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Title :

A company proposes to launch a new toothpaste for kids


in the Sri Lanka. Forcast the size of the market segment
and develop positioning statement for this new
toothpaste. How would you promote? You 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 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
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It is a segmentation strategy where by the intended audience for


a given product is divided according to geographic units such as
regions, countries, cities and climate.

4) Benefits segmentation Method of determining a target audience for a particular product


in terms of those people who wants the benefits the product offers.
There are different audience for different perceived benefits.
Kotler has suggested market sements must be,
Measurable It must be possible to identify the number of buyers in
each market
segment so that the potential profitability can
be assessed.
Accessible It must be posible for organization to reach the segment.
Substantial The cost of reaching the particular segment must be less
than the benefit.

Segmentation of new toothpaste for kids


Market segments can be done in many ways for this new toothpaste for kids
which is to be launched.
1) Demographic segmentation

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
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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 defined 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 for girls and some other colours for boys where in
Sri lanka 53% of kids are female. Therfore they can easily target
the particular market segment.
2) Geographic segmentation
Region
Region is an important variable in this segmentaton method. In
Sri Lanka, we can vary the kids toothpaste from province to
province. Since North Central province of Sri Lanka is known to
have more calcium in the waters, we can promote kids tooth
paste which contains low calcium to this region.
At the same time we can market our kids toothpaste for rural
areas, we can promote it by making in sachet packets which
would be more cheaper for the peaple of rural areas.

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
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This is the delivary of a single product to a particular market


segment.
As far as the launch of the new toothpaste for kids is concerned the most
suitable positioning technique would be differentiated positioning or
concentrated positioning. Because if the company promotes kids toothpaste
for girls and boys seperately and defferent toothpaste for kids in cool climate
region and dry climate region seperately then that would be considered as
defferentiated positioning.
If the company promotes only the new kids toothpaste targeting kids market
which is 16.8% of population in Sri Lanka then that would be considered as
concentrated positioning.

Marketing mix for kids toothpaste


Marketing mix is a set of controllable variables that the firm uses to influence
the target market.
Basic marketing mix is referred as Four Ps
1) Product
This refers to the product which is to be marketed. In this
scenario the product would be new toothpaste. When developing this
kids toothpaste, the company should consider these two things,
System to monitor customer perception of this product.
Product quality must meet the fitness for purpose.
Also product embraces features, quality, durability, design,
brandname, logo, packaging, after sales service etc. since this is a
toothpaste for kids company should consider on designing that in a
way where kids would get attracted easily. For the best output the
company have to look competitors product. In Sri Lanka, there are
several kids toothpaste in the market. Such as Kodomo, Colgate and
Signal junior. So to capture the kids market the company should
include the features of those toothpaste which are already in the
market. If not the new toothpaste will be rejected by the target group
as they are adopted to it. For example, Kodomo a kids toothpaste in
the market has a feature that can be swollowed and it will make no
harm. So this company cannot omit that feature in there product since
that is the most secured way to have a toothpaste for kids. At the same
time toothpaste can be produced in various flavours since it is a kids
toothpaste where kids are more fond of flavours.
Brandname
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Brand is a unique design, symbol, words or combination of these


employed in creating an image that identifies a product and
differentiates it from its competitors.
As far as brandname of this new toothpaste is considered it should be
named and designed in a way where kids would have fonded of it. For
example, when we take Kodomo kids thoothpaste (commpetitive
product in the market), since it is a japanese product, the name
Kodomo is the japanese word for child. Similarly this company would
also name their toothpaste with familiar and easily understandable
one. This would help the company to gain the market share.

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

Three level channel


Firm
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
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celebrities for advertisement. Also it is better to


advetise at the time when children do watch the TV.
Setting up Billboards and posters on new kids
toothpaste. Setting up posters at kids medical
centres and child care centers.
Online and social media advertisement. Even
though kids are not in the social media platforms,
most of the parents aged 25 to 50 are in social
media network. Advertising on sociall media will
influence them to buy this toothpaste for their kids.

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
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The price is the amount a customer pays for this toothpaste.


Pricing includes basic price levels, discounts and allowances, payment
terms, credit policy etc. the company which is to launch a new
toothoaste for kids may consider these approaches to pricing.
Penetration pricing
A 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 for their new kids
toothpaste. Since they are newly going to enter to the
market setting lower price innitially would benefit them.

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.

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