Manfest 2013 Marketing Moguls, Final Case Study

Product: Sensodyne Brief: Even though awareness level about sensitivity is high (85%) among the Target Audience, only 1 out of 6 consumer suffering from sensitivity does something about it. The following slides attempts to uncover the reasons for this and propose a strategy for solving this problem. Submitted by: Ankit Garg and Akshay Tandon IIM Kashipur 17 January 2013
Contact: ankitgarg.pgp2011@iimkashipur.ac.in, akshay.pgp2011@iimkashipur.ac.in Phone: +91 9045686446 +91 8650876898

Oral Healthcare Sector in India

Presence of huge untapped market in India allowing steady growth rate in oral care sector
Market Size of oral care market in India was ~Rs. 4400 Crores in 2010 The estimated size in 2012 is ~ Rs. 5800 Crores The Indian oral care market is projected to grow at a CAGR of around 14% during 2011-2015 Major sub-segments are: tooth paste, tooth powder, tooth brush, and mouth wash 55% of the Indian population uses toothpaste and only 15% of those users brush twice daily. In
contrast, 97% people use toothpastes and up to 87% of them brush twice daily in the developed markets Only 4% of Indians go for an annual dentist check

Overview

Segment Composition (2010)

Major Players

7% 18% 73% Toothpaste Toothbrush

2%

Source: http://www.business-standard.com/india/news/the-battle-for-niche-oral-care/483953/; http://www.consumercomplaints.in/news/glaxosmithkline-foraysinto-oral-care-segment-in-india.html; Indian Oral Care Market Forecast to 2015 report by RNCOS; http://www.forbes.com/sites/greatspeculations/2012/06/26/colgate-palmolives-indian-expansion-takes-advantage-of-pgs-pause/

Toothpaste Market in India

Sensitivity Category is the fastest growing segment within the toothpaste market in India
Market Size of toothpaste market in India is Rs. 3000 Crores Sensitivity segment constitutes ~8% of the toothpaste market; size: Rs. 240 Crores Growth rate of sensitivity segment has been ~100% in last 1.5 years Market Share of Sensodyne in sensitivity category is 25% The incidence of sensitivity in India is currently estimated at 27% 7 % of Indians believe in brushing twice a day compared to 61% in China Toothpaste consumption itself is also a minimal 92 grams in comparison to other Asian
counterparts like China which is 219 grams and Malaysia at 285 grams

Overview

Market Share

Major players in sensitivity segment

12% 14% 22% 52%

Colgate HUL Dabur

Others

Source: http://www.business-standard.com/india/news/the-battle-for-niche-oral-care/483953/; http://www.consumercomplaints.in/news/glaxosmithkline-foraysinto-oral-care-segment-in-india.html; Indian Oral Care Market Forecast to 2015 report by RNCOS; http://www.forbes.com/sites/greatspeculations/2012/06/26/colgate-palmolives-indian-expansion-takes-advantage-of-pgs-pause/

Obstacles and Challenges for Sensodyne

Changing the consumer mindset and differentiating the brand required a different approach
General Mindset: live with it rather than deal with it mindset Challenge: Shake the sufferer out of complacency towards the issue of sensitivity The sufferer had to be awaken to the issue first, for the brand to play any significant role
in his life

Mindset

Brand Differentiation

Indians are highly reverent of experts point of view Colgate had already taken the plank of expert recommendation How to create brand differentiation over Colgate sensitive basis expert
recommendation itself The genuineness of the brands vision and the authenticity of its dealings would be the biggest differentiating factor between itself and a giant like Colgate Have real, authentic dentists speak to consumers instead of actors as dentists

If Indians were reluctant to visit dentist themselves, Sensodyne decided to take the

Big Idea

dentist to them Shake him out of the complacency and bring the issue to him face-to-face in a simple, direct, effective and perhaps a clinical albeit boring manner Given the brand was premium, English channels such as Star World, Star movies, NGC were selected besides the GECs

Source: http://www.business-standard.com/india/news/the-battle-for-niche-oral-care/483953/; http://www.consumercomplaints.in/news/glaxosmithkline-forays-intooral-care-segment-in-india.html;

Road to Success
Sensodyne managed to sensitize the Indian consumer about Problem of sensitivity Solution to the problem in the form of using Sensodyne Sensodyne conduced its famous Chill Tests in various places across India Showcase the effectiveness and benefits of using Sensodyne Providing free samples

Created Awareness

Increased Visibility

Sensodyne managed to influence the various consumer touch points Invested Rs. 25 Crores in the promotion activities Visited 15000 dentists across India Frequent TV and radio ads depicting endorsements by NRI dentists Use of special display dispensers at retail points Branding Dentists clinic and nearby medical shops Use of glow boards outside dentists clinics
Ensuring availability by utilizing its extensive distribution network Leveraging GSKs distribution network for other OTC products such as
Horlicks Ensuring availability at medical shops as well as retail outlets Providing slightly higher margins and better schemes to the channel

Ensured Availability

Consumer Touch-points
Sensodyne contacted the consumer through various touchpoints, resulting in much higher awareness
Spots TV Product Placement POP Retail Experience In-store Merchandizing

Total Awareness Score

Sales promotion
Newspaper Print Magazine Sampling Guerilla Trial Consumer Involvement OOH Activations Road Shows Billboards

The total awareness score of Sensodyne is ~ at par

with the age old Colgate ~13% higher score than its closest competitor Colgate Sensitive This was despite Sensodyne spending being 1/4 of Colgate spends

Source: Ipsos ASI; Economic Times

Results and Achievements

Brand Extension Alternatives

Change in the one-toothpaste-one household mind-set of the value conscious Indian consumer Sensitive segment despite being 3.5 times more premium than an average toothpaste gained share from popular and
economy rather than premium segment.

The popular and economy segment declined by 4.4% while the premium segment remained unchanged

Market Share in key trade channels

12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Colgate Sensitive Sensodyne 2.5 2 Modern Trade 1.5 1 0.5 0 2.08

Market Share
2.08

Pharmacies

Sensodyne

Colgate Sensitive

Source: AC Nielson; Economic Times, Nov12

Sensodyne managed to reach at par with Colgate Sensitive within 2 years

Scope and Methodology

Scope

To convert the aware non-trialists into trialists of Sensodyne To devise a more persuasive value proposition for Sensodyne To reach the Target Group through more relevant touch points To devise marketing strategy to achieve the above stated objectives

Secondary Research
Objective To gain basic
understanding of the industry and market dynamics Newspaper Articles

Focused Group Discussion

Objective To understand what
is stopping the Target Group from purchasing Sensodyne

Focused Interviews
Objective Understand how
dental college students could help in promoting Sensodyne

Consumer Survey
Objective Understand
perception of nontrialists about Sensodyne Understanding factors effecting purchase intentions An online survey with 33 relevant respondents was conducted Contrast based on perception of Sensodyne and the factors effecting purchase was obtained

Oral Care Market in

India Product launches in the sensitivity segment Published Reports on oral care market in India Social media channels of Sensodyne and Colgate Sensitive

Conducted two focused

group discussions with 9 and 11 participants respectively Useful Insights about the probable factors responsible for disinclination towards purchasing Sensodyne

7 students were
interviewed in Delhi and Pune colleges Dental students perceive little differentiation between Sensodyne and Colgate Sensitive Colgate being a major sponsor of their activities lead to a brand preference

Consumer Insights
Overview
An online survey was conducted, which was taken by 69 respondents 37 out of 69 respondents were aware about Sensodyne but were non-trialists The survey measured user perception of different attributes associated with major
sensitivity care toothpastes in India

Factors influencing purchase intention of sensitivity care toothpaste were also recorded
Perceptual Map Decision Matrix
Decision Matrix (Index 0-1, 0 being least important and 1 being highly important) Decision Criteria Price Brand Familiarity Doctor's Advice Chemist's Advice Peer Advice Packaging Offers/Discount Advertisement Mall Displays Print Ads Free Samples Teeth Protection Freshness Index Values

Colgate Sensitive

Taste

Pain Relief Medicinal Properties Future Protection Sensodyne

Value for Money

Pepsodent Expert Protection

Dimension I (96.5%) Sensodyne is more closely associated with attributes Pain Relief, Medicinal property and future protection

0.65 0.63 0.54 0.35 0.63 0.42 0.40 0.57 0.67 0.46 0.63 0.73 0.69

Dimension II (3.5%)

Teeth protection, freshness and Price are most important purchase decision criteria

Mission Possible
1 Social Media

Comparative Analysis of social

6 Challenge Mainstream

From Niche to Mainstream Increasing size of pie Cosmetic vs. Real Benefits

media presence was done for Sensodyne and Colgate sensitive Facebook Twitter Others

Surrogate Endorsers

Targeting Dental College Students Calculating potential reach Targeting Gynecologists and
Obstetricians

Calculating potential reach

Multi Pronged Strategy

Cost-Benefit Analysis of Sensodyne Is Sensodyne really costly? Leveraging insights derived from
Focused Group Discussions

Modern Trade - Key Channel Product placement in modern Bundling Sensodyne with existing
GSK products Horlicks to reach potential target segment and induce trial Leveraging existing distribution channel
4 Bundling and Sampling

trade to trigger purchase

Redefining Value Proposition

Beer & Diaper Strategy

Comparative Analysis of Social Media Presence

Colgate Sensitive outscores Sensodyne in terms of presence on social media, particularly on Facebook

Sensodyne
A dismal 18 likes on Sensodyne India page Zero content on the page DEAD Page Zero updates Zero interaction with consumers Facebook India has ~63 million active Facebook
users till Dec12

Colgate Sensitive
~55,000 likes on Colgate Sensitive India page Well maintained page Daily updates Recipes for food Testimonials by users Enticing food images with Tastes best
without sensitivity captions

Facebook

A platform which cannot be ignored

No twitter handle of Sensodyne India Twitter handle of Sensodyne Australia with 49
tweets and 39 followers

Twitter

No twitter handle for Colgate Sensitive Twitter handle of Colgate Max Fresh with 435
tweets and 290 followers

No recent updates since 2011 No India centric website of Sensodyne Zero presence on Google plus Limited online Ads

Twitter handle of Colgate Plax with 238 followers India centric website of Colgate sensitive Zero presence on Google plus Limited online Ads

Others

Source: https://twitter.com/ColgatePlaxIn; https://twitter.com/MaxFreshIndia; https://twitter.com/SensodyneAU; https://www.facebook.com/ColgateSensitiveIndia; http://www.facebook.com/pages/Sensodyne-India/413409875364893; http://www.firstpost.com/tech/did-facebook-lose-users-in-uk-for-dec-2012-not-really588838.html; http://www.colgatesensitive.co.in/home

Proposed Social Media Strategy (1/2)

Facebook
Objective: Increase customer involvement Proxy Metric: Increase number of likes /traffic at par with Colgate Sensitive WIIFM Whats in it for Me? (Customer Perspective) Do not focus only on Sensodyne Ads Create a Ask the Dentist thread where customers can seek advice and address their queries Create a Feedback thread to keep a tab on what consumers feel about the offering Create a Do you know? thread with interesting facts about oral care and Sensodyne Involve the customer with interesting games on oral care and sensitivity Create weekly/monthly High Score contests Activation through Chill Tests similar to what is present on website Increase involvement through online contests Testimonial based contest : Your Story, Your Words How Sensodyne helped you to enjoy delicacies of the world Winner gets featured on Ads

Sensodyne works for me and my family Mrs. Anita Sharma

Source: http://www.facebook.com/SensodyneMe; http://www.sensodyne.com.au/chilltest.aspx;

Proposed Social Media Strategy (2/2)

Sensodyne Website
Create a dedicated website of Sensodyne India Act as a medium of awareness First point of contact for someone searching about tooth sensitivity A How Sensodyne works? section Online Chill Tests Community or Forum for people to discuss about their queries as well as experiences Community or Forum for dentists to exchange ideas and views related to oral care A store locator section with detailed address and contact of nearest shop India centric twitter handle of Sensodyne Celebrity Tweets about oral care Tip of the day tweet Google Plus Community similar to Facebook Attractive online Ads Using Google Ads and linking it to sensitivity search keywords

Twitter

Others

Search keywords Sensitive Teeth give links to Colgate and Pepsodent

Source: http://www.business-standard.com/india/news/the-battle-for-niche-oral-care/483953/; http://www.consumercomplaints.in/news/glaxosmithkline-forays-intooral-care-segment-in-india.html;

Partner with Gaming sites

Increasing customer involvement and communicating benefits will lead to higher purchase intentions
Objective of Partnership: Involve the prospective and existing consumers Pass on the message subtly to the consumers How Sensodyne helps in treating sensitivity? Sensodyne facts Show tips by dentists Create interest by launching high score competitions via social networking sites Creating a mobile app for the game

Key Points

Dodge the Dentist OR Sensodyne Gun vs. Sensitivity

Sensodyne v/s Sensitivity Sensodyne toothpaste as a gun

Dental tip/ Sensodyne Facts/

Benefits of Sensodyne after each level

An attractive user interface Involving game

Source: http://www.mydoctorgames.com/toothpaste-vs-bacteria/; http://www.lookingfordental.com/games.php

Targeting Dental College Students

Dental Colleges in India
~135 dental colleges in India ~80 colleges in Tier 1 and Tier 2 cities ~1.3 lakh students in these colleges enrolled for different courses (e.g. BDS, MDS) ~ 75K dental students in Tier 1 and Tier 2 cities

Engage these 75 K dental students (across all years) Sponsor dental conferences , events, and festivals Offering corporate scholarships to meritorious students Experiential marketing campaigns in the form of contests and campus

Campaign

ambassadors programs Create a strong set of surrogate endorsers as well as influencers with direct impact on family on friends Ensure Classical conditioning in terms of product usage Could lead to positive purchase intention for upto 60% of the audience covered

Catching the future dentists early leading to both short term and long term benefits
Source: Zhu, Zhang, Doyeon Won, and Donna L. Pastore. "The Effects of Attitudes Toward Commercialization on College Students' Purchasing Intentions of Sponsors' Products." Sport Marketing Quarterly 14, no. 3 (September 2005): 177-187. Business Source Complete, EBSCOhost (accessed January 16, 2013).

Targeting Obstetricians and Gynaecologists

Women during pregnancy and immediately after giving birth goes through various

Why this segment?

hormonal changes Weakening of gums and teeth is one effect High probability of feeling sensitivity Within the TG, such women have access to medical facilities Follow doctors advice and prescriptions

Particulars Number of Obstetricians and Gynaecologists in India Number of Child births per year (in Mn) Number of Mothers (in Mn) Number of Mothers in TG (in Mn) Assuming 50% Gynaecologists recommend Sensodyne. This will translate to reaching 50% Mothers in TG (in Mn) Assuming 90% of these women buys Sensodyne (in Mn)

Value 23500 25 17.5 1.75

Estimated Reach

0.875
0.7875

Approximately 7-8 lakh women in the target audience can be induced to try Sensodyne through this approach
Source: http://www.indexmundi.com/g/g.aspx?v=21&c=in&l=en; http://www.jogi.co.in/aboutus.aspx; Interviews with doctors

Product Placement in Modern Trade

Context
~85% of target audience aware about the sensitivity concept 27% of total population suffer from sensitivity problem Still, only one out of six does something about it
What is Missing?

TRIGGER

Product Placement

Placing Sensodyne adjacent to cold item such as Colas A hypothetical placement shown above Immediate trigger in consumers mind and realization of need Model can be replicated in FMCG stores/ departmental stores
Source: Insight derived from Beer and Diaper case study

Product Bundling
Sub Target Segment
Indian Mother (Premium Segment) / Female head of family Acts as Decider and/or Influencer

Leveraging Existing Touch-Point

Over 50% market share in Health Food Drink market in India High reach among target audience Special variants for women Women Horlicks
Bundling Opportunity

Horlicks

Objective: Induce Trial Bundle smallest SKU of Sensodyne (40gm) with

Horlicks (500 gm. Pet) Add breakeven cost of Sensodyne to the price of Horlicks Free sample with largest SKU of women Horlicks to induce trial among women Hitting nail on the head Brand Managers of Horlicks and Sensodyne can sit together and chart out detailed plans

1 2

Source: Insight derived from Focused Group Discussion; AC Nielson Report; GSK India website;

Reinventing Value Proposition Cost Benefit Analysis

F.G.D Insights
Price of
toothpaste a major deterrent in purchase decision Pricing at 3 times the regular toothpaste Chalta Hai attitude among non users of target audience Inertia driven purchase

Is Sensodyne really costly?

Sensodyne
Average Price of 80 gm.
Sensodyne Tube: Rs. 85 Requirement: 1 per month Total Annual Cost: ~Rs. 1000
How to break this inertia?

Sensitivity Treatment
Cost estimates based on
discussion with Dentists Approximate Annual Average Cost: ~ Rs. 1500
Head Consultation Fee for 2 visits Medicine Covering/Layering for 3 teeth RCT for 3 teeth Total Cost Cost
400 200 1800 4500 1510 0.6 0.3 0.1

Weight

Conclusion
Sensodyne

Sensitivity Treatment on an
average costs ~50% higher than using Sensodyne Not to forget the pain and agony The choice is yours!!!

Sensitivity Treatment
Source: Insight derived from Focused Group Discussion; Primary Research; Interviews with Dentists

Increasing Size of Pie

Overview
Market size of sensitivity segment is Rs. 240 Crores For Sensodyne to move from a Niche Category to Mainstream category Capture market share of segments other than sensitivity Value proposition of Sensodyne is based on Real Benefits (for Sensitive Teeth) Other segments such as gel have a market size of Rs. 900 Crores which focuses on Hedonic Benefits,
primarily freshness Options: Ambush Marketing, highlighting Cosmetic vs. Real Benefits

Storyboard
Hey babe!!! Lets go out this evening
At 5

Ya fine!!! See u at 5!

No thanks!!! My teeth pain when I consume something cold!!!

Hey would you like to have some cold drink

A common problem! I advise you to use Sensodyne regularly!

Cool!! That means freedom from the fear of pain!!! Thanks Doc!!!!!

Wow!!That certainly sounds like a date to me!!!

And you still using Close-Up??? Havent you heard bout Sensodyne??? Lets go to your dentist now!!!

A typical gel user has to refuse a cold drink offered by his girlfriend due to sensitivity. His girl friend scolds him and tells him to switch to Sensodyne, which the boy later confirms with the dentist and his decision is reinforced
Source: http://www.business-standard.com/india/news/closesmile-gets-wider/443963/;

Brand Extension Opportunities

Brand Extension Alternatives
Percentage of Respondents

An online survey was conducted, which was taken

by 91 respondents 44 out of 91 respondents have used a sensitivity care toothpaste

51%

51% of the respondents indicated trial intentions

30% 19%

for Sensodyne mouthwash A very interesting observation was the trail intention for Sensodyne Dental Chewing Gum New Avenue for brand extension 19% indicated trial intention for Sensodyne toothbrush GSK has already launched it

Sensodyne Mouthwash

Sensodyne Dental Chewing Gum

Sensodyne Toothbrush

New Segment - Tweens

Who is a tween? The 8-to-12-year-old, who is still a child, and not yet a teenager, but with awareness now about many adult issues, and
aspiring to a teenager lifestyle Playing a major role in making brand purchase decisions for the household, in product categories that are not childrens products by any stretch of the imagination 130 million tweens in India offering a market size of Rs. 20,000 Crores in 2006

With the fast changing lifestyle of the urban tweens in terms of eating habits, tremendous potential for a product variant targeting
this segment
Source: Consumer Survey; http://www.financialexpress.com/news/the-tween-advantage/200832; Marketing Management by Ramaswamy

Team Profile
Ankit is a second year student of management at Indian Institute of Management (IIM Kashipur), with a keen interest in marketing. Prior to joining IIM Kashipur, Ankit has worked for ~1.5 years in the market research industry in Grail Research, Monitor Group. During his stint at Grail Research, Ankit worked across various sections of the organization such as marketing, Quantitative research team and CPG group. At IIM Kashipur, Ankit is currently IR 1 with a CGPA of 8.16 and he is majoring in marketing. He was also the winner of most creative team name at Mahindra War Room12. Ankit did his summer internship at BenQ India Pvt. Ltd. where he cracked 2 sales deals worth Rs. 1 lakh in a span of 6 weeks and received letter of recommendation from the country head of BenQ India. Ankit is a certified six sigma green belt professional and is an avid listener of contemporary Bollywood music. Akshay is a second year student of management at Indian Institute of Management (IIM Kashipur), with a keen interest in marketing and finance. Prior to joining IIM Kashipur, Akshay has worked for 8 months as a faculty at IMS and as a systems engineer at Infosys. At IIM Kashipur, Akshay is one of the placement coordinator and has been active in organizing events in college such as Manthan12. He is representing IIM Kashipur at the flagship event of IIM Calcutta Olympus. Akshay did his summer internship at Teach for India, where he helped in streamlining the processes. Akshay is a certified six sigma green belt professional.