Denta vs Signal

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Executive Summery
Denta is preparing to launch a new toothbrush to the market, Denta Premium, in a
mature Market. We can effectively compete with market leader because our product
is a technical innovation. Denta Premium is a unique brush with 3 different lengths
and orientations.
We are targeting specific segments in the consumer market taking the advantage of
growing concern of plaque removing efficiency and reducing gum decease.
The primary marketing objective is to achieve 5% growth in the market share by
2015 which is 41% of the total toothbrush market of Sri Lanka and primary financial
objective is to Rs 85 Mn. Net profit at the end of 2015
Introduction
The ‘toothbrush is the most important item used in oral health is concerned. A
toothbrush consisting of colorful bristles in an eye catching design with a handle to
match and in varied sizes is what we see in the market today. It is necessary to
understand concept behind the invention of the toothbrush.
Pieces of stick, little bones of animals or perhaps a cleaned feather of a bird were
among a few things used by people in the early days to clean their teeth, prior to the
invention of a toothbrush.
The first ever toothbrush was reportedly used by the Chinese. Although the first
toothbrush was invented by “Usakkaspa Fassi”who was residing in England during
mid nineteenth century and The United States of America who obtained the Patent
for a toothbrush in the year 1851. The use of toothbrush thereafter was made a
routine habit for the American soldiers during the World War I which soon became a
habit of their families too and thus began the use of a ‘toothbrush ‘ by many.
The toothbrush was further developed and an electronic toothbrush was produced in
Switzerland in the year 1939. This electronic toothbrush was modified in 1959 by
the American Dental Society and introduced to the market in the year 1960.
Although being aware of its existence in the developed countries, usage of the
electronic toothbrush was not widespread.
Knowledge on proper use of a toothbrush is as important. An incorrectly used
toothbrush could very well cause pain to the gum and enamel. It is best that
brushing is continued for at least two minutes but vigorous brushing should be
avoided. Brushing of teeth at least twice after meals is a very good habit and it is
very important to ensure that a toothbrush is never shared by another. Exposing to
air and sunlight the toothbrush once used, helps prevent building up of bacteria.
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Changing over to a new toothbrush should necessarily be when the bristles of the
toothbrush show signs of flowering since the most important part of a toothbrush are
the bristles.
Situation Analysis
Denta is a household brand name in oral care which was introduced to Sri Lanka in
1994 by the well-known conglomerate Darley Butler. This created major impact on
toothbrush market in Sri Lanka which was controlled by multinational brands and
imported brands
During the past two decades Denta has become a trend setter in oral care industry.
The major turnaround of the industry became after the introduction of Denta comfort
toothbrush into the market in 2010. Denta comfort was 1st ever toothbrush with
DuPont Tynex “Anti- Bacterial bristles”, Zigzag shape and rubber grip.( Before the
introduction, Denta market share was 24%)
By the end of 2013, Denta has been able to grab 36% market share in the total
toothbrush market.
Total toothbrush market as at December – 2013 Volume - 31.66 Mn. and Rs
1,223.19 Mn in value.
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3%
11%
Market Shares
Signal
Denta
50%
36%
Clogard
Others
Source; Internal Data
(Brand Manager)
Sales Values
800,00
720,59
700,00
631,75
600,00
598,75
513,74
500,00
433,20
400,00
397,76
392,16
300,00
237,60
232,20
200,00
146,64
100,00
0,00
99,32
58,05
22,00
2009
34,21
2010
Signal
104,78
125,75
78,78
22,39
2011
Denta
33,09
2012
Clogard
32,49
2013
2014
Others
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Sales Volumes1
20,00
19,01
18,06
18,00
16,31
16,00
14,00
15,83
14,57
12,00
11,40
10,32
10,00
8,00
6,00
7,92
5,64
4,00
2,00
7,74
3,48
2,35
0,94
1,27
0,00
2009
2010
Signal
2,76
2,90
0,83
0,97
2011
Denta
2012
Clogard
3,48
0,95
2013
2014
Others
When we evaluate the current KPI’s of denta, it is evident that the market share and
net profit is increased on yearly basis. But the Sales growth shows an inconsistency.
This is a key marketing issue faced by Denta.
When we compare the sales and volumes of the toothbrush industry in SriLanka, it is
evident that Denta and Clogard market has been increased significantly by
converting the Signal users in to their Brands.
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Key Performance Indicators
Denta
2010
2011
2012
2013
Revenue (Rs. Mn)
238
232
392
433
Sales Growth (%)
62.03
2.27
68.89
10.47
Sales Growth (Vol %)
40.43
4.72
33.33
12.75
Gross Profit (Rs. Mn)
52
74
125
139
Net Profit (Rs. Mn)
16.6
19
31
43
Total Market Share (%)
25
28
32
36
Source: Marketing Manager Denta
Marketing Mix
Product
•
•

Denta
Zig Zag
Denta
Comfort
Denta
Kid
Price

Place
Rs.45

Promotion
General
Trade Retail Shops

Rs.50

Modern
Trade

Rs.35

Chemists

Advertising
•
Sponsorships

Packaging
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Segmentation
Target
Segmentation
3-12
Denta
Age Group
12 - 40
Age Group
Above 40
S1
Denta Kid
S2
Denta
Comfort
S3
Denta Zig Zag
Age Group
Positioning map
High Overall Efficiency
Affordable
Highly Innovative
High Specific Efficiency
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When we compare the Signal brand with Denta and Clogard, it is highly innovative
than the other competitors as they have larger pool of resources backed by parent
company.
Denta is a more generic brand which is positioned as a good cleaning instrument
which is perfectly matching the consumer need before the millennium.
Expectations of the Market
Toothbrush market had different value propositions over the last two decades.
Nowadays consumers are more willing to choose toothbrushes based on the
benefits offered by the toothbrush.
Most of the consumers are looking for the benefits such as Cavity prevention,
Healthier gums and young generation is ready to pay for more superior toothbrush
other than the generic model.
This has created a new market opportunity for premium range oral care products.
Market of the Toothbrush
Location
The oral health care market is spread all over the Sri Lanka mainly targeting small
grocery, Pharmacy, and Supermarket chains.
The toothbrush market in the past had few types of generic toothbrushes, while
today's market carries many various types of toothbrushes. This may have been due
to lack of consumer concerns with what type of toothbrush they desired and what
functionality is desired for individual capabilities.
Purchasing characteristics
Many toothbrush purchases are unanticipated, “with consumers purchasing
toothbrushes once every 6 months. Forty-eight percent of consumers claimed to
change their brushes at least every three months.
the most common trigger to purchase a new brush for 70% of them when their
toothbrush bristles became visibly worn. Eleven percent decided to switch to a new
brush after seeing their dentists, and only 3% admitted to purchasing on impulse.
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Buying behavior patterns
Many consumers base a lot of their purchase decisions on how comfortable a
toothbrush feels in their mouths, whether the bristles are soft enough, whether the
head shape suits their mouth size, or whether the toothbrush is flexible enough.
They also base their purchases around the ability of the toothbrush to remove food
particles; plaque removal and gum stimulation.
When it comes time to purchase a toothbrush, there are three different consumer
groups. These groups include



Therapeutic users
cosmetic users
uninvolved users
Therapeutic brushers are concerned with oral care problems. They brush to prevent
disease or other oral health risks, and “search out functionally effective products”
Cosmetic brushers are concerned with bad breath and their appearance, and
“search for products that effectively deliver cosmetic benefits.
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S
•
•
•
•
•
•
•
W
•
The goodwill that the Darley Butler has
developed with the consumer
A computerized field sales operational
•
system
Local manufacturing facility for low cost
productions.
•
The strong distribution network of 150
SRs and 60 ware houses only for Denta.
Lower promotional spending capacity.
Denta 43.9 Mn vs. Signal 102.48 Mn in
2013
Signal and Clogard have toothpaste
co-branding which supports their
market share
No innovations recently as Denta
comfort introduced in2010
High cost for imported toothbrushes
demotivates new entrants
• 25 % tax rate
• Rs. 75/- as new surcharge
per unit
To explore more segments specially
on youth and health conscious
To come up with a New Product
Other players also moving to
manufacturing handle locally
and cost benefits.
Toothbrush raw material costs
are going up due to global oil
prices since they byproducts
of petroleum.
O
•
•
T
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Strengths, Weaknesses, Opportunities and Threat Analysis
Strengths are internal capabilities that can help the company reach its objectives.

Darley Butler and company Ltd is in the consumer durable market since 1848
and they have developed a good market reputation for quality and social
responsible marketing culture.

Denta has fully computerized field sales operation system which is very
handy to the smooth distribution and up to date sales information for quality
sales decisions.

Denta has a strong distribution network of 150 sales representatives and 60
warehouses which is exclusively used for Denta operations.

Local manufacturing facility gives the cost benefit over the competitors as the
imported finished good (Toothbrush) attracts high import tax.
Weaknesses are internal elements that may interfere with the company’s ability to
achieve its objectives.

Denta is having a lower promotional spending capacity than the market
leader. (Denta 43.9 MN Vs Signal 102.48 MN in 2013). Regular promotional
activities register the brand name in the mind of the consumer where he use
this to purchase and repurchase.

Denta competitors are having their own toothpaste brands to promote with cobranding. This will have a negative impact on modern trade where bundling
offer are more frequent in the current context.

Denta has innovated and introduced the comfort brush in2010 and it was the
major factor behind the market growth of Denta. But after 2010, Denta has not
introduced any new product where competitors are frequently doing.
Opportunities are areas of buyer need or potential interest in which the company
might perform profitably.

Most of the consumers are looking for the benefits such as Cavity prevention,
Healthier gums is creating new product desire in toothbrush industry.
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
Young generation is ready to pay for more superior toothbrush other than the
generic model. They are the people who trial the innovative products in the
market.

High tax on imported toothbrushes creates a good market opportunity as most
of the premium toothbrushes are imported brands. A imported premium
toothbrush is sold at Rs 150 and more.
Threats are challenges posed by an unfavorable trend or development that could
lead to lower sales and profits.

Because of the cost benefit, other players of toothbrush market are also
investing on local manufacturing plants. Better technology is now available
at a lower cost than earlier.

Toothbrushes raw material costs are going up due to global oil prices since
main raw material are byproducts of petroleum.
PESTLE Analysis
Political

UPFA government who is having the 2/3 majority in the Parliament with the
Executive President, is maintaining a stable political environment in the
country.

The current tax policy on imported toothbrushes is giving an edge over others
who are manufacturing toothbrushes in the country.

Government regulations are well implemented and the local manufactures are
well look after by the relevant regulatory authorities.
Economic

Sri Lanka has achieved an Economic growth rate of 7.2% during the 2013. It
is a greater achievement and paves the way to Sri Lankan companies to go
forward with their investment plans.

Inflation rate of the country has been maintained at 6.9 % on annual average
during 2013, which is a good sign for the consumer market. Increasing
inflation rate may reduce the purchasing power of the consumer where market
growth will be crippled.
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
During 2013, interest rates came down significantly. Bank lending rates were
bringing down to single digit to encourage new investments.
Social

Modern day consumers are looking for the benefits and social
irresponsibleness of the manufacturer such as Health, Environmental
protection, child labor, testing on animals etc. This is creating new product
development in order to satisfy the consumer needs.

Young generation is well conversant with the technological developments
happening in the world. Increased usage of social media is making awareness
about the existing product well as new product development within shortest
period.
Environment

The manufacturing plants have to be maintained strictly with the guide lines
laid down by the Central Environmental Authority. Frequent maintenance
checks have to be implemented to control hazards such as Carbon Dioxide
emission.

Recycling and energy saving will reduce the impact on the environment and
same time it will reduce the manufacturing cost of the plant.
Legal

Operating laws and regulations of Sri Lanka is having a greater impact on any
industry operating in the country.
Technology

Technology is an element that changes every day in modern world. Today’s
technology will be outdated tomorrow.

The major contributors for technology change are increased Research and
Development activities, appetite for low cost operations and development in
Information Communication Technology
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Unmet Consumer need on Oral Care benefits
Modern day consumers expect additional benefits and functionalities from a
toothbrush other than the whitening and cleaning. Though the brushing of teeth is a
daily routine on personal hygiene, there are other components of expectations of the
consumers.

Consumers expect that toothbrush removes up to 99% of plaque developed in
hard-to-reach areas.

Consumers expect that toothbrush can help in improving gum health.

Consumers expect that toothbrush will provide up to maximum better cleaning
along the gum line.

Consumers expect that toothbrush will remove surface stains and polishes
teeth

Consumers expect that toothbrush will reduce dour causing germs from the

tongue in order to be pleasant.
Consumers expect that toothbrush will massage gums to protect them and not
to be infected or wound in the process of brushing.

Consumers expect that toothbrush will work gently on enamel and gums and
keep them fresh as long as possible.
In the current market scenario there are three major Brands available in the
toothbrush market.
1. Signal with 50% market share marketed by Unilever.
2. Denta with 36% market share marketed by Darley Butler.
3. Clogard with 11% market share marketed by Heamas.
When we analyze the sales values and volumes of the toothbrush market, there is a
notable growth in the others category. This category is mostly represented by
expensive brands such as Oral-B, Colgate Palmolive, Crest, Gum and reach. These
toothbrushes are more on to the innovation and high in specific efficiency.
Expensive brands are widely available in the modern trade and less popular in retail
trade. These toothbrushes are and mostly satisfying the extended unmet need of
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consumers. But the majority of the consumers are not able to purchase these as the
prices are well over Rs. 450.
Entering in to this market segment by innovating a new product which is similar in
functionality with the imported brands such as Oral-B and explore into this market by
giving a cost benefit to the consumers. (Imitative Innovation)
This will be the most suitable solution for the key marketing issues faced by Denta
tooth brush.
Why 3 out of 4 New Products Fail

Over estimation of market size

False claims through research

Product design problems/ Performance

Product incorrectly positioned, Priced or Promoted

High cost of Product development

Competitive actions

No access to the market

Economy – Bad timing
Key Marketing Issues

Denta is the second largest player in the toothbrush market in terms of Sales
Value, Sales Volume and Market share. But the growth rate of the third player
is higher than the Denta. If the trend continues, Clogard will catch the market
and create a problem.

All the major toothbrushes are priced similarly. Consumers do not consider
the price as all the competing brands are priced at same.
Denta
Comfort
Rs 45
Signal
Expert
Rs 50
Clogard
Smart
Rs 45
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
Denta has innovated and introduced the comfort brush in2010 and it was the
major factor behind the market growth of Denta. But after 2010, Denta has not
introduced any new product where competitors are frequently doing.

Denta is now reached to the maturity stage of product life cycle. Unavailability
of new product will drive the Denta brand to the declining stage.
Product Life Cycle ( PLC )
* Current Denta position in PLC ( Denta Comfort )
Sales
* Future Denta position should be
in PLC ( with Denta Premium )
Introduction stage
Time
Growth stage
Maturity stage
Decline stage
Reposition for new markets
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Product Life Cycle
Denta has currently reached the maturity stage of its PLC. When a brand is reaching
the maturity stage, the sales volumes do come dawn and therefore, decision to
reposition the current brand and also give a birth to an innovated product to start its
new life cycle at the introductory stage.
As a result of this effect, Denta is launching a new toothbrush “Denta Premium” to
the market which;
The Denta Premium toothbrush is a technical innovation. A toothbrush with bristles
of three different lengths and orientations.
The Denta Premium toothbrush is more effective in reducing gum disease and
greater cavity prevention
Therefore, the Brand should be intensely advertised (ATL) with consumer
promotional activities and publicity. Once the Denta Premium has launch
successfully in the market, advertising can be diverted to the whole product range of
Denta toothbrushes.
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Marketing Objectives
To Grow Market
Share by 5%
st
o 1 year - 2%
nd
o 2
year - 3%
To Grow Sales
From 433 Mn
To 562 Mn by
2015
To achieve a
positive Net
Profit of 84.3Mn
by 2015
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Proposed Segmentation Targeting and Positioning
All marketing strategies start with Segmentation, Targeting, and Positioning.
Denta’s strategy is based on a positioning of product diffrenciation.Our primary
consumer target for Premium toothbrush is middle to upper income professionals
who are looking for good oral health and hygiene conditions.
Secondary consumer target is young generation (high school and university
students) who are looking for superior product other than the generic toothbrush.
Positioning identifies the brand, benefits, points of difference and parity for the
product.
Using product differentiation, we are positioning the Denta Premium toothbrush as a
technical innovation, with unique brush with bristles of three different length and
orientations.
Marketing Strategies
Product

The Denta Premium toothbrush is a technical innovation. A toothbrush with
bristles of three different lengths and orientations.

The Denta Premium toothbrush is more effective in reducing gum disease and
greater cavity prevention
Price

The Premium toothbrush is priced at Rs 80 which is 60% higher than the
Denta comfort toothbrush under the niche positioning strategy.

Greater trade discount is given to distribution partners. This will give the
opportunity to participate in trade offers.
Eg. Cargill’s discount product of the day
Promotion

Aggressive advertising campaigns arranged to demonstrate the features of
the Denta Premium toothbrush on selected media.

Through modern trade, increased financial incentives are arranged with the
existing loyalty programmes. Eg. Nexus , Arpico privilege
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
Through professional channels by making sponsorships for Dentist
Association’s member programmes and this will create the awareness among
the consumers who visit Dentist regularly.

Advertising will appear on a pulsing basis to maintain brand awareness of
Denta and communicate various differentiation messages of Dental Premium
toothbrush.
Place

Our channels strategy is to use selective distribution, marketing Denta
Premium toothbrush through well known supper market chances, reputed
drug stores and prominent on line retailers.

The Denta premium toothbrush is only introduced to modern trade and
leading drug stores only. The premium toothbrush will not be distributed
among retail trade as to protect the brand supremacy among the consumers.
General Marking Strategy

Niche Positioning Strategy
The main focus of niche positioning would be placed on consumers who are
concerned about cavity reduction and prevention of gum diseases. There
would be many positive benefits to the company if Denta Premium toothbrush
is to position as a niche product and Denta would be able to charge premium
price.

Product Differentiation Strategy
By differentiating a product, it creates a difference that sets certain products
apart from other products, and also targets certain market segments.
Denta will need product differentiation strategy that will make the Premium
toothbrush unique from all other toothbrushes already available in the market.
Denta will also need a strategy to cater the upper market segments.
By coming up with this strategy, it in return will increase profits and market
share.

Price/Quality Differentiation Strategy
Our main focus is on the need of the consumers. We want to deliver a product
which is a dream product consumer which is now covered imported brands
and deliver it to the target consumer at reduced price.
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Denta Premium toothbrush will be priced over and above the existing
toothbrushes and this will be less in price when compared to imported
toothbrush.

Mission Marketing Strategy
Dent’s mission strategy is to be successful in the toothbrush industry. They
will work harder to gain competitive advantage over Signal and Clogard ,
while producing a profit and satisfying the unmet needs and wants of the
consumers.
Product Differentiation Techniques

Size, shape or physical structure

Denta Soft, Medium, Hard

Supplement basic functions

Plastic handle

Individual Vs Mass

Denta caters to mass market

Level at which the products
primary characteristics operate

Reaches the edge and cleaning

Products operating life period

Toothbrush can be used even
more than three months
Reliability

Probability that they will not
malfunction or fails
Reparability

The ease of fixing a product when
it malfunction or fail
Style

Products look and feel to the
buyer.
Product form
Features
Customization
Performance
Durability
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Marketing Research

Marketing Research is the gathering and analysis of data relating to market
places or customers. (Definition – CIM UK )

Marketing research determine the overall acceptance of the product and its
key competitor benchmark products

Marketing research will measure the performance of the product on the core
functional product quality properties with its key competitors

Marketing research of Denta Premium toothbrush should be mainly focused
on the following characteristics.
1. Should be Descriptive
2. Should evaluate the Brand and its marketing performance
3. Should explain the details and justified
4. Should predict with a low margin of error
5. Must aid in decision making
6. High ethical standards
Sources of External Information
Market Intelligence

Marketing research

Competitors and there practices

Industry policies

Pricing strategies

Potential sales growth areas

Mergers and Acquisitions
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
New Product Development
Process

New technology changes

Cost implications for production

Mergers, Joint Ventures and
Acquisitions

Implications for the organization
Intelligence on broader issues

Government actions affecting the
industry
Other Intelligence

Suppliers and raw materials

Availability of continues supply of
goods

Resources, People and
Equipment
Technical Intelligence
Acquisition Intelligence
Marketing Budget
Rs Mn
Budgeted Forecast
2014
2015
Revenue
489.6
562.4
Cost of Production
318.5
365.6
Promotions
45
63
CSR Activities
5
7
Net Profit
53.7
84.3
Net Profit %
11%
15%
Market Share
38%
41%
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Controls
Controls are being established to cover implementation and organization of our
marketing activities.
We are planning tight measures to closely monitor quality and customer satisfaction.
This will enable us to respond market signals very swiftly and making it a learning
curve as if it is problem related to the Denta product.
Early warning signals of deviations from the laid down procedure will be closely
monitored in the weekly functional head meetings and monthly staff meetings.
Mr Amila Premadasa , Denta marketing manager will hold the overall responsibility
for all the Brand’s marketing activities.
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Recommendations & Conclusion
Increase the
visibility of Point
of Sales
Introduce sales
promotion
targeted on
Modern trade
Introduce a Denta
Premium Tooth
brush to target niche
market segment
Use Dentists as
Brand ambassadors
to recommend
Denta
Sponsorship /CSR
activities such as
free dental clinics in
Universities
th and east regions
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Reference List
 AC Nielson data collected trough, Brand Manager Denta.
 Amith, S (2014) ICBT
 Central Bank of Sri Lanka Annual report 2013
 Kotler, P (2012), Marketing Management ,14th edn , Pearson Education Ltd



Ladler, Nathalie, ( 1993) “Colgate Palmolive Company; Precision Toothbrush”
Harvard Business School
www.darleybutler.com
UK Essays. November 2013. Marketing Plan of Close up Toothbrush.
Available from: http://www.ukessays.com/essays/marketing/marketing-planof-close-up-toothbrush. [Accessed 31 August 2014].
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