1. Creating A Market for Herbal Toothpaste - Herbi

2. Big Question What is the right marketing mix for Herbal Toothpaste –
Herbi?

3. Case Study Methodology
Sample Enquiry method
25 Consumers were selected at random
Administer questionnaire on 25 consumers
Visit a market place, preferably outside the grocer or a chemist
Interview the seller on the general selling trend shown by the product in last two years.

4. Product Details Year of establishment: 2002
Places of distribution: Delhi and NCR
Price: Rs. 62 per 150 gm.
Target customers: Middle and upper class, of all ages.
Channel of distribution: The product reaches through an agent and wholesaler to the retailer.

5. Analysis of Survey No. of people aware about Herbi 6
Source of information about Herbi
Newspapers and Magazines
Price of toothpaste expected by customers on an average
Rs. 40 per 200 gm
No. of people weighing quality more than price 5
No. of people weighing price more than quality 20

6. Analysis of Survey 10 to 25 yrs 26 to 35 yrs 36-55 yrs
10 to 25 yrs
26 to 35 yrs
36-55 yrs
Popularity of the product 3 2
Price (in Rs) suggested (per 200 gm) 40 45
Prefer quality at competitive price 8 6
Prefer quality at any cost 5
Packaging facilitates branding 12

7. Graph – Customer Preference
Sample Size: 25 customers

8. This is Herbi’s market share!

9. Shows a declining trend in each quarter, it’s a serious issue…

10. The Market Overview
Competition is quite low in this segment, having only two companies producing the herbal toothpaste. Moreover, market studies show consumers prefer using conventional methods of dental care such as datun etc. over toothpaste
The market is currently flooded with toothpaste that are non-herbal (fluoride, medicated etc) and to break the brand loyalty for these toothpastes is challenging.

11. The Market Overview
Existing market leaders are making huge investment on promoting their products to the targeted customers.
Firms have also been observed to modify their products to reach to the greater number of audience.
Firms are pushing their sales through incentives of free gifts with every purchase and “Buy one, get one free” schemes.

12. The Challenges
No tangible differentiation has been made in the product, though they are significant for the customers, assists facing competition, encourages non-price competition.
The market segmentation for the product is poor. Customer study in each segment seems to be poor.
The market survey reveals, Herbi has very weak promotional strategy.

13. The Challenges No research on the packaging of the product.
Marketing of the product is not strong enough to attract the customer.
The name of the product does not highlight the features of the product.
Price decided without any research about the economic status of the target consumers.

14. The Mantra…..
The name of the brand should be highlighted with prominent fonts and colors to make it significant.
Research on targeted consumers and plan accordingly Do not repeat a mistake to build a brand by trying to appeal to everyone.
Herbi should be presented with a simplified message.

15. The Mantra…..
Remove the agents and the middle men. Minimise the channel of distribution to reach consumer. Shorter the channel, lesser the cost and better the control and check on losses.
Range the product price somewhere between Rs. 40 – 45 per 200 grams to remain competitive.
Use Advertisements, hoardings and pamphlets as a medium to get closer to your target consumers.

16. The Mantra…..
Study shows lesser penetration among young generation. Hence, greater emphasis to target younger generation.
More Sensitive about packaging.
Colorful packaging, increase the font size of the brand name
Paste three important features of the product on the package.
Gradually after gaining acceptance, Herbi can create a brand loyalty through electronic and print media as well.

17. Have Shorter Channel to reach out to Consumers!

18. To determine Right Marketing Mix, We have to
Identify the target customers
Discover and understand the need and desire of
the customer
Design an appropriate mix of Product, Price,
Promotion and Channel
Test this designed mix with a small group of customers.
Reaction of customers will indicate the adjustments in the
mix
After the necessary modifications the mix is adopted and put
in to use. It is evaluated from time to time and adapted to
the changing environment

19. Remember, the Mantra to sustain in the Market
To consider the market changes
To be vigilant about the competitor’s
marketing mix
To review marketing mix periodically and
change it as per the market trend

20. Thank You