DELIVERING CONSUMER CLARITY SAY IT WITH A SMILE€¦ · DELIVERING CONSUMER CLARITY WHAT IT TAKES TO SUCCEED IN THE GLOBAL ORAL HYGIENE MARKET • Study conducted on 191 innovations

1Copyright © 2014 The Nielsen Company

F E AT U R E D I N S I G H T S

S AY I T W I T H A S M I L E

DELIVERING CONSUMER CLARITY

WHAT IT TAKES TO SUCCEED IN THE GLOBAL ORAL HYGIENE MARKET

• Study conducted on 191 innovations spanning pricepoints in 20 developing and developed countries todrawupablueprintforsuccessinoralhygiene.

• Results show that the overall base success rate fortoothpasteconceptsgloballyis50%.

• Propositionsaddressingmothers,highlightingessentialbenefits, demonstrating strong reason to believe andshowing family and product visuals yield the highestpotentialsuccessrates.

FACTS TO CHEW ON

Oral hygiene, which primarily comprises toothpastes, toothbrushes

and mouthwashes, is one of the categories with the highest reach in the

personal care sector. And within oral hygiene, the toothpaste category

is the largest and fastest growing, with a share of more than 55% of

consumers around the world. Compared to the global oral hygiene

market, which is expected to grow at 3% compounded annual growth

rate (CAGR) in the next three to four years, India’s market is expected

to grow at 14% CAGR. This represents a huge opportunity for players

in India’s toothpaste segment, which accounts for over 70% of the oral

hygiene category.

Trying to capitalise on this lucrative market, brands launch and test a

large number of new and innovative concepts every year. However, the

global overall base success rate* for toothpastes is just 50%.

* Based on Nielsen Innovation Practice (formerly BASES) database of ‘Factors for Success.’ In this context, ‘success’ is defined as any new launch which has a growing or stable distribution for two consecutive years from the date of product launch.

2 FEATURED INSIGHTS | WINNING IN THE GLOBAL ORAL HYGIENE MARKET

Success rates for new concepts differ by markets and pricing.

Developing markets display a higher success rate than their developed

counterparts, which is not surprising since it is more difficult to

achieve break through success in a more mature market. Meanwhile,

economically priced products show a greater chance of succeeding

than premium.

MARKETS(Total 191 concepts)

52%

48%

DEVELOPING MARKETS

DEVELOPED MARKETS

PRICING(Total 191 concepts)

60%

40%

PREMIUM

PARITY

Source: Nielsen

Source: Nielsen

191 CONCEPTS

SUCCESSFUL

UNSUCCESSFUL

SEGMENTS TOTAL CONCEPTS % SUCCESSFUL

Developing Markets

Parity Initiatives

Developed Markets

Premium Initiatives

100

77

60%

60%

91

114%

38%

43%

50%

50%

Developing Markets- Brazil, China, Costa Rica, India, Indonesia, Mexico, Nigeria, Pakistan, Russian Federation, Sri Lanka, Vietnam

Developed Markets- France, Germany, Italy, Malaysia, Saudi Arabia, South Africa, Taiwan, U.K., U.S.

To help companies better understand the oral hygiene market globally,

Nielsen’s Innovation Practice compiled a list of 191 new toothpaste

concepts tested globally between July 2010 and June 2013 across 20

markets and spanning a wide price range. The study was carried out to

identify and highlight communication elements that occur more often

among successful innovations.


Source: Nielsen

WHAT MAKES FOR A WINNING PROPOSITION?

We’ve found that the success or failure of new concepts can largely be

attributed to four critical factors that make or break the perception of a

new concept in the eyes of consumers. These include:

EMOTIONAL OR FUNCTIONAL - MARKET SPECIFIC TRENDS

THE WINNING PROPOSITION

*Base Success Rate: % of successful initiatives out of the total initiatives tested which have either emotional or functional proposition and for parity and premium initiatives

CATEGORIES Number of

Concepts

%

Successful

Developing Markets 94 62%

Emotional 28 54%

Functional 66 65%

Developed Markets 84 40%

Emotional 19 53%

Functional 65 37%


Concepts

%

Successful

Parity Initiatives 73 62%

Emotional 11 45%

Functional 62 65%

Premium Initiatives 105 45%

Emotional 36 56%

Functional 69 39%

BaseSuccessRate

BaseSuccessRate

BaseSuccessRate

BaseSuccessRate

C O N T E X T SETTING

SETTING THE RIGHT CONTEXT

Based on our research, most successful concepts use either an

emotional proposition like confidence or popularity or a functional one

like protection or oral health and hygiene. Contrary to popular belief

that functional promises to work better with consumers, the numbers

tell a different story. Our study shows that emotional and functional

propositions have equal rates of success when it comes to oral hygiene.

Of all the concepts tested, 50% of concepts with functional propositions

saw success and the exact same percentage of concepts with emotional

propositions proved successful.

While emotional and functional propositions work equally well overall,

differences emerge at a market level. Our observation is that functional

propositions work better in developing markets and emotional ones saw

greater success in developed markets. Similarly, functional propositions

work better with parity-priced initiatives whereas emotional propositions

works in tandem with premium initiatives.

BENEFITSREASONS TO BELIEVE (RTB)

VISUALS


While addressing mothers may contribute to success, the content or

message remains equally important. In our study, propositions that

addressed mothers with a message inducing fear or highlighting a

problem, such as “Do you know that poor eating habits can hasten

cavity formation in children?,” had a high success rate of 71%.

When propositions addressed mothers and focused on a need or

desire, however, the success rate fell to 50%. Also, mother-oriented

propositions when framed as questions, seem to substantially increase

chances of success.

Concepts that talk directly to mothers had a higher level of success

as compared to the rest. Of the total initiatives that have insights

addressing mothers, 63% proved successful. However, talking ‘to her’

or talking ‘as her’ did not seem to make a difference in overall success.

Comparatively, only 46% of insights addressing individuals have gone

on to be successful.

IN TERMS OF SETTING THE CONTEXT, EMOTIONAL AND FUNCTIONAL PROPOSITIONS WORK EQUALLY WELL.

WHOM SHOULD I TALK TO?

BaseSuccessRate

*Base Success Rate: % of successful initiatives out of the total initiatives which have insights addressing either individuals or mothers

Source: Nielsen

PROPOSITIONS THAT TALK DIRECTLY TO MOTHERS HAVE A HIGHER SUCCESS RATE AS COMPARED TO INSIGHTS ADDRESSING INDIVIDUALS.


Concepts

%

Successful

Total Concepts 183 51%

Addressing individuals

134 46%

Mother oriented insight 49 63%



Concepts

%

Successful


Insights addressing mothers and expressing problem/ inducing fear

21 71%

Insights addressing mothers and expressing need/ desire

10 50%

MOTHER ORIENTED INSIGHTS

BaseSuccessRate

*Base Success Rate: % of successful initiatives out of the total initiatives which have insights addressing mothers and are either expressing problem/inducing fear or expressing need/desire

Source: Nielsen

INSIGHTS DIRECTED TOWARD MOTHERS EXPRESSING A PROBLEM OR INDUCING FEAR HAVE A SUBSTANTIALLY HIGHER SUCCESS RATE COMPARED WITH THOSE EMPHASIZING A NEED OR DESIRE.

BENEFITS THAT TICK

Consumers have come to expect some essential benefits from oral

hygiene products, like cleaning, germ killing, cavity protection,

strengthening, etc. Then, there are advanced benefits like gum care,

sensitivity, whitening, etc. Concepts with essential care benefits seem to

have a higher rate of success than those with advanced care. However,

there are some caveats.

• Essential care benefits that are priced at a premium do not seem to

work well in the market.

• We also see that advanced care benefits work better if combined with

essential care benefits, especially when designed for developing

markets and premium initiatives.

• Premium propositions have to work harder to succeed, irrespective

of market characteristics.


ESSENTIAL VS ADVANCED BENEFITS

SHOULD WE COMBINE ESSENTIAL AND ADVANCED CARE BENEFITS FOR BETTER SUCCESS?

Source: Nielsen

However, benefits aren’t the only consideration; frequency also seems

to have a bearing on success. Concepts that focus on a single benefit

fare better than those with multiple benefits which may distract the

consumer. And, the single benefit that has seen the most success is

cavity protection, perhaps because it is a visible manifestation of poor

oral hygiene and can be quite painful.

*Base Success Rate- % of successful initiatives out of the total initiatives which have either essential care or advance care benefits

BaseSuccessRate

BaseSuccessRate

TOTAL CONCEPTS

TOTAL CONCEPTS (ESSENTIAL)

ESSENTIAL

GUM CARE SENSITIVITY SENSITIVITY AND CAVITY PROTECTION

GUM CARE AND

CLEANING

NUMBEROFCONCEPTS

NUMBEROFCONCEPTS

% SUCCESSFUL

% SUCCESSFUL

PREMIUMADVANCED PARITY

92 49

57%50%

4957%

4342%

1937%

3070%

5939%

1759%

2124%

1136%

“CONCEPTS WITH ESSENTIAL CARE BENEFITS SEEM TO HAVE A HIGHER RATE OF SUCCESS THAN THOSE WITH ADVANCED CARE. HOWEVER, ESSENTIAL CARE BENEFITS THAT ARE PRICED AT A PREMIUM DO NOT SEEM TO WORK WELL.”


THE WINNING BENEFIT

WHAT WORKS BETTER?

Source: Nielsen

Source: Nielsen

*Base Success Rate: % of successful initiatives out of the total initiatives which have benefits, either single or multiple benefits

*Base Success Rate: % of successful initiatives out of the total initiatives which have single benefit

BaseSuccessRate

BaseSuccessRate

REASON TO BELIEVE IS REASON TO SUCCEED

Any ingredients, technology or methods that lend credence to a

concept’s benefit claims give consumers a reason to believe (RTB).

Success rates in the study show that it’s important for any concept

to have RTB, but the combination of multiple RTBs improves chances

for success. Moreover, while the average success rate of concepts with

RTBs is 54%, natural or herbal RTBs have a much higher success rate

(86%) than chemical or technology-based ones (52%).

SHOULD WE COMBINE ESSENTIAL AND ADVANCED CARE BENEFITS FOR BETTER SUCCESS?


Concepts

%

Successful


Single Benefit 62 60%

Multiple Benefits 127 46%


Concepts

%

Successful

Total Concepts(Single Benefit) 62 60%

Cavity Protection 12 75%

Whitening 24 54%

Germ Kill 10 30%


HOW IMPORTANT IS IT TO HAVE RTB IN A CONCEPT?

HOW MANY RTBS SHOULD BE THERE?

BaseSuccessRate

BaseSuccessRate

*Base Success Rate: % of successful initiatives out of the total initiatives

*Base Success Rate: % of successful initiatives out of the total initiatives which have RTB present

Source: Nielsen

Source: Nielsen

CONVINCING CONSUMERS OF THE BENEFIT

For consumers to be convinced on the benefit the proposition offers,

the RTB needs to be linked seamlessly with the benefit in a relatable

manner. The presence of an ingredient or a technology as an RTB needs

to be contextualized with their linkage to the benefit the proposition

offers.

Clearly illustrating this link through the use of impactful visuals

substantially enhances the chances of success.


Concepts

%

Successful


Concepts with RTB 166 54%

Concepts without RTB 24 25%


Concepts

%

Successful


Single RTB 100 50%

Multiple RTB 66 59%


PICS THAT CLICK

BaseSuccessRate

Source: Nielsen

BaseSuccessRate

*Base Success Rate: % of successful initiatives out of the total initiatives which have either individual or family visuals

Source: Nielsen

A PICTURE IS WORTH A THOUSAND WORDS

Visuals and imagery are integral to campaigns, and concepts that have

family visuals tend to be more successful than those with visuals of

individuals or friends. Meanwhile, visuals of dentists and professionals

seem to be losing out on popularity with consumers, who would much

rather see visuals of the actual paste.

IMPACTFUL VISUALS LINKING THE RTB TO THE BENEFIT ENHANCE A PROPOSITION’S CHANCES OF SUCCESS.

EXAMPLE:

INDIVIDUAL/FRIENDS VISUALS

FAMILY VISUALS


Concepts

%

Successful


Individual/friends Visuals

32 50%

Family Visuals 39 64%


Concepts

%

Successful

Standalone RTB 92 50%

RTB with a link to benefit

74 58%

RTB - link to benefit visually demonstrated 32 69%


BaseSuccessRate

*Base Success Rate: % of successful initiatives out of the total initiatives which have

dentist, mouth/teeth or paste visuals

Source: Nielsen

EXAMPLE:

DENTIST/ TEETH VISUALS

TOOTHPASTE VISUALS

Interestingly, while both RTBs and visuals are individually important

to a concept, an RTB supported by a visual substantially increases

chances of success. While an average concept with an RTB has a 54%

chance of success, a concept with an RTB accompanied by an image of

an ingredient has a whopping 89% chance of success.

With evolving consumer behaviour and a multitude of new product

launches that offer ‘advanced’ benefits in the oral hygiene space,

marketers would need to think differently to stand out in a cluttered

market. Being in constant touch with the changing needs of the

consumer is imperative for both successful innovations as well as

impactful communication.

According to a report by Global Industry Analysts Inc., the global

toothpaste market is expected to grow to $12.6 billion by 2015. The

opportunity is even bigger in India. With the domestic market

expected to grow at a far greater pace than that of global, India’s oral

hygiene market, especially the toothpastes segment, is an exceptional

opportunity for retailers and manufacturers.


Concepts

%

Successful


Dentist/ Institute logo visuals

19 32%

Mouth/ Teeth visuals 26 42%

Toothpaste visuals 27 59%

DO VISUALS OF DENTISTS/ PROFESSIONALS HELP IN A CONCEPT’S SUCCESS?


COMPARED TO THE GLOBAL ORAL HYGIENE MARKET WHICH IS EXPECTED TO GROW AT 3% CAGR IN THE NEXT THREE TO FOUR YEARS, INDIA’S MARKET IS EXPECTED TO GROW AT 14% CAGR.

THE NIELSEN QUALITATIVE VIEWORAL HYGIENE IN INDIABY: SARBANI SEN, DIRECTOR, NIELSEN INDIA

• Conventionally, shopping for oral hygiene products was a

habituated, low-involvement activity, where one brand was

bought and used by the entire family. But thanks to bigger

marketing spends by oral hygiene companies, increasing

awareness regarding oral hygiene and higher discretionary

income, the consumer is gradually getting more involved in

the category.

• A typical urban family is now buying different kinds of

toothpaste as each member looks for something specific.

Since modern trade lends itself to product discovery, brands

that want to disrupt and pave the way for revaluation can

achieve success.

• Consumers are trading-up from regular to functional

toothpastes. Going forward, more specialised segments will

open up as the generic product user base shrinks.

• The role of advertising in building awareness around

specialist needs is crucial. Here, communication, as well as

below-the-line initiatives like sampling and retail activation,

need to be basic and educational in tone.


ABOUTTHEAUTHORS

ABOUTNIELSENNielsen N.V. (NYSE: NLSN) is a global information and measurement

company with leading market positions in marketing and consumer

information, television and other media measurement, online

intelligence and mobile measurement. Nielsen has a presence in

approximately 100 countries, with headquarters in New York, USA

and Diemen, the Netherlands.

For more information, visit www.nielsen.com.

Copyright © 2014 The Nielsen Company. All rights reserved. Nielsen

and the Nielsen logo are trademarks or registered trademarks of

CZT/ACN Trademarks, L.L.C. Other product and service names are

trademarks or registered trademarks of their respective companies.

Juzar Kagalwala from the Nielsen Innovation Practice team was

instrumental in creating this issue of Featured Insights.

ADRIAN TERRON

EXECUTIVE DIRECTOR

NIELSEN INDIA

VISHWANATH

RADHAKRISHNAN

ASSOCIATE DIRECTOR

NIELSEN INDIA

Documents

DELIVERING CONSUMER CLARITY SAY IT WITH A SMILE€¦ · DELIVERING CONSUMER CLARITY WHAT IT TAKES TO SUCCEED IN THE GLOBAL ORAL HYGIENE MARKET • Study conducted on 191 innovations