Creating A Market for Herbal Toothpaste Herbi
Big Question What is the right marketing mix for Herbal Toothpaste – Herbi?
Case Study Methodology • Sample Enquiry method • • 25 Consumers were selected at random Administer questionnaire on 25 consumers Visit a market place, preferably outside the grocer or a chemist Interview the seller on the general selling trend shown by the product in last two years.
Product Details • • • Year of establishment: 2002 Places of distribution: Delhi and NCR Price: Rs. 62 per 150 gm. Target customers: Middle and upper class, of all ages. Channel of distribution: The product reaches through an agent and wholesaler to the retailer.
Analysis of Survey No. of people aware about Herbi 6 Source of information about Herbi Newspapers and Magazines Price of toothpaste expected by customers on an average No. of people weighing quality more than price Rs. 40 per 200 gm 5 No. of people weighing price more than quality 20
Analysis of Survey 10 to 25 yrs 26 to 35 yrs 36 -55 yrs 0 3 2 Popularity of the product Price (in Rs) suggested (per 200 gm) 40 Prefer quality at competitive price Packaging facilitates branding 45 8 Prefer quality at any cost 6 0 12 40 5 8 5
Graph – Customer Preference Sample Size: 25 customers
This is Herbi’s market share!
Shows a declining trend in each quarter, it’s a serious issue…
The Market Overview • • Competition is quite low in this segment, having only two companies producing the herbal toothpaste. Moreover, market studies show consumers prefer using conventional methods of dental care such as datun etc. over toothpaste The market is currently flooded with toothpaste that are non-herbal (fluoride, medicated etc) and to break the brand loyalty for these toothpastes is challenging.
The Market Overview • • • Existing market leaders are making huge investment on promoting their products to the targeted customers. Firms have also been observed to modify their products to reach to the greater number of audience. Firms are pushing their sales through incentives of free gifts with every purchase and “Buy one, get one free” schemes.
The Challenges • No tangible differentiation has been made in the product, though they are significant for the customers, assists facing competition, encourages non-price competition. • The market segmentation for the product is poor. Customer study in each segment seems to be poor. • The market survey reveals, Herbi has very weak promotional strategy.
The Challenges • • No research on the packaging of the product. Marketing of the product is not strong enough to attract the customer. • The name of the product does not highlight the features of the product. • Price decided without any research about the economic status of the target consumers.
The Mantra…. . • The name of the brand should be highlighted with prominent fonts and colors to make it significant. • Research on targeted consumers and plan accordingly Do not repeat a mistake to build a brand by trying to appeal to everyone. • Herbi should be simplified message. presented with a
The Mantra…. . • • • Remove the agents and the middle men. Minimise the channel of distribution to reach consumer. Shorter the channel, lesser the cost and better the control and check on losses. Range the product price somewhere between Rs. 40 – 45 per 200 grams to remain competitive. Use Advertisements, hoardings and pamphlets as a medium to get closer to your target consumers.
The Mantra…. . • Study shows lesser penetration among young generation. Hence, greater emphasis to target younger generation. • • More Sensitive about packaging. Colorful packaging, increase the font size of the brand name Paste three important features of the product on the package. Gradually after gaining acceptance, Herbi can create a brand loyalty through electronic and print media as well.
Have Shorter Channel to reach out to Consumers! http: //www. tutor 2 u. net/business/images/customer_marketing_channels. gif
To determine Right Marketing Mix, We have to • Identify the target customers • Discover and understand the need and desire of the customer • Design an appropriate mix of Product, Price, Promotion and Channel • Test this designed mix with a small group of customers. Reaction of customers will indicate the adjustments in the mix • After the necessary modifications the mix is adopted and put in to use. It is evaluated from time to time and adapted to the changing environment
Remember, the Mantra to sustain in the Market • To consider the market changes • To be vigilant about the competitor’s marketing mix • To review marketing mix periodically and change it as per the market trend
Thank You
Скачать презентацию Creating A Market for Herbal Toothpaste Herbi
cdcdcde8feb7ef9bc7f5849321985ce9.ppt