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Prepared For.

Suman Saha

Lecturer

Independent UniversityBangladesh

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Market Analysis of

..

PEPSOD

ENT

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We are:- Group

Group No. 06

1 1120016 Zumrat Hossain

2 1120144 Shah Paran MohammadZiaul Hoque Bhuiyan

3 1120643 Lotfunnaher Mily

4 1120703 Saima Khanom Chaina

5 1120126 Faria Hossain

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Now Presented by.

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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 (withPepsodent of course) .Research shows that brushing teeth at night

can reduce chances of tooth decay by 30%.

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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 strongand 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.

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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 Size Price

PEPSODENT GERMI Check 200 GM. BD 56.00

PEPSODENT GERMI Check 100 GM BD 33.00

PEPSODENT GERMI Check 45 GM BD 13.00

PEPSODENT HARBAL 200 GM BD 60.00

PEPSODENT HARBAL 100 GM BD 35.00

PEPSODENT WHITENING. 200 GM BD 60.00

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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 soon. 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.

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Now Presented by.

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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.

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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 wanein sales.

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Opportunity:

Innovative marketing like Pepsodent packs included a GermIndicator 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 andschools.

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.

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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.

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Now Presented by.

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Marketing Strategy:

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.

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.

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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.

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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 .

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Distribution strategy:

Transportation:

Truck

Rail

Water

Air

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Now Presented by.

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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 teeth-

whitening ingredients. There are nice advertisements of Pepsodent

that are shown in TV channel which helps people to choicePepsodent 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.

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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 growhigher.

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.

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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 aboutmarket 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 orfurther developed products.

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Now Presented by.

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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 croretaka (including salaries, advertising, insurance, other expenses,

etc.) for a single month.

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Therefore,

Selling price = 56.00 BDT.

Variable cost = 34.75 BDT per unit.

Fixed cost = 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.

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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.

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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.

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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 cansay, 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.

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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 withthe 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.

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for being with us..