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Pepsodent April 1922. June 1922.

Business Ethics Project

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Page 14: Business Ethics Project

Brand : PepsodentCompany : HLLAgency " Lowe

The Pepsodent Company of 40 Holborn Viaduct, London, EC1 (1922).

Pepsodent is a brand of toothpaste with a wintergreen flavor. It was formerly owned by Unilever. (but, since 2003, by Church and Dwight in USA).

It was advertised for its purported properties fighting tooth decay, attributed in advertisements to the supposed ingredient Irium. Irium is another word for sodium lauryl sulfate, an inexpensive ionic surfactant.

Its best-known slogan was “You'll wonder where the yellow went / when you brush your teeth with Pepsodent!” [1]

1930s A massive animated neon advertising sign, featuring a young girl on a swing, hung on a building in Times Square in New York City.

1950s Pepsodent was a very popular brand before the mid 1950s, but its makers were slow to add fluoride to its formula to counter the rise of other highly promoted brands such as Crest and Gleem toothpaste by Procter and Gamble, and Colgate's eponymous product; sales of

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Pepsodent plummeted. Today Pepsodent is a “value brand” marketed primarily in discount stores and retails for roughly half the price of similarly-sized tubes of Crest (Toothpaste) or of Colgate.

1994 In a speech then-FCC chairman Reed Hundt claimed that the "Irium" mentioned in Pepsodent advertisements "didn't exist". Another ingredient, "I.M.P." was purported to whiten teeth.

Pepsodent is still sold as a Unilever property in India, Indonesia, Chile, Finland, and several other countries.

Brand : PepsodentCompany : HLLAgency " Lowe

Pepsodent was launched in 1993 by Hll to capture the market from Colgate. Launched in the platform of Germ fighting property, Pepsodent now have a marketshare of 17% in the Rs2200 crore oral care market.

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Pepsodent have experimented with its positioning althrough its life. Initially Pepsodent was launched in the highly successful "long lasting protection for hours after brushing" platform.

In 1999-2000 Pepsodent tried to fight the market leader Colgate by shifting to Benefits of germ fighting rather than Process of germ fighting. But the positioning failed and Pepsodent had to come back to the old positioning by 2001.

Pepsodent included the germ indicator to its pack in 2002 followed by an innovative Dental Insurance campaign which reinforced the germ fighting position.

HLL was trying hard to break the fort of Colgate which was holding a massive 45- 50% market share in the oral care market.Although Pepsodent and Close Up had together around 32% of the market , it was not enough. Then came the regional brands like Ajanta and Babool which really made a dent in the market share of the leaders.

Hll struck back with the famous Dishum dishum campaign ( that won many accolades for the agency). The insight for this campaign was that Mothers were really worried about the eating habits of their kids. From that insight came the Big Idea " let Pepsodent fight germs for You". The campaign and the smart pricing virtually killed the regional brands in the oral care market.

Pepsodent knew that they should expand the total market of tooth paste and decided to increase the market by increasing the usage of the product. Thus came the Bhoot campaign that is currently on air.

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Pepsodent aims to teach the kids to brush at night ( with Pepsodent ofcourse) .Research shows that brushing teeth at night can reduce chances of tooth decay by 30%.

If HLL to be believed, 12 lakhs kids are brushing teeth at night now and mothers are happy

Pepsodent is a brand that has been carefully crafted although it struggled to find its soul, now the brand is all set to take off.

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Pepsodent

Parent Company HUL

Category FMCG

Sector Personal Care – Toothpaste

Tagline/ Slogan

Dss nahi to bas nahi; My toothpaste fights 10; Protection Outside Freshness Inside; Gets Your Teeth Their Whitest

USPPepsodent is a 15 year old brand that offers various oral care solutions to specific need based solutions.

STP

SegmentPersonal Care -Toothpastes – Range of variants for different needs

Target Group Urban Households for Oral Hygiene Care

PositioningBrand that offers various oral care solutions to specific need based solutions

SWOT Analysis

Strength

1. Endorsed by FDI ( the largest dental association globally)2. Among the most trusted brands having celebrities like Shahrukh Khan as brand ambassadors3. Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth, fresh breath and healthy gums4. Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth5. Pepsodent also includes a range of toothbrushes

Weakness

1. Colgate is the top-of-the-mind toothpaste brand hance intense competition2. Low penetration in the rural areas

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Opportunity

1.innovative marketing like Pepsodent packs included a Germ Indicator in February-May 2002, which allowed consumers to see the efficacy in fighting germs2.Pepsodent campaigns which aims at educating consumers on the need for germ protection through the night3. Smaller packaging for rural markets, tie-ups with hotel chains, schools

Threats

1. Competition from internal brand like Close Up in the same segment and external brand like Colgate2.Oral hygiene still lacks in the rural parts of the country

Competition

Competitors

1. Colgate2.Anchor3. Oral B

Corporate Responsibility

Corporate Responsibility is integral to our vision: To earn the love and respect of India by making a real difference to every Indian…HUL’s Corporate Responsibility (CR) philosophy is embedded in its corporate purpose and Vitality mission. The company firmly believes that it has commitment to all its stakeholders - consumers, employees and the community in which it operates. It can fulfil this commitment only by sustainable growth. The Vitality mission of the company aims to improve quality of life through our products and through our interventions in the community. 

On this background, HUL's key CR initiatives are undertaken with a long-term view. Initiatives that are sustainable, that have long-term benefits and that have business linkage are accorded priority. Some initiatives are brand driven, some are driven by our people and some are driven by our processes. 

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CR Commitments

On the social front, we will work in areas of Health & Nutrition and Empowerment of Women, our economic agenda will be driven towards Enhancing Livelihoods and the environmental agenda will focus on Water Conservation and cutting Green House Gases. We have developed specific programmes and initiatives to address each of these.For example Project Shakti is our initiative towards changing lives of women in rural India. Similarly, to commemorate our 75th year in India, we had decided to undertake some key initiatives. We have enhanced livelihoods of 75,000 women in a sustainable manner.

We intend to partner with NGOs to augment their efforts by bringing in technical and managerial expertise in this area.For Enhancing Livelihood, HUL in partnership with Aide et Action India Private Limited has established the Livelihood Education and Skill Development project called ‘Samruddhi’ (meaning prosperity) for the youth through Institute for Livelihood Education and Development (iLEAD) Centre in Silvassa.

One of our other key initiatives is built around our commitment of reducing our carbon footprint. We have embraced Unilever's ambitious target of 25% reduction in CO2 from energy in manufacturing operations per tonne of production by 2012, against a baseline of 2004. HUL developed a new process of manufacturing soap based on 'Plough Share Mixer' technology. This eliminates the need for steam in soap making.

16-05-2011 : Hindustan Unilever Limited (HUL), India’s largest FMCG company has announced the launch of India Water Body, an initiative aimed to address the challenge of water scarcity in India.

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Mr Nitin Paranjpe, CEO & Managing Director, Hindustan Unilever, said, “It is estimated that by 2030, the supply of water in India would be half of the demand for it. This is a crisis that has the potential to derail the economic and social development of the country and impact the health and livelihoods of millions of people across the country. We at Hindustan Unilever believe that what concerns the nation must concern us too. Therefore we have launched, India Water Body to drive water security for the country by 2030.”

The India Water Body will be conducting a nation-wide study to assess the demand-supply gap for water in India. The study will build on the available body of knowledge and engage multiple stakeholders to evolve an India water roadmap enumerating clear priorities and solutions for implementation.

Water management has been a key focus area for HUL in India across its entire value chain. HUL has consistently reduced water consumption in its operations, helped small-holder farmers to use water judiciously in agriculture, developed product innovations such as Surf Excel quickwash that helps consumers use less water while washing clothes.

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The Company has been working for more than a decade in the area of water conservation in partnership with NGOs and local communities across the country, in locations which face acute water shortage. The success of these projects has been driven by establishing public-private partnerships involving the local communities. This has helped to not only sustain these projects but also to scale them. HUL has initiated projects in several states in India that will enable us to create capacity towards conserving more than 50 billion litres of water in the next four years (by 2015).

The India Water Body launch takes this commitment beyond standalone interventions towards a systematic long term approach to drive water security for the nation through the public-private partnership model. This initiative builds on the Sustainable Living Plan launched by Unilever on November 15, 2010. Hindustan Unilever Limited is a subsidiary of Unilever. Water is one of the focus areas identified in the Unilever Sustainable Living Plan.

The Sustainable Living Plan aims to help everyone enjoy a good quality of life while respecting the planet. The Plan decouples business growth from environmental impact. It sets out over 50 social, economic and environmental targets. The Plan has set three big goals for Unilever to achieve by 2020:

Help more than one billion people improve their health and well-being Halve the environmental impact of our products Source 100% of our agricultural raw materials sustainably

About Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company touching the lives of two out of three Indians. HULworks to create a better future every day. We Impacts of Water Conservation Initiatives of Hindustan Unilever Limited

Rainwater harvesting and soil conservation projects have been undertaken in Khamgaon (Maharashtra), Silvassa (Dadra and Nagar Haveli) and Puducherry. More recently, water conservation project was launched in Gundar Basin (Tamil Nadu).

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Project Khamgaon & Parkhed: As a result of Watershed management intervention, the total land under cultivation during the second crop season is approximately 470 acres. The annual income of the farmers in the vicinity of the project has increased from an average of INR 36,000 to INR 85,000, per farmer per annum.

Project Silvassa: More than 67 million litres of water have been harvested since 2004. Additional income of INR 160 lakhs was accrued to villagers during project period

Puducherry: In partnership with Dhan Foundation, eight village ponds were renovated. Rainwater harvesting storage of 22300 cu. m has fulfilled the multiple domestic needs of 4519 households. 346 acres are now irrigated due to the rejuvenation of ground water

Gundar Basin: Launched a water conservation project in Gundar Basin (Tamil Nadu) in partnership with DHAN and NABARD in 2010. It will enhance the livelihood of over 20,000 farmers and aims to renovate 250 irrigation tanks.

Driving Water Conservation through Business

HUL will ensure that its manufacturing processes reduce water usage, reuse water, recycle water and recharge rain water.

The R&D teams will focus on innovation that will help reduce consumers reduce water usage in consumption of our products.

Use product packaging as a medium to raise awareness on water conservation.

Ensuring 100% sustainable sourcing of agriculture raw material by 2020, using water as one of the indicators.

Reduce water use in our manufacturing process

In 2010, we reduced water usage in our manufacturing operations by 36% measured on per tonne basis over a baseline of 2004. More than 75% of our manufacturing sites are zero discharge sites.

More than 50% of our manufacturing sites have rainwater harvesting facility (to scientifically recharge the underground aquifers or store and reuse the rainwater from the catchments). As of now, five Hindustan Unilever sites have the potential

to return more water to the ground than is being consumed by them.