MARKETING MANAGEMENT

MARKETING PLAN FOR SMILEDENT TOOTHPASTE

SUBMITTED TOPROF. SATISH RAYKAR

SUBMITTED BYGAURAV SUREKA ROLL NO- 37

TABLE OF CONTENTS

EXECUTIVE SUMMARY.

SITUATIONAL ANALYSIS.

MARKETING STRATEGY.

FINANCIAL PROJECTION.

IMPLEMENTATION CONTROL.

SAVLON TOOTHPASTE
Executive summary
The following marketing plan forms the basis for the introduction of an innovative new product by the Savlon Company. The analysis allows us to outline the best strategies to follow for the achievement of the companys strategic goals. smiledent will be the unique toothpaste.. The marketing strategies will enable to reach a market size of an estimated 740 million people (targeted) with a forecasted sales growth prospect of 7.3% over the next 4 years. Success will be reflected by a sizeable capture of market shares within this market, while strategically carrying the company up to the top spot.

INDUSTRY OVERVIEW
Indian oral care industry (including toothpaste and toothpowder) is about Rs. 35 billion. Colgate and HUL contribute around three fourth of the total market. Other major players include Dabur and Anchor group together contributing around 15% of total market COMPANY OVERVIEW Savlon is a brand of first aid and medical products manufactured in the UK by Novartis Consumer Health. The name Savlon usually refers to Savlon antiseptic skin healing cream, a topical antiseptic cream sold in the UK without prescription. The active ingredients in Savlon cream are Cetrimide and Chlorhexidine Gluconate. It is commonly used for treatment of mild scarring, some mild burns, cuts and bruises as well as skin healing treatment for spots (i.e. pimples). Savlon is also a brand of antiseptic liquid marketed by Johnson & Johnson in India. Now it is diversifying its product in toothpaste industry. It is entering into the market with three varieties.

1.Smiledent oral care. 2.Smiledent cool fresh gel 3.Smiledent ultrawhite.

MISSION
"We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper." "We dedicate ourselves to humanity's quest for longer, healthier, happier lives through innovation in consumer and health products".

VISION
Our endeavour would be to provide quality products and bring smiles to our customers.

PRODUCTS PORTFOLIO

SAVLON antiseptic helps heal without hurting. It contains a powerful combination of chlorhexidine gluconate and cetrimide, which together not only kill germs but also prevent their re-growth.

Savlon advanced plaster THE FAMILY PLASTER THAT CAN HEAL FAST A little blood can go a long way, and even a small cut can be distressing for young children. So be ready, with Savlon Advanced Plasters. They contain a special ingredient that can actually control further bleeding and, therefore speed up the start of the healing process. Like all Savlon plasters, Savlon Advanced are hypoallergenic, and because their breathable fabric lets the ideal amount of air and moisture in, they help the wound to heal naturally and protect it from the danger of infection. Savlon antiseptic cream More people choose the Savlon famous blue tube than any other antiseptic cream. Its been a trusted friend in the medicine cabinet for generations, dispensing oodles of there, there whenever and wherever its needed. Soothing Savlon Antiseptic helps prevent infection and aids natural healing in cuts and grazes; insect bites and stings; sore or chapped skin; blisters, burns and spots; even minor sunburn. So whatever the emergency, you can always rely on the original blue tube

Savlon antiseptic wound wash This might sting a bit... How often have you said those words and dreaded whats to come? Well, thankfully, this product could offer a solution.Savlon Antiseptic Wound Wash is a pump-action spray that allows you to wash dirt and grime from cuts, grazes, stings and burns, and protects against infection by cleaning and killing bacteria without touching or aggravating the wound. Because it doesnt sting its ideal if youve got very young children... or even slightly bigger babies who really should be braver than they are! Savlon cleansing wipes At the park, in the playground or away on holiday, accidents can happen. Carry a pack of Savlon Cleansing Wipes with Antiseptic in the car or your handbag and youll always be prepared if you need to cleanse your hands. Individually wrapped, for maximum convenience and hygiene, theyre perfect for cleansing and disinfecting hands on the go in one easy wipe. Savlon Dry Antiseptic Spray is a convenient spray for 'notouch' first aid treatment on the go. Ideal for your sports bag, rucksack or gardening kit, it means you dont have to worry about passing on infection if there's nowhere to wash your hands; one spray forms an instant, protective layer that helps to prevent infection and aids natural healing allowing you to get on with things, instead of licking your wounds, cuts and grazes on the sidelines.

COMPETITIVE ENVIRONMENT

The two largest players in the toothpaste market are Colgate and Hindustan Unilever and they are constantly battling for leadership in this segment. Colgate has a market share of 49 percent and Hindustan Unilever has a market share of 36.5 percent. The two players are more concerned to increase their market share but have not focussed seriously on increasing their market penetration to achieve this. They have both been targeting the urban market more. Both HUL and Colgate have been concentrating their advertising and marketing expenditure towards this segment but despite this the toothpaste market is growing at only a single digit rate of 5 percent per annum, which shows that the urban segment is fairly saturated. Colgate Palmolive is the leader in Indian toothpastes having a market share of 50% in 2009. HUL follows with 28%. Its Close-Up has a market share of 17% and Pepsodent 11%, according to AC Nielsen data. Since 2007-08, analysts said HUL has lost 8-10% market share in oral care. Another player, Dabur, enjoys 10% share through its portfolio of Red Toothpaste, Promise, Meswak and Babool. Recently, GlaxoSmithKline Consumer forayed into the sector by launching Sensodyne (though it was available as an import earlier), a toothpaste brand for sensitive teeth. The segment saw a new entrant the Future Group launched its brand recently. In 2005, P&G acquired The Gillette Company, which gave it the OralB brand. P&G India sells toothbrushes under OralB brand in India, sales of which, Duggad says, are growing at 40% annually. He values the brand at Rs 180 crore. The Indian toothpaste market is currently dominated by Colgate with over 50 per cent market share, followed by the likes of Pepsodent, Close Up, Dabur Red and Babool. While the overall toothpaste market is currently growing at 8 per cent, the dentist recommended 'sensitive toothpaste' segment is estimated to be around Rs 140 crore and growing at around 18 per cent, he added.

Situation analysis

SWOT ANALYSIS
STRENGTHS Well established company in healthcare sector. Formidable entry barrier for entrants. Strong existing distribution channel

WEAKNESSES
Entrance into difficult non core category Market is already facing tough competition with existing players. There is a fear of brand dilution for the company in case of failure. OPPORTUNITY There is a large scope of growth in rural India. Toothpaste consumption in India Very low at 92 grams per household Per month. THREATS Competition is intense Dabur third largest player with brands like Babool, Meswak, Promise. Foreign brands like AQUA-FRESH, ORAL-B, JORDAN, etc are trying to take the course of the market to different dimensions. Competitive analysis:

India's per capita consumption of toothpaste is very low. This is because 74 percent of our population live in rural areas and hence they are not conscious about personal health and hygiene. As the penetration level of this rural segment is at a low of 30 percent, this means that only 200 million of our 740 million rural population uses toothpaste. The penetration levels of the rural toothpaste market is only 30 percent providing a gaping scope for improvement as compared to the urban market penetration of 70 percent. On an all India basis penetration is still low at 35 percent, due to higher population in the rural areas. Market share of toothpaste kings

This data shows that in order to penetrate into the toothpaste market savlon has to target rural population as there is scope for growth and earn substantial market share.

OBJECTIVE
Our objective is to provide our consumers a healthy and safe life with the help of our quality medicated products.

TARGET MARKET
India's per capita consumption of toothpaste is one of the lowest in the world; it currently stands at 70 grams as compared to the global average of 362 grams. This is because 74 percent of our population live in rural areas and are not well versed with personal health and hygiene. As the penetration level of this rural segment is at a low of 30 percent, this means that only 200 million of our 740 million rural populations uses toothpaste. Many other people in India still clean teeth with traditional products like neem twigs, salt, ash, tobacco or other herbal ingredients. Recent studies have indicated dual usage (powder and paste) in 10% of rural households. . In relative terms, penetration of toothpowder is higher in North and toothpaste in South. This could be due to higher education, purchasing power and urbanization in the South.

In the long term however toothpaste players have a tremendous potential to grow in this market. The reasons being that income levels are rising and the population is becoming more aware of personal hygiene. To add to this there is an increase in literacy levels across the country. As media will play an important role hence advertising keeping the rural Indian in mind will provide the much needed impetus for growth to this market. The penetration levels of the rural toothpaste market is only 30 percent providing a gaping scope for improvement as compared to the urban market penetration of 70 percent. On an all India basis penetration is still low at 35 percent, due to higher population in the rural areas. The successful players in this segment will be those companies who will be able to change the mindset of rural India and convince them to change their habits of using local black powder and chewing sticks to toothpaste. They will without doubt emerge to be the winners in the growing toothpaste industry.

MARKETING STRATEGIES SEGMENTATION STRATEGY

Behavioural segmentation: Savlon segmented the market on the basis of behavioural segmentation. As it paid focus on the benefit and usage of the product. It caters the need of that market which requires reliable toothpaste which keeps the mouth fresh as well as germ free. It also satisfies the needs of those customers who prefer medicated products over general items. Demographic segmentation: Savlon also segmented its product on the basis of age. As it launches smiledent whitening toothpaste for strong and germ free teeth which cater the needs of mature and aged consumers. It also caters the needs of youth as it focuses on freshness and whitening of teeth with its product named smiledent ultra fresh gel. It tries to satisfy the needs of those customers who prefers medicated products like medicated soaps and fairness creams. Similarly it launched smiledent oral care.

TARGETING STRATEGY

Market specialization: Indian Healthcare market has emerged as one of the most progressive and largest service sectors in India with an expected GDP spend of 8 per cent by 2012 from 5.5 per cent in 2009. It is believed to be the next big thing after IT and predicted to become a US$ 280 billion industry by 2020," the report said. At present the sector is estimated to be around US$ 40 billion and will grow to US$ 78.6 billion by 2012. The company focuses on healthcare market. Its various products like savlon advanced plaster,savlon antiseptic liquid,savlon antiseptic cream,savlon antiseptic wound wash etc fall into this type of targeting strategy. Even its latest launch into toothpaste market falls into oral health care sector.

POSITIONING STRATEGIES

Attribute strategy: smile dent cool fresh gel toothpaste contains cooling crystals with mint flavour which keeps mouth fresh for whole day. Smile dent oral care consists of clove oil which keeps the gums healthy and teeth strong. Smile dent ultra white toothpaste contains sodium fluoride which is colourless compound and protects teeth against plaques and keeps teeth ultra white. Benefit positioning: smile dent ultra fresh gel toothpaste keeps you fresh for entire day and stops bad breathe. It uses the tag line of laye saanson mein taazgi serves the purpose of positioning. smiledent oral care protects your teeth from germs and keeps your gums healthy.Its punch line also signifies its strategy which is ab kitanoo nahi bachenge

Quality positioning: smiledent toothpaste is a product of well known and trusted brand savlon.It does not compromise in quality.It positioned itself as a

toothpaste which is recommended by dentist and it is approved by Indian Dental Association (IDA).

MARKETING MIX

Product strategy: the company is entering into the market with its three different product of the same segment ie toothpaste market.the compny comes into healthcare industry and it is diversifying into another aspects of the healthcare sector ie. Oral health care with its pproduct which is toothpaste.company observes lots of scope in this market.It launches its variety of toothpaste each one caters need of particular segment of customers. Smiledent oral care: It is a medicated toothpaste which will be easily available in medical stores it satisfy the needs of those people who prefer medicated products Smiledeent cool fresh gel: It is a gel toothpaste which is for those consumers who have the problem of bad breathe.It keeps the breathe fresh. Smile dent ultrawhite:It is for those people who likes white and shining teeth it also protects your teeth from germs and keeps your gums healthy.

Pricing strategy: analysing the pricing strategy of existing players the company will focus on low price strategy. It will also launch its product in small quantity. So that consumers can have a try on it. It will starts from minimum 50 gm weight worth Rs 15.

Brand

Feature

Weight

Price (Rs)

Oral B Colgate Total Gel Ultra Sensation Calciguard

Specially for 100gm children Paste 100gm Gel 100gm whitening Paste 150gm whitening Paste 150gm Paste 100gm Paste Paste+ gel Paste + gel 200gm 150gm 100gm 100gm

55* 35 24.50 39 39 24.50 49.90 45.10 25 33

Pepsodent Germicheck 2 in 1 Aguafresh Close up Gel

Promotion strategy: The company will focus on aggressive advertisement through print media including local and national newspapers, magazines,pamphlates.It will also promote the product through electronic media including TV ads.besides these radio stations also plays a key role in mass awreness about the product since a large section of population in rura; India is deprived of TV ads. Place : As the product serves the purpose of oral hygiene and it forms one of the daily needs of consumer. it will be sold throughout the country. It is an undifferentiated product. However one of the product falls under the category of medicated products. so it will be easily available in local medical store as well as general store.

Financials
This section will offer a financial overview of Contemporary Ti Design as it related to the marketing activities. Ti will address break-even analysis, sales forecasts, expense forecasts, and how those link to the marketing strategy. Sales Forecast

The first month will be spent setting up the work quarters and building inventory. There will be no sales. The second month will be spent with the advertising agencies and travelling visiting rural areas and meeting distributors. From month two hiring of sales team for shop to shop displaying of product and marketing it in grassroots level will start. After that sales activity will begin. From month three on sales will start to increase incrementally. Month eight will mark the time when Savlon co will hire a sales representative to do the travelling to set up distributors and attend exhibitions. Month eight should mark a larger increase in sales.

Sales iRRRRs.

Fig. Sales Forecast, this figure shows the sales for the first year. The 1 two months the sale will be negligible and hence its not shown.
st

Expense Forecast

Marketing expenses are to be budgeted accordingly: Raw materials: They should be bought from the authentic sources as the quality should be checked and at low cost while a percentage from profit given to the provider. From the initial month itself the advertisements in News Paper, TV, and Radios along with a marketing campaign in rural areas will start. The machinery required for making toothpaste will have a large setup as a huge amount will be involved.

Implementation Control
Controls The purpose of Smiledent marketing plan is to serve as a guide for the Organization. The following areas will be monitored to gauge performance: Revenue: monthly and annual. Expense: monthly and annual. Repeat business. Customer satisfaction. Word of mouth referrals

Implementation
The policies and standards in smiledent is strictly implemented and that is why is it having a good hold in the Indian toothpaste market.

Policies1) Looking at the environment concerns pollution, effect of green house gases, salvon have made a policy of effective packaging whoever it should be ecofriendly. 2) C.S.R- Children in primary schools receive instructions in dental care from members of the dental profession nominated by the Indian Dental association. Education is imparted with the aid of audio-visuals and printed literature created by the company. Free dental health care packs, including samples, are also distributed by the company to encourage good oral hygiene.

3) Target for future- To attain a market 12% in the end of 1st financial year.

CONCLUSION

The toothpaste industry is going to be more competitive in the near future. The profit margin is going down over the yearend going to be continuing for the future also. So the main mantra for the companies to be successful is to satisfy theconsumers and develop brand image and brand loyalty amongst them. So it has become very necessary for the consumers to understand the Indian consumers very well. So in the future the companies who come up with new products at competitive prices and with good quality are going to the successful one. Promotional activities are also going to play an important role that should to be for both retailers and consumers. So we are going to see a market which is going to heat up in the near future where smile dent will fight mainly with two major players Colgate and HUL.