Creating A Market for

Herbal Toothpaste - Herbi

Big Question

What is the right marketing mix for Herbal Toothpaste – Herbi?

Case Study Methodology

• Sample Enquiry method • 25 Consumers were selected at

random • Administer questionnaire on 25

consumers• Visit a market place, preferably

outside the grocer or a chemist• Interview the seller on the general

selling trend shown by the product in last two years.

Product Details• Year of establishment: 2002• Places of distribution: Delhi and NCR • Price: Rs. 62 per 150 gm. • Target customers: Middle and upper class, of

all ages. • Channel of distribution: The product reaches

through an agent and wholesaler to the retailer.

Analysis of Survey

No. of people aware about Herbi 6

Source of information about Herbi

Newspapers and Magazines

Price of toothpaste expected by customers on an average

Rs. 40 per 200 gm

No. of people weighing quality more than price

5

No. of people weighing price more than quality

20

Analysis of Survey

  10 to 25 yrs 26 to 35 yrs 36-55 yrs

Popularity of the product 0 3 2

       

Price (in Rs) suggested (per 200 gm) 40 45 40

       

Prefer quality at competitive price 8 6 6

       

Prefer quality at any cost 0 0 5

       

Packaging facilitates branding 12 8 5

Graph – Customer Preference

Customers' Preference

6

19

0

5

10

15

20

No

. o

f c

on

su

me

rs

Herbi

other brands

Sample Size: 25 customers

SmilieGrinBeamHerbi

This is Herbi’s market share!

0

2

4

6

8

10

12

14

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Sales per quarter in yr 2005

Herbi

Shows a declining trend in each quarter, it’s a serious issue…

The Market Overview• Competition is quite low in this segment,

having only two companies producing the herbal toothpaste. Moreover, market studies show consumers prefer using conventional methods of dental care such as datun etc. over toothpaste

• The market is currently flooded with toothpaste that are non-herbal (fluoride, medicated etc) and to break the brand loyalty for these toothpastes is challenging.

• Existing market leaders are making huge investment on promoting their products to the targeted customers.

• Firms have also been observed to modify their products to reach to the greater number of audience.

• Firms are pushing their sales through incentives of free gifts with every purchase and “Buy one, get one free” schemes.

The Market Overview

The Challenges

• No tangible differentiation has been made in the product, though they are significant for the customers, assists facing competition, encourages non-price competition.

• The market segmentation for the product is poor. Customer study in each segment seems to be poor.

• The market survey reveals, Herbi has very weak promotional strategy.

• No research on the packaging of the product. • Marketing of the product is not strong enough

to attract the customer.

• The name of the product does not highlight the features of the product.

• Price decided without any research about the economic status of the target consumers.

The Challenges

The Mantra…..• The name of the brand should be

highlighted with prominent fonts and colors to make it significant.

• Research on targeted consumers and plan accordingly Do not repeat a mistake to build a brand by trying to appeal to everyone.

• Herbi should be presented with a simplified message.

• Remove the agents and the middle men. Minimise the channel of distribution to reach consumer. Shorter the channel, lesser the cost and better the control and check on losses.

• Range the product price somewhere between Rs. 40 – 45 per 200 grams to remain competitive.

• Use Advertisements, hoardings and pamphlets as a medium to get closer to your target consumers.

The Mantra…..

• Study shows lesser penetration among young generation. Hence, greater emphasis to target younger generation. • More Sensitive about packaging.• Colorful packaging, increase the font size of the brand

name • Paste three important features of the product on the

package. • Gradually after gaining acceptance, Herbi

can create a brand loyalty through electronic and print media as well.

The Mantra…..

Have Shorter Channel to reach out to Consumers!

http://www.tutor2u.net/business/images/customer_marketing_channels.gif

To determine Right Marketing Mix, We have to•Identify the target customers

•Discover and understand the need and desire of the customer

•Design an appropriate mix of Product, Price, Promotion and Channel

•Test this designed mix with a small group of customers. Reaction of customers will indicate the adjustments in the mix

•After the necessary modifications the mix is adopted and put in to use. It is evaluated from time to time and adapted to the changing environment

Remember, the Mantra to sustain in the Market

•To consider the market changes

•To be vigilant about the competitor’s marketing mix

•To review marketing mix periodically and change it as per the market trend

Thank You