Prepared For.

Suman Saha
Lecturer
Independent University Bangladesh

Market Analysis of ..

PEPSOD ENT

We are:- Group
Group No. 06

SL no.
1 2 3 4 5

Roll no.
1120016 1120144 1120643 1120703 1120126

Name
Zumrat Hossain Shah Paran Mohammad Ziaul Hoque Bhuiyan Lotfunnaher Mily Saima Khanom Chaina Faria Hossain

Now Presented by.

Current Marketing Situation:

Pepsodent was launched in 1993 in the platform of Germ fighting property. Universally, Pepsodent has now a market share of 17% in oral care markets. Initially Pepsodent was launched in the highly successful "long lasting protection for hours after brushing" platform. In 1999-2000 Pepsodent tried to fight the market leader. Pepsodent included the germ indicator to its pack in 2002 followed by an innovative Dental Insurance campaign which reinforced the germ fighting position. Then Come Pepsodent germi check plus magnet. Pepsodent aims to teach the kids to brush at night (with Pepsodent of course) .Research shows that brushing teeth at night can reduce chances of tooth decay by 30%.

Market Description:
In Bangladesh, Pepsodent is the only brand who is leading the market share by own. Pepsodent unique Germicheck formula is fortified with ingredients that remove up to 95% germs in 2 minutes. As a result it prevents common oral problems such as tooth decay, toothache, gum diseases, plaque and provides strong and white teeth with a fresh breath. With our understanding of local needs and preferences, Pepsodent introduced a Toothpowder format which gained immense popularity over the years. The toothpowder is available in two sizes: 50g & 100g. Pepsodent expanded in to the toothbrush category in September 2007 with a view to offering its consumers with better oral hygiene. Since February 2011, local production of toothbrush has started with the variant Pepsodent Fighter. Pepsodent germi check plus magnet is certified by FDI.

Product Review:
Key ingredients are: Calcium Carbonate, Sorbitol, Hydrated Silica, Sodium Lauryl Sulphate, Cellulose gum, Sodium Monofluorophosphate, Triclosan, Sodium Savvharine, Flavour, and Aqua. Fluoride Ion Content: Max. 1000 ppm.
Product Name PEPSODENT GERMI Check PEPSODENT GERMI Check PEPSODENT GERMI Check PEPSODENT HARBAL PEPSODENT HARBAL Size 200 GM. 100 GM 45 GM 200 GM 100 GM Price BD 56.00 BD 33.00 BD 13.00 BD 60.00 BD 35.00

PEPSODENT WHITENING.

200 GM

BD 60.00

Competitive Review:
The main competitors of Pepsodent in Bangladesh are Colgate, White Plus and Close-up (another brand of Unilever). Colgate is carrying some market share in Bangladesh. But Close-up is the most popular toothpaste here because of their flavor and advertisements.

Distribution Review:
They are promoting their ads via TV, Radio, and Internet. They are giving sales on products and also organizing quiz competitions and so on. Their distribution strategy is awesome and they offer variety of prices on size based on different class people for using the products. As they are cheaper and reliable than other toothpastes, they are having a lot of sale in Bangladesh.

Now Presented by.

SWOT Analysis:
Strength:
Pepsodent was the first toothpaste with a unique anti-bacterial agent to address the consumer need of checking germs even hours after brushing. Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth, fresh breath and healthy gums. Pepsodent is the leading brand in most Asian Countries with Indonesia and India as the biggest market. The price of the Pepsodent toothpaste is also very affordable.

Weakness:
Pepsodent has low penetration in the rural areas. Pepsodent failed to incorporate fluoride into their toothpaste, which resulted in other competing toothpaste companies taking the front seat in the toothpaste industry, such as Colgate, Close-Up, White plus etc. Despite efforts in changing the ingredients and improving the toothpaste, the brand Pepsodent never rebounded from the wane in sales.

Opportunity:
Innovative marketing like Pepsodent packs included a Germ Indicator in February-May 2002, which allowed consumers to see the efficacy in fighting germs. Pepsodent campaigns which aims at educating consumers on the need for germ protection through the night. Smaller packaging for rural markets, tie-ups with hotel chains and schools.

Threats:
Competition from internal brand like Close Up in the same segment and external brand like Colgate. Oral hygiene still lacks in the rural parts of the country.

Objectives and Issues:

Pepsodent has some objectives to make and also some issues to reduce: As Pepsodent in Bangladesh in the highest position so here their main goal is to retain their existing top market share and try for further development of their share. Their goal on which they are giving 2nd highest priority is that they must try to make their position further more progressive in Asia. They can generate more profit by screening and modifying more ideas. Pepsodent is in Growth level and their products are making lots of sale. So, they dont need to spend more money on covering. They can change the cover and can have more profit by reducing the packaging cost as the existing covering cost is little bit high comparing to others.

Now Presented by.

Marketing Strategy:
For Pepsodent toothpaste the segmentation is done on the basis of age, product features and needs of the customer. Their target audiences are adult male and female who are both internally and externally increasing the sales of Pepsodent.

Positioning:
Pepsodent is not changing its positioning, it always makes sure that it is a germ-fighting brand; it is only executing it differently. Pepsodent is focusing more on "Rural Area". Packing is also related to rural area Green Pack box, and using promotional strategy that is available with 20g extra.

Product strategy:
Pepsodent has developed a powerful Branding Strategy which has significantly helped the Brand in acquiring substantial amount of share in the oral care market of Bangladesh. In order to strengthen its' Brand Identity, Pepsodent is still restructuring its Branding Strategy. Colgate Branding Strategy was strong enough to position the company as a major brand in the oral care market of India. Still the Brand Pepsodent is continuously updating and improving its' branding strategy in order to strengthen its' Brand Name and Brand Identity.

Pricing Strategy:
In a highly competitive oral care market, Pepsodent maintains its position with a major category . For the growth of category the company's strategies are accomplished by long-term joint planning with retailers. The company has long been on the voyage to establish the best brush with maximum possibility, and in doing so, has developed a number of impeccable products .The price of Pepsodent toothpaste is so cheaper that all kinds of people can easily purchase it .

Distribution strategy:

Transportation:
Truck Rail Water Air

Now Presented by.

Marketing communication strategy:

The Pepsodent 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 teethwhitening ingredients. There are nice advertisements of Pepsodent that are shown in TV channel which helps people to choice Pepsodent to protect their teeth from germs. To create buzz, they will host a user generated video contest on their website. To attract, retain and motivate channel partners for a push strategy, they will use sales promotion.

Action Programs:
Some actions have to take for some reasons:
They can change the shape of entrance tube larger. If they do such change, consumer would use more paste and their sales will grow higher. They have to go door to door of their customers to inform about the product quality. Then it will increase sales promotion and they can gain their target profit. By this way they can do direct marketing. The brand conducts school programmes and runs a Dentibus which primarily provides basic dental care to communities which do not have access to a dentist.

 The product price should be affordable for all stages of people in our country. They have to develop product quality and also can made variety of flavor. They have to generate a survey on the product to know about market value and consumer behavior. They must implement all these actions to retain the position of their product when the competitors come up with their new or further developed products.

Now Presented by.

Budget:
Actually, they dont need to target 16 crore people of our country. If they target only 1 or 2 crore consumers and if they could sell maximum 50 to 60 lakhs product in a month, they can make a huge profit with the sales.
They are offering a 200gm toothpaste with a value of 56.00 taka (whole sale price). Variable cost for making a single product is 34.75 taka (including packaging, Commissions, etc.) and their fixed cost is 1.65 crore taka (including salaries, advertising, insurance, other expenses, etc.) for a single month.

Therefore,
Selling price Variable cost Fixed cost = = = 56.00 BDT. 34.75 BDT per unit. 1, 65, 00,000 BDT.

Based on these assumptions the break even calculation is:

So, if they can sell more than 7, 76,471 products in every month they will meet the profit line.

For a basic assumption if they sell 50 lakhs product, then their profit will be:

Their monthly profit will be above 23.65 crore taka.

Controls:
If Pepsodent wants to keep strong position in the market they should be plan tight control measures to closely monitor quality and consumer service satisfaction.

They can organize some free competition and can give some remarkable and good prizes.

They also can develop their product more than before.

 Otherwise they can add another free with their product like it could be a toothbrush free with 200gm of Pepsodent. Or, they can give a mini sized Pepsodent free with the main product which can say, Buy one get one. Another thing is that they can offer coupon like it can be a scratch card which can contain a tour with your family to foreign country.

So, last of all we can say that Pepsodent is the leading toothpaste brand for a long time in our country. They are in growth level and their product is very popular. As their strategy is always updated with the necessity of time being, they will able to retain their existing position with a great success in our country.

Do you have a Pepsodent smile?

Then, Smile please.

for being with us..