1. Megan Eisenbrown, Juliet Levine, Hillary Pond and Rachel Woloszynski

2. Agenda IntroductionIndustry StructureAdvertising Strategies Analysis & Recommendations

3. Why Soaps & Detergents? Regularly and frequently purchased products Brand loyalty to household products Key players stand out High advertising-to- sales ratio

4. Soap & Cleaning Compound Manufacturing in the United States

5. Industry Overview Definition: Substances that loosen and remove soil from a surface for personal hygiene, sanitization or cleaning clothes, linens, and furnishings. Major products: Soaps and detergents, polishes and other sanitation goods, surfactants and finishing agents Major functions: Prepare, manufacture, and package cleaning compounds

6. Soaps & Detergents Overview

7. ProductProducer Cost Consumer Cost: Average Retail Price Laundry Detergent Ingredient costs are 35- 40% of wholesale price Labor costs absorb 20% of total costs High initial capital expenditures for plants and technology $5 Soap$2.50 Dishwashing Detergent $2

8. Demand Drivers World Price of Crude Oil Per Capita Disposable Income Drive/stifle industry growth

9. Demand Drivers FY13: The increase in per capita disposable income is expected to drive growth in the industry in 2013.

10. International Trade Industry exports generate $8.6B annually, or 15.4% of industry revenue. Core Market Expansion Opportunity

11. International Trade

12. Market Segmentation Commercial Sales Food Service Establishments Healthcare Providers Lodging Establishments Household Sales Supermarkets and Mass Merchandisers Convenience Stores Independent Retailers Soaps and detergents are sold directly from the wholesaler to commercial businesses and through retail outlets for the everyday, average consumer

13. Market Segmentation

14. Barriers to Entry Factors affecting entry Mature Life Cycle Government Regulation High Competition High Marketing Costs High Capital Costs Medium Concentration Overall difficulty of entry: Medium

15. Competitive Landscape Companies: 1,964 Major Players: 4 HHI: 541.71 “ The top 50 companies hold about 90% of the market.” -FirstResearch

16. Major Players Ecolab Market Share: 5.9% FY12 Profits: $3.2B 5-Year Growth Rate: 6.7% Brands: Ecolab S.C. Johnson Market Share: 9.5% FY12 Profits: $15.2B 5-Year Growth Rate: 2.9% Brands: Pledge, Glade, Windex, Ziplox Colgate-Palmolive Market Share: 5.7% FY12 Profits: $3.1B 5-Year Growth Rate: 2.4% Brands: Colgate Toothpaste, Irish Spring, Palmolive Procter & Gamble Market Share: 19.6% FY12 Profits: $10.7B 5-Year Growth Rate: 3.4% Brands: Tide, Cascade, Charmin, Crest

17. Industry Trends Employment Fewer workers due to increased automation Decrease in production costs Emerging Markets The U.S. market is stagnant Increased of acceptance of products and per capita income in undeveloped nations Increasing Regulation Further the green movement within the industry

18. Strategies and Analysis

19. Product Differentiation

20. Differentiated Packaging

21. Cross Promotion

22. Online Advertising & Social Media Add pictures

23. Informative

24. Ad Characteristics Observations Frequency of Characteristics Mentioned: High Average Number of Characteristics Mentioned: 3 Common Trends: cleaning power, concentration Frequency of Characteristics Mentioned: Medium Average Number of Characteristics Mentioned: 2 Common Trends: freshness, clean boost, scent Frequency of Characteristics Mentioned: Low Average Number of Characteristics Mentioned: 0-1 Common Trends: clean, color enhancement

25. Sales Promotion

26. YouTube

27. Celebrity Endorsement http://www.youtube.com/watch?v=fxVUPe2 nQj8

28. Humor Advertising

29. Comparative Advertising

30. Sustainability Initiative

31. Social Responsibility

32. Sponsorships

33. Brand Loyalty “That’s my Tide. What’s Yours?” “Get Irresistibly Fresh” “It’s All Good”

34. Brand Equity Goodwill (2012) In Billions Procter & Gamble53.773 Colgate-Palmolive Co. 2.5 Johnson & Johnson 22.424

35. Comparing the Top 3 Companies in the Industry

36. Total Advertising Expenditure by Company

37. Advertising-to-Sales Ratio

38. Analyzing Raw Data

39. Spending per Media Type

40. Spending per Network

41. Spending per Program Type

42. Advertising Expenditure by Product

43. Spending per Network

44. Spending per Program Type

45. Spending per Week Day

46. Spending by Day Part

47. Product Spending on Prime Daypart Total Ad Spending Percent of Total Spending on Prime All$8,228,173$19,878,16041% Gain$3,719,908$8,898,49942% Tide$29,486,556$67,277,10244% Ad Spending on Primetime

48. Ad Observations: Key Findings High frequency of characteristics Limited to no comparative advertising No celebrities, humor, or emotion Demographic: children Gain Repetition of the word “Freshness” References to “that other stuff” in indirect comparison Money back guarantee Humor was evident in almost all cases Tide Library of commercials was extensive Humor and emotion was evident in almost all cases Demographic: parents “That’s my Tide. What’s yours?” All

49. Ad Observation: Spanish Demographic

50. Industry and Advertising Analysis

51. Investment Barrons

52. Procter & Gamble Co

53. Advertising Strategy Exploring less saturated markets globally Promoting sustainable side Expanding the target demographic Innovation

54. Questions?