Segmentation And Target Market Essay

1183 words - 5 pages

Segmentation and Target Market
Jennifer Jepsen
MRK/571
November 17, 2015
Carol Webster

The company selected is Procter & Gamble (P&G), a large consumer goods firm that produces many brands. This company has brands such as Oil of Olay, Bounty, Dawn, CoverGirl, and Duracell (Duhigg, 2012). P& G utilizes a multiple brand strategy successfully, and has influenced air care with another brand—Febreze. According to the 2012 Silver Effie Winner, “North America is the largest Febreze market in the world representing 43% total revenue and has the largest media spend” (Effie Awards, 2012, p. 2). Additionally, the Febreze market is diverse due to the diverse cultures, different ...view middle of the document...

Febreze has developed many segments, such as air fresheners, candles, laundry detergents, and even kitchen sprays (Duhigg, 2012). In addition, Duhigg states that these “spin-offs now account for sales of more than one billion dollars per year” (2012, p. 55).
Marketing Strategies
In the book titled, The Power of Habit: Why We Do What We Do in Life and Business, by Charles Duhigg (2012), Proctor & Gamble (P&G) is mentioned, specifically concerning Febreze as well as the study of consumer habits. P&G collected more data than almost any other merchant on earth and relied on complex statistical methods to craft their marketing campaigns (Duhigg, 2012). In 1996, Febreze was on the cusp of failure after millions of dollars were invested into the invention of a spray that could remove unwanted smells. Duhigg suggests the reason Febreze did not succeed initially is due to a lack of concentration on the consumer and his or her habits and cravings. Duhigg (2012) asserts that market researchers were searching for the product that would not only freshen homes, but eliminate odors completely. After perfecting the formula, test markets received Febreze (Duhigg, 2012). The two television commercials targeted consumers concerned with the smoking sections inside of restaurants. According to Duhigg (2012), P&G used a strategy that provided a product that removed embarrassing smells, such as cigarette smoke that clings to the clothes of non-smokers dining in a restaurant (2012). By 1998, consumers were not interested in Febreze (Duhigg, 2012). By focusing on the data collected by researchers, the company noticed the consumer wanted to freshen the air after cleaning, rather than just removing odors. Duhigg determines that by making Febreze the reward after the cleaning routines of consumers, the product could be craved and therefore viewed as a necessity to any cleaning routine (2012, p. 54).
Furthermore, marketing strategies for P&G, concerning Febreze were successful following the relaunch in 1998. According to the 2012 Effie Awards, Febreze used strategic marketing and advertising to achieve results. In 2011, P&G entered Febreze into its Hall of Fame for becoming the 24th global billion-dollar brand (Effie Awards, 2012). Febreze entered the air care category in 1998 and has achieved continued business success through new product launches. In 2010, P&G sought to reposition Febreze as a brand that eliminates odor rather than just providing freshness (Effie Awards, 2012). The results of strategic marketing include ten weeks of growth in the United States following the Breathe Happy campaign; passing marketing objective of 15% of product awareness in Italy by achieving 19% awareness; and achieving 50% brand awareness within five weeks of launch of the new campaign in Mexico concerning the new aerosol...

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