Old Spice is an exceptional brand founded on a rich history. It has succeeded in transforming itself from a brand that was more focused towards my generation’s grandparents to a new millennium sensation for younger crowds to utilize by using the market penetration product strategy. Proctor and Gamble currently owns the Old Spice brand and takes up a considerable amount of the men’s grooming market segment. Old Spice is still managing to maintain a competitive advantage and is growing toward its peak in its product life cycle with little product attributes that differentiate themselves from their competitors. Proctor and Gamble is currently expanding Old Spice’s product mix and maintains competitive pricing. Old Spice’s brand is promoted a highly rated advertising strategy and distributes its products intensively to retailers and wholesalers.
The creator of Old Spice is George Schultz. He was introduced to the grooming market when he was 19 years old by working as a salesman for his father, William Schultz. William’s company, Schulton Company, in the Bronx, New York in the mid 1930s. Schulton Company, originally named the Lightfoot Schultz Company, was formed in the 1920s and sold soap and toiletries. William Schultz came to the conclusion that he would never become wealthy selling a private label product during the Depression and decided to search for a product that he could trademark and capture the public eye. He met with Enid Edson, an artist, and searched for label designs through intensive research. It was only soon after when William Schultz developed the first Old Spice product. It was a female fragrance that was developed “from a memory of a rose jar his mother kept in the house, a combination of roses, cloves, herbs, and other spices, and called his new line of toiletries Early American Old Spice for Women.” While this was happening, George Schultz pursued his chemical engineering degree while continuing to make money from being a salesman for Schulton. He became the plant manager shortly after and moved Schulton to its current site in Clifton in 1946. William Schultz passed away in 1950 and George Schultz was selected as president of Schulton and continued to build the company. Proctor and Gamble then bought Old Spice in 1990.
Old Spice market segmentation is now targeted towards the younger generation, typically ages fifteen and up, who are intending the look their best and smell genuinely masculine. Also, the brand is reaching out to females who want their partners to have masculine-scented grooming products. There are currently three lines of the Old Spice brand: High Endurance, Classic, and Red Zone. High Endurance is the basic line, Classic contains the original scent of Old Spice, and Red Zone is the higher-end of the brand line. This allows for market segmentation to be split even more towards the older crowd who enjoy the original scent of Old Spice, and also to those who enjoy the newer variety of scents.
In 2011, Proctor and Gamble held 43% of the men’s grooming industry’s sales and currently selling at $66.47 per share. Throughout the previous years Proctor and Gamble has been consistent with the market trend, including the economic downturn. However, Proctor and Gamble has been staying ahead of the market price per share by a large margin.
Old Spice’s product brand has evolved little over time. Its label has a consistent nautical theme to it. Its logo started off with a sailing vessel as a trademark. The original ships used on their products were the Grand Turk and the Friendship. In 1992, these tall ships were replaced with a yacht, giving the brand a more modern feel. Today, Old Spice uses the original tall ship theme that it originally used. Old Spice is involved in a wide brand extension as well. Starting off with aftershave lotion and shaving soap, the brand has extended to deodorant sticks, body wash, body spray, and other male grooming products. As stated before, Old Spice was...
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