18008 aman chopra
TRANSCRIPT
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Assignment Toothpaste
Market Case StudyFMCG
AMAN CHOPRA
18008
1/1/2013
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MARKET ANALYSIS
If we look closely we are able to figure out that the Indian market for toothpaste has high brand
loyalty than other countries. The change of toothpaste usually takes place only when one is
purchasing the brand. So point of sale is the key moment to convert customers from other brands toour brand.
Pepsodent as well as Colgate are worthy competitors for Indian market. These have dominated the
maximum share for many years now and any change in their brand perception will make the
consumer switch to other brand.
ABOUT PEPSODENT
Pepsodent was launched in 1993 in India and since then the brand has raised the benchmark on Oral
Care solutions in India.
Pepsodent has a range of toothpastes and toothbrushes that could take care of specific oral care
needs. 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
ABOUT CLOSEUP
CloseUp has been synonymous with 'Freshness' that gives you the confidence in social situations.
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.
KEY FACTS Indias 1st gel toothpaste Market leader in gel toothpaste category for over 3 decades Some of the best known celebrities have been part of Closeup ads over the years
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Variants of Pepsodent: Variants of Colgate:
Question 1)
Given the present data what do u think HUL should do at a brand level. Try and find a solution on
each of the 6Ps
Answer 1)
Brand Strategy through 6 Ps
PRODUCT
Looking at the number of product variants we need to distinctly focus on variants vis--vis Market.
The analysis from the case would be that Pepsodent variants at high price points have done well in
modern trade as well as retail. The product matrix/pyramid should be such that each market is
identified and a minimum of 2 variants are used in order to compel the consumer to try the product
at least once in 4-5 purchases he/she does.
PRICE
Pricing has to reduce for mini packs as they attract our potential customers from the SEC C and rural
areas. Pricing is the key differentiator for these people. The pricing at mid and high level should be
marginally above market price as the volume of purchase is more.
Place
The market still untapped is rural as well as SEC-A. The variants at the top most level are one that is
advised by the doctors. If one has to look desirable we have to create a product for SEC-A+ which is
ambitious for them but has complete worth of the product.
Promotion
Colgate Dental Cream Colgate Total 12 Colgate Sensitive Colgate Max Fresh Colgate Kids Toothpaste Colgate Fresh Energy Gel Colgate Herbal Colgate Cibaca Family
Protection Colgate Advanced Whitening Colgate Active Salt Colgate Whitening
Complete + Gum Care Complete 12 Pepsodent Herbal Pepsodent Pepsodent Milk Teeth
Orange Pepsodent Milk Teeth
Strawberry Pepsodent Sensitive Pepsodent Whitening Pepsodent Cavity Prevention
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Promotional activities of both HUL as well as Colgate are seen through their advertisements as well as
their CSR activities. The focus should be on which market is one looking for and how much money is
spent in order to the cover large market as well as the consumers.
Packaging
Red is attractive, appealing and has high visibility. To compete with that the packaging should be
equally strong. Though Pepsodent has blue as its theme colour and packaging appears to High and
middle class but fails at lower class people. To connect with them the packaging should be more
bright and bold.
Question 2)
What do u think Colgate (Pepsodent?) should do to become an even bigger player than it is today?
Answer 2)
As this case is 3-5 years old colgate now has become a bigger player than it was before. The market
has expanded rapidly and new age consumers have great connect with colgate now. Due to their
sponsorship with Sunburn and association with some of the MTV programs the brand is targeting
youth as their primary audience for certain variants.
Question 3)
What are the data elements that you think u need that can help u delve deeper and find a bettersolution and why?
Answer 3)
Media Management : Digital
Digital Media is the key to attract youth and further use them to be spread the loyalty with the
brands. Use of SEO/SEM, social media and presence on youth websites would encourage youth and
help us connect with the future.
Sponsorship
Sponsor events, programs where the specific audience is what we are looking for. Like if we are
targeting rural than meeting at gram Panchayat should be used to connect with the brand.
Consumer Behaviour
Try understanding the consumer behaviour as well as pattern of how they switch from one brand to
another as well as the consumption pattern. Use agencies to understand the consumer better and
make variants available to particular markets.
Segment your Customers
In a family, one toothpaste may not serve everybody s need. We need to make our consumers
understand the same. The message of both father as well son using the toothpaste has to be
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changed where children who have different needs should use its own toothpaste. Hence we can have
more variants in the category we are looking to target.
Question 4)
If you were to crystal gaze up to 2015, what do u think the market would look like?o Think of who all could entero Any new formats?o Any new segments of the market?
Answer 4)
The market scenario changes every year and till 2015 we might have healthy competition in 2
extreme categories. One is rural market and other is SEC A+.
Entering a toothpaste market will not be easy. The market is dominated by 2 large players but the
variants they offer is somewhat similar. What colgate did with active salt is the best example of
differentiation and making consumer realize the value of salt in its toothpaste. On a similar not the
extreme variations in the toothpaste is also not appreciated by the customers.
New Formats/Segments
The format of mouthwash is increasingly increasing but may be Indian market is not ready for it yet.
The people need to be made aware of bad teeth problems and once we have achieved that we shall
have mouthwash as one key area where the market is slow and not many players are present.
THANK YOU