CASE STUDY PRESENTATION

ON

HIMALAYA HERBAL TOOTHPASTE: CATEGORY AND

BRAND INVOLVEMENT
IN

AN EMERGING MARKET

Presented By: Sumit

Priya, Wangkhem, Govind, Mahendra &

HIMALYA DRUG COMPANY

One of the key players in the pharmaceutical field for several decades. Herbal Offerings in Health Supplements, Personal Care Products & Pain Ointments in the retail & prescriptive segments Unique Proposition: The scientific rigor associated with the testing of its herbal offerings The company launched Ayurvedic Concepts to enter the consumer markets. Initially, in the late 90s, Ayurvedic Concepts targeted the young urban professional population to create brand awareness. In the early 20th century, it was brought under the Himalaya umbrella brand for several categories of soaps, shampoos, face washes, health supplements, baby products, etc. In 2010, 40% of Himalayas turnover was from consumer products. It had several exclusive outlets throughout India, & had shop-in-shop counters in modern retail outlets. Himalaya did not advertise as much as other FMCG manufacturers, & brand associations were nurtured by Word of Mouth. To build market share in the highly competitive personal health care market, it begun to advertise its face wash & toothpaste brands Its offerings were exported to several countries

ORAL CARE INDUSTRY

FMCG was broadly split into: Household Care, Personal Care and Food & Beverages FMCG market in India projected to be around US$15-18 billion in 2010, & expected to grow to US$33 billion by 2015 The average Indian consumer spent around 8% of his income on personal care products Growth of the personal care segment can be attributed to: Increasing levels of discretionary spending Greater attention to personal hygiene Increase in the no. of new media channels Distribution In 2010, the oral care market in India was around US$980 million Growth trend of toothpastes over the past 3 yrs was relatively slower than that of other key FMCG categories (11%) Growth of the toothpaste category was even lower, at around

ORAL CARE INDUSTRY

TOOTH PASTE
WHITENIN G PRODUCT S

TOOTH BRUSH ES

ORAL CARE CATEGORY

DENTA L FLOSS MOUT H WASH
TOOTH POWDE R

STUDIES ON THE PERCEPTION OF CONSUMERS REGARDING THE TOOTHPASTE CATEGORY

One study reported that 68% of the Indian consumers who participated in the survey believed that using the right toothpaste was more important than using the right toothbrush. However, they did not give much importance to the toothpaste category. Most of them believed that oral care was not as important for personal grooming as hair care or skin care.

Another study revealed that only 28% of the respondents brushed twice daily.
Yet another study indicated that 68% of the respondents had never visited a dentist & 87% would not consider visiting a dentist as a preventive measure. WHO reported that 98% of the Indian population suffered from oral health problems. Ratio of dentists to patients was dismally low, with just 1 dentist for 10,000 people in urban areas & 1 for about 0.25 million people in rural areas.

TOOTHPASTE INDUSTRY: BRANDS & SEGMENTS

The toothpaste market in India had a very low penetration rate of 60%. Urban Penetration: 76% Rural Penetration: 40%

Average consumption of toothpaste in rural households was significantly lower than in urban households.
Per capita consumption of toothpaste in grams per year: India: 115 China: 255 United States: 542 Key brands in the Indian Oral Care industry: Colgate- Palmolive India & Hindustan Unilever Limited Colgate was one of the main brands for oral care, with the category contributing to 96% of Colgate- Palmolive Indias annual company sales. Colgate was the market leader in the toothpaste, toothbrush & toothpowder categories. It led the toothpaste market with a 52% market share. Hindustan Unilever was 2nd in the oral care market with a 25% share in the toothpaste category. The toothpaste category was segmented into 3 price tiers: Economy, Popular & Premium and existed in 2 product variant types: Paste & Gel formats.

SNAPSHOT OF ALL KEY BRANDS

HUL
Brand Type Price Tier Target Consumer Brand Proposition

Closeup

Gel

Popular

Young adults, mostly Freshness that gives you the urban confidence to get closer to someone Family(strong children imagery) Fights germs & prevents cavities for healthy teeth & gums

Pepsode nt

Paste

Popular

COLGATE
Brand
Dental Cream Total 12 Sensitive

Type
Paste Paste Paste

Price Tier
Popular Premium Premium

Target Consumer
Family(strong children imagery) Involved oral care consumers: Adults Niche: Consumers with dental sensitivity

Brand Proposition
All-round decay protection, even where a toothbrush cannot reach Complete germ protection for a full range of oral health problems Relief from pain & protection from tooth sensitivity

Maxfresh
Fresh Energy Gel Herbal Cibaca Active Salt Maxwhite

Gel
Gel Paste Paste Paste Gel

Popular
Popular Popular Economy Popular Premium

Young adults, mostly urban

Young Adults Family Family(some children imagery) Niche: Consumers with sensitive teeth Niche: Consumers with whitening requirements

Maximum freshness for maximum impact

Fresh breath for confidence to seize every moment Strong teeth & healthy gums naturally Strong teeth & fresh breath for your family Fights germs for healthy gums & teeth Whitens teeth to reveal a sparkling smile

HIMALAYA
Brand Dental Cream Type Paste Price Tier Premium Target Consumer Adults Brand Proposition Indulge like a child, brush like an adult

DABUR
Type
Gel

Brand
Babool Mint Fresh

Price Tier
Economy

Target Consumer
Family(some children imagery)

Brand Proposition
Helps you start the day with a pleasant, fresh feeling

Babool

Paste

Econom y

Family(some children imagery) Family(some children imagery) Family Family(some

A natural way to begin a great day

Red

Paste

Popular

Keeps your dental problems away with the power of Ayurveda

Meswak Promise

Paste Paste

Premiu m Premiu

Incredible herbal Meswak for complete oral care Fights cavities with the strength of

ANCHOR
Brand Anchor White Anchor Gel Typ e Past e Gel Price Tier Econom y Econom y Price Tier Premiu m Price Tier Econom y Target Consumer Family(strong children imagery) Young adults Brand Proposition All-round protection to keep your teeth fit & life fit Fights germs & keeps mouth fresh

GSK
Target Consumer Brand Proposition Niche: Consumers Worlds Number 1 toothpaste for with sensitive teeth sensitive teeth

Brand Sensodyne

Typ e Past e Typ e Past e

AJANTA

Brand Ajanta

Target Consumer Family(strong children imagery)

Brand Proposition For healthy & sparkling white teeth

EXAMPLES OF BRAND COMMUNICATIONS FROM VARIOUS BENEFIT SEGMENTS

FRESHNESS SEGMENT: CLOSEUP

OVERALL ORAL HEALTH SEGMENT: COLGATE DENTAL CREAM

OVERALL ORAL HEALTH SEGMENT: PEPSODENT

HERBAL SEGMENT: DABUR RED TOOTHPASTE

NICHE SEGMENT: COLGATE ACTIVESALT

HIMALAYA DENTAL CREAM

Himalayas leading offering in the toothpaste category Contains natural ingredients like: Neem, extracts of Toothace Tree, Pomegranate, etc. Priced in the Premium Tier Offers several benefits like: Tightening & Reducing swelling of gums, Stopping gum bleeding, Preventing toothache & decay and Controlling bad breath Advertised with the concept, Indulge like a child, brush like an adult. Advertised in several top metropolitan cities through outdoor advertising, mainly through Billboards. However, it had a relatively smaller presence in television advertising compared to its competitors such as Colgate & Pepsodent.

HIMALAYAS BRAND COMMUNICATION: HIMALAYA DENTAL CREAM

HIMALAYAS HiOra RANGE

A range of herbal prescription-based oral care products Included: A Toothpaste, two Mouthwashes, an Ulcer gel, a Gum Astringent & a Whitening agent Expected to compete with brands operating in the prescription oral care segment & not in the FMCG oral care segment Doctor-prescribed oral care market was just 5% in 2010, but it was showing a growth of 21% annually which indicated an increase in the awareness about oral care.

POSITIONING MAP OF BRANDS

Emotional Benefit
Closeup
Colgate Fresh Energy Gel Colgate MaxFresh

Anchor White Cream Anchor Gel Babool MintFresh MaxWhite

Himalaya Dental Pepsodent Colgate Dental Cream Colgate

Economy Tier Tier

Dabur Red Colgate Cibaca Babool
Ajanta

Premium

Colgate ActiveSalt

Promise

Colgate Herbal

Colgate Sensitive Dabur Meswak Colgate Total Sensodyne

TOOTHPASTE CATEGORY SEGMENTS

FRESHNESS Freshness that fills you with confidence
HERBAL Complete oral care with the help of natural/herbal or Ayurvedic ingredients

TOOTHPASTE CATEGORY SEGMENTS

OVERALL ORAL HEALTH Healthy teeth & strong gums for the entire family through protection from germs

NICHE- PROBLEM SOLVING Specific solutions to oral health problems for consumers with higher involvement in oral care

RESEARCH METHODOLOGY
Objectives of the Study: To find out whether consumers were really loyal to the brands in the toothpaste category To figure out the involvement levels with respect to toothpaste To investigate the consumers attitude towards brands To study the Brand Attachment

Sampling: Target Population: Females aged between 22 & 55, belonging to urban households with an SEC socioeconomic classification Geographical Area: Urban Karnataka External Marketing Research Agency was used to collect data in April 2011. Questionnaires formulated in English & translated to Kannada Sample Size: 100 (25 respondents from each benefit segment) Scales: Consumer Involvement, Brand Attitude & Brand Attachment