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LIBBPHARMACEUTICALS

A Case-StudyPresented by-

Gagandeep SinghSukhdev SinghJagdeep SinghAmritjot Kaur Harpreet JassalAprajita sharma

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LIBB PHARMACEUTICALS

Market share of libb pharmaceuticals declined from 15% topresent 10%.Firm should undertake attitude research on toothpaste market

to determine

Can consumers attitude towards brands predict individualconsumer brand preference.What perception do people have of Alive toothpaste?What are preferences for and perceptions of the other major major brands of toothpaste?

How can Alive toothpaste best be positioned in the marketplace?

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BACKGROUND-

Libb pharmaceuticals was started in 1855, founder Phillipdeveloped an all purpose skin ointmentBy early 1900s firm was manufacturing & distributing wide

line of pharmaceutical & personal care product.Firm manufactured 4 different type of toothpaste.By end of world war II firm decided Alive will be

firms only brand of toothpaste

It will be modified & reformulated as appropriateto keep the brand competitive with changingmarket conditions and potentials.

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PRODUCT & POSITIONING-Alive positioned as an all-in-one mouth care productTag lines:

Alive toothpaste polishes your teeth as bright as any other brand

Alive contains special ingredients that freshens your

breathAlive contains special fluoride to reduce tooth decayAlive brightens & protects your teeth & freshens your

mouthBrand advertisement- TV commercials, day & prime timeFocus on boy meets girl & vice versa2nd largest budget to national magazines with some use of

Sunday newspaper supplement.Focus to reach as many consumers as possible with the

amount of promotional dollars available.

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Research Methodology Used

Steps Involved were:-

1.Determine the relative product attributes

2.Design a questionnaire and testing the consumer`sabiltity to answer them.3.Do a pre-test of the research methodology.4.Nation-wide administration of the survey.

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Product Attributes Selection

20 small focus group interviews were conducted. The most frequent attributes discussed were:-

1.Decay prevention2.taste/flavour3.Freshness of mouth4.Whitens teeth5.Price

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Pretest and final questionnaire

Pretest done in 100 householdsFinal questionnaire was sent to all the selected respondents.Final questionnaire was sent to 2000 households selected

demograhically. A small gift of approx 2$ was given to each respondent.78.5% of respondents did respond.However Out of 78.5%,only 63.6% were considered usable

i.e. 1571 out of 2000.

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Q uestions asked were as follows:-

1. How would you rate the various brands on the bases of various attributes given?

2. Rank the following attributes in order of their importance?3. P lease indicate the choice of various brands as first

choice,second choice and so on?4. How many times is the toothpaste used by all members of

your family counted together?

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TABLE 1

hyperlinks\FRE Q UENCY OF BRANDPREFERENCE RANKING IN PERCENT.doc

TABLE2hyperlinks\attribute importance rankings inpercent.doc

TABLE3hyperlinks\Frequency of actual preferencerankings.doc

TABLE4hyperlinks\Average consumer ratings on toothpastebrands on relevant attributes.docx

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Cont...Attitude model correctly predicted most preferred brand for

74.9% of the respondentsModel also correctly predicted the 2 nd most prefered brand

for 45.5% of the sampleLeast preferred brand was correctly predicted 63.3% of timeAlive was rated as a 1.27 on taste/flavour ( the lower the

rating, more satisfactory brand is perceived on that attribute)by those who prefer it and as 2.23 by those who statedpreference for some other brand.

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RESULTS OF CONSUMER RESEARCH-Crest was ranked as most preferred by 46.4% of the

respondentAlive was ranked 1 st by 10.5%Alive was ranked 2 nd by 22.7% and 3 rd by 22.3%Brand preference highest for Alive toothpaste among the

people going to grammar schoolAs education level increases, the preference for Alive alsodecreases.Same phenomena holds true for Colgate while the opposite

is true for Crest.

75% of the respondents ranked Decay prevention as themost important attribute in selecting a brand of toothpastePrice ranked as the least important attribute.

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y Consumers are classified into segments.

y Consumers judge toothpaste on taste and appearance;

teeth whitening ; prevention of tooth decay etc.

y These segments represent customers with specificneeds.

y If there is no positioning the consumer is confusedespecially if he/she is looking for a specific positioning

y Alive toothpaste has a general positioning.

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y Choose your position

y See if you product is honest to that position

y This will give TG and the communication medium. My medium of advertising changes with my segment.

y Right now they are wasting a lot of money and diffusing their effort on marketing.

y Even if they do choose positioning of tooth decay, there might beother brands already there so the company needs to make achoice.

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