unfortunately, the younger audience sometimes does not understand the importance of this benefit. The newest line of Softsoap, “See-Clean”, eliminates this issue by informing its user when cleanliness has been achieved. “See-Clean” does this with a special formula that allows the soap to change from its original color to a color that that indicates when the lathering and scrubbing has killed all of the germs and is ready to be rinsed. Too often do people wash their hands and later realize they still have dirt and grime on their palms and under their nails. This happens even more so with children because they usually wash their hands quickly and carelessly, which leaves them with residue and dirt remaining on their hands. This new innovative product appeals to the target market because mothers like Laurie can rest assured that her family members have clean hands. Not only does it give her this peace of mind, but it also teaches children an underlying message by making 14 cleaning their hands fun! Adapt (change context)1. Add dissolvable glitter 2. Turn your germs a different color on your hands so you can see how messy they are when washing them (like the kid’s toothpaste) 3. Add a suction cup on the bottom of the soap container so it doesn’t fall off/into sink 4. Anti- aging soap 5. Soap that helps heal cuts, scrapes, and burns (like Neosporin) that does not sting 6. Soap that cleans your hands faster so you can effectively wash your hands in a fraction of the time- useful when working in the kitchen and you have to wash your hands a lot (like touching raw meat, for example) 7. Soap that you use in the kitchen that not only removes food odors from your hands, but also protects your hands from those odors in the future (onion, garlic, etc.) 8. A Softsoap line of high-end wet wipes to clean your hands 9. Soap that can keep typical insects you find in houses (flies, mosquitos, etc.) away from the kitchen/house (or off of your skin) and acts as a pesticide 10. Soap that can be used safely on both humans and animals Imagine (“what if?”)11. What if the soap did not drip onto the sink after using it 12. What if the soap that cleans my hands also disinfects and de-clogs the sink when it goes down the drain 13. What if the soap strengthened your nails 14. What if I did not have to go to the store to refill my soap? A new bottle would come every few weeks and you are charged online. You can have your refill come sooner or later by changing your order date on a Softsoap website. Eliminate (take something away)51. Take away the pump on the soap and use a spray 52. Eliminate the bottle from being clutter on your countertop and mount the soap to the wall (with command strip style products) 53. Eliminate the question of “Have I washed my hands long enough?”-- soap changes from one color to another when the optimal amount of time has passed 54. Eliminate the idea of it being a liquid-Softsoap contained in individual dissolvable capsules that contain the optimum amount of soap for each time you wash your hands. (one capsule per hand washing) 55. Eliminate stress-- stress relief soap that alternates hot and cold sensations that massage the muscles in your hand as you use it 56. Soap that eliminates sweaty palms 57. Soap that plays a song when you push the pump that plays for how long you should wash your hands 58. Eliminate rough hands-- soap that exfoliates your hands for smoother skin 59. Softsoap that comes in smaller sizes that are less expensive so that consumers can try a small portion of the soap scents to see if they like it before they buy a larger bottle 60. Soap with monogram initials Parody (joke around)61. Soap that make your hands looking bloody after washing (for Halloween) 62. Soap that hurts if your hands are too dirty, so that you’ll wash them more often 63. Soap that is aimed to clean marker/paint stains 64. Soap bottle than when pumped gives you a compliment or inspirational quote. 65. Soap containers similar to ketchup and mustard 15 15. What if the soap could also be used as a stain remover for clothing and furniture 16. What if you could keep your wedding ring on while washing your hands- will protect your ring (and other jewelry) from becoming tarnished 17. What if the soap was more efficient at rinsing all of the slimy residue off of your hands 18. What if the soap was safe to eat-- with the target consumer is a mother, it would be a relief for her to know that the soap that her child uses is safe if accidentally consumed 19. What if the soap container hung over the sink, so that when you are washing your hands and reach for the soap, the water on your hands does not get on the countertop. It also prevents excess soap from getting on the countertop because it would fall directly in the sink 20. What if the soap could also be used to clean makeup brushes Reverse (assumption busting)21. Hand soap that only needs to be used once daily to keep hands clean 22. Hand soap that will rub off of your hands and clean other objects that are touched 23. Soap that makes your hands smell bad 24. Soap that dries out your skin 25. Soap that doesn't foam up when friction added 26. Soap that stains your hands a certain color 27. Soap that wouldn’t require too much friction to clean our hands 28. Soap that attracts bugs 29. Soap that you can eat or drink 30. Soap that you have to let soak on your hands for a minute or so, so it fully kills all germs, especially under the fingernails Connect (put 2 unrelated concepts together)31. Soap that you can use outdoors and it does not hurt the environment (like when 66. Soap that pops in your hands like “pop rocks” 67. Soap container that is someone faces and comes out of the nose with green/yellow color 68. Soap that gives you a facts/knowledge when pumped (clean and learn/possible kids version for alphabet, times tables etc.) 69. Soap bottles in the theme of popular music artists/plays their most popular song 70. Soap bottles with LCD picture display 71. Soap bottles that are designed in easily storable shapes, so that when the target consumer goes to the store, they can buy the hand soap in bulk and store it easily in their home (cubes that can interlock?) 72. Soap that evens your skin tone 73. Soap that makes your nail polish last for a longer amount of time 74. Soap container that beeps when it is running low 75. Soap that helps your hands dry faster but does not make your hands feel dried out 76. Soap that soothes arthritis 77. Soap that specifically tastes bad to animals, so that puppies and kittens learn not to bite people 78. Soap that you use in the kitchen that focuses on getting grease and oil off your hands faster and more effectively 79. Soap that is gentle enough for babies’ skin 80. Soap that changes different colors when you wash your hands based on your “mood” 81. Soap that helps stop nicotine cravings 82. When you push the soap pump, the soap says funny movie quotes 83. Soap that has an invigorating sensation that helps you wake up in the morning 84. Soap container that acts as an air freshener for the room that it is in 85. Soap that is heavy duty so you can use it in the garage when you need to wash your hands after working on cars, 16 you go camping and wash your hands outside) 32. Soap that gives your hands a warm sensation that continues even after you are finished washing your hands during the cold winter months 33. Soap bottle with a slot where you can insert your own picture so that it exactly matches the theme of your bathroom 34. Soap with a prize inside--- if kids wash their hands enough, they uncover a action figure or some kind of prize when the bottle of soap runs out (they have an incentive) 35. A device that attaches onto the faucet and filters the water, and also contains a concentrated form of soap. When you press a button on the attachment, the soap concentrate mixes with the water and Softsoap comes out when you are washing your hands 36. Soap that smells good but tastes bad in order to train people not to bite their fingernails (the bad taste would not be able to transfer to the things you touch, like when you eat) 37. Have celebrities, stylists, artists, & fashion designers contribute their own soap bottle designs to create a high end line of Softsoap 38. Soap that combines cleanliness with the smell of icy hot that can clear your sinuses 39. Soap that acts like a children’s night light in the bathroom by glowing in the dark 40. Soap that has different layers of scents, so you do not get bored of the same bottle of soap Compare (metaphors)41. Hand soap chasing bacteria is like policemen chasing thieves 42. Soap with condensed soap balls that exploded like underwater mines 43. The Mr. and Mrs. soap-- one bottle, 2 pumps, and looks like bride and groom or various other couple figures motorcycles, etc. possibly have PowerBlock endorse the product because the company has many automotive TV shows and magazines that recommend a variety of products to a dedicated group of viewers 86. Soap that has a hair removal ingredient so you do not have hairy knuckles 87. Soap that can safely be used to more effectively wash fruit instead of just rinsing it off 88. Soap that does not have a scent so that it does not conflict with perfume/cologne 89. Soap that has an extra small label so it doesn’t ruin the decor of the bathroom 90. Soap that you can design online- pick a bottle shape, color, and scent and have it delivered to your house 91. Soap that comes in larger sizes so you do not have to refill as often 92. Soap that you do not have to use with water (more environmentally safe) 93. Powdered soap so it is easier to sweep up when it spills and does not leave residue in your sink 94. Soap that if you let it dry, it will stay on your hands so you can peel it off and unclog your pores 95. Soap that glows when you are using it 96. Soap that has the theme of the local sports teams of where is was sold 97. Soap that is made from an abnormally thick formula to really coat your hands but is also fun to play with 98. Soap that eliminates fingernail fungus and discoloration 99. Soap targeted towards construction workers-- when you work with certain woods (redwood) it stains your hands, so this soap that would get that stain off 100. Soap that contains pheromones to attract the opposite sex 17 44. Bottles of soap you can keep when they’re empty to be like collector items 45. Soap makes your hands feel soft like a baby’s blanket 46. Clean hands are happy hands 47. Soap is like the Beatles, it wants to “Hold Your Hand” 48. A day without soap is like a day without underwear. Gross. 49. Soaps like an earthquake, it shakes out the germs 50. Hand soap like Kobe Bryant, it always wins III. THE JUDGE STAGE a. Internal Judge- Feedback from the client and instructor (See attached feedback from Colgate-Palmolive) b. External Judge- Consumers TASK 1: Define your best idea (to consider especially for your business memo) 1. PRODUCT: A liquid hand soap that focuses on preventing and reversing signs of aging 2. TARGET: Our product will still focus our target marketing efforts towards women like “Laurie.” We will continue to market our products to primarily middle-aged women who are constantly using their hands to wash dishes, keep their homes clean, gardening, etc. Although these women are constantly working with their hands, they still find an importance in keeping their hands feeling clean and soft. Women are also typically concerned about preventing signs of wrinkles from appearing for as long as possible. Women who care about their overall appearance and wish to maintain healthy, younglooking skin will find satisfaction in our new line of anti-aging liquid hand soap. 3. COMPETITION: There are currently lots of brands selling anti-aging hand creams or lotions; however, none of these brands specifically focus on anti-aging as liquid hand soap. Companies found in department or beauty stores like Philosophy, Clinique, and Lancôme, to name a few, have been selling these creams and lotions for years. Our main competition would be brands like Neutrogena or Burts Bees who are selling their antiaging hand creams in large convenience stores, such as Target and Wal-Mart. 4. PRICE: Regular SoftSoap liquid hand soap is priced at convenience stores at an average 18 of $2.50. In comparison, SoftSoap hand soaps that offer an extra experience or benefit, such as their Pampered Hands and Foaming Hands lines increase in price and typically vary anywhere from approximately $2.75 to $5.00. Seeing how our new anti-aging hand soap product offers an extra benefit compared to the average liquid hand soap, it would also be priced within this price range. According to our survey, our collected data made it clear that prospective customers would be willing to purchase this product for a price varying from $3.00 to $20.00. With our goal being to introduce this new anti-aging hand soap into the market as a both desirable and affordable product, it will be offered at a reasonable price of $4.50. 5. PLACE: Our new anti-aging hand soap would be sold in the same stores that SoftSoap products can already be found. This would include large convenience stores like Target and Wal-Mart, as well as major grocery and pharmaceutical stores, such as VONS and CVS. 6. PROMOTION: Instead of immediately including our new form of SoftSoap liquid hand soap onto the shelf with the rest of the SoftSoap products, we will first aim to have it placed throughout the stores on a display shelf at both ends of the household products aisles. Additionally, new visual adds will need to be created and included in magazines and newspapers that are targeted towards a similar target market. TASK 2: Survey (See 30 attached surveys) TASK 3: Summary Colgate Palmolive has done a fantastic job of catering to a variety of consumers through their many collections of Softsoap liquid hand soaps. We have noticed, however, that Colgate Palmolive has not focused any efforts on exploring the importance of antiaging products. With hands being one of the first places that show signs of aging, our idea for a new line of Softsoap products will satisfy this importance. Considering the present day pressures of a flawless physical appearance, a new line of anti-aging soap would surely flourish in today’s market. Our new Softsoap product line will concentrate on preventing and reversing signs of aging. It will also offer the benefits of clean, soft-feeling hands. Introducing this new line of products will not be difficult because there will not be a need to change our target 19 market. Our product will still aim its targeting efforts towards women who fit the description of Laurie-- a middle-aged, stay-at-home mother. By keeping our target market focused on women similar to Laurie, all major marketing efforts will remain the same. Being curious to the possible reactions of introducing such a product to the market, a survey was conducted and completed by 30 prospective customers fitting the “Laurie” description. Our results have allowed us to further our knowledge on our new product. According to our findings, our prospective customers were fairly interested in the possibility of an anti-aging soap line. When asked how interested one may be to the idea of anti-aging hand soap on a scale of 1 to 10, with 1 being not interested and 10 being very interested, the majority of our results fell within the 6 to 10 range. Many of our responses mentioned that they typically purchase standard liquid hand soap rather than an elaborate looking soap, such as one with a character printed across the label or soap that is dispensed in the form of foam. Because of this, our anti-aging soap will be sold in the classic Softsoap bottle rather than the more extravagant bottles that can be found in the Pampered Hands and Advanced Benefits collections. The survey responses also showed a high importance in the color and scent of the soap to the consumers when making a purchasing decision. Some of our survey takers mentioned that they buy certain soaps solely based off how pleasant it smells or how well the color matches their bathrooms and kitchen. In hopes of figuring out what else women find important and/or beneficial in soaps, we asked, “What ingredients are perceived as healthy and effective?” The most common answers were natural ingredients like cocoa butter, soy, oatmeal, and vitamin E, which are specifically known to help reverse signs of wrinkles. With our research showing that these are the elements that women find to be most important, we will aim to 20 include them in our anti-aging soap’s formula. Due to the popularity of “all things natural” in today’s market, the physical color of the soaps will remain in a neutral color scheme, such as shiny pearls and light lavenders, greens, and blues. Considering that we would like to avoid any change in the appearance of the soap, the classic label will still be used with images of natural foods and elements pictured on the front. The only major change that we would wish to make is including the bolded words “Anti-aging” above the already existing words “hand soap” on the bottle. By appearing visually similar to the classic collection consumers will still feel as though they are purchasing the common bottle of hand soap that our research showed is well liked. While our original idea was to create a hand soap that decreased signs of wrinkles while increasing the strength of one’s nails, we learned that we should focus more specifically on the anti-aging aspect. After examining our survey research, the decision to exclude nail health from the soap’s formula was made. Even though our anti-aging soap is more along the lines of a beauty enhancer rather than a standard anti-bacterial soap, we decided to continue to sell our new Softsoap product in the major grocery and superstores. As previously mentioned, we do not wish to change our marketing efforts. Since we will continue to target middle-aged mothers, it is essential that the price of the soap is affordable. Although adding additional vitamins and/or anti-wrinkling serums into the soap is going to be more costly, we cannot demand too high of a price from our customers. By offering the anti-aging hand soap at approximately $4.50 the soap will be affordable and reasonably priced in comparison to other existing liquid soap products. 21 Of the thirty women that were surveyed, more than half of them were enthusiastic about this product. This gives us great hope for the success of this inventive idea. If the new line of hand soap successfully strives in the market, the possibility of expanding the line should be considered. With success in mind, our survey showed that a great majority of the women would also enjoy the idea of Softsoap generating a line of moisturizers to go along with this hand soap. This would give Colgate Palmolive another opportunity to create an entirely new line of anti-aging products to market to the many Laurie-like women of the world. The general consensus agreed that this is an innovative idea that should be further explored and could potentially lead to a profitable triumph. IV. BUSINESS MEMO DESCRIPTION OF IDEA Colgate Palmolive has done a fantastic job of catering to a variety of consumers through their many collections of SoftSoap liquid hand soaps. We have noticed, however, that Colgate Palmolive has not focused any efforts on exploring the importance of antiaging products. Our idea for a new line of SoftSoap products will satisfy this importance. With hands being one of the first places that display a sign of aging, a new line of antiaging soap would flourish in today’s present market. Our new SoftSoap product line will concentrate on preventing and reversing signs of aging. Aging hands are perceived as those that are wrinkled, rough, or have skin spots or discoloration. It will also offer the benefits of clean, soft-feeling hands. With the current trend of organic and natural products, we feel that using natural ingredients will help sell the product. Some natural ingredients associated with anti-aging properties are: • Acai Oil 22 • CoEnzyme Q-10 (CoQ-10) • Alpha-lipoic Acid • Caffeine • Green Tea Extract • Alpha-hydroxy Acid • Retinol Hyaluronic Acid • Vitamin C & Salicylic Acid By offering an “anti-aging” SoftSoap product line, the benefits will aim to eliminate deep wrinkles caused by dryness and ageing. The ingredients mentioned earlier, provided within the hand soap, are designed to strengthen the skin and rejuvenate its vibrancy resulting in younger looking skin. Our USP (Unique Selling Proposition) is the concept that with specific ingredients, this SoftSoap enhances its original process by providing anti-aging results to the user’s skin when applied consistently over time. Some of the Softsoap’s major competitors are private label companies, Dial, Lysol, and Method brands. Private label brands have gained a large market share because of their low prices. Dial and Lysol are two major brands that are constantly competing with Softsoap for ways to reach the consumer through innovative products. Method is a newer company that utilized the physical attractiveness of the bottle to attract consumers. These companies are competing with Softsoap’s traditional soap products that focus on cleanliness, appearance, and scent. The addition to anti-aging effects, this new SoftSoap product will create new competitors in a particular product category. Olay, Neutrogena, Eucerin, and L’oreal are 23 strong skin care brands that already have large market shares in the anti-aging market. The main focus of their products is on the face with the use of serums, lotions, creams, and masks. The pricing ranges from $6 to $100+ depending on the type of product. Overall, their prices are significantly higher than Softsoap’s traditional pricing strategies. The Anti-Aging liquid hand soap will appeal to the overall target market of the SoftSoap Company. “Laurie”, the name used for the target consumer, will not only receive the aforementioned benefits, but she will also benefit because the product was created with her in mind. DETAILS RELATED TO TARGET MARKET Laurie is aware of what others think of her and her family. Being perceived as a good housewife and mother is very important and shapes a lot of her decisions. Our target consumer is still targeted towards middle-aged women like Laurie. She would use this new soap just like she would use any other. Every time Laurie washes her hands, she would use the anti-aging soap instead. The more it is used, the better results. The use will vary amongst consumers depending on their perception of their own aging hands. Signs of aging like wrinkles and discoloration are a major concern because youth is highly valued in society. The new anti-aging product would be beneficial to the target consumer and would help her keep up appearances without investing extensive amounts of time or money to do so. Being able to integrate anti-aging components into hand soap would be more appealing to the target consumer because she works full or part time and has a family with children. The time saved by incorporating beneficial effects in a hand soap that she already uses, instead of adding a new component to her day, will add value to the product. When it comes to hand soap, Laurie is not loyal to one specific brand. 24 Developing the anti-aging product would be an opportunity to differentiate the new Softsoap from the other liquid hand soaps that are currently available. Growing Softsoap’s market share with the anti-aging soap could simultaneously build brand loyalty and create a halo effect for Softsoap’s products overall. PRE-TEST RESULTS To get an idea of how women would react to a new product release of an antiaging soap, a survey was conducted and sent out to 30 women ranging from ages twentyfive years old to mid-fifties. Although our main target market is middle-aged women, we were curious to know if younger women would be interested in our product to prevent aging early, and if older women believed it would work to reverse aging enough to become buyers as well. Our results have allowed us to further our knowledge on our new product. After issuing out the surveys to participants that fell under our target market we took notice to a particular interesting finding that the main deciding factor for purchasing soap was the actual scent. As long as we continue to provide popular scented hand soaps from previous SoftSoap products, it will establish a familiarity with previous purchases. Our target market is low involvement and does not pursue the purchases of hand soap with extreme effort yet does take into account the details such as the scent and shape of the bottle. The anti-aging add-ons for this new hand soap line will be an additional incentive for the consumer to purchase the soap that goes beyond its basic function. By staying true to the SoftSoap design and keeping a similar design to original hand soap collection with an emphasis on the “anti-aging” ingredients, the soap will prosper in the market. 25 The most apparent limitation to this new hand soap product is determining the price in consideration with the additional anti-aging components. If we determine the price of the anti-aging product to be only be slightly more expensive the standard SoftSoap merchandise people will be skeptical with the actual anti-aging effects. On the opposite end, if we establish a price that is too high, people will look past it’s benefits and determine that the price was too expensive for a bottle of hand soap. The more effective the results of producing healthier, younger looking skin through the application of our hand soap, the easier we can determine or estimate a reasonable price for our target customers. RECOMMENDATIONS Anti-aging liquid hand soap is a product that will benefit the consumer through a two-in-one concept. Consumers will not only be using a soap to sanitize their hands, but will be simultaneously rejuvenating their skin with the application of anti-aging ingredients. The price is perceived as a strong sign about the quality of a product, by reflecting its position within the market. To define an effective price, Colgate will have to consider the pricing strategy of anti-aging competitors such as Neutrogena, L’Oreal or Eucerin; whose prices are quite expensive. Colgate-Palmolive would be the first company to introduce an anti-aging liquid hand soap, which would create more value for the consumer who purchases the new product. Of course we won’t advise the company to choose a penetration pricing yet a skim pricing would not be the ideal choice either. The anti-aging solutions that are offered by the aforementioned companies already have a loyal following. Therefore, the anti-aging soap should be priced in comparison to other 26 liquid hand soaps instead of the other anti-aging solutions. This will place the anti-aging soap as an less expensive and more time effective alternative to these other, more expensive, products. Our product will be successful if its benefits can be communicated clearly to the target market. The current channels of promotion that Softsoap uses should be implemented to also support the anti-aging line of soaps. For example, to reach our audience Colgate should use print advertising in magazines like “O”, “Martha Stewart”, and “Good Housekeeping” because they are the most read by consumers who would benefit from the new product. The use of magazines will be useful because it allows Colgate-Palmolive to capture the reader’s attention and better explain the benefits of the product, which is a new concept to the target market. During the pre-test results of composing our survey we took into account that SoftSoap brands have already established a strong presence in controlling the majority of the market share. With this consideration we determined that our new anti-aging product line will still resemble the SoftSoap merchandise with regards to scents and container design to appeal to customer’s sensory systems. Observing the current trend in natural ingredients and the overall desire to look and feel young by aging individuals, we are confident this product will be successful. Knowing that our target market consumer is a middle-aged woman who is typically very conscious of her aging and appearance, it is highly feasible that she will consider, if not try this Softsoap line. Although not proven, our test results give us confidence that despite minimal time on hands, this product will be effective. 27
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