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Oral care is a highly practicing health habit in all over the world. In Sri Lanka
it may have once been a narrow market segment, but today it represent a
flourishing sector with several sub segments. Tooth paste and tooth powder
have a combined household penetration in Sri Lanka of 89%. In 2005, Lanka
Market Research Bureau (LMRB) estimated this market to be worth rupees
2.5 billion with an annual volume of approximately 4500 metric tonnes, in
this tooth paste accounts for marginally over 2 billion rupees.
When it comes to kids toothpaste, it is now being developed by some
companies in order to capture this market segment. In over 20 million of
population in Sri Lanka 24.7% are between 0 to 14 of years age, which is
over 53 hundred thousand. Also 16.8% are between 0 to 10 years of age,
which is over 3650 000. First we have to define age limits of Kids, we can
concern 0 to 10 years of age group as kids, which is 16.8% of population in
Sri Lanka.
Market Segmentation
Market segmentation is a process of defining and sub dividing homogeneous
markets in to clearly identifiable segments that have similar needs, wants
and demand characteristics.
Market can be segmented by in four main ways.
1) Demographic segmentation
This consists of dividing the market into groups based on
variables such as age, gender, family size, income, occupation,
education, religion, race and nationality.
2) Psychographic segmentation This will mainly focus on the life style on the consumer and the
psychological variables such as self image and personality.
3) Geographic segmentation
[1]
Age
This is the main variable in demographic segmentation. Since it
is a kids toothpaste it clearly depends on age. As we mentioned
early kids age between 0 to 10 are of 16.8% in Sri Lankan
population.
Hence,this company can take this segment for their marketing
process by segmenting in age, The company needs to serve
them with various flavours toothpaste where kids are more like
of. Also, they can serve kids toothpaste which cause no harm
even if it is swallowed by kids.
Gender
[2]
Climate
Furthermore the people who live in cool climate regions such as
Nuwara Eliya have to lessen the mint flavour because it will
affect temperature of the toothpaste and give coldness in the
mouth. Therefore kids tooth paste which contains mint should be
reduce when we promote in cool climate regions.
Positioning
Positioning involves the formulation of a definitive marketing strategy around
which the product would be marketed to the target audience.
Positioning techniques
1. Undefferencited positioning
This is the delivery of single product to the entire market.
2. Differentiated positioning
This is the delivery of several products each aimed at a separate
market segment.
3. Concentrated positioning
[3]
2) Place
Place refers to locations where product can be purchased,
distribution channel, distribution coverage etc.
Sicnce kids toothpaste is a normal good which is used in daily life
routine, it could be arrange to afford at every possible places. Most
preferably at retail shops. Hence, the most suitable distribution
channel would be Two level channel or three level channel.
Two level channnel
Firm
Wholesaler
Retailer
Customer
Agent
Wholesaler
Retailer
3) Promotion
This represents all of the communication that a marketer may
use in the market place. New toothpaste for kids which the company is
going to launch may use promotinal activities such as,
Advertising
Non-personal presentation targeted at a specific market.
Examples:
Advertising about new toothpaste for kids on TV and
Radio. Sometimes company can use children
[5]
Sales promotions
Short term incentives to encourage sales.
Example:
Giveaways, offering the toothpaste for free in order
to capture them.
Promoting by displaying and through exhibitions.
Product sponsorship, sponsoring the kiddies
programmes on the name of new kids toothpaste.
Publicity & public relations
Non-personal stimulation of demand by significant news
items in the media.
Example:
Company open days, inviting large amount of
people for company open days and convey the
information of this new kids toothpaste to them.
Press releases, relesing information regarding the
launch of new kids toothpaste to the press.
Holding Workshops for parents about the
importants of the oral care of kids at nursery schools
and primary schools.
product packaging
packaging commmunicates abouts product.
Example:
labelling the new toothpaste in a way where kids
get attracted easily. it means there is a different
between adults toothpaste and the kids toothpaste.
In adults toothpaste there wont be eye catching
colours but in kids toothpaste.
Package design, designing the package to familiar
to children. Using cartoon designs etc.
4) Price
[6]
Cost-plus pricing
A profit margin or markup is added to the cost to arrive at
the price. Company would also consider this pricing
strategy in order arrive at the price.
Competitive pricing
Setting a price by references to the prices of competitive
product. This is also can be adopted for the new kids
toothpaste where price is set according to the competitive
product.
[7]