1. Chong, Annie Michelle
MarkMa Assignment - Session No. 6
Industry Roles
Pick an industry. Classify firms according to the four different roles they might play:
leader, challenger, follower, and nicher. How would you characterize the nature of
competition? Do the firms follow the principles described in this chapter?
Below is the classification of four brands (toothpaste manufacturing firms) according to its
market roles:
Brand Company Market Role
Colgate
Close-up
Hapee
Sensodyne
Colgate-Palmolive
Unilever
Lamoiyan
GlaxoSmithKline
Market Leader
Market Challenger
Market Follower
Nicher
Nature of Competition:
The nature of competition in the toothpaste industry is considered a perfect competition.
Toothpaste industry is considered as the most important subcategory of the oral care industry.
Based on market share, the top two consumer choices in toothpastes are both manufactured by
multinational companies. Colgate currently leads the top position with the most market share.
Coming on second is the Close up and on the third is the Filipino-owned brand, Hapee.
These firms do follow the principles described in the book. Colgate, being the market leader has
about 52% of the market share. The market leader gets to price higher than competitors but is
very well-known among the consumers. Its brand name is almost synonymous to toothpaste
when one thinks of toothpaste. Colgate remains aggressive in expanding its market share by
offering new variants and maintaining media exposure. They are also widely distributed
nationwide. It consistently uses defence marketing by promoting on “fighting cavities and
preventing tooth decay” and makes sure its market share are protected by always ending with a
caption that it is the number one recommended by dentists.
As for the market challenger, which is Close-up, it highlights the products as the only one that
can provide fresher breath and whiter teeth. It builds up its competitive advantage by promoting
on higher confidence to stay closer associated with fresh breath. It does frontal attack on its
marketing strategies by using events such as Close Up Love Palooza to intensify up its exposure
and gain more market share.

2. The Market Follower, Hapee, has all the same variants that Colgate and Close up is offering. It
does product imitation and at the same time, innovates new variants as well to differentiate from
the top two brands. Its prices are lower than the two brands to increase its market share.
Sensodyne is considered a nicher in the industry because it highlights that it is for sensitive teeth.
It serves to a small market size and normally avoids competing with the top brands.
Pricing Methods
Think about the pricing methods described in this chapter—markup pricing, target-return
pricing, perceived value pricing, value pricing, going-rate pricing, and auction-type pricing.
As a consumer, which do you prefer to deal with? Why? If the average price were to stay
the same, which would you prefer a firm to do: (1) eset one price and not deviate or (2)
employ slightly higher prices most of the y
As a consumer, I would prefer the pricing method of value pricing. It is important that the
company selling me the product deliver good quality items in reasonable prices so that it gives
creates value to me. Likewise, I would not mind paying a higher price for a certain product or
service if I can feel satisfied with my purchases.
If the average price were to stay the same, I would prefer a firm to set one price and not deviate
on it. This is because for me, if a product or service is satisfactorily good enough, it won’t need
to offer discounts in order to promote seasonality or do special offerings. There would always be
a buyer and will continuously use it.