Odol Case Study Presentation (W6)

1. International Marketing
Case Study: Odol
Tereza Bilkova
Kristyna Konirova
Michael Shen

2. Overview
Overview
Odol – Part of SmithKline Beecham group
Strategy
Market Share in 1997:
Brand
40
30
Product
20
Promotion
30.4%
10
Product Extension
Conclusion
Questions
13.8 %
0
SmithKline Beecham
P&G
Position on the market:
 Leading oral care company
in Germany
 No. 1 in Switzerland and
Austria

3. Strategy
Overview
Savvy Marketing
Strategy
Brand
• E.g. Extending familiar brand names
Product
• Fresh positioning to whitening products
Promotion
• Close attention to consumer needs
Product Extension
Conclusion
Questions
o E.g. packaging: eliminating wasteful
wrapping
• Regiocentrism –Giving local managers
autonomy

4. Brand
Overview
 Testing product name in two German cities
Strategy
Brand
Product
Promotion
Product Extension
Conclusion
Questions
•
Winner: Odol (category leader in
mouthwash in GER, AUT and SWZ)
• Consumer confidence in the product for 100
years
• SmithKline Beecham draws on success of
local brand names rather than having one
universal name

5. Product
Overview
Strategy
Brand
 Price: 25% > the average price of toothpaste in
Germany
 USP: Three-prong protection against Cavities, Plaque
and Periodontal Disease
Product Extension
 Growth:
o 1st year 4% Market Share
o 2nd year 6% Market share with introduction of a
mint line extension
Conclusion
 Unique packaging : Tubes without an outer box
Product
Promotion
Questions
“We take our consumers very seriously”
“When we noticed that consumers were
reacting to unnecessary packaging, we
acted immediately”

6. Promotion
Overview
Strategy
Brand
Product
Promotion
Product Extension
Conclusion
Questions
Even with less spending on
advertising, market share was rising the 4th
year after the launch
 Partnership with Grey Advertising:
o Amusing campaign- strip-tease act
with toothpaste unburdening itself of
its outer packaging
o Special packaging (tooth shaped)
Odol med 3 - also being used as a
template in other markets
 ‘Authority’ Persuasion
Technique
o Dental professional called ‘Dr. Best’
appeared in the TV ad recommending
the products

7. Product Extension
Overview
Strategy
Brand
 Whitening Toothpastes: Odol Med 3 Samtweiss
o
Initial Perception = ‘Also-Ran’ product used
mainly by smokers and coffee/tea drinkers
Product
o SmithKline aimed to alter this perception
Promotion
• Whiteners damage teeth / abrasive
• People with yellowing teeth should try this product
Product Extension
Conclusion
Questions
o Propelled toothpaste share to 6.8% and overall
share to 15.8% in a year.
o Lead to competitors (Henkel and Colgate) to follow
their foot-steps.

8. Product Extension
Overview
Strategy
 Toothbrushes: Dr Best
o
Languished at 5%. Of German market
• Considered selling the brand
Product
o
Research show brand had over 70% recognition
Promotion
o Product Advantage
• Brush with floating neck and Flexible handle
• Massaged gum without damaging them
Brand
Product Extension
Conclusion
Questions
o Found a Dr Best dentist and used him in
advertisements.
• Toothbrush on tomato.

9. Conclusion
Overview
Strategy
Brand
Product
Promotion
 Regiocentric strategy should be
considered by organisations
 Importance of meeting the needs of
consumers
Product Extension
Conclusion
Questions
 Consumers from Masculine society
(Germany) are more willing to adapt to
innovative products (Singh, 2006)

10. Questions
Overview
Strategy
Brand
Product
Promotion
Product Extension
Conclusion
Questions
1. Which aspects of the German marketing
environment explain the success of Odol
med3 in terms of consumer response to
brand innovations
2. Why can a market like Germany be a lead
market for packaging innovation in
general?
3. Discuss the issues involved in transferring
part of Odol’s recipe for success to near
national
markets
(France,
the
UK), especially the tooth-like packaging.