MarkGuru, IIM Bangalore, Vista 2012


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MarkGuru, IIM Bangalore, Vista 2012

  1. 1. TEAM ID: 120 IIM KOZHIKODE Anshul Kumar Ph: 8086087963 MarkGuru, IIM Bangalore, Vista 2012 Niyant Rajapurkar Ph: 9539908222 Case Study Team Lead
  2. 2. Establish Himalaya as a science-based, problem-solving, head-to-heel brand, harnessed from nature's wealth and characterized by trust and healthy lives. Develop markets worldwide with an in-depth and long-term approach, maintaining at each step the highest ethical standards. Himalaya Herbal Healthcare Company Mission The new product segment needs to be aligned with company’s overall strategy and mission  Himalaya Herbal Healthcare wants to extend its herbal health care offering into one of Sensitive, Whitening and Gel toothpaste segments in India  Given resource constraints, Himalaya can only target one of the above three toothpaste categories  The major objective is identifying the most lucrative of the three categories and doing a need-gap analysis which Brand Himalaya can fill in future  The Product category not only needs to be sustainable but drive Himalaya on a future road map of being a leader in the toothpaste industry OBJECTIVE
  3. 3. Himalaya’s Strength 1. Himalaya enjoys a strong equity in the Herbal Healthcare space; its products are known for research, safety and efficacy and widely prescribed by doctors 2. The brand has already generated substantial awareness in the oral care market on the strength of its tooth-paste “Himalaya Dental Cream”, one of the fastest growing products in its consumer care portfolio 3. There is no other herbal player in the prescription oral care segment which is growing rapidly 1. Pick a segment where they may use the base of its research to position itself as a trustworthy brand in the herbal oral healthcare 2. Use doctors and dentists already associated with Himalaya as a promotional tool in establishing the new product segment 3. Use the strong base already established by “Himalaya Dental Cream” as a starting point/base to draft marketing strategy for the new product category ORAL HYGIENE AND HEALTHCARE Space for leveraging •Cavities •Plague and Tartar •Gum Disease •Oral Infections and Disorders •Sensitivity •Bad Breath •Dry Mouth Major Oral Issues •Whitening •Fluoride Therapy •Orthodontics •Fillings •Crowns/Bridges •Root Canal Treatment •Dental Implants •Dentures Oral Treatments Majority of people want instant relief and going to a dentist isn’t on people’s willingness list; hence the space for herbal oral products *only 55% of the Indian population uses toothpaste and less than 15 percent of the Indian toothpaste users brush twice a day, only indicating that the market here remains largely untapped. *Data Source:
  4. 4. PRIMARY RESEARCH: CONSUMER SURVEY/ EXPERT OPINION CONDUCTED ON ORAL ISSUES We conducted a very small consumer survey on 6 parameters for a typical toothpaste and tried to map the preferences that people have when it comes to having a toothpaste. Demographics of the survey Total Respondents: 81 Male: 61% Females: 39% Age Group: Majorly 20-40 Annual Income: Approx > Rs 6,00,000 Attribute Preferred Number of Respondents Percentage Healthy tooth and gums 24 30 Long lasting freshness 8 10 Prevention of tooth decay 16 20 Whiteness 12 15 Use of natural herbs 15 18 Good Foam 6 7 Use of natural herbs with anti- teeth sensitivity ingredients as a combo preferred by most members of the group Major Consumer Survey Insights •People prefer short term/instant solution for issues like teeth sensitivity- role of an OTC product like toothpaste has a very high scope of playing an important role •Health of their tooth and gums is the most important issue for them, and they would prefer a herbal product over a non herbal one because of the security associated with it- non- sensitive came out to be highly important to them Expert Opinion Our conversation with dentists with regard to place for a herbal toothpaste in the market Dr Anu Virmani, Dr Virmani’s Dental Centre, New Delhi “Most patients that we have are of Whitening/tooth bleaching as compared to teeth sensitivity. Whitening is a cycle for which the patients need to consult us again. Patients often ask us if there are any OTC products available in the market that can offer them instant relief from sensitivity ” Dr Sanjay Nandwani, Dr Nandwani Dental Clinic, New Delhi “Leave aside being a dentist, even from a marketer’s point of view I would see sensitive toothpaste market to be much bigger than any other segment. Sensitivity is a short term experience that people tend to forget over time while yellow stained teeth always stay with them. So discolored teeth make them want us while patients would want a dependable OTC product to be their sensitive teeth doctor available with them always for a short term solution” I BANK UPON MY DENTIST, DO YOU?
  5. 5. What is teeth sensitivity? •‘Sensitive teeth’ is a condition where one feels a sharp, short pain in the tooth while eating or drinking anything hot, cold or sweet. •According to a GSK study in 2011, most consumers are unaware of this as a problem May 2011 survey conducted by Nielsen states 40% of the respondents claimed to suffer from tooth sensitivity The incidence of sensitivity increases from 33% (age 18- 25) to 54% (age 51-55) 31% of respondents suffering from tooth sensitivity think it is just a ‘toothache’ Just 11% of the total respondents use toothpastes providing sensitivity relief- very low penetration by the toothpastes here SENSITIVE TEETH TOOTHPASTE SEGMENT Industry Scenario • The incidence of sensitivity in India is currently estimated at 17 per cent, as against 25 per cent globally. And, only 4% of all sensitivity sufferers visit a dentist.- Opportunity for Himalaya here to position itself as a “dentist 24x7” • Industry experts say the sensitive toothpaste segment will grow to 12-15 per cent of the total toothpaste market in the next three to five years. For comparative analysis of this segment, refer to Appendix 67.19 84 115.62 0 20 40 60 80 100 120 140 2011 2012 2013 2014 Growth Rate(%) of Sensitive toothpaste market in India Growth Rate(%) 30386 34943.9 40185.485 46213.30775 1045 1747.19 3214.83 6931.9 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 2011 2012 2013 2014 Sensitive toothpaste market in India Toothpaste market ( in crs.) Sensitive toothpaste market (in crs.) *Data Source: GlaxoSmithKline (GSK), January 2011 *Data Source: GlaxoSmithKline (GSK), January 2011 This segment provides a huge growth opportunity both in terms of growth rate, sustainability and Himalaya’s current positioning as trustworthy herbal brand –with doctors and dentists support that Himalaya has- mass launch of a product from this segment will have more appeal ; in line with prescription sensitive toothpaste HiOra that Himalaya already has
  6. 6. Study Conducted by Pepsodent on teeth sensitivity •Although tooth sensitivity increases as you get older, it can affect people of all ages •It more frequently affects women •It is a common side-effect of tooth bleaching procedures •People suffering from gum problems almost always have sensitive teeth •Up to one in three adults suffer from dental hypersensitivity •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 •Frequency of dental hypersensitivity is very high in patients suffering from gum problems Himalaya can pitch in across all age categories and target it specially towards working women to provide them an all round protection throughout the day as they don’t have much time to give to their oral care needs . This strategy has not been majorly employed by any of the major rivals. •Going to the dentist tends not to feature highly on people's lists of favourite activities •People are aware of tooth sensitivity but there is lack of knowledge about any genuine solution. Since the awareness about remedy for this condition is low, most consumers avoid consuming foods that causes this pain. The fear of going to dentist and possibility of painful interventions often prompt individuals to manage the situation rather than taking remedial action •Consumers prefer not to take additional medicines for improving the sensitivity of teeth •Consumers prefer instant and long lasting relief from sensitivity. •Dentists advice use of specific toothpastes to help bring down the pain caused by the condition of sensitivity Consumer Insights on Teeth Sensitivity Become people’s dentist 24x7 in providing them oral healthcare- both prevention and solution to teeth sensitivity without the need of visiting and consulting a doctor- position Himalaya sensitive toothpaste as a genuine solution to their sensitive teethes Space for Himalaya to pitch in Space for Himalaya to pitch in Our conclusions on Sensitive Toothpaste segment •The market for sensitive category is very nascent without any single brand dominating the market . The market is highly fragmented among Colgate, Sensodyne,Pepsodent. Colgate being the first mover has largest presence in the category. •Points of difference (POD) among the brands is very low. Thus brand loyalty for sensitive toothpaste is very low as consumers are not able to value the product •All the brands have adopted pull marketing strategy to attract the customers. The product offering, promotions employed by the competitions are more or less the same •All the brands have targeted Urban middle aged class with premium category. The products have been priced similarly. “Herbal” category is majorly absent in sensitive toothpaste segment currently in Indian market Space for Himalaya to pitch in Sensitivity is an oral issue and Himalaya can pitch in as a herbal aid to prevent the issue now rather than prevent the issue later by medication- scope of pull strategy to drive sales here- Himalaya the best brand to do so due to dentist backing, widespread name for quality research and a herbal product free of harmful ingredients in the toothpaste*For full competitor comparison in this segment, refer to Appendix given later
  7. 7. WHITENING TEETH TOOTHPASTE SEGMENT What the market says •Whitening is not an entry level product. It is a brand penetration rather than brand awareness product •Analysing the current market, there are lot of variants in same brands. This shows whitening as exclusive product is perceived as less valuable. •There are overlaps in the target segment in whitening segment. For eg. This segment can be targeted at youth as well as middle aged people. •Drinking dark-coloured liquids such as coffee, cola, tea and red wine •Foods that normally change colour when exposed to air such as cherries, pomegranates and blueberries •Unhealthy habits like smoking or chewing tobacco can also stain the •Teeth •Poor dental hygiene, which is represented by inadequate flossing and brushing, is another cause for teeth discoloration •High fluoride content - present in drinking water of some areas and in some oral hygiene products such as mouthwashes - can cause staining of the teeth, producing a mottled appearance Signs of discoloration include yellow, discoloured, stained or dark spotted teeth *Data Source: Colgate, Study by HN Shama Rao, Pralhad S Patki Reasons for yellow stained teeth Whitening is unlikely to cause serious side effects, although some people's teeth may become more sensitive for a short while Consumer Perception on Whitening •Consumers prefer to visit dentist once in 6 months for whitening their teeth •Indian consumers value whitening as added benefit of toothpaste rather than toothpaste exclusively focused on whitening. They value healthy teeth and strong gums more than white teeth A recent trend in tooth bleaching has been the development of at-home treatments- toothpaste plays a role here 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 2011 2012 2013 2014 Whitening Toothpaste Market Toothpaste market(in crs.) Whitening Toothpaste market 129.9940762 43.75370246 37.99999985 0 20 40 60 80 100 120 140 2011 2012 2013 2014 Growth rate(%) Growth rate(%) Most people prefer doctor assistance when it comes to whitening than banking upon a toothpaste. As per our conversation with dentists, whitening is a cycle that requires constant dentist intervention and assistance State of Whitening OTC products in India Whitening is still not a developed category in India. Most major brands have been showing negative growth UnattractiveSegment:too underdevelopedinIndia * Data Source: gclmagazine
  8. 8. GEL TOOTHPASTE SEGMENT •Mostly Gel toothpastes offer freshness and help fighting bad breath •They are majorly targeted towards the youth •Vibrancy of brands and youth appeal is of utmost importance to attract the youth •Medicinal and herbal value is of least importance here Industry Scenario Where does Himalaya Stand? •Himalaya offers herbal products that use the natural pigments to offer customers fight sensitive health issues •Here we see, this segment is a bit misaligned with the major offerings that Himalaya already has in the market, since they mostly offer herbal values to the customers and vibrancy and youth appeal is not Himalaya’s forte as of now 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 2011 2012 2013 2014 Gel Toothpaste Market Toothpaste market(in crs.) Gel Market 0 5 10 15 20 25 30 1 2 3 4 Growth rate(%) of Gel category Growth rate(%) •We see that this segment is getting highly saturated •Growth opportunities are getting minimal •This segment does not seem to be aligned with the company’s appeal to customers (more medicinal values than Vibrancy) •Could be a future opportunity after establishing a foothold in other major segments More vibrancy of the brand and youth appeal is the need of the segment. Market is highly saturated with top brands like close up and Pepsodent having major market share. Fight here is not a profit deal for Himalaya Data Source: gclmagazine •Gel category being targeted at youth has very less brand loyalty among consumers. Brand switching is very frequent •The perception of Himalayan drug as herbal and curative brand may not be compatible in Gel category which is considered a “youthful” and “vibrant” category •Negative growth rate for most brands and the average growth is also falling as shown in the graph above
  9. 9. COMPARISON OF THE THREE SEGMENTS AS A GROWTH DRIVER FOR HIMALAYA Segment Parameter Sensitive Whitening Gel Growth Rate Growing overall (stagnation in the past few months) Most Companies growing negatively bringing down the average growth rate High Saturation in the segment. Scope for growth is becoming minimal Alignment with Himalaya Brand Image Perfectly aligned with the herbal natural problem-solution image of Himalaya Aligned with the Himalaya image Not aligned- This segment is more about vibrancy of youth while Himalaya is more about a mature problem solution brand Requirement of customer- doctor interaction Customers prefer not to visit doctors for sensitivity and want an instant solution to cure their pain from sensitivity- huge for herbal OTC product Need to visit a doctor is imperative and cyclic in nature bringing down the role of an OTC product Rare chances of interaction in this segment Penetration Mostly 11% penetration in India. Huge opportunity to grow Underdeveloped market in India. Huge risk to dive in 23% share in volumes and a totally saturated market Competition No major competition in herbal toothpaste category Low competition in herbal toothpaste category Huge competition with major players like close up and Pepsodent Loyalty Trustworthy brands have high loyalty Trustworthy brands have high loyalty Very Low Loyalty as loyalty is generally considered low with the youth
  10. 10. REASONS TO PICK SENSITIVE TOOTHPASTE SEGMENT: CLOSE FIGHT WITH WHITENING SEGMENT Growth Rate •Only segment out of the three to show a constant positive growth rate over the years •Reasons of stagnation include harmful ingredients used by some of the non-herbal category players and negative marketing of major brands henceforth leading to a dip in sales for major companies Perfectly aligned with Himalaya Brand Image Only segment out of the three which is perfectly aligned with the “herbal, safe and a doctor’s solution” brand image of Himalaya Doctors/Dentists Support Himalaya enjoys a huge support from major doctors and dentists across India, who can play a major role not just in terms of prescribing Himalaya sensitive toothpaste but also acting as a marketing tool to drive retail sales More scope for OTC sales over whitening segment As already shown on the basis of our research and expert interaction, whitening is a cyclic process which requires doctor intervention at repeated stages, people bank more on dentist methods for tooth bleaching than trying a toothpaste or any OTC product In case of sensitivity segment, customers want instant solution to their pain caused by sensitivity and are more reluctant to visit doctors , though most Our research also found out that most times the process of whitening also leads to sensitive teeth. Doctors are best medium to suggest sensitive toothpaste at that stage to the patients and Himalaya enjoys healthy dentist and doctors’ support Least Penetrated Segment Unlike the underdeveloped whitening segment in India, Sensitive toothpaste segment is penetrated but only 11% till early 2011. This gives a huge opportunity to Himalaya to come in the picture where the market is also not underdeveloped. Dentists play a major role in prescribing an OTC sensitive product, sensitive segment enjoys a good percentage of sales taking place through them Mass launching a product would need modern stores and grocery back up and sensitive segment enjoys a major contribution of sales through it No major herbal players in the segment A segment which plays on less differentiation, herbal player has a chance to leverage on its “herbal” appeal where the customers attach security and more trust with the brand
  11. 11. RISING CONSUMER AWARENESS ABOUT HARMFUL NON HERBAL TOOTHPASTE INGREDIENTS Rising positive awareness about herbal products Almost the right time for Himalaya to pitch in with herbal toothpaste for OTC sales
  12. 12. ROADMAP FOR HIMALAYA AS SUGGESTED BY US Launch the herbal sensitive toothpaste category and establish trust in customers as well as retails- already established brand image will also help Look for more consolidation. With the already developed trust in elders in the family with the sensitive brand, Himalaya can further look to consolidate with other categories like whitening After winning over major age groups, Himalaya can now look to launch its gel segment as most elders in the family by this time would suggest Himalaya brand to their younger ones Pitch the Himalaya Herbal toothpaste as a “dentist 24x7”. Target it specially to working women providing them all round protection throughout the day After winning over the sensitive category and establishing a trust, pitch Himalaya as a total solution toward all issues associated with teeth with a whitening toothpaste Sensitive and Whitening segments will make Himalaya a visible brand with the elders. Youth would the next to target at this stage making Himalaya an all segment player Positioning of Himalaya at different stages of the roadmap Whitening toothpaste Stage 1: Sensitive toothpaste Gel- providing freshness Stage 2: Whitening toothpaste Stage 3: Gel toothpaste
  13. 13. APPENDIX  Competitor Analysis- Sensitive toothpaste segment  Need-Benefit Analysis at all the three stages suggested  Features, weight and pricing of various toothpaste brands  Brand Communication: Print Ads
  15. 15. NEED- BENEFIT ANALYSIS AT ALL THE THREE STAGES Brand Feature Weight Price (Rs) Oral B Specially for children 100gm 55* Colgate Total Paste 100gm 35 Gel Gel 100gm 24.50 Ultra whitenin g Paste 150gm 39 Sensatio n whitenin g Paste 150gm 39 Calcigua rd Paste 100gm 24.50 Pepsode nt Germich eck Paste 200gm 49.90 2 in 1 Paste+ gel 150gm 45.10 Aquafre sh Paste + gel 100gm 25 Close up Gel 100gm 33 Need •Consumers require long lasting and instant relief for sensitive teeth. There is lack of trust among the people for existing brands in this segment •They don’t visit dentist for sensitive teeth and prefer to avoid the problem •They must trust the product and its ingredients completely •Currently in the market, there is space for herbal product as major brands do not offer herbal product. Consumers trust herbal products with natural ingredients •Himalaya Drugs needs to leverage its competency in herbal products to satisfy these needs Benefit •Dentist 24x7: Consumers can use herbal toothpaste daily and can not only get rid of the sensitivity problem but avoid visiting dentists •Ayurveda products don’t have any side effects and also provide long lasting solutions for the problem Need •Most Consumers visit dentists for whitening their teeth. Most don’t use toothpastes which can solve their problem. But they can start using toothpaste provided they see value in it. •Young and middle aged people suffer from this problem and look for the product which can provide distinctive benefits to them •Also most of the people suffer from the problem of sensitive teeth after they whiten their teeth. They demand the product which can avoid the problem of sensitive teeth •Thus there will be need for whitening toothpaste which is 100% safe and doesn’t cause sensitive teeth Benefit •Himalaya toothpaste being a herbal product can satisfy the needs of consumers without causing the problem of sensitive teeth •Herbal products with Ayurveda contents can treat the root cause of the problem giving confidence to the consumers Need •Himalaya needs to cater the benefits of herbal products in the youth segment too at stage 3 •Today the importance of herbal products among youth is increasing and they demand the toothpaste which can provide them overall refreshing experience with herbal products •Consumers of gel toothpaste need various ingredients such as mint, lemon etc. All these contents can be provided through herbal product. Benefit •Himalaya will become visible brand across all the age groups with this launch. •With herbal contents in gel toothpaste, consumers will not only get refreshing breath but also make their teeth healthy. •Thus with the launch of Gel toothpaste Himalaya can fill the gaps existing in current market through its brand image of herbal products. Different variants of major brands Stage 1: Sensitive toothpaste Stage 2: Whitening toothpaste Stage 3: Gel toothpaste
  17. 17. A HERBAL THANK YOU !