Listerine Essay
Listerine ® | SHAVVON | | 11/26/2010 | |
Table of Contents Final Project Report 2 Project Title 2 Introduction 2 Company Profile 2 Project Orientation 2 Purpose of Study 3 Aims & Objectives 3 Literature Review 4 Research Problem & Hypothesis 9 Marketing Research Problem 9 Research Questions & Hypothesis 9 Methodology 10 Consumer Study 10 Retailer Study Analysis 11 Consumer Survey 11 Retailer Survey 20 Growing demand for mouth fresheners 21 Consumer Perceptions about mouthwash 21 Brand Preference (By Trade) 22 Conclusion & Suggestions 23 Appendices: 24
Listerine
Final Project Report
Project Title
“Scouting market potential for Listerine® in the Pakistani …show more content…
market with emphasis on the Rawalpindi/Islamabad market”
Introduction
Company Profile
Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment provides products used in baby care, skin care, oral care, wound care, and women’s health care fields, as well as nutritional, over-the-counter pharmaceutical products, and wellness and prevention platforms under the names JOHNSON’S, AVEENO, CLEAN & CLEAR, JOHNSON’S Adult, NEUTROGENA, RoC, LUBRIDERM, Dabao, Vendome, LISTERINE®, REACH, BAND-AID, PURELL, CAREFREE, STAYFREE, SPLENDA, TYLENOL, SUDAFED, ZYRTEC, MOTRIN IB, and PEPCID AC.
It's nearly impossible to get well without Johnson & Johnson (J&J). The diversified health care giant operates in three segments through more than 250 operating companies located in some 60 countries. Its Pharmaceuticals division makes drugs for an array of ailments, such as neurological conditions, blood disorders, autoimmune diseases, and pain. Top sellers are psoriasis drug Remicade and schizophrenia medication Risperdal. J&J's Medical Devices and Diagnostics division offers surgical equipment, monitoring devices, orthopedic products, and contact lenses, among other things.
Project Orientation
Our report’s brief sequential order is as follows:
• First of all we’ve studied what Johnson & Johnson is all about, their products, services and company credo.
• The second section relates to the literature study done on our subject matter. For this we’ve taken help from the internet, as well as case studies from IPA (Institute of Practitioners in Advertising, UK)
• We then state our research questions and hypothesis formed from them. The components of the marketing research problem derived from the hypothesis are also included.
• Our methodology to go about the research at hand is discussed.
• The analysis of primary data is included in our report.
• The last section includes the conclusion and recommendations to Johnson & Johnson Pakistan (Pvt.) Ltd regarding the official launch of Listerine ® in Pakistan.
Purpose of Study
Our research is focused mainly on finding whether or not a substantial market exists for mouthwash products in Pakistan, and if it’s feasible for Johnson & Johnson Pakistan (Pvt.) Ltd to officially launch Listerine® and make it a part of their already successful product line. Johnson & Johnson Pakistan (Pvt.) Ltd are doing a good business already, as the official subsidiary of Johnson & Johnson Corporation in Pakistan. J&J Pakistan imports most of the products in their product catalogue rather than manufacturing them in Pakistan. These imported goods are then handed over to distributors for distribution, and rest of the business activity is done by J&J Pakistan itself.
Listerine®, a Johnson & Johnson brand, is available in the Pakistani market through grey channels, and private importers are making it available to retail outlets as per market demand. The problem arises with the fact that since it’s not registered with the local drug authorities, no price check can be maintained resulting in inconsistent pricing, and charging of premium.
Through our research, we shall try to figure out if substantial business opportunity exists for Listerine® so that J&J Pakistan make it a part of their product line as one of the first registered mouthwash brands in Pakistan, to provide the consumers with: * Consistent Quality/Supply * Regulated Prices * BTL Promotions * Consumer Education regarding Oral Health
Aside from achieving the above mentioned goals; if J&J Pakistan decides to include Listerine® in their product line, it could also increase their annual sales turn-over and profitability.
Aims & Objectives
Our basic aims and objectives while conducting this research were to know if: * The target market is aware about oral health problems or not. If yes, then to what extent. * Is the target market for a mouthwash product of substantial size or not. * Is it feasible for J&J Pakistan to launch Listerine as a brand registered under their company’s name with the local authorities?
Literature Review
"Patients are always asking about whether they should be doing anything else to improve their dental health,"
Of brushing, rinsing with anti-bacterial mouthwash is more effective to prevent gingivitis and bad breath.
According to 2003 survey conducted the results showed that people are concerned about their oral hygiene so much so that almost out of 4, 3 of the adults brush their teeth twice a day along with the usage of mouthwash and floss. In order to improve the health of the public they are even planning to start reminding and guiding people about the mouthwashes, floss and pastes they think they know Furthermore, according to the article in American Journal of Dentistry suggested that in combination about and have a positive and effective impact.
Where the awareness of the mouthwashes has increased, the options and choices have increased as well. Listerine still being the market leader is the most well aware brand among the consumers according to the survey conducted. But people still don’t prefer to purchase it much because of its bad taste. And they prefer other brands over it. Another reason of not using Listerine is that in the international market Listerine with alcohol cause a dying effect and consumers find it hard to keep it in mouth for more than 15 seconds. So all those mouthwash containing alcohol are not demanded by the consumers and they prefer mouthwash with chlorine dioxide and fluoride over alcohol.
Year 1999-2002:
Listerine had thrived on its reputation as the brand that “kills the germs that cause bad breath.”
In the 1980s, however, it lost market leadership to Scope and private labels. People saw little difference (except for taste) between products. Compounding this, Listerine was seen as cold, old-fashioned, authoritarian, serious, and stuffy - a Margaret Thatcher. In the 1990s, there were many attempts at re-positioning, with little success. Listerine continued to falter, and a drastic overhaul was needed.
At the time, perceptions of oral health care were beginning to shift from something that was managed at the dentist, to something you could control at home. Mostly, this centred on maintaining healthy and strong teeth, and preventing cavities and plaque. This did not mean, however, that people were forgetting about their gums. In fact, when surveyed, the majority of them said that they would be very concerned if they had the symptoms of gum disease. As gum health began to enter people's consciousness, they looked for toothpastes with gum-health benefits, and brushes that twisted and spun. They also increasingly began to use floss.
A full 4 of 5 Canadians told us that they would be very or somewhat concerned if they had receding or swollen gums. Listerine had clinical trials to prove its effectiveness against gingivitis.
So healthy gums was a compelling and potentially own able benefit, But it wouldn't be easy. It wasn't just a question of changing perceptions about Listerine. We had to change deep-seated beliefs about mouthwashes as well.
Objective: Change what the brand stands for
The target was Therapy Seekers: adults (characteristically 25–39) who were optimistic about their health and wanted to take charge of it.
They were using toothpaste to keep their teeth strong and floss to minimize plaque.
Consumers have been trained to equate seriousness with therapeutic strength. How could we persuade people that we were a serious gingivitis medicine if the advertising was light hearted? The answer came from comic books. As every enthusiast knows, the action hero, while animated and fun, has superpowers that conquer evil.
Listerine® : The action hero for your gums.
Consumers were listening. Sales responded, and Listerine's “Helps fight Gingivitis” rating went from 44% to 78%. The next challenge was to become as essential to oral health care as the toothbrush.
BUSINESS RESULTS
1999 – 2002. Changing what the Brand Stood for.
Brand image
Ratings for “helps fight gingivitis” increased from 44% in 1999 to 78% in 2002. Other key measures of brand image were also significantly improved, while the corresponding Scope (the competitor) ratings all went down:
Brand impact
The usage and purchase intent ratings saw significant gains for Listerine between 1999 and 2002, while Scope saw declines.
Business results
Sales of Listerine grew 30% from $29.2 million in 1999 to $37.9 million in
2002.
Exhibit C. Listerine Sales Results (1999–2002)
Pricing
There were no significant price reductions between 1999 and 2002. Indeed, the difference between average regular and promotional pricing decreased during this period, from an average discount of $1.04 in 1999 to only $0.29 in 2002.
Year 2003-2005:
Objective: Change behaviour. Integrate Listerine into the daily oral health routine.
By 2003, Listerine's gingivitis reputation had been solidified. However, Listerine was still being used as an occasional remedy.
We needed to create urgency around gingivitis. Twice daily brushing was seen as the gold standard, and we had to shake up the perception that this keeps you safe from gingivitis. Listerine had to become part of the routine, but it was critical not to preach. So Toothbrush Guy joined the Action Hero to create:
The clean team = brush + Listerine
We also added powerful claims. * Listerine after brushing is just as effective as flossing for fighting gingivitis * Listerine after brushing eliminates more germs that cause gingivitis than brushing alone
2003 – 2005 Changing Usage.
Usage and attitudes
Listerine users reporting “at least once a day usage” increased from 59% in 2002 to 70% in 2005. Moreover, 66% of mouthwash users now agree that Listerine is part of their brushing routine.
Exhibit E. Listerine users reporting “at least once a day” usage (2002 & 2005)
Brand Image:
While commitment to the routine increased, the campaign also continued to reinforce brand image perceptions for Listerine.
Brand Impact:
Brand impact also showed sustained gains for Listerine while Scope continued to suffer.
Business Results
Sales grew an additional 29% from $39.8 million in 2003 to $51.2 million in 2005 – an increase of over 75%.
Research Problem & Hypothesis
Marketing Research Problem
Determining if the target segment is of substantial size and their buying behavior?
Research Questions & Hypothesis
RQ1: Is there awareness about Oral Hygiene among potential consumers?
H1: Majority of the consumers are aware about oral hygiene at the very basic level.
H2: Consumers are well aware about oral hygiene and have a proactive approach towards oral health.
H3: Consumers have adequate awareness about Oral Hygiene and don't think of it as a serious issue.
RQ2: How do consumers deal with oral health problems?
H1: They regularly consult a dentist.
H2: They see a dentist for a problem and discontinue medication after the remedy.
H3: Oral health problems are taken casually.
RQ3: Does a significant market exist for mouthwash category?
H1: The Pakistani Mouthwash market is yet un-tapped and has growth potential.
H2: The target segment is already educated and uses mouthwash regularly.
RQ4: What purpose does mouthwash fulfill for its consumers?
H1: It is used for fresher breath, targeting self expression.
H2: It is used for medical reasons, targeting oral health.
H3: It is used for its’ anti-bacterial properties, targeting Oral Hygiene.
Methodology
For our research, we had to interview the target market as well as their favorite trade outlets. Hence we divided our research into two main components: * Consumer Study * Retailer Study
Consumer Study
In our consumer study, we prepared a formal questionnaire and got it filled from 25 members of our target market residing in F-8/4, Bahria Town, and Sector G-10. An online copy of the questionnaire was also made and 19 responses were received from people belonging to our target market (Socio Economic Class A and A+).
The responses were got from a mix of both the genders, belonging to two major age groups, 19-28 and 45-58 years.
Retailer Study
We went to the retailers and talked to them in-formally and noted down the prices for major mouthwash brands available. We also discussed what factors impacted sales and how. What brands were top sellers and why.
Analysis
Consumer Survey
Our target market for research is upper middle and upper class living in Islamabad/Rawalpindi. Through the research conducted, we have come across the fact that people of Islamabad and Rawalpindi are well aware and concerned about the oral hygiene.
We started off by asking a simple question as to how important was oral health to the respondents. A majority (62%) said that oral health was extremely important to them while another 17% said it was important. It was interesting to find that even in the SEC A category, an accumulated 15% (11% least important and 4% not so important) did not think of oral health to be an important issue.
All the respondents (100%) reported that they brushed their teeth. The above pie-chart shows the percentage of people who only rely on brushing during their daily oral care activity. 58% people from our target market rely on brushing alone, while another 34% use mouthwash. A meager 8% of the respondents said that they flossed their teeth as well.
In a response to this question, 63% of the respondents said that they had experienced a serious dental problem at least once in their life contrary to the 37% who had never experienced any sort of oral health problem. This justifies the need of educating the consumer about oral health.
In response to this question, consumer told us that 41% of them try to improve their brushing habits in order to get rid of the dental problem. Whereas, 38% of them prefer to go and consult a doctor followed by 21% of those who doesn’t do anything but wait till the time it heal itself. This shows that with the increase in their brushing habits consumer should be educated on the point that with brushing use of a mouthwash is equally important and effective.
55% of the surveyed consumers only visit their respective doctors only when there is a serious problem followed by 21% of those who has never visited them. Other than this, there are consumers who prefer to go to a doctor once yearly or monthly. This shows that people mostly stay back and wait till the time problem heal itself or even if they visit their doctors they do it for extra care of to resolve some serious problem.
The surveyed consumers have different reasons of using their mouthwash. 43% of them use it to kill bacteria whereas, 37% of them use it to remove bad breath. Thus, this shows that people are aware of an accurate usage of a mouthwash.
In response to this question, Consumers were able to recall quite a few brands. 65% of them recalled Listerine easily followed 26% Colgate. This shows that Listerine being a market leader locally and globally is more easily recalled by the consumers.
Listerine is the most used mouthwash told by the respondents 52% of them uses it. This is followed by 13% usage of Colgate. The usage of Listerine has decreased with time as people doesn’t like its flavor and now prefer other brands over it.
Consumers think that the usage of a mouthwash has a significant impact on their Oral Health contrary to those that the impact is merely noticeable. This shows that people are aware of the benefits of the mouthwash. They are just need to be more educated in order to make them use it regularly. As mouthwash is a Oral Health care product most of the consumers(61%) prefer to buy it from the local chemist followed by those who purchase it from nearby market. Thus, J&J should make it sure that their product is easily available at the local chemist.
62% of the respondents had used Listerine at least once on their life.
Out of all those respondents who used Listerine, majority of the consumers thought that Listerine tasted OK and a similar majority said that it tasted pretty good. Only a few thought that it tasted really bad contrary to popular belief
When asked how knowledgeable they were about oral care, most of the people said that they had an average knowledge about oral care and dental problems. Only a few of our respondents claimed to have a less than adequate knowledge about oral care problems.
The most desired attribute consumers look for, in a mouthwash product is the flavor, followed by its effectiveness in killing germs and removing bad breath; the primary reasons for use of a mouthwash.
Majority of the well informed population thought of the origin of the product unimportant as far as the product was original, while the second majority stated that the origin mattered a lot. This is a mixed response and J&J Pakistan should look into this carefully while selecting an import source.
Clearly Listerine is the category leader, and most people look for a brand name while making a mouthwash purchase. The second most important attribute is flavor and J&J Pakistan should ensure availability of all the flavors including the ‘mild’ ones which don’t hurt that much !
Most people said that the mouthwash market needed more/better products. Once consumer went as far as saying:
“We need more awareness awareness about the oral care and as long as better products are introduced, we need innovation within the market”
(See exhibit 1 for quote)
Another consumer said
“Yes I do think that mouthwash serves the purpose of oral health which is vital also bad breath causes distress for other people so mouthwash not only helps the person using it but also the peers around him”
And
“Yes, but people need to be educated fgirst”
Retailer Survey
Survey was conducted in Islamabad/Rawalpindi. During the survey, a criterion of selecting a target respondent was divided in terms of supermarkets and key general stores. All respondents were either owner or manager of large general & medical store and/or chemist.
It was noted during the shelf display & availability study that most of the brands available were registered, however some imported brands has significant higher preference as compared to local brands. These brands are generally available to the modern trade through unofficial channels and therefore carry a variance in their prices. One of the most interesting examples was for Listerine mouthwash. The product was available in two different packaging. One was found to be registered with local drug authorities and the other was not registered, but fetched a higher price.
Similarly, it was also found that unregistered products were sold at a premium, as they do not have any price control from the drug authorities. The disadvantage is that they are available to the retailer and then to consumer not regularly. Brand | Avg. Price PKR/Unit | Listrine (Imported) | 150 | Niflam | 64 | Enziclor | 93 | Listrine (Local) | 28 | Clinica | 68 | Prodent | 72 | Protect | 42 | Oral B | 180 |
An average of 12 units is sold for each mouthwash brand on a weekly basis.
Minimum and maximum weekly sale of top 8 brands are illustrated in the following figure. Almost four top brands i.e. Listerine importer, Niflam, Enziclor and Listerine local has above average maximum weekly sales.
Growing demand for mouth fresheners
Since the soft launch of mouth fresheners / fresh breaths products in the market the demand for mouthwash has also increased. Many people consider mouthwash as a fresh breath agent due to its long after effect in the mouth. Mouthwash is considered to be an addition to the toothpaste by a majority of customers.
Consumer Perceptions about mouthwash
Mouthwash is considered to be an expensive proposition in terms of its daily usage. The quality of the product is judged by its price and the brand. It is a general perception that imported products are better than the local products.
Brand Preference (By Trade)
The most preferred brands identified by the trade are Listerine (imported & local), Enziclor, and Prodent. Listerine imported stands at the top. Data reveals that total preference of Listerine product is about 35 percent. However, due to availability of Listerine imported product the preference of local Listerine becomes the second priority.
One of the main reasons for retailer’s preference for the brand is shelf off take, followed by the regular supplies of the product. The price of the product stands at number three in terms of reason for preference. It was found that Listerine imported was preferred for its attractive packaging and doctors’ recommendations, in addition to the shelf off take and regular supplies, whereas, Listerine local was preferred for its attractive price and doctors’ recommendations, again in addition to the shelf off take and regular supplies. On further probing into the matter, it was revealed that doctor recommends Listerine as one of the most preferred product, however at the point of purchase the decision of selecting imported vs. local depends upon the customer and/or retailer’s opinion
Conclusion & Suggestions
After going through the secondary data, and carefully analyzing our own research, we have come to a conclusion that: * Listerine has been, and still is, the leading mouthwash brand globally. * The Pakistani consumer cares about his oral health, and would be accepting any change that is brought to ensure better oral health. * This has been revealed through the questions that we have asked our research sample that the Pakistani consumer is very careful about his oral health. If awareness could be increased among them, the potential market could grow further. * The target segment in Pakistani market is knowledgeable, yet more awareness regarding oral care needs to be created. * BTL campaigns in schools could help J&J grab the market share. School children, when grown up in 7-10 years, would have Listerine as a complete oral care remedy in the back of their heads and would then become brand loyal customers. * Listerine is the category leader in the Pakistani market with the maximum share of heart and share of mind. * Listerine is also the most sold brand, even the product that is available through the grey market, makes the bulk of the sales at the modern trade outlets. * If J&J markets Listerine itself, it could ensure greater sales, and a greater share of mind and share of heart among the consumers. * Controlled prices and ensured availability of a registered product could ensure Listerine’s position as the market leader. With the unavailability of registered competition, Listerine can capitalize on the un-tapped mouthwash market in Pakistan. * Our survey showed that consumers want brands that are being marketed through reliable sources, hence if J&J markets its own product itself, it would create a level of satisfaction amongst the consumers that the competition hasn’t been able to create as yet.
After all that has been said, our group would like to suggest Johnson & Johnson Pakistan (Pvt.) Ltd. that: * It is safe for J&J to launch Listerine in Pakistan. * If J&J decides to launch Listerine in Pakistan, they would be better off if they launch awareness campaigns parallel to the product launch. * J&J has an advantage with the Alcohol Free® Listerine®, market with a religious inclination could be catered with this brand. Hence J&J should not miss out on this while launching Listerine. * Listerine should be launched with all the flavors available in the international market to ensure that the taste/flavor conscious consumer is catered.
Appendices:
--------------------------------------------
[ 2 ]. Part1: http://www.surveymonkey.com/s/S5VPHNR
Part 2: http://www.surveymonkey.com/s/S5DMPT9
Table of Contents Final Project Report 2 Project Title 2 Introduction 2 Company Profile 2 Project Orientation 2 Purpose of Study 3 Aims & Objectives 3 Literature Review 4 Research Problem & Hypothesis 9 Marketing Research Problem 9 Research Questions & Hypothesis 9 Methodology 10 Consumer Study 10 Retailer Study Analysis 11 Consumer Survey 11 Retailer Survey 20 Growing demand for mouth fresheners 21 Consumer Perceptions about mouthwash 21 Brand Preference (By Trade) 22 Conclusion & Suggestions 23 Appendices: 24
Listerine
Final Project Report
Project Title
“Scouting market potential for Listerine® in the Pakistani …show more content…
market with emphasis on the Rawalpindi/Islamabad market”
Introduction
Company Profile
Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment provides products used in baby care, skin care, oral care, wound care, and women’s health care fields, as well as nutritional, over-the-counter pharmaceutical products, and wellness and prevention platforms under the names JOHNSON’S, AVEENO, CLEAN & CLEAR, JOHNSON’S Adult, NEUTROGENA, RoC, LUBRIDERM, Dabao, Vendome, LISTERINE®, REACH, BAND-AID, PURELL, CAREFREE, STAYFREE, SPLENDA, TYLENOL, SUDAFED, ZYRTEC, MOTRIN IB, and PEPCID AC.
It's nearly impossible to get well without Johnson & Johnson (J&J). The diversified health care giant operates in three segments through more than 250 operating companies located in some 60 countries. Its Pharmaceuticals division makes drugs for an array of ailments, such as neurological conditions, blood disorders, autoimmune diseases, and pain. Top sellers are psoriasis drug Remicade and schizophrenia medication Risperdal. J&J's Medical Devices and Diagnostics division offers surgical equipment, monitoring devices, orthopedic products, and contact lenses, among other things.
Project Orientation
Our report’s brief sequential order is as follows:
• First of all we’ve studied what Johnson & Johnson is all about, their products, services and company credo.
• The second section relates to the literature study done on our subject matter. For this we’ve taken help from the internet, as well as case studies from IPA (Institute of Practitioners in Advertising, UK)
• We then state our research questions and hypothesis formed from them. The components of the marketing research problem derived from the hypothesis are also included.
• Our methodology to go about the research at hand is discussed.
• The analysis of primary data is included in our report.
• The last section includes the conclusion and recommendations to Johnson & Johnson Pakistan (Pvt.) Ltd regarding the official launch of Listerine ® in Pakistan.
Purpose of Study
Our research is focused mainly on finding whether or not a substantial market exists for mouthwash products in Pakistan, and if it’s feasible for Johnson & Johnson Pakistan (Pvt.) Ltd to officially launch Listerine® and make it a part of their already successful product line. Johnson & Johnson Pakistan (Pvt.) Ltd are doing a good business already, as the official subsidiary of Johnson & Johnson Corporation in Pakistan. J&J Pakistan imports most of the products in their product catalogue rather than manufacturing them in Pakistan. These imported goods are then handed over to distributors for distribution, and rest of the business activity is done by J&J Pakistan itself.
Listerine®, a Johnson & Johnson brand, is available in the Pakistani market through grey channels, and private importers are making it available to retail outlets as per market demand. The problem arises with the fact that since it’s not registered with the local drug authorities, no price check can be maintained resulting in inconsistent pricing, and charging of premium.
Through our research, we shall try to figure out if substantial business opportunity exists for Listerine® so that J&J Pakistan make it a part of their product line as one of the first registered mouthwash brands in Pakistan, to provide the consumers with: * Consistent Quality/Supply * Regulated Prices * BTL Promotions * Consumer Education regarding Oral Health
Aside from achieving the above mentioned goals; if J&J Pakistan decides to include Listerine® in their product line, it could also increase their annual sales turn-over and profitability.
Aims & Objectives
Our basic aims and objectives while conducting this research were to know if: * The target market is aware about oral health problems or not. If yes, then to what extent. * Is the target market for a mouthwash product of substantial size or not. * Is it feasible for J&J Pakistan to launch Listerine as a brand registered under their company’s name with the local authorities?
Literature Review
"Patients are always asking about whether they should be doing anything else to improve their dental health,"
Of brushing, rinsing with anti-bacterial mouthwash is more effective to prevent gingivitis and bad breath.
According to 2003 survey conducted the results showed that people are concerned about their oral hygiene so much so that almost out of 4, 3 of the adults brush their teeth twice a day along with the usage of mouthwash and floss. In order to improve the health of the public they are even planning to start reminding and guiding people about the mouthwashes, floss and pastes they think they know Furthermore, according to the article in American Journal of Dentistry suggested that in combination about and have a positive and effective impact.
Where the awareness of the mouthwashes has increased, the options and choices have increased as well. Listerine still being the market leader is the most well aware brand among the consumers according to the survey conducted. But people still don’t prefer to purchase it much because of its bad taste. And they prefer other brands over it. Another reason of not using Listerine is that in the international market Listerine with alcohol cause a dying effect and consumers find it hard to keep it in mouth for more than 15 seconds. So all those mouthwash containing alcohol are not demanded by the consumers and they prefer mouthwash with chlorine dioxide and fluoride over alcohol.
Year 1999-2002:
Listerine had thrived on its reputation as the brand that “kills the germs that cause bad breath.”
In the 1980s, however, it lost market leadership to Scope and private labels. People saw little difference (except for taste) between products. Compounding this, Listerine was seen as cold, old-fashioned, authoritarian, serious, and stuffy - a Margaret Thatcher. In the 1990s, there were many attempts at re-positioning, with little success. Listerine continued to falter, and a drastic overhaul was needed.
At the time, perceptions of oral health care were beginning to shift from something that was managed at the dentist, to something you could control at home. Mostly, this centred on maintaining healthy and strong teeth, and preventing cavities and plaque. This did not mean, however, that people were forgetting about their gums. In fact, when surveyed, the majority of them said that they would be very concerned if they had the symptoms of gum disease. As gum health began to enter people's consciousness, they looked for toothpastes with gum-health benefits, and brushes that twisted and spun. They also increasingly began to use floss.
A full 4 of 5 Canadians told us that they would be very or somewhat concerned if they had receding or swollen gums. Listerine had clinical trials to prove its effectiveness against gingivitis.
So healthy gums was a compelling and potentially own able benefit, But it wouldn't be easy. It wasn't just a question of changing perceptions about Listerine. We had to change deep-seated beliefs about mouthwashes as well.
Objective: Change what the brand stands for
The target was Therapy Seekers: adults (characteristically 25–39) who were optimistic about their health and wanted to take charge of it.
They were using toothpaste to keep their teeth strong and floss to minimize plaque.
Consumers have been trained to equate seriousness with therapeutic strength. How could we persuade people that we were a serious gingivitis medicine if the advertising was light hearted? The answer came from comic books. As every enthusiast knows, the action hero, while animated and fun, has superpowers that conquer evil.
Listerine® : The action hero for your gums.
Consumers were listening. Sales responded, and Listerine's “Helps fight Gingivitis” rating went from 44% to 78%. The next challenge was to become as essential to oral health care as the toothbrush.
BUSINESS RESULTS
1999 – 2002. Changing what the Brand Stood for.
Brand image
Ratings for “helps fight gingivitis” increased from 44% in 1999 to 78% in 2002. Other key measures of brand image were also significantly improved, while the corresponding Scope (the competitor) ratings all went down:
Brand impact
The usage and purchase intent ratings saw significant gains for Listerine between 1999 and 2002, while Scope saw declines.
Business results
Sales of Listerine grew 30% from $29.2 million in 1999 to $37.9 million in
2002.
Exhibit C. Listerine Sales Results (1999–2002)
Pricing
There were no significant price reductions between 1999 and 2002. Indeed, the difference between average regular and promotional pricing decreased during this period, from an average discount of $1.04 in 1999 to only $0.29 in 2002.
Year 2003-2005:
Objective: Change behaviour. Integrate Listerine into the daily oral health routine.
By 2003, Listerine's gingivitis reputation had been solidified. However, Listerine was still being used as an occasional remedy.
We needed to create urgency around gingivitis. Twice daily brushing was seen as the gold standard, and we had to shake up the perception that this keeps you safe from gingivitis. Listerine had to become part of the routine, but it was critical not to preach. So Toothbrush Guy joined the Action Hero to create:
The clean team = brush + Listerine
We also added powerful claims. * Listerine after brushing is just as effective as flossing for fighting gingivitis * Listerine after brushing eliminates more germs that cause gingivitis than brushing alone
2003 – 2005 Changing Usage.
Usage and attitudes
Listerine users reporting “at least once a day usage” increased from 59% in 2002 to 70% in 2005. Moreover, 66% of mouthwash users now agree that Listerine is part of their brushing routine.
Exhibit E. Listerine users reporting “at least once a day” usage (2002 & 2005)
Brand Image:
While commitment to the routine increased, the campaign also continued to reinforce brand image perceptions for Listerine.
Brand Impact:
Brand impact also showed sustained gains for Listerine while Scope continued to suffer.
Business Results
Sales grew an additional 29% from $39.8 million in 2003 to $51.2 million in 2005 – an increase of over 75%.
Research Problem & Hypothesis
Marketing Research Problem
Determining if the target segment is of substantial size and their buying behavior?
Research Questions & Hypothesis
RQ1: Is there awareness about Oral Hygiene among potential consumers?
H1: Majority of the consumers are aware about oral hygiene at the very basic level.
H2: Consumers are well aware about oral hygiene and have a proactive approach towards oral health.
H3: Consumers have adequate awareness about Oral Hygiene and don't think of it as a serious issue.
RQ2: How do consumers deal with oral health problems?
H1: They regularly consult a dentist.
H2: They see a dentist for a problem and discontinue medication after the remedy.
H3: Oral health problems are taken casually.
RQ3: Does a significant market exist for mouthwash category?
H1: The Pakistani Mouthwash market is yet un-tapped and has growth potential.
H2: The target segment is already educated and uses mouthwash regularly.
RQ4: What purpose does mouthwash fulfill for its consumers?
H1: It is used for fresher breath, targeting self expression.
H2: It is used for medical reasons, targeting oral health.
H3: It is used for its’ anti-bacterial properties, targeting Oral Hygiene.
Methodology
For our research, we had to interview the target market as well as their favorite trade outlets. Hence we divided our research into two main components: * Consumer Study * Retailer Study
Consumer Study
In our consumer study, we prepared a formal questionnaire and got it filled from 25 members of our target market residing in F-8/4, Bahria Town, and Sector G-10. An online copy of the questionnaire was also made and 19 responses were received from people belonging to our target market (Socio Economic Class A and A+).
The responses were got from a mix of both the genders, belonging to two major age groups, 19-28 and 45-58 years.
Retailer Study
We went to the retailers and talked to them in-formally and noted down the prices for major mouthwash brands available. We also discussed what factors impacted sales and how. What brands were top sellers and why.
Analysis
Consumer Survey
Our target market for research is upper middle and upper class living in Islamabad/Rawalpindi. Through the research conducted, we have come across the fact that people of Islamabad and Rawalpindi are well aware and concerned about the oral hygiene.
We started off by asking a simple question as to how important was oral health to the respondents. A majority (62%) said that oral health was extremely important to them while another 17% said it was important. It was interesting to find that even in the SEC A category, an accumulated 15% (11% least important and 4% not so important) did not think of oral health to be an important issue.
All the respondents (100%) reported that they brushed their teeth. The above pie-chart shows the percentage of people who only rely on brushing during their daily oral care activity. 58% people from our target market rely on brushing alone, while another 34% use mouthwash. A meager 8% of the respondents said that they flossed their teeth as well.
In a response to this question, 63% of the respondents said that they had experienced a serious dental problem at least once in their life contrary to the 37% who had never experienced any sort of oral health problem. This justifies the need of educating the consumer about oral health.
In response to this question, consumer told us that 41% of them try to improve their brushing habits in order to get rid of the dental problem. Whereas, 38% of them prefer to go and consult a doctor followed by 21% of those who doesn’t do anything but wait till the time it heal itself. This shows that with the increase in their brushing habits consumer should be educated on the point that with brushing use of a mouthwash is equally important and effective.
55% of the surveyed consumers only visit their respective doctors only when there is a serious problem followed by 21% of those who has never visited them. Other than this, there are consumers who prefer to go to a doctor once yearly or monthly. This shows that people mostly stay back and wait till the time problem heal itself or even if they visit their doctors they do it for extra care of to resolve some serious problem.
The surveyed consumers have different reasons of using their mouthwash. 43% of them use it to kill bacteria whereas, 37% of them use it to remove bad breath. Thus, this shows that people are aware of an accurate usage of a mouthwash.
In response to this question, Consumers were able to recall quite a few brands. 65% of them recalled Listerine easily followed 26% Colgate. This shows that Listerine being a market leader locally and globally is more easily recalled by the consumers.
Listerine is the most used mouthwash told by the respondents 52% of them uses it. This is followed by 13% usage of Colgate. The usage of Listerine has decreased with time as people doesn’t like its flavor and now prefer other brands over it.
Consumers think that the usage of a mouthwash has a significant impact on their Oral Health contrary to those that the impact is merely noticeable. This shows that people are aware of the benefits of the mouthwash. They are just need to be more educated in order to make them use it regularly. As mouthwash is a Oral Health care product most of the consumers(61%) prefer to buy it from the local chemist followed by those who purchase it from nearby market. Thus, J&J should make it sure that their product is easily available at the local chemist.
62% of the respondents had used Listerine at least once on their life.
Out of all those respondents who used Listerine, majority of the consumers thought that Listerine tasted OK and a similar majority said that it tasted pretty good. Only a few thought that it tasted really bad contrary to popular belief
When asked how knowledgeable they were about oral care, most of the people said that they had an average knowledge about oral care and dental problems. Only a few of our respondents claimed to have a less than adequate knowledge about oral care problems.
The most desired attribute consumers look for, in a mouthwash product is the flavor, followed by its effectiveness in killing germs and removing bad breath; the primary reasons for use of a mouthwash.
Majority of the well informed population thought of the origin of the product unimportant as far as the product was original, while the second majority stated that the origin mattered a lot. This is a mixed response and J&J Pakistan should look into this carefully while selecting an import source.
Clearly Listerine is the category leader, and most people look for a brand name while making a mouthwash purchase. The second most important attribute is flavor and J&J Pakistan should ensure availability of all the flavors including the ‘mild’ ones which don’t hurt that much !
Most people said that the mouthwash market needed more/better products. Once consumer went as far as saying:
“We need more awareness awareness about the oral care and as long as better products are introduced, we need innovation within the market”
(See exhibit 1 for quote)
Another consumer said
“Yes I do think that mouthwash serves the purpose of oral health which is vital also bad breath causes distress for other people so mouthwash not only helps the person using it but also the peers around him”
And
“Yes, but people need to be educated fgirst”
Retailer Survey
Survey was conducted in Islamabad/Rawalpindi. During the survey, a criterion of selecting a target respondent was divided in terms of supermarkets and key general stores. All respondents were either owner or manager of large general & medical store and/or chemist.
It was noted during the shelf display & availability study that most of the brands available were registered, however some imported brands has significant higher preference as compared to local brands. These brands are generally available to the modern trade through unofficial channels and therefore carry a variance in their prices. One of the most interesting examples was for Listerine mouthwash. The product was available in two different packaging. One was found to be registered with local drug authorities and the other was not registered, but fetched a higher price.
Similarly, it was also found that unregistered products were sold at a premium, as they do not have any price control from the drug authorities. The disadvantage is that they are available to the retailer and then to consumer not regularly. Brand | Avg. Price PKR/Unit | Listrine (Imported) | 150 | Niflam | 64 | Enziclor | 93 | Listrine (Local) | 28 | Clinica | 68 | Prodent | 72 | Protect | 42 | Oral B | 180 |
An average of 12 units is sold for each mouthwash brand on a weekly basis.
Minimum and maximum weekly sale of top 8 brands are illustrated in the following figure. Almost four top brands i.e. Listerine importer, Niflam, Enziclor and Listerine local has above average maximum weekly sales.
Growing demand for mouth fresheners
Since the soft launch of mouth fresheners / fresh breaths products in the market the demand for mouthwash has also increased. Many people consider mouthwash as a fresh breath agent due to its long after effect in the mouth. Mouthwash is considered to be an addition to the toothpaste by a majority of customers.
Consumer Perceptions about mouthwash
Mouthwash is considered to be an expensive proposition in terms of its daily usage. The quality of the product is judged by its price and the brand. It is a general perception that imported products are better than the local products.
Brand Preference (By Trade)
The most preferred brands identified by the trade are Listerine (imported & local), Enziclor, and Prodent. Listerine imported stands at the top. Data reveals that total preference of Listerine product is about 35 percent. However, due to availability of Listerine imported product the preference of local Listerine becomes the second priority.
One of the main reasons for retailer’s preference for the brand is shelf off take, followed by the regular supplies of the product. The price of the product stands at number three in terms of reason for preference. It was found that Listerine imported was preferred for its attractive packaging and doctors’ recommendations, in addition to the shelf off take and regular supplies, whereas, Listerine local was preferred for its attractive price and doctors’ recommendations, again in addition to the shelf off take and regular supplies. On further probing into the matter, it was revealed that doctor recommends Listerine as one of the most preferred product, however at the point of purchase the decision of selecting imported vs. local depends upon the customer and/or retailer’s opinion
Conclusion & Suggestions
After going through the secondary data, and carefully analyzing our own research, we have come to a conclusion that: * Listerine has been, and still is, the leading mouthwash brand globally. * The Pakistani consumer cares about his oral health, and would be accepting any change that is brought to ensure better oral health. * This has been revealed through the questions that we have asked our research sample that the Pakistani consumer is very careful about his oral health. If awareness could be increased among them, the potential market could grow further. * The target segment in Pakistani market is knowledgeable, yet more awareness regarding oral care needs to be created. * BTL campaigns in schools could help J&J grab the market share. School children, when grown up in 7-10 years, would have Listerine as a complete oral care remedy in the back of their heads and would then become brand loyal customers. * Listerine is the category leader in the Pakistani market with the maximum share of heart and share of mind. * Listerine is also the most sold brand, even the product that is available through the grey market, makes the bulk of the sales at the modern trade outlets. * If J&J markets Listerine itself, it could ensure greater sales, and a greater share of mind and share of heart among the consumers. * Controlled prices and ensured availability of a registered product could ensure Listerine’s position as the market leader. With the unavailability of registered competition, Listerine can capitalize on the un-tapped mouthwash market in Pakistan. * Our survey showed that consumers want brands that are being marketed through reliable sources, hence if J&J markets its own product itself, it would create a level of satisfaction amongst the consumers that the competition hasn’t been able to create as yet.
After all that has been said, our group would like to suggest Johnson & Johnson Pakistan (Pvt.) Ltd. that: * It is safe for J&J to launch Listerine in Pakistan. * If J&J decides to launch Listerine in Pakistan, they would be better off if they launch awareness campaigns parallel to the product launch. * J&J has an advantage with the Alcohol Free® Listerine®, market with a religious inclination could be catered with this brand. Hence J&J should not miss out on this while launching Listerine. * Listerine should be launched with all the flavors available in the international market to ensure that the taste/flavor conscious consumer is catered.
Appendices:
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[ 2 ]. Part1: http://www.surveymonkey.com/s/S5VPHNR
Part 2: http://www.surveymonkey.com/s/S5DMPT9