Hindustan Lever Ltd. IS NOW Hindustan Unilever Ltd.
INTRODUCTIONIndias largest Fast Moving Consumer Goods company with 80 factories across India. Hindustan Unilever Limited ‘HUL’, formerly Hindustan Lever Limited (renamed in late June 2007 as HUL) The Anglo-Dutch company Unilever owns
The mission – “add vitality to life.Sales growth in 2011-12 is 17%Pepsodent and Close Up together accounted for 22% share in 2011-12Annual turnover - Rs.22,116 croresShare price Rs 459.20
Product Mix• HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India.
Personal Care Brands FoodNutrition Brands Home Care Brands
Lux, lifebuoy, Dove Personal wash Pears, Rexona, Breeze, Surf excel Laundry Wheel Sunlight Fair & lovely Skin care Ponds Vaseline Sunsilk Hair care ClinicHindustan Unilever ltd Pepsodent Oral care Closeup Axe Deodorants Rexona Color cosmetics Lakme Ayurvedic Ayush
• Pepsodent has established itself as a strong, reliable brand commanding the second place in terms of market share next to Colgate from Colgate-Palmolive Ltd.• The product line of Pepsodent is wide spread right from lower end to the higher end addressing the basic needs of decay protection & advanced whitening to specific medical needs with Pepsodent G gum care and Pepsodent Sensitive.• The customer expectations of the toothpaste market are good taste, fresh breath, clean teeth, more foam and proper cleaning.• Endorsed by FDI ( the largest dental association globally)• Among the most trusted brands in India (Brand Equity, Economic Times, India)
SEGMENTATION • Rural AreasGeographic • Urban Areas • Normal UseBehavioural • Whitening • Complete Care • Pepsodent GDemographic • Pepsodent Kids • Pepsodent Milk Teeth Strawberry
Geographic Segmentation • The urban market for toothpaste is almost stagnant. • Hence for deeper penetration in the rural markets they have taken the following measures Smaller 100gms packs priced at 10 rupees Tooth campaigns at various schools in villages.
Behavioural Segmentation• Variants to suit different consumer preferences• G for Gum Care• Germicheck for Cavities• Whitening for White teeth
Age• Pepsodent Kids 1. Barbie (pink color) 2. Superman (Blue color) 3. Tom & Jerry (Orange color)
• Most of Pepsodents products are sold in the urban areas.• The sales from the Urban areas constitutes approximately 80% of their income.• Pepsodent spread awareness of the benefits of oral hygiene. This awareness would therefore help increase its sales, in the rural areas
TARGET MARKET SELECTION• Pepsodent is currently into Selective Specialization• Pepsodent Kids for kids• Smaller and cheaper variants for rural markets• Pepsodent complete for the educated urban consumer
• This type of Targeting means targeting different markets with different prducts.
Pepsodent positioning:• Pepsodent was launched in 1993 by HUL to capture the market from Colgate.• It was launched in the platform of Germ fighting property.• Pepsodent have experimented with its positioning althrough its life.• Ad Campaigns to supplement this positioning: Lasting Protection for hours Germ Fighting Campaign Dental Insurance Dishum Dishum Bhoot Campaign
Inclusion of a germ indicator with a pack ofpepsodent. HLL struck back with the famous Dishum dishumcampaign The insight for this campaign was thatMothers were really worried about the eatinghabits of their kids.From that insight came the Big Idea " let Pepsodentfight germs for You". The campaign and the smartpricing virtually killed the regional brands in the oralcare market.
Pepsodent knew that they should expand the total market of toothpaste and hence decided to increase market by increasing the usage of the product. Thus they came up with the bhoot campaign. Pepsodent aims to teach the kids to brush at night, (with pepsodent of course).Research shows that brushing teeth at night can reduce chances of tooth decay by 30%. And because of this campaign 12 lakhs kids are brushing teeth at night now and mothers are happy.
What is it made up of?• Pepsodent was well-known for its minty flavor derived from sassafras, and was claimed to contain the key ingredients:• Irium is actually sodium lauryl sulphate, a type of surfactant (detergent) that is commonly found in toothpastes nowadays. Lauryl sulphates help to clean teeth and provide foam that helps to carry away debris. It also has antibacterial properties and can penetrate and dissolve plaque.• The other ingredient, “I.M.P” was purpoted to whiten teeth. What its letters individually stand for remains unknown.
Packaging• The pepsodent pastes are carefully filled into plastic tubes which have a rotating cap.• These tubes are then placed into a cardboard shaped boxes which are closed on both ends.
TYPE PEPSODENT COMPETITORSVanilla variants – Pepsodent Germi-Check – Colgate Dental Cream– Rs. 62 for 200g. Rs. 65 for 200gGel variants- Pepsodent Center Fresh – Colgate Max Fresh – Rs. 65 for 150g Rs. 64 for 150g Close-Up – Rs. 62-67 (depending on flavour) for 150gWhitening variants – Pepsodent Whitening- Colgate Max White- Rs. 65 for 150g Rs. 65 for 150gGum care variants- Pepsodent G- Colgate Sensitive- Rs. 37 for 80g Rs. 80 for 80g Pepsodent Sensitive- Sensodyne- Rs. 80 for 80g Rs. 80 for 80g Colgate Sensitive Pro-relief- Rs. 120 for 80g
• Colgate also has 4 other variants – Salt, Herbal, Total and Cibaca Family Protection. Pepsodent has no equivalents (Pepsodent Complete has been discontinued).• Pepsodent has the ‘2 in 1’ variant for which Colgate doesn’t have an equivalent.• Some of the variants mentioned above have sub- variants which have a price variation of 1-2 Rs.
• Overall, Pepsodent is priced at the same level as Colgate, however, they have different selling points.• Pepsodent has the ‘Offers protection against germs’ angle while Colgate has the ‘Makes teeth stronger’ angle.• Toothbrushes from Pepsodent as well as Colgate are priced Rs.30-40. Oral-B, the main competitor in this field, has toothbrushes ranging from Rs.25 to over Rs.50 due to greater product variety.
• Along with an offer of free dental check-ups, HUL is also planning to organise health camps involving villagers to fortify its campaign.• “To promote Pepsodent, we will also offer free samples to the villagers to try out the product and offer discount coupons on wrapper redemption schemes,”
• Brand AmbassadorIn May,2010, Pepsodent had roped in Shah Rukh Khan to be their Brand Ambassador.SRK had been roped in for pepsodents latest campaign ‘Pappu & Papa’
• Free Gifts Pepsodent had agreed to sell its Products with a toy along with the purchase of the product. With phrases like “Collect Them All!”, the customers would want to buy more products in order to collect all the gifts.
• Discounts During their promotional offers, Pepsodent sells its products at a discounted price. Else they offer products with offers. E.g Buy 1 get 1 free or 150g + 150g = Rs 40 and not Rs 50
PEPSODENT KIDS• Children are influencing around 41% of the total purchases in the total consumer market and children are permitted to make decisions in 65% of the total purchases in the toothpaste purchases.• In this case ideally, a product for the children, launched properly should be a runaway success. Realizing this, Pepsodent introduced Pepsodent Kids and Pepsodent Junior in November 2007.• Pepsodent Kids comes with an attractive squeeze down pack in attractive colors with three variants, namely -1. Barbie (pink color)2. Superman (Blue color)3. Tom & Jerry (Orange color)
• Product Strategy• Retailer observations for product improvement mainly involve two factors:• 1. Size of the Pack• 2. Color Variants• Small sized packs• As against the popular notion of high price of the Pepsodent Kids, the market can be sustained based on the exclusivity of the product for the Kids. Indeed the high pricing of Pepsodent Kids as observed in survey is not real but a perception created by its ‘Pack Size’. Analyzing the competitor Colgate’s Bubble Fruit pricing strategy sheds light on the same as given below.• Product Weight(Gms.) Price(Rs)• Pepsodent Kids 80 45• Colgate’s Bubble Fruit 40 22
CONCLUSION• Even though the demand of pepsodent is more than any of its competitors, its sales are the second best behind Colgate.• In the coming years, Pepsodent is going to increase in the toothpaste market but just gradually every year.• Through its promotional strategies, it can spread its brand name which can help increase sales.
Color Variants• It’s been a proven fact that children are attracted to bright colors more than the dull dark colors. The variants available in the market are Tom & Jerry (Orange Packs), Barbie (Pink Packs) and Superman (Dark Blue Packs). By the sales figures in the retail outlets, it was seen that the children respond positively only to first two variants.Alternatives• Attractive colors can be introduced to keep children pulled in to try the new variants every time.•Special limited editions during festive seasons & holidays can be sold to increase revenue.• New cartoon characters in the current day channels (Cartoon Network etc.) can be added as new variants. By the TRP ratings, children are found to watch Shin Chan show more and form a potentially attractive market for the new variant.
Future Prospects to Increase Its Sales• 1. A kit can be introduced along with a “Kids Stand” to hold only the Pepsodent Kids toothpaste and toothbrush in sockets. The sockets must be made to hold only the Pepsodent products.• 2. The Kids Stand can be introduced in variety of themes matching different characters. The kit can also contain a booklet/ sheet depicting a small story or characters description. The children view these as their toy and also feel proud of owning it.• 3. Children generally use the toothbrush for 3 months but the toothpaste gets over in a month considering 40 gm pack. Hence once the tooth paste gets over, children refill the socket with Pepsodent Kids toothpaste in that place