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Mortein Case Study

2007
Agenda
• Mortein History & Background
• The Pest Control Market
• Competitor Overview
• Consumer Insights
• Key Challenges
• Exploring New avenues of growth - Questions
Brand Background
Mortein (History)
• Manufactured as an insecticidal powder in the 1870’s by J Hageman a German
immigrant to Australia.
• Mortein ‘mort’ (dead one) ‘ein’ (one).
• Hageman used crushed chrysanthemum flowers to produce a pyrethrum extract.
The powder was originally sprinkled about.
• 1920’s a squeeze puffer was developed.
• 1928 Hageman developed a liquid version. He combined this with kerosene and
had a pump pack designed (the traditional flint gun) which allowed the insecticide
to be sprayed into the air or onto the pests themselves.
• Mortein was first advertised in a lengthy infomercial in 1956 and was one of the first
TV ads to be produced and shown.
• Hagemans product was distributed wholesale by Samuel Taylor who ran his own
business until his death in 1995. Soon after that the business went broke.
Mortein (History)
• In 1909 F.S Steer and Thomas Jackson acquired the business. They revived the
Samuel Taylor business and set it up as a proprietary company in 1937 as Samuel
Taylor Pty Ltd.
• By 1953 Mortein was already a household name when the Samuel Taylor company
pioneered the aerosol industry in Australia by introducing the Pressure Pak.
• In 1969 the Samuel Taylor company was bought by Reckitt and Coleman.
• Mortein was developed and made in Australia and is been the leading brand of
household insecticide in Australian homes for more than a century
• Mortein is the #1 Pest Control brand in Australia
• Mortein is the most recognised and most widely used household insecticide in
Australia


Mission:
To help families enjoy the great Australian way of life… free
from annoying and disease carrying pests
Vision:
Be the undisputed leader in providing innovative, smart and safe
solutions to everyday pest problems through the intimate
understanding of Australian families
Mortein Vision & Mission
MORTEIN
73%
Rodent Control
6%
FIK
21%
CIK
41%


Area Repellents
7%


Bombs
8%
Coils
3%
Electrics
5%
Ant 5%
Bombs 7%
Outdoor Surface 14%
Baits 5%
Portfolio Structure Australia
Indoor Surface 10%
FIK
20%
Rodent
5%
Coils 3%
Electrics 4%
73%
Pest Control Category
$123m
$139m
+4.4 %
+15.1%
+2.5
+25.2
-29.7%
-7.3%
Season 03/04
Season 04/05
Season 05/06 Season 06/07
$118m
The pest control category is highly
seasonal
$129m
PIR segment
down -$5M
versus YA
The pest control category is a diverse
& complex portfolio
E
L

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Others
PL
SCJ
RB
F
I
K

I
S
S

O
S
S

D
I
Y

B
o
m
b

B
a
i
t
s

A
n
t

A
R
E
P

M
o
t
h

P
I
R

R
o
d
e
n
t

60.5
52.4
7
3
.
3

73.8
81.4
73.1
50.0
25.2
8
2
.
7

75.0
32.4
22.0
28.7
2
6
.
7

24.2
18.6
26.8
33.6
1
7
.
3

9.6
17.5
14.1
4.3
4.7
50.0
39.2
10.8
67.6
Segment Overview –
Value Split
• Pest Control is a highly segmented market with 48% of the market split between 9 similar
sized segments
• FIK, ISS & PIR are the 3 largest value segments

AC Nielsen Scan Data
Total Pest Value Share & Growth
Homescan Category Penetration
Consumer Overview
75 % of Australian Households
purchase Pest Control products.
Household Penetration
What triggers consumers to
enter the category?
Rid my Home of UNINVITED GUESTS
Resolve ANXIETY caused by pests
Keep my home & family healthy & protected
What do consumers expect from
Pest Control …
TNS Consumer Segmentation
OUTWARD
INWARD
A
F
F
I
L
I
A
T
I
O
N

D
O
M
I
N
A
T
I
O
N

•FREEDOM (23%)
Pests are:
A nuisance BUT a part of nature
Motivated by:
- Low level of anxiety
- Harmony with nature
Product Benefits:
- Safe to use/ not harmful for pets & kids
- Natural ingredients & pleasant fragrance

--> LIVE & LET LIVE
•POWER (15%)
Pests are:
Maddening
A blot on the perfection of their home
Motivated by:
- Feeling of superiority
- House pride
- Hunting, battling & killing
- Power & assertion
Product Benefits:
- Strong, powerful & fast
- Instant kill
--> VICTORY
-SECURITY (37%)
Pests are:
- A threat/ unsafe
- Dirty
Motivated by:
-High level of anxiety about pests &
harmful chemicals
- Creating a safe environment for loved ones
- Need to feel safe, secure & shielded
Product Benefits:
Safe to use/not harmful for pets, kids & environment

--> PROTECTION
-CONTROL (25%)
Pests are:
Intruders
Motivated by:
- Concern over social judgment
- Desire to feel in-control
- High level of anxiety
Product Benefits:
- Powerful, long-lasting action
- Methodical application
- Efficacious prevention

--> EMPOWERMENT
A new approach to growing the Pest Control category
based on consumer need states
TNS Consumer Segmentation
Consumer buying profiles
Light Buyers Medium Buyers
Heavy
Buyers
Heavy buyers: 20 % of HH -> 48 % volume
Medium buyers: 40% of HH -> 37 % volume
Light buyers: 40 % of HH -> 15 % volume
Freedom & Security
Control & Power
ACNielsen homescan
Shopping the Category…
• Low pre-trip planning
• Is a long drawn out process.
• consumers are overwhelmed and need to self-educate themselves


Purchasing decision hierarchy
Pest Type
Format Type
Area Used
Brand
Price
d
e
c
r
e
a
s
i
n
g

i
m
p
o
r
t
a
n
c
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Colmar Brunton ShopperWatch