Marketing Strategy Assignment Toothpaste

tradeing Strategy Assignment Toothspread executive director SUMMARYThis report is ab come out to offer a recrudesce w be HERBAL TOOTHPASTE in the UK food mart from the Middle-eastern Company and to acquire a good grocery sh be. Tooth ranch market of United Kingdom is divided into ii major segments one is the Gel Paste market and the other is the Opaque market or folderol Based Paste market or popularly known as the Paste or alveolar consonant cream market. The market place for Oral Hygiene in the UK Increased Between 2002-2007, Growing at an ordinary Annual Rate Of 3.2% (http//www.encyclopedia.com/doc). Total UK oral c be market role n betimes 840m. HERBAL TOOTHPASTE argon made from natural ingredients and most argon even certified as organic and many consumers cede started to switch all over to natural toothpastes in club to avoid synthetic and artificial flavors that ar ordinaryly found in regular toothpastes. HERBAL TOOTHPASTE induce returns ranging those are also rich in atomic number 20 and other minerals which makes the teeth stronger and forbids cavities. HERBAL TOOTHPASTE impart be imported from Middle Eastern Company and marketed at a reason open price compare with locally produced toothpaste much(prenominal) as Colgate, Kingfisher etc. by a research of UK market the objective of this report is to identify the print market with Marketing strategies, target market segmentation including marketing smorgasbord ( growth, price, place and furtherance) which is an important factor for an organization in order to propagate and develop its market. To explore how the target market perceives the HERBAL TOOTHPASTE and how the company tries to influence exposure, attention and interpretation of the product. Here, the scene of the report allow for be narrowed only to HERBAL TOOTHPASTE. With an effective marketing strategies the proposed product will increase its reputation day by day and if any challenges will be studied and an alyse so that it can be predicted in this economic climate what to do to sustain the market share and remain more(prenominal) hawkish.INTRODUCTIONHERBAL TOOTHPASTES are made from natural ingredients. few toothpaste is still approve as organic. From our study and research it is found that many customers pass water taking place to change over to organic toothpastes to avoid synthetic artificial flavours which are normally found in regular toothpastes.( http//www.herbaltoothpaste.net) Beca engross of the change magnitude demand of natural products, herbal toothpaste will be the perfect timing of demand. This kind of toothpaste does not gather in dyes, artificial flavours or chemicals and this is one of the mainly general reasons that consumers claim when switching from ordinary toothpaste to herbal toothpaste.Some the great unwashed would rather use herbal toothpaste for their oral hygiene and variety of reasons. Many people genuinely opting for them since they are not tes ted on animals. Others, devoted to guard the environment or who are subtile to the ingredients in usual toothpastes, are attracted to the reality that they urinate no artificial colours or flavourings. stack who use homeopathic medicines are also attracted to toothpastes that dont contain mint as practitioners state the Herb whitethorn hamper with the military capability of their treatment. (http//www.dailymail.co.uk/health). herb tea toothpastes are also fluoride-free, which appears to be other frequent grounds wherefore some individuals prefer this category of toothpaste more than regular one. Also some people have allergies or other health concerns who whitethorn wish to think about herbal tea 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 most commercial toothpaste brands. Classic ingredients in herbal tea and organic toothpastes include herbs with traditional historical uses like myrrh to help destroy plaque-causing bacterium chamomile to reduce gum inflammation Echinacea to inspire the immune system sage and rhatany to simplification bleeding and essential oils like peppermint, to add flavour and ease pain and irritation. Some other common raw existents for these products include clove, ginger and tea tree oils. Some common ingredients are eucalyptus, Chamomile myrrh, clear-sighted and some other less known plants much(prenominal)(prenominal) as Choti ilaychi, Lavang, Neem, Saunf, Khadir, Babool,. Herbal toothpastes also contain oils such as oils of coriander, ginger, lemon, and spearmint. Eucalyptus is tho one of the most common ingredients in herbal toothpastes, mainly for its properties of white and prevents stained teeth. Myrrh is used to prevent gingivitis and bad breath and Chamomile and keen-witted are verbalize to be helpful in soothing mouth ulcers, toothaches and inflamed gums. merchandise ENVIRONMEN T ANALYSIS organizational success depends on sensing and responding to shifting conditions the handicraft environment. At the most basic train, these represent Opportunities and Threats. Lowly, A. and Hood, P. (2004). strategic planning effects the organization in polar ways. To review environment of any Market we direct to understanding of connection with various problems and issue with one another and the effect of that particular areas. To illustrate the UK international environment PEST analysis is constructive. It includes the aspects those are political ( tax revenueason policy, foreign trade regulation, government stability), economical (unemployment, useable income), social (life style change, level of education), technological (government spending on research, speed of engineering transfer), environmental (companys duty to society) and legislative (code of practice, access to raw materials) factors.3.1. PEST Analysis of UK Market EnvironmentThe PEST analysis is a fr amework that dodge consultants use to scan the external micro-environment in which a form operates. PEST is an acronym for Political, Economic, sociable and technical factors. Typically, these factors are outside the control of the retailer and may either be threats or opportunities. These factors may vary within the regions of a country and would most definitely vary from one country to another. ( Pradhan,S.2007.p.111) harmonise 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 see up by consideration of how a business should respond to these influences.As Pradhan,S.(2007) described in sell Management, 2nd editionThe PEST factors that propel the retail sectorPoliticalEconomicSocialTechnologicalPolitical stabilityRate of economic growthIncome distribution of the populationLevel of technology use in the sectorGovernment policy towards investment in the sectorMoney policy surface of PopulationPenetration of internetLabor lawsLevel of TaxationDemographics of the populationPenetration of the mobile technologyConsumer Protection Restriction on the entry of foreign players in the marketConsumer confidenceRate of population, long time 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 virgin 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 career to highly 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 int roduce new tax policies on leisure could create a direct impact on the Herbal Toothpaste Import.Economical other environmental factor is economic, which can make a enormous effect in the business of Toothpaste. before long UK is in front of a great economic down turn. With the present condition financial, employment,, mortgage sectors are deficiently effected . Earnings of people have decreased and the inflation rose up. In this web site people dont spend money for their residence and cant do proper savings. Due to current market situation any new products may effected in their business. The international 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 move d towards changes. Our products have enlarged the quantity of FMCG products like HERBAL TOOTHPASTE available for the customers. Nationalized retailers are gradually reticent 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 accompanying attitudes and orders. Customers are becoming much more aware about health and estimablety 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 snapper, upper middle and upper class families in our target market. They are the relatively conscious part of the society, with both the penury and the purchasing power necessary.TechnologicalToothpaste is one of the most popular and fast growing products in UK market. engineering science is a irregular macro-environmental that has affect ed the improvement of FMCG products. The customer and the company are being upbeated as the technology provided new era in service. Technology helps a lot to rises the customers satisfaction. The company will use the red-brick high technology in production and all HERBAL TOOTHPASTE outlets will use the wireless devices, internet, skilful scanner, electronic shelf labelling, Radio Frequency Identification, Close Circuit Camera (CCTV), Money paying forge etc. The electronic point of sale and electronic scanner have of importly enhanced the effectiveness of delivery and stocking actions, with requirements being communicated well-nigh in authentic time to the supplier.3.2. Porters Five ForcesPotential EntrantsIndustry Competitors argument Among Existing FirmsSuppliersBuyersSubstitutesThreat of new entrantsBargaining power of SuppliersBargaining power of buyersThreat of substitute products or servicesTo analyze how the business atmosphere is changing the way of the product, the five forces model of Michael Porters has been used here. The warlike five forces have prepared by identifying five original competitive forces which are prospective entrance, threats of substitutes, talk terms power of buyers, bargaining power of suppliers and competition 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 net profit limitations for supermarket chains and suppliers.02Buyers PowerThe more products that become standardized or undifferentiated, the lower the switching exist and and so, 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 worl d producers.03Threat of SubstitutionGeneral substitute is able to reduce demand for a particular product, as there is a threat of consumers switching to the substitute (Porter M, 1980). Herbal Toothpaste will create its own market through huge marketing activities but the conception of similar other products from companies like Colgate, kingfisher, Crest etc.04Threat of New EntryNew entrants to an constancy 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 necessarily to monitor the market as well as ready to face challenges from such arrivals which then gives organisation better strength to maintain its image and truth to its consumers. It is very difficult for the new company to entrance and provide sufficient capital for big arrange costs and extremely 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, growing concentrate of retailer and proper utilization of the formats. Herbal toothpaste may faces competitive rivalry from Colgate, kingfisher, crest. the organisation call fors 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 sensation 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 contain 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 gr oup consists of children up to 14 years of age and their parents and other senior members of the family.Fulfilled Mature, satisfied, comfortable and reflective people who value order, knowledge and responsibility. They are Conservative, practical and look for operationality. For this reason Herbal Toothpaste will be promoted on the earth 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 find 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 four-year-old suburbia. They have young 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 the kids.3.4. DemographicPopulation of Muslims in UK are 1.6 million, 2.8% or total population of UK.Age 5-50Area East capital of the United Kingdom, Tooting Broadway, White Chapel, Bethnal Green72% of Muslims living in East capital of the United KingdomPrice Range 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 distributively element of the mix.PRODUCTNew product development(e.g. Herbal body lotion, body powde r) growth commission(With strong management team) reaping benefits(Made by Natural fresh ingredients)Branding Packaging(Under the perfect monitor of the Company with high technology)PRICECost(Herbal toothpaste will be low cost product comparing with others)Profitability( after(prenominal) 6 months it will be profitable for the company,)Value for money(Herbal toothpaste cost effective products for the customers) combat (The products will be competitive in the market)Incentives (On Bulk purchase)PROMOTIONDeveloping communication mixes(With Company, retailers, end users) advertise management (Company marketing strategy management team collaboration with local add firm)Sales promotion (For distributors, retailers, customers)Sales public relation management (campaign, share in social activities)Direct marketing targetAccess to target market(Easy access all over in UK market)Channel structure (Distribution take are Tesco, Asda, Boots, Sainsburys)Channel management (Through Herbal pro ducts management committee and selective retailers)Logistics (Companys own support)The 4Ps 4.1. PRODUCTProducts are solutions to customers needs. The company (the product provider) needs to make various product decisions, including functionality, 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. Advanced milling raw material make teeth white. Constantly using can protect gum. It gives pleasant refreshing breath. (spec 150gm)Herbal Anti-cavity Toothpaste fix good function of anti-cavity, strengthen teethFruit flavor give mouth pleasant aroma. (spec 150gm)Herbal Tartar dominate Toothpaste Offering silica based white toothpaste which is specialized for controlling tartar. The toothpaste comes with fluoride and without fluoride and it is extremely helpful cavity tax shelter along with refreshing breath. (spec 150gm)Herbal Natural Toothpaste We are engaged in offering supreme lumber 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 snobbish labelling activity on the behalf of our customers. We use latest technology in production and packaging, to ensure that the end product 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 put out- 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 certain 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. PRICEPricing 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 produc ts 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 carefully focus on segmented pricing such as kids products is offered for a low price. On the other hand, it cannot charge the same 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. Promotional pricing also gives the company to penetrate market more effectively. exploitation 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 field place at the right time. Efficient and effective distribution is important if the organisation 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 crown of thorns marketing systems multiple distributor will be used for the Herbal ToothpasteRetailersCatalogues (free and available from the retailing shops)Samples from the partners. upright piano marketing systems will be contractual with our retailers like boots, Tesco, Asda, and Sainsburys.Indirect ChannelDistribution the products into different jobber/retailersStore the stocks in a warehouse or business self 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 goi ng to launch a new product in a new market we have selected some promotional strategies. The 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 find 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 nigh all the neighborhoods of England. Everywhere 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)All 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 rosy on one side.Position Advertisements of Herbal Toothpaste dental cream try to take advantage of every possible position, be it the right, left or pore of a street.Format All advertisements of Herbal Toothpaste make use of a fair format, to make it easier to understand.4.5. division AND POSITIONFreshnessStrengthFamilyPersonalBenefit 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 contest 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 term and short-term memory of the consumer. It is memorized as preventing tooth decay, making healthy teeth and healthy kid.Herbal toothpasteStrong teethStrong kid prosperous kidReasonablePriceEconomicRed colour of packageEnergyNo tooth decayEnjoy lifeHigh qualityHappy FamilyNumber one brandFunForeignFigure Partial Schematic Memory of Herbal Toothpaste (personal views)Bridging Consumer Need and the ProductHappy kidHealthy kidHealthy ToothStrong TeethHerbalToothpasteComplete toothpasteNaturalIngredientsToothpaste preferred by kidHappy FamilyToothpaste for whole familyIntegrated Communication mess upNEEDBENEFITBridged 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 officeChanging 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 comparative 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 fighting germs, comparing with the competitors.Changing the ideal of teeth, with more emphasis on strength than on whiteness and freshness implying that all these would come with strong teeth.Changing Affective ComponentClassical conditioning 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 of account and pencil to the kids.Self-Concept Self-concept is the perception and attitude consumers hold toward themselves. The target group, as described earlier, is families who share collective determine and where family affairs run around the children.Strengthening self-concept Both actual and ideal self-concepts of both parents and children meet with prominence of Herbal Toothpaste. Both the parents and the kid him/herself want to have healthy teeth that would make the whole family happy. so Herbal Toothpaste strengthens the self-concept of the consumers.Forming self concept Self-concept is formed throu gh interaction with the surroundings in very early stages of life. Keeping this in mind, Herbal Toothpaste conducts its school program, as described earlier. Through this program they form the self-concept of the kids that determine health, strength and family. Thus Herbal Toothpaste attempts to form and strengthen favourable self-concept.6. CONCLUSIONToothpaste is one of the largely spirited 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 planetary has mostly resulted from rising awareness of cleanliness and product modernism. New advancements have led to the launch of a potpourri of high-priced, value-added multifunctional products in numerous 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 market, 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 commonly 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