Transcript The Revival Strategy

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
No. of people weighing quality
more than price
No. of people weighing price
more than quality
Rs. 40 per 200
gm
5
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
No. of consumers
Customers' Preference
19
20
15
10
Herbi
6
other brands
5
0
Sample Size: 25 customers
This is
Herbi’s
market share!
Smilie
Grin
Beam
Herbi
Sales per quarter in yr 2005
14
12
10
8
Herbi
6
4
2
0
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
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.
The Market Overview
•
•
•
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 Challenges
•
No tangible differentiation has been
made in the product, though they are
significant for the customers, assists
facing competition, encourages nonprice 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.
The Challenges
•
•
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 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
simplified message.
presented
with
a
The Mantra…..
•
•
•
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.
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•
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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.
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