This report is going to offer a much better product HERBAL TOOTHPASTE in the united kingdom market from the Middle-eastern Company and also to get a good market share. Toothpaste market of United Kingdom is divided into two major segments; is the Gel Paste market and the other is the Opaque market or Chalk Based Paste market or popularly known as the Paste or dental cream market. 'The Market for Oral Hygiene in the united kingdom Increased Between 2002-2007, Growing at the average Annual Rate Of 3. 2% (http://www. encyclopedia. com/doc). Total UK oral care market share almost £840m. HERBAL TOOTHPASTE are produced from natural ingredients and some are even certified as organic and natural and many consumers have started to switch over to natural toothpastes in order to avoid synthetic and artificial flavors that are generally within regular toothpastes. HERBAL TOOTHPASTE have products ranging those are also abundant with calcium and other minerals which makes the teeth more powerful and prevents cavities. HERBAL TOOTHPASTE will be imported from Middle Eastern Company and marketed at an acceptable price comparing with locally produced toothpaste such as Colgate, Kingfisher etc.
Through a study of UK market the objective of this report is to recognize the prospective market with Marketing strategies, marketplace segmentation including marketing mix (product, price, place and promotion) which is an important factor for a business in order to penetrate and develop its market. To explore the way the target market perceives the HERBAL TOOTHPASTE and how the company tries to influence exposure, attention and interpretation of the merchandise. Here, the scope of the report will be narrowed and then HERBAL TOOTHPASTE. With a powerful marketing strategies; the proposed product will increase its reputation daily and when any challenges will be studied and analyzed such that it can be predicted in this monetary climate how to proceed to sustain the marketplace share and remain more competitive.
INTRODUCTION
HERBAL TOOTHPASTES are produced from natural ingredients. Some toothpaste continues to be approved as organic. From our study and research it is available that lots of customers have taking spot to change to organic and natural toothpastes to avoid synthetic & artificial flavours which are normally found in regular toothpastes. ( http://www. herbaltoothpaste. net) Due to the increased demand of natural products, Herbal toothpaste will be the perfect timing of demand. This sort of toothpaste doesn't have dyes, artificial flavours or chemicals which is one of the mainly general reasons that consumers claim when switching from ordinary toothpaste to Herbal toothpaste.
Some people would prefer to use Herbal toothpaste for their oral hygiene and variety of reasons. Many people actually opting for them being that they are not tested on animals. Others, devoted to guard the environment or who are sensitive to the ingredients in usual toothpastes, are drawn to the reality they have no artificial colours or flavourings. Individuals who use homeopathic medicines are also drawn to toothpastes that don't contain mint as practitioners' state the Herb may hamper with the potency of their treatment. (http://www. dailymail. co. uk/health). Herbal toothpastes are also fluoride-free, which is apparently other frequent grounds why some individuals prefer this category of toothpaste more than regular one. Also some individuals have allergies or other health issues who may decide to think about Herbal or organic and natural tooth paste formulations. These products can be considered a excellent choice to them who are allergic to mint or even to sodium laurel sulphate, a foaming agent that is included generally in most commercial toothpaste brands. Classic ingredients in Herbal and organic and natural toothpastes include herbs with traditional historical uses like myrrh to help destroy plaque-causing bacteria; chamomile to lessen gum inflammation; Echinacea to inspire the disease fighting capability; sage and rhatany to decrease bleeding and essential oils like peppermint, to add flavour and ease pain and irritation. Various other common raw materials for these products include clove, ginger and tea tree oils. Some common ingredients are eucalyptus, Chamomile myrrh, Sage and some other less known plants such as Choti ilaychi, Lavang, Neem, Saunf, Khadir, Babool, . Herbal toothpastes also contain oils such as oils of coriander, ginger, lemon, and spearmint. Eucalyptus is however one of the most common ingredients in herbal toothpastes, mainly because of its properties of whitening and prevents stained teeth. Myrrh can be used to prevent gingivitis and bad breath and Chamomile and Sage are said to be helpful in soothing mouth ulcers, toothaches and inflamed gums.
MARKETING ENVIRONMENT ANALYSIS
"Organizational success depends upon sensing and responding to shifting conditions the business environment. At most basic level, these represent Opportunities and Threats. " Lowly, A. and Hood, P. (2004). Strategic planning effects the business in different ways. To examine environment of any Market we need to understanding of connection with various issues and issue with one another and the effect of this particular areas. To illustrate the united kingdom external environment PEST analysis is constructive. It offers the aspects those are political (taxason policy, foreign trade regulation, government stability), economical (unemployment, disposable income), social (life-style change, degree of education), technological (government spending on research, speed of technology transfer), environmental (company's responsibility to society) and legislative (code of practice, access to recycleables) factors.
3. 1. PEST Analysis of UK Market Environment
The PEST analysis is a framework that strategy consultants use to scan the external micro-environment in which a form operates. PEST means for Political, Economic, Social and Technological factors. Typically, these factors are beyond your control of the retailer and may either be threats or opportunities. These factors may vary within the parts of a country and would most definitely vary from one country to another. ( Pradhan, S. 2007. p. 111)
According to Stoner (1992) "PEST analysis can be involved with the environmental influences over a business. PEST influences are a good way of summarizing the external environment in which a business operates. Nonetheless it must follow up by consideration of what sort of business should react to these influences. "
As Pradhan, S. (2007) described in 'Retailing Management, 2nd edition':
"The PEST factors that affect the retail sector:
Political
Economic
Social
Technological
Political stability
Rate of financial growth
Income distribution of the population
Level of technology used in the sector
Government policy towards investment in the sector
Money policy
Size of Population
Penetration of internet
Labor laws
Level of Taxation
Demographics of the population
Penetration of the mobile technology
Consumer Protection Restriction on the entry of foreign players in the market
Consumer confidence
Rate of population, Age profile of the population
(Pradhan, S. 2007. p112)
Political:
Nowadays there a wide range of companies operating their globalized business with different varieties of tooth pastes in UK. As an external factor Political condition can affect and influence of services like Herbal Toothpaste's performance. In favour of service legislations, the administration encourages retailers to offer 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 make a difference the business of any business to access with new products such as introduce new tax policies on leisure could create a primary effect on the Herbal Toothpaste Import.
Economical:
Another environmental factor is economic, which will make a enormous effect available of Toothpaste. Presently UK is before a great economic down turn. With today's condition financial, employment, , mortgage sectors are deficiently effected. Earnings of folks have decreased and the inflation rose up. In this example people don't spend cash for their residence and can't do proper savings. Due to current market situation any services may effected in their business. The international business market continues to be growing. Through our Herbal Toothpaste products we are expecting it'll add greater amounts to its business. So it would be badly exaggerated if some delay in the united kingdom FMCG market with market concentration risks.
Social:
Social environmental factor has a great emphasis on business environment especially with today's economic down turn. Customers have moved towards changes. Our products have enlarged the quantity of FMCG products like HERBAL TOOTHPASTE designed for the clients. Nationalized retailers are slowly but surely reserved to get on new suppliers (Clarke, Benison and Guy, 1994; Datamonitor Report, 2003). Kind of products and services demand by the clients regarding their social circumstances and their subsequent attitudes and values. Customers are becoming much more aware about health and safety 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 middle, upper middle and upper class families inside our target market. They are the relatively conscious part of the society, with both the need and the purchasing power necessary.
Technological:
Toothpaste is one of the very most popular and fast growing products in UK market. Technology is a irregular macro-environmental that has damaged the improvement of FMCG products. The client and the company are being benefited as the technology provided new era in service. Technology helps too much to rises the customers' satisfaction. The company will use the modern high technology in production and all HERBAL TOOTHPASTE outlets will use the wireless devices, internet, intelligent scanner, electronic shelf labelling, Radio Frequency Identification, Close Circuit Camera (CCTV), Money paying machine etc. The electronic point of sale and electronic scanner have significantly increased the potency of delivery and stocking actions, with requirements being communicated almost in authentic time for you to the supplier.
3. 2. Porter's Five Forces:
Potential Entrants
Industry Competitors
Rivalry Among Existing Firms
Suppliers
Buyers
Substitutes
Threat of new entrants
Bargaining power of Suppliers
Bargaining power of buyers
Threat of substitute products or services
To analyze the way the business atmosphere is changing just how of the merchandise, the five forces model of Michael Porter's has been used here. The competitive five forces have made by identifying five original competitive forces which are prospective entrance, threats of substitutes, bargaining power of buyers, bargaining power of suppliers and competition between existing companies.
01
Suppliers Power
The major business giants are also a threatened for the new entry business society if they bring the products from broad in cheaper rates side and don't take from the neighborhood suppliers. The services of aggressive competition have concentrated the earnings limitations for supermarket chains and suppliers.
02
Buyers Power
The more products that become standardized or undifferentiated, the low the switching cost and hence, more power is yielded to buyers, (Porter M. 1980). The energy of buyers can also influence cost and investment, because powerful buyers demand costly service. The clients are aware about the products and its influences that they expect from under-developed producers.
03
Threat of Substitution
General substitute can reduce demand for a particular product, as there's a threat of consumers switching to the choice (Porter M, 1980). Herbal Toothpaste will create its own market through huge marketing activities however the existence of similar other products from companies like Colgate, kingfisher, Crest etc.
04
Threat of New Entry
New entrants to a business bring new capacity and a desire to get market share that puts pressure on prices, costs, and the rate of investment necessary to compete. the company must monitor the marketplace as well as prepared to face challenges from such arrivals which then gives organisation better strength to keep up its image and loyalty to its consumers. It's very difficult for the new company to access and provide sufficient capital for big fix costs and intensely developed supply chain as there bare already business giants are there on the market.
05
Competitive Rivalry
The FMCG business environment is continuing to grow in significant way in form and dominated by the bigger chain opening big store, developing concentrate of retailer and proper usage of the formats. Herbal toothpaste may faces competitive rivalry from Colgate, kingfisher, crest. the organisation must bring more effective marketing intelligence provide early warning of opportunities and threats.
3. 3. Target Market
Actually all toothpaste users or potential toothpaste users represent the target market of Herbal toothpaste. As awareness for dental health and well-being is increasing tremendously in UK. According our very own study the target market for Herbal toothpaste is also increasing. Marketplace of Herbal toothpaste is not also much limited or segmented by age. Toothpaste is a family group product, thus utilized by family members of all age groups. The users of the paste are everyone in the family who searches for strong, healthy teeth without problems like cavity and tooth decay. Here, the basic target group includes children up to 14 years of age and their parents and other senior family.
Fulfilled: Mature, satisfied, comfortable and reflective people who value order, knowledge and responsibility. They may be Conservative, practical to check out functionality. For this reason Herbal Toothpaste will be promoted based on functionality, i. e. strong teeth to the senior members.
Believer: Conservative, conventional people who have concrete belief predicated on tradition like family. They will be the parents caring for the kids who stay loyal to the brands they find best. Again, the kids are anticipated to be traditional. Because of this Herbal Toothpaste promotion is targeted towards a child who become life-long loyal Herbal Toothpaste user.
Geo-Lifestyle Analysis (PRIZM): The Herbal Toothpaste consumers are the Young suburbia. They have young families, mostly married couple with children. These families are affluent and strong consumer of family products like toothpaste. Because of this Herbal Toothpaste targets the family focusing the promotion on the kids.
3. 4. Demographic:
Population of Muslims in UK are 1. 6 million, 2. 8% or total population of UK.
Age 5-50
Area: East London, Tooting Broadway, White Chapel, Bethnal Green
72% of Muslims surviving in East London
Price Range £3-£5
Total market 400, 000 people.
(Source: Total population-office for national statistic 2001, Muslim population-office for national statistic 2001)
MARKETING MIX
To know the character of customers and their desires and needs is merely the first step, however. The organisation needs to act on that information, to be able to develop and implement marketing activities that truly deliver something of value to the client. The means where such ideas are converted into the truth is the marketing mix. The following figure summarises the areas of responsibility within each aspect of the mix.
PRODUCT
New product development
(e. g. Herbal body lotion, body powder)
Product management
(With strong management team)
Product benefits
(Created by Natural fresh ingredients)
(Beneath the perfect monitoring of the business with high technology)
PRICE
Cost
(Herbal toothpaste will be low priced product comparing with others)
Profitability
(After 6 months it will be profitable for the company, )
Value for money
(Herbal toothpaste cost effective products for the clients)
Competitiveness (The products will compete in the market)
Incentives (On Bulk purchase)
PROMOTION
Developing communication mixes
(With Company, retailers, end users)
Advertising management (Company marketing strategy management team collaboration with local add firm)
Sales promotion (For distributors, retailers, customers)
Direct marketing
PLACE
Access to focus on market
(Quick access all over in UK market)
Channel structure (Distribution channels are Tesco, Asda, Boots, Sainsbury's)
Channel management (Through Herbal products management committee and selective retailers)
Logistics (Company's own support)
The 4Ps :
4. 1. PRODUCT:
Products are answers to customers' needs. The business (the product provider) must make various product decisions, including functionality, range offered, brand names, packaging, service and support. The product is generally the critical factor in the marketing mix, with all the decisions concerning 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. A few of these ingredients can be purchased in India and it's really very cost effective to import following that.
Product name: HERBAL TOOTHPASTE
Tag Line: ''Real Fresh Dental Care''
Target Market: 5-50 years customer (everyone may use)
4. 1. 1. Product Range:
Herbal Gum Protection Toothpaste:
Contain sorts 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 enjoyable refreshing breath. (spec: 150gm)
Herbal Anti-cavity Toothpaste:
Have good function of anti-cavity, strengthen teeth. . . Fruit flavor give mouth enjoyable aroma. : (spec: 150gm)
Herbal Tartar Control 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 protection along with refreshing breath. (spec: 150gm)
Herbal Natural Toothpaste :
We are engaged in offering high-quality natural paste. The natural paste is established by using completely natural ingredients that make them absolutely safe to use and clear of side effects. ( Spec: 150gm)
4. 1. 2. Labelling:
Our state-of-the art manufacturing functions enable us to successfully undertake private labelling activity; on the behalf of your customers. We use most advanced technology in production and packaging, to ensure that the finish product complies fully with your requirements. This enables you to market a reliable and genuine product, under your brand, at very reasonable prices.
4. 1. 3. Product Life Cycle:
According to the Break- Even analysis we can predict that after 3. 7 months the company will get benefit from the product. It will increase through developing the merchandise and introducing new products I the whole market. Following a certain time frame (3. 7 months) the product will be matured and you will be established in the competitive market.
Source:http://www. tomspencer. com. au/2009/01/25/product-life-cycle-model
4. 2. PRICE:
Pricing strategy is damaged by various factors such as cost of production, internal and external factors, competitors' price for similar products etc. For our product we have to analyze these factors in order to build up competitive pricing technique to offer less expensive products to its customers. Since every one of the products are freshly made, the expense of production must be less than its competition which hence reflects on its different range of products. Herbal toothpaste will be named 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 selection of prices in Middle-East which it is charging in UK market - a geographical pricing strategy of your product is more effective in order to gain international reputation. Promotional pricing also gives the company to penetrate market better. While using 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 Analysis:
4. 3. PLACE:
The organisation must distribute the product to an individual at the right 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 computer, profitability will be affected.
(http://www. learnmarketing. net/place. htm)
For a Hybrid marketing systems multiple distributor will be utilized for the Herbal Toothpaste
Retailers
Catalogues (free and available from the retailing shops)
Samples from the partners.
Vertical marketing systems will be contractual with this retailers like boots, Tesco, Asda, and Sainsbury's.
Indirect Channel:
Distribution the merchandise into different wholesaler/retailers
Store the stocks in a warehouse or business self storage in London
Ship the merchandise from Dubai to UK(London)
Mid EC Inc based from DubaiLogistics and Distribution:
4. 4. PROMOTIONAL STRATEGY:
No strategy lasts forever. Organizations need to innovate strategies and implement them in order to obtain a continuous success. As we will launch a fresh product in a fresh market we've selected some promotional strategies. The promotion strategy of Herbal Toothpaste are advertising, sales promotion, public relations however there are two more promotion strategies which can be personal selling and indirect marketing. It has been observed that Herbal Toothpaste will always be consistent to advertise sales through advertising in several media ranging from newspapers to TV and radio. The sales promotion via surprise & 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 HYGIENE, through such kind of promotional activities the merchandise will get its place in the market will acquire more market share compare to other products on the market.
Herbal Toothpaste will be quite a heavily outdoor- advertised brand that it forms a part of the landscape of virtually all the neighborhoods of England. Everywhere one goes, you can start to see the brand logo. The brand is displayed in many forms, like the following
Billboards
Shop fronts and store headboards
Posters and stickers
Media ( Television, Radio)
All of the increase the chances of exposure a whole lot that it's extremely difficult to be not really acquainted with the brand.
Attention
These advertises successfully attracts the consumer as they use concentrate on the kids. The promotional activities for the brand are designed to gain attention utilizing a variety 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 Red on one side.
Position: Advertisements of Herbal Toothpaste dental cream make an effort to take advantage of every possible position, whether it is the right, left or centre of a street.
Format: All advertisements of Herbal Toothpaste make use of a simple format, to make it easier to understand.
4. 5. SEGMENTATION AND POSITION
Freshness
Strength
Family
Personal
Benefit Positioning: Like all the dental creams in the market, Herbal Toothpaste will be positioned on the basis of benefits offered to the consumers through competitive good deal. It projects functional benefit for strong healthy teeth without tooth decay, cavity or any other problem. For this Herbal Toothpaste dental cream will be promoted as a family group product.
Crest Paste
Colgate Gel
Herbal Toothpaste
Kingfisher
Sensodyne
Aquafresh
This diagram compares the attributes of our contribution with the best possible of your contest in each category. Preferably the demonstrate for our product will form a circle round the boundaries of the graph. This assessment will force us to consider the energy of every of the competitive offerings and how we must position our offering to handle them.
Source: http://www. brs-inc. com/models/model15. asp
5. IMPLEMENTATION OF MARKET STRATEGY
Herbal Toothpaste is in the long-term and short-term memory of the consumer. It really is memorized as avoiding tooth decay, making healthy teeth and healthy kid.
Herbal toothpaste
Strong teeth
Strong kid
Happy kid
Reasonable
Price
Red colour of package
Energy
No tooth decay
Enjoy life
High quality
Number one brand
Fun
Foreign
Figure: Partial Schematic Memory of Herbal Toothpaste (personal views)
Bridging Consumer Need and the Product:
Happy kid
Healthy kid
Healthy Tooth
Strong Teeth
Herbal
Toothpaste
Complete toothpaste
Natural
Ingredients
Toothpaste preferred by kid
Happy Family
Toothpaste for whole family
Integrated Communication Mix
D
B
E
N
E
F
I
T
Bridged 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 merchandise.
Herbal Toothpaste bridges this need and benefit by making use of advertisements in tv set 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 Influenced
For the favourable attitude leading to purchasing of Herbal Toothpaste, the business will give attention to consumer's constant and positive mix of cognitive, affective and behavioural components.
Changing Cognitive Component
Changing the fact that not all toothpastes are equally capable to prevent tooth decay and Herbal Toothpaste does this task best. They show it by the comparative advertisement with a simple experiment on a tooth like shell (shonkho) and germ, where Herbal Toothpaste proves to become more effective in preventing decay.
Herbal Toothpaste will carry out campaigns in schools to teach the children how to care their teeth. Therefore increases awareness and preference.
Shifting importance towards stronger teeth than fighting germs, comparing with the competitors.
Changing the perfect of teeth, with more emphasis on strength than on whiteness and freshness implying that these would include strong teeth.
Changing Affective Component
Classical 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 Component
Promotion in the institution level accompanying free sample,
Arranging drawing competition for the youngsters,
Giving free gift of drawing book and pencil to the kids.
Self-Concept: Self-concept is the perception and attitude consumers hold toward themselves. The prospective group, as described earlier, is families who share collective values and where family affairs run around the kids.
Strengthening self-concept: Both actual and ideal self-concepts of both parents and children meet with projection of Herbal Toothpaste. Both parents and the kid him/herself want to have healthy teeth that could make the whole family happy. Thus Herbal Toothpaste strengthens the self-concept of the consumers.
Forming self concept: Self-concept is formed through interaction with the environment in very first stages of life. Keeping this at heart, Herbal Toothpaste conducts its school program, as described earlier. Through the program they form the self-concept of the youngsters that values health, strength and family. Thus Herbal Toothpaste attempts to form and strengthen favourable self-concept.
6. CONCLUSION:
Toothpaste is one of the largely vibrant segments of the oral care market. The regularity of product launches in existing segments of industry and origin of new product segments contributes to constant growth of the toothpaste market. Enlarge in sales of oral hygiene stuffs in key markets worldwide has mostly resulted from rising knowing of cleanliness and product modernism. New advancements have resulted in the launch of your diversity of high-priced, value-added multifunctional products in various oral care categories such as toothpastes and toothbrushes. Whitening toothpastes and products offer multiple functions are driving growth in the dentifrices segment. It's certainly big business - it is the biggest segment of the united kingdom 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 usually 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 unavailable previously.
