Himalaya Herbal Toothapase

Category & Brand Invovement in Emerging Market

Group ProjectRESHMI RAVEENDRAN

ORAL CARE INDUSTRY

ORAL CARE

CATEGORY

TOOTH

PASTE

TOOTH

BRUSHES

TOOTH

POWDER

MOUTH

WASH

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 of the toothpaste category was

around 9%

Study Results “THE PERCEPTION OF CONSUMERS REGARDING THE TOOTHPASTE CATEGORY”

68% of the Indian consumers who participated in the survey believed that using the right toothpaste was more important than using the right toothbrush.

Most of them believed that oral care was not as important for personal grooming as hair care or skin care.

28% of the respondents brushed twice daily. 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 is just 1 dentist for 10,000 people in urban areas

& 1 for about 0.25 million people in rural areas. Conclusion: 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.

HIMALAYA HERBAL HEALTHCARE

One of the key players in the pharmaceutical field for several decades. Product Offerings in three segments Health Supplements, Personal Care Products & Pain Ointments Unique Proposition: The scientific rigor associated with the testing of its

herbal offerings The company launched Ayurveda based Consumer Products to enter

FMCG Market. Target Audience :- Young Urban Professional population to create brand

awareness. In the early 20th Century it was brought under the Himalaya umbrella brand for with various products like soaps, shampoos, face washes, health supplements, baby products, etc.

By 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

• Started exporting to several countries

• The brand has a positive perception among consumers

TOOTHPASTE INDUSTRY : Segmentation

Pricing

Economy

Popular

Premium

Product Variants

Paste

Gel

Categorization

Freshness

Herbal

Overall Health

Niche

Involvement level with respect to habits and practices

Freshness Herbal Oral Health

Problem Solving

Total Category

0

20

40

60

80

100

120

Brushing Frequency

Frequency of Brushing Once

Frequency of Brushing Twice

1 2 3 4 50

5

10

15

20

25

30

Did dentist recommend the tooth paste?

Did dentist recomment the tooth paste? Yes

Did dentist recomment the tooth paste? No

no

yes

Freshness Herbal Oral Health

Problem Solving

Total Category

0

2

4

6

8

Did you change your tooth paste on recommendation by

a dentist?

Did you change the toothpaste on Dentist's recommenda-tion? YesDid you change the toothpaste on Dentist's recommenda-tion? No

Freshness

Herbal Oral Health

Problem Solving

Total Category

0

5

10

15

20

Did you change your tooth paste to solve any problem?

Did you change your toothpaste to solve any problem? YesDid you change your toothpaste to solve any problem? Notwice once

no

yes

no

yes

Freshness Herbal Oral Health Problem Solving Total Category0

20

40

60

80

100

120

Do you have any oral health problems?

Did you have any oral health problems? Yes Did you have any oral health problems? Nono yes

Findings regarding Habits and practices through out category

• 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

Category involvement

Niche Freshness Herbal Overall Oral Care Total Category0

10

20

30

40

50

60

70

Interpretation of findings

• People agree that toothpaste is necessary for them as depicted by highly negative responses to questions such as “tooth paste is useless for me/irrelevant for me/boring for me”,

• But people display more or less a neutral attitude when they consider the functional attributes except for 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

Components of attitude

• Attitude: Predisposition to behave consistently

in a favorable or an unfavorable way.– Cognitive:

The Knowledge and perceptions that are acquired by combination of direct experience with the attitude object and information from related sources.

– Affective:Consumer’s emotions and

feelings about a particular product or brand.

Significance of attitude components for familiar and unfamiliar brands

• For familiar brands Cognition mediates the impact of positive affect while negative affect has direct impact on brand attitude.

• For unfamiliar brands Cognition plays less role and Affective attitude takes precedence.

Attitude towards category

Freshness Herbal Oral Health Problem Solving Total Category0

10

20

30

40

50

60

70

80

90

100

Category Wise

Cognitive Beliefs Affective Beliefs

Toothpaste

Low Involvement

Variety Seeking Behaviour

Close UP

Dabur Red

Colgate Active Salt

Pepsodent

Marketing Communication by the Competitors

Brand Key Marketing Message Brand Proposition Customer Segment

“Close up”(HUL)

Paas Aao Campaign – “makes one want to kiss”

Freshness ---> Closeness

Young generation mostly College goers, Urban India

“Pepsodent” ( HUL)

“Removes 95% of Germs in just 2 minutes”

Protection + Effectiveness

Family ( Strong inclination towards Children)

“Colgate Dental Cream”

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

Trust + Protection Complete Family Protection from Child to Adult

“Colgate Active Salt”

“Kills Germs to make gums Strong & Healthy”

Problem Solving+ Health

Niche Segment- Consumers with dental problems

“Dabur Red Toothpaste”

“Lets Drive Away Dental Problems”

Curative Niche Segment- Consumers with dental problems

Meswak Herbal Meswak for Complete Oral Care

Curative Niche SegmentConsumers with dental problems

Marketing Communication by The Competitors

Resultant attitudes from the brand communication as per research

Closeup (Freshness) Dabur Red (Herbal) Colgate Dental Cream (Oral Health)

Colgate Active Salt(Niche)

0

20

40

60

80

100

120

Brand Wise

Cognitive Beliefs Affective Beliefs

How does category Involvement affect brand attitude?

• Perception that a toothpaste keeps teeth healthy gets a score of 3.5 in Freshness category w/a in the Niche category score is 3.9

• Perception that toothpaste fights cavities scores 3.29 in Herbal where as 4.0 in Niche

• Statement “the person in advertisement reminds me of myself” gets a score 3.23 in Overall Oral Care w/a 3.83 in Niche

Towards low involvement categories people display a neutral attitude where as towards high involvement categories the attitude is quite strong.

How many Consumers expressed consistency between Strength of Cognitive and Strength of Affective Belief Brand choice (Ref- Exibit 4)

Segment Cognitive Belief(+) & Affective Belief (+)

Cognitive Belief(+) & Affective Belief (-)

Cognitive Belief(-) & Affective Belief (+)

Cognitive Belief(-) & Affective Belief (-)

Freshness 44% 20% 16% 20%

Herbal 40% 24% 4% 32%

Overall Oral Care

32%24%

4% 40%

Niche Problem Solving

68%24%

4% 4%

Total46%

23%7% 24%

Cognitive Beliefs Affective Beliefs

Leading Brand Segment

Consumers with Cognitive Belief (+) in line with brand’s communication

Leading Brand Segment

Consumers with Cognitive Belief (+) in line with brand’s communication

Closeup (Freshness)

80%Closeup (Freshness)

60%

Dabur Red(Herbal)

38%Dabur Red(Herbal)

38%

Colgate Dental Cream (Overall Oral Care)

60%Colgate Dental Cream (Overall Oral Care)

20%

Colgate Active Salt(Niche: Problem Solving)

100%Colgate Active Salt(Niche: Problem Solving)

92%

Exhibit 6 (Ref.)

Himalaya

Recommendations to Himalaya

• Altering Consumer Attitude –Key Strategy

• Educate customers of their needs and then propose how Himalaya will match the needs to get into consideration set of customers

• Strong Emphasis of the benefits will help in developing favourable attitude.

• Changing Attitude of Market Leaders Customer

• Influencing the Affective Component will lead to overall attitude towards brand

• Changing Consumer’s basic Motivational Function (eg: Why herbal tooth, make particular need prominent)

• Association the product with an admired group or event

• Resolving Conflicting Attitudes• Changing Consumer beliefs about the

competitor brand Eg: Even after brushing daily you

experience.. Differenciation can be only achieved

by Value perception of customer than the functional utility

Recommendations…

• 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 (Table 3)

• 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

• 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

– Link Health of mouth with Health of Body

PositioningTarget :Urban demography concerned towards oral healthcareHimalaya’s Active Herbs Herbal freshness & oral healthcarepremium all natural, healthy, oral solution with a herbal product expertise.Solution to oral health problems with a freshness quotient brand character - safe , reliable & caringAwareness of Brand Himalaya & creation of a favourable attitudeChange overall Brand rating: India/World’s Best Herbal toothpaste recommended by Dentists

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 Popular Tier Premium Tier

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

Himalaya

Functional BenefitShould have been here

Safe , reliable & caringAwareness of Brand Himalaya & creation of a favourable attitudeChange overall Brand rating: India/World’s Best Herbal toothpaste recommended by DentistsChange beliefs about Competitor herbal toothpaste eg: Other herbal toothpaste does only…

Proposed Strategies

Thank You Any

Questions??