Introduction to Marketing Brand Presentation

PEPSODENT

MBA RM
2015-17

Submitted to:

Prof. Jeevan J
Arakal

Prepared by:
Shekhar Kedia (UR15076)
Shilpa Maria George(UR15077)
Shobhan Kumar Meher (UR15078)
Shristy Mishra (UR15079)
Siddhant Nayak (UR15080)
Vaishali B Mahapatra(UR15089)

1. Introduction:
Pepsodent has established itself as a strong, reliable brand commanding the second place in
terms of market share next to Colgate from Colgate-Palmolive Ltd. The product line of
Pepsodent is wide spread right from lower end to the higher end addressing the basic needs of
decay protection & advanced whitening to specific medical needs with Pepsodent G gum care
and Pepsodent Sensitive. The customer expectations of the toothpaste market are good taste,
fresh breath, clean teeth, more foam and proper cleaning. It has been endorsed by FDI (the
largest dental association globally). It is among the most trusted brands in India (Brand
Equity, Economic Times, and India).

2. Market Environment:
Role of various actors acting at the micro-level on the brand:
Suppliers: (supplier stability vital-can also become competition) - Suppliers are vital for any
organization. For Pepsodent, the suppliers supply abrasives like hydrated silica (softened
silica), calcium carbonate (also known as chalk), and sodium bicarbonate (baking soda). Other
abrasives include dibasic calcium phosphate, calcium sulfate, tricalcium phosphate, and
sodium metaphosphate hydrated alumina. If Pepsodent dont maintain a good relationship
with the supplier, the supplier can become a competitor for the products of Pepsodent.
Production units: (cleanliness standards in production units) - Each batch of ingredients is
tested for quality as it is brought into the factory. The testing lab also checks samples of final
product. Cleanliness standard ensures decontamination of the product, and Pepsodent as a
toothpaste brand should follow proper cleanliness norms.
Consumers: (Gradual and sudden shifts in price and quality) Pepsodent is a FMCG product
and has a huge competition in the toothpaste industry. If there is an increase in price or
decrease in quality of the product, this will lead to shifting of preference from Pepsodent to
other brands of its competitors like Colgate.
Distributors and intermediaries: The distributors and intermediaries should be motivated so
that channelizing the distribution process becomes smoother and they should be aligned with
the companys objectives. The distributors have taken the product to different markets, like
rural and semi urban areas. Conflicts within should be handled sensibly, fairly, and efficiently.
Since conflicts in a business are a natural part of the workplace, it is important that there are
people who understand conflicts and know how to resolve them. This is important in today's
market more than ever. Everyone is striving to show how valuable they are to the company
they work for and, at times, this can lead to disputes with other members of the team. As
Pepsodent is a FMCG product, the intermediaries and distributors play a vital role in making
the product reach the customers. So any kind of conflict arising should be resolved sensibly.
Effect of forces acting at the macro-level on the brand:
Demography: (Study of populations in terms of size) Most of the Pepsodent products are
sold in the urban areas. The sale from the urban areas constitutes approximately 80% of their
income. Pepsodent spread awareness of the benefits of oral hygiene. This awareness would
therefore help increase its sales, in the rural areas.

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Pepsodent is currently into selective specialization. Smaller and cheaper variants for rural
markets for 10 Rupee pouches and Pepsodent complete for the educated urban consumer.
Pepsodent introduced Pepsodent Kids for the kids which came in three varied types. HUL
introduced Pepsodent in different consumer preferences like -G for Gum care, Germicheck for
Cavities and Whitening for white teeth.
Pricing: (as per income level) Pricing plays a vital role in different markets. The urban
market for toothpaste is almost stagnant. Hence for deeper penetration in the rural markets
HUL have taken measure like smaller 100gms packs priced at 10 rupees.

3. Marketing Mix:
Pepsodent has its PRODUCTS which covers a large area. So, out of the 4 Ps it is the
Product that is more dominant than any other Ps.
Various Pepsodent products are:
Pepsodent Germicheck +

Pepsodent Whitening

Pepsodent G

Pepsodent Kids

Pepsodent 2 in 1

Five Product Levels

Basic features of consumer behavior in the brand category of Pepsodent:

Consumer behavior is not exactly predicted one; somewhat it is predicted with the help of
research activity. Starting and ending of any survey ends with only one statement consumer
is king. Brand image, advertising, and offer play an important role in purchasing toothpastes.
Sometimes, just based on the offer the consumer compares with competitor product and
selects the best one. Product attribute is also analyzed by the consumer for deciding a brand.
Switching of one product to other company product is mainly based on advertisement, brand
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name, packaging availability, and price rise, etc. So, the companies analyze all these factors
and find out the best suitable tools for promoting their toothpastes in India.
Given the nature of consumer behavior, following are the implications for the 4Ps:
Product: Wide range of products, Product Diversification, Launch of new Flavors.
Place: Focus towards Rural & Semi-Urban Areas. Easily available at nearby kiosks.
Price: Price is at par with the competitors price and for deeper penetration in the rural
markets they have smaller packs priced at 10 rupees.
Promotion: Pepsodent has introduced new brand New Pepsodent Germi Attack across
India. ShahRukh Khan has been roped in as brand ambassador.

4. Managing Competition:
The position of Pepsodent is clearly that of a market challenger.
Category leader Colgate-Palmolive gained volume market share in 2014 at 56.7% as against
55.9% in 2013, HUL's share declined to 21.5% from 22.8% in 2013. While Pepsodent
germi-check has a market share of 6.4%, Colgate strong teeth has a market share of 29.4%.
Direct competition for Pepsodent:
August of 2013 saw the beginning of another war in the toothpaste market. Pepsodent, the
challenger brand from HUL directly attacked the market leader Colgate with a high profile
comparative advertisement. The ads directly compared Pepsodent Germicheck with Colgate
Strong Teeth with claim that Pepsodent Germicheck is 130% better in fighting germs than
Colgate Strong Teeth. This clearly confirms Colgate as the direct competition for this brand.
While this is not the first time that Pepsodent has frontally attacked Colgate.
Pepsodent is a small brand compared to Colgate. Pepsodent Germicheck has a market share of
6.4% while Colgate strong teeth have a market share of over 29.4%. For a challenger brand
like Pepsodent, fighting the leader directly certainly puts the brand in limelight.
Various forms of indirect competition for Pepsodent:
There has been a habit with many rural people to chew natural Neem twig as a substitute for
brushing. This chewing of twig is a form of indirect competition for Pepsodent. Also, there is
indirect competition from various toothpowders and liquid mouthwashes like Listerine.

5. Segmentation, Targeting and Positioning:

Segmentation refers to Dividing the market into smaller groups with distinct needs,
characteristics or behaviour that require separate marketing strategies & tactics. A company
uses multi-attribute segmentation which includes segmenting on the basis of Geography,
demography and psychography and behavior.
Geographic Segmentation of Pepsodent:
It refers to dividing a market into units like nations, states, regions or neighborhoods. The
basis or validity of this method is that people with similar socio economic, cultural and
lifestyle characteristics tend to congregate in the same geographic location.
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The urban market for Pepsodent is almost stagnant and for deeper penetration into rural
market the company produces Rs 10, Rs 20 tube.
Demographic and Psychographic Segmentation of Pepsodent:
Demographic segmentation refers to dividing a market based on age, gender, family size, life
cycle, income, occupation, education, & race. We see that Pepsodent has an entirely different
range of products for kids called Pepsodent kids. It comes in colorful tubes like pink (for
Barbie), Blue(superman) and orange(tom & jerry). The company also packages family pack
tubes which consists of two to three units bundled together and sold as one. This is directed
towards consumption of it in a large family.
Psychographic segmentation refers to dividing people on the basis of their values, attitudes &
life styles. Here, there is no psychographic segmentation.
Behavior Segmentation of Pepsodent:
It refers to dividing the market into groups based on usage, benefits sought, knowledge &
responses to the product/ service. Though Pepsodent has very little to do with behavior
segmentation method but as far as usage factor is concerned, the company produces 200gms
long tube to make consumers get used to the product. This ultimately develops a habit for the
consumer and he ends up buying the same toothpaste every time. Also we see that Pepsodent
has variety of products based on consumer preference. Eg: Pepsodent G for Gum care,
Pepsodent Germicheck for cavities and Pepsodent whitening for white dazzling teeth.
Targeting Mechanism employed by Pepsodent:
Targeting is defined as Set of buyers carrying common needs or characteristics that the
company decides to serve after the segmentation process.
The company goes for mass market strategy. But, most of the Pepsodent products are sold in
urban areas and almost 80% revenue is generated from it. For rural masses the cheap and
small variants are distributed. We also see that Pepsodent kids is only focused on usage for
the kids and so it has colorful packaging with superheroes print. This can be termed as
selective specialization.
Positioning type of Pepsodent:
Positioning refers to Unique position a product must occupy in the mind of the customer
relative to competition.
Pepsodent was launched in 1993 by HUL to capture the market from Colgate. It was launched
in the platform of Germ fighting property as part of attribute positioning. Pepsodent has
experimented with its positioning all through its life. There were various ad campaigns to
supplement this positioning: Lasting Protection for hours, Germ Fighting Campaign, Dental
Insurance, Dishum Dishum, Bhoot Campaign and inclusion of a germ indicator with a pack of
Pepsodent.
HLL struck back with the famous Dishum dishum campaign. The logic behind this campaign
was that mothers were really worried about the eating habits of their kids. From that insight
came the Big Idea "let Pepsodent fight germs for you". The campaign and the smart pricing
virtually killed the regional brands in the oral care market.

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Pepsodent knew that it should expand the total market of toothpaste and hence decided to
increase market by increasing the usage of the product. Thus they came up with the Bhoot
campaign. It aimed in teaching the kids the benefits of brushing at night, (with Pepsodent of
course). Research shows that brushing teeth at night can reduce chances of tooth decay by
30% and because of this campaign 12 lakhs kids are now brushing teeth at night and mothers
are very happy about it.

6. Product Management and Development:

Explanation of Pepsodent using Product Levels:
There are five product levels and each level adds more customer value, and they constitute a
customer-value hierarchy.
Core benefit: It refers to the service or benefit the customer is really buying. Benefit is the
outcome of consumption. The core benefit has relation to the customer as the realization of
the product is at the consumer end.
A consumer of Pepsodent toothpaste is buying relief from problems of teeth. The product is
building strong customer relationships by providing high quality product and solving the
purpose of the consumer.
Basic Product: It refers to the version of the product containing only those attributes or
characteristics absolutely necessary for it to function. It is related to the company if it is the
first entrant in the market or else it would be under competition. Here, the basic product is
toothpaste and Pepsodent as a brand already has many competitions.
Expected Product: The set of attributes or characteristics that buyers normally expect and
agree to when they purchase a product. This is related to the Customer in the Kenichi
Ohmaes model.
The set of attributes Pepsodent provides include, relief from sensitive teeth, strengthens
enamel, protects against cavities and acid water, cleans and freshens the mouth. Other than
Potassium nitrate it contains glycerine, Sodium Lauryl Sulfate, dyes, Sodium Fluoride,
Sodium phosphate and hydrated Silica.
Augmented Product: Inclusion of additional features, benefits, attributes or related services
that serve to differentiate the product from its competitors. This level is related to competition
in the 3 cs model.
Pepsodent launched two variants of its product within three years of its launch in India. The
variants served different consumer requirements to compete with Colgate Pro Sensitive.
Potential Product: It refers to all the augmentations and transformations a product might
undergo in the future. This level is related to Company if the product is new, or else in
Competition whether it be an existing competition or a brand new competition.
Pepsodent in the 3 C model will come under Competition in this product level. Colgate is a
tough competitor of Pepsodent in this industry. Pepsodent has to add in features, benefits in
future to be the number 1 in the market. Though Colgate had launched its Colgate sensitive
pro after Pepsodent but the former has controlled the Indian oral care market since decades.

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Product
The product is the central point on which marketing energy must focus. Finding out how to
make the product, setting up the production line, providing the finance and manufacturing the
product are not the responsibility of the marketing function. However, it is concerned with
what the product means to the customer. Marketing therefore plays a key role in determining
such aspects as:
The appearance of the product in line with the requirements of the market
The function of the product products must address the needs of customers as identified
through market research.
The product range and how it is used is a function of the marketing mix. The range may be
broadened or a brand may be extended for tactical reasons, such as matching competition or
catering for seasonal fluctuations. Alternatively, a product may be repositioned to make it
more acceptable for a new group of consumers as part of a long-term plan.
Sensodyne is a premium product with the main attribute of relieving pain from sensitive teeth.
It also launched its variants as well in a short span of time to suit various consumer needs.
Product Life Cycle:
Product life cycle is a business analysis that attempts to identify a set of common stages in the
life of commercial products. In other words the Product Life cycle PLC is used to map the
lifespan of the product such as the stages through which a product goes during its lifespan.
The product life cycle is commonly used to describe the life of a product over time. This cycle
consists of four stages: product introduction, growth, maturity, and decline.
Pepsodent is successfully passing through the introductory stage and entering into the growth
stage. Pepsodent people develop the products after identifying the core consumer needs that
the product will satisfy. They introduce the product after careful segmentation and identifying
the target market. Since their target market as they know is going towards the natural products
for the health of their teeth, so Pepsodent has introduced its product which is a blend of
natural herbs and modern scientific research. They continuously develop the product for their
customer satisfaction. They have close eye on the market and whenever they find a gap in the
market, they launch a product whenever they find a gap in the market.
Introduction Stage In this stage, the product goes through testing and a prototype is
developed. Then the new product is first made available in the market.
Pepsodent was tested for a year on four parameters taste, dentist associations, retail
presence and what type of advertising would work. Pepsodent had earmarked Rs 25 crore on
marketing activities. They planned to reach out to around 15,000 dentists across the country
and lined up consumer activation programmes with them.
Growth If the product is popular with consumers, then sales will start to rise. Product
quality is maintained and additional features and support services may be added. Advertising
is often still heavy at this point.
Pepsodent aimed at acceleration in growth in the sensitivity category; within three years of
launch they added two more variants to their product range-Repair & Protect and Parodontax
toothpaste for bleeding gums
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Maturity Once the product is well established and consumers are satisfied, then the product
is widely accepted and growth slows down. At the very end of the Maturity stage, and where
there is no further growth possible, saturation occurs. This is also referred to as Saturation
Point.
Decline Sooner or later sales fall due to changes in consumer tastes or new choices available
from competitors products.
Industry Life Cycle:
The toothpaste industry especially in the sensitive toothpaste segment is in its early growth
stages and is bound to grow exponentially in the coming years.
Industry: A classification that refers to a group of companies that are related in terms of their
primary business activities. The manufacturing or technically productive enterprises in a
particular field, country, region, or economy viewed collectively, or one of these individually.
A single industry is often named after its principal product.
In the toothpaste industry Colgate was and still is the clear leader, registering a 56% volume
market share for Jan 13-Sep 13. 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.
The overall toothpaste market targeted at the sensitive teeth problem pegged at nearly Rs 600
crore annually, constituting 9.5 per cent of the Rs 6,000-crore overall toothpaste market in the
country. The sensitivity segment has quadrupled in the past two years, due to the aggressive
marketing effort of both GSK and Colgate. Pepsodent leads the 525 crore sensitivity segment
with a 27% share.
Competition: Competition is the rivalry between companies selling similar products and
services with the goal of achieving revenue, profit, and market-share growth. Companies
strive to increase sales volume by utilizing the 4 components of the marketing mix, also
referred to as the 4Ps: product, place, promotion, and place.
In the case of the toothpaste industry Colgate has been the undisputed market leader in this
market. Competitors have been trying to make a dent in the share through almost every
strategy listed in marketing textbooks. GSK in 2010 brought its global dental care brand
Pepsodent into the Indian market. The sensitive toothpaste segment was very small and
almost unknown to the larger Indian market. Colgate had presence in that niche with its
variant Colgate Sensitive.
Pepsodent entered the market with above the line promotion and in one year, Pepsodent
became a 100 crore brand and the Sensitive toothpaste market was growing at more than 45 %
p.a. Colgate launched another variant Colgate Sensitive Pro-Relief in order to arrest the
growth of the competitor. Pepsodent from HUL also got into the fray with its variant
Pepsodent Expert. While every brand focused on providing relief from sensitive teeth,
Pepsodent differentiated by offering relief and repair to the consumer. This move by
Pepsodent forced the players to rethink their offerings. Sensodyne then added the repair
proposition to the brands positioning thereby achieving points-of-parity with Pepsodent
Expert brand.
Pepsodent success can be seen as the success of a specialist brands fight with a product-line
extension. Consumers view Pepsodent as an expert in the field and hence the claims are more
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effective compared to the product-line extensions. However, Colgate was quick enough to
retaliate to the entry of Pepsodent albeit with little success.

7. Pricing:
Various pricing adaptations that have been attempted
Colgate also has 4 other variants Salt, Herbal, Total and Cibaca Family Protection.
Pepsodent has no equivalents (Pepsodent Complete has been discontinued).

Pepsodent has the 2 in 1 variant for which Colgate doesnt have an equivalent.
Some of the variants mentioned above have sub-variants which have a price variation of Rs 12.
Overall, Pepsodent is priced at the same level as Colgate, however, they have different selling
points.
Pepsodent has the Offers protection against germs angle while Colgate has the Makes teeth
stronger angle.
Toothbrushes from Pepsodent as well as Colgate are priced Rs.30-40. Oral-B, the main
competitor in this field, has toothbrushes ranging from Rs.25 to over Rs.50 due to greater
product variety.

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8. Promotion:
Evolution of advertising messages
In May,2010, Pepsodent had roped in Shah Rukh Khan to be their Brand Ambassador. He had
been roped in for Pepsodents latest campaign Pappu & Papa
Pepsodent had agreed to sell its Products with a toy along with the purchase of the product.
With phrases like Collect Them All!, the customers would want to buy more products in
order to collect all the gifts.
Pepsodent has introduced new brand New Pepsodent Germi Attack across India & released
print advertisement in leading news papers all edition of India. It has shown bluntly the
comparison between Pepsodent (Brand of Hindustan Unilever Ltd.) & Colgate (Brand of
Colgate Palmolive). And, in the advertisement, Pepsodent claims that the New Pepsodent
Germi Attack delivers 130% power against germs while Colgate delivers only 100%.
Brand leverage public relations
Along with an offer of free dental check-ups, HUL is also planning to organise health camps
involving villagers to fortify its campaign.
To promote Pepsodent, we will also offer free samples to the villagers to try out the product
and offer discount coupons on wrapper redemption schemes
Children are influencing around 41% of the total purchases in the total consumer market and
children are permitted to make decisions in 65% of the total purchases in the toothpaste
purchases.
In this case ideally, a product for the children, launched properly should be a runaway
success. Realizing this, Pepsodent introduced Pepsodent Kids and Pepsodent Junior in
November 2007.
Pepsodent Kids comes with an attractive squeeze down pack in attractive colors with three
variants, namely Barbie (pink color)
Superman (Blue color)
Tom & Jerry (Orange color)
Promotion Budget
During their promotional offers, Pepsodent sells its products at a discounted price. Else they
offer products with offers. Eg. Buy 1 get 1 free or 150g + 150g = Rs 40 and not Rs 50

9. Place:
HUL has always encouraged a strategy that is unique and different so that it stands out. This
helps in creating a new consumer base and in maintaining the interests of the previous
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customers. The type of Sales and Distribution model suitable for our brand- Pepsodent is
Intensive Distribution Model. The model functions as below:-

Pepsodent is among the most trusted brands in India (Brand Equity, Economic Times, India)
and is widely used. They have the largest distribution network in the country with wide range
of retailers spread across every part of the country. The number is close to 1 million in retail
and the product is available easily.
The marketing strategy emphasizes on quick delivery and easy availability to the consumer.
The brand has had deals with even dental association that helps in promoting its products. The
dentists and the numerous medical stores have become its chief suppliers along with the
numerous departmental stores, co-operative stores, kirana stores and retail shops. The
products are accessible at every part of the country including rural, semi urban and urban
market.
Nowadays, the online market has also helped the company to reach various customers
successfully. The companys official website along with other online shopping portals
provides the products with a single click of the finger. Customers do not have to waste their
time by going to various shopping centers.

10. References:
1. https://www.pepsodent.in
2. https://en.wikipedia.org/wiki/Pepsodent
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3. www.hul.co.in/brands-in-action/detail/Pepsodent/303997/
4. https://www.pepsodent.in/en-gb/pepsodentg.php
5. http://shodhganga.inflibnet.ac.in/bitstream/10603/16744/12/12_chapter5.pdf

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