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Himalaya Herbal Toothapase
Category & Brand Invovement in Emerging Market
Group ProjectRESHMI RAVEENDRAN
ORAL CARE INDUSTRY
ORAL CARE
CATEGORY
TOOTH
PASTE
TOOTH
BRUSHES
TOOTH
POWDER
MOUTH
WASH
DENTAL
FLOSS
WHITENING
PRODUCTS
FMCG was broadly split into: Household Care, Personal Care and Food & Beverages
FMCG market in India projected to be around US$15-18 billion in 2010, & expected to grow to US$33 billion by 2015
The average Indian consumer spent around 8% of his income on personal care products
Growth of the personal care segment can be attributed to:
Increasing levels of discretionary spending Greater attention to personal hygiene Increase in the no. of new media channels Distribution In 2010, the oral care market in India was
around US$980 million Growth of the toothpaste category was
around 9%
Study Results “THE PERCEPTION OF CONSUMERS REGARDING THE TOOTHPASTE CATEGORY”
68% of the Indian consumers who participated in the survey believed that using the right toothpaste was more important than using the right toothbrush.
Most of them believed that oral care was not as important for personal grooming as hair care or skin care.
28% of the respondents brushed twice daily. 68% of the respondents had never visited a dentist & 87% would not
consider visiting a dentist as a preventive measure. WHO reported that 98% of the Indian population suffered from oral health
problems. Ratio of dentists to patients is just 1 dentist for 10,000 people in urban areas
& 1 for about 0.25 million people in rural areas. Conclusion: Significant scope for marketers to enhance the involvement level
associated with the toothpaste category among consumers.
TOOTHPASTE INDUSTRY : Key Facts
INDUSTRY FACTS
The toothpaste market in India had a very low penetration rate of 60%.
Urban Penetration: 76% Rural Penetration: 40%
Average consumption of toothpaste in rural households was significantly lower than in urban households.
Per capita consumption of toothpaste in grams per year:
India: 115 China: 255 United States: 542
COMPETITION DATA
Key brands in the Indian Oral Care industry: Colgate- Palmolive India & Hindustan Unilever Limited
Colgate was one of the main brands for oral care, with the category contributing to 96% of Colgate- Palmolive India’s annual company sales.
Colgate was the market leader in the toothpaste, toothbrush & toothpowder categories.
It led the toothpaste market with a 52% market share.
Hindustan Unilever was 2nd in the oral care market with a 25% share in the toothpaste category.
HIMALAYA HERBAL HEALTHCARE
One of the key players in the pharmaceutical field for several decades. Product Offerings in three segments Health Supplements, Personal Care Products & Pain Ointments Unique Proposition: The scientific rigor associated with the testing of its
herbal offerings The company launched Ayurveda based Consumer Products to enter
FMCG Market. Target Audience :- Young Urban Professional population to create brand
awareness. In the early 20th Century it was brought under the Himalaya umbrella brand for with various products like soaps, shampoos, face washes, health supplements, baby products, etc.
By 2010, 40% of Himalaya’s turnover was from consumer products.
• It had several exclusive outlets throughout India, & had shop-in-shop counters in modern retail outlets.
• Himalaya did not advertise as much as other FMCG manufacturers, & brand associations were nurtured by Word of Mouth.
• To build market share in the highly competitive personal health care market, it begun to advertise its face wash & toothpaste brands
• Started exporting to several countries
• The brand has a positive perception among consumers
TOOTHPASTE INDUSTRY : Segmentation
Pricing
Economy
Popular
Premium
Product Variants
Paste
Gel
Categorization
Freshness
Herbal
Overall Health
Niche
Involvement level with respect to habits and practices
Freshness Herbal Oral Health
Problem Solving
Total Category
0
20
40
60
80
100
120
Brushing Frequency
Frequency of Brushing Once
Frequency of Brushing Twice
1 2 3 4 50
5
10
15
20
25
30
Did dentist recommend the tooth paste?
Did dentist recomment the tooth paste? Yes
Did dentist recomment the tooth paste? No
no
yes
Freshness Herbal Oral Health
Problem Solving
Total Category
0
2
4
6
8
Did you change your tooth paste on recommendation by
a dentist?
Did you change the toothpaste on Dentist's recommenda-tion? YesDid you change the toothpaste on Dentist's recommenda-tion? No
Freshness
Herbal Oral Health
Problem Solving
Total Category
0
5
10
15
20
Did you change your tooth paste to solve any problem?
Did you change your toothpaste to solve any problem? YesDid you change your toothpaste to solve any problem? Notwice once
no
yes
no
yes
Freshness Herbal Oral Health Problem Solving Total Category0
20
40
60
80
100
120
Do you have any oral health problems?
Did you have any oral health problems? Yes Did you have any oral health problems? Nono yes
Findings regarding Habits and practices through out category
• 58% of respondents brush once in a day
• 78% of all respondents never visit a dentist
• Dentist recommendation: – 72% of all respondents do not take a
toothpaste recommended by dentist– 86% of respondents change their
toothpaste on recommendation by dentist
• 85% of consumers have oral health problems
• 67% of consumers change their toothpaste to solve a problem
Category involvement
Niche Freshness Herbal Overall Oral Care Total Category0
10
20
30
40
50
60
70
Interpretation of findings
• People agree that toothpaste is necessary for them as depicted by highly negative responses to questions such as “tooth paste is useless for me/irrelevant for me/boring for me”,
• But people display more or less a neutral attitude when they consider the functional attributes except for niche segment
• This suggests that toothpaste is a low involvement category with consumers knowing the need of a toothpaste but are not too attached to functional attributes except in the niche category
Components of attitude
• Attitude: Predisposition to behave consistently
in a favorable or an unfavorable way.– Cognitive:
The Knowledge and perceptions that are acquired by combination of direct experience with the attitude object and information from related sources.
– Affective:Consumer’s emotions and
feelings about a particular product or brand.
Significance of attitude components for familiar and unfamiliar brands
• For familiar brands Cognition mediates the impact of positive affect while negative affect has direct impact on brand attitude.
• For unfamiliar brands Cognition plays less role and Affective attitude takes precedence.
Attitude towards category
Freshness Herbal Oral Health Problem Solving Total Category0
10
20
30
40
50
60
70
80
90
100
Category Wise
Cognitive Beliefs Affective Beliefs
Toothpaste
Low Involvement
Variety Seeking Behaviour
Close UP
Dabur Red
Colgate Active Salt
Pepsodent
Marketing Communication by the Competitors
Brand Key Marketing Message Brand Proposition Customer Segment
“Close up”(HUL)
Paas Aao Campaign – “makes one want to kiss”
Freshness ---> Closeness
Young generation mostly College goers, Urban India
“Pepsodent” ( HUL)
“Removes 95% of Germs in just 2 minutes”
Protection + Effectiveness
Family ( Strong inclination towards Children)
“Colgate Dental Cream”
“All round Protection from Decay” / “No.1 Brand Recommended by Dentist”
Trust + Protection Complete Family Protection from Child to Adult
“Colgate Active Salt”
“Kills Germs to make gums Strong & Healthy”
Problem Solving+ Health
Niche Segment- Consumers with dental problems
“Dabur Red Toothpaste”
“Lets Drive Away Dental Problems”
Curative Niche Segment- Consumers with dental problems
Meswak Herbal Meswak for Complete Oral Care
Curative Niche SegmentConsumers with dental problems
Marketing Communication by The Competitors
Resultant attitudes from the brand communication as per research
Closeup (Freshness) Dabur Red (Herbal) Colgate Dental Cream (Oral Health)
Colgate Active Salt(Niche)
0
20
40
60
80
100
120
Brand Wise
Cognitive Beliefs Affective Beliefs
How does category Involvement affect brand attitude?
• Perception that a toothpaste keeps teeth healthy gets a score of 3.5 in Freshness category w/a in the Niche category score is 3.9
• Perception that toothpaste fights cavities scores 3.29 in Herbal where as 4.0 in Niche
• Statement “the person in advertisement reminds me of myself” gets a score 3.23 in Overall Oral Care w/a 3.83 in Niche
Towards low involvement categories people display a neutral attitude where as towards high involvement categories the attitude is quite strong.
How many Consumers expressed consistency between Strength of Cognitive and Strength of Affective Belief Brand choice (Ref- Exibit 4)
Segment Cognitive Belief(+) & Affective Belief (+)
Cognitive Belief(+) & Affective Belief (-)
Cognitive Belief(-) & Affective Belief (+)
Cognitive Belief(-) & Affective Belief (-)
Freshness 44% 20% 16% 20%
Herbal 40% 24% 4% 32%
Overall Oral Care
32%24%
4% 40%
Niche Problem Solving
68%24%
4% 4%
Total46%
23%7% 24%
Cognitive Beliefs Affective Beliefs
Leading Brand Segment
Consumers with Cognitive Belief (+) in line with brand’s communication
Leading Brand Segment
Consumers with Cognitive Belief (+) in line with brand’s communication
Closeup (Freshness)
80%Closeup (Freshness)
60%
Dabur Red(Herbal)
38%Dabur Red(Herbal)
38%
Colgate Dental Cream (Overall Oral Care)
60%Colgate Dental Cream (Overall Oral Care)
20%
Colgate Active Salt(Niche: Problem Solving)
100%Colgate Active Salt(Niche: Problem Solving)
92%
Exhibit 6 (Ref.)
Himalaya
Recommendations to Himalaya
• Altering Consumer Attitude –Key Strategy
• Educate customers of their needs and then propose how Himalaya will match the needs to get into consideration set of customers
• Strong Emphasis of the benefits will help in developing favourable attitude.
• Changing Attitude of Market Leaders Customer
• Influencing the Affective Component will lead to overall attitude towards brand
• Changing Consumer’s basic Motivational Function (eg: Why herbal tooth, make particular need prominent)
• Association the product with an admired group or event
• Resolving Conflicting Attitudes• Changing Consumer beliefs about the
competitor brand Eg: Even after brushing daily you
experience.. Differenciation can be only achieved
by Value perception of customer than the functional utility
Recommendations…
• Need to enter in a new niche / Problem Solving category keeping herbal USP– High avg involvement score : 3.9/5 /
• 64% of total consumers– Increased use of brushing / customer
• Increase of 54%– Higher Consumer Cognitive & Affective Belief (Table 3)
• 92% & 72% respectively (compared to herbal’s 64% &44%)– Low Category Involvement customers – strong cognitive belief
• 89% in niche vs 46% in herbal– High affective belief of 60% in freshness category as compared to
a low 40 % in the herbal category. We can encash on adding a freshness element in the niche segment
• A premium Herbal Toothpaste for the niche category – “Fresh , Natural & Secure”
• Providing freshness and solution to the following problems:-– Tightening & Reducing
swelling / bleeding of gums– Prevention of Tooth Decay &
Tooth Ache– Bad Breath Control
– Link Health of mouth with Health of Body
PositioningTarget :Urban demography concerned towards oral healthcareHimalaya’s Active Herbs Herbal freshness & oral healthcarepremium all natural, healthy, oral solution with a herbal product expertise.Solution to oral health problems with a freshness quotient brand character - safe , reliable & caringAwareness of Brand Himalaya & creation of a favourable attitudeChange overall Brand rating: India/World’s Best Herbal toothpaste recommended by Dentists
Emotional Benefit Closeup
Colgate Fresh Energy Gel Colgate MaxFresh
Anchor White Himalaya Dental Cream Anchor Gel Pepsodent Babool MintFresh Colgate Dental Cream Colgate MaxWhite
Economy Tier Popular Tier Premium Tier
Dabur Red Colgate Cibaca Babool Ajanta Colgate ActiveSalt Colgate Sensitive Dabur Meswak Colgate Total Promise Colgate Herbal Sensodyne
Himalaya
Functional BenefitShould have been here
Safe , reliable & caringAwareness of Brand Himalaya & creation of a favourable attitudeChange overall Brand rating: India/World’s Best Herbal toothpaste recommended by DentistsChange beliefs about Competitor herbal toothpaste eg: Other herbal toothpaste does only…
Proposed Strategies
Thank You Any
Questions??