Research Paper of Axe
David Steele
4-26-10
Final paper
Axe Deodorant and Body Spray: A Marketing Study Axe deodorant is very well known. It is known just as much for its ads on TV that portrait it as a deodorant that guys use to attach women as it is for the deodorant itself. The smell seems to be well known to women; however, this particular paper will focus on the history of Axe and the deodorant market itself, as well as the marketing behind the product.
Market The deodorant market in the United States is very large, with revenues of $2.4 billion in 2008 and it is expected to grow 18.4% through 2013. 2008 volume was 835.4 million units and is expected to grow 3% through 2013. Sticks and solid deodorants dominate the U.S. market, with a 63.23% share. Unilever, the makers of Axe, are the largest deodorant company in the U.S. with a 28.5% market share. Supermarkets and hypermarkets are the dominant sales outlets in America. The United States is the second largest deodorant market in the world with 23.3%, behind Europe’s 48.4% (deodorants industry profile). One interesting number noted above is the fact that volume is expected to increase at a much lower rate than revenue. It can be expected that profit margins on brands are going to increase because of this, meaning that it is likely that either expenses will decrease or prices will increase on many brands. It is likely that prices will increase. Body sprays like Ax of which people use a lot should be especially profitable, since you run out sooner and buy more. If Axe is going to grow during this period, they will have to gain market from other brands, as new market will likely be small given the numbers that have been shown (deodorants industry profile). Axe is a body spray, which only has 6% of the U.S market. Judging by the fact that Unilever is the dominate player in the U.S. market, it can be assumed that the body spray market, while a small overall part of the entire deodorant market, is very much dominated
4-26-10
Final paper
Axe Deodorant and Body Spray: A Marketing Study Axe deodorant is very well known. It is known just as much for its ads on TV that portrait it as a deodorant that guys use to attach women as it is for the deodorant itself. The smell seems to be well known to women; however, this particular paper will focus on the history of Axe and the deodorant market itself, as well as the marketing behind the product.
Market The deodorant market in the United States is very large, with revenues of $2.4 billion in 2008 and it is expected to grow 18.4% through 2013. 2008 volume was 835.4 million units and is expected to grow 3% through 2013. Sticks and solid deodorants dominate the U.S. market, with a 63.23% share. Unilever, the makers of Axe, are the largest deodorant company in the U.S. with a 28.5% market share. Supermarkets and hypermarkets are the dominant sales outlets in America. The United States is the second largest deodorant market in the world with 23.3%, behind Europe’s 48.4% (deodorants industry profile). One interesting number noted above is the fact that volume is expected to increase at a much lower rate than revenue. It can be expected that profit margins on brands are going to increase because of this, meaning that it is likely that either expenses will decrease or prices will increase on many brands. It is likely that prices will increase. Body sprays like Ax of which people use a lot should be especially profitable, since you run out sooner and buy more. If Axe is going to grow during this period, they will have to gain market from other brands, as new market will likely be small given the numbers that have been shown (deodorants industry profile). Axe is a body spray, which only has 6% of the U.S market. Judging by the fact that Unilever is the dominate player in the U.S. market, it can be assumed that the body spray market, while a small overall part of the entire deodorant market, is very much dominated