In Partial Fulfillment for English 02

Market Revival of Pepsodent Toothpaste

Submitted by: Aguilar, Archimedes Faustino, Gabriel Modina Jaydee 1-DMC

Submitted to: Professor Rowena Rivero

March 15, 2011

1 Millions of Americans went to bed each night brushing their teeth with Pepsodent toothpaste during the first half of the 20th century. The brand was spotlighted in numerous print, radio and TV ads with catchy jingles and snappy dialogue. Pepsodent stood out from the pack because of its notably minty flavor and teeth-whitening ingredients (Fidlin, 2011). Pepsodent toothpaste is manufactured by the Unilever Corporation and it was at one time one of the most popular brands of toothpaste in the United States. Yet, producers of toothpaste such as Crest started touting the addition of fluoride in their paste which caught on with the public. Pepsodent did not adjust swiftly enough and saw their brands popularity wane and it has since never recovered the popularity or sales that it once had (Natural Toothpaste, 2011). Information on Pepsodent's earliest days is scarce. Company executives at Church & Dwight, the owner of Pepsodent, claim the brand was introduced in the early 20th century, initially as a tooth powder that eventually morphed into a paste form. Pepsodent allegedly struggled through the late 1920s, at which time it began sponsoring radio programs, including one hosted by Bob Hope. It first was made available during the 1920's and reached its height of popularity during the 1930's through the early 50's. The move led to greater name recognition (Natural Toothpaste, 2011). Pepsodent advertisements spotlighted the toothpaste's distinguishing features. It had a minty flavor that was derived from sassafras, an ingredient found in some varieties of tea and such soft drinks as root beer and sarsaparilla. Advertisements also pointed out the presence of irium (otherwise known as sodium lauryl sulfate) as a mechanism for fighting tooth decay, and to an ingredient known as IMP for preventing tooth decay (Fidlin, 2011). 2

Throughout the 1950s, Pepsodent was one of the most popular toothpaste brands in the United States. But such brands as Colgate and Crest from competing companies were adding a new ingredient--fluoride--when it was discovered the chemical compound helped fight cavities. Heading into the 1960s, Pepsodent had not yet added fluoride, and sales were waning (Fidlin, 2011). In 2003 household-manufacturing company Church & Dwight purchased the Pepsodent brand rights in the United States from Unilever, a British and Dutch company that sells an assortment of consumer products throughout the world. Unilever still holds the rights to Pepsodent, where it is sold outside the U.S. Church & Dwight also holds the rights to such toothpaste brands as Aim, Arm & Hammer, Close-Up and Mentadent (Fidlin, 2011). Although the ingredients in Pepsodent have been tweaked over time, the brand never rebounded from the decline during the middle part of the 20th century. It is now considered a value brand alongside some of the bigger names in the industry. Stores selling Pepsodent usually offer it for half the price of such giants as Aquafresh, Colgate and Crest (Fidlin, 2011). According to the company website, Church & Dwight offer two versions of Pepsodent-one with the original flavor and another with enhanced whitening ingredients. Both versions, according to Church & Dwight, feature a "proven cavity-fighting formula" that aids in the removal of plaque and promotes strong enamel and healthy gums as well as tartar control (Fidlin, 2011). Today, Pepsodent toothpaste is not considered one of the top brands of toothpaste. It is available only at certain retailers and is marketed as a discount brand. It normally sells for about half the price of top brands such as Crest and Colgate. 3

The researchers will start collecting raw data or processed information about the topic. These raw data or processed information will be retrieved from published periodicals such as newspaper and magazine articles, books, and internet. Similar studies will also be used as basis for data or information analysis. An 11-15 page paper is expected to be finished from the study. The paper already includes the bibliography and appendix.

The studys main objective is Pepsodent toothpastes product revival in the Philippine market. The research has specific objectives: 1. To determine if advertising help boost product sales. 2. To identify consumers preferences in buying dental health products, specifically toothpaste. 3. To verify if Pepsodent toothpastes advertisements affect consumers preferences over its dental health claims.

The research aims to determine the marketing strategies or techniques that would revive Pepsodent toothpaste specifically to the Philippine market. The study intends to answer the following questions: 1. How does advertising help boost product sales? 2. What are the consumers preferences in buying dental health products, specifically toothpaste? 3. How does the advertisement of pepsodent toothpaste affect consumers preferences over its dental health claims?

4 The research seeks to abet Pepsodent Toothpaste due to its current market predicament in the Philippines. The study will provide information on how Pepsodent toothpaste may be able to regain its market share on toothpaste products. Consumers will also be given ample proof on how the product remains to be quality and dentally tested but at the same time affordable and interesting to their taste.

The research focuses on the marketing strategies or techniques needed by Pepsodent toothpaste in order to make a promising comeback. The study also includes the consumers preferences over toothpaste products and opinions over Pepsodent toothpastes product claims. The study will only cover the Philippine territory centering on its market and consumers.

Millions of Americans went to bed each night brushing their teeth with Pepsodent toothpaste during the first half of the 20th century. The brand was spotlighted in numerous print, radio and TV ads with catchy jingles and snappy dialogue. Pepsodent stood out from the pack because of its notably minty flavor and teeth-whitening ingredients (Fidlin, 2011). Pepsodent toothpaste is manufactured by the Unilever Corporation and it was at one time one of the most popular brands of toothpaste in the United States. Yet, producers of toothpaste such as Crest started touting the addition of fluoride in their paste which caught on with the public. Pepsodent did not adjust swiftly enough and saw their brands popularity wane and it has since never recovered the popularity or sales that it once had (Natural Toothpaste, 2011). Information on Pepsodent's earliest days is scarce. Company executives at Church & Dwight, the owner of Pepsodent, claim the brand was introduced in the early 20th century, initially as a tooth powder that eventually morphed into a paste form. Pepsodent allegedly struggled through the late 1920s, at which time it began sponsoring radio programs, including one hosted by Bob Hope. It first was made available during the 1920's and reached its height of popularity during the 1930's through the early 50's. The move led to greater name recognition (Natural Toothpaste, 2011). Pepsodent advertisements spotlighted the toothpaste's distinguishing features. It had a minty flavor that was derived from sassafras, an ingredient found in some varieties of tea and such soft drinks as root beer and sarsaparilla. Advertisements also pointed out the presence of irium (otherwise known as sodium lauryl sulfate) as a mechanism for fighting tooth decay, and to an ingredient known as IMP for preventing tooth decay (Fidlin, 2011). 6 Throughout the 1950s, Pepsodent was one of the most popular toothpaste brands in the

United States. But such brands as Colgate and Crest from competing companies were adding a new ingredient--fluoride--when it was discovered the chemical compound helped fight cavities. Heading into the 1960s, Pepsodent had not yet added fluoride, and sales were waning (Fidlin, 2011). In 2003 household-manufacturing company Church & Dwight purchased the Pepsodent brand rights in the United States from Unilever, a British and Dutch company that sells an assortment of consumer products throughout the world. Unilever still holds the rights to Pepsodent, where it is sold outside the U.S. Church & Dwight also holds the rights to such toothpaste brands as Aim, Arm & Hammer, Close-Up and Mentadent (Fidlin, 2011). Although the ingredients in Pepsodent have been tweaked over time, the brand never rebounded from the decline during the middle part of the 20th century. It is now considered a value brand alongside some of the bigger names in the industry. Stores selling Pepsodent usually offer it for half the price of such giants as Aquafresh, Colgate and Crest (Fidlin, 2011). According to the company website, Church & Dwight offer two versions of Pepsodent-one with the original flavor and another with enhanced whitening ingredients. Both versions, according to Church & Dwight, feature a "proven cavity-fighting formula" that aids in the removal of plaque and promotes strong enamel and healthy gums as well as tartar control (Fidlin, 2011). According to Pinoy Exchange (2002), Pepsodents Philippine debut was in the early 1990s but was slowly pulled out of the market during the mid 2000s. Pepsodent toothpastes Philippine debut was scarcely recorded and was not well documented but it came to a time that 7 the product over-powered Colgate in supermarkets. Unilever, Pepsodents manufacturer, said to

have pulled the toothpaste out of the market to introduce Close-up and compete with Colgate. Pepsodents recent market comeback comes as no surprise yet current strategies are not enough to fully sell the toothpaste back to Filipino consumers. The brand needs all the marketing strategies or techniques to be able to make a sound riposte and promising name for a toothpaste brand. Pepsodent toothpaste will need product revival methods to regain market share. Modern strategies such as visual, audio-visual and electronic media are todays number one market catchers. Mass media refers collectively to all media technologies, including the Internet, television, newspapers, and radio, which are used for mass communications, and to the organizations which control these technologies. Mass media play a significant role in shaping public perceptions on a variety of important issues, both through the information that is dispensed through them, and through the interpretations they place upon this information. Mass media can be used for various purposes: [1]Advocacy, both for business and social concerns; this can include advertising, marketing, propaganda, public relations, and political communication. [2]Entertainment, traditionally through performances of acting, music, and sports, along with light reading; since the late 20th century also through video and computer games and [3]public service announcements (Nerone, 2006). Mainstream media is now imperative but the bigger challenge is to rovide the quality content. Nowadays, the various media no longer buy time from the consumer. They must now create time or engage the customer more (Veneracion, 2007).

8 According to Oxford University Press (2011), visual media is a type of mass media that

involves large scales advertisements such as billboards and print media. Billboard is a type of visual media that uses an enlarged image commercial commonly located along infrastructures near highways. If New York has world class displays of billboards, Manila ha Edsa that is filled with huge advertising visuals. Edsa earns the title as tag Billboard Avenue. Billboard is the oldest form of advertising. It was called signage which was used by the Egyptians, earliest form of marketing communications, who chiseled sales and promotional messages on stone. Today, marketers begin to seriously look at billboards as means to establish brand awareness (De Asis, 2006). Oxford Unviversity Press (2011) defines Print media as a type of visual media that involves public press presentations such as newspapers, magazines, and brochures. Newspaper is a printed publication containing news, feature articles, advertisements, and correspondence. Magazine is a periodical publication containing articles and illustrations, typically covering a particular subject or area of interest. Brochure is a small book or magazine containing pictures or information about a product. The print medium maintains a vital role as the quality of reporting and the level of trust is maintained in the times when content is king. It also time to debunk the myth that newspapers are dying (De Vera and Garcia, 2009). According to Stewart and Kowaltzke (2001), audio-visual media is the type that involves a visual and sound interaction. The term audio-visual support (AVS) may refer to works with sound and visual component, the production or use of such works, or the equipment involved in presenting such works. Films and television programs are examples of audio-visual presentations. Business presentations are also usually audio-visual. In a typical presentation, the 9 presenter provides the audio by speaking, and supplements it with a series of images projected

onto a screen, either from a slide projector, or from a computer connected to a projector using a presentation program. The term audio-visual is used usually as industry jargon, expressing works with a type of visual and/or audio format. In the developed world, there has been a huge uptake of computerbased audio-visual equipment in the education sector, with many schools and higher educational establishments installing projection equipment and often using interactive whiteboard technology. This media includes infomercials and motion pictures or popularly called movies. Infomercials are defined as a television or radio broadcast presented in the form of a short documentary. Television is a system for transmitting visual images and sounds thats chiefly used to broadcast programs for information, entertainment, and education while radio is the activity or industry of broadcasting sound programs to the public. (Oxford University Press, 2011) Television remains to have a wide presence with 98% of Filipino audiences tuned to terrestrial television stations. Television reach is important to Filipinos that despite the economic crisis, Filipinos continue to purchase and are even willing to shell out for quality content (De Vera and Garcia, 2009). A motion picture or movie is an audio-visual presentation used by advertisers to promote products. Film also called movies, the cinema, the silver screen, moving pictures, photoplays, picture shows, flicks, or motion pictures, is a field that encompasses motion pictures as an art form or as part of the entertainment industry. Because photographic film historically has been the primary medium for displaying moving images, academics often refer to this field as the study of film. Motion pictures are an art form, a popular form of entertainment, 10 and a business. Film is produced by recording "real" people and objects (including played-out fantasy and fakes) with cameras, and/or by animation. The word film also often refers to

photographic film used to make still photographs, or to the flexible strip of plastic covered in a light-sensitive silver halide solution, also called film stock, on which motion pictures have historically been made (Word IQ, 2011). According to Oxford University Press (2011), electronic media is a kind of media that uses uploaded electronic sources. Internet is the most used type of electronic media. It is a global computer network providing a variety of information. A specific type of online catalog is an online periodical. Online periodicals are web-uploaded electronic sources found specific engines on the web. Another type of electronic media is an electronic periodical. Electronic Periodicals are uploaded sources found on desktop or network computers commonly used for basic data/information research. There are basic principles of launching a brand on the Internet. First, the site should have separate and unique name, one that is also short, easy to spell and easy to pronounce. Second, the site should try to be the first in a new category. Amazon was first in books, for example. Third, the primary objective of the site should be to sell products or services, not to become a medium of advertising. Advertising will never become a major factor on the internet. Why? Because the internet is interactive and it its just too easy for consumers to turn off the advertising. Lastly, in theory, one can have a focus that is too narrow. For example, maybe left-handed tennis racquets or ice cream for dogs is too narrow focuses to have but peoples experience find that almost no companies have too narrow a focus. People tend to get into everything, which is why most companies are left unfocused (Roberto and Roberto, 2006). 11 At whatever expense, the consumer will always be right. Marketing strategies or techniques are only promotional packages that can stimulate customer interest. Still, consumers

have a say on what they prefer and what there opinions are on product claims. According to Gutierrez (2004), toothpaste can be considered an important personal care product because its usage is independent of age, sex, or disposable income. Since toothpaste products have high usage and familiarity, it will be easier to obtain consumer opinions, and this could minimize data collection costs. Moreover, the investigator has considerable knowledge of the personal care products and their markets, having worked with the Philippine marketers for nine years from 1985 to 1993. Foreign branding has little influence on customer interest but still, consumers still have a say on why they think they need foreign brands nowadays. According to Espino (2006), they say that by bringing foreign brands into the country, Filipinos get the chance to access good brands even without having to travel. At the same time, this elevates the quality control of local products which now try to improve on their esthetics and services to be able to compete with foreign brands. Opinions on price cut promotions are also important for consumers who are particular about promotional strategies. First, a consumer considers the product category where a brand belongs. Next, one considers the price segment a particular brand is in. Third, a consumer also regards brands competitive status and earned brand equity. With this mentioned, promotional strategies will only work once a brand or product has proved itself qualified in the market for a certain time period (Roberto and Roberto, 2006). According to Tordesillas (2006), marketing is the most fundamental aspect of business. It 12 is defined as finding unmet needs and filling them. So, an effective marketing factor that consumers deem considering is product packaging. One big difference is the moment of sale,

where customer and product meet. Packaged goods stay on the shelves and wait for their date with destiny. The customers moment is telescoped to that single decision when the consumer is eye to eye with a can of corned beef. After the can is put on the cart, the customer interface is done. A packaged-goods approach may not always be appropriate for the service business. Say that a brand has a successful promo with a price-reduction scheme that makes the products fly off the shelf; volume and sales of the product are easy measures of success. However, a great promo in service may create serious problems on product delivery. The trend for packaged-goods marketers to take over the same role in services has spawned the happy meal approach. Services are combined in specific menus and offered at a cheaper price than if purchased separately. This combo approach is really no different from an old-fashioned price discount, a favorite tool of the packaged product marketer. The other challenge is explaining the complex choices to the customer who is so overwhelmed by the increasingly convoluted packaged that he goes back to the plainest (Samson, 2010). A number of important implications on marketing communications are given by consumer opinion and preference. First, it identifies the prominent product attributes perceived by the consumers. It is true that the salient attributes can be indirectly found by an analysis of the brand market shares and the segmentation among the brands. However, this study provides a more useful picture because it utilizes direct consumer responses (Gutierrez, 2004).

13 Second, product managers may have the opportunity to know the strengths and weaknesses of their brands by examining the box plots of the important variables. The analyses

could be brought down to a micro level by determining the attitudes and demographics of people who are predisposed to certain product attribute (Gutierrez, 2004). Third, the territorial maps and the pair wise squared distances between brands, generated by multiple discriminant analyses, may serve as product positioning maps that summarize the consumer evaluations of the product brands in terms of the perceptual attributes. Toothpaste segmentation as shown by territorial maps is crystal clear. Colgate owns therapeutic segment while Close-Up whose taste was rated higher captures the cosmetic segment. Hapee dominates the low price segment. Since the three toothpaste brands are targeting different customers, manufacturers of each brand can be confident that competition from the other brands would not seriously affect their business (Gutierrez, 2004). Fourth, some knowledge of the attributes the consumer perceives to be important may prove useful in the concept development of marketing communications such as television and radio advertisements. For toothpaste, communicating therapeutic benefits and providing assurance on product quality is critical. Cosmetic benefits and lifestyles maybe more appropriate for Close-Up, rather than Colgate. Moreover, research and development teams may benefit by knowing the important consumer attributes as they develop new product formulations and packaging (Gutierrez, 2004).

14 Pepsodent toothpaste is an American product that has been pulled-out of the Philippine market but has gradually made its come back in recent years. The product still needs to undergo

different marketing revival strategies for it to attain full market recovery. The research contains the brief history of Pepsodent toothpaste and the different advertising techniques it needs to make a pronouncing comeback into the market. Pesodents history can be traced back to the 1920s until its disappearance in the 1950s. The toothpaste is a product of Unilever until Dwight and Church bought it rights in America at 2003. Pepsodent was a major hit until certain brands like Colgate and Crest took over. Its Philippine debut was not well documented but it arrived approximately in the 1990s but the toothpaste was pulled-out of the market at around mid 2000s in order to give way for Close-up. Today, Pepsodent toothpaste is not considered one of the top brands of toothpaste. It is available only at certain retailers and is marketed as a discount brand. It normally sells for about half the price of top brands such as Close-up and Colgate. Unilever uses item revival strategies for Pepsodent toothpastes comeback. Advertisings the most effective revival strategy there is. Mass media refers collectively to all media technologies, including the Internet, television, newspapers, and radio, which are used for mass communications, and to the organizations which control these technologies. Mass media play a significant role in shaping public perceptions on a variety of important issues, both through the information that is dispensed through them, and through the interpretations they place upon this information. Mass media can be used for various purposes: [1]Advocacy, both for business and social concerns; this can include advertising, marketing, propaganda, public relations, and political communication.
[2]

Entertainment, traditionally through performances of acting, music, and sports, along with light 15

reading; since the late 20th century also through video and computer games and [3]public service announcements. With the use of todays technology and resources, Unilever will be able to give

Pepsodent its former glory. Using mainly mass media as the basis for market revival, the toothpastes chance is very much hopeful. Product revival is a marketing strategy that gives a certain brand or item a launching look, quality, characteristic or purpose that would deem fit in the lifestyle or market at a present institution than its past instigate. With consumer preference and opinion as basis for product launch, Unilever may assess improvements on Pepsodent toothpaste and could make the product adapt to peoples fondness and liking. The researchers conclude that Pepsodent toothpastes revival is attainable if Uniliver Philippines use modern advertising techniques or strategies to recapture consumer interest.

16 (2010). Mass media. Oxford English Dictionary. Retrieved March 9, 2011, from http://oxforddictionaries.com/?attempted=true

(2010). Pepsodent toothpaste in the Philippines. Retrieved March 08, 2011, from http://www.streetsmartchic.com/2010/09/ pepsodent-toothpaste-in-the-philippines/ (2011). Audio-visual. Retrieved March 9, 2011, from http://www.wordiq.com/definition/ Motionpicture (2011). Pepsodent toothpaste. Retrieved March 03, 2011, from http://naturaltoothpaste.info/pepsodent-toothpaste/ (2011). Pinoy Exhange Bakit nawala ang pepsodent toothpaste? Retrieved March 9, 2011, from http://www.pinoyexchange.com/forums/showthread.php?t=143767 (2011). Oxford University Press. Retrieved March 03, 2011, from http://oxforddictionaries.com/?attempted=true (2011). Visual Media. Retrieved March 9, 2011, from http://en.wikipedia.org/wiki/Visual_media

Nerone, John (2006). Approaches to Media History. Valdivia: Wiley-Blackwell. p.102

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Dr. Roberto, Ned, Roberto, Ardy (12 May 2006). What are the basic priciples of launching a 17 brand on the internet? Philippine Daily Inquirer. Vol. 21, p. B2-2 Dr. Roberto Ned, Roberto, Ardy (19 May 2006). Will price-cut promos damage our brand

equity? Philippine Daily Inquirer. Vol. 21, p. B4. Espino, Margie Q. (25 September 2006). Why we need foreign brands. Philippine Daily Inquirer. Vol. 21, p. B2-B6 Fidlin, Dave (2011). The History of Pepsodent Toothpaste. Retrieved March 8, 2011, from http://www.ehow.com/about_5246020_history-pepsodent-toothpaste.html Gutierrez, Paul (2004). DIFFERENTIATING AMONG MAJOR PHILIPPINE TOOTHPASTE BRANDS: A QUANTITATIVE STUDY. Retrieved March 9, 2011, from http://www.upd.edu.ph/~cba/ DP/0407_gutierrez.pdf Lincoln, D.G. A Success Story: From Near Extinction To Top Selling Brand. Retrieved March 03, 2011, from http://www.oldtime.com/commercials/1920%27s/Pepsodent%27s%20 Success%20Story.htm Samson, A.R. (20 September 2010). Packaged Services Philippine Daily Inquirer. Vol. 24, p. 4-5. Stewart, C and Kowaltzke, A.(2000). Media: New Ways and Meanings (second edition). Australia: JACARANDA. pp.102 Tordesillas, Cesar E. (9 April 2006). On why marketing is the most fundamental aspect of business. Philippine Daily Inquirer. Vol. 107, p. C1. Veneracion, Connie (22 March 2007). Ads and celebrity endorsement. Malaya. Vol. 21, No. 34