Marketing project toothpaste

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  • 1. Marketing management II Project Toothpaste Industry Group Project Submitted By: Group 1 Reshmi Raveendran
  • 2. Contents Introduction - Industry background Brand 1 details Brand 2 details Brand 3 details Brand 4 details References
  • 3. Introduction In terms of in dental hygiene, India is still a nascent country, with majority of the population still not having access to modern dental care and is still relying on substances like coal ash and neem sticks. Traditional materials like neem and tobacco are popular for cleaning teeth in the rural areas. The oral care industry in India is worth Rs. 5,400 Cr. annually & comprises of: Toothpastes: 60 %: Rs. 3,240 Cr., Tooth powder: 23 %: Rs. 1,242 Cr. and Toothbrushes: 17 %: Rs. 918 Cr. Currently, toothpaste enjoys a country wide penetration level of 55 %, with only 15 % of them brush twice a day. The per capita consumption in India stands at 127gms/year; one of the lowest in the world. Also, India’s per capita consumption is less than half of other emerging markets and almost 1/4th the amount of consumption in U.S. Given the low per capita consumption and penetration rates, toothpaste demand is mainly being driven by the overall market growth of 8-10 %. The penetration levels of dentifrice in the country have been on an upward trend over the last few years driven by strong improvements in toothpaste penetration. The toothpaste segment in India is largely a two player industry, Colgate &Hindustan Unilever (HUL) which account for ~76 % of the entire market. For years, Colgate has dominated the toothpaste market in India with ~ 54.30 % market share. The Company is India's biggest oral care products company with more than 95 % of its sales coming from this product category. Opportunities for Toothpaste Industry in India in oral care market offers huge potential as penetration and per capita consumption of oral care products is very low. However, rising per capita income and increasing awareness is driving demand of oral care products. Consumers have started switching to value-added toothpastes like sensitive toothpastes, gels, mouth washes, and teeth whitening products. In rural areas, consumers are switching from toothpowders to toothpastes.
  • 4. Project Roadmap For this project, we have picked these two organizations and will study the various aspects of their marketing. Colgate Sensitive Pro Relief Colgate-Palmolive Colgate Maxfresh Toothpaste Industry Pepsodent Pro Sensitive HUL Closeup Under the toothpaste industry, we have analysed two sub industries : a. Sensitive Toothpaste (Colgate Sensitive pro relief Vs Pepsodent Pro Sensitive b. Gel Toothpaste
  • 5. Brand 1 - Colgate Sensitive Pro-Relief (Sensitive Toothpaste Industry) 1. Business Definition (Colgate –Palmolive) Colgate –Palmolive is a top global maker and marketer of toothpaste and soap and cleaning products. Colgate is an oral hygiene product line of toothpastes, toothbrushes, mouthwashes and dental floss. 1. Company Mission To provide Colgate with a significant competitive advantage by reducing total delivered cost, extending technology resources and developing excellence in purchasing, logistics and sourcing processes. 2. Defining the Market:Sensitivity Toothpaste Industry (Premium, Niche segment) o Segment – Sensitive Toothpaste Market o Target - People with teeth sensitivity issues, mostly Urban middle class Men and Women o Competitors – Sensodyne, Pepsodent o USP - The first and only toothpaste clinically proven to provide instant and effective long lasting relief from Sensitivity Rising awareness among consumers has made the sensitive toothpaste category a highly attractive segment to operate in. The sensitive toothpaste segment has been growing at a very high rate (over a low base) and is likely to be a significantly large category of the total toothpaste market in the next three to five years. According to industry estimates, the total toothpaste market size in value terms is Rs. 5,784 crore and growing at about 17%. Of this, the relatively newer sensitive toothpaste category accounts about 9% at Rs. 517 crore, and is growing at 32%. This is possibly the fastest a segment has opened up in this category. In this case, advertising has definitely created an impact with consumers. 3. Competitive Set
  • 6. - - Available with chemists and hypermarkets. Colgate has edge over its competitors in terms of its distribution network of around 45 lakh stores all over India. Colgate’s overall supremacy in the Colgate market, serious image of the brand has helped it built committed customers Brand awareness of Colgate is high but still has not been able to capture Sensitive Toothpastes market as much as Sensodyne has done through its testimonial commercials. 4. Roles Colgate Sensitive – Follower Sensodyne – Leader Pepsodent Sensitive – Challenger 5. Profile of Consumers of Colgate Sensitive Pro relief All people with teeth sensitivity issues. Demography - Health Conscious customers (Oral care) Urban middle class Men and Women Young Adults (married/single no children) Young Families (children upto 12 yrs) Older Families (children above 12 yrs) Older Adults (empty nesters) Senior citizens 18-29 yrs 25-45 yrs 40-55 yrs 50+ yrs 60 yrs + 6. Positioning – Toothpaste providing instant relief. Clinically proven and approved by Indan Dental Association (whereas Sensodyne has positioned itself as 24/7 sensitivity protection & worlds no.1 toothpaste recommended by dentists worldwide) Colgate Sensitive toothpaste soothes the nerve ends and builds a protective shield providing both relief from sudden shocks of pain and long term sensitivity protection with regular use. They are capturing the Indian market by educating/creating awareness that teeth sensitivity is not a disease, every 3 out of 5 person in India suffers from teeth sensitivity and it can be cure by brushing twice a day using Colgate. Colgate Sensitive Pro relief Vs Market Leader (Sensodyne) - Single flavor available in 40 gm & 80 gm pack - 40 gm – Rs 70 (Sensodyne 40 gm - Rs 42)
  • 7. - 80 gm – Rs 120 (Sensodyne 80 gm – Rs 75) Premium pricing (whereas Sensodyne has penetrative pricing) 7. What Brands should do to improve positioning - Sensodyne has taken over the market through its testimonial TV commercials. Colgate should bring confidence among people through its strategy like “Clinically proven” Packaging also plays a vital role. They have to do rigorous TV Ads to maintain their position and highlight certain formula in their toothpaste which no other toothpaste has. Colgate has to review its pricing strategy as Sensodyne is delivering the same value at a lesser cost and since a product like toothpaste has low involvement by consumers; they switch to other products very easily if they are getting the value at a lesser price. Brand Ambassador like Deepika Padukone as she has one of the best smiles in Bollywood, to promote the brand just like Madhuri Dixit is promoting Oral B. Different flavours/colours definitely attracts the consumers in toothpaste category Brand 2 - Colgate Max Fresh Gel (Gel Toothpastes Industry Colgate-Palmolive is the overall market leader in the Rs 3,000 crore Indian toothpaste market. But the crown has eluded Colgate in the fastest growing segment of the toothpaste market — the Rs 900 crore gel segment — where Hindustan Unilever’s Close Up has widened its lead with a 60 per cent share. To break into Close Up’s stronghold, Colgate’s Max Fresh gel has also been trying to don a young image. But breaking into the youth space will not be an easy feat for Colgate’s Max Fresh. The first-mover advantage has helped Close Up secure an edge. “Colgate gel’s biggest handicap it its mother brand equity of a serious health brand, that makes it less appealing to younger consumers,” points out PraneshMisra, chairman and managing director, Brandscapes Worldwide. Menon of Kotak Institutional Equities agrees. “The family and health connotation associated with Colgate as the umbrella brand are so strong that it has not been able to make a significant dent in the gel space. It would have been wiser if the company had created a separate brand called Max Fresh, rather than using the parent Colgate brand,” he opines.
  • 8. “The younger generation is slowly graduating towards having their own variant or flavour of toothpaste. In India, the trigger for most toothpaste purchase is still the homemaker and a common toothpaste is used by the family, Thus, we want to project ourselves as a youngat-heart brand, which appeals to the family. Colgate Max Fresh Gel Colgate MaxFresh gel is infused with cooling crystals (in strips), which dissolve completely as you brush for a whole new dimension of freshness - freshness . Fights Cavities. Whiter Teeth. Freshens Breaths. The whitening formula of the Colgate Max Fresh 150 gm toothpaste acts on the persistent yellowing coat over the teeth and gets rid of it in a matter of days Variants: Peppermint Ice, Icy Blast Mint and Citrus Blast Colgate Maxfresh Peppermint Ice has cooling crystals that dissolve in your mouth setting off an icy wave of minty coolness. Colgate Maxfresh Icy Blast Mint has strips of cooling crystals which dissolve in your mouth and give an explosion of Icy freshness Colgate Maxfresh Citrus Blast has strips of cooling crystals that dissolve in your mouth to give a burst of freshness.
  • 9. Business Definition (Colgate –Palmolive) Colgate –Palmolive is a top global maker and marketer of toothpaste and soap and cleaning products. Colgate is an oral hygiene product line of toothpastes, toothbrushes, mouthwashes and dental floss. Company Mission To provide Colgate with a significant competitive advantage by reducing total delivered cost, extending technology resources and developing excellence in purchasing, logistics and sourcing processes. Defining the Market: - Colgate Maxfresh – premium costing Segment – Gel Toothpaste Market - Target - Young people. The target market being “Multi Brand Households” where young does not use what their parents. Competitors – Closeup, Pepsodent USP –It is the first and only toothpaste infused with Colgate-Palmolive, the leader in oral care, is redefining the gel segment of toothpaste in India with the introduction of new Colgate Maxfresh Gel Competitive Set - Available with chemists and hypermarkets. Colgate has edge over its competitors in terms of its didtribution network of around 45 lakh stores all over India. Roles Colgate Maxfresh – Follower Close-up – Leader Profile of Consumers of Colgate Max Fresh Young Adults (married/single no children) Young Families (children upto 12 yrs) 18-29 yrs 25-45 rs
  • 10. Positioning The only toothpaste with cooling crystals that adds a new dimension to freshness. Fights Cavities, Whiter Teeth, Freshens Breaths. They have 3 different flavours and a very attractive packaging to attract the youth. Peppermint Ice, Icy Blast Mint and Citrus Blast What Brands should do to improve positioning They should telecast very youth centric Ads on newspaper/TV. Brand 3 – Pepsodent Sensitive “You'll wonder where the yellow went / when you brush your teeth with Pepsodent!” Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral Care solutions in India. Pepsodent is still sold as a Unilever property in all markets except the United States and Canada. Pepsodent as a toothpaste aimed at providing the oral health benefit. Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth, fresh breath and healthy gums.Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth. • • • KEY FACTS Endorsed by FDI ( the largest dental association globally) Among the most trusted brands in India (Brand Equity, Economic Times, India) Also sold as Mentadent, Zhonghua, PS and Signal in other countries Mission Statement:-
  • 11. Pepsodent is developed by Unilever's oral care experts, bringing families around the world a range of scientifically advanced toothpastes to keep tooth decay at bay. Pepsodent sensitive Pro Sensitive Positioning For instant relief from sensitivity pain and repair for lasting protection Pepsodent Expert Protection Sensitive is a unique toothpaste with proven efficacy to not only provide relief from tooth sensitivity but also improve gum health in the long term. Why use Pepsodent Expert Pro-Sensitive? We at Peposodent worked with Dentists to create Pepsodent Expert Protection Prosensitive. It contains HAP mineral – the same material your teeth are made of - to not only give you relief from the pain, but also to repair your tooth so the problem does not get worse. This advanced technology is also to strengthen and protect gums, thus reducing the risk for future sensitivity. Pepsodent Expert Protection Pro-Sensitive gives you back the chance to experience the pleasures of eating and drinking your favorite things. How does Pepsodent Expert Pro-Sensitive work? Pepsodent Pro-Sensitive is the only toothpaste in India with a combination of Hydroxyapatite, Zinc Citrate and Potassium Citrate, clinically proven to provide rapid relief and give prolonged protection from dentine hypersensitivity.
  • 12. Placing of Brands:Pepsodent:• Is a 19 year old brand that offers various oral care solutions to specific need based solutions. Also, as per the facebook advertisement Ad Campaigns to Supplement this Positioning:- Lasting Protection for Hours. Germ Fighting Campaign Dental Insurance DishumDishum Bhoot Campaign Pepsodent has posted its print advertisement on its facebook page, which has over one million fans. The ad shows two kids brushing their teeth with Colgate and Pepsodent, with both packs clearly visible. When the children take a cavity test, the voiceover says that Pepsodent Germicheck is ‘130% behtar’, or superior to Colgate, when it comes to germ attack. Pepsodent Pro Sensitive Ad Sources: http://www.youtube.com/watch?v=LUNDx3fEWGI
  • 13. The Ad highlights, Other toothpastes only remove stains but Main Cause of sensitivity is enamel erosion and weekend gums Pepsodent Pro sensitive has HAP formula not only repairs enamel but protects gums and relieves from pain. Developed by dentists who care Competitive Edge:• Price – The main competitive advantage which Pepsodent sensitive has is the price. For 80 gms the price is Rs 80 as compared to Sensodyne which is for Rs 120. • Under the Brand of HUL – One of the competitve advantage is that they are under one of the most trusted company in India which give them an advantage over Sensodyne. • Strong Distrubution Network – HUL has used the same distrubutuion network which they used for other FMCG products and for personal care products which would again give an advanateg to Pepsodent. • Brand Ambassador – The brand ambassador associate with Pepsodent is Shahrukh Khan one of the most influenced film personality which can easily attract kids and there parents (Target Audience) Marget Segmentation:Geographic Segmentation – • The Urban market for toothpaste is almost stagnant. • Due to deeper penetration in rural market HUL introduced smaller packages of 100gms priced for Rs 10. Behavioral Segmentation – • Pepsodent has lots of variants in different segment for example Sensitive, Gem Check, Whiting etc. This gives customer lots of choices. • Pepsodent gives a complete care whether it is for oral or germi check. Pepsodent Sensitive Pro Relief Mainly targets:-
  • 14. • • • Though it affects people of all ages, those between the ages of 20 and 50 report dental hypersensitivity very frequently, especially between the ages of 20 to 30 It is reported more frequently in women than men Frequency of dental hypersensitivity is very high in patients suffering from gum problems Issues: » The role of product differentiation in making a consumer try out a new product » How competitive advantages get eroded quickly in a marketplace » The need to align oral care awareness programs with promotional campaigns for developing the market for oral care Brand 4 (Close Up) Business Definition (Close up HUL) India’s 1st gel toothpaste Market leader in gel toothpaste category for over 3 decades Some of the best known celebrities have been part of Close-up ads over the years Close Up –World No.1 producer for Gel Tooth Paste Close up has line toothpastesand mouthwashes all their lines are made to function as the ‘fresh breath maker’, promising consumers long-lasting fresh breath Company Vision Close Up envisions itself as the number one toothpaste brand for the youth. Their goal is to get young adults to feel how much the brand can help them achieve fresh breath, which, in turn, can boost their confidence to face their everyday challenges. Close Up’s goal is to be the youth’s first choice when it comes to toothpaste brands. • Defining the Market: Gel toothpaste Industry (Fresh Breath Category) • Segment – Fresh, Gel and Mouthwash Target - People with Young and outgoing nature, Self actualization confident and mostly urban middle class Men and Women this is the focussed on the demographic of youth aged between 15-35, young energetic workforce and active.
  • 15. The brand has always been unique and fun, encouraging people to open up by getting over their self doubt. It is aimed at every person who is young at heart. Its marketing strategy involves पास आओ the literal Hindi translation for Close up. • USP - For years, Closeup has been synonymous with fresh breath confidence that we require during our social interactions • Competitive Set All Brands using Gel in their toothpaste Mouthwash Teeth whitening toothpaste • Roles Close up – Market Leader Pepsodent Centre Fresh – Market Follower Colgate Maxfresh – Market Challenger Best Ad Campaign for Close Up One of the earliest campaigns of Close up was “KyaAap Close UpKarteHai…” The advertisement showed a Mr. Bean kind of looking guy brushing with Close up manages to woo a beautiful girl who does not get impressed by a handsome looking guy giving her a flying kiss. She rather gets impressed from a flying kiss from the ordinary looking Mr. Bean due to his fresh breathe released while giving her the flying kiss. Analysis - Freshness is associated with the ad - The product is clearly identified with the brand image of Close up which is confidence. - The jingle is the USP of the advertisement. The funny voice and the way the singer modulates the voice is attractive. - Lyrics of the background score are really catchy. - Mr. Bean is the main face of the ad - The ad was very popular as my six year old niece never used to get tired singing the song every time she saw the ad on the television.
  • 16. References: http://articles.economictimes.indiatimes.com/2013-02-15/news/37119591_1_oral-carecibaca-consumer-awareness) http://www.business-standard.com/article/management/close-up-smile-gets-wider111072700034_1.html