A UAI Study on Colgate Toothpaste Submitted by: Coyiuto, Rosalina De Leon, Jhoanna Andrea E. Sy, Dana Iriza K. Uy, Dana Clarisse Yu, Shereene Submitted to: Mr. B. Encarnacion April 6, 2010 I. Background Happee Toothpaste is manufactured by a Filipino company, Lamoiyan Corporation. Lamoiyan specializes in oral care products such as Happee and Kutitap toothpaste and house care products like Daze. The owner of Lamoiyan, Dr. Celio Kwok Pedro used to own a company called Dr. Pedro’s Aluminum Containers, Inc.
This company stood as a major supplier of aluminum collapsible toothpaste tubes to companies like Colgate-Palmolive and Procter and Gamble. Although in 1985, these companies started using plastic laminated tubes causing Dr. Pedro to close down the factory. He eventually realized that the equipment in the factory can still be used if he makes his very own toothpaste brand. He was able to penetrate into the toothpaste market two years later as he reopened the factory and named it Lamoiyan Corporation.
Lamoiyan’s product Happee now have a variety of products that will cater to the consumer’s needs and tastes including – Happee Fresh Cool & White, Happee Explosive Menthol Red, Happee Fresh Green Outburst, Happee Outrageous Orange Blast, Happee Complete Plus Whitening, Happee Tweens Sachet, Happee Kiddie Toothgel, Happee Night Mint, Happee Extreme Clean. Every toothgels has maximum fluoride protection that will fight tooth decay, strengthens teeth and freshens breath. There can be several pricing strategies that can help the company in improving its profits.
Some of these include list price, competitive pricing, cost plus mark-up, close out, membership or trade discounting, and bundling and quantity discounts. Happee uses the strategy of competitive pricing in which, they use the competitors’ retail or wholesale prices as a benchmark in making their own prices. The prices they make can be below, above or the same as some brands depending on their positions in the market. For example, Happee and Beam have the same price which is 56. 75 in their 150mL green toothgel toothpaste while Colgate’s price for the same size is 67. 5 Php Table 1 – Different Brands and Prices of a 150ml Toothpaste |Toothpaste Brand |Price | |Hapee Fresh Green Outburst |Php 56. 75 | |Beam Sparkling Green |Php 56. 75 | |Colgate Green Menthol |Php 67. 75 | |Newtex |Php 27. 25 | |Charmee |Php 21. 5 | |Those Days |Php 13. 25 | |Sisters |Php 23. 25 | |My Best Friend |Php 15. 75 | Source: Robinson’s Place Manila Lamoiyan distributes its products well by passing it on to agents (middlemen between manufacturers and wholesalers/distributors), wholesalers, distributors, retailers, or even directly to the consumers.
The product then moves from the distributors and wholesalers to the retailers, which include groceries, drugstores, department stores, convenience stores and some sari-sari stores. These are very important steps to make sure that the all consumers will be in the reach of the product. In groceries, Happee is usually placed in the personal care section together with all the other products in the same category. Happee has several advertising methods that include magazine and newspaper prints, television and radio advertisements. It is currently being endorsed by actress/singer Lea Salonga, best known for her musical role in Miss Saigon.
Another endorser is the famous singer and actress Sarah Geronimo whose rise to fame started from winning the Star for the Night competition back in 2002. Other sales promotion methods include handing out samples, sponsoring events, having twin sachets, popular cartoon characters on the boxes and bundling together with other personal care products. Promotions are used in terms of product awareness so the consumers are exposed to TV commercials, radio advertisements, billboards and the like. There are many brands of toothpaste in the market and these methods are very important for the company to gain user preference and more consumers.
Brand preference is well fought for in the market for this is what gives the company their edges. This is where the significance of customer loyalty comes in. II. SWOT Analysis In our study regarding the usage of toothpaste by the house helpers in the Forbes and Dasma Village in Makati, the group has identified the SWOT of its different brands. The strengths of toothpaste include primary market position, diversified and novel product range, well-built finances in the past years, and quality processes and procedures.
On the other hand, the weaknesses are namely decreased profits and decreased usage of the product, problem in product quality control, and undifferentiated products in relation to the competitors’ and it’s tie-in with the product toothpaste. The opportunities consist of new international market, developing markets, mergers, joint ventures or strategic alliances, and vacation of the market by an unsuccessful competitor. On the contrary, emergence of new competitors in the same market, price wars with competitors, and an innovative product from the competitor/s.
The SWOT analysis should be taken into consideration and used only as a guide because it can be subjective. The SWOT should be kept short and simple and may be used together with other tools in order to make intellectual marketing decisions. III. STEPLE Analysis IV. Competitive Benchmarking V. Objectives By the end of the term, the researchers aim to know following: • the usage of direct the house helpers (in Makati City) of the product toothpaste particularly which brands are familiar to them • how did they find out about the product what kind of advertisements are the most effective whether through television, radios, newspapers, stores, etc. • what brand of toothpaste do they use the most • what brands they have tried • where did they last buy the product • where do they usually buy the product • their likes and dislikes regarding the product they last used • what areas to improve on • their brand preference VI. Research Problems VII. Methodology The group will make use of a UAI questionnaire to collect data from a 100-respondent sample consisting of house helpers from the Forbes and Dasma Village in Makati City.
The respondents will be randomly selected from the assigned villages. Each group member will be assigned twenty five respondents each. It is up to the group member to set appointments with the respondents and interview them personally. The group members will give a token to each respondent after the 15-minute interview. After collection, the data will be quantified and presented in graphs for analysis and interpretation. VIII. Results A. Market Size Estimation PENDING B. Market Development Opportunites Table 1. 1 Purchases out of 100 users and non-users | |Brand |Last Bought | |supermarket |66 | |drugstore |5 | |convenience store |8 | |department store |5 | |sari-sari store |16 |
Figure 1. 1 IX. Conclusion X. Implications XI. Recommendations C. Brand Loyalty and Switching Table 1. 2 |Brand Market Share out of 100 | | |Brands |Previous Market Share |Current market Share | | |Colgate |44 |54 |Market Leader and Biggest Share | |Close-Up |34 |33 |No. Brand | |Happee |22 |12 |Largest Share Loser | |Sensodyne |0 |1 | | |Floucaril |0 |0 | | |Pepsodyne |0 |0 | | Figure 1. 2 Market Share A. Brand Awareness Table 1. 3 Brand Awareness for Toothpaste | | |% Base Awareness for This Brand | |Brand |FM |OM |Aided |Unaided |Total | |Colgate |84 |11 |4 |95 |99 | |Close-Up |12 |86 |1 |98 |99 | |Happee |4 |72 |20 |76 |96 | |Sensodyne |0 |41 |28 |41 |69 | |Floucaril |0 |10 |21 |10 |31 | |Pepsodyne |0 |1 |12 |1 |13 | Figure 1. 3 Advertisment Awareness PENDING B. Trial and Usership Table 1. 4 |Brands | | |Share indicators | |Prevents Bad Breath |3. 65 | |Prevents Cavities |3. 45 | |Strengthens Teeth |3. 37 | |Whitens Teeth |2. 82 | |Boosts Confidence |2. 39 | Based from the chart above, people value not having bad breath and cavities the most. When we think of toothpaste, it automatically tells us its major role, which is to prevent cavities and bad breath.
Also, because of the advertisements that are constantly being promoted in televisions, newspapers, radios, magazines and other ads, people have already implanted in their minds that toothpaste is there to prevent us from having bad breath and cavities. Type of Toothpaste being Used | |Type of Toothpaste Used | |For Whitening |47 | |For Fresh Breath |54 | |For Sensitive Teeth |14 | |For Cavity Protection |39 | |Others |2 | Place of Distribution Brand |Last Bought |Bought most often | |supermarket |66 |57 | |drugstore |5 |8 | |convenience store |8 |11 | |department store |5 |1 | |sari-sari store |16 |24 | Supermarkets acquired the most number of people where they buy their toothpaste. We cannot hide the fact that a lot of supermarkets are built around the Metro that is why most service workers just go there to buy their basic necessities. From the area we have surveyed, a lot of supermarkets are present in their area for their convenience. Some of these are Savemore, Puregold, SM Supermarkets and even Landmark. Other Products bought with Toothpaste Mouthwash |24% | |Toothbrush |72% | |Shampoo |5% | |Soap |10% | |Lotion |1% | |Floss |4% | Based from the tabulated results, most service workers do not often buy other products along with toothpaste besides the basic one—toothbrush. It might be because they do not have the excess amount of money with them to buy other products other than the toothbrush. Mouthwash garnered 21%, which means that people are still concern in killing those bacteria they might have gotten.
Other toiletries such as shampoo, soap and lotion are sometimes bought with toothpaste because they can be found near the place where oral care products can be bought. Other Toothpaste Users |Father |45 | |Mother |57 | |Sister |70 | | Brother |64 | |Roomate |2 | |Wife |1 | |Others |41 | Preferred Product Attributes |Good Quality |40 | |Cheap |54 | |Gives Fresh Breath |17 | |Prevents Cavities |13 | Protects gums and teeth |9 | |Whitens teeth |8 | |Appealing Flavors |10 | Since the category we have surveyed are purely household helpers, price would be always considered first. Since they do not earn that large enough of money, they would always take in to consideration the price first (if they can afford it or not). Next would be the good quality of the product. To have loyal customers for your product, the company must always provide good qualities from their product. PROFILE POSITIONING ANAYLSIS TREE N. O. S MARKET SEGMENTS CONCLUSION IMPLICATION RECOMMENDATION
