Analysis of the competition: how to stand out?

H

undreds of existing brands of toothpaste occupy the French market and as we mentioned earlier the bestsellers are (in order of market share) Signal, Colgate and Aquafresh. 

The toothpaste market is a mature but still growing market and the marketing strategies of the main competitors is all about improving product quality, adding new product features, new sorts and flanker products, entering new market segments, new distribution channels and so on, to strengthen the firms competitive position.

The toothpaste industry is one typical model of a monopolistic competition this means that it’s a cross between a perfectly competitive market and a monopolistic market.
Each firm produces a toothpaste which is differentiated (i.e. different in character) from all other toothpastes produced by the other firms in the industry. Thus one firm might produce
a red, white and blue toothpaste with a spearmint taste, another might produce a white toothpaste with a wintergreen taste. This assumption is similar to a monopoly which produces a unique (or highly differentiated) product. Under monopolistic competition, each firm produces a differentiated product. Products are close substitutes but not perfect substitutes. The toothpaste market is a market with many competitive rivals, with similar products that are aimed at the same customer group.

The differentiated products are imperfectly substitutable in consumption. This means that if the price of one toothpaste were to rise, some consumers would switch their purchases to another toothpaste. From the perspective of a firm in the industry, it would face a downward sloping demand curve for its product, but the position of the demand curve would depend upon the characteristics and prices of the other substitutable products produced by other firms. This assumption is intermediate between the perfectly competitive assumption in which goods are perfectly substitutable and the assumption in a monopoly market in which no substitution is possible.

The barriers to entry are also relatively low making it easy for new competitors to get in the game.  Typical for a monopolistic competition is that there is free entry and exit of firms in response to profits in the industry. Thus if one toothpaste company are selling well and making profits on a type of toothpaste, it sends signals to the competitors to open up or start selling similar toothpaste.
Thus, the market is fragmented and the brands have a hard time to differentiate. As soon as you have come up with something new, the competition will be there and have their own versions of it, right next to you in the store.

How do they differentiate?
We have earlier talked about how a brand can differentiate their toothpaste, on feelings,  product features like tastes and so on. Many of the larger brands seem to have a similar strategy with large amount of product offerings, trying to offer a toothpaste for every age and thinkable problem that could occur. Aquafresh have many toothpastes for children and has games and things for younger children on their homepage, and Colgate talks about what happens with the teeth when you get pregnant, just to mention some examples.

Then we have the “outsiders” with a more focused differentiation strategy, trying to find a niche and compete on a different term.

For example Sensodyne toothpaste, that also is owned by GlaxoSmithKline like Aquafresh,  has a more serious health- and medicine approach. Giving a solution directed to health problems like prevention of brown teeth for smokers and gum disease, and protection of sensitive teeth. Vademecum is saying that its a little bit stronger than other toothpastes, and that children should use just a small amount, giving the impression of that it is more of a medicine than just a toothpaste with natural ingredients. And we also have the specialized toothpastes that are sold only in pharmacies,  giving them an exclusive distribution to make them seem more medical and exclusive. We also have Email Diamant,  portrayed as the “cosmetic toothpaste”, that concentrates on the cosmetic angle of it, making toothpaste sound like a small surgery enhancement. Looking young and fresh with whitening of your teeth, without going to a professional dentist and getting them whitened. Also Denivite concentrates on a “professional whitening at home”- approach.

A new differentiation key driver that  is also emerging in the toothpaste market,  is for toothpastes to be more organic, vegetarian and more green and eco friendly.

 Source: http://internationalecon.com/Trade/Tch80/T80-5A.php

There is also the in-store brands that have more of a “no frills strategy”, Carrefour, for example, is offering its own “BIO”- toothpaste, for a smaller amount of money than the similar competitors.
At a first glance many of the large competitors seem to have similar strategies, but as you can see there is still room for differentiation. Later on in the blog we will concentrate on 5 brands and go in depth, and show you how each of them are trying to keep their differentiation in this large market.

Sources:
http://www.colgate.co.uk/app/ColgateTotal/UK/faq.cwsp
http://www.ooshop.com/

Keep on Smiling

Source: Google Image

Very Different?

T

he market of toothpaste is a difficult and competitive one. In this article we will try to point out some methods that brands are using in their way of differentiating themselves from their competitors.

Today brands are trying packaging the toothpaste in fun tubes and tactile squeeze bottles. They are managing to mix it up and differentiate, but still it is the traditional paste that is the most desirable among customers, and why this packaging is the most common. It is hard to enter the market with something groundbreaking which will not be met with too much skepticism. However, producers are continuing to try in several ways.

To illustrate; when Colgate targets the kids segment, it tries to differentiate itself from other brands adding some shining effects to the paste, while changing the color of the paste to gold.
In addition, it changes the packaging, designing the tubes with figures and drawings and linking them up in connection to the toothbrushes, which is shaped like different characters. Kids get excited when they see more bright colors, things that sparkle and cartoons. Besides, we find that the taste is a bit sweeter than traditional toothpaste, which often can have a strong taste that most kids would dislike.

Since the toothpaste was adapted into tubes instead of jars, the size has been the same. With exceptions for travel sizes and small tubes for kids, the size is standardized to 100 ml. This is a perfect size that is very convenient and should be kept. But one thing that has been an issue for the consumers is the fact that we never seem to get everything out of the tubes. One attempt to change this is the design of Sang Min Yu and Wong Sang Lee. SavePaste tries to improve the packaging in two areas; eliminate the hard-to-squeeze dead space and minimizing toothpaste residue left inside the container. It means that the consumers can reduce waste and manufacturing price plus encourage recycling. In addition, they have a user-friendly design so that people easily can adopt it. 

Source: http://www.trendsnow.net/2011/07/save-paste-toothpaste-packaging-design.html%20

For the taste, there is a major difference between kids and regular toothpaste. Companies try to lure children to make them brush their teeth with sweet toothpaste and put the emphasis on the benefits of their brand to make adults buy.

As for the coloring goes, it has been mentioned earlier in this blog that toothpaste colors are usually light. We can all agree that black toothpaste do not seem that appealing. Some toothpastes are combining different colors for example red, white and blue like Aquafresh that is known for its three colors. When doing this, brands get three different tastes, three different colors and three different ingredients in the same tube. Actually it is very cleaver because we, as a consumer, automatically assume that they get all in one tube, “the total package”. Other brands are combining different colors to create something unique to their toothpaste. Further, some pastes are also light green or light purple, but these colors are associated to whitening process.

Hereafter, we will list three different examples of how brands have approached the task of differentiating themselves from their competitors.

First, we look at Aquafresh Iso-Active Whitening. Aquafresh introduced this breakthrough technology in toothpaste in 2010. In 2011 it won consumer survey on product innovation in USA. This toothpaste was a brand new approach to total oral health and is meant to compete with Colgate Total. Further on, Aquafresh Iso-Active is delivered in a revolutionary canister. The paste inside as actually a gel that transforms into a deep-cleaning foam and disperses active ingredients. Aquafresh said that this provided the best way of cleaning that had ever been possible.

Source: http://www.aquafresh.com/IsoActive.aspx

Second, and the most daring idea for a toothpaste brand came from Hattomonkey. They created a brand name and packaging design for the conceptual new black toothpaste Noon.

Source: http://popsop.com/5544

With this minimalistic approach they showed that it is possible to do something completely different to stand out.

Finally, we just want to include two examples of how to stand out from competition via taste... Though we doubt it would be a success!

 



http://www.mcphee.com/shop/products/Bacon-Toothpaste.html





http://ytie.com/cupcake-toothpaste/

To conclude, all these four products above illustrate that toothpaste manufacturers are trying to differentiate themselves in different ways. Some play on colors, others on texture while some even play on taste. Again, it is all about standing out and on a mature and competitive market, but it is not an easy task to do as people have a strong view about how should a toothpaste be. Differentiation could be accepted either by children or by youngsters that are fond of new trends. However, it is exciting to follow new trends on the toothpaste market, that are sometimes quite strange, sometimes totally amazing...

Until next time & Keep on smiling

 

Source: Google image

Bad Breath DetectoRRRrrrr

H

i there!
We could not help showing you an incredible video found on YouTube on Iphone’s most hilarious application called « Bad breath detector ».

(get it on http://www.orabrush.com/bbdetector/)

Smile, it’s nearly the weekend!



Source: http://www.likecool.com/take_a_smile--Pic--Gear.html

Sensational toothpaste!

V

arious emotions and associations are linked to the toothpaste one chooses to buy. Brands use them to influence the consumer’s perception. When looking at the toothpaste market we have to be aware of the potential of creating groundbreaking new methods to suggest emotions. In the current market situation, the different types of toothpaste evolve with trends. In terms of colors and packaging, most brands use some nuances of light and dynamic colors; white, light blue, grey, light green and so on. They use these light colors because the white is usually associated with cleanness, healthy living and purity for example. All the ingredients for a white smile! 

Through different campaigns, toothpaste gives the sensation to bring Social Recognition. It also falicitates seduction and enables to take care of our Health. Finally, it gives the impression of a professional service at home.

Source: Google Image

• Fresh Sensation

The use of toothpaste is linked to the feeling of freshness and cleanliness. After brushing teeth, we usually feel good and even more self confident. This sensation is translated in marketing through colors, often white or clear green. A wind blowing during the TV commercial also inspires the idea of freshness to the consumer.    

 

Source: Colgate.fr

• Social recognition and seduction

The smile is often associated to seduction. This is the first charm asset and the mouth is an evident contact point in a relationship. Beauty and self insurance are often added effects brought by toothpaste. As Colgate white now or Email Diamant do, brands make appear that power in their commercials. Showing young people with beautiful smile able to seduce in a couple of second, or a couple dancing with a seducing smile, in a romantic atmosphere, is a way to put toothpaste not only in the boosting sex appeal product category, but also in the beauty care product one, as well as make up. 

Pub email diamant pub 2007 par jean_luc_arsene

• Health

In consumers' imagination, a white and fresh smile clearly expresses a general good health. As a matter of fact, teeth whiteness indicates a hygienic lifestyle. It also fits with the trend of having the healthiest way to consume, to live and, of course, to take care of the body. Brands such as Weleda, Boiron or Rembrandt are exactly on this positioning.

Source: http://www.pharmaboutique.net/parapharmacie-guide-sante/5874-Boiron-DENTIFRICE-HOMEODENT-SOIN-DES-GENCIVES-SENSIBLES-CHLOROPHYLLE.html

That is why the pure white color - symbol of cleanliness, and the green one - that stands for healthy characteristics as well as environmental considerations, are great partners for brands. 

The emotion of self security conveyed by the healthy impression also concerns products designed to the families. Within this target, the mother chooses the toothpaste with care in order to give the best to her children for example.

Furthermore, when commercials or packaging promises make teeth healthier and for a longer time, it is a way for brands to remind to consumers their fear of the dentist. This perspective to be able to visit the dentist later is quite good news for the customer!

• Professional service at home

Using precised, scientific and medical terminology such as "antibacterial", "chemical erosion" or "fluoridated", and showing people with white coat, explaining a scientific draw as a clear and demonstrated phenomenon, is a way for a brand to appear as a specialist. Colgate, Sensodyne and Fluocaril are examples of brands using this way of doing to convince customers. As a result, the latter are more willing to trust and pay for these specialist brands. Another strategy to appear as a specialist could be to sell toothpaste in a drugstore. As a matter of fact, an expensive product that we can buy in a drugstore, where 41% of the specialized toothpastes are sold, is probably more controlled, better for health and as efficient as medicine. (Source:http://www.shopmania.fr/soins-de-vous/p-super-white-duo-dentifrice-kit-gel-2-seringues-blanchiment-des-dents-25886302 + http://www.alleedesaffaires.com/dentifrice-denivit-p-81.html)

Source: Google Image

To differentiate, brands deliver these diverse perceptions and sensations to the customer and play on his or her imagination. Toothpaste objectives and effects are adapted to the target to produce the right emotion to the right target.

Sources : 

- The Psychology of the everyday things, Nordman DA

- “Appeal to consumers’ emotions, firms told”, Travel Trade Gazette UK & Ireland, 06/18/2010 
- http://www.wk-pharma.fr/publication/upload/PHM84_MARCH%C3%89S.pdf

Let's get in touch!

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ore than half of French people go to bed without brushing their teeth! That is a disgusting reality but it sounds good to toothpaste manufacturers, as it represents for them huge opportunities to increase sales and profit.

It is essential for a company to reach its customers via different means, and be more attractive than competition especially in the very competitive toothpaste market. Hence, how can companies reach their final customers and make them buy their products among large competition? How do customers experience their brands? What perception do they have of their brands?

Touch points are opportunities for companies to enter in contact with customers, and they can mould people’s perception of the brand.

In average, people spend 3 seconds to purchase a toothpaste in a supermarket. This reality puts the emphasis on the importance of the packaging and the display, but also on the necessity to convince people before the purchase – when they are at home by commercials, by exhibitions and dentists advices.

Thus, the most relevant touch points for the toothpaste market are dentists/chemists advices, testimonials from friends or family, exhibitions, educationnal programs and incentive actions, commercials, packaging and price.

Let’s go deeper by giving examples!

Ads often show scientific experiments to explain how can their toothpaste prevent you from having sensitive gums and cavities and give you fresh breath. They also use people giving their testimonial about the brand.

For the whitener toothpaste product segment, brands play on seduction. A white smile is beautiful and attractive. Colgate is going even further creating Colagte Max White for young trendy grils segment. Their positioning: white smile is the best accessory you can "wear".

 

Here is a good example of what we’ve said above: you can see the actress Emily Procter from CSI Miami. She is from a scientific police unity in the series and explains in the ad why colgate Max fresh gives you fresh and cool breath. The ad uses similar scopes and frameworks to the series.

 Colgate – your best accessory is your smile

Companies also use tools such as educational programs, incentive actions or exhibitions to show the importance to have a good oral hygiene.

> Signal does national educational programs with its two heroes Pablo and Olivier - a father and his child - who show that brushing teeth can be a moment of complicity instead of a conflict.
> Colgate has done an exhibition in Paris called “The future for your teeth” - with free oral screenings & 200 000 samples handed-out.

> Aquafresh did a little test on teeth in hyper/supermarkets in 2008.

Packaging is also important as it is the first thing people see when they grab the product. As companies only have 3 seconds to convince, an attractive packaging can make people buy their brand and increase sales.

As we have seen, all opportunities to enter in contact with customers are important and will condition their perception of a brand. It is essential for a brand to manage well its touch points to reach its customer and make profit.

See you later

And do not forget to brush your teeth!

Source: http://wells4thgrade.wikispaces.com/How+to+Brush+Your+Teeth

Sources:  
http://www.formalifesciencemarketing.com/10-touch-points
http://www.missionsignal.fr/?gclid=CNyLqtvCtKwCFQRTfAod4lzbGw
http://www.colgate.fr/app/Colgate/FR/HomePage.cvsp

How toothpaste is made?

 

You can find more information about the history of toothpaste by clicking here!

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?

Source: http://www.gcimagazine.com/marketstrends/segments/oralcare/38826392.html?page=2

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."