SWOT Analysis of Old Spice
In 1990, the P&G (Procter and Gamble) purchased the Old Spice brand from the Shultun Company. P&G had strategically repositioned the brand following the current demands of the consumers and focused on the younger male target market especially in the 18-24 years old age.
Following is the SWOT Analysis of Old Spice to determine the company’s strategic standpoint and the potential risk in the future related to the products.
• A very renowned and successful brand in the global market.
• Strong distribution channel.
• Product quality is excellent.
• Strong financial presence in the market due to its parent company P&G.
• Affordable pricing of products.
• Diversified portfolio of products.
• Effective Advertising campaigns, Old Spice have used extensive marketing for promotions which also have influenced other brands to advertize products in a similar way.
• Sales growth is high.
• P&G has made a remarkable position in the market through this acquisition; they came up with an innovative step to create a product line based as a young men’s personal cleansing category.
• After acquisition, Old Spice could not completely change the consumer’s brand perception of their products.
• Other product of P&G like Gillette has a strong market position than Old Spice .Moreover, Axe has a vast product line like deodorants and body washes etc whereas Old Spice do not possess an extensive product line .
• Market share is lower than other P&G brands.
• The brand is incapable of catering to the contemporary tastes.
• Target market is limited i.e. younger male segment.
• The packaging style of the products has become obsolete.
• Advertisement is made on spray products only. More ad campaigns should be made to increase the demand of the products.
• Chauvinistic publicity of products should be avoided.
• More innovation and diversified products.
• The brand needs to create products that are female oriented too.
• The brand image of the company needs to be repositioned constantly.
• Continuous improvement and maintenance of the standard quality of products.
• Advertising campaign must be unified all over the world.
• P&G has known the fact that product experimentation of such category of products is a common way to retain the consumers to stay within their preferred brand. Old spice can engage younger male segment to their product line through product experimentation in high school and other sporting events.
• Emerging markets can boost the brand’s image globally.
• The competition in the market is fierce as male oriented market is still experiencing a rapid growth.
• Brands like Axe and Gillette are direct threat to OLD spice as their market share is larger to Old spice comparatively.
• Government’s rules and regulations, changes in the laws within the US and outside the country can affect the P&G as a company and OLD Spice as a brand.
• The economic recession has decreased the consumer purchasing power in the US, therefore the cost of raw materials and shipping has also increased.