Marketing Strategy Assignment Toothpaste

Marketing Strategy Assignment ToothpasteEXECUTIVE SUMMARYThis report is about to offer a better crossroad HERBAL TOOTHPASTE in the UK market from the shopping centre-eastern Comp any and to acquire a good market shargon. Toothpaste market of United Kingdom is divided into two major departments angiotensin converting enzyme is the Gel Paste market and the differentwise is the Opaque market or Chalk Based Paste market or popularly known as the Paste or dental cream market. The Market for Oral Hygiene in the UK Increased Between 2002-2007, Growing at an Av periodge Annual pass judgment Of 3.2% (http//www.encyclopedia.com/doc). Total UK oral c ar market sh atomic number 18 n early(a) 840m. HERBAL TOOTHPASTE are made from ingrained ingredients and many are even certified as organic and many consumers have started to switch over to graphic toothpastes in order to avoid synthetic and bathetic flavors that are commonly found in regular toothpastes. HERBAL TOOTHPASTE have produc ts ranging those are also rich in calcium and former(a) minerals which makes the dentition stronger and prevents cavities. HERBAL TOOTHPASTE provide be imported from Middle Eastern Company and marketed at a reasonable price comparing with locally produced toothpaste such(prenominal) as Colgate, Kingfisher etc. by means of a research of UK market the objective of this report is to identify the target market with Marketing strategies, target market segmentation including trade mix (product, price, place and promotion) which is an consequential mover for an giving medication in order to penetrate and develop its market. To explore how the target market perceives the HERBAL TOOTHPASTE and how the company tries to influence motion-picture show, attention and interpretation of the product. Here, the scope of the report bequeath be narrowed only to HERBAL TOOTHPASTE. With an effective marketing strategies the proposed product leave increase its reputation day by day and if any ch allenges forget be studied and polld so that it bunghole be annunciateed in this economic climate what to do to sustain the market share and remain more warring.INTRODUCTIONHERBAL TOOTHPASTES are made from natural ingredients. Some toothpaste is still approved as organic. From our study and research it is found that many nodes have pickings place to change over to organic toothpastes to avoid synthetic artificial flavours which are normally found in regular toothpastes.( http//www.herbaltoothpaste.net) Because of the increased demand of natural products, herbal tea toothpaste give be the perfect timing of demand. This kind of toothpaste does non have dyes, artificial flavours or chemicals and this is ace of the mainly general reasons that consumers claim when substitution from ordinary toothpaste to herbal toothpaste.Some people would rather use Herbal toothpaste for their oral hygienics and variety of reasons. Many people actually opting for them since they are not tes ted on animals. Others, devoted to guard the milieu or who are sensitive to the ingredients in usual toothpastes, are attracted to the reality that they have no artificial colours or flavourings. People who use homeopathic medicines are also attracted to toothpastes that dont contain mint as practitioners state the Herb may hamper with the effectiveness of their treatment. (http//www.dailymail.co.uk/ health). Herbal toothpastes are also fluoride-free, which appears to be other frequent grounds why some individuals prefer this category of toothpaste more than regular one. Also some people have allergies or other health concerns who may wish to think about Herbal or organic tooth paste formulations. These products can be a excellent choice for them who are allergic to mint or to sodium laurel sulphate, a foaming agent that is included in more or less commercial toothpaste brands. Classic ingredients in Herbal and organic toothpastes include herbs with traditional historical uses l ike myrrh to assist destroy plaque-causing bacteria chamomile to bring low gum inflammation Echinacea to inspire the immune system sage and rhatany to decrease bleeding and essential oils like peppermint, to add flavour and ease aggravator and irritation. Some other common raw materials for these products include clove, ginger and tea tree oils. Some common ingredients are eucalyptus, Chamomile myrrh, Sage and some other less known plants such as Choti ilaychi, Lavang, Neem, Saunf, Khadir, Babool,. Herbal toothpastes also contain oils such as oils of coriander, ginger, lemon, and spearmint. Eucalyptus is however one of the most common ingredients in herbal toothpastes, mainly for its properties of whitening and prevents stained teeth. Myrrh is used to prevent gingivitis and bad breath and Chamomile and Sage are said to be helpful in soothing mouth ulcers, toothaches and inflamed gums.MARKETING ENVIRONMENT ANALYSISOrganizational success depends on sensing and responding to shiftin g conditions the line of reasoning environment. At the most basic level, these re perplex Opport unities and Threats. Lowly, A. and Hood, P. (2004). Strategic planning effects the organization in different ways. To review environment of any Market we need to understanding of connective with various problems and issue with one another and the effect of that particular areas. To illustrate the UK external environment PEST analysis is constructive. It includes the aspects those are political (taxason policy, foreign throw regulation, government stability), economical (unemployment, disposable income), affable (life style change, level of education), technological (government spending on research, speed of technology transfer), environmental (companys responsibility to society) and legislative (code of practice, inlet to raw materials) factors.3.1. PEST abstract of UK Market EnvironmentThe PEST analysis is a framework that strategy consultants use to scan the external micro-envir onment in which a form operates. PEST is an acronym for policy-making, Economic, Social and Technological factors. Typically, these factors are outside the control of the retail merchant and may either be threats or opportunities. These factors may vary deep down the regions of a coun filtrate and would most definitely vary from one country to another. ( Pradhan,S.2007.p.111)According to Stoner (1992) PEST analysis is concerned with the environmental influences on a business. PEST influences are a useful way of summarizing the external environment in which a business operates. However it must follow up by sellation of how a business should respond to these influences.As Pradhan,S.(2007) described in Retailing Management, 2nd editionThe PEST factors that affect the retail sectorPoliticalEconomicSocialTechnologicalPolitical stabilityRate of economic growthIncome distribution of the raceLevel of technology use in the sectorGovernment policy towards enthronisation in the sectorM oney policySize of PopulationPenetration of internetLabor lawsLevel of TaxationDemographics of the worldPenetration of the mobile technologyConsumer Protection Restriction on the entry of foreign players in the marketConsumer confidenceRate of population, Age profile of the population(Pradhan, S.2007.p112)PoliticalNowadays there are many companies operating their globalized business with different kinds of tooth pastes in UK. As an external factor Political condition can affect and influence of new products like Herbal Toothpastes performance. In favour of service legislations, the administration encourages retailers to make available a mix of occupation opportunities from elastic, lower-paid and locally-based passage to senior high schoolly capable, high remunerated and centrally positioned jobs (Balchin, 1994). The changes of government rules and regulation can affect the business of any company to entrance with new products such as introduce new tax policies on leisure could cr eate a direct impact on the Herbal Toothpaste Import.EconomicalAnother environmental factor is economic, which can make a enormous effect in the business of Toothpaste. Presently UK is in front of a great economic down turn. With the display condition financial, employment,, mortgage sectors are deficiently effected . Earnings of people have decreased and the inflation rose up. In this situation people dont spend property for their residence and cant do proper savings. Due to current market situation any new products may effected in their business. The supranational business market is still growing. Through our Herbal Toothpaste products we are expecting it will add greater amounts to its business. So it would be badly exaggerated if some delay in the UK FMCG market with market concentration risks.SocialSocial environmental factor has a great emphasis on business environment especially with the present economic down turn. Customers have moved towards changes. Our products have en larged the quantity of FMCG products like HERBAL TOOTHPASTE available for the customers. Nationalized retailers are gradually reserved to get on new suppliers (Clarke, Benison and Guy, 1994 Datamonitor Report, 2003). Type of products and services demand by the customers regarding their social circumstances and their subsequent spatial relations and values. Customers are becoming much more aware about health and safety issue and the attitudes towards FMCG are always changing. Herbal toothpaste introducing its products mix to enlarge require for natural products. The consumers for Herbal Toothpaste are of middle, upper middle and upper mannikin families in our target market. They are the relatively conscious part of the society, with both the need and the purchasing mogul necessary.TechnologicalToothpaste is one of the most popular and troubled growing products in UK market. Technology is a irregular macro-environmental that has affected the improvement of FMCG products. The custo mer and the company are being benefited as the technology provided new era in service. Technology helps a lot to rises the customers satisfaction. The company will use the modern high technology in production and all HERBAL TOOTHPASTE outlets will use the wireless devices, internet, intelligent scanner, electronic shelf labelling, Radio Frequency Identification, Close Circuit Camera (CCTV), Money paying machine etc. The electronic point of sale and electronic scanner have significantly enhanced the effectiveness of delivery and stocking actions, with requirements being communicated almost in authentic time to the supplier.3.2. Porters tailfin ForcesPotential EntrantsIndustry CompetitorsRivalry Among Existing FirmsSuppliersBuyersSubstitutesThreat of new entrantsBargaining power of SuppliersBargaining power of buyersThreat of substitute products or servicesTo go how the business atmosphere is changing the way of the product, the five forces model of Michael Porters has been used her e. The competitive five forces have prepared by identifying five original competitive forces which are prospective entrance, threats of substitutes, bargaining power of buyers, bargaining power of suppliers and controversy between existing companies.01Suppliers PowerThe major business giants are also a threatened for the new entrance business society if they bring the products from broad in cheaper rates side and dont take from the local suppliers. The services of aggressive competition have concentrated the earnings limitations for supermarket chains and suppliers.02Buyers PowerThe more products that become standardized or undifferentiated, the lower the switching address and hence, more power is yielded to buyers, (Porter M. 1980). The power of buyers can also influence cost and investment, because powerful buyers demand costly service. The customers are aware about the products and its influences that they expect from third world producers.03Threat of transpositionGeneral subs titute is able to reduce demand for a particular product, as there is a threat of consumers switching to the alternative (Porter M, 1980). Herbal Toothpaste will create its own market through huge marketing activities but the existence of similar other products from companies like Colgate, kingfisher, Crest etc.04Threat of peeled EntryNew entrants to an industry bring new capacity and a desire to gain market share that puts pressure on prices, costs, and the rate of investment necessary to compete. the company needs to monitor the market as well as ready to face challenges from such arrivals which then gives governance better effectivity to maintain its image and loyalty to its consumers. It is very difficult for the new company to entrance and provide sufficient capital for big fix costs and exceedingly developed supply chain as there bare already business giants are there in the market.05Competitive RivalryThe FMCG business environment has grown in significant way in shape and dominated by the larger chain opening big store, developing concentrate of retailer and proper utilization of the formats. Herbal toothpaste may faces competitive rivalry from Colgate, kingfisher, crest. the organisation needs to bring more effective marketing intelligence provide early warning of opportunities and threats.3.3. Target MarketActually all toothpaste users or potential toothpaste users represent the target market of Herbal toothpaste. As awareness for dental health and well-being is increasing tremendously in UK. According our own study the target market for Herbal toothpaste is also increasing. Target market of Herbal toothpaste is not also much limited or segmented by age. Toothpaste is a family product, thus used by family members of all age groups. The users of this paste are everyone in the family who looks for strong, healthy teeth without problems like cavity and tooth decay. Here, the basic target group consists of children up to 14 years of age and their pare nts and other senior members of the family.Fulfilled Mature, satisfied, prosperous and reflective people who value order, knowledge and responsibility. They are Conservative, practical and look for personaality. For this reason Herbal Toothpaste will be promoted on the basis of functionality, i.e. strong teeth to the senior members.Believer Conservative, conventional people with concrete belief based on tradition like family. They are the parents caring for the kids who stay loyal to the brands they bump best. Again, the kids are expected to be traditional. For this Herbal Toothpaste promotion is targeted towards the kid who would become life-long loyal Herbal Toothpaste user.Geo-Lifestyle Analysis (PRIZM) The Herbal Toothpaste consumers are the Young suburbia. They have little families, mostly married couple with children. These families are affluent and strong consumer of family products like toothpaste. For this Herbal Toothpaste targets the family focusing the promotion on t he kids.3.4. DemographicPopulation of Muslims in UK are 1.6 million, 2.8% or total population of UK.Age 5-50Area East London, Tooting Broadway, White Chapel, Bethnal Green72% of Muslims living in East LondonPrice setting 3-5Total market 400,000 people.(Source Total population-office for national statistic 2001, Muslim population-office for national statistic 2001)MARKETING MIXTo know the character of customers and their needs and desires is only the first step, however. The organisation needs to act on that information, in order to develop and implement marketing activities that actually deliver something of value to the customer. The means by which such ideas are turned into reality is the marketing mix. The following figure summarises the areas of responsibility within each element of the mix.PRODUCTNew product development(e.g. Herbal personify lotion, body powder) harvest-home management(With strong management team)Product benefits(Made by Natural fresh ingredients)Branding Pa ckaging(Under the perfect monitoring of the Company with high technology)PRICECost(Herbal toothpaste will be low cost product comparing with others)Profitability(After 6 months it will be profitable for the company,)Value for specie(Herbal toothpaste cost effective products for the customers)Competitiveness (The products will be competitive in the market)Incentives (On Bulk purchase)PROMOTIONDeveloping communication mixes(With Company, retailers, end users)Advertising management (Company marketing strategy management team collaboration with local add firm)Sales promotion (For distributors, retailers, customers)Sales public relation management (campaign, contribution in social activities)Direct marketingPLACEAccess to target market(Easy access all over in UK market) individualized credit line structure (Distribution channels are Tesco, Asda, Boots, Sainsburys) highway management (Through Herbal products management committee and selective retailers)Logistics (Companys own support)T he 4Ps 4.1. PRODUCTProducts are solutions to customers needs. The company (the product provider) needs to make various product decisions, including functionality, mountain range offered, brand names, packaging, service and support. The product is normally the critical element in the marketing mix, with all other decisions relating to this element (Drummond Ensor, 2005). The ingredients are eucalyptus, myrrh, Chamomile, Sage and some other less known plants such as Lavang, Choti ilaychi, Saunf, Neem, Babool, Khadir. Herbal toothpastes also contain oils such as oils of coriander, ginger, lemon, and spearmint. Some of these ingredients are available in India and its very cost effective to import from there.Product name HERBAL TOOTHPASTETag Line Real Fresh Dental CareTarget Market 5-50 years customer (everyone can use)4.1.1. Product RangeHerbal Gum Protection ToothpasteContain kinds of herb, such as honeysuckle and chrysanthemum etc, which prevent mouth from cancer and protect gum. t ravel milling raw material make teeth white. Constantly using can protect gum. It gives pleasant refreshing breath. (spec 150gm)Herbal Anti-cavity ToothpasteHave good function of anti-cavity, strengthen teethFruit flavor give mouth pleasant aroma. (spec 150gm)Herbal Tartar Control Toothpaste Offering silica based white toothpaste which is specialized for controlling tartar. The toothpaste comes with fluoride and without fluoride and it is exceedingly helpful cavity protection along with refreshing breath. (spec 150gm)Herbal Natural Toothpaste We are engaged in offering supreme look natural paste. The natural paste is created by using completely natural ingredients that make them absolutely safe to use and free from side effects. ( Spec 150gm)4.1.2. LabellingOur state-of-the art manufacturing capabilities enable us to successfully undertake private labelling activity on the behalf of our customers. We use latest technology in production and packaging, to ensure that the end produc t complies fully with your requirements. This enables you to market a trustworthy and genuine product, under your brand, at very reasonable prices.4.1.3. Product Life CycleAccording to the Break- Even analysis we can predict that after 3.7 months the company will get profit from the product. It will increase through developing the products and introducing new products I the entire market. After a received period of time (3.7 months) the product will be matured and will be established in the competitive market.Sourcehttp//www.tomspencer.com.au/2009/01/25/product-life-cycle-model4.2. PRICEprice strategy is affected by various factors such as cost of production, internal and external factors, competitors price for similar products etc. For our product we need to analyze these factors in order to develop competitive pricing strategy to offer better value products to its customers. Since all of the products are freshly made, the cost of production must be less than its competitors which hence reflects on its different range of products. Herbal toothpaste will be recognized as low cost but quality based products. Furthermore, our products will safekeepingfully focus on segmented pricing such as kids products is offered for a low price. On the other hand, it cannot charge the alike(p) range of prices in Middle-East which it is charging in UK market a geographical pricing strategy of our product is more effective in order to gain international reputation. onward motional pricing also gives the company to penetrate market more effectively. Using the Cost-based pricing Strategy Herbal Toothpaste will be sold 3.25 per unit (200gm) tube with 1.85 unit contribution margin. Takes into consideration the fixed costs and variable costs in the Break -Even Analysis given below.4.2.1. Break Even Analysis4.3. PLACEThe organisation must distribute the product to the user at the right place at the right time. Efficient and effective distribution is important if the organisatio n is to meet its overall marketing objectives. If an organisation underestimate demand and customers cannot purchase products because of it, profitability will be affected.(http//www.learnmarketing.net/place.htm)For a Hybrid marketing systems nonuple distributor will be used for the Herbal ToothpasteRetailersCatalogues (free and available from the retailing shops)Samples from the partners.Vertical marketing systems will be contractual with our retailers like boots, Tesco, Asda, and Sainsburys.Indirect ChannelDistribution the products into different wholesaler/retailersStore the stocks in a warehouse or business egotism storage in LondonShip the Product from Dubai to UK(London)Mid EC Inc based from DubaiLogistics and Distribution4.4. PROMOTIONAL STRATEGYNo strategy lasts forever. Organizations need to innovate strategies and implement them in order to obtain a continuous success. As we are going to launch a new product in a new market we have selected some promotional strategies. T he promotion strategy of Herbal Toothpaste are advertising, sales promotion, public relations however there are two more promotion strategies which are personal selling and indirect marketing. It has been observed that Herbal Toothpaste will always be consistent in promoting sales through advertising in different media ranging from newspapers to TV and radio. The sales promotion via gift promotional vouchers are some other areas where Herbal Toothpaste will found equally consistent. Due to its effective marketing strategy, Herbal Toothpaste will attract more customers towards its stores and sales points. The other promotional strategy will be its slogan REAL FRESH DENTAL CARE, through such kind of promotional activities the product will get its place in the market will acquire more market share compare to other products in the market.Herbal Toothpaste will be quite a heavily outdoor- advertised brand that it forms a part of the landscape of almost all the neighborhoods of England. all over one goes, one can see the brand logo. The brand name is displayed in many forms, including the followingBillboardsShop fronts and store headboardsPosters and stickersMedia ( Television, Radio) solely of these increase the chances of exposure so much that it is almost impossible to be unfamiliar with the brand.AttentionThese advertises successfully attracts the consumer as they use focus on the kids. The promotional activities for the brand are designed to gain attention using a number of stimulus factors.Size Ads for Herbal Toothpaste is all big billboards that must attract the consumer.Colour All advertisements for Herbal Toothpaste will be Black and white accompanied by Red on one side.Position Advertisements of Herbal Toothpaste dental cream try to take advantage of every possible position, be it the right, left or centre of a street.Format All advertisements of Herbal Toothpaste make use of a simple format, to make it easier to understand.4.5. SEGMENTATION AND POSITION FreshnessStrengthFamilyPersonalBenefit Positioning Like all other dental creams in the market, Herbal Toothpaste will be positioned on the basis of benefits offered to the consumers through competitive low price. It projects functional benefit of strong healthy teeth without tooth decay, cavity or any other problem. For this Herbal Toothpaste dental cream will be promoted as a family product.Crest PasteColgate GelHerbal ToothpasteKingfisherSensodyneAquafreshThis diagram compares the attributes of our contribution with the finest of our deal in each category. Preferably the demonstrate for our product will shape a circle around the boundaries of the graph. This assessment will force us to consider the power of each of the competitive offerings and how we must position our offering to face them.Source http//www.brs-inc.com/models/model15.asp5. IMPLEMENTATION OF MARKET STRATEGYHerbal Toothpaste is in the long margin and short-term memory of the consumer. It is memorized as preventing tooth decay, making healthy teeth and healthy kid.Herbal toothpasteStrong teethStrong kidHappy kid middlingPriceEconomicRed colour of packageEnergyNo tooth decayEnjoy lifeHigh qualityHappy FamilyNumber one brandFunForeignFigure Partial Schematic Memory of Herbal Toothpaste (personal views)Bridging Consumer Need and the ProductHappy kid water-loving kidHealthy ToothStrong TeethHerbalToothpasteComplete toothpasteNaturalIngredientsToothpaste preferred by kidHappy FamilyToothpaste for whole familyIntegrated Communication MixNEEDBENEFITBridged byNeed of the Herbal Toothpaste user is strong and healthy teeth. This can be graphically depicted.Product benefit is strong and healthy teeth due to different ingredient in the product.Herbal Toothpaste bridges this need and benefit with the help of advertisements in television and on print media.In the advertisement they show the need for and the way to have strong and healthy teeth.How Consumer Attitude is InfluencedFor the favourable attitude resulting in purchasing of Herbal Toothpaste, the company will focus on consumers consistent and positive mix of cognitive, affective and behavioural components.Changing Cognitive shareChanging the belief that not all toothpastes are equally capable to prevent tooth decay and Herbal Toothpaste does this task best. They show it by a proportional advertisement with a simple experiment on a tooth like shell (shonkho) and germ, where Herbal Toothpaste proves to be more effective in preventing decay.Herbal Toothpaste will carry out campaigns in schools to teach the children how to care their teeth. This in turn increases awareness and preference.Shifting importance towards stronger teeth than engagement germs, comparing with the competitors.Changing the perfect of teeth, with more emphasis on strength than on whiteness and freshness implying that all these would come with strong teeth.Changing Affective ComponentClassical teach with children smiling (described before)With emotional appeal in the advertisement and continuous exposure on TVC, Billboard, Hoarding, newspaper, on Internet and religious festivals.Changing Behavioural ComponentPromotion in the school level accompanying free sample,Arranging drawing competition for the kids,Giving free gift of drawing book and pencil to the kids.Self-Concept Self-concept is the recognition and attitude consumers hold toward themselves. The target group, as described earlier, is families who share collective values and where family affairs run around the children.Strengthening self-concept Both actual and elevated self-concepts of both parents and children meet with projection of Herbal Toothpaste. Both the parents and the kid him/herself want to have healthy teeth that would make the whole family happy. Thus Herbal Toothpaste strengthens the self-concept of the consumers.Forming self concept Self-concept is formed through interaction with the surroundings in very early stages of life. Keeping this in mind, Herbal To othpaste conducts its school program, as described earlier. Through this program they form the self-concept of the kids that values health, strength and family. Thus Herbal Toothpaste attempts to form and strengthen favourable self-concept.6. CONCLUSIONToothpaste is one of the largely vibrant segments of the oral care market. The regularity of product launches in existing segments of the marketplace and origin of new product segments contributes to constant growth of the toothpaste market. Enlarge in sales of oral hygiene stuffs in key markets worldwide has mostly resulted from rising awareness of cleanliness and product modernism. New advancements have led to the launch of a diversity of high-priced, value-added multifunctional products in many oral care categories such as toothpastes and toothbrushes. Whitening toothpastes and products offer multiple functions are driving growth in the dentifrices segment. Its certainly big business its the biggest segment of the UK oral care ma rket, with a 330m share of the nearly 840m total, according to research firm Euro monitor.Currently, for major toothpastes, averting tooth decay is not sufficient, which usually guarantee benefits such as fresher breath, healthier gums and whiter teeth. Technological advancements in recent years have altered the toothpaste segment to one that offers additional benefits besides just fighting cavities to customers. This made manufacturers to roll out products with a lot of additional features that were not available previously.Word count 3735