SAVLON TOOTHPASTE

Executive summary
The following marketing plan forms the basis for the
introduction of an innovative new product by the Savlon
Company. The analysis allows us to outline the best
strategies to follow for the achievement of the company’s
strategic goals. “smiledent” will be the unique toothpaste..
The marketing strategies will enable to reach a market size
of an estimated 740 million people (targeted) with a
forecasted sales growth prospect of 7.3% over the next 4
years. Success will be reflected by a sizeable capture of
market shares within this market, while strategically carrying
the company up to the top spot .

INDUSTRY OVERVIEW
Indian oral care industry (including toothpaste and toothpowder) is about Rs. 35 billion.
Colgate and HUL contribute around three fourth of the total market. Other major players
include Dabur and Anchor group together contributing around 15% of total market

COMPANY OVERVIEW

Savlon is a brand of first aid and medical products manufactured in the UK by

Novartis Consumer Health. The name Savlon usually refers to Savlon antiseptic
skin healing cream, a topical antiseptic cream sold in the UK without
prescription. The active ingredients in Savlon cream are Cetrimide and
Chlorhexidine Gluconate. It is commonly used for treatment of mild scarring,
some mild burns, cuts and bruises as well as skin healing treatment for spots
(i.e. pimples).

Savlon is also a brand of antiseptic liquid marketed by Johnson &

Johnson in India.

Now it is diversifying its product in toothpaste industry.It is entering

into the market with three varieties.

1.smiledent oral care.

2.smiledent cool fresh gel

3.smiledent ultrawhite.

MISSION
"We will provide branded products and services of superior quality and value that improve the lives
of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and
value creation, allowing our people, our shareholders, and the communities in which we live and
work to prosper."

"We dedicate ourselves to humanity's quest for longer, healthier, happier lives through
innovation in consumer and health products".

VISION

Our endeavour would be to provide quality products and bring smiles to our customers.

PRODUCTS PORTFOLIO
SAVLON® antiseptic helps heal without hurting. It contains a
powerful combination of chlorhexidine gluconate and cetrimide,
which together not only kill germs but also prevent their re-
growth. 

 
Savlon advanced plaster
THE FAMILY PLASTER THAT CAN HEAL FAST

A little blood can go a long way, and even a small cut can be distressing
for young children.

So be ready, with Savlon Advanced Plasters. They contain a special

ingredient that can actually control further bleeding and, therefore speed up the start of the
healing process. Like all Savlon plasters, Savlon Advanced are hypoallergenic, and because
their breathable fabric lets the ideal amount of air and moisture in, they help the wound to
heal naturally and protect it from the danger of infection.

Savlon antiseptic cream

More people choose the Savlon famous ‘blue’ tube than any other
antiseptic cream. It’s been a trusted friend in the medicine cabinet for
generations, dispensing oodles of ‘there, there’ whenever and wherever
it’s needed. Soothing Savlon Antiseptic helps prevent infection and aids
natural healing in cuts and grazes; insect bites and stings; sore or chapped skin; blisters, burns
and spots; even minor sunburn.

So whatever the emergency, you can always rely on the original blue tube

Savlon antiseptic wound wash

This might sting a bit...’ How often have you said those words and dreaded
what’s to come? Well, thankfully, this product could offer a solution.Savlon
Antiseptic Wound Wash is a pump-action spray that allows you to wash dirt
and grime from cuts, grazes, stings and burns, and protects against infection
by cleaning and killing bacteria - without touching or aggravating the

wound.Because it doesn’t sting it’s ideal if you’ve got very young children... or even slightly
bigger babies who really should be braver than they are!

Savlon cleansing wipes

At the park, in the playground or away on holiday, accidents can happen.

Carry a pack of Savlon Cleansing Wipes with Antiseptic in the car or your
handbag and you’ll always be prepared if you need to cleanse your hands.
Individually wrapped, for maximum convenience and hygiene, they’re
perfect for cleansing and disinfecting hands on the go in one easy wipe.

Savlon Dry Antiseptic Spray is a convenient spray for 'no-touch' first aid
treatment on the go. Ideal for your sports bag, rucksack or gardening kit, it
means you don’t have to worry about passing on infection if there's
nowhere to wash your hands; one spray forms an instant, protective layer
that helps to prevent infection and aids natural healing allowing you to get
on with things, instead of licking your wounds, cuts and grazes on the
sidelines.

COMPETITIVE ENVIRONMENT

The two largest players in the toothpaste market are Colgate and Hindustan Lever and they are
constantly battling for leadership in this segment. Colgate has a market share of 49 percent and
Hindustan Lever has a market share of 36.5 percent. The two players are more concerned to increase
their market share but have not focussed seriously on increasing their market penetration to achieve
this. They have both been targeting the urban market more. Both HLL and Colgate have been
concentrating their advertising and marketing expenditure towards this segment but despite this the
toothpaste market is growing at only a single digit rate of 5 percent per annum, which shows that the
urban segment is fairly saturated.

Colgate Palmolive is the leader in Indian toothpastes having a market share of 50% in 2009. HUL
follows with 28%. It’s Close-Up has a market share of 17% and Pepsodent 11%, according to AC
Nielsen data. Since 2007-08, analysts said HUL has lost 8-10% market share in oral care.
Another player, Dabur, enjoys 10% share through its portfolio of Red Toothpaste, Promise, Meswak
and Babool.

Recently, GlaxoSmithKline Consumer forayed into the sector by launching Sensodyne (though it was
available as an import earlier), a toothpaste brand for sensitive teeth.

The segment saw a new entrant — theFuture Group launched its Sach brand recently.

In 2005, P&G acquired The Gillette Company, which gave it the OralB brand. P&G India sells
toothbrushes under OralB brand in India, sales of which, Duggad says, are growing at 40% annually.
He values the brand at Rs 180 crore.

The Indian toothpaste market is currently dominated by Colgate with over 50 per cent market
share, followed by the likes of Pepsodent, Close Up, Dabur Red and Babool.

While the overall toothpaste market is currently growing at 8 per cent, the dentist recommended
'sensitive toothpaste' segment is estimated to be around Rs 140 crore and growing at around 18
per cent, he added.

Situation analysis
SWOT ANALYSIS
STRENGTHS

 well established company in healthcare sector.

 Formidable entry barrier for entrants.

 strong existing distribution channel

WEAKNESSES
 entrance into difficult non core category
 Market is already facing tough competition with existing players.
There is a fear of brand dilution for the company in case of failure.
OPPORTUNITY
There is a large scope of growth in rural india.
 Toothpaste consumption in India
very low at 92 grams per household
per month.
THREATS
competition is intense
 Dabur third largest player with
brands like Babool, Meswak, Promise.
 Foreign brands like AQUA-FRESH,
ORAL-B, JORDAN, etc are trying to take the course of the market to different
dimensions.

Competitive analysis:
India's per capita consumption of toothpaste is very low. This is because 74 percent of our population
live in rural areas and hence they are not conscious about personal health and hygiene. As the
penetration level of this rural segment is at a low of 30 percent, this means that only 200 million of our
740 million rural population uses toothpaste. The penetration levels of the rural toothpaste market is
only 30 percent providing a gaping scope for improvement as compared to the urban market
penetration of 70 percent. On an all India basis penetration is still low at 35 percent, due to higher
population in the rural areas.

Market share of toothpaste kings

This data shows that in order to penetrate into the toothpaste market savlon has to target rural
population as there is scope for growth and earn substantial market share.

OBJECTIVE

Our objective is to provide our consumers a healthy and safe life with the help of our quality
medicated products.

TARGET MARKET

India's per capita consumption of toothpaste is one of the lowest in the world, it currently stands at 70
grams as compared to the global average of 362 grams. This is because 74 percent of our population
live in rural areas and are not well versed with personal health and hygiene. As the penetration level
of this rural segment is at a low of 30 percent, this means that only 200 million of our 740 million rural
population uses toothpaste. Many other people in India still clean teeth with traditional
products like neem twigs, salt, ash, tobacco or other herbal ingredients. Recent studies have
indicated dual usage (powder and paste) in 10% of rural households. . In relative terms,
penetration of toothpowder is higher in North and toothpaste in South. This could be due to
higher education, purchasing power and urbanization in the South.

In the long term however toothpaste players have a tremendous potential to grow in this market. The
reasons being that income levels are rising and the population is becoming more aware of personal
hygiene. To add to this there is an increase in literacy levels across the country. As media will play an
important role hence advertising keeping the rural Indian in mind will provide the much needed
impetus for growth to this market.
The penetration levels of the rural toothpaste market is only 30 percent providing a gaping scope for
improvement as compared to the urban market penetration of 70 percent. On an all India basis
penetration is still low at 35 percent, due to higher population in the rural areas.

The successful players in this segment will be those companies who will be able to change the
mindset of rural India and convince them to change their habits of using local black powder and
chewing sticks to toothpaste. They will without doubt emerge to be the winners in the growing
toothpaste industry.

MARKETING STRATEGIES
SEGMENTATION STRATEGY

Behavioral segmentation: savlon segmented the market on the basis of behavioral

segmentation. As it paid focus on the benefit and usage of the product. It caters the need of
that market which requires reliable toothpaste which keeps the mouth fresh as well as germ
free.It also satisfy the needs of those customers who prefer medicated products over general
items.

Demographic segmentation: savlon also segmented its product on the basis of age. As it
launches smiledent whitening toothpaste for strong and germ free teeth which caters the
needs of mature and aged consumers.

It also caters the needs of youth as it focuses on freshness and whitening of teeth with its
product named smiledent ultrafresh gel.

It tries to satisfy the needs of those customers who prefers medicated products like medicated
soaps and fairness creams. Simlarly it launched smiledent oral care.

TARGETING STRATEGY

Market specialization: Indian Healthcare market has emerged as one of the most
progressive and largest service sectors in India with an expected GDP spend of 8 per cent by
2012 from 5.5 per cent in 2009. It is believed to be the next big thing after IT and predicted to
become a US$ 280 billion industry by 2020," the report said.At present the sector is estimated
to be around US$ 40 billion and will grow to US$ 78.6 billion by 2012.

The company focuses on healthcare market.Its varios products like savlon advanced
plaster,savlon antiseptic liquid,savlon antiseptic cream,savlon antiseptic wound wash etc fall
into this type of targeting strategy.

Even its latest launch into toothpaste market falls into oral health care sector.

POSITIONING STRATEGIES

Attribute strategy: smiledent cool fresh gel toothpaste contains cooling crystals with mint
flavour which keeps mouth fresh for whole day.
smiledent oralcare consists of clove oil which keeps the gums healthy and teeth strong.

Smiledent ultrawhite toothpaste contains sodium fluoride which is colourless compound and
protects teeth against plaques and keeps teeth ultrawhite.

Benefit positioning: smiledent ultrafresh gel toothpaste keeps you fresh for entire day and
stops bad breathe.It uses the tag line of “laye saanson mein taazgi” serves the purpose of
positioning. smiledent oral care protects your teeth from germs and keeps your gums
healthy.Its punch line also signifies its strategy which is “ab kitanoo nahi bachenge”

Quality positioning: smiledent toothpaste is a product of well known and trusted brand
savlon.It does not compromise in quality.It positioned itself as a toothpaste which is
recommended by dentist and it is approved by Indian Dental Association (IDA).

MARKETING MIX

Product strategy: the company is entering into the market with its three different
product of the same segment ie toothpaste market.the compny comes into healthcare industry
and it is diversifying into another aspects of the healthcare sector ie. Oral health care with its
pproduct which is toothpaste.company observes lots of scope in this market.It launches its
variety of toothpaste each one caters need of particular segment of customers.

Smiledent oral care:It is a medicated toothpaste which will be easily available in medical
stores it satisfy the the needs of those people who prefer medicated products

Smiledeent cool fresh gel: It is a gel toothpaste which is for those consumers who have the
problem of bad breathe.It keeps the breathe fresh.

Smile dent ultrawhite:It is for those people who likes white and shining teeth it also protects
your teeth from germs and keeps your gums healthy.

Pricing strategy: analysing the pricing strategy of existing players the company
will focus on low price strategy.It will also launch its product in small quantity. So that
consumers can have a try on it.It will starts from minimum 50 gm weight worth Rs 15.

Brand Feature Weight Price (Rs)

Oral B Specially for children 100gm 55*
Colgate Total Paste 100gm 35
Gel Gel 100gm 24.50

Ultra whitening Paste 150gm 39

Sensation whitening Paste 150gm 39

Calciguard Paste 100gm 24.50

Pepsodent Germicheck Paste 200gm 49.90

2 in 1 Paste+ gel 150gm 45.10

Aguafresh Paste + gel 100gm 25
Close up Gel 100gm 33
Promotion strategy: The company will focus on aggressive advertisement
through print media including local and national newspapers, magazines,pamphlates.It will
also promote the product through electronic media including TV ads.besides these radio
stations also plays a key role in mass awreness about the product since a large section of
population in rura; india is deprived of TV ads.

Place : as the product serves the purpose of oral hygiene and it forms one of the daily
needs of consumer.it will be sold throughout the country.It is an undifferentiated
product.However one of the product falls under the category of medicated products.so it will
be easily available in local medical store as well as general store.