Friday, October 21, 2011

Introduction

 


“You go to an agency and say: “I need to increase toothpaste sales, what should we do?” and the agency comes back and says “You should just increase the size of the hole, and of course you will have a lot more toothpaste!”

T
his interesting video and this funny quote show us how complex marketing medical oriented products like toothpaste can be. Some customers buy this product hoping that it will help them regarding a health issue (teeth sensitivity, cavity prevention, bad breath, fragile gums...). Consequently, customers not only buy and use it but expect some concrete results. It may be a "common" product but it is not a "simple" one to sell!

Firstly used in Egypt, toothpaste has gone through several modifications before acquiring its final form. It is a very specialized product that is absolutely necessary. Indeed, you need it for your personal wellness but also for your social integration. Would you like to talk with someone who does not use toothpaste... Consequently, you do not need to convince people to buy it (they have to) but you need to make them buy yours! 

To summarize, toothpaste is a relatively cheap Fast Moving Consumer Good that belongs to our daily life. We buy it on a regular basis and it is a low involvement product. Customers can switch easily between the different products available on the market as it is not a very risky purchase. Consequently, companies, more than ever, need to put much effort in terms of marketing to attract the attention of customers, retain them and prevent customers attrition.

Based on datamonitor.com report "Oral Hygiene in Europe", we notice that "Toothpaste is the largest segment of the oral hygiene market in Europe, accounting for 53.5% of the market's total value". After a stable growth between 2005 and 2009, the report informs us that "In 2014, the European oral hygiene market is forecast to have a value of $11,062.4 million, an increase of 14.8% since 2009." Consequently, we notice that this is an interesting market to study, full of innovative products and growing slowly but surely. 



Based on this article about the French market, we can see that pharmacies sell:
> 40% of toothpaste dedicated to "sesitive gum" against "gingivalvia"
> 22% of toothpaste dedicated to "anticavity"
> 17% of toothpaste dedicated to "sensitive teeth"
> 8% of toothpaste "whitening the tooth"
> 13% of specialized toothpaste..
This is a very concentrated market with a strongly segmented offer. You can find several products in the pharmacy (depending on the size of the shop) but they are all very specialized.

On the contrary, super/hypermarkets offer a crazy variety of toothpaste from different brands. 
Based on this article about the French market, we notice that best sellers are:
1) Signal with 30,3% of market share
2) Colgate with 16% of market share
3) Aquafresh with 10,7% of market share

This kind of retailer offers so many different choices in the toothpaste linear that many customers do not know which one is made for them. The three brands above, present in the supermarkets, usually focus on innovation and sophisticated products to be visible and appealing; they need to avoid customer paralysis facing the shelves. We will analyze how the battle between the brands is organized in the supermarkets later in the blog.

The main questions raised in this blog are:
> Which techniques and strategies do companies adopt to convince customers to choose their products? We can think about the professional and authority based slogan launched by P&G for the toothpaste that "protects these areas dentists check most"!
We can also think about the "Whiter than white" partner-in-seduction oriented toothpaste strategy.Companies use different strategies in order to have a competitive advantage. We are going to analyze this idea later in the blog.
> What do companies use to create a strong link with their customers? Which kind of techniques are used to maintain loyalty: TV commercials, exhibitions, games, virtual social networks...?
> How do companies build a brand and adapt themselves to the special needs of customers? Are there any outsiders able to catch the attention of a niche market?


Stay tuned for more information!

Source: Google Image

Welcome on our blog!



"A smile that is clean and healthy" said the little worm... that's what we all want!

We decided to begin the blog with a short qualitative study with the blog writers. Please find below the results of the questionnaire:

GALINA
1- What is the last toothpaste that you bought? 
"Signal Integral 8 - Complete"
2- Do you always buy the same one?
"I am used to buy Colgate Total (I change between different "total" toothpastes) and this summer I tried different toothpastes (fluocaril/sensodyne/Colgate herbal) and I'm not very satisfied because my breath is not better than it was with Colgate total. I bought a Signal paste also, but I have not tried it yet. If I don't like it, I will go straight back to Colgate Total.
I like Colgate total because they lead the market and are quite professional, they always invent something :) and their product - Colgate Total is the best for me to date as it is for everything (not specialized)"
3- Who buys the toothpaste in your house and how does it influence the choice in your opinion? 
"I am attracted by the packaging."
4- Are you interested in toothpaste advertising and why?
"Not really. Nobody would like to watch it for hours, though some brands manage to get out of the box. My favorite is Colgate Max White with the girl changing her accessories."
5- Are you interested in innovative toothpaste brands and why? 
"Yes I am, because I think it is important for my oral care (I would like to try Aquafresh isioactive but I’m afraid to be disappointed - the price is high)."

MAXIME
1- What is the last toothpaste that you bought?
"The last toothpaste and I bought is Signal Complete 8."
 2- Do you always buy the same one?
"We change very often when we buy toothpaste. We are not loyal to one toothpaste. However, most of the time I can say that we choose the "Total" or "Complete" one. The more brand benefits it has, the better it is. Brand reputation plays an important role in the choice as we always buy a Colgate or Signal toothpaste. We stick with the famous brands."
3- Who buys the toothpaste in your house and how does it influence the choice in your opinion?
"My mother buys very often because I still live with my parents. She tries to pick a toothpaste that is adapted to the whole family. Indeed, we do not use several toothpastes depending on the benefits."
4- Are you interested in toothpaste advertising and why?
"I would say I only care about the advertising campaign when the product is very innovative and I do not know it already. Otherwise, when you see another advertising for a "Max White toothpaste" or "Pure Fresh breath", I do not really care about it. Today, these are basic features of toothpaste."
5- Are you interested in innovative toothpaste brands and why?
"I am looking forward to discovering the toothpaste of the future to be honest. I hope I will find a good toothpaste for my gum problems. I do not think that mainstream toothpaste are able to cure very specific problems. I am more interested in discovering medical oriented toothpaste sold in pharmacy."

ELOISE
1- What is the last toothpaste that you bought?
"The last toothpaste I used is Colgate (Total)."
2- Do you always buy the same one? If yes please explain why, if no please explain why.
"I almost buy the same brand every time: Colgate. But I don't really think about which sort. I often go for the benefits of white teeth or fresh breath. Sometimes, I just pick the "total" of some sort so that I know it has all the benefits. Why I choose Colgate? Well, I think it’s because its familiar and I grew up with it. When I'm in the store I just buy it automatically."
3- Who buys the toothpaste in your house and how does it influence the choice in your opinion? 
"I often do. My boyfriend doesn't care that much about which brand I pick, and lets me decide. If he buys toothpaste he will probably also buy Colgate because he is used to this one."
4- Are you interested in toothpaste advertising and why?
"Not really interested.  I may buy a different sort, when it’s on sale in the store (3 in one package for example)."
5- Are you interested in innovative toothpaste brands and why?
"Not really… I feel happy with the Colgate brand; I know what I’m getting."

KRISTOFFER
1- What is the last toothpaste that you bought?
"I bought a Colgate Total Anticavity Fluoride and Antigingivitis Toothpaste with Whitening Gel."
2- Do you always buy the same one? If yes please explain why, if no please explain why.
"I always buy the same toothpaste due to several reasons. It has a good taste, I feel it’s the best, and more importantly, it works. Colgate is a safe brand, you know what you get and with the Total paste you get everything."
3- Who buys the toothpaste in your house and how does it influence the choice in your opinion?
"I always buy my own toothpaste. My mother has previously bought some other brands but that has not been successful. That is why I keep going back to Colgate, again, I know what I get."
4- Are you interested in toothpaste advertising and why?
"Not really. I have found the brand that I wish to use. But if it by any chance should appear a good advertisement for a brand I might be tempted to at least try it out."
5- Are you interested in innovative toothpaste brands and why?
"I pay attention to the market and look at new products that get introduced. I do this simply cause I want the best for my teeth. It will be hard for me to change from Colgate but if something groundbreaking new toothpaste get launched you never know."


CAROLINE CHARLOTTE
1- What is the last toothpaste that you bought?
"Two weeks ago, I bought Colgate Max Fresh. I like its freshness…"
2- Do you always buy the same one? If yes please explain why, if no please explain why.
"I almost never buy the same. I’m not faithful at all ! I am completely influenced by the packaging and, of course, by the advertising. If a new product looks nice I usually try it. My limit is the price, I wouldn’t buy an expensive toothpaste… In the end it's only toothpaste."
3- Who buys the toothpaste in your house and how does it influence the choice in your opinion?
"Sometimes it’s me and sometimes my boyfriend is responsible. What is sure is that we are not attracted by the same product. He tends to choose depending of the taste whereas I’m very influenced by the packaging."
4- Are you interested in toothpaste advertising and why?
"Yes I am! The advertising is the only way for us consumers to have an idea of the product before testing it. It’s supposed to translate the values supported by the brand and by the product. I don’t completely trust the advertising to choose my toothpaste but I like brands which create nice advertising and cultivate nice universes."
5- Are you interested in innovative toothpaste brands and why?
"Generally, I’m interested in new products. However, in my opinion, innovation in toothpaste is not the main criterion. This product should stay simple."