BRAND PLAN Andrew Le | February 2015
Project Synopsis • Detailed SWOT analysis on Harpic brand • Use of Quantium, Nielsen and Euromonitor • 3 year plan for Harpic including NPD, EPD and BDI
Today’s Agenda 1. In-Market Performance 2. Strengths, Complications and Opportunities 3. Recommendations 4. 3 Year Plan
The total lavatory care market is worth a collective $115m as at MAT 14/12/2014.
MTC
• • •
Power Plus Liquid White & Shine Liquid Active Fresh Liquid
ITB
• • • •
Active Fresh Hygienic Super Active Hygienic Plus Active Blue Freshener
ITC
• • • • •
Active Blue Freshener Flushmatic Active Long Life Dual Action Blocks Power Plus Foaming
Harpic is the clear market leader, with a MS of 36.3% of lavatory care at MAT 14/12/2014.
MAT TO 14/12/2014
TOTAL LAVATORY CARE SEGMENTS TOTAL MANUAL LIQUID TOTAL I.T.B TOTAL I.T.C TOTAL MANUAL POWDER TOTAL LAV CARE OTHER TOTAL HARPIC (L) TOTAL HARPIC MANUAL LIQUID TOTAL HARPIC I.T.B BLOCK TOTAL HARPIC I.T.C TOTAL HARPIC MANUAL POWDER TOTAL HARPIC LAV CARE OTHER
Source: Nielsen ScanTrack
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Val Sales ('000)
Val % Chg YA
115,970 42,752 50,923 18,192 1,958 2,145 42,057 16,645 15,792 6,766 1,958 897
YTD TO 14/12/2014
Val % Share
Val % Share +/YA
Val Sales ('000)
Val % Chg YA
1.9
100.0
0.0
111,430
1.5 -0.3 8.7 -1.7 11.6 0.4 1.6 -6.9 22.1 -1.7 -10.6
36.9 43.9 15.7 1.7 1.8 36.3 38.9 44.0 37.2 100.0 41.8
-0.1 -1.0 1.0 -0.1 0.2 -0.5 0.0 -3.9 4.1 0.0 -10.4
41,190 48,809 17,478 1,879 2,074 40,392 16,085 15,084 6,487 1,879 857
QTR TO 14/12/2014
Val % Share
Val % Share +/YA
Val Sales ('000)
Val % Chg YA
1.8
100.0
0.0
28,370
1.3 -0.4 9.1 -3.1 11.7 0.1 1.3 -7.0 21.4 -3.1 -11.4
37.0 43.8 15.7 1.7 1.9 36.2 39.1 43.8 37.1 100.0 41.3
-0.2 -0.9 1.0 -0.1 0.2 -0.6 0.0 -4.0 3.8
10,496 12,255 4,564 494 562 9,764 3,883 3,466 1,713 494 207
0 -10.7
MAT Harpic +0.4% vs. PY driven by: • MTC: +1.6% – PP MTC re-ranging and ATL, W&S bonus packs. • ITC: +22.1% – NPD launches of Long Life, Dual Action and Thor. • ITB: -6.9% – Deletion of PP ITB and heavy promo challenges.
Harpic is in a strong position to defend its market leadership.
4W/E 14/12/2014
Val % Share
Val % Share +/YA
Val Sales ('000)
Val % Chg YA
Val % Share
Val % Share +/YA
0.5
100.0
0.0
9,360
3.8
100.0
0.0
-1.8 -1.0 8.7 -1.6 24.8 -2.9 -2.9 -8.6 12.3 -1.6 -13.9
37.0 43.2 16.1 1.7 2.0 34.4 37.0 40.4 37.5 100.0 36.9
-0.9 -0.7 1.2 0.0 0.4 -1.2 -0.4 -4.4 1.2 0.0 -16.6
3,515 4,073 1,427 161 184 3,431 1,487 1,154 567 161 62
3.1 3.1 5.0 0.3 29.3 5.0 21.1 -10.1 9.7 0.3 -20.2
37.6 43.5 15.2 1.7 2.0 36.7 42.3 39.9 39.7 100.0 33.8
-0.3 -0.3 0.2 -0.1 0.4 0.4 6.3 -6.1 1.7 0.0 -21.0
Harpic’s shelf presence in Coles is highly effective and conducive to cross-shopping. MAT TO 16/11/2014 NATIONAL COLES SALES
Val Sales ('000)
Val % Chg YA
Val % Share
TOTAL LAVATORY CARE
$40,242.8
1.8%
100.0%
TOTAL HARPIC (L)
$16,158.1
3.7%
40.2%
Source: Nielsen ScanTrack
• Harpic is growing (+3.7%) at double the rate of Coles (+1.8%). • Brand blocking, with many Harpic products located at eye level. • Products are evenly spaced, effective for crossshopping purposes. • 41% share of shelf at Coles compared to 27% at WW. Coles layout is in a strong position and we can use other means to drive growth.
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The layout in Woolworths is challenging, and as a result, Harpic products are underrepresented. MAT TO 16/11/2014 NATIONAL WOOLWORTHS SALES
Val Sales ('000)
TOTAL LAVATORY CARE
$56,120.1
TOTAL HARPIC (L)
$17,929.1
Val % Chg YA 3.1%
Val % Share 100.0%
-0.8% 31.9% Source: Nielsen ScanTrack
• Harpic is declining (-0.8%) while WW lavatory care is growing (+3.1%). • No products located at eye level. • MTCs are our largest segment and located on 2nd last shelf from the floor. • 27% share of shelf at WW compared to 41% at Coles. Growth potential is more difficult at Woolworths. We cannot rely solely on the layout to drive growth.
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Strengths, Complications & Opportunities
We begin from a strong base, given that Harpic is a globally recognised brand in the lavatory care market. Strengths Branding • Trusted market leader with MS of 36.3% MAT. • High total awareness and brand consideration.
Loyalty • High loyalty rates, with 1/3 of total penetration consisting of heavy Harpic users. Diversification • Presence across all toilet care categories. • Well-known MTC range extends across the 3 cleaning need states.
Implications/So what? ! Opportunity to leverage and defend status as the #1 brand. ! Strong brand equity and powerful cleaning credentials. ! Leverage loyal base of customers and promote cross-shopping. ! Exploit this point of difference and use it to Harpic s advantage. ! Opportunity to drive cross shopping with other products.
According to BAT Q3 2014, Harpic offers a vast range of powerful cleaning products. It is a brand that consumers love and trust.
Is a high quality brand Is good value for money Offers me distinctive benefits versus other brands Is a brand I trust Is a brand I love Kills germs better than any other cleaning brand Is safe and gentle enough to use on different surfaces Helps maintain a healthy home for my family Has a pleasant fragrance Is an expert in lavatory care Lets your toilet smell clean and fresh all the time Reassures you that your toilet will not embarrass you Helps me clean my toilet quickly and easily Is an innovative brand Removes tough dirt that other cleaners don't Offers products for lots of my cleaning needs Source: IPSOS BAT Tracker Q3 2014
Harpic
Duck
102 91 109 103 106 119 107 100 91 96 91 96 100 101 117 115
98 110 90 97 93 79 93 100 110 105 110 105 100 99 81 83
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In comparison to Duck, Harpic leads on most metrics and is in a unique position to continue to build brand equity and accentuate the cleaning credentials.
Consumers have a high total awareness and consideration of Harpic, and it is used more often than Duck. % Diff to Q2 14
% Diff to Q2 14
=
-1
+4
+2
-1
-2
-2
-3
-1
-3
-1
-1
=
+1 Source: IPSOS BAT Tracker Q3 2014
Consumers have a stronger connection with Harpic than Duck; more have purchased and used a Harpic product.
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Of the top 3 players in the MTC segment, Harpic leads with the highest loyalty score from the past 52wks.
Harpic is in a unique position to leverage its loyal customer base and reap cross-shopping opportunities.
39% of people agree that Harpic is a brand for me , while 33% of people agree that Duck is a brand for me .
Brand Relevance (% Agreement ‘It is a brand for me’)
Source: IPSOS BAT Tracker Q3 2014
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Harpic is highly relevant in today s market and has a strong customer base from which we can continue to drive loyalty.
From a trade perspective, lavatory care is a heavily-promoted and competitive market. As such, there are important complications to overcome. Complications Branding and product range • Lack of differentiation within the ITB segment. Unmet needs • Failure to meet the low-chemical need. • Global deletion of Power Plus ITB has left a gap in repertoire and resulted in a loss of customers. Competitive marketplace • Price-driven market making it increasingly difficult to compete while keeping premium positioning intact.
Implications/So what? ! Repertoire must be clearly differentiated. ! Explore the feasibility of tapping into the low-chemical need. ! The need to fill this gap in order to revive the segment. ! The need to combat price wars without resorting to heavy promotions.
High switching from Hygienic to Hygienic Plus ITB suggests the lack of differentiation. Switching to Hygienic Plus ITB
The lack of product differentiation has led to in-brand switching rather than incremental growth. This reveals the need for a more differentiated repertoire.
Harpic and Earth Choice MTC sales have both grown steadily over the past 4yrs. Earth Choice is now #4 in MTC category. MTC Sales 18000 16000 14000
Sales ('000)
12000 10000
TOTAL HARPIC MANUAL LIQUID
8000 TOTAL EARTH CHOICE MANUAL LIQUID
6000 4000 2000 0 YEAR 2010 YEAR 2011 YEAR 2012 YEAR 2013 YEAR 2014 Year
MTC
2010
2011
2012
2013
2014
Total Harpic MTC
15.84
16.86
15.6
16.5
16.6
2.4
2.67
2.85
3.08
3.19
Total Earth Choice MTC
Duck is perceived to have more pleasant fragrances than Harpic. BAT Tracker Q3 2014 Harpic
Duck
Is a high quality brand
102
98
Is good value for money
91
110
Offers me distinctive benefits versus other brands
109
90
Is a brand I trust
103
97
Is a brand I love
106
93
Kills germs better than any other cleaning brand
119
79
Is safe and gentle enough to use on different surfaces
107
93
Helps maintain a healthy home for my family
100
100
Has a pleasant fragrance
91
110
Is an expert in lavatory care
96
105
Lets your toilet smell clean and fresh all the time
91
110
Reassures you that your toilet will not embarrass you
96
105
Helps me clean my toilet quickly and easily
100
100
Is an innovative brand
101
99
Removes tough dirt that other cleaners don't
117
81
Offers products for lots of my cleaning needs
115
83
Source: IPSOS BAT Tracker Q3 2014
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Harpic is under-delivering on fragrances and sensorial needs while Duck is performing extremely well on these metrics; a major threat to Harpic.
The deletion of the Power Plus ITB is a key driver of the ITB category s decline. Switching from Power Plus ITB
Gains and Loss from Power Plus ITB
Harpic needs to recover from the deletion of PP ITB as this has resulted in an unmet need in the PP range.
The bulk of switching from Harpic W&S MTC is going to Duck Bleach 650mL MTC. Switching from White & Shine MTC
Customers are switching from W&S to Duck Bleach because larger MTC bottles for W&S and PP are still an unmet need.
Duck and White King have heavily promoted their MTCs in both Coles and Woolworths.
(Pro-rata)
Source: Nielsen ScanTrack
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Source: Nielsen ScanTrack
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Promotional challenges from Duck and White King have threatened Harpic s position and raise the need for Harpic to attack these challenges through other means.
In the ITB category, Duck leads with 83.0% loyalty while Harpic is at 80.3%. MTC Loyalty Scores
#1 Duck #2 Harpic
In the ITB segment, Duck customers are more loyal than Harpic customers. Harpic needs to address the ITB shortfalls to successfully challenge in this segment.
Yet, given these complications and threats, there are significant opportunities moving forward. Opportunities Branding • Increased commitment to corporate social responsibility (CSR) and improved communications model. Online presence • An online presence on forums, review sites or social media currently does not exist for Harpic. Cross shopping • Opportunity to instinctively promote cross shopping of Harpic products instead of dual brand usage. Innovation • Overcome price competitiveness with leading innovations and steal share in the declining ITB segment.
Implications/So what? ! Stronger focus on CSR will act as a point of difference. ! Leverage online presence to drive brand personality and consumer connection. ! Benefits of cross shopping must be well-explained and communicated. ! Harpic must become the market leader across the board.
An opportunity exists for Harpic to further increase its commitment to CSR, and more importantly, revamp the communications model.
A stronger focus on CSR will act as a clear point of difference against other brands. With an effective communications model in place, this CSR focus will have a positive impact on customer loyalty, brand equity and market share.
There is currently no online presence that we can use to push brand superiority or develop rapport with customers.
An online presence would truly drive the brand, increase brand awareness and allow us to reinforce the expert positioning .
Including all lavatory care brands, 17% of consumers purchased an MTC with an ITB. Cross-shopping of all products from all brands
Any ITB
Any MTC
Any ITC
Cross-shopping of all products from Harpic
Harpic MTC
Harpic ITB
Harpic ITC
We are under-delivering in the cross-shop of an MTC with an ITB. Substantial opportunity to catch up with the market and heavily promote cross-shopping.
In last 52wks, 9% of customers purchased a Harpic MTC with a Harpic ITB. Cross-shopping in Harpic Only
Harpic MTC
Harpic ITB
Cross-shopping between Harpic MTC and Duck ITB
Harpic MTC
Duck ITB
Dual brand usage largely due to Duck s pricing, range and liquid ITB range. There is an opportunity to encourage switching within the ITB market.
ITBs are expected to decline over the next 5yrs. Meanwhile, ITCs and MTCs are expected to register some growth.
AUD $m
2013
2014
2015
2016
2017
2018
Manual Toilet Cleaner (MTC)
37.4
38.1
38.8
39.5
40.4
41.3
In The Bowl (ITB)
80.2
81.1
79.9
78.8
77.8
77.1
In The Cistern (ITC)
14.4
14.6
14.9
15.2
15.5
15.9
Source: Euromonitor International
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Market trends suggest that we should steal share within the ITB segment and capitalise on the growth of the MTC and ITC segments with innovations.
Recommendations
Vision: Harpic to be the expert brand of choice for toilet cleaning, ensuring consumers have confidence in the cleanliness of their toilet.
CHALLENGE
OPPORTUNITY
Lack of innovation
Market leaders in innovation
Declining ITB segment
Filling the void with NPD
Price-driven market
Loyal customers and cross-shopping
Ineffective communication of CSR
Brand ownership and “doing good�
Ineffective use of media
Online presence and digital platforms
#1 New Harpic Active Fresh Pure Gel Thick plant-based gel that cleans and disinfects before your eyes, containing 25% less chemicals than liquid bleach. I don t want to expose my family to harsh chemicals, but I also don t want to compromise on cleaning power. I want a low-chemical cleaner that is safe and actually removes tough stains. Introducing the new Harpic Active Fresh Pure Liquid, specially formulated for spotless cleaning without the harshness of chemicals. 1. 25% less chemicals – Compared to liquid bleach, the new plant-based gel kills 99.99% of germs on contact but contains 25% less chemicals, making it safer for you and your family. 2. Clings to entire bowl – The superior cling allows for maximum coverage and minimum wastage, dissolving even the toughest stains removed with minimum effort. 3. Fresh scent – As Harpic s most natural product to date, this liquid neutralises odours and leaves a pleasant fragrance that keeps the toilet smelling fresh. 4. Recyclable packaging – Active Fresh Pure bottle is fully recyclable and biodegradable to Australian standards AS4351.
For illustrative purposes only
Price: $4.39 for 700mL Available in Oxygen Splash and Lime fragrances. All other Harpic products remain available. Mintel Feb category insight.
#2 New Harpic White & Shine Bleach Foam A powerful foam with advanced technology that clings to the bowl for a sparkling white shine right before your eyes. I don t like spending too much time cleaning and just want to get the job done. I want a product that really clings to the bowl, gets under the rim and gives me a clean that I can see. Introducing the new Harpic White & Shine Bleach Foam, incorporating the power of foam and spray action to efficiently clean your toilet and leave a brilliant shine. 1. Clings to the bowl – Unlike some toilet cleaners, the bleach foam clings straight onto the bowl so that it s easier to remove tough dried-on stains. 2. Wide nozzle for maximum coverage – The foam coats the bowl better than your regular cleaning liquid, expanding under the rim and disinfecting with just 1 application. 3. Sparkling white shine – The powerful bleach-based formula contains baking soda and active ingredients, resulting in a glowing shine and killing 99.99% of germs on contact. 4. Value for money – The aerosol container has been designed to ensure that you won t miss the last drop. Proven to last for more cleans than liquid bleach (pending subs).
For illustrative purposes only
Price: $3.89 for 390g Available in Citrus and Original Fresh fragrances. All other Harpic products remain available.
While the smell of bleach often denotes clean , consumer consensus tells us that the smell is overpowering and unpleasant.
Harpic White & Shine is already delivering on fragrance. But as a market leader, we can push this agenda further, capitalise on consumers perception of our bleach and go one better!
#3 New Harpic White & Shine Oxi Action Gel Bleach gel that leaves a sparkling white shine and lasting fragrance, and most importantly, doesn t smell like bleach. I know that bleach is really powerful but I hate its overpowering smell. I would like the best of both worlds, I want the power of a bleach clean but I also want a pleasant scent. Introducing new Harpic White & Shine Oxi Action Gel, incorporating oxygen action and bleach in a revolutionary new formula that gives you a super clean without the bleach smell – a healthier clean! 1. Light fragrance – You won t even know that this new gel contains bleach, as it leaves a sensational fragrance (Lemon Lime or Ocean Mist) that is welcoming and lasting. 2. Sparkling white shine – With its unique formula, White & Shine Oxi Action leaves your toilet bowl gleaming and glistening every time without fail. 3. Better cling – The thickness of the gel ensures that you get maximum coverage around the bowl and under the rim for a superior clean. 4. Germ kill – White & Shine Oxi Action is proven kill 99.99% of germs, such as E. Coli and Staphylococcus, making sure that your toilet is always hygienic for your family.
For illustrative purposes only
Price: $3.64 for 450mL Available in Lemon Lime and Ocean Mist fragrances. All other Harpic products remain available.
Power Plus Cageless Rim Blocks Cageless toilet rim block that does all the work for you, ensuring you have a rapid in-the-bowl clean with every flush. I want to have the confidence that my toilet is being cleaned, freshened and disinfected with every single flush. I want powerful rim blocks that get the job done – the less time spent cleaning, the better! Introducing new Harpic Power Plus Cageless Rim Blocks, designed to kill germs, fight nasty smells and keep your toilet hygienically clean at all times. 1. Baking soda power force – The baking soda formula provides a better clean than other rim blocks and results in a superior foaming action. 2. Unique design – The cageless design means no touching a germy cage and no mess. The extra-long width means that there is extensive coverage of your toilet bowl for a powerful clean with every flush. 3. Rapid power action – With the addition of fragranced gel ends, these rim blocks work hard to eliminate nasty toilet odours and deliver a brilliant clean. 4. Value for money – Power Plus Cageless Rim Blocks are the best solution for a long-lasting clean, as each block lasts up to 4 weeks.
For illustrative purposes only
Price: $3.59 for 80g Available in Citrus, Lavender and Rainforest fragrances. All other Harpic products remain available.
Rebranding of Hygienic Plus ITB to Power Plus Objective
• Fill the void left by the deletion of Power Plus ITB. • Streamline the Harpic repertoire.
Description Rebranding of Hygienic Plus ITB to Power Plus ITB as an effective and efficient solution to filling the gap in the Power Plus range. Given that Hygienic and Hygienic Plus are undifferentiated, this is an opportunity to continue the move towards a completely streamlined brand. Strategic Rationale • Expand Power Plus range – Power Plus ITB is the last product needed in this range. • Revive ITB segment – Streamline convoluted segment. Consumer Benefits • Consumers will be able to purchase complementary Power Plus product offerings across MTC, ITC and ITB. • Ability to cross-shop within the same range. Marketing Support • Tagging in a Power Plus MTC ad. Key Challenges • Is Hygienic Plus too well-established? • Managing the deletion of Hygienic Plus products. • Changeover process with new packaging.
#4 New Harpic Power Plus Foaming Rim Block Revolutionary toilet rim blocks with 4x Rapid Power Action to ensure all-round cleaning with every flush. I want to have the confidence that my toilet is being cleaned, freshened and disinfected with every single flush. I want powerful rim blocks that get the job done – the less time spent cleaning, the better! Introducing new Harpic Power Plus Foaming Rim Blocks, designed to offer 4 distinctive benefits for a superior inthe-bowl clean. 1. 4x Rapid Power Action – With its perforated ball design, each of the 4 rim blocks serves a different purpose: cleaning, dirt protection, germ kill and freshness. 2. Foaming force – Super foaming clean that maximises coverage and disinfects every area of the toilet. 3. Baking soda formula – With the addition of baking soda, a light fragrance is released with every flush so that you can be reassured that your toilet is always hygienic. 4. Anti-bac cage – The anti-bacterial shield ensures that the cage is always germ-free for your personal hygiene and peaceof-mind. 5. Value for money – The controlled release means that this new product kills germs and freshens for 6 weeks!
For illustrative purposes only
Price: $3.59 for 80g Available in Citrus and Fresh fragrances. All other Harpic products remain available.
#5 Product Bundling Objective
• Increase cross-shopping of Harpic products • Drive brand loyalty through value-for-money
Description Hard bundles (bulk discount bundle packs) and soft bundles (3 for 2) will drive both cross-shopping and loyalty for Harpic. Strategic Rationale • Specifically push cross-shopping agenda. • Boost Harpic loyalty and decrease dual brand usage. • Align with online channels. Consumer Benefits • More flexibility and choice. • Value-for-money proposition. Key Challenges • Creation of bundle packaging. • Retailer support. • Negotiation of shelf space.
Product bundling will maximise value-for-money, loyalty and cross-shopping opportunities. Bundle packs to be sold at:
Examples of offers:
Advertising support: • Websites and ATL tags • Creative activations, eg. interactive JCDecaux signage • Facebook ads • Catalogue promotions • Shelf fins Because Harpic has market power, product bundling can strengthen our shelf presence and force consumers to see the benefits of purchasing complementary goods.
#6 CSR Communications Model and Initiatives Objective
• Effectively communicating CSR as a differentiator • Movement towards our vision of a safe toilet for all
Description CSR at Harpic does exist, but it is under-developed and under-communicated. In addition, Harpic Australia has never participated in the annual World Toilet Day. Strategic Rationale • Further drive brand and reputation. • Forward-thinking communications. Consumer Benefits • Yet another reason to purchase Harpic. • Clear point of difference against other brands. Key Challenges • Stakeholder support and consensus. • Organising and executing large-scale events. • Carry out labelling/packaging changes.
Currently, our partnership with Save The Children is poorly communicated to consumers.
UN-recognised World Toilet Day raises awareness about the importance of sanitation. World Toilet Day event ideas: • The big squat (Guinness World Record attempt) • Harpic walk-a-thon • Toilet summit/seminar
Annual reports, event activations and product labelling will increase customer loyalty, improve brand image and align our products with the overarching Harpic/RB vision.
#7 Online Presence Objective
• Build brand superiority through online engagement • Humanise the brand via digital marketing
Description Blatant opportunity for us to exploit the online space via our website, review sites and targeted Facebook ads. Strategic Rationale • Create consumer engagement platforms. • Exert expertise and drive brand advocacy. Consumer Benefits • Connect and engage with the brand. • Provide feedback/praise/criticism more freely. Marketing Support • Develop reviews section on website. • Small incentives can be offered and promoted on stickers on packaging, shelf flyers, etc. Key Challenges • Setting up systems and platforms. • Cost, time and resources. • Encouraging customers write a review, whether positive or negative.
Diversify online presence across our official website, Facebook ads and review sites to exert market leadership in a lowinvolvement category. Official Website
Facebook Ads
Review Sites
Harpic will be able to drive awareness, diversify media spend, use customer care as a POD, start conversations, drive sales and specifically target market segments.
SEO and content strategy for Harpic is to be #1 in search in 2015. 1. 
Improve current onsite content: Ensure we address duplicate content, and that all headers/ titles/descriptions/Images are tagged up properly.
2. 
Optimise keywords: For all keywords we are ranking on page 2 & 3, focus content marketing budget towards to help improve rankings.
3. 
Expand how to type of content on the site: Making the content deeper. Currently the site is very brand and product led, it would be recommended that Harpic create content around the problems that Harpic can help solve, as well as offering more tip advice type of content.
3 Year Plan
3 Year Plan 2015
2016
2017
White & Shine Oxi Action Gel
White & Shine Bleach Foam
Leading innovation
Premium NPD Power Plus Foaming Rim Blocks
Fill Power Plus ITB (long term) Active Fresh Pure Gel
Fill low-chem cleaning need
BDI
Online Presence
CSR Initiatives
Fill online void
Build brand equity
Hard Bundling
Soft Bunding
Increase loyalty/cross-shop
Increase loyalty/cross-shop