Himalaya Herbal Toothpaste category and brand involvement

Brand Management - Group 4

Roll No. NameFT13170 Shouvik DasFT13224 Ishani SircarFT13312 Arjun ChoudhryFT13351 Namita JoshiFT13389 Vikrant Vijay MahajanFT13466 Ruchika Salhotra

HIMALYA DRUG COMPANY• One of the key players in the pharmaceutical field for several decades.• Herbal Offerings in Health Supplements, Personal Care Products & Pain Ointments in the retail &

prescriptive segments• Unique Proposition: The scientific rigor associated with the testing of its herbal offerings• The company launched Ayurvedic Concepts to enter the consumer markets.• Initially, in the late 90s, Ayurvedic Concepts targeted the young urban professional population to

create brand awareness. In the early 20th century, it was brought under the Himalaya umbrella brand for several categories of soaps, shampoos, face washes, health supplements, baby products, etc.

• In 2010, 40% of Himalaya’s turnover was from consumer products.• It had several exclusive outlets throughout India, & had shop-in-shop counters in modern retail

outlets.• Himalaya did not advertise as much as other FMCG manufacturers, & brand associations were

nurtured by Word of Mouth.• To build market share in the highly competitive personal health care market, it begun to advertise its

face wash & toothpaste brands• Its offerings were exported to several countries• The brand has a positive perception among consumers

ORAL CARE INDUSTRY

ORAL CARE CATEGORY

TOOTHPASTE

TOOTHBRUSHES

TOOTHPOWDER

MOUTHWASH

DENTAL FLOSS

WHITENING PRODUCTS

• FMCG was broadly split into: Household Care, Personal Care and Food & Beverages

• FMCG market in India projected to be around US$15-18 billion in 2010, & expected to grow to US$33 billion by 2015

• The average Indian consumer spent around 8% of his income on personal care products

• Growth of the personal care segment can be attributed to: Increasing levels of discretionary spending Greater attention to personal hygiene Increase in the no. of new media channels Distribution In 2010, the oral care market in India was around US$980

million Growth trend of toothpastes over the past 3 yrs was

relatively slower than that of other key FMCG categories (11%)

Growth of the toothpaste category was even lower, at around 9%

STUDIES ON “THE PERCEPTION OF CONSUMERS REGARDING THE TOOTHPASTE CATEGORY”

• One study reported that 68% of the Indian consumers who participated in the survey believed that using the right toothpaste was more important than using the right toothbrush. However, they did not give much importance to the toothpaste category. Most of them believed that oral care was not as important for personal grooming as hair care or skin care.

• Another study revealed that only 28% of the respondents brushed twice daily.• Yet another study indicated that 68% of the respondents had never visited a dentist & 87%

would not consider visiting a dentist as a preventive measure.• WHO reported that 98% of the Indian population suffered from oral health problems.• Ratio of dentists to patients was dismally low, with just 1 dentist for 10,000 people in

urban areas & 1 for about 0.25 million people in rural areas.• It could be concluded from these studies that there was a significant scope for marketers

to enhance the involvement level associated with the toothpaste category among consumers.

TOOTHPASTE INDUSTRY : Key Facts

INDUSTRY FACTS• The toothpaste market in India had a

very low penetration rate of 60%.• Urban Penetration: 76% Rural

Penetration: 40%• Average consumption of toothpaste

in rural households was significantly lower than in urban households.

• Per capita consumption of toothpaste in grams per year:

India: 115 China: 255 United States: 542

COMPETITION DATA• Key brands in the Indian Oral Care industry:

Colgate- Palmolive India & Hindustan Unilever Limited

• Colgate was one of the main brands for oral care, with the category contributing to 96% of Colgate- Palmolive India’s annual company sales.

• Colgate was the market leader in the toothpaste, toothbrush & toothpowder categories.

• It led the toothpaste market with a 52% market share.

• Hindustan Unilever was 2nd in the oral care market with a 25% share in the toothpaste category.

TOOTHPASTE INDUSTRY : Segmentation

Pricing

Economy

Popular

Premium

Product Variants

Paste

Gel

Categorization

Freshness

Herbal

Overall Health

Niche

POSITIONING MAP OF BRANDS

Emotional Benefit Closeup

Colgate Fresh Energy Gel Colgate MaxFresh

Anchor White Himalaya Dental Cream Anchor Gel Pepsodent Babool MintFresh Colgate Dental Cream Colgate MaxWhite

Economy Tier Premium Tier Dabur Red Colgate Cibaca Babool Ajanta Colgate ActiveSalt Colgate Sensitive Dabur Meswak Colgate Total Promise Colgate Herbal Sensodyne

Functional Benefit

Marketing Communication by the Competitors

Brand Marketing Campaign / Positioning Statement

Selling Point

“Close up” Paas Aao Campaign – “makes one want to kiss”

Freshness > Closeness

“Colgate Dental Cream”

“All round Protection from Decay” / “No.1 Brand Recommended by Dentist”

Trust + Protection

“Pepsodent” “Removes 95% of Germs in just 2 minutes” Protection + Effectiveness

“Dabur Red Toothpaste”

“Lets Drive Away Dental Problems” Curative

“Colgate Active Salt”

“Kills Germs to make gums Strong & Healthy” Problem Solving+ Health

Ove

rall

Hea

lth C

ateg

ory

Herbal

Niche

SURVEY – KEY FINDINGS• 58% of respondents brush once in a day• 78% of all respondents never visit a dentist• dentist recommendation – 72% of all respondents do not take a toothpaste

recommended by dentist– 86% of respondents change their toothpaste on

recommendation by dentist• 85% of consumers have oral health problems• 67% of consumers change their toothpaste to solve a

problem• Overall Category involvement is 41%

Involvement Levels Analyzed

• People all agree that a toothpaste is necessary for them as the low score signifies in the last slide

• But people display more or less a neutral attitude when they consider the functional attributes of a toothpaste.

• The functional level score only goes up in the niche segment• This suggests that toothpaste is a low involvement category

with consumers knowing the need of a toothpaste but are not too attached to functional attributes except in the niche category

• Consumers in the niche segment are more involved in the buying decision of a tooth paste

Attitude towards Brands • The results of the involvement levels gets reflected in the attitude towards

the brand as well• Perception that a toothpaste creates freshness and makes teeth shinier gets

a score of 3.5 with the niche category scoring higher with a value of 3.9• Functional attributes like germ fighting and oral health gets a score of 3.5

with the niche category scoring 3.9• Personal perceptions like confidence , dazzling smile and a good start to a

day gets a avg score of around 3.35 with the niche segment scoring a high of 3.85.

This resonates the findings of the involvement levels. Attitude towards low involvement categories are neutral. People do not share a strong brand attitude. But a higher involvement level category like the niche segment garners a higher brand attitude from the consumers.

Emotional attachment

• Analyzing the scores we infer that involvement levels does not play a very important role in this respect.

• The avg score is around 3.3 with all segments scoring the same unlike what we saw in the earlier slides

• This also shows that people are almost neutral in emotional attachments towards the brands

Category InvolvementSegment High Involvement customers

Freshness 28%

Herbal 40%

Overall oral care 32%

Niche 64%

Total category 41%

The above table depicts that the herbal category has the second highest percentage ofHigh involvement customers. It is a favorable situation that can be tapped

Attitude towards category

• Cognitive beliefs of the consumers towards non niche categories are almost same with a percentage of score around 60%

• Affective beliefs score a high in the freshness category with a score of 60% comparing to a low 40 % in the herbal category

We can use this data to formulate a marketing strategy which emphasizes on the freshness aspect as well to cash in on the affective beliefs of the customers

Segment Analysis

Freshness

Consumer Behavior•80% of brush once a day•71% never visit a dentist•75% dentist doesn’t recommend the toothpaste

•Oral Health Problem = 88%

High involvement 28%

Low Involvement & high Attitude 66%

Herbal

Consumer Behavior•88% of brush once a day•84% never visit a dentist•67% dentist doesn’t recommend the toothpaste

•Oral Health Problem = 92%

High Involvement 40%

Low Involvement & high Attitude 46%

Oral Health

Consumer Behavior•56% of brush once a day•80% never visit a dentist•50% dentist doesn’t recommend the toothpaste

•Oral Health Problem = 80%

High Involvement 32%

Low Involvement & high Attitude 46%

Niche

Consumer Behavior•23% of brush once a day•64% never visit a dentist•88% dentist doesn’t recommend the toothpaste

•Oral Health Problem = 80%

High Involvement 64%

Low Involvement & high Attitude 89%

Recommendations : Himalaya• Need to enter in a new niche / Problem Solving category

keeping herbal USP– High avg involvement score : 3.9/5 /

• 64% of total consumers– Increased use of brushing / customer

• Increase of 54%– Higher Consumer Cognitive & Affective Belief

• 92% & 72% respectively (compared to herbal’s 64% &44%)– Low Category Involvement customers – strong cognitive belief

• 89% in niche vs 46% in herbal

– High affective belief of 60% in freshness category as compared to a low 40 % in the herbal category. We can encash on adding a freshness element in the niche segment

Himalaya Toothpaste : Differentiation

• A premium Herbal Toothpaste for the niche category – “Fresh , Natural & Secure”

• providing freshness and solution to the following problems:-– Tightening & Reducing swelling / bleeding of gums– Prevention of Tooth Decay & Tooth Ache– Bad Breath Control

Positioning StatementTo consumers in Urban demography concerned towards oral healthcare, Himalaya’s Active Herbs Toothpaste is the brand of herbal freshness & oral healthcare, a toothpaste that offers specific solutions to oral health problems with a freshness quotient because it’s a premium all natural, healthy, oral solution with a herbal product expertise.The brand character is safe , reliable & caring

Brand Campaign

• “Enjoy superior protection & long lasting freshness with the power of herbs”

• Brand Ambassador to be used– Dentist approval not reccomended

Thank You