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Hindustan Lever Ltd.

               IS NOW
            Hindustan Unilever Ltd.
INTRODUCTION

India's largest Fast Moving Consumer
 Goods company with 80 factories across
 India.

 Hindustan Unilever Limited ‘HUL’,
 formerly Hindustan Lever Limited
 (renamed in late June 2007 as HUL)

 The Anglo-Dutch company Unilever owns
The mission – “add vitality to life.

Sales growth in 2011-12 is 17%

Pepsodent and Close Up together accounted
 for 22% share in 2011-12

Annual turnover - Rs.22,116 crores

Share price Rs 459.20
Product Mix

• HUL has a diverse portfolio of brands
  offering home care solutions for
  millions of consumers across India.
Personal
              Care
             Brands




                        Food
Nutrition
                       Brands




            Home
             Care
            Brands
Lux, lifebuoy, Dove
                         Personal wash     Pears, Rexona, Breeze,



                                                 Surf excel
                            Laundry               Wheel
                                                  Sunlight

                                               Fair & lovely
                            Skin care             Ponds
                                                 Vaseline


                                                  Sunsilk
                            Hair care
                                                   Clinic

Hindustan Unilever ltd

                                                Pepsodent
                            Oral care
                                                  Closeup



                                                    Axe
                          Deodorants
                                                  Rexona



                         Color cosmetics          Lakme




                           Ayurvedic               Ayush
• 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.

• Endorsed by FDI ( the largest dental association globally)

• Among the most trusted brands in India (Brand Equity,
  Economic Times, India)
SEGMENTATION

              • Rural Areas
Geographic    • Urban Areas



              • Normal Use
Behavioural   • Whitening
              • Complete Care


              • Pepsodent G
Demographic   • Pepsodent Kids
              • Pepsodent Milk Teeth Strawberry
Geographic Segmentation
 • The urban market for toothpaste is almost
   stagnant.
 • Hence for deeper penetration in the rural
   markets they have taken the following
   measures
   Smaller 100gms packs priced at 10 rupees
   Tooth campaigns at various schools in villages.
Behavioural Segmentation

• Variants to suit different consumer
  preferences
• G for Gum Care
• Germicheck for Cavities
• Whitening for White teeth
Age

• Pepsodent Kids
  1. Barbie (pink color)
  2. Superman (Blue color)
  3. Tom & Jerry (Orange color)
• Most of Pepsodents products are sold in the
  urban areas.
• The sales 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
TARGET MARKET SELECTION


• Pepsodent is currently into Selective
  Specialization
• Pepsodent Kids for kids
• Smaller and cheaper variants for rural markets
• Pepsodent complete for the educated urban
  consumer
• This type of
  Targeting means
  targeting different
  markets with
  different prducts.
Pepsodent positioning:

• Pepsodent was launched in 1993 by HUL to capture the market
  from Colgate.
• It was launched in the platform of Germ fighting property.

• Pepsodent have experimented with its positioning althrough its life.
• Ad Campaigns to supplement this positioning:
  Lasting Protection for hours
  Germ Fighting Campaign
  Dental Insurance
  Dishum Dishum
  Bhoot Campaign
Inclusion of a germ indicator with a pack of
pepsodent.
 HLL struck back with the famous Dishum dishum
campaign The insight for 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.
 Pepsodent knew that they 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.

 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%.
 And because of this campaign 12 lakhs kids are
 brushing teeth at night now and mothers are happy.
PRODUCT
• Pepsodent has its products
 which cover a large area
• Their products are
Pepsodent Germicheck +
Pepsodent Whitening
Pepsodent 2 in 1
Pepsodent G
Pepsodent Kids
Five Product Levels
What is it made up of?
• Pepsodent was well-known for its minty flavor
  derived from sassafras, and was claimed to
  contain the key ingredients:
• Irium is actually sodium lauryl sulphate, a type of
  surfactant (detergent) that is commonly found in
  toothpastes nowadays. Lauryl sulphates help to
  clean teeth and provide foam that helps to carry
  away debris. It also has antibacterial properties
  and can penetrate and dissolve plaque.
• The other ingredient, “I.M.P” was purpoted to
  whiten teeth. What its letters individually stand
  for remains unknown.
Packaging

• The pepsodent pastes
  are carefully filled into
  plastic tubes which have
  a rotating cap.

• These tubes are then
  placed into a cardboard
  shaped boxes which are
  closed on both ends.
PRODUCT LIFE CYCLE
PRODUCT LIFE CYCLE
• Maturity
• Characteristics of Maturity:
   Heavy Competition
   Search for other target markets.
   Psychological Pricing Methods to gain market
share.
PRICE
TYPE                   PEPSODENT                  COMPETITORS
Vanilla variants –     Pepsodent Germi-Check –    Colgate Dental Cream–
                       Rs. 62 for 200g.           Rs. 65 for 200g

Gel variants-          Pepsodent Center Fresh –   Colgate Max Fresh –
                       Rs. 65 for 150g            Rs. 64 for 150g

                                                  Close-Up –
                                                  Rs. 62-67 (depending on
                                                  flavour) for 150g
Whitening variants –   Pepsodent Whitening-       Colgate Max White-
                       Rs. 65 for 150g            Rs. 65 for 150g

Gum care variants-     Pepsodent G-               Colgate Sensitive-
                       Rs. 37 for 80g             Rs. 80 for 80g

                       Pepsodent Sensitive-       Sensodyne-
                       Rs. 80 for 80g             Rs. 80 for 80g

                                                  Colgate Sensitive Pro-relief-
                                                  Rs. 120 for 80g
• 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 doesn’t have an equivalent.
• Some of the variants mentioned above have sub-
  variants which have a price variation of 1-2 Rs.
• 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.
PLACE
PRODUCT DISTRIBUTION
     CHANNEL
PROMOTION
• 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,”
• Brand Ambassador
In May,2010, Pepsodent had roped in Shah
 Rukh Khan to be their Brand Ambassador.
SRK had been roped in for pepsodents latest
 campaign ‘Pappu & Papa’
• Free Gifts
 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.
• Discounts
 During their promotional offers,
  Pepsodent sells its products at a
  discounted price.
 Else they offer products with offers.
  E.g Buy 1 get 1 free or 150g + 150g =
  Rs 40 and not Rs 50
PEPSODENT KIDS
• 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 -

1. Barbie (pink color)
2. Superman (Blue color)
3. Tom & Jerry (Orange color)
• Product Strategy
• Retailer observations for product improvement mainly involve
  two factors:
• 1. Size of the Pack
• 2. Color Variants

• Small sized packs
• As against the popular notion of high price of the Pepsodent
  Kids, the market can be sustained based on the exclusivity of
  the product for the Kids. Indeed the high pricing of Pepsodent
  Kids as observed in survey is not real but a perception created
  by its ‘Pack Size’. Analyzing the competitor Colgate’s Bubble
  Fruit pricing strategy sheds light on the same as given below.
• Product Weight(Gms.) Price(Rs)
• Pepsodent Kids 80 45
• Colgate’s Bubble Fruit 40 22
CONCLUSION

• Even though the demand of pepsodent is more
  than any of its competitors, its sales are the
  second best behind Colgate.
• In the coming years, Pepsodent is going to
  increase in the toothpaste market but just
  gradually every year.
• Through its promotional strategies, it can spread
  its brand name which can help increase sales.
Color Variants
•   It’s been a proven fact that children are attracted to bright colors more than the dull dark colors. The
    variants available in the market are Tom & Jerry (Orange Packs), Barbie (Pink Packs) and Superman (Dark
    Blue Packs). By the sales figures in the retail outlets, it was seen that the children respond positively only
    to first two variants.

Alternatives
• Attractive colors can be introduced to keep children pulled in to try the new variants every time.
•Special limited editions during festive seasons & holidays can be sold to increase revenue.

•   New cartoon characters in the current day channels (Cartoon Network etc.) can be added as new
    variants. By the TRP ratings, children are found to watch Shin Chan show more and form a potentially
    attractive market for the new variant.
Future Prospects to Increase Its
                    Sales
• 1. A kit can be introduced along with a “Kids Stand” to hold only the Pepsodent
  Kids toothpaste and toothbrush in sockets. The sockets must be made to hold only
  the Pepsodent products.
• 2. The Kids Stand can be introduced in variety of themes matching different
  characters. The kit can also contain a booklet/ sheet depicting a small story or
  characters description. The children view these as their toy and also feel proud of
  owning it.
• 3. Children generally use the toothbrush for 3 months but the toothpaste gets over
  in a month considering 40 gm pack. Hence once the tooth paste gets over, children
  refill the socket with Pepsodent Kids toothpaste in that place

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Pepsodent (Marketing)

  • 1.
  • 2. Hindustan Lever Ltd. IS NOW Hindustan Unilever Ltd.
  • 3. INTRODUCTION India's largest Fast Moving Consumer Goods company with 80 factories across India.  Hindustan Unilever Limited ‘HUL’, formerly Hindustan Lever Limited (renamed in late June 2007 as HUL)  The Anglo-Dutch company Unilever owns
  • 4. The mission – “add vitality to life. Sales growth in 2011-12 is 17% Pepsodent and Close Up together accounted for 22% share in 2011-12 Annual turnover - Rs.22,116 crores Share price Rs 459.20
  • 5.
  • 6. Product Mix • HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India.
  • 7. Personal Care Brands Food Nutrition Brands Home Care Brands
  • 8. Lux, lifebuoy, Dove Personal wash Pears, Rexona, Breeze, Surf excel Laundry Wheel Sunlight Fair & lovely Skin care Ponds Vaseline Sunsilk Hair care Clinic Hindustan Unilever ltd Pepsodent Oral care Closeup Axe Deodorants Rexona Color cosmetics Lakme Ayurvedic Ayush
  • 9.
  • 10.
  • 11. • 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. • Endorsed by FDI ( the largest dental association globally) • Among the most trusted brands in India (Brand Equity, Economic Times, India)
  • 12.
  • 13.
  • 14. SEGMENTATION • Rural Areas Geographic • Urban Areas • Normal Use Behavioural • Whitening • Complete Care • Pepsodent G Demographic • Pepsodent Kids • Pepsodent Milk Teeth Strawberry
  • 15. Geographic Segmentation • The urban market for toothpaste is almost stagnant. • Hence for deeper penetration in the rural markets they have taken the following measures Smaller 100gms packs priced at 10 rupees Tooth campaigns at various schools in villages.
  • 16. Behavioural Segmentation • Variants to suit different consumer preferences • G for Gum Care • Germicheck for Cavities • Whitening for White teeth
  • 17. Age • Pepsodent Kids 1. Barbie (pink color) 2. Superman (Blue color) 3. Tom & Jerry (Orange color)
  • 18.
  • 19. • Most of Pepsodents products are sold in the urban areas. • The sales 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
  • 20. TARGET MARKET SELECTION • Pepsodent is currently into Selective Specialization • Pepsodent Kids for kids • Smaller and cheaper variants for rural markets • Pepsodent complete for the educated urban consumer
  • 21. • This type of Targeting means targeting different markets with different prducts.
  • 22.
  • 23. Pepsodent positioning: • Pepsodent was launched in 1993 by HUL to capture the market from Colgate. • It was launched in the platform of Germ fighting property. • Pepsodent have experimented with its positioning althrough its life. • Ad Campaigns to supplement this positioning: Lasting Protection for hours Germ Fighting Campaign Dental Insurance Dishum Dishum Bhoot Campaign
  • 24. Inclusion of a germ indicator with a pack of pepsodent. HLL struck back with the famous Dishum dishum campaign The insight for 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.
  • 25.  Pepsodent knew that they 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.  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%. And because of this campaign 12 lakhs kids are brushing teeth at night now and mothers are happy.
  • 27. • Pepsodent has its products which cover a large area • Their products are Pepsodent Germicheck + Pepsodent Whitening Pepsodent 2 in 1 Pepsodent G Pepsodent Kids
  • 29.
  • 30. What is it made up of? • Pepsodent was well-known for its minty flavor derived from sassafras, and was claimed to contain the key ingredients: • Irium is actually sodium lauryl sulphate, a type of surfactant (detergent) that is commonly found in toothpastes nowadays. Lauryl sulphates help to clean teeth and provide foam that helps to carry away debris. It also has antibacterial properties and can penetrate and dissolve plaque. • The other ingredient, “I.M.P” was purpoted to whiten teeth. What its letters individually stand for remains unknown.
  • 31. Packaging • The pepsodent pastes are carefully filled into plastic tubes which have a rotating cap. • These tubes are then placed into a cardboard shaped boxes which are closed on both ends.
  • 33. PRODUCT LIFE CYCLE • Maturity • Characteristics of Maturity: Heavy Competition Search for other target markets. Psychological Pricing Methods to gain market share.
  • 34. PRICE
  • 35. TYPE PEPSODENT COMPETITORS Vanilla variants – Pepsodent Germi-Check – Colgate Dental Cream– Rs. 62 for 200g. Rs. 65 for 200g Gel variants- Pepsodent Center Fresh – Colgate Max Fresh – Rs. 65 for 150g Rs. 64 for 150g Close-Up – Rs. 62-67 (depending on flavour) for 150g Whitening variants – Pepsodent Whitening- Colgate Max White- Rs. 65 for 150g Rs. 65 for 150g Gum care variants- Pepsodent G- Colgate Sensitive- Rs. 37 for 80g Rs. 80 for 80g Pepsodent Sensitive- Sensodyne- Rs. 80 for 80g Rs. 80 for 80g Colgate Sensitive Pro-relief- Rs. 120 for 80g
  • 36. • 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 doesn’t have an equivalent. • Some of the variants mentioned above have sub- variants which have a price variation of 1-2 Rs.
  • 37. • 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.
  • 38. PLACE
  • 41. • 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,”
  • 42. • Brand Ambassador In May,2010, Pepsodent had roped in Shah Rukh Khan to be their Brand Ambassador. SRK had been roped in for pepsodents latest campaign ‘Pappu & Papa’
  • 43. • Free Gifts  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.
  • 44. • Discounts  During their promotional offers, Pepsodent sells its products at a discounted price.  Else they offer products with offers. E.g Buy 1 get 1 free or 150g + 150g = Rs 40 and not Rs 50
  • 45. PEPSODENT KIDS • 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 - 1. Barbie (pink color) 2. Superman (Blue color) 3. Tom & Jerry (Orange color)
  • 46. • Product Strategy • Retailer observations for product improvement mainly involve two factors: • 1. Size of the Pack • 2. Color Variants • Small sized packs • As against the popular notion of high price of the Pepsodent Kids, the market can be sustained based on the exclusivity of the product for the Kids. Indeed the high pricing of Pepsodent Kids as observed in survey is not real but a perception created by its ‘Pack Size’. Analyzing the competitor Colgate’s Bubble Fruit pricing strategy sheds light on the same as given below. • Product Weight(Gms.) Price(Rs) • Pepsodent Kids 80 45 • Colgate’s Bubble Fruit 40 22
  • 47. CONCLUSION • Even though the demand of pepsodent is more than any of its competitors, its sales are the second best behind Colgate. • In the coming years, Pepsodent is going to increase in the toothpaste market but just gradually every year. • Through its promotional strategies, it can spread its brand name which can help increase sales.
  • 48. Color Variants • It’s been a proven fact that children are attracted to bright colors more than the dull dark colors. The variants available in the market are Tom & Jerry (Orange Packs), Barbie (Pink Packs) and Superman (Dark Blue Packs). By the sales figures in the retail outlets, it was seen that the children respond positively only to first two variants. Alternatives • Attractive colors can be introduced to keep children pulled in to try the new variants every time. •Special limited editions during festive seasons & holidays can be sold to increase revenue. • New cartoon characters in the current day channels (Cartoon Network etc.) can be added as new variants. By the TRP ratings, children are found to watch Shin Chan show more and form a potentially attractive market for the new variant.
  • 49. Future Prospects to Increase Its Sales • 1. A kit can be introduced along with a “Kids Stand” to hold only the Pepsodent Kids toothpaste and toothbrush in sockets. The sockets must be made to hold only the Pepsodent products. • 2. The Kids Stand can be introduced in variety of themes matching different characters. The kit can also contain a booklet/ sheet depicting a small story or characters description. The children view these as their toy and also feel proud of owning it. • 3. Children generally use the toothbrush for 3 months but the toothpaste gets over in a month considering 40 gm pack. Hence once the tooth paste gets over, children refill the socket with Pepsodent Kids toothpaste in that place