Marketing mix for Signal Toothpaste
Theme
Select Signal tooth paste as a product and develop marketing mix, strategies for the product.
Introduction
The toothpaste market is a mature market, averaging only about 2 percent growth each year. Therefore, any growth a brand will experience comes at the expense of another brand. Today’s consumers demand numerous benefits from their toothpastes, and manufacturers like Uniliver, P&G and Colgate are responding accordingly.
Through this report we develop marketing mix and strategies for Signal tooth paste. Marketing mix of “Signal tooth paste” is analyzed as a requirement of the assignment. The major marketing management decisions can be classified in one of the following four categories:
- Product
- Price
- Place
- Promotion
These variables are known as the marketing mix or the 4 P's of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market.
Unilever Ltd has developed its own strategic “marketing mix” to retain the consumer satisfaction for their products in different market segments. It shows that the strategies are successful and they have acquired considerable market share in the whole world. The Unilever Ltd used to apply company owned secret 4 P’s model. Through this report we explain 4P’s that can be used for develop Signal tooth paste market.
Company Overview
160 million times a day, someone somewhere chooses a Unilever product. Today it is home to 29 strong brands that are leaders in the categories that they operate in. With the local consumer being at the heart of business they have products ideally suited to the Sri Lankan consumer.
Type of business
Fast moving consumer goods company with local manufacturing facilities, reporting to the regional business groups for innovation and business results.
Operations
Home Care, Personal Care and Foods
Product categories
Household care, fabric cleaning, skin cleansing, skin care, oral care, hair care, tea, spreads, toilet cleaning, personal grooming, water
Brands
Astra, Axe, Bru, Ceylonta, Clear, Close Up, Comfort, Domex, Dove, Fair & Lovely, Flora, Knorr, Laojee, Lipton, Lifebuoy, Lux, Marmite, Pears, Ponds, Pureit, Rexona, Rin, Signal, Sunsilk, Sunlight, Surf Excel, Vaseline, Vim and Wonderlight
Unilever Product – Mix vs. Product Line
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| Unilever Product Mix Vs Product Line |
Product Overview
Toothpaste works with tooth brushing to clean teeth and fight plaque and bacteria specifically:
- Toothpaste contains abrasive materials that physically scrub away plaque. In addition, toothpaste abrasives help remove food stains from teeth and polish tooth surfaces.
- Toothpaste delivers fluoride to the teeth. Fluoride incorporates itself into tooth enamel weakened by acid attack, making it more resistant to future acid attack from plaque bacteria and food.
- Technological improvements in some toothpaste contain ingredients that chemically hinder the growth of plaque.
Signal’s brands consists of a multitude of unique toothpastes lines, specializing in the preservation and treatment of oral hygiene.
Product Analysis
- Signal Strong Teeth
- Signal Whitening
- Signal Herbal
Signal Strong Teeth: It cleans, strengthens, and protects teeth and breath. Signal’s Original pro fluoride complex uses to keep teethand gums healthy and it prevents teeth from cavity.
Signal Whitening: Signal Whitening remove tooth stain and helps to prevent new stains from forming. And also fight cavities and kill germs that cause bad breath. Whitening works to gently remove surface stains to reveal the natural whiteness of teeth.
Signal Herbal: Signal herbal tooth paste helps to prevent plaque, which must be monitored in order to make sure problems like gum diseases do not arise. The natural taste of the tooth paste leaves teeth refreshed and clean after brushing.
Customer Value Hi- erarchy
- Core benefit - The service or benefit that the customer really buying / oral health
- Basic product - The basic product that gives the fundamental service to the customer-paste that can be used with tooth brush
- Expected product - A set of attributes and conditions – freshness, good smell
- Augmented product - some additional services and benefits
- Potential Product - possible evolution of the product in the future
Product Strategy
The Company has introduced a wide range of Signal Tooth paste for domestic customers in Sri Lankan, and also 170 countries among the world. By producing Tooth paste of Signal, Company has analysis of customer preference, willingness to buy, purchasing power etc. and also to enhance customer satisfaction company practices its own closed strategy for maximize customer satisfaction. By considering of said facts we can see company has introduces limited number of variations to signal product to focus target market. Product differentiation and bellow mention factors are applied to meet customer satisfaction, Product features, durability, reliability, verity, Size, packaging and design, Service.
Product features
Stylish, enchanted and smooth out appliances of signal tooth paste can be seen at the market and also fascinating color, shape, size, taste etc.
Product performances
The brand and Signal tooth paste could embrace the customer mind and also fragrance, taste and whitening to teeth, are highly appreciated by customer because of higher product performance.
Product Durability/reliability
The brand Signal has achieved highly appreciation by the customers from longer period of time. Its durability comes from practically usage of customers that mean customers are trust about the product because of highly performance.
Product variety
The company has introduce 3 types (example) of product to different market segments to satisfy customer and for creating customer needs, with different types of taste, color, consist, introduced Signal tooth paste are :
- Signal Strong Teeth
- Signal Whitening
- Signal Herbal
Product Size
As per product verity signal tooth paste could closer to customer and has win customer satisfaction. Introducing different sizes of product, company could achieve the customer purchasing power. Different types of sizes will facilitate every willing buyer to buy signal tooth paste.
Those sizes are Small, Medium, and Large and Excel. As per sizes are smaller prices also cheaper.
Packaging and Design
Packaging and design must be fascinating to customer price. Where ever the products are displayed customer could identified. This quality can be seen at the signal product. Two types of packaging systems used by company to signal product they are Tubes and packets. Design is very much soft and smooth Signal Tubes and Signal Sachet are the designing of the signal product.
Product Services
The Signal tooth paste marketing chain has not only been differentiated its product lines. The Company provided better customer care service for ordering, delivery etc.
Price Strategy
The product price is the key factor of determining the value of the product and the income of the Company. It determines the sole destitute of the product line and it is a very important step in the marketing mix.
Careful consideration is therefore given for the pricing of Signal Tooth paste. The Signal Tooth paste product line is widely differentiated and different products are given different prices. It is also the basic requirement of the company, revenue of the company that determine the Company destitute whether the determined price is at least above the unit average cost. And also when pricing of the product, prices of similar products also must considered. Product pricing is important to achieve the following Company objectives and goals.
- Maintain maximum market share
- Maximum current profit
- Survival in the market
- Maintain market leadership
Price Differentiation
The Signal Tooth paste product line is widely differentiated to maximize the market share targeting several market segments. The prices are differentiated accordingly. Variety and size of signal Tooth paste mix is also differentiated to provide wide range of prices. And also Signal products are appearing in over 170 countries in whole world. Any country that signal products are been sold method of pricing is cost plus pricing. Geographically we can’t see price differentiation.
Price Discounts
The Signal Tooth paste prices are not discounted particularly to attract consumers, they stand with higher prices comparatively with competitors, used highly demanded brand name as a counter action to deal with the competitors. Other than that at the whole sale, seasonal and trade promotions we can see pricing is very much low irrespective of the demand and supply. The bulk purchases include discounts and price allowances to intermediates.
Easy Payment Schemes
There are facilities available for easy payment schemes to delivery agent that differ agent to agent. Easy payment systems are not needed to consumers.
List price and Marketing price
Every product has list and marketing price for sale. At the whole sale, sale price is law then the list price but at the retail consumer must pay full amount of list price if sales promotions or quantity discount are not available.
Selecting the Final Price
- Requires consideration of additional factors.
- Psychological Pricing.
- Gain and risk sharing pricing.
- Influence of other marketing mix variables.
- Company pricing policies.
- Impact of price on other parties.
Place Strategy
Our customers will expect to find Signal tooth paste:
- Available when and where they need them
- In quantities that suit them
- In surroundings that enable them to make a good choice between products
And also think of new strategies for distributing Signal tooth paste among customers. We considered the following options:
- Dealing directly with our customers – retailing, selling through the internet, mail order
- Using a specialist intermediary - agent, specialist outlet, catalogue company, retailer
- Use a wholesaler - reduce administration
When we are choosing remember to consider the following:
- Our customers
- Our product characteristics
- The nature of the distributor
- Our competitors
- Our company size
- The environment in which we are operating
Signal’s product distribution is immense. Signal tooth paste is physically located in the oral health isle of stores. The product is sold in retail outlets like supermarkets, medical shops, co-operative stores etc. It is distributed through the supply chain of company distributor to wholesaler to retailer to final consumers.
- Whole sale
- Retail sales
- Authorized Dealers
Food Stores/Super Markets
Food Stores are an important channel for distribution. Family members come altogether for monthly or weekly purchases, which involves children and parents both as choice makers/family influencers.
The amount of shelf space for our product will be from where it can be easily seen by everyone.
Drug Stores
Drugstores have increased the amount of shelf space for toothpaste. Our distribution will also focus on medical stores where supply of our product would highlight the main unique selling preposition that is the enamel care, the protection coat for teeth.
Coverage
Global
o Available worldwide in over 48 countries.
Island wide
o Signal is easily available at every retail store and super store.
o The product is available in the all-Sri Lanka market, including semi-urban and rural markets which are their primary focus.
Certain area
Location
The product is placed at just below eye-level at the store surveyed among other brand clutter, unlike at most other supermarkets, where product placement at eye level and near the payment counter is generally preferred for such relatively low-involvement products, especially in the case of small packs which might be impulse purchases on a trial basis.
Promotion Strategy
No matter how wonderful our product, no matter how unique our product, the world is unlikely to beat a path to door unprompted. We need to carry out promotional activity to attract the right sort of business, in the right quantity, at the right time and to distinguish from the competition.
Promotion is not just about advertising our business, nor is it just about selling. It's about pulling together a range of techniques, in the most cost-effective way we can, to initiate, increase and maintain awareness of what we offer to our customers. We need to move our customers from total lack of awareness through to the point at which they actually buy and buy again.
Toothpaste promotion is cutthroat. Products are frequently on sale, which appeals to price buyers and potential brand switchers. This may also cost the company profits due to regular users taking advantage of the discounted price.
We may also wish to use the planning process as the opportunity to carry out additional market research into customer's needs, perceptions in the marketplace and how could improve your product/service.
The components that make up the Promotion element of the Marketing Mix are known as the 'Promotional Mix'. For example we can consider - Public Relations, Advertising, Direct marketing and etc. In addition, as Direct Marketing increases in importance it is often referred to as another component of the mix, although technically is part of Advertising.
Public Relations Strategy
Good PR will generate understanding and positive interest in Signal tooth paste product. It will whet potential customers' appetite for more information, prompt enquiries, re-establish dormant contracts and reinforces your image with existing customers.
PR is a long-term process, to do with developing an image and a reputation with your customers and the market as a whole. Often this image is created by cumulative effect, based on the quality of Signal tooth paste and the willingness of customers to broadcast their good experiences. We can however devise strategies to focus our approach, aimed at enhancing our reputation with people whose opinion value.
First we need to set objectives for PR so that we have a clear idea what communications message we want to send out. PR activities should then aim to reinforce those messages in the mind of the public.
Publicity is the part of PR which involves capitalizing on 'newsworthy' events or opportunities - using the press to sending a positive message to marketplace. This is a more tactical activity and a publicity plan should be included in our plans.
We also invest resources in encouraging the young to look after their oral health. This includes a new range, Signal experience, designed to meet the needs of the young, plus initiatives to promote higher standards of oral hygiene, usually in association with dentists and other oral healthcare experts. In Italy, for example, Signal sponsors oral care education for children and free dental check-ups as part of Dental Prevention Month.
Signal also plays a major role in promoting early brushing in many developing countries through its schools programme. At the same time, the brand has developed strong relationships with local governments, as well as dentists associations. The scheme forms part of Live. Learn. Laugh, Unilever’s global partnership with the World Dental Federation (FDI), which aims to improve oral health all over the world through practical, sustainable community programmes.
Advertising Strategy
Advertising is an almost universal tool. We can use it to gain our customers' attention, attract customers' interest, create desire for our product and service and then prompt them to buy.
Advertising is defined by the American Marketing Association as:- 'Any paid form of non-personal presentation and promotion of ideas, goods or services by an identifiable sponsor'. Some people believe direct mail is classed as an advertising activity.
There are many ways we can advertise our product, Signal tooth paste, and the opportunities are growing. Advertisements can be placed in local and national press, in magazines, and on the internet. And also create ads for poster sites, outdoor visibility, in store visibility, radio, and TV. Advertising can be as simple as dropping leaflets through doors, or placing posters in shop windows. We also use direct mail to carry out a mail shot to potential customers or existing customers or lapsed customers.
To create our own strategy to develop Signal tooth paste promotion we need to have a clear understanding of:
- The message we want to send - this should be simple and consistent throughout our activities.
- The target audience that we want to reach
TV commercal advertising is good for targeting young people; trade magazines are good for targeting specific industries, whilst leisure and lifestyle titles could be used to target particular age groups.
Direct Marketing Strategy
The US Direct Marketing Association defines direct marketing as 'An interactive system of marketing which uses one or more advertising media to effect a measurable response/and or transaction at any location.
Effectively to be classed as direct marketing activity must involve response, it is often two way communication, developing a relationship between supplier and customer. Response is carefully measured in an attempt to take the waste out of marketing and should be part of our long-term strategy. Direct mail is the type of direct marketing activity carried out most commonly.
Sales Promotion Strategy
Although often considered as a tactical activity sales promotion is an essential part of the marketing mix. It has been said that sales promotion can be used to persuade people to take a course of action, which without that persuasion, they would not normally take.
The Institute of Sales Promotion defines sales promotion as 'a range of tactical marketing techniques, designed within a strategic marketing framework, to add value to a product or service, in order to achieve a specific sales and marketing objective.'
Sales promotion strategy could be developed to support the following activities:
- Attract new customers - by encouraging stocking or trial
- Maintain competitiveness - by providing discounts or special pricing
Increase the amount people use Signal tooth paste.
Promotions could include free samples, coupons, competitions, temporary price reductions; buy three get one free offer or free gifts.
Conclusion
Through this report we develop marketing mix and strategies for Signal tooth paste. Marketing mix of “Signal tooth paste” is analyzed as a requirement of the assignment.
Unilever Ltd has developed its own strategic “marketing mix” to retain the consumer satisfaction for their products in different market segments. It shows that the strategies are successful and they have acquired considerable market share in the whole world. The Unilever Ltd used to apply company owned secret 4 P’s model. Through this report we explain 4P’s that can be used for develop Signal tooth paste market.
References
Marketing management Philip Kotler 13th edition
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