Segmenting, Targeting and Positioning of the toothpaste industry

Three main components of toothpastes: abrasives, fluoride, and detergents (Tooth Club, 2014).

• Fluoride (anti-decay) toothpaste• Desensitizing toothpaste• Anti-calculus toothpaste• Anti-plaque toothpaste• Whitening toothpaste• Herbal and natural toothpastes

Introducing the different types and brands of Toothpastes

Toothpaste Industry

International Market• Gradual increase in penetration and consumption within the

oral care category.• Toothpaste is among the top 10 categories of Fast-Moving

Consumer Goods (2013 Brand Footprint Report)• Toothpaste industry dominated by some major firms such as

Colgate-Palmolive, Unilever, Procter & Gamble and GlaxoSmithKline.

Toothpaste Industry

• Colgate occupies the 1st position among the top 5 oral care brands, followed by Pepsodent (Unilever), Crest (Procter & Gamble), Close-Up and Oral-B.

• Colgate attain the No. 2 position in the global Brand Footprint 2012 ranking of Top 50 Consumer Brands, entering more homes (65%) than Coca-Cola (44%). Year after year, Colgate has succeeded in retaining and attracting new customers, while persuading loyal consumers to continue buying.

Toothpaste IndustryMauritian Market• Influenced by this harsh competition at international level• Increased awareness about oral care and health which explains important

growth of local toothpaste market and other dental products• A very dynamic toothpaste market with several different brand names

available to the consumer all with varying claims.• Variety of toothpaste as wide and as many as are the brand names of

toothpaste: Aquafresh (GlaxoSmithKline), Colgate (Colgate-Palmolive Company), Blendax, Signal (Unilever), Dentifrice (manufactured locally for Winners Supermarket), Close-Up (Unilever) - first gel toothpaste in the world, Pearlie White Dental Care (Top Only as authorized distributor in Mauritius), Sensodyne, Parodontax (GlaxoSmithKline), Crystal Glow, Sanogyl (France), Dabur Herbal, among many others.

• Toothpaste industry: monopolistic competitive market• Toothpaste represents 80% of the local market of Mauritius

for a total population size of approximately 1,2 million.• Market is shared by Colgate-Palmolive, which represents

Colgate and has 45% of the market share while the rest is being played among Aquafresh at 20% and Blendax occupying 14% of the market share. 21 % of the toothpaste market shares are occupied by Signal, Close up, Casino and other make of toothpaste (StudyMode, 2011).

• Innovation is crucial to brands’ performance and increased or sustained companies’ market shares.

• Regular launching of new products with new features, be it whitening toothpaste, mouth fresheners toothpaste or economic toothpaste

• A European brand but manufactured locally by Mauritius Cosmetics Ltd (L’Express, 2008) under license from Blendax Merke, Germany, acquired by Procter & Gamble in 1990.

• The first locally produced toothpaste.• The single largest selling toothpaste brand in Mauritius (DEM

Handbook, 2010).

Blendax

Colgate

• Marketed by Colgate-Palmolive, Colgate is the first toothpaste in a collapsible tube, introduced in 1896

• In Mauritius, the brand has been around for many years

• Popular with consumers and recommended by dentists

• Registered trademark of GlaxoSmithKline; introduced in 1961 as 1st desensitising toothpaste.

• Clinically proven toothpaste with active ingredients to help relieve dentine hypersensitivity

• Well-recognized sensitive toothpaste among dentists around the world: 9 out of 10 dentists (US)

• A global leader in the premium toothpaste category across the toothpaste industry.

• Two main product lines: Sensitivity and acid erosion.• Sensodyne sensitivity products: marketed to counteract teeth

sensitivity caused by exposed dentin.• Sensodyne acid erosion products: marketed to protect enamel from

acid erosion.• Both products come in a variety of flavors and with the option of

whitening.

Sensodyne

The process of dividing a potential market into distinct

subsets of consumers and selecting one or more

segments as a target market to be reached with a

distinct marketing mix.

What is segmentation?Segmentation

Advantages of Segmentation

Based on the different Expectation that customers have about what a product/service can do for them

“It is based on the Attributes (characteristics) of products, as seen by the customers”

Market Segmentation Characteristics

Segmentation of Colgate

Colgate segments its base on Adult & Kids age group

Teens and

Adults

Colgate Max Fresh

With breath strips

Herbal

White

Max Cavity

Protection

Gel

Herbal Propol

is

Kids

2-5

5-88-12

Segmentation of Sensodyne

Sensodyne segments its base on Sensitivity – Dental Care

Age Group

Sensodyne

Sensitivity Age Group

Segmentation of BlendaxBlendax segments its base on

Age GroupProduct Diversification in terms of tooth whitening &

protection

TargetingWhat is targeting?

• It is the second stage of the STP process

• The process of selecting a segment to aim for is called

targeting

• “Market targeting refers to picking a specific group or

small set of groups to which a business will service its

offering.” Kotler

Target Market SelectionI. Single-segment concentration

II. Selective specialization

III. Product specialization

IV. Market specialization

V. Full market coverage

Market Coverage StrategiesThree basic strategic optionsi. Concentrated marketing (single-segment) or also known as

niche marketing concentrates on being the very best within a single tiny segment.

ii. Differentiated marketing (multi-segmented) means concentrating on two or more segments, offering a differentiated marketing mix for each.

iii. Undifferentiated marketing views the market as one group with no individual segments, therefore using a single marketing strategy

Target Market Selection:

Selective Specialization where Colgate has selected a number of

segments, which it have been objectively attracted and made appropriate

Market Coverage Strategies :

Differentiated Marketing where it has concentrated on more segments,

offering a differentiated marketing mix for each

TARGET GROUP

1. ELDER PEOPLEACTIVE SALT

2. KIDS

3. ADULTS

Target Market Selection:

Sensodyne is toothpaste for sensitive teeth concentrate on Single-segment concentration where it has strong knowledge of its target group and its needs.

Market Coverage Strategies : Single-segment marketing where it operates in a niche or may also be referred to as Premium segment, which is small and profitable

Nice Market - toothpaste for sensitive teeth

Sensodyne Repair & Protect toothpaste

Sensodyne Extra Whitening toothpaste

Sensodyne Full Protection Plus Whitening Toothpaste

Sensodyne Tartar Control Plus Whitening Toothpaste

Sensodyne Fresh Impact Toothpaste

Sensodyne Fresh Mint Toothpaste

Sensodyne Cool Gel Toothpaste

Target Market Selection: Blendax also pursue a Selective specialization where it have selected number of segments which are attractive appropriate

Market Coverage Strategies : Blendax also have also concentrated on a Differentiated marketing strategy of concentrating on more segments.

Blendax had also focus on becoming a cheaper retailer of toothpaste than other brands

Target GroupADULTS KIDS

PRODUCT LIFE CYCLE

PRODUCT LIFE CYCLE

• The Growth Stage

Sales

Time

PRODUCT LIFE CYCLE

The Growth Stage

Sales

Time

PositioningWhat is positioning?

• Due to increase awareness about oral health, competition is

very tight and that is why it is important to increase brand

awareness in the mind of consumers.

Choosing the positioning strategy A. COLGATE

Choosing the positioning strategy • B. SENSODYNE

• Sensodyne toothpaste has positioned itself as being the best

choice of toothpaste to fight against teeth sensitivity.

• Acquired competitive advantage by providing superior quality

and provides products that are highly recognized and

recommended by dentists worldwide.

Choosing the positioning strategyC. BLENDAX

• Blendax is manufactured locally.

• Faces a lot of competition from international brands and is trying to

retain its brand image in the minds of consumers.

• Positioning strategy of blendax is to set an affordable price and stay in

line with other brands in the market.

Selecting an overall positioning strategy• COLGATE - More for More strategy and also More for the same

• SENSODYNE - More for More strategy

• Target consumers who give priority to their dental health and do not refrain from buying higher priced products.

• More expensive because of its quality and high performance.

Selecting an overall positioning strategy

Selecting an overall positioning strategy• BLENDAX - Less for Less strategy

• Specialises only in fighting against germs and bacteria.

Positioning in terms of price and quality

Comparing 3 toothpastes- STPColgate Blendax Sensodyne

Segmentation Age group:Teens & AdultsKids: 0-2, 2-5, 5-8, 8-12

Age group:Teens & AdultsKids

Income group:Middle & Upper Class

Dental Health:People with Sensitive teeth

Targeting Selective specialization

Differentiated Marketing

Selective specialization

Differentiated Marketing

Single-segment concentration

Single-segment marketing

Positioning More for more/More for same

Less for Less More for More

Comparing Colgate to others

• With a continued focus on rejuvenation and innovation,

Colgate has managed to hold private label at bay in the

competitive markets and has successfully expanded to

different products in the oral care market.

Comparing Blendax to others

• Locally produced toothpaste

• Cheaper than other brands

• Easily available in retail outlets

• Satisfy different segments like adults both male and female and kids

Comparing Sensodyne to others

• Rank number one toothpaste

• Sensodyne relieves sensitive teeth by building a barrier that blocks the pain of hot and cold and keeps it from coming back

• In treating and preventing dentin hypersensitivity

COLGATE SENSODYNE BLENDAX

STRENGHTS1. Extremely popular

brand and high brand awareness due to advertising.

2. Good performance; Colgate Dental Cream offers all-around cavity protection, even where a toothbrush cannot reach.

Testimonial ads from doctors have worked well to strengthen the brand.

Very well accepted in the market and enjoys the trust of consumers because of its quality.

1. Manufactured locally; hence knows its customers well and what type of products they need.

2. Affordable price for lower income groups of customers.

WEAKNESSESReduction in

advertisement expenditure in order to maintain growth.

1. More expensive than competitors

1. No product innovation.

2. Faces high competition from international brands.

OPPORTUINITES1. Focus on innovation

and new product launches by deploying advanced technologies such as electric toothbrush or attracting packages for kids.

1. The brand can target kids and youth also since they frequently suffer from such dental problems.

2. Create more awareness about sensitive teeth and capture large market.

1. Eco-friendly products

2. May sell directly to customers (door to door selling)

THREATS1. High competition from

competitive brands like Aquafresh and Sensodyne.

1. Not much awareness in the market regarding the effectiveness of the product.

1. Increased cost of raw materials.

QUESTIONS