imc sensodyne toothpaste vishal k_140914

17
Integrated Marketing Communication Project Brand: Sensodyne Project By Vishal Khatokar SCMHRD [email protected]

Upload: scmhrd

Post on 21-Apr-2017

6.425 views

Category:

Healthcare


9 download

TRANSCRIPT

Integrated Marketing Communication Project

Brand: Sensodyne

Project By

Vishal Khatokar

SCMHRD [email protected]

Table of content

Overview of Indian Oral care industry

Oral Care Product Market Share

About Sensodyne

Communications Objective

Communications Objective for the offering

Brand Identity

SWOT Analysis

Touch points of Communication used in the Campaign

How Did the Communication Model work?

Results of the Campaign

Integrated Marketing Communication

Reference & Bibliography

Overview of Indian Oral care industry

The India oral care industry is increasingly becoming competitive with the entrance of many

international players in the Indian market. The industry for oral care in the country has recorded

double digit CAGR 14.4% from FY’2008-FY’2013. The growth in the industry over the last five years was

due to significant the change in the spending power of people on the oral care products, backed by

growing awareness about healthy lifestyle and oral hygiene. Further, the industry has witnessed

introduction of innovative oral care products such as sensitive toothpaste, gum care toothpaste,

sensitive mouthwashes and dental flosses which has aided the oral care industry revenue from

FY’2008-FY’2013. Other factors that have played a vital part in the growth of oral care industry are the

sizable increase in the population of the country and augmented disposable incomes.

The Oral Care Market in India Accounts for About 16% of the Overall Personal Care Market

In India, the oral care sector is segmented into five products categories which include toothpaste,

toothbrush, toothpowder, mouthwashes; others oral care products such as dental flosses and oral care

chewing gum. Toothpaste segment accounted the maximum share in the oral care market in FY’2013.

Leading players in the Indian oral care segment include Colgate-Palmolive India Ltd. (COLPAL.NS),

Hindustan Unilever Ltd. (HUL.BO) and Dabur India Ltd. (DABUR.NS). There are also a few smaller,

unlisted players, such Vicco Laboratories Ltd. and Anchor Health & Beauty Care Pvt. Ltd.

GlaxoSmithKline Consumer Healthcare Ltd. (GLAXOCON.BO) entered the segment a few years ago,

whereas Procter & Gamble Hygiene and Health Care Ltd. (PNG.BO) was the most recent entrant.

As displayed in the following chart, the oral care market in India is dominated by multi-national

Companies (MNCs).

Market Share of leading players in the Indian oral care segment

56%23%

13%

3%

Colgate-Palmolive India

Hindustan Unilever

Dabur India

GSK Consumer Healthcare

Oral Care Product Market Share

In terms of in dental hygiene, India is still a nascent country, with majority of the population still not

having access to modern dental care and is still relying on substances like coal ash and neem sticks.

Traditional materials like neem and tobacco are popular for cleaning teeth in the rural areas. The oral

care industry in India is worth Rs. 5,400 Cr. annually & comprises of: Toothpastes: 60 %: Rs. 3,240 Cr.,

Tooth powder: 23 %: Rs. 1,242 Cr. and Toothbrushes: 17 %: Rs. 918 Cr. Currently, toothpaste enjoys a

country wide penetration level of 55 %, with only 15 % of them brush twice a day. The per capita

consumption in India stands at 127gms/year; one of the lowest in the world.

Also, India’s per capita consumption is less

than half of other emerging markets and

almost 1/4th the amount of consumption in

U.S. Given the low per capita consumption and

penetration rates, toothpaste demand is

mainly being driven by the overall market

growth of 8-10 %. The penetration levels of

dentifrice in the country have been on an

upward trend over the last few years driven by

strong improvements in toothpaste

penetration.

Incumbent Opportunity

The incumbent opportunity in the Indian oral care market can be gauged by these facts:

• Almost one-third of the Indian population does not have access to modern oral care.

• India’s annual per-capita consumption of toothpaste, at about 146g, is among the lowest in the

world.

• Dental cavities (tooth decay) are prevalent in sixty-three percent of fifteen-year-olds and in

approximately eighty percent of adults in the age group of 35-44 years old.

• One out of three Indians suffers from gum problems. Particularly, periodontal diseases (gum

diseases) are prevalent in sixty-eight percent of fifteen-year-olds and in ninety percent of adults

in the age group of 35-44 years old.

• One in every six consumers suffers from dental sensitivity.

About Sensodyne

Sensodyne is an oral health brand targeted at people with sensitive teeth. Sensodyne products are

applied at home by the patient to treat this condition. Sensodyne is owned by GlaxoSmithKline.

History

Sensodyne is a brand of toothpaste that was first sold by Block Drug, a Brooklyn, New York-based

Company established in 1907 by pharmacist, Alexander Block. The toothpaste was first marketed in

1961 as desensitising toothpaste based on a strontium chloride formulation.

In 1980, Sensodyne launched a new toothpaste containing potassium nitrate, a mild local sedative.[3]

In 2000 Block Drug was purchased by GlaxoSmithKline. In 2006, Sensodyne Pronamel was released and

is marketed as toothpaste that protects against the effects of dental erosion.

How Sensodyne Works Sensodyne toothpastes work in one of three ways to relieve the pain of sensitive teeth. Depending on the product's active ingredient - Potassium Nitrate, Strontium Acetate, or NovaMin technology. Potassium Nitrate: The potassium ion in Sensodyne is believed to soothe the nerves inside the teeth. Clinical studies show potassium nitrate progressively reduces the pain of sensitivity over a period of weeks. As long as a toothpaste with potassium like Sensodyne is used twice daily in brushing, the nerve response will gradually be reduced and sensitivity pain is relieved. Strontium Acetate: Sensodyne Rapid Relief contains strontium acetate, which is similar to calcium. The strontium in Sensodyne Rapid Relief replaces some of the calcium lost from the dentine and blocks the exposed tubules in the dentinal tissue. This helps prevent the movement of the fluid within the tubules in response to a sensitivity stimulus that could otherwise cause tooth pain. Sensodyne Rapid Relief: Relieves sensitivity pain when directly applied to the sensitive area of a tooth with a fingertip for one minute. This is because it is formulated to create a physical seal against sensitivity triggers.

Product Characteristic:

Category : Toiletries

Packaging : Paper box

Pricing range : Rs. 50 to 200

Unit per sale : A tube in 50gram and 120gram

Storage : At room temperature

Shelf life : 24 months.

Communications Objective

For the longest time, toothpaste was all about cleaning the

pearly whites and the dazzling 'ring of confidence'. Colgate was

and still is the clear leader, registering a 56% volume market

share for Jan' 13-Sep' 13. There have been periodic attempts to

dethrone it, but finally the competition appears to be getting its

game plan right. The doughty toothpaste brand is starting to get

flanked by new and nimble players who focus on recently

acknowledged specialist needs like sensitivity or bleeding gums.

This marks a paradigm shift in the segment.

"Till recently, we did not acknowledge how different types of toothpaste helped us. In many cases,

price was the deciding factor." One brand worked for the entire family. With increasing awareness,

urban Indians have a better understanding of diet and its impact on teeth. They are willing to pay for

preventive attention. "A typical urban family is nowadays buying different toothpastes as each

member needs something specific, which broadens the category and allows for newer products"

Initially Sensodyne was test marketed in the South before launching pan-India. 17% population in India

talked about a short sharp sensation in their gums or teeth, but only 4% visit the dentist and that only

when their dental concern is severe.

Communications Objective for the offering

The Communication Objective is very crisp & clear,

to update the masses that SENSODYNE is a tooth

paste for the sensitive teeth.

Some lines from the campaign are mentioned

below:

Sensodyne works to relieve tooth sensitivity due

to sensitive teeth and to provide lasting protection

all day.

If you have sensitive teeth, switching to sensitivity toothpaste such as Sensodyne toothpaste can make

a big difference in not only your enjoyment of everyday life, but in your overall oral health.

Brand Identity

The brand has strong recall when it comes to sensitive tooth; it comes first in the consideration set of

the consumers. The Brand Name SENSODYNE stands for what is says or it’s a synonymous to tooth

sensitivity relief. The brand can be best indentified from the below terminologies.

Relieves tooth sensitivity

Toothpaste for sensitive teeth

World's No. 1 Toothpaste for Sensitivity

Positioning

Sensodyne is a toothpaste marketed for individuals with

sensitive teeth and those who wish to prevents sensitive teeth.

Target Segment

Ages group between 20 to 50 years (middle & upper class).

Tagline/ Slogan

World’s no. 1 sensitivity toothpaste

Unique Selling Proposition (USP)

Sensodyne is a desensitizing toothpaste that helps to relieve pain causes by sensitive teeth and helps

to prevent it.

Advantages

• Looks promising.

• Relieve pain and builds a barrier against sensitive teeth.

• Helps protect against cavities.

• Does not use stannous fluoride which may produce surface staining of the teeth.

• Keeps mouth feeling fresh & clean.

• Can be used every day as basic toothpaste.

Competitors

Pepsodent

Colgate Sensitive

SWOT Analysis

Strengths

• Contains no sugar. • Clinically proven, helps to relieve sensitivity within 2 weeks. • Proven carried protection of fluoride. • The #1 dentist recommended brand for sensitive teeth. • Dentists have been recommending Sensodyne for over 20 years. • A variety of flavors and choices such as Original, Fresh Impact, Fresh Mint,

Cool Gel, Gum Care and Rapid Relief.

Weakness

• Certain shops do not have Sensodyne in stock. • Some consumers think the taste is funny. • Little more expensive than competitors • Customers confuse which flavors to choose as it seems like all has the same

effect.

Opportunity

Can leverage on the unique positioning and differentiation it has achieved The brand can target kids and youth also since they frequently suffer from

such problems

Should also promote other benefits, apart from Sensitivity relief

Threats

Lot of competition in the market from regular toothpaste brands. Some customers dislike the taste of Sensodyne, as it does not have strong taste like

normal toothpaste.

Marketing Communications Mix

Marketing is a broad business function that includes product research and development,

merchandising and distribution processes and pricing, as well as communication or promotion. The

communication mix refers to specific methods used to promote the company or its products to

targeted customers. Some depictions of the promotional mix include five elements, while others add a

sixth -- event sponsorship.

Advertising

Advertising is often the most prominent element of the communication mix. In fact, marketing and

advertising are often misconstrued as the same thing. Advertising includes all messages a business

pays to deliver through a medium to reach a targeted audience. Since it involves the majority of paid

messages, companies often allocate significant amounts of the marketing budget to the advertising

function. While it can be costly, the advertiser has ultimate control over the message delivered, since it

pays the television or radio station, print publication or website for placement.

Dishum Dishum 'us versus them' advertising or below the-belt attacks, relying on the 'focus strategy'.

GSK brought the dentist to people's living rooms, spoke about the problem of sensitivity and used the

demonstration and testimonial approach to drive the message. "They actually made people more

aware of the problem and introduced a solution,

Audio Video Advertising on TV

The brand ran a campaign in visual media with the aim of creating awareness about the condition of

sensitive teeth and projected Sensodyne as the dentist's most preferred choice for this condition.

http://www.youtube.com/watch?v=tHvlNLGYwW8

http://www.youtube.com/watch?v=FnYZ2udITWI

Advertising through Print Media

Discounts and Promotions

Sales promotions or discounts are similar to advertising in that they are often promoted through paid

communication. However, sales promotions actually involve offering a discounted price to a buyer.

This may include coupons, percent-off deals and rebates. Goals of this communication tool include

increasing revenue and cash flow, attracting new customers and clearing out extra inventory.

The unusual approach of Sensodyne extends to its brand partnerships. Sensodyne tied up with ice-

cream chain Baskin Robbins by putting up tent cards at 229 outlets across 19 cities to offer free

samples of the toothpaste to customers along with the bill. Today, it's a brand that has a sizable lead

over Colgate in the sensitive category.

Direct Marketing

Direct marketing includes some aspects of both sales promotions and personal selling. It is interactive

communication with customers where the company's message seeks or implores a response from

targeted customers. E-mail and direct mail are common formats. These messages are sent to

customers with special offers or calls to action, often promoting limited-time deals or new product

launches.

Chill tests where people were invited to take a sip from a glass of cold

water to see if they felt a short sharp pain in their teeth. The

promoters provided them with a leaflet on dentine hypersensitivity

together with a 25ml sample of any one of three variants. Promoters

also encouraged consumers who felt discomfort to visit their dentists

and try Sensodyne for effective short-term and long-term relief

Sensodyne ran 50,000 of these in the year of its launch and as of June

2014, the number stands at a staggering 5 lakh.

Consumers found the chill test helpful and unobtrusive. Keynote

Communications, which is well known for its innovative national

brand activations, managed the campaign for GSK. Its promoters

found consumers’ reactions to both the Sensodyne message and

solution overwhelming. This was reflected in the high consumer

reach and conversion to sale recorded during the campaign

Sensodyne rolled out the Wake Up To Sensitivity (WUTS) campaign across 45 cities to connect with

over 20 lakh people. It has also started a door-to-door consumer connect to push the brand. And if

sampling on ground was not enough, GSK even tried doing it 30,000 feet above, after a tie up with low-

cost airline IndiGo.

Working closely with dentists has also added to its credibility. They brought real life dentists on screen

and invested in building trust among them. No wonder, Sensodyne has been ranked as the No 1

sensitive toothpaste brand recommended by dentists.

Event Sponsorship Event sponsorship is the element sometimes left out of the five-element communication mix. Many models include it within advertising. Event sponsorship occurs with a company pays to have a presence at a sports, entertainment, non-profit or community events. The sponsorship may include a mix of benefits including booth representation during the event to hand out samples, gifts and literature, name mention during the event and ad spots connected to the event. Public Relations Public relations are somewhat similar to advertising in much of it involves messages communicated through mass media. The major difference is you don't pay for the time or space for the message. A television or newspaper feature story mentioning a business, for instance, isn't paid for and can provide brand exposure. The downside of PR is that you don't always control the messages . You can try to influence them through press releases and invites for media coverage, but the media could put a negative spin on the story. Due to its unusual campaign & success in market penetration, Newspapers like Economic times, Business Standard took a notice of the efforts of the efforts of Sensodyne and wrote articles how Sensodyne outlasted Colgate. Link to the articles http://economictimes.indiatimes.com/magazines/brand-equity/sensitive-segment-how-sensodyne-checked-colgate-from-capturing-market/articleshow/38870175.cms http://www.business-standard.com/article/companies/gsk-overtakes-colgate-in-sensitivity-segment-nielsen-113041800016_1.html

Touch points of Communication used in the Campaign

Chill test

Print media

Audio visual Ads

Dentists advice

Standees

Tent cards

Tie-up with Baskin Robbins

Website

Free Samples

Social Media

How did the Communication Model work? At the time of its launch in 2011 awareness of sensitive

teeth as a problem was minimal. Market leader Colgate

dominated (and continues to dominate the overall

toothpaste market with a staggering 56% share.) It had a

sensitive teeth variant but made no special attempt to

push it. The team at Sensodyne realized this was a

problem that would take a lot more than a TV commercial

to crack.

Hence Sensodyne took unusual marketing approach. They

started by creating awareness about the condition of

sensitive teeth and projected Sensodyne as the dentist's

most preferred choice for this condition. Globally also

Sensodyne is positioned as Dentist's choice for sensitive

teeth. Along with the Above the Line promotions,

Sensodyne is also conducting brand awareness programs

among the key influencer - dentists. The brand conducted

events called ' Chill Tests ' among consumers to spread

the awareness of the condition of sensitive teeth.

Sensodyne banked on the promise that it provides relief in two weeks.

Results of the Campaign

For Sensodyne, ‘the chill test’ not only effectively reached the correct end user with leaflets and

product through helping consumers identify their problems, but proactively marketed their variants by

illustrating the need for an ongoing treatment plan. The immediate result was that the campaign has

helped to further fuel the brand’s growth and created a foundation for even further growth.

GSK’s sensitive brand currently has a slightly higher market share compared to its rival Colgate

Sensitive, which has captured a 26% share as compared to the latter's 25%. The numbers are for the

month of March, according to industry numbers. Manufacturers have decided to address the

sensitivity problem. Overall, the market is evolving and the newer players are doing well for

themselves. While the segment is being seen as a premium offering at the moment, massive

democratisation can be expected given our lifestyle that makes us prone to sensitivity or other oral

issues.

Himalaya is the latest entrant in the space. The company is looking at replacing its Dental Cream in the

oral care space, Dabur too is looking at a foray, which sources inform is in the developing stages.

Integrated Marketing Communication What is IMC? The American Marketing Association defines Integrated Marketing Communications (IMC) as “a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.” The IMC planning process has been compared to composing a musical score. In a piece of music, while every instrument has a specific task, the goal is to have them come together in a way that produces beautiful music. It’s the same in IMC, where advertising might be your violin, social media your piano, public relations your trumpet and so on. Integrated Marketing Communications is a simple concept. It ensures that all forms of communications and messages are carefully linked together. At its basic level, Integrated Marketing communications, or IMC, as we'll call it, means integrating all the promotional tools, so that they work together in harmony. Promotion is one of the Ps in the marketing mix. Promotion’s has its own mix of communications tools. All of these communications tools work better if they work together in harmony rather than in isolation. Their sum is greater than their parts - providing they speak consistently with one voice all the time, every time. This is enhanced when integration goes beyond just the basic communications tools. There are other levels of integration such as Horizontal, Vertical, Internal, External and Data integration. Here is how they help to strengthen Integrated Communications. Horizontal Integration occurs across the marketing mix and across business functions - for example, production, finance, distribution and communications should work together and be conscious that their decisions and actions send messages to customers. While different departments such as sales, direct mail and advertising can help each other through Data Integration. This requires a marketing information system which collects and shares relevant data across different departments. Vertical Integration means marketing and communications objectives must support the higher level corporate objectives and corporate missions. Check out the Hall Of Fame later for more about missions.

Benefits of IMC

Although Integrated Marketing Communications requires a lot of effort it delivers many benefits. It can create competitive advantage, boost sales and profits, while saving money, time and stress.

IMC wraps communications around customers and helps them move through the various stages of the buying process. The organisation simultaneously consolidates its image, develops a dialogue and nurtures its relationship with customers. This 'Relationship Marketing' cements a bond of loyalty with customers which can protect them from the inevitable onslaught of competition. The ability to keep a customer for life is a powerful competitive advantage.

IMC also increases profits through increased effectiveness. At its most basic level, a unified message has more impact than a disjointed myriad of messages. In a busy world, a consistent, consolidated and crystal clear message has a better chance of cutting through the 'noise' of over five hundred commercial messages which bombard customers each and every day.

At another level, initial research suggests that images shared in advertising and direct mail boost both advertising awareness and mail shot responses. So IMC can boost sales by stretching messages across several communications tools to create more avenues for customers to become aware, aroused, and ultimately, to make a purchase. Carefully linked messages also help buyers by giving timely reminders, updated information and special offers which, when presented in a planned sequence, help them move comfortably through the stages of their buying process... and this reduces their 'misery of choice' in a complex and busy world. IMC also makes messages more consistent and therefore more credible. This reduces risk in the mind of the buyer which, in turn, shortens the search process and helps to dictate the outcome of brand comparisons.

Un-integrated communications send disjointed messages which dilute the impact of the message. This may also confuse, frustrate and arouse anxiety in customers. On the other hand, integrated communications present a reassuring sense of order.

Consistent images and relevant, useful, messages help nurture long term relationships with customers. Here, customer databases can identify precisely which customers need what information when... and throughout their whole buying life. Finally, IMC saves money as it eliminates duplication in areas such as graphics and photography since they can be shared and used in say, advertising, exhibitions and sales literature. Agency fees are reduced by using a single agency for all communications and even if there are several agencies, time is saved when meetings bring all the agencies together - for briefings,

creative sessions, tactical or strategic planning. This reduces workload and subsequent stress levels - one of the many benefits of IMC.

Meanwhile Internal Integration requires internal marketing - keeping all staff informed and motivated about any new developments from new advertisements, to new corporate identities, new service standards, new strategic partners and so on. External Integration, on the other hand, requires external partners such as advertising and PR agencies to work closely together to deliver a single seamless solution - a cohesive message - an integrated message. Communications Theory How do we communicate? How do customers process information? Simple communications models show a sender sending a message to a receiver who receives and understands it. Real life is less simple - many messages are misunderstood, fail to arrive or, are simply ignored. Thorough understanding of the audience's needs, emotions, interests and activities is essential to ensure the accuracy and relevance of any message. Instead of loud 'buy now' advertisements, many messages are often designed or 'encoded' so that the hard sell becomes a more subtle soft sell. The sender creates or encodes the message in a form that can be easily understood or decoded by the receiver. Clever encoding also helps a message to cut through the clutter of other advertisements and distractions, what is called 'noise'. If successful, the audience will spot the message and then decode or interpret it correctly. The marketer then looks for 'feedback' such as coupons returned from mailshots, to see if the audience has decoded the message correctly. The single step model - with a receiver getting a message directly from a sender - is not a complete explanation. Many messages are received indirectly through a friend or through an opinion leader. Communications are in fact multifaceted, multi-step and multi-directional. Opinion leaders talk to each other. Customers talk to opinion leaders and they talk to each other. Add in 'encode, decode, noise and feedback' and the process appears more complex still. Understanding multiphase communications helps marketers communicate directly through mass media and indirectly through targeting opinion leaders, opinion formers, style leaders, innovators, and other influential people.

How messages are selected and processed within the minds of the target market is a vast and complex question. Although it is over seventy years old, rather simplistic and too hierarchical, a message model, like AIDA, attempts to map the mental processes through which a buyer passes en route to making a purchase. There are many other models that attempt to identify each stage. In reality the process is not always a linear sequence. Buyers often loop backwards at various stages perhaps for more information. There are other much more complex models that attempt to map the inner workings of the mind. In reality, marketers have to select communications tools that are most suitable for the stage which the target audience has reached. For example, advertising may be very good at raising awareness or developing interest, while free samples and sales promotions may be the way to generate trial. This is just a glimpse into some of the theory. Serious marketers read a lot more.

Reference & Bibliography

Books

Principles of Advertising and IMC, 2nd edition, By Tom Duncan

Publication- New York: McGraw-Hill, 2005.

Graph 1 http://www.breakingcall.com/index.php/blog/india-insight/85-india-blog/149-toothpaste-war-in-india-who-will-prevail2

Graph 2 http://www.slideshare.net/VishalKhatokar/savedfiles?s_title=marketing-project-toothpaste-industry&user_login=reshmiraveendran925

http://sensodyne.in/

http://www.ida.org.in/

http://en.wikipedia.org/wiki/Sensodyne

http://us.sensodyne.com/products.aspx

http://www.dental-professional.com/products_sensodyne.aspx

http://www.gsk-dentalprofessionals.co.uk/brand.aspx?id=sensodyne

http://articles.economictimes.indiatimes.com/2014-07-23/news/51932343_1_sensodyne-sensitivity-segment-toothpaste-market

http://www.nature.com/bdj/journal/v212/n12/full/sj.bdj.2012.542.html

http://www.rediff.com/money/report/gsk-overtakes-colgate-in-sensitivity-segment-nielsen/20130418.htm

http://www.samachar.com/GlaxoSmithKline-back-on-health-track-ndpjOdaccde.html

http://www.business-standard.com/article/companies/gsk-overtakes-colgate-in-sensitivity-segment-nielsen-113041800016_1.html

http://www.slideshare.net/joyajit/sensodyne-colgate-pro-relief

http://www.slideshare.net/hrudi21/toothpaste-7972238

http://www.campaignasia.com/Article/360246,Sensodyne+lets+sensitive+teeth+speak+for+themselves+in+AR-driven+campaign.aspx

https://www.google.co.in/search?q=sensodyne+ad&client=firefox-beta&rls=org.mozilla:en-

US:official&channel=fflb&biw=939&bih=555&source=lnms&tbm=isch&sa=X&ei=52kVVNKCPZKwuATSuICwBg&sqi=2&ved=0CAYQ_AUoA

Q