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F E AT U R E D I N S I G H T S

DELIVERING CONSUMER CL ARIT Y

S AY I T W I T H A
SMILE
WHAT IT TAKES TO SUCCEED IN THE GLOBAL
ORAL HYGIENE MARKET

Study conducted on 191 innovations spanning price


points in 20 developing and developed countries to
draw up a blueprint for success in oral hygiene.
Results show that the overall base success rate for
toothpaste concepts globally is 50%.
Propositions addressing mothers, highlighting essential
benefits, demonstrating strong reason to believe and
showing family and product visuals yield the highest
potential success rates.

FACTS TO CHEW ON
Oral hygiene, which primarily comprises toothpastes, toothbrushes
and mouthwashes, is one of the categories with the highest reach in the
personal care sector. And within oral hygiene, the toothpaste category
is the largest and fastest growing, with a share of more than 55% of
consumers around the world. Compared to the global oral hygiene
market, which is expected to grow at 3% compounded annual growth
rate (CAGR) in the next three to four years, Indias market is expected
to grow at 14% CAGR. This represents a huge opportunity for players
in Indias toothpaste segment, which accounts for over 70% of the oral
hygiene category.
Trying to capitalise on this lucrative market, brands launch and test a
large number of new and innovative concepts every year. However, the
global overall base success rate* for toothpastes is just 50%.

* Based on Nielsen Innovation Practice (formerly BASES) database of Factors for Success. In this context, success is
defined as any new launch which has a growing or stable distribution for two consecutive years from the date of product
launch.

Copyright 2014 The Nielsen Company

To help companies better understand the oral hygiene market globally,


Nielsens Innovation Practice compiled a list of 191 new toothpaste
concepts tested globally between July 2010 and June 2013 across 20
markets and spanning a wide price range. The study was carried out to
identify and highlight communication elements that occur more often
among successful innovations.

MARKETS
(Total 191 concepts)

PRICING
(Total 191 concepts)

48%

40%

52%

60%

DEVELOPING MARKETS

PREMIUM

DEVELOPED MARKETS

PARITY

Developing Markets- Brazil, China, Costa Rica, India, Indonesia, Mexico, Nigeria,
Pakistan, Russian Federation, Sri Lanka, Vietnam
Developed Markets- France, Germany, Italy, Malaysia, Saudi Arabia, South Africa,
Taiwan, U.K., U.S.
Source: Nielsen

Success rates for new concepts differ by markets and pricing.


Developing markets display a higher success rate than their developed
counterparts, which is not surprising since it is more difficult to
achieve break through success in a more mature market. Meanwhile,
economically priced products show a greater chance of succeeding
than premium.

50%
SUCCESSFUL
SEGMENTS

191
CONCEPTS

TOTAL CONCEPTS

% SUCCESSFUL

Developing Markets

100

60%

Developed Markets

91

38%

Parity Initiatives

77

60%

Premium Initiatives

114%

43%

50%
UNSUCCESSFUL
Source: Nielsen

FEATURED INSIGHTS | WINNING IN THE GLOBAL ORAL HYGIENE MARKET

WHAT MAKES FOR A WINNING


PROPOSITION?
Weve found that the success or failure of new concepts can largely be
attributed to four critical factors that make or break the perception of a
new concept in the eyes of consumers. These include:
CONTEXT
SETTING

BENEFITS

REASONS TO BELIEVE
(RTB)

VISUALS

SETTING THE RIGHT CONTEXT


Based on our research, most successful concepts use either an
emotional proposition like confidence or popularity or a functional one
like protection or oral health and hygiene. Contrary to popular belief
that functional promises to work better with consumers, the numbers
tell a different story. Our study shows that emotional and functional
propositions have equal rates of success when it comes to oral hygiene.
Of all the concepts tested, 50% of concepts with functional propositions
saw success and the exact same percentage of concepts with emotional
propositions proved successful.
While emotional and functional propositions work equally well overall,
differences emerge at a market level. Our observation is that functional
propositions work better in developing markets and emotional ones saw
greater success in developed markets. Similarly, functional propositions
work better with parity-priced initiatives whereas emotional propositions
works in tandem with premium initiatives.

THE WINNING PROPOSITION


EMOTIONAL OR FUNCTIONAL - MARKET SPECIFIC TRENDS
CATEGORIES

Number of
%
Concepts Successful

Developing Markets

94

62%

Emotional

28

54%

Functional

66

65%

CATEGORIES
Base
Success
Rate

Base
Success
Rate

Number of
%
Concepts Successful

Parity Initiatives

73

62%

Emotional

11

45%

Functional

62

65%

Premium Initiatives

105

45%

Developed Markets

84

40%

Emotional

19

53%

Emotional

36

56%

Functional

65

37%

Functional

69

39%

Base
Success
Rate

Base
Success
Rate

*Base Success Rate: % of successful initiatives out of the total initiatives tested which have either emotional
or functional proposition and for parity and premium initiatives
Source: Nielsen

Copyright 2014 The Nielsen Company

IN TERMS OF SETTING THE CONTEXT,


EMOTIONAL AND FUNCTIONAL
PROPOSITIONS WORK EQUALLY WELL.
Concepts that talk directly to mothers had a higher level of success
as compared to the rest. Of the total initiatives that have insights
addressing mothers, 63% proved successful. However, talking to her
or talking as her did not seem to make a difference in overall success.
Comparatively, only 46% of insights addressing individuals have gone
on to be successful.

WHOM SHOULD I TALK TO?


CATEGORIES

Number of
%
Concepts Successful

Total Concepts

183

51%

Addressing
individuals

134

46%

Mother oriented
insight

49

63%

Base
Success
Rate

*Base Success Rate: % of successful initiatives out of the total initiatives which have
insights addressing either individuals or mothers
Source: Nielsen

PROPOSITIONS THAT TALK DIRECTLY TO


MOTHERS HAVE A HIGHER SUCCESS RATE
AS COMPARED TO INSIGHTS ADDRESSING
INDIVIDUALS.

While addressing mothers may contribute to success, the content or


message remains equally important. In our study, propositions that
addressed mothers with a message inducing fear or highlighting a
problem, such as Do you know that poor eating habits can hasten
cavity formation in children?, had a high success rate of 71%.
When propositions addressed mothers and focused on a need or
desire, however, the success rate fell to 50%. Also, mother-oriented
propositions when framed as questions, seem to substantially increase
chances of success.

FEATURED INSIGHTS | WINNING IN THE GLOBAL ORAL HYGIENE MARKET

MOTHER ORIENTED INSIGHTS


Number of
Concepts

%
Successful

Total Concepts

31

65%

Insights addressing
mothers and
expressing problem/
inducing fear

21

71%

Insights addressing
mothers and
expressing need/
desire

10

50%

CATEGORIES

Base
Success
Rate

*Base Success Rate: % of successful initiatives out of the total initiatives which have
insights addressing mothers and are either expressing problem/inducing fear or
expressing need/desire
Source: Nielsen

INSIGHTS DIRECTED TOWARD MOTHERS


EXPRESSING A PROBLEM OR INDUCING FEAR
HAVE A SUBSTANTIALLY HIGHER SUCCESS
RATE COMPARED WITH THOSE EMPHASIZING
A NEED OR DESIRE.

BENEFITS THAT TICK


Consumers have come to expect some essential benefits from oral
hygiene products, like cleaning, germ killing, cavity protection,
strengthening, etc. Then, there are advanced benefits like gum care,
sensitivity, whitening, etc. Concepts with essential care benefits seem to
have a higher rate of success than those with advanced care. However,
there are some caveats.
Essential care benefits that are priced at a premium do not seem to
work well in the market.
We also see that advanced care benefits work better if combined with
essential care benefits, especially when designed for developing
markets and premium initiatives.
Premium propositions have to work harder to succeed, irrespective
of market characteristics.

Copyright 2014 The Nielsen Company

CONCEPTS WITH ESSENTIAL CARE BENEFITS


SEEM TO HAVE A HIGHER RATE OF SUCCESS
THAN THOSE WITH ADVANCED CARE. HOWEVER,
ESSENTIAL CARE BENEFITS THAT ARE PRICED AT
A PREMIUM DO NOT SEEM TO WORK WELL.

ESSENTIAL VS ADVANCED BENEFITS


92

TOTAL
CONCEPTS

50%

57%
49

Base
Success
Rate

TOTAL
CONCEPTS
(ESSENTIAL)

42%
43

ESSENTIAL

49
57%

37%
19

ADVANCED

70%
30

PREMIUM

NUMBER OF CONCEPTS

Base
Success
Rate

PARITY

% SUCCESSFUL

*Base Success Rate- % of successful initiatives out of the total initiatives which have either essential care or advance care benefits

SHOULD WE COMBINE ESSENTIAL AND ADVANCED CARE BENEFITS


FOR BETTER SUCCESS?
39%
59

GUM CARE

59%
17

24%
21

GUM CARE AND


CLEANING

SENSITIVITY

NUMBER OF CONCEPTS

36%
11

SENSITIVITY AND
CAVITY PROTECTION

% SUCCESSFUL

Source: Nielsen

However, benefits arent the only consideration; frequency also seems


to have a bearing on success. Concepts that focus on a single benefit
fare better than those with multiple benefits which may distract the
consumer. And, the single benefit that has seen the most success is
cavity protection, perhaps because it is a visible manifestation of poor
oral hygiene and can be quite painful.
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FEATURED INSIGHTS | WINNING IN THE GLOBAL ORAL HYGIENE MARKET

WHAT WORKS BETTER?


Number of
Concepts

%
Successful

Total Concepts

189

50%

Single Benefit

62

60%

Multiple Benefits

127

46%

CATEGORIES

Base
Success
Rate

*Base Success Rate: % of successful initiatives out of the total initiatives which have
benefits, either single or multiple benefits
Source: Nielsen

THE WINNING BENEFIT


Number of
Concepts

%
Successful

Total Concepts
(Single Benefit)

62

60%

Cavity Protection

12

75%

Whitening

24

54%

Germ Kill

10

30%

CATEGORIES

Base
Success
Rate

*Base Success Rate: % of successful initiatives out of the total initiatives which have
single benefit
Source: Nielsen

REASON TO BELIEVE IS REASON TO


SUCCEED
Any ingredients, technology or methods that lend credence to a
concepts benefit claims give consumers a reason to believe (RTB).
Success rates in the study show that its important for any concept
to have RTB, but the combination of multiple RTBs improves chances
for success. Moreover, while the average success rate of concepts with
RTBs is 54%, natural or herbal RTBs have a much higher success rate
(86%) than chemical or technology-based ones (52%).

Copyright 2014 The Nielsen Company

HOW IMPORTANT IS IT TO HAVE RTB IN A CONCEPT?


Number of
Concepts

%
Successful

Total Concepts

190

50%

Concepts with RTB

166

54%

Concepts without RTB

24

25%

CATEGORIES

Base
Success
Rate

*Base Success Rate: % of successful initiatives out of the total initiatives


Source: Nielsen

HOW MANY RTBS SHOULD BE THERE?


Number of
Concepts

%
Successful

Total Concepts

166

54%

Single RTB

100

50%

Multiple RTB

66

59%

CATEGORIES

Base
Success
Rate

*Base Success Rate: % of successful initiatives out of the total initiatives which have
RTB present
Source: Nielsen

CONVINCING CONSUMERS OF THE


BENEFIT
For consumers to be convinced on the benefit the proposition offers,
the RTB needs to be linked seamlessly with the benefit in a relatable
manner. The presence of an ingredient or a technology as an RTB needs
to be contextualized with their linkage to the benefit the proposition
offers.
Clearly illustrating this link through the use of impactful visuals
substantially enhances the chances of success.

FEATURED INSIGHTS | WINNING IN THE GLOBAL ORAL HYGIENE MARKET

CATEGORIES

Number of
Concepts

%
Successful

Standalone RTB

92

50%

RTB with a link to


benefit

74

58%

RTB - link to benefit


visually demonstrated

32

69%

Base
Success
Rate

Source: Nielsen

IMPACTFUL VISUALS LINKING THE RTB TO


THE BENEFIT ENHANCE A PROPOSITIONS
CHANCES OF SUCCESS.

A PICTURE IS WORTH A THOUSAND


WORDS
Visuals and imagery are integral to campaigns, and concepts that have
family visuals tend to be more successful than those with visuals of
individuals or friends. Meanwhile, visuals of dentists and professionals
seem to be losing out on popularity with consumers, who would much
rather see visuals of the actual paste.

PICS THAT CLICK


Number of
Concepts

%
Successful

Total Concepts

71

58%

Individual/friends
Visuals

32

50%

Family Visuals

39

64%

CATEGORIES

EXAMPLE:

Base
Success
Rate

INDIVIDUAL/FRIENDS
VISUALS

FAMILY VISUALS

*Base Success Rate: % of successful initiatives out of the total initiatives which have
either individual or family visuals
Source: Nielsen

Copyright 2014 The Nielsen Company

DO VISUALS OF DENTISTS/ PROFESSIONALS HELP IN A CONCEPTS


SUCCESS?
Number of
Concepts

%
Successful

Total Concepts

72

46%

Dentist/ Institute logo


visuals

19

32%

Mouth/ Teeth visuals

26

42%

Toothpaste visuals

27

59%

CATEGORIES

EXAMPLE:
Base
Success
Rate

DENTIST/ TEETH
VISUALS

TOOTHPASTE VISUALS

*Base Success Rate: % of successful initiatives out of the total initiatives which have
dentist, mouth/teeth or paste visuals
Source: Nielsen

Interestingly, while both RTBs and visuals are individually important


to a concept, an RTB supported by a visual substantially increases
chances of success. While an average concept with an RTB has a 54%
chance of success, a concept with an RTB accompanied by an image of
an ingredient has a whopping 89% chance of success.
With evolving consumer behaviour and a multitude of new product
launches that offer advanced benefits in the oral hygiene space,
marketers would need to think differently to stand out in a cluttered
market. Being in constant touch with the changing needs of the
consumer is imperative for both successful innovations as well as
impactful communication.
According to a report by Global Industry Analysts Inc., the global
toothpaste market is expected to grow to $12.6 billion by 2015. The
opportunity is even bigger in India. With the domestic market
expected to grow at a far greater pace than that of global, Indias oral
hygiene market, especially the toothpastes segment, is an exceptional
opportunity for retailers and manufacturers.

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FEATURED INSIGHTS | WINNING IN THE GLOBAL ORAL HYGIENE MARKET

COMPARED TO THE GLOBAL ORAL HYGIENE


MARKET WHICH IS EXPECTED TO GROW
AT 3% CAGR IN THE NEXT THREE TO FOUR
YEARS, INDIAS MARKET IS EXPECTED TO
GROW AT 14% CAGR.

THE NIELSEN QUALITATIVE VIEW


ORAL HYGIENE IN INDIA

BY: SARBANI SEN, DIRECTOR, NIELSEN INDIA


Conventionally, shopping for oral hygiene products was a


habituated, low-involvement activity, where one brand was
bought and used by the entire family. But thanks to bigger
marketing spends by oral hygiene companies, increasing
awareness regarding oral hygiene and higher discretionary
income, the consumer is gradually getting more involved in
the category.

A typical urban family is now buying different kinds of


toothpaste as each member looks for something specific.
Since modern trade lends itself to product discovery, brands
that want to disrupt and pave the way for revaluation can
achieve success.

Consumers are trading-up from regular to functional


toothpastes. Going forward, more specialised segments will
open up as the generic product user base shrinks.

The role of advertising in building awareness around


specialist needs is crucial. Here, communication, as well as
below-the-line initiatives like sampling and retail activation,
need to be basic and educational in tone.

Copyright 2014 The Nielsen Company

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ABOUT THE AUTHORS

ADRIAN TERRON

VISHWANATH

EXECUTIVE DIRECTOR

RADHAKRISHNAN

NIELSEN INDIA

ASSOCIATE DIRECTOR
NIELSEN INDIA

Juzar Kagalwala from the Nielsen Innovation Practice team was


instrumental in creating this issue of Featured Insights.

ABOUT NIELSEN


Nielsen N.V. (NYSE: NLSN) is a global information and measurement
company with leading market positions in marketing and consumer
information, television and other media measurement, online
intelligence and mobile measurement. Nielsen has a presence in
approximately 100 countries, with headquarters in New York, USA
and Diemen, the Netherlands.
For more information, visit www.nielsen.com.
Copyright 2014 The Nielsen Company. All rights reserved. Nielsen
and the Nielsen logo are trademarks or registered trademarks of
CZT/ACN Trademarks, L.L.C. Other product and service names are
trademarks or registered trademarks of their respective companies.

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FEATURED INSIGHTS | WINNING IN THE GLOBAL ORAL HYGIENE MARKET