Implications of integrating and/or fragmenting the Asian markets

There are numerous outcomes that can come from Old Spice engaging in either the integration or fragmentation of the Asian markets by the CPG manufacturer.

The integrated approach consists of companies such as Old Spice collaborating with a range of individuals such as vendors and business partners to find potential markets and cater the product to that region. CIO of British Airways Paul Corby describes the process as; “maintaining consistency of service, clarity of what the brand means, whilst being sensitive to a country’s needs”. Keeping this in mind when Old Spice enters the Asian market to distribute their various men’s health care products they need to ensure that they maintain their consistency across the board, and that they are considerate of the environment they are entering and how to cater for the demands in this region. Whilst Old Spices product of men’s health ware products are a universal necessity, the entry into the Asian market can be a complex equation. Whilst entry into such markets as Japan and China would mean access to a large population with a dispensable income, other countries such as Thailand or Indonesia have a vast poverty rate and low level incomes. Market Integration undertaken by Old Spice in this situation would be difficult but not unachievable, Old Spice would need to be sensitive to the cultural and religious differences between the two countries when undertaking promotional campaigns. For example such countries as China have restrictions on social media such as YouTube, the website plays a large role in the company's promotional campaigns as described earlier in the report, and would be a damaging blow on the success of Old Spice’s entry into this market. The implications of this would be that Old Spice would need to re-examine their marketing strategy in this country, but the nature of the integration system allows for companies to be faster and nimbler to changing opportunities. Whilst Old Spice’s prevailing social media campaign may be hindered, they can target other opportunities such China’s huge television audiences, with over 1 billion individuals (Wikipedia, 2016) tuning in to an array of programs.

Contrasting to this method the fragmented approach consists of organisations recognizing the diverse nature of the global market, and realising that whilst cultures, values and needs are different, they need to cater for their specific markets needs in order to be successful in a particular region. When engaging in this form of marketing Old Spice need to divide the market into four categories, psychographic, demographic, geographic, and behavioural segments (See Appendix 1.2). This allows for Old Spice to recognize and divide the market according to structure of the population, different countries acclamations, knowledge/usage/response to the product, and based on the various personalities of consumers. For example if Old Spice was to engage in this method they would need to gain an enormous and in-depth analysis of the chosen country, which would result in huge expenses due to the need to research the countries different segments appropriately.

Based on the implications discussed, Old Spice would be better suited to market integration as it allows for the company to seamlessly integrate and align their core values with that of their consumers and target market. This marketing technique is of the best interest to Old Spice as it will allow for the company to be more proactive rather than reactive to changing environments, to better maintain their products presence and dominance in the region.

Social media research facilitate the firm’s business growth in the global marketspace

Research of social media in the global marketspace can be beneficial for a business and its growth in the global market space. Statistics provided by Chaffey (2016) show that at January 2016, there were 2.307 billion active social media users across the globe, which is a 10% (219 million people) growth from January 2015. These figures show that social media is a profound channel of communication for businesses and a promising facilitator of growth. With social media use rapidly growing globally, businesses can capitalise on this to gain mass exposure for their brand. Social media research can help facilitate business growth by providing vital information to a firm’s strategy when choosing to actively advertise or participate in social media interactions. Old Spice can use social media research as a tool to obtain information about the male personal care market, such as personal behaviour of consumers, social behaviour, and the social aspects theory. More importantly, Netnographic studies and sentiment analysis.

Netnography is primarily a qualitative research method in studying behaviours of online communities and provides consumer insights in regard to a product or service.  “Netnography is essentially ethnographic research applied to the web” (Rocca, 2014). This research involves a business to follow conversations online between consumers about its products on its social media sites (Facebook, twitter etc.) and develop a data set that can be analysed for commonalities (What is netnography?, 2011) and using that information, the firm can determine common trends with certain cultures or with different age groups and adapt its strategy to further improve or maintain certain patterns of consumer reactions. By using netnographic as a research method, Old Spice can gain a better understanding of its consumers and how they receive the products being offered and their experiences with the products. For example, Old Spice may conduct netnographical research on its Facebook page, monitoring discussions on threads about its deodorants and may discover that some consumers react negatively to the odours that old spice offer and may discuss probabilities of new scents that they may desire or are using from other companies. Old Spice can take this information and discover a business opportunity to introduce new scents for its deodorants in addition to those currently on offer.

“Sentiment analysis and opinion mining is the field of study that analyzes people's opinions, sentiments, evaluations, attitudes, and emotions from written language.” (Liu, 2012). It is paramount that firms understand how consumers are talking about their products and understand how consumers are perceiving the brand and expressing that to other users or potential users. With the internet being the fastest and easiest way to express positive or negative opinions about products, it has become one of the main channels that consumers use to gain information about a product or brand pre purchase and use this information to come to a purchasing decision (Browning, 2013). Old Spice can use a sentiment analysis to track negative reviews, new product perception (suggestions for new products), brand perception (how consumers feel about Old Spice as a brand), and reputation management.

Social media research can facilitate business growth in the global marketspace by providing firms with the necessary information to further develop products and advertisements based on consumer opinions and input rather than guessing what consumers want.

References:

What is netnography?, 2011, video recording, SAGE Publications, Inc., Thousand Oaks, CA. Viewed 10 May 2016, doi:http://dx.doi.org.ezproxy.lib.swin.edu.au/null.

Liu, B 2012, Synthesis Lectures on Human Language Technologies, May 2012, Vol. 5, No. 1 , Pages 1-167

Browning, V. So, K. & Sparks, B. A. (2013). The Influence of Online Reviews on Consumers’ Attributions of Service Quality and Control for Service Standards in Hotels, Journal of Travel & Tourism Marketing, 30 (1-2) 23-40.

Two way dialogue between the brand and consumers

“Old Spice, a decidedly old-school Procter & Gamble brand, unleashed a social media blitz so profoundly brilliant that it not only changed the rules of social network marketing, it may have written them for the first time” (Reiss, 2010). The old spice commercial brand revolutionised the social media scene transforming the brand right before the customer’s eyes. Using comedic marketing techniques together with a ‘shirtless, magnetic presence of actor Isaiah Mustafa’, we get a sense of the overwhelming presence of sex appeal, from the ‘former NFL wide receiver who goes big--very big--here’. Mustafa’s opening tagline which captivates listeners from the very get go. “Hello, ladies,” he thunders. “Look at your man. Now back at me. Now back at your man. Now back to me” (Lippert, 2010).

Since social media has come onto the scene, big named brands have been trying to get in the limelight. They do this because Social media is an important aspect of any brand. According to HubSpot, “social media produces almost double the marketing leads of traditional outbound methods” (Edgecomb, 2013). But how does this connect to two-way conversation? Well Old Spice created the lead by broadcasting a very interesting and captivatingly funny television commercial, which then people took to social media to talk about. Old Spice used this opportunity to further communicate their brand. They did this by taking to Youtube with personalised video’s for consumers and also posting funny comments on Twitter (See Appendix 1.1).

In the first three months of 2010 Old Spice captured 75% of all conversations about the product. Half of this Buzz was generated by women. So from this the Response Campaign was born. In two and a half days a team of developers and producers and creative geniuses created 186 video responses to fans and celebrities about questions on Twitter, Facebook, Reddit and more. “On social media, the “Responses” campaign was deployed mainly through Twitter and YouTube and delivered customized tailored content in a flash” (Top Ad Campaign of the 21st Century, 2015). These videos were then posted on Youtube sparking a social-media sensation that spread through thousands of people. On one day alone the campaign received 5.9 million Youtube views, after a week that rose to over 40 million views.

“Unlike a one-way conversation, where companies dominate the conversation and don't really engage, a two way conversation allows companies to interact and engage with consumers in a direct and responsive way” (Edgecomb, 2013). It’s not all about forcing your message onto the public, Old Spice new this and took comfort in knowing that their product was seen as ‘Cool’, and ‘Funny’. The once traditional aftershave brand label with ties to grandparents was reinvigorated into their new body wash product. Old Spice was marketed to the ‘average Joe’, they wanted to have a conversation with their customers says Paula Borowska. ‘Old Spice wanted to create a relationship, which the value of is irreplaceable’. (Borowska, 2013). In the commercials, the Old Spice Man would ask the audience for requests, revealing that they cared for their customers. This contributed to the overall success and the viral status of the commercial. Within the first six months of ‘the man your man could smell like’, sales increased 27%. The commercial itself made over 1.4 billion impressions (Borowska, 2013). Alternatively online Old Spice's Facebook page has gotten more than 7,000 comments (and 13,000 or so "likes"). Look again, at YouTube, where it's been viewed more than 3 million times” (Lippert, 2010).

For two-way communication to work over the internet the company needs to first direct 80% of communication towards adding value, and brand building. ‘Examples of these include, sharing news, ideas, educating and creating delightful content. The other 20% of communication should be focused on endorsing products and upcoming events’ (Edgecomb, 2013). This in-turn makes the company more personal and actually embodies the company's culture onto the public.

References:

Lippert, B 2010, 'Man, This Man Can Sell', Brandweek, vol. 51, no. 9, p. 20

Edgecomb, C 2013, ‘Social Media Marketing: The importance of two way conversation’, Impact, https://www.impactbnd.com/blog/social-media-marketing-the-importance-of-a-two-way-conversation

'Top Ad Campaign of the 21st Century', 2015, Advertising Age, vol. 86, no. 1, p. 0018.

Borowska, P 2013, ‘What can Old Spice teach us about effective marketing?’, Viral Marketing, Creative Guerrilla Marketing, http://www.creativeguerrillamarketing.com/viral-marketing/can-old-spice-teach-us-effective-marketing/