Pitch Brief: Church & Dwight

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By Max

OVERVIEW

After a relationship with WPP’s Maxus that has lasted for about 10 years, Church & Dwight Co., the leading U.S. producer of baking soda and the company behind ARM & HAMMER, Trojan, Nair and Oxi Clean, is reviewing its media agency business.

The baking soda, personal care and household cleaning products giant currently spends more than $200 million a year, according to people familiar with the current review. The company has been spending 12% to 13% of sales on advertising and plans to continue doing so said Jim Craigie, chairman-CEO, at an analyst conference earlier this year.

More than 20% of the company's media budget is allocated to digital platforms, as the company reported at the Consumer Analysts Group of New York meeting in Boca Raton, Fla. Despite the company's digital investment, Craigie, who is set to retire in 2016, indicated at the conference that the digital return is still unclear. "I like digital," he said. "But it's still very unproven what you get in bang for the buck in the digital category."

BACKGROUND SUMMARY

Church & Dwight Co., Inc., founded in 1846, is the leading U.S. producer of sodium bicarbonate, also known as baking soda, a natural product that cleans, deodorizes, leavens and buffers. The Company’s ARM & HAMMER brand is one of the nation’s most trusted trademarks for a broad range of consumer and specialty products developed from a bicarbonate base and related technologies.

Church & Dwight’s consumer products business is organized into two segments:

  1. Consumer Domestic, which encompasses both household and personal care products.
  2. Consumer International, which primarily consists of personal care products.

But, essentially, their 80 brands (including four mega brands that generate over 60% of revenues) can be broken down into two categories:

Personal care
Household

For our purposes, we will look at two of the four mega brands to represent their categories: ARM & HAMMER for household cleaning products and Trojan for personal care.

 Church & Dwight Co.’s 4 Mega Brands

  • • ARM & HAMMER
  • • TROJAN
  • • OXI CLEAN
  • • VITAMINS, MINERALS & SUPPLEMENTS (VMS)

In 2014 Church & Dwight reported worldwide net sales $3,298m, increased by 3.2%

 

 
 
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ARM & HAMMER liquid detergent is third only to Tide and Gain, established leaders in detergents, and ARM & HAMMER Plus Oxi Clean is also listed among the top 10 detergent brands. Clearly, the ARM & HAMMER brand has earned a great deal of trust as a cleaning product.

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The popularity of Trojan brand condoms (under Church & Dwight Co.) shows that the parent company’s personal care products are equally well-regarded. Church & Dwight Co.’s brands, as a rule, are long-established and highly trusted with impressive brand awareness among consumers.

MEDIA USAGE

Each brand under Church & Dwight Co. has its own very different audience with their own individual sets of preferences for media consumption.

TV GENRE PREFERENCES

Arm & Hammer

The household cleaning product consumers tend to enjoy home shopping channels and movie channels. Cleaning products might find an appreciative audience if they partnered with shopping networks, either as featured products or creative infomercials.

Trojan

The personal care audience, specifically of Trojan brand condoms, enjoy Adult-Swim / Cartoon Network style entertainment, as well as entertainment channels and music channels. While not all family channels would welcome condom advertisements, they might work well during late-night, adult-oriented animated shows.

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TV GENRE PREFERENCES

Arm & Hammer

The cleaning product audience gravitates towards food websites (like AllRecipes, FoodNetwork.com, and CookingLight), followed by beauty sites (like Totalbeauty.com, which has the #1 Alexa ranking).

Trojan

Trojan brand condom consumers visit music & entertainment sites (MTV, Rolling Stone) and motor vehicle sites (like Jalopnik and CarandDriver.com). Currently, there are no condom ads on any of these websites.


Drilling down further into an audience analysis of condom consumers, we see that the condom market is in more need of help than the household cleaning market. After all, people don’t stop using household cleaners two months into moving in a new home...

TROJAN TARGET SEGMENT ANALYSIS: 18 to 34-YEAR-OLD CONDOM CONSUMERS IN A RELATIONSHIP

A recent study conducted by Trojan highlights how the 62% of people stop using condoms within 2 months of a new relationship. We focused on this segment, in order to reach the target and engage them.

The condom consumers between 18 and 34 years old in a relationship are mostly male, with no children, who are college educated and earn in the 40-70k (61%) and 70-100k (22%) income ranges.

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TOP 10 PSYCHOGRAPHICS TRAITS

The psychographic traits describe an audience who is mostly masculine but where women are very much present.

Sports, Games and Motors interests, combined with their relative sub-segments, can be seen as typical male interests. We could describe most of this group as “Sports Addicts” who are inclined to action and combat sports like football, soccer, or MMA. Among them, gaming is very popular and taken seriously (by “Strategy gamers”) and enjoyed as a hobby (indicated by the Freetime gamers trait).

But men aren’t the only ones buying condoms.

Beauty and Fashion characterize the interests of the female part of this audience, represented by the high popularity of “Swayable Shopaholic” and “Fashion Enthusiast” sub-segments for Fashion lovers as well as “Cosmetic Queens” for the Beauty and wellness trait.

Common passions can be found in Entertainment, Food and Music, reaching the highest shares of the audience.

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MEDIA OPPORTUNITY

Insight: Television advertising opportunities are already leveraged through a Trojan partnership with MTV, an excellent fit for the Trojan audience since music is a strong passion. But MTV doesn’t have the monopoly on music - most people listen to music online through music streaming services like Spotify, Pandora, iHeartRadio and Dat Piff, which specializes in hip hop. These sites offer opportunities to advertise to targeted audiences 24-hours a day.  

Entertainment content, reaching 49% of the audience, is mostly consumed via Television and websites.

The most popular channels on television for the Trojan audience are entertainment channels that feature hip celebrities, like MTV (already partnering with Trojan Condoms), VH1 and BET. Alternatively Comedy Central collects high shares of the target along with the sports channel ESPN, outperforming any other channel in the same category.

Online, entertainment content, is mainly consumed as video content on platforms like Youtube and Best Vines (vinescope.com) and funny/weird content, usually user-generated, of ShutUpImTalking.com

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BUSINESS OPPORTUNITY

Insight: Action sports-related events are very popular with the target, and audio technology is a strong passion.

Sponsoring events is a good way to reach the target audience, especially when the event combines two attractive themes like MTV and music.

Dipping down into events category, we can find other interesting ideas for events that could attract this specific target: X Games, with its adrenalinic exhibitions, is the favorite event of this target, and other Action sports events should be considered.

Moreover, the favorite consumer electronics brands indicate a strong interest for audio technology where the top 5 brands are all operating in this market. Another brand that stands out in the ranking is Powermat Technologies (Rel 142.1) which produces products to recharge mobile and wireless devices. Partnering with this company presents another possible opportunity to engage the target, maybe by developing a campaign around small, cheap speakers for music Trojan users can enjoy with a partner.

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CREATIVE INSIGHTS

Insight: Bizarre, offbeat Entertainment content is eye-catching for them. Hip celebrities can catalyze their attention. Unconventionally-themed challenges/contests could activate them.

To determine which kind of content  could engage this audience, we analyzed two elements that reach broad shares of the target: Entertainment and Music.

As we saw in the psychographics section, this audience can be defined as Entertainment Junkies, and by analyzing this trait’s sub-segment, we can precisely position them as Entertainment Watchers - meaning that they don’t look for strong emotion or information, but rather watch programs to be entertained and have fun without effort.

Looking at their favorite TV Shows, we found that the Trojan audience enjoys the simple storylines of Family-Oriented shows and Game Shows along with Reality Shows.

In the game shows ranking, fitting in with the gaming-oriented audience, Silent Library is the most relevant TV show. Silent Library features pop culture celebrities and offbeat challenges only an originally Japanese game show could produce: Six friends competing for a cash prize who have to remain silent as one of them is forced to endure a bizarre stunt - all while seated in a library setting.

Movies follow the same path, with Horror Movies at the first place as favorite genre and Saw as favorite horror movie.

Music preferences present other potential opportunity to produce engaging content for this target. In first place there is the trendy but slightly offbeat Hip Hop genre, which is present also in video entertainment through talk and dress style as well as celebrity presence.

The other genres dominating the ranking also reveal interests that are unconventional and offbeat, due to the presence of styles such Punk and Metal.

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Topics: Report; Customer Analysis; Market Analysis