Title : A company proposes to launch a new toothpaste for kids in the Sri Lanka. Forcast the size of the market segment and develop positioning statement for this new toothpaste. How would you promote? You may limit your scope of work to one country of your choice.

Oral care is a highly practicing health habit in all over the world. In Sri Lanka it may have once been a narrow market segment, but today it represent a flourishing sector with several sub segments. Tooth paste and tooth powder have a combined household penetration in Sri Lanka of 89%. In 2005, Lanka Market Research Bureau (LMRB) estimated this market to be worth rupees 2.5 billion with an annual volume of approximately 4500 metric tonnes, in this tooth paste accounts for marginally over 2 billion rupees.

When it comes to kids toothpaste, it is now being developed by some companies in order to capture this market segment. In over 20 million of population in Sri Lanka 24.7% are between 0 to 14 of years age, which is over 53 hundred thousand. Also 16.8% are between 0 to 10 years of age, which is over 3650 000. First we have to define age limits of Kids, we can concern 0 to 10 years of age group as kids, which is 16.8% of population in Sri Lanka.

Market Segmentation

Market segmentation is a process of defining and sub dividing homogeneous markets in to clearly identifiable segments that have similar needs, wants and demand characteristics.

Market can be segmented by in four main ways.1) Demographic segmentation –

This consists of dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality.

2) Psychographic segmentation -This will mainly focus on the life style on the consumer and the psychological

variables such as self image and personality.

3) Geographic segmentation – It is a segmentation strategy where by the intended audience for a given product

is divided according to geographic units such as regions, countries, cities and climate.

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4) Benefits segmentation -Method of determining a target audience for a particular product in terms of

those people who wants the benefits the product offers. There are different audience for different perceived benefits.

Kotler has suggested market sements must be, Measurable – It must be possible to identify the number of buyers in each market

segment so that the potential profitability can be assessed. Accessible – It must be posible for organization to reach the segment. Substantial – The cost of reaching the particular segment must be less than the benefit.

Segmentation of new toothpaste for kids

Market segments can be done in many ways for this new toothpaste for kids which is to be launched.

1) Demographic segmentation

AgeThis is the main variable in demographic segmentation. Since it is a kids toothpaste it clearly depends on age. As we mentioned early kids age between 0 to 10 are of 16.8% in Sri Lankan population.

Hence,this company can take this segment for their marketing process by segmenting in age, The company needs to serve them with various flavours toothpaste where kids are more like of. Also, they can serve kids toothpaste which cause no harm even if it is swallowed by kids.

GenderThis is another variable in demographic segmentation. Once the company picked the segment by age, they can also look a segment defined by gender.

They can introduce kids toothpaste in several colours pack even though the content inside is similar in order to attract the kids. Some colours for girls and some other colours for boys where in Sri lanka 53% of kids are female. Therfore they can easily target the particular market segment.

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2) Geographic segmentation Region

Region is an important variable in this segmentaton method. In Sri Lanka, we can vary the kids toothpaste from province to province. Since North Central province of Sri Lanka is known to have more calcium in the waters, we can promote kids tooth paste which contains low calcium to this region.

At the same time we can market our kids toothpaste for rural areas, we can promote it by making in sachet packets which would be more cheaper for the peaple of rural areas.

ClimateFurthermore the people who live in cool climate regions such as Nuwara Eliya have to lessen the mint flavour because it will affect temperature of the toothpaste and give coldness in the mouth. Therefore kids tooth paste which contains mint should be reduce when we promote in cool climate regions.

Positioning

Positioning involves the formulation of a definitive marketing strategy around which the product would be marketed to the target audience.

Positioning techniques

1. Undefferencited positioning –This is the delivery of single product to the entire market.

2. Differentiated positioning –This is the delivery of several products each aimed at a separate market

segment.

3. Concentrated positioning –This is the delivary of a single product to a particular market segment.

As far as the launch of the new toothpaste for kids is concerned the most suitable positioning technique would be differentiated positioning or concentrated positioning. Because if the company promotes kids toothpaste for girls and boys seperately and defferent toothpaste for kids in cool climate region and dry climate region seperately then that would be considered as defferentiated positioning.

If the company promotes only the new kids toothpaste targeting kids market which is 16.8% of population in Sri Lanka then that would be considered as concentrated positioning.

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Marketing mix for kids toothpaste

Marketing mix is a set of controllable variables that the firm uses to influence the target market. Basic marketing mix is referred as ‘ Four P’s ‘

1) Product –This refers to the product which is to be marketed. In this scenario the product

would be new toothpaste. When developing this kids toothpaste, the company should consider these two things,

System to monitor customer perception of this product. Product quality must meet the fitness for purpose.

Also product embraces features, quality, durability, design, brandname, logo, packaging, after sales service etc. since this is a toothpaste for kids company should consider on designing that in a way where kids would get attracted easily. For the best output the company have to look competitor’s product. In Sri Lanka, there are several kids toothpaste in the market. Such as Kodomo, Colgate and Signal junior. So to capture the kids market the company should include the features of those toothpaste which are already in the market. If not the new toothpaste will be rejected by the target group as they are adopted to it. For example, Kodomo a kids toothpaste in the market has a feature that can be swollowed and it will make no harm. So this company cannot omit that feature in there product since that is the most secured way to have a toothpaste for kids. At the same time toothpaste can be produced in various flavours since it is a kids toothpaste where kids are more fond of flavours.

Brandname

Brand is a unique design, symbol, words or combination of these employed in creating an image that identifies a product and differentiates it from its competitors.

As far as brandname of this new toothpaste is considered it should be named and designed in a way where kids would have fonded of it. For example, when we take Kodomo kids thoothpaste (commpetitive product in the market), since it is a japanese product, the name Kodomo is the japanese word for child. Similarly this company would also name their toothpaste with familiar and easily understandable one. This would help the company to gain the market share.

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2) Place –Place refers to locations where product can be purchased, distribution channel,

distribution coverage etc. Sicnce kids toothpaste is a normal good which is used in daily life routine, it

could be arrange to afford at every possible places. Most preferably at retail shops. Hence, the most suitable distribution channel would be Two level channel or three level channel.

Two level channnel

Firm Wholesaler Retailer Customer

Three level channel

Firm Agent Wholesaler Retailer Customer

3) Promotion –This represents all of the communication that a marketer may use in the market

place. New toothpaste for kids which the company is going to launch may use promotinal activities such as,

Advertising – Non-personal presentation targeted at a specific market. Examples:

Advertising about new toothpaste for kids on TV and Radio. Sometimes company can use children celebrities for advertisement. Also it is better to advetise at the time when children do watch the TV.

Setting up Billboards and posters on new kids toothpaste. Setting up posters at kids medical centres and child care centers.

Online and social media advertisement. Even though kids are not in the social media platforms, most of the parents aged 25 to 50 are in social media network. Advertising on sociall media will influence them to buy this toothpaste for their kids.

Sales promotions – Short term incentives to encourage sales. Example:

Giveaways, offering the toothpaste for free in order to capture them.

Promoting by displaying and through exhibitions. Product sponsorship, sponsoring the kiddies programmes on the

name of new kids toothpaste.

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Publicity & public relations –Non-personal stimulation of demand by significant news items in the media.Example:

Company open days, inviting large amount of people for company open days and convey the information of this new kids toothpaste to them.

Press releases, relesing information regarding the launch of new kids toothpaste to the press.

Holding Workshops for parents about the importants of the oral care of kids at nursery schools and primary schools.

product packaging – packaging commmunicates abouts product. Example:

labelling the new toothpaste in a way where kids get attracted easily. it means there is a different between adults toothpaste and the kids toothpaste. In adult’s toothpaste there won’t be eye catching colours but in kids toothpaste.

Package design, designing the package to familiar to children. Using cartoon designs etc.

4) Price –The price is the amount a customer pays for this toothpaste. Pricing includes

basic price levels, discounts and allowances, payment terms, credit policy etc. the company which is to launch a new toothoaste for kids may consider these approaches to pricing.

Penetration pricing –A low price is set initially in order to gain rapid growth in market share. Later the price can be increased. This company can adopt this pricing method for their new kids toothpaste. Since they are newly going to enter to the market setting lower price innitially would benefit them.

Cost-plus pricing –A profit margin or markup is added to the cost to arrive at the price. Company would also consider this pricing strategy in order arrive at the price.

Competitive pricing –Setting a price by references to the prices of competitive product. This is also can be adopted for the new kids toothpaste where price is set according to the competitive product.

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