Sarajevo, Summer

Semester 2013.

Project: Aquafresh Course: Strategic Brand Management

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Contents

INTRODUCTION ..................................................................................................................3

COMPANY OVERVIEW .......................................................................................................3

BRAND ANALYSIS ..............................................................................................................3

1.1 Brand/ organisational values .........................................................................................3

1.2 Aquafresh heritage ........................................................................................................5

1.3 Brand strengths and weaknesses: SWOT analysis .........................................................6

1.4 Analysis of the competition: how to stand out?..............................................................9

1.4.1 How do they differentiate? ....................................................................................... 10

2.1 Conducting a brand survey .......................................................................................... 11

2.2 Analyzing a brand survey ............................................................................................ 13

RECOMMENDATIONS ...................................................................................................... 17

3.1. Brand differentiation .................................................................................................. 17

3.2. Increasing brand equity .............................................................................................. 18

3.3. Illustration of tactical suggestions (next steps) ........................................................... 19

CONCLUSION .................................................................................................................... 20

SOURCES............................................................................................................................ 21

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INTRODUCTION

As a part of a research study, we chose to examine Aquafresh brand. The first part of

this research analysis contains basic data about the toothpaste industry and company itself,

their main advantages and disadvantages and values based on secondary research analysis.

The second part is consisted of primary research data and conclusions drawn from it based on

survey conducted. The final part concernes future recomendations and propositions for

increasing brand equity and differentiating the brand.

COMPANY OVERVIEW

SmithKline Beecham (SB) is one of the world‟s leading healthcare companies. It

develops, manufactures and markets pharmaceuticals, vaccines, over-the-counter medicines

and health-related consumer products. Its international range of products includes leading

international

brands such as Lucozade, Ribena, Solpadeine, Panadol and Macleans.

One of SB‟s leading world-wide brands is Aquafresh. Aquafresh is the number one

consumer healthcare product in the company‟s international product portfolio and is now a

billion-dollar brand. It is available in over 120 countries. Clearly defined and consistent

strategies

exist for the brand for every country in which it is sold. These strategies are based on an in-

depth understanding of local consumer needs and on communicating the product in a fun and

lively yet simple way.

SmithKline Beecham first launched the Aquafresh brand in 1973. It was a highly

innovative and revolutionary product in that it was the first toothpaste ever to contain stripes.

Since its launch, the brand has grown and developed at a phenomenal rate and a whole range

of oral care products has been introduced under the Aquafresh brand umbrella.

BRAND ANALYSIS

1.1 Brand/ organisational values

One of the most powerful things a brand can do is align its values with its customer‟s

values. While brands can promise functional, emotional, experiential or self-expressive

benefits, those whose values are aligned with their customers‟ values are much more likely to

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achieve a deeper and longer lasting loyalty. This coupled with today's competitive

environment makes brand values alignment a priority of every brand marketer.

For the beginning of our analysis, we will present a company responsible for the brand we

dedicated our project to.

GlaxoSmith Cline is science-led global healthcare company that researches and

develops a broad range of innovative medicines and brands. It has three primary areas of

business in pharmaceuticals, vaccines and consumer healthcare.

Considering its highly sensitive industry, this company has strong organizational

values. Those are: 1. Respect for people- this value is best seen in the company's relationship with its employees.

Apart from the fact that company (as any serious one) has a respect for its customers, it also

pays special attention to its employees. They developed certain behavuors that ensure

possibility for employees to grow and that show respect:

a) flexible thinking

b) building relationships

c) developing people

d) enabling and driving the change

e) continuous impovement

f) customer driven

2. Patient Focus- company strives to improve the health and wellbeing of people across the

world, regardless of where they live or their ability to pay. This value is also one of the biggest

employees motives to work for the company.

3. Transparency- company considers that business has to evolve to meed global challenges, and

so does the culture. Transparecy, thus, becomes very important, and total disclosure is

something company strives to the utmost of ts ability.

4. Integrity- copmany is trying to ensure that doing what is right for their patients and

consumers is at the heart of every decision they make. In so doing, they demonstrate integrity

in action.

Considering the nature of these values a company as a whole has, they are transferable

to the individual brands the company is responsible for up to the certain degree. Although

Aquafresh as a brand is looked upon individually, and many of the consumers do not know

the connection between GlaxoSmithCline and the Aquafresh, those core values can still be

transfered to the brand as separate identity, even though they are not visible at the first glance.

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1.2 Aquafresh heritage

Aquafresh is a brand of toothpaste that was launched in 1973. It is manufactured by

consumer healthcare product maker GlaxoSmithKline (GSK) which was established in 2000

by the merger of Glaxo Wellcome plc and SmithKline Beecham plc. Headquartered in the

U.K., GSK is one of the world's largest manufacturers of prescription and over-the-counter

drugs.

Aquafresh toothpaste was introduced by Beecham plc as the first striped toothpaste on

the market and its blue and white stripes were a clear illustration of two product benefits. As

the first on the world "Double Protection" formula, combined a "white" fluoride toothpaste

for cavity protection and an "aqua" gel for fresh breath, hence the name. The 'ocean of

freshness' advert used images of blue seas and waves to communicate the product's novel

freshness and taste attributes.

Since launch, awareness and interest in oral health have developed considerably and

GSK invests heavily in dental research and resources to ensure that Aquafresh continues to

meet patients' needs. In the early 1980s, fighting plaque was a significant issue and GSK

augmented the product to help reduce plaque build-up. In 1983 Aquafresh's formula was

redeveloped into a "Triple Protection", after a "red" gel for healthy gums was added. As such,

the three stripes - red, white, and aqua, have since become registered trademarks which is

very recognisable and adored by customers. Since then, advertising has marked this as a

"complete toothpaste" and a "whole mouth paste" and the slogan for Aquafresh is "three in

one protection for your family".

Development of the Aquafresh brand continues today, with a number of Aquafresh

products available that meet the changing needs of patients. Dental research supported by

GSK ensures that the Aquafresh brand continues to address critical oral health issues.

2008 saw the launch of the new Aquafresh 'Your mouth is amazing' campaign, which inspires

patients to recognise the amazing physiology of their mouths. Modern, exciting television

commercials bring Aquafresh into the 21st century and inspire patients to think about the

amazing processes taking place in their mouths and their teeth every day.

Diversity of Aquafresh toothpastes is nowadays divided into six main groups:

EXTREME CLEAN - toothpaste which delivers on an extreme feeling of clean by

delivering bad breath, micro-active, germ-killing bubbles.

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ISO-ACTIVE - whitening toothpaste which is a breakthrough gel that transforms into

an active foam penetrating hard-to-reach places and protecting – front, back and in-

between.

WHITENING – whitening toothpaste which include extreme clean, ultimate white and

extra fresh+whitening series.

ADVANCED - reinvented toothpaste with a 2X Enamel Strengthening formula, which

helps lock in vital minerals and lock out plaque acids - for strong, healthy teeth for a

lifetime.

ORIGINAL – classic toothpaste series contains 4 types of toothpaste: cavity

protection, extra fresh+whitening, tatar control+whitening, sensitive maximum

strength,

FOR CHILDREN- range of toothpastes and toothbrushes series dedicated special for

children in age 0-3, 4-6 and 6+ years old.

Aquafresh has also started to offer another products in oral health segment by starting

a line of toothbrushes for children and adults. In 2004, they introduced the Max-Active brand,

which was promoted as the first to fit the size of any tooth. There are also Dragon

Talestoothbrushes for children and mouthwash. Aquafresh also launched a tooth-whitening

product, Aquafresh White Trays, in February 2007.

Nowadays Aquafresh is one of the world's largest oral care brands. Its range includes

toothpaste, toothbrushes, mouthwash, and on-the-move oral care products. The unique red,

white and blue striped toothpaste makes the product visually distinctive, but also underlines

the triple benefits of strong teeth, healthy gums and fresh breath – whole mouth protection.

1.3 Brand strengths and weaknesses: SWOT analysis

1.3.1 Strengths

SmithKline Beecham is recognized as the world‟s leader in personal care sales which

included oral hygiene products like toothbrushes and toothpastes. In 1991, its sales topped at

$6 billion and profits at $2.76 billion as it cornered 43% of the world‟s toothpaste market and

16% of the world‟s toothbrush market. In the United States, the world‟s largest market, it

holds the number one spot in toothbrush sales with a market share of 23%.

The brand‟s market sharecontinues to grow and it is one of three brands that today

dominates the oral care market.

When Aquafresh entered the market in 1973, it brought with it two key product

attributes which were unique. These attributes were instrumental in differentiating Aquafresh

from all other competing toothpaste brands.

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Aquafresh was the first striped toothpaste to be launched in the market. Its blue and

white stripes were a clear illustration of the two product benefits - fresh breath and the ability

to fight tooth decay. The stripes were perceived by consumers as novel and innovative and

were instrumental in differentiating the brand from its competitors.

It was also the first brand to offer consumers freshness as a major product benefit. This

concept of freshness appealed to a whole new target market. Young peopleand young families

were as concerned about taste and fresh breath as they were about the medicinal benefits of

toothpaste. They were instantly attracted to Aquafresh with its unique fresh taste.

The way in which Aquafresh was launched also added to its appeal. A new style of

advertising was designed for its launch. The „Ocean of freshness‟ advertisement used images

of blue seas and cresting waves to communicate the product‟s freshness and taste attributes.

This advertisement was instrumental in further differentiating the brand from its competitors

and Aquafresh was very quickly established as the best and most modern toothpaste brand on

the market.

The success of Aquafresh is based fundamentally on four key learnings:

1. Superior products with defined target markets

2. Product Range extension

3. Excellent advertising

4. Strong promotional support.

From these statistics, one of their main strengths is being the market leader in oral care

products. Aquafresh is the number one consumer healthcare product in the company‟s

international product portfolio and is now a billion-dollar brand. It is available in over 120

countries.

Their knowledge and know-how helped them create a wide distribution network

across entire world which allows them products and goods to almost every corner ofthe world.

Aquafresh has an extensive Research and Development department boasting 170 employees

worldwide. That is linked to its current position as on of the market leaders in the toothbrush

industry. Therefore, their strong commitment to innovation through investment in R&D is a

prominent strength.

They offer a great range of products ready to cater to specific needs of different

consumers. A dedicated website provides a stronger online presence with engaging content

for its target group.

Aquafresh uses innovative oral health technologies to appeal to a younger

audience. The packaging of Aquafresh Extreme Clean, for example, is a shimmering, glittery

box that appears hip and current. This along with low product facings is a marketing ploy to

appeal to children whose eye level is lower than adults.

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1.3.2 Weaknesses

Aquafresh is a strong brand owned by the world's third largest pharmaceutical

company. While the Aquafresh original is instantly recognizable by its distinct red, white

and blue ribbon, other newer products are not as known. Higher advertising spending are

needed in order to sustain in the market that is constantly increasing. Shelf facings are weak.

Products are usually displayed on the shelf below the consumers‟ waistline since it appeals to

a younger demographic leaving out older, higher spending consumers. Compared with biggest

competitors, Aquafresh has fewer facings in stores.

Like many companies, Aquafresh has evolved with the number of products it offers.

While it continues to add products, such as white strips, floss, toothbrushes, mouthwash, etc.,

it may have lost the focus it had with just toothpaste. While Aquafresh continues to grow, it

can grow too big and begin to lose focus on the brand.

A major weakness of Aquafresh is the fact that it is not its own brand.This is mostly a

weakness for the Aquafresh brand because the money that is coming into Aquafresh may not

being coming straight into Aquafresh. Also, GSK launched Sensodyne toothpaste which is

seen as a major competitor to Aquafresh.

1.3.3 Opportunities

Demographic trends like increasing population and purchasing power favor the

consumer healthcare market, thus opportunities for growth.

Secondly, with the baby boomers and younger generations becoming more concerned

with the health of their gums, they will be willing to pay the above mentioned premium for a

toothpaste which is optimized for better gum care. Company can capitalize upon this

demographic segment to ensure a successful release of their product.

Aquafresh has many opportunities to expand their current line of products along with

developing new and exciting products that will benefit many people. In the Aquafresh line of

products, there are many different products that will help a person fight many forms of oral

care issues, from tartar to gingivitis. But in all of the different toothpastes that Aquafresh

offers, there are only a handful of toothpaste flavors. Adding more flavors, especially for

children could increase sales.

1.3.4 Threats

The super-premium market is highly competitive, hosting many brands and private

label toothpastes. If any of these rivals creates a toothpaste which tops or even equals the

technology of Aquafresh, specifically if done at a lower production cost, Aquafresh may lose

market share.

Along with intense rivalry from existing competitors, Aquafresh has to deal with new

competitors.

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One of the factors which can cause buyers‟ bargaining power to grow is when the

switching costs for buyers are low. Even if Aquafresh were to position its brand as the most

expensive toothbrush on the market, it is still a relatively inexpensive product, compared to

many daily purchases (i.e. lunch in NYC or a cup of coffee at Starbucks). Therefore, buyers

can easily switch between toothpaste brands without giving the decision much thought.

1.4 Analysis of the competition: how to stand out?

Hundreds of existing brands of toothpaste occupy the market and the bestsellers are (in

order of market share) Signal, Colgate and Aquafresh.

The toothpaste market is a mature but still growing market and the marketing

strategies of the main competitors is all about improving product quality, adding new product

features, new sorts and flanker products, entering new market segments, new distribution

channels and so on, to strengthen the firms competitive position.

Table 2: Value share of main competitors in the toothpaste market

Brand Value Share

Colgate 37%

Maclean 15%

Sensodyne 12%

Aquafresh 11%

Others 25%

Source: Oral Hygiene Review (2001)

The toothpaste industry is one typical model of an oligopoly meaning that it is

dominated by a small number of major firms such as Colgate-Palmolive, Procter and Gamble

and GlaxoSmithKline(Aquafresh) (Industry structures 17. 2008.).

The competition among the different companies have always been ferocious with

companies launching new products with new features regularly be it whitening toothpaste,

mouth fresheners toothpaste or economic toothpaste. This is just an example of how the

competition is harsh and how the companies want to target different market segments.

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Each firm produces a toothpaste which is differentiated (i.e. different in character)

from all other toothpastes produced by the other firms in the industry. Thus one firm might

produce a red, white and blue toothpaste with a spearmint taste, another might produce a

white toothpaste with a wintergreen taste. This assumption is similar to a monopoly which

produces a unique (or highly differentiated) product.

Under monopolistic competition, each firm produces a differentiated product. Products

are close substitutes but not perfect substitutes. The toothpaste market is a market with many

competitive rivals, with similar products that are aimed at the same customer group.

The differentiated products are imperfectly substitutable in consumption. This means

that if the price of one toothpaste were to rise, some consumers would switch their purchases

to another toothpaste. From the perspective of a firm in the industry, it would face a

downward sloping demand curve for its product, but the position of the demand curve would

depend upon the characteristics and prices of the other substitutable products produced by

other firms. This assumption is intermediate between the perfectly competitive assumption in

which goods are perfectly substitutable and the assumption in a monopoly market in which no

substitution is possible.

The barriers to entry are also relatively low making it easy for new competitors to get

in the game. Thus if one toothpaste company are selling well and making profits on a type of

toothpaste, it sends signals to the competitors to open up or start selling similar toothpaste.

Thus, the market is fragmented and the brands have a hard time to differentiate. As soon as

you have come up with something new, the competition will be there and have their own

versions of it, right next to you in the store.

1.4.1 How do they differentiate?

A brand can differentiate their toothpaste, on feelings, product features like tastes and

so on. Many of the larger brands seem to have a similar strategy with large amount of product

offerings, trying to offer a toothpaste for every age and thinkable problem that could occur.

Aquafresh have many toothpastes for children and has games and things for younger children

on their homepage, and Colgate talks about what happens with the teeth when you get

pregnant, just to mention some examples.

Then we have the “outsiders” with a more focused differentiation strategy, trying to

find a niche and compete on a different term.

For example, Sensodyne toothpaste, that also is owned by GlaxoSmithKline like

Aquafresh, has a more serious health- and medicine approach. Giving a solution directed to

health problems like prevention of brown teeth for smokers and gum disease, and protection

of sensitive teeth. Vademecum is saying that its a little bit stronger than other toothpastes, and

that children should use just a small amount, giving the impression of that it is more of a

medicine than just a toothpaste with natural ingredients. And we also have the specialized

toothpastes that are sold only in pharmacies, giving them an exclusive distribution to make

them seem more medical and exclusive. We also have Email Diamant, portrayed as the

“cosmetic toothpaste”, that concentrates on the cosmetic angle of it, making toothpaste sound

like a small surgery enhancement. Looking young and fresh with whitening of your teeth,

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without going to a professional dentist and getting them whitened. Also Denivite concentrates

on a “professional whitening at home”- approach.

A new differentiation key driver that is also emerging in the toothpaste market, is for

toothpastes to be more organic, vegetarian and more green and eco friendly.

There is also the in-store brands that have more of a “no frills strategy”, Carrefour, for

example, is offering its own “BIO”- toothpaste, for a smaller amount of money than the

similar competitors.

At a first glance many of the large competitors seem to have similar strategies, but as

you can see there is still room for differentiation. Later on in the blog we will concentrate on 5

brands and go in depth, and show you how each of them are trying to keep their

differentiation in this large market.

2.1 Conducting a brand survey

Considering we had chosen the brand Aquafresh, we had to adapt the model of survey

we created together with our assistant on the tutorials, to match our chosen brand.

The introductory part is consisted of explanatory paragraph, in which is described the

aim of the survey, survey conductors and contact information. The potential respondents were

asked to fill in the survey so they can participate in research considering brand Aquafresh.

The goal was to collect objective, first hand information from the users of this particular

product.

Survey contained closed format questions in dichotomous, importance and Likert scale

forms.

In the first part of the survey, respondents were asked to answer question regarding

their demographic status (age, gender, education and income).

The second part consisted questions, regarding general usage of toothpastes available

on BiH market, the usage of the product itself and consumer preferences.

In the final and the most important part of the survey, respondents were asked to

answer questions regarding the brand itself, brand awareness and brand position in

consumers‟ minds compared to other competitive brands on the market.

The survey was conducted online via social networks by the end of the second week of

April 2013. We collected 37 responses (see Exhibit 1), and even though this number of

responses is not sufficient for making statistically relevant conclusions, one should have in

mind that this is a trial research for academic purposes.

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Exhibit 1.

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2.2 Analyzing a brand survey

By analyzing the data we collected we can derive conclusions later on regarding

increase of brand equity for the consumer of the brand and further differentiating the brand

from its competitors.

2.2.1 Demographics

Out of the 37 respondents, 12 of them were male (32 %), and 25 of them were female

(68 %). All of them belong to age group up to 25 years old, 8 of them were younger than 20

(22 %), while 29 of them were in the age group from 21 up to 25 (78 %). This is probably

because we conducted our research online, via social networks targeting mostly our friends

and peers. That could also explain the fact that 100 % of our respondents have personal

income lower than BAM 1000,00.

Household income differs from personal income. When we look at the Exhibit 2 we

can see that 9 % of our respondents have household income below BAM 1000,00, 39 % of

our respondents have household income between BAM 1001,00 - 1500,00, 19 % of them have

household income between BAM 1501,00 – 2000,00, while 13 % of them have household

income higher than BAM 2000,00.

All of our respondents live in Canton of Sarajevo and most of them (49 %) have

finished high school so far, while 43 % of them have bachelor degree. Only two of our

respondents have master‟s degree.

Exhibit 2

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2.2.2 Brand awareness

Based on the information drawn out of data collected, we can conclude that customers

are familiar with brand Aquafresh and that they actually use products of this brand. Only one

of 37 people wasn‟t familiar with the brand Aquafresh. Even though respondents are aware of

the brand, the level of awareness varies, as one can see in Exhibit 3.

Exhibit 3

We can say that promotional activities targeting brand awareness have fulfilled their

task, but later on through our survey we will see if they stopped there, or promotion was so

successful to trigger consumer preferences towards Aquafresh brand.

Further more in our analysis we discovered that customer mostly buy Aquafresh and

Colgate brands, but not far behind them is also Zirodent. These two brands are the biggest

competitors to Aquafresh brand on BiH toothpaste market.

When consumers were asked to choose which of the listed brands their favorite one

was, we can say that, it was pretty much a dead race between these three brands. And this

slightly differ from global trends on this product market, because from secondary data we

found out that two biggest competitors to Aquafresh are Signal and Colgate, with Signal

having the highest market share in the world. Although we listed and researched 5 different

brands in further analysis we will focus only on Aquafresh, Colgate, and Zirodent, and we

will only compare responses regarding these three brands. This is because the remaining two

brands (read Signal and Sensodyne) have significantly lower market share in BiH toothpaste

market than chosen three brands.

According to the answers of our respondents, consumers of toothpaste in BiH are not

so loyal to the brand they use.(See Exhibit 4) We will connect this to the secondary data we

found, that says, that consumers think that it is better to switch between brands of toothpaste

every once in a while, and it is very difficult to distinct and determine benefits of each

particular brand of toothpaste. Consumers tend to take more than one brand of toothpaste into

consideration when making purchase decision in their previous and future purchases.

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We can say here, that based on these data, and because of high competition, Aquafresh

should find that missing something that could lure consumers into purchasing their products

and make them always choose Aquafresh.

Exhibit 4

Responses also showed that the crucial factor affecting the purchase decision is level

of quality. The top three brands had again the highest scores when evaluating this criterion. It

is followed by criterion regarding best performances this product provides. As we previously

mentioned it is hard to differentiate and evaluate product benefits for customers. The research

showed that for these three brands customers haven‟t had such differed opinions, and they

pretty much evaluated and scored these brands and their characteristics in similar way, giving

them similar grades.

Having in mind that it is difficult for consumers to differentiate performances of

different toothpastes, we researched which sources do they use, if any, when informing about

products that they tend to buy, and what is it, that influences their final decision. What makes

them choose the brand that they end up buying?!

We can see, from the Exhibit 5 that the TV is traditionally still the most influential

media in our society, because most of our respondents listed TV as their main source of

information. TV is of course followed by more and more popular source of information, the

Internet. And we cannot exclude word of mouth, which showed as still influential force when

marketing a product.

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Exhibit 5

2.2.3 Awareness, image, loyalty and competitiveness of Aquafresh brand

In general, more than 80% of respondents find that Aquafresh brand has a good

reputation, not just among their friends and colleagues but also on the entire market of

toothpaste in BiH. But this doesn‟t prove that most people prefer Aquafresh, because

responses regarding reputation of other competitive brands have been similar. This again

proves how hard it is to distinct this type of product on the market, among their competitors.

Based on their responses we can say that Aquafresh created a great image of its brand because

they mostly perceive Aquafresh as brand that fulfills their expectations, and it serves its

purpose.

Although we already concluded that this is high competitive market where the

products are similar and supported that through entire research analysis, that does not mean

that Aquafresh doesn‟t have its loyal customer. We found that 15 to 20 % of respondents

would still buy Aquafresh brand making it their first choice even if other brands have same

characteristics, but only 10% of respondents personally consider themselves loyal to the

brand.

When compared to its competitors, Aquafresh is considered to be recognizable

between other products of the same kind, making it possible for 78% of our respondents to

recognize the brand. Also, for the most of our respondents (85%) it is easy to remember the

logo or the symbol of Aquafresh. It seems that Aquafresh makes a strong impact on the

customers since 63% of respondents can remember some of the characteristics of the brand

without difficulties and connect brand with values which is surely a positive thing.

Also, the overall picture of the company offering the product is good, only 12 to 25%

respondents claimed that company did not fulfill their expectations. This good reputation

could have a crucial value for the company in attracting new customers, making them more

loyal and increasing market share. Customers believe in the functionality and quality of the

brand so they expect that they will get the value for the price paid and that the brand will

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satisfy the needs they have. (see Exhibit 6)

Exhibit 6

To conclude, the results of the survey were not so surprising. We proved that the users

of toothpaste are not so loyal to the brand which we found from our secondary data.

Aquafresh brand is recognizable, trustworthy and it has a good reputation in the society in the

broader sense. Furthermore, it is among top three brands on the toothpaste market in our

country, and as such, it has opportunities for increasing its market share, becoming the leader

among its competitors. One of the main obstacles may be high competitiveness of the market

followed by similarity of the products offered.

RECOMMENDATIONS

3.1. Brand differentiation

In order to differentiate a brand like toothpaste it is very important to know what

people want from it, what do they expect to get by using toothpaste? It is important personal

care product because its usage is independent of age, sex, or disposable income.

Based on secondary data and research we conducted people want that their toothpaste

to provide them items with the highest loadings. Those are: makes mouth feel just like coming

from a dentist after brushing, cleans teeth thoroughly, encourages children to brush their teeth,

gives shiny teeth, and long-lasting fresh breath. With the exception of the third item, all items

can be associated with the clean teeth and its benefits. Therefore, factor 1 is interpreted as the

toothpaste cleaning ability. Using the same procedure, factors 2 to 4 are interpreted as cavity

protection, approval of dentists, and whitening power respectively. In our research we found

out that customers really relay on quality of the products they are using. That is because they

use tooth paste because of their health, and then for cosmetics.

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Furthermore, the emotional value analysis highlights two factors. The first one is

labeled confident describing the contented feeling of having clean and healthy teeth. The

other factor, however, is similar to the aspirer mind-set factors, such as rich, attractive, and

young. Finally, the novelty items are summarized into two factors: “curiosity,” brought about

by new brands, packaging redesigns, sales promotions or even trying their friends‟ different

brand, and for a “change of pace” mainly to get a better tasting toothpaste.

Now that we see what we are up against it is easier to confront the problem of

differentiation. But these data are public, and mostly all of top toothpaste brands used their

own research to collect certain data that would help them understand customers better.

The product should stand out on the shelves, what does that mean, it should draw

attention. There is a lot of brands on the shelves these days. Now when you stand in front of

the tooth paste shelve you can barely see what you came for, everything is shiny, bright

colored, 3D images it demands attention. But when everything demands attention nothing can

be seen.

Use alternative containers. Nowadays, all of the tooth paste containers are tubes, there

are some new packagings but mainly there are tubes. One should think of the newer easier

way of packaging tooth pastes. So that customers buy effectiveness from that container,

something that will address more hygienic way of putting the toothpaste on the brush,

something that will be fun for the children also. There is one great opportunity there.

And finally it should focus on taste. Taste is very important factor, customer enjoys

good taste in tooth pastes, and it is the item they use on daily basis. And they have so many

alternatives so they like to try out different tastes. But not all customers like same things. It is

very difficult to cover every ones taste, also it would be mistake to offer customers too big of

a range of products, because it might distract them from the products we want them to buy.

3.2. Increasing brand equity

The success of Aquafresh is based fundamentally on four key learnings:

1. Superior products with defined target markets.

In order to keep this competitive advantage, Aquafresh needs to redefine segments

which they need to address to keep track with increasing number of products on the market

and changing trends.

2. Product Range extension

The market is constantly changing thus creating new opportunities for competitors to

stand up and catch new customers. In order to use these opportunities, their products need to

satisfy current needs on the market, so their range should be broad enough to catch different

types of customers.

3. Excellent advertising

Advertisements can be a great step up in differentiation process. Catchy

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advertisements or slogans can be a great incentive for customers to buy the products.

4. Strong promotional support.

And finally, Aquafresh needs and currently runs strong promotional campaigns which

can make an image in customers minds that with buying their products, they actually get more

value for their money.

Trying not to lose focus on their strength and brand image, it is needed to add special

attractive innovation. During our analysis, we saw the great opportunities on expanding

Aquafresh toothpaste flavors. For people who have positive impression on Aquafresh oral

health care, now Aquafresh can offer different flavors that other competitors don‟t have.

When tooth paste starts to build reputation on good taste, it differs on the market; it brings it

higher in customer‟s minds. It gets prestige. Soon customers will start to connect Aquafresh

with good flavors and they would be interested to try on extension products.

3.3. Illustration of tactical suggestions (next steps)

Because a toothpaste market has a broad range of customers with harsh competition,

by defining the different segments correctly and delivering right image to customers can help

to increase the market share of products.

First Aquafresh needs to address somewhat loyal customers. Because toothpaste is

convenience good it is not something people debate about when buying it. Aquafresh can use

this to maintain their good reputation among current buyers. It is necessary to focus on loyalty

customers who tried Aquafresh products and find it very impressive so first thing is to keep

those customers and to try to make them completely loyal.

Second thing they can do regarding new trends is to address more on whitening

products. People today want to have “celebrity teeth”. What does that mean, it means that

society today is vain and Aquafresh should keep that in mind when communicating tooth

paste that helps teeth to stay white and shiny, address customers with help of celebrity

representatives etc.

Third thing is addressing women with children. Their most important factor is health

of their kids, but addressing kids is also very important. To combine both of these tactic into

one with offering products that kids connect with by introducing them characters that they

love, cartoons etc., but also offering commercials that will show their parents that it is a good

and healthy choice for their kids to use that particular tooth paste. Here interesting and

innovative containers would be helpful in making tooth brushing fun for the kids, and when

parents see that it will help create a healthy habit for their kids to always brush, it will attract

them to buy Aquafresh.

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CONCLUSION

Aquafresh, in a period of only 25 years, has achieved phenomenal global success.

It is now a billion-dollar brand available in over 120 countries.

The key factors which have contributed to its success are:

Aquafresh is a superior brand with a range of top-performing products.

Aquafreshhas a clearly defined personality– fun, modern and for all the family.

The brand has continuously evolvedand responded to market trends and forces

while always holding on to the stripes as a key part of the brand.

It is based on a clear understanding ofthe needs of its target markets.

It is supported with superior advertisingand promotional campaigns.

Expectations for Aquafresh, however, will not stop here. Ongoing product

development and market penetration strategies will ensure that all products in the Aquafresh

range will continue to offer consumers modern solutions to their oral healthcare problems.

The continuing pursuit of product development and diversification strategies means

that Aquafresh will continue to grow and develop new oral care categories in the future in

response to emerging market needs.

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SOURCES http://www.colgate.co.uk/app/ColgateTotal/UK/faq.cwsp

http://www.ooshop.com/

http://internationalecon.com/Trade/Tch80/T80-5A.php

http://www.aquafreshscienceacademy.com

http://en.wikipedia.org/wiki/Aquafresh

http://www.aquafresh.com/

http://www.bravis.com/en/glaxo_smith_kline_k_k/proj032.html

http://www.gsk.com/products/our-consumer-healthcare-products/aquafresh.html