Title : A company proposes to launch a new toothpaste t oothpaste for kids in the Sri Lanka. Forcast the size of the market segment and develop positioning statement for this new toothpaste. How would would you promote !ou !ou may may limit your scope of work to one country of your choice.
Oral care is a highly practicing health habit in all over the world. In Sri Lanka it may have once been a narrow market market segment, but today it represent represent a fourishing sector with several sub segments. Tooth Tooth paste and tooth powder have a combined household penetration in Sri Lanka o !". In #$$%, Lanka &arket 'esearch (ureau )L&'(* estimated this market to be worth rupees #.% billion with an annual volume o appro+imately appro+imately %$$ metric tonnes, in this tooth paste accounts or marginally over # billion rupees. -hen it comes to kids toothpaste, it is now being developed by some companies in order to capture this market segment. In over #$ million o population in Sri Lanka #." are a re between $ to / o years age, which is over %0 hundred thousand. 1lso /2." are between $ to /$ years o age, which is over 02%$ $$$. 3irst 3irst we have to de4ne age limits o 5ids, we can concern $ to /$ years o age group as kids, which is /2." o population in Sri Lanka.
&arket Segmentation &arket segmentation segmentation is a process o de4ning and sub dividing homogeneous markets in to clearly identi4able segments that have similar needs, wants and demand characteristics. &arket can be segmented by in our main ways. /* 6emographi 6emographic c segmentati segmentation on 7 This consists o dividing the market market into groups based on variables such as age, gender, amily si8e, income, occupation, education, religion, race and nationality. #* 9sy 9sychogr chographic aphic segmentat segmentation ion : This will mainly ocus on the lie lie style on the consumer and the psychological variables such as sel image and personality. personality. 0* ;eographic ;eographic segmentati segmentation on 7
It is a segmentation strategy where by the intended audience or a given product is divided according to geographic units such as regions, countries, cities and climate.
* (ene4ts segmentation : ðod o determining a target audience or a particular product in terms o those people who wants the bene4ts the product o>ers. There are di>erent audience or di>erent perceived bene4ts.
5otler has suggested market sements must be, &easurable 7 It must be possible to identiy the number o buyers in each market segment so that the potential pro4tability can be assessed. 1ccessible 7 It must be posible or organi8ation to reach the segment. Substantial 7 The cost o reaching the particular segment must be less than the bene4t. •
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Segmentation o new toothpaste or kids &arket segments can be done in many ways or this new toothpaste or kids which is to be launched. /* 6emographic segmentation •
1ge This is the main variable in demographic segmentation. Since it is a kids toothpaste it clearly depends on age. 1s we mentioned early kids age between $ to /$ are o /2." in Sri Lankan population. ?ence,this company can take this segment or their marketing process by segmenting in age, The company needs to serve them with various favours toothpaste where kids are more like o. 1lso, they can serve kids toothpaste which cause no harm even i it is swallowed by kids.
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This is another variable in demographic segmentation. Once the company picked the segment by age, they can also look a segment de4ned by gender. They can introduce kids toothpaste in several colours pack even though the content inside is similar in order to attract the kids. Some colours or girls and some other colours or boys where in Sri lanka %0" o kids are emale. Therore they can easily target the particular market segment. #* ;eographic segmentation 'egion 'egion is an important variable in this segmentaton method. In Sri Lanka, we can vary the kids toothpaste rom province to province. Since @orth Aentral province o Sri Lanka is known to have more calcium in the waters, we can promote kids tooth paste which contains low calcium to this region. •
1t the same time we can market our kids toothpaste or rural areas, we can promote it by making in sachet packets which would be more cheaper or the peaple o rural areas. •
Alimate 3urthermore the people who live in cool climate regions such as @uwara Bliya have to lessen the mint favour because it will a>ect temperature o the toothpaste and give coldness in the mouth. Thereore kids tooth paste which contains mint should be reduce when we promote in cool climate regions.
9ositioning 9ositioning involves the ormulation o a de4nitive marketing strategy around which the product would be marketed to the target audience.
9ositioning techniCues /. Dnde>erencited positioning 7 This is the delivery o single product to the entire market. #. 6i>erentiated positioning 7 This is the delivery o several products each aimed at a separate market segment. 0. Aoncentrated positioning 7 <0=
This is the delivary o a single product to a particular market segment. 1s ar as the launch o the new toothpaste or kids is concerned the most suitable positioning techniCue would be di>erentiated positioning or concentrated positioning. (ecause i the company promotes kids toothpaste or girls and boys seperately and de>erent toothpaste or kids in cool climate region and dry climate region seperately then that would be considered as de>erentiated positioning. I the company promotes only the new kids toothpaste targeting kids market which is /2." o population in Sri Lanka then that would be considered as concentrated positioning.
&arketing mi+ or kids toothpaste &arketing mi+ is a set o controllable variables that the 4rm uses to infuence the target market. (asic marketing mi+ is reerred as E 3our 9Fs E /* 9roduct 7 This reers to the product which is to be marketed. In this scenario the product would be new toothpaste. -hen developing this kids toothpaste, the company should consider these two things, System to monitor customer perception o this product. 9roduct Cuality must meet the 4tness or purpose. • •
1lso product embraces eatures, Cuality, durability, design, brandname, logo, packaging, ater sales service etc. since this is a toothpaste or kids company should consider on designing that in a way where kids would get attracted easily. 3or the best output the company have to look competitorFs product. In Sri Lanka, there are several kids toothpaste in the market. Such as 5odomo, Aolgate and Signal Gunior. So to capture the kids market the company should include the eatures o those toothpaste which are already in the market. I not the new toothpaste will be reGected by the target group as they are adopted to it. 3or e+ample, 5odomo a kids toothpaste in the market has a eature that can be swollowed and it will make no harm. So this company cannot omit that eature in there product since that is the most secured way to have a toothpaste or kids. 1t the same time toothpaste can be produced in various favours since it is a kids toothpaste where kids are more ond o favours.
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(rand is a uniCue design, symbol, words or combination o these employed in creating an image that identi4es a product and di>erentiates it rom its competitors. 1s ar as brandname o this new toothpaste is considered it should be named and designed in a way where kids would have onded o it. 3or e+ample, when we take 5odomo kids thoothpaste )commpetitive product in the market*, since it is a Gapanese product, the name 5odomo is the Gapanese word or child. Similarly this company would also name their toothpaste with amiliar and easily understandable one. This would help the company to gain the market share.
#* 9lace 7 9lace reers to locations where product can be purchased, distribution channel, distribution coverage etc. Sicnce kids toothpaste is a normal good which is used in daily lie routine, it could be arrange to a>ord at every possible places. &ost preerably at retail shops. ?ence, the most suitable distribution channel would be Two level channel or three level channel. Two level channnel 3irm
-holesaler
'etailer
Austomer
Three level channel 3irm Austomer
1gent
-holesaler
'etailer
0* 9romotion 7 This represents all o the communication that a marketer may use in the market place. @ew toothpaste or kids which the company is going to launch may use promotinal activities such as, •
1dvertising 7 @on:personal presentation targeted at a speci4c market. B+amplesH 1dvertising about new toothpaste or kids on T# and $adio. Sometimes company can use children
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celebrities or advertisement. 1lso it is better to advetise at the time when children do watch the T. Setting up "ill%oards and posters on new kids toothpaste. Setting up posters at kids medical centres and child care centers. &nline and social media advertisement. Bven though kids are not in the social media platorms, most o the parents aged #% to %$ are in social media network. 1dvertising on sociall media will infuence them to buy this toothpaste or their kids.
Sales promotions 7 Short term incentives to encourage sales. B+ampleH 'iveaways, o>ering the toothpaste or ree in order to capture them. 9romoting by displaying and through e(hi%itions. )roduct sponsorship, sponsoring the kiddies programmes on the name o new kids toothpaste. 9ublicity J public relations 7 @on:personal stimulation o demand by signi4cant news items in the media. B+ampleH *ompany open days+ inviting large amount o people or company open days and convey the inormation o this new kids toothpaste to them. )ress releases+ relesing inormation regarding the launch o new kids toothpaste to the press. ?olding ,orkshops or parents about the importants o the oral care o kids at nursery schools and primary schools.
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product packaging 7 packaging commmunicates abouts product. B+ampleH la%elling the new toothpaste in a way where kids get attracted easily. it means there is a di>erent between adults toothpaste and the kids toothpaste. In adultFs toothpaste there wonFt be eye catching colours but in kids toothpaste. )ackage design+ designing the package to amiliar to children. Dsing cartoon designs etc.
* 9rice 7 <2=
The price is the amount a customer pays or this toothpaste. 9ricing includes basic price levels, discounts and allowances, payment terms, credit policy etc. the company which is to launch a new toothoaste or kids may consider these approaches to pricing. 9enetration pricing 7 1 low price is set initially in order to gain rapid growth in market share. Later the price can be increased. This company can adopt this pricing method or their new kids toothpaste. Since they are newly going to enter to the market setting lower price innitially would bene4t them. •
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Aost:plus pricing 7 1 pro4t margin or markup is added to the cost to arrive at the price. Aompany would also consider this pricing strategy in order arrive at the price. Aompetitive pricing 7 Setting a price by reerences to the prices o competitive product. This is also can be adopted or the new kids toothpaste where price is set according to the competitive product.
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