Introduction
The Axe brand belongs to Unilever, which is the leader in sales of men’s body care products. Axe is presented as an advanced men’s body care product, constantly offering new ideas to ensure that men are always one step ahead (Wirtz & Lovelock, 2021). Moreover, to expand its competitive position in the market, Axe is gradually expanding its line of women’s personal care products, including aftershaves for females. To introduce new products, the company has focused on innovative marketing strategies. Hence, it is essential to analyze the Axe brand aftershave for women and indicate the strengths and weaknesses of the innovative offer.
The Formed Product Offer
It is essential to note that the Axe brand offers a range of personal care products specifically designed for male consumers. While conducting research, the company discovered that females also use aftershave products to enhance their performance (Statista Research Department, 2021). Accordingly, the brand began to develop women’s products, justifying this innovative solution as a competitive advantage in the market. The reason is that the Axe brand has chosen this strategy to expand its customer base (Wirtz & Lovelock, 2021). Accordingly, the proposal is to introduce a new Axe aftershave for females.
To present women not just as another typical product, market research was conducted to establish the main preferences of buyers. The findings have shown a significant interest in natural products in the UK (Statista Research Department, 2021). Women prefer personal care products based on natural ingredients because they believe these products are safer and can offer additional benefits.
From a critical perspective, the primary advantage of the new aftershave is its composition, which is based on natural sources, including hot charcoal, peppermint oil, and eucalyptus oil. With 100% naturalness of the product, there are more chances for it to become the best-selling product (Tengli & Srinivasan, 2022). Thus, the innovation of the proposal lies in its naturalness, and the need for such a product among consumers is established through market research.
Hence, market research suggests that the Axe brand has not only created an innovative product offering for the market but has also identified the signal preferences of potential customers. Nevertheless, not all buyers will become customers of the brand. This is because they may not appreciate the benefits of natural products or marketing elements. Meanwhile, an advertising and marketing strategy was chosen that emphasizes the natural aspect, allowing potential customers to associate it with the brand.
The aftershave will be packaged in new packaging that aligns with the company’s current sustainability goals. The packaging will be made from 100% recyclable materials to protect the environment. It is expected that this type of innovation will enhance the new product’s market position. Additionally, the new aftershave will launch a line of products targeted at female customers that are 100% natural and use 100% recyclable materials for packaging (Tengli & Srinivasan, 2022). Therefore, it signals a change for the brand and reflects the company’s vision and mission, which encourages the use of new and existing opportunities to increase profitability.
The strategy of gender marketing is based on the creation of specialized male and female brands for product categories, which are initially, in a certain way, gender-labeled. For instance, until recently, the product categories of alcoholic beverages, cigarettes, and shaving products were perceived as strictly masculine, while cosmetics were considered a reserved domain for females (Statista Research Department, 2021).
It should be emphasized that more often than not, due to the androcentricity of most cultures, it is more socially acceptable for females to display masculine traits than for males to display feminine qualities. This strategy is implemented through the appearance of women’s products in traditionally male territory. In addition, Unilever introduced an innovative new line of products specifically designed for women, which will create new opportunities for the Axe brand.
Moreover, the firm wants to ensure the diversity of the assortment at a competitive price. That is why the competitiveness of goods in marketing is the most important criterion for increasing market share and achieving long-term success in the industry (Bel, 2018). A company’s high level of competitiveness helps to achieve significant victories and build a strong brand even in a highly competitive market.
According to Porter’s matrix, a business can choose one of three possible types of enterprise competitiveness in the industry: low costs, a unique product, or a focus on a narrow market niche (Bel, 2018). Additionally, the new Axe product line offers a unique product and will employ a competitive strategy of product leadership or differentiation, which involves creating a distinct offering within the industry. However, a unique product entails a significant amount of risk.
The strategy of differentiation marketing is an effective method to achieve competitive advantage in the marketplace, is the most common competitive strategy, and allows for long-term profitable growth. By employing a differentiation strategy, the company endows its product with unique properties that are highly valued by the target audience, allowing it to charge a higher price for the product (Bel, 2018). Product differentiation and uniqueness in properties protect the commodity from direct competitive rivalry and pressure from substitute products, and also create consumer loyalty to the brand, reducing price sensitivity.
Therefore, considering that the aftershave market for women is not highly saturated, a new area that will benefit the company. Female consumers are seeking new products made from natural materials that align with the goals of sustainable development, and the brand offers an innovative product that meets these needs (Statista Research Department, 2021). However, there is a problem related to the cost. It is because natural components in care products and packaging are more expensive.
Accordingly, although the brand will strive to balance the final price of the product with its costs and production, the price of the unique product will be higher than that of its analogues, which do not contain unique ingredients. In accordance with the strategy of differentiated marketing, users value the presence of unique product properties, high qualification of labor resources, and high quality of goods (Bel, 2018). Therefore, according to the differentiation strategy, it may require high investments, which are necessary to develop unique properties, and potential customers recognize this fact.
Furthermore, according to Porter, the advantage of a differentiated marketing strategy is that it allows for selling the product at a higher price than that of ordinary goods. Besides, it avoids direct competition and reduces the adverse effects of market leaders on the company’s sales. The strategy can foster high loyalty and commitment to the brand if the company identifies significant advantages for the product and builds the assortment effectively. Meanwhile, the presence of the proposed product’s innovation alone is a competitive advantage, not a guarantee of success.
Weaknesses and Strengths
It is crucial to highlight that a key idea for introducing an innovative product to the market, especially an aftershave for women, is a marketing plan. This is a comprehensive list of marketing programs and initiatives designed to enhance the value of the product and expand the company’s market share. Accordingly, the company plans to use traditional and digital channels to enhance the brand’s popularity. To justify the success of the Axe brand marketing plan, the 4P theory, formulated by Jerome McCarthy, can be applied (Morgan et al., 2019). Therefore, before producing any product or providing a service, four factors must be considered.
The first factor is the choice of a specific product and the establishment of a customer signal. At this stage, an in-depth analysis of consumer demand for the product, an examination of the relevant market segment, and an assessment of the level of competition in this market are carried out, and a portrait of the potential buyer to whom the product is intended is created (Statista Research Department, 2021).
Moreover, in combination with Porter’s theory, the company conducted market research and, based on the results, offered an innovative product that would be successful in the market. The second factor that significantly influences the product’s sales is its price. However, the price of aftershave for women is higher than the established market value, which is justified due to the high quality and natural components.
Consequently, under the 4P theory, the third factor influencing the successful sale of a product or service is the place of sale for this product. The Axe brand has identified the United Kingdom as a key market for selling goods in local chains and stores (Morgan et al., 2019). This decision is reasonable given the brand’s high popularity among the community. In critical terms, however, it localizes the market and reduces the customer base.
Furthermore, the fourth factor that is important at present, given the extremely high level of competition, is the promotion of goods. It is impossible to sell even the most beneficial and necessary, cheapest and most beautiful product without high-quality and effective advertising; no one will know about it. Promotions are designed to draw attention to new products and services entering the market and stimulate sales of already established brands. There are two categories of advertising: above-the-line and below-the-line (Morgan et al., 2019).
Accordingly, above-the-line advertising encompasses mass media, including newspapers, magazines, television, radio, and outdoor advertising. On the other hand, below-the-line includes promotions, tastings, distribution of product samples, and distribution of leaflets with information about a new product or service (Morgan et al., 2019). Hence, the Axe brand chose the above-the-line strategy because these advertising methods are more suitable for aftershave products aimed at females.
Nevertheless, apart from involving the usual channels and advertising the innovative product in media and magazines, the marketing campaign also involved Influencers. In addition to presenting the innovative product, the brand has adopted a new advertising method to gain a competitive advantage. Accordingly, celebrities will contribute to the marketing and advertising of the new product in digital channels.
The research suggests that influential celebrities can enhance brand awareness, leading to increased sales (Morgan et al., 2019). Moreover, with the innovative composition of the product and the resulting increased price, the involvement of celebrities will enable future buyers not only to evaluate the advertising offer but also to believe in the product’s effectiveness.
Hence, the product produced by the Axe brand satisfies all the criteria of marketing planning. According to the 4P theory, the company has thoroughly and comprehensively analyzed all four factors and properly planned its marketing strategy (Morgan et al., 2019). This demonstrates that the Axe brand relies not only on innovative ideas to ensure a competitive advantage but also utilizes proven and theoretically sound strategies that guarantee business success.
Nevertheless, in addition to the strengths, the introduction of a new product from the Axe brand has disadvantages. Despite the company introducing advertising to promote aftershave for females, the packaging’s appearance may not be competitive. Consequently, there is a gap in the Axe brand business strategy. That is because the innovative characteristic of the lotion itself and the packaging for the product is that the brand uses only natural ingredients.
Accordingly, the conducted research demonstrated consumer support for the idea of organic-based aftershave (Tengli & Srinivasan, 2022). However, the style and appearance of the packaging were not mentioned in these studies. Correspondingly, there is a risk that the introduced advertising will not be able to justify the unattractive appearance of the product. This will influence the purchasing decisions of customers who prioritize products with packaging that enhances sales.
The factor theory of production can explain this phenomenon. According to this concept, buyers determine the value of goods by the costs of their production. However, not all customers can view the advertisement before purchasing and have not yet experienced the product; as a result, they may form the impression that the women’s aftershave is overpriced (Tengli & Srinivasan, 2022). As a result, buyers will prefer products that at first glance have more attractive packaging and a lower price.
In addition, the relatively high price of women’s aftershave may also negatively affect product sales, which is a critical point for sales. As evidence of this, in the theory of prices Ricardo identified three main factors of the substance of value: labor, utility, and rarity (Morgan et al., 2019). All these elements are present in innovative proposals for women, but considering Smith’s theory of the “invisible hand” of the market, the market can self-regulate. Therefore, if similar or better-performing products are available on the market, Axe’s business strategy will not be effective.
Recommendations
To mitigate the negative aspects, it is necessary to analyze the innovative product in accordance with Porter’s Five Forces of Competition strategic model. Accordingly, Michael Porter’s theory of competition suggests that five driving forces in the market determine the potential level of profit. Each force in the model represents a separate level of competitiveness of the product (Bel, 2018). Hence, these are the market power of buyers, the market power of suppliers, the threat of new entrants, the threat of substitute goods, and the level of competition.
A criticism of the product is that it faces a threat from aftershave lotion substitutes. At the same time, competitors can learn from the mistakes of the Axe brand through customer research. Thus, their product will offer the same organic properties at a lower value and with aesthetically pleasing packaging. The most effective method to combat substitute products is to establish a strong brand (Bel, 2018). Accordingly, the product requires clear differentiation and additional benefits from consuming the company’s goods, combating product standardization, technological improvements, and fostering loyalty to the product.
For instance, the use of recycled raw materials may appeal to a specific segment of consumers, and accordingly, it is necessary to tailor the product to meet their needs (Bel, 2018). Furthermore, the use of Unilever’s marketing mechanisms is expected to increase loyalty to the new aftershave and its recognition. Therefore, from a critical perspective, the recommendations aim to minimize the negative aspects.
Conclusion
Hence, while innovation is increasingly considered a powerful method for securing a competitive advantage, success is not guaranteed with this factor alone. Although aftershave for women offers an innovative solution based on natural complex cosmetics, other market forces are also important. That is, the marketing plan for the innovative product will consider the needs of women in the UK market and utilize a promotional strategy to highlight the competitive advantages of Axe aftershave for females.
Nevertheless, in the presence of high levels of competition and the emergence of similar products, the high price and controversial packaging will be factors that will adversely affect the product’s popularity. Therefore, it is crucial to enhance brand awareness and establish a customer loyalty program. Accordingly, it will enable mitigating the negative impact of the market and competition, as well as innovating the product.
References
Bel, R. (2018). A property rights theory of competitive advantage. Strategic Management Journal, 39(6), 1678-1703.
Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2019). Research in marketing strategy. Journal of the Academy of Marketing Science, 47(1), 4-29.
Statista Research Department (2021). Aftershave usage by type in the UK 2013-2020. Statista.
Tengli, A., & Srinivasan, S. H. (2022). An exploratory study to identify the gender-based purchase behavior of consumers of natural cosmetics. Cosmetics, 9(5), 101.
Wirtz, J., & Lovelock, C. (2021). Services marketing: People, technology, strategy. World Scientific.