S omething I nteresting . 2 Toothpaste has a penetration of 64%** in India. Almost 435 million I ndians still do not use toothpaste.* Simply encouraging people to increase usage by asking them to “ brush twice a day, daily and regularly” sets the cash register ringing for Oral Care companies. … That’s Marketing!...or are they serious? * ValueResearchOnline ** As of August 2011 . ValueResearchOnline
Toothpaste - Sensitive Teeth - Premium Segment T he P roduct . 3
T he C ompany . Glaxo Smith Kline Headquartered in London,UK . Listed in LSE and NYSE Formed in 2000 by merger of Glaxo Wellcome and Smith Kline Beecham GSKCH and GSK Pharmaceuticals 4 Source: GSK Annual Report
5 T he P roduct L ine … Source: gsk.com
6 Prescription : Augmentin , Betnovate , Ceftin etc; Vaccines : for influenza, tetanus, diptheria and many other Consumer health care : Horlicks , Boost, Aquafresh , Sensodyne , Iodex , Crocin , Eno , Boost etc; Stiefel : Skin health [Dermatology] …w hich i ncludes
7 Block Drug Company in 2001, the original manufacturers of Sensodyne . Sensodyne is a Toothpaste for ‘Sensitive Teeth’ ( Dentine Hypersensitivity ) Sensitive Teeth Market – Premium Segment Present in 130 countries with a market share of 10% and 18% in US and UK respectively. Launched in India in January 2011. Promoted by GSK Asia Pvt. Ltd with an investment of 20 crores for first 9 months. A bout the product .
8 M arketing M ix : T he 4P’s .
9 Value: Providing relief from ‘sensitive’ pain within two weeks. Branding: No.1 toothpaste recommended by dentists globally. Variety: Fresh Mint and Fresh Gel Packaging: Attractive paper box Size: Available in 40gms. and 100gms. Design: Simple and appealing P roduct .
10 Packet Price: Rs.42 for 40gm tube of Fresh Mint. Rs.75 for 80gm tube of Fresh Mint. Rs.45 for 40gm tube of Fresh Gel. Discounts : Rs.2 discount in D-Mart. Pricing Strategy: Penetrative Pricing P rice .
11 Retail Stores and hypermarkets in urban markets. [Tier-1 cities] Pharmacies Distributors P lace .
12 P romotion . TV Commercials in regional languages. ‘Chill Tests’ in hypermarkets Promotion through dentists and dental colleges.
COMPETITOR ANALYSIS 13
14 T he S ensitive T oothpaste M arket in I ndia 34 Crores 32 crores Source: The Times Of India: Jun17 ‘11
15 T he C ompetitor . 15% 10% Source: GSK Annual Report
Segment: Sensitive Toothpaste Market Target: People with Dentine Hypersensitivity Positioning: Only toothpaste which Provides Instant Relief Segment: Sensitive Toothpaste Market Target: People with Dentine Hypersensitivity Positioning: 24/7 sensitive protection 16 Colgate Sensitive Pro Relief Sensodyne C omparing t he STPs
C omparing t he 4 ’s : T he P roduct Provides ‘ I nstant Relief ’ ‘Clinically Proven’ and approved by Indian Dental Assoc. Single Flavour Available in 40gms and 80 gms Provides relief in 1 week. Worlds No.1 toothpaste recommended by dentists worldwide Available in 2 flavour . Available in 40gms & 80gms 17 Colgate Sensitive Pro-Relief Sensodyne
Rs.70 for 40gm pack Rs.120 for 80gm pack Premium Pricing Rs.42 for 40gm tube of Fresh Mint. Rs.75 for 80gm tube of Fresh Mint. Rs.45 for 40gm tube of Fresh Gel. Penetrative Pricing 18 Colgate Sensitive Pro-Relief Sensodyne C omparing t he 4 ’s : T he P rice
C omparing t he 4 ’s : T he P lace Available in chemists and hypermarkets Robust distribution network allows availability in 45lakh stores and 1000 towns all over India Available in chemists and hypermarkets 19 Colgate Sensitive Pro-Relief Sensodyne Source: ValueResearchOnline
Did not have the first mover advantage (Commercials) Has India specific website [Online Presence ] Order for free sample through Wall of Sensitivity Has more than 36k dentists to promote Colgate Mobile Clinics The first one to have TV commercials on Sensitive teeth No India specific website [Australia and US, UK, B elgium, Germany, Canada] Roped in 15k dentists for promotion within 2 months of launch. Chill Tests 20 Colgate Sensitive Pro-Relief Sensodyne C omparing t he 4 ’s : T he P romotion
T o C onclude ... 21 Colgate’s overall supremacy in the toothpaste market, the ‘serious image’ of the brand has helped it build committed customers . This is GSKs second foray in the Indian toothpaste market. Brand awareness is high
22 Bibliography A FAQs B usiness Standard (GSK, Second time lucky?) B asicmarketingfundas4u (Blog) C olgate Sensitive Pro Relief: Website F inancial Express (Interview: VP, Marketing, GSK) G SKCH and GSK: Website. G SK Annual Report S ensodyne : Website T he Economic Times (GSK enters Indian toothpaste market) T he Times Of India (Colgate moves to protect lead in oral care) V alue Research Online (Fresh As Ever) W ikipedia (for data on GSK and Sensodyne ) THANK YOU!