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After identifying the definition of the Market segmentation, the author has discussed on the characteristics of market segmentation in the toothpaste market. Author has introduced the toothpaste market in Sri Lanka and segmented the toothpaste market accordingly. In elaborating the segmentation in the toothpaste market the author has selected the Unilever company. Unilever company produces the most successful toothpaste brand in Sri lanka, “SIGNAL”. Author has mentioned the segmentation of SIGNAl toothpaste and discussed it characteristics individually. Finally author has explained the role that the HR department of the Unilever organization has to playto upgrade the standards of the Marketing department. Oral care is a highly practicing health habit in all over the world. In Sri Lanka it may have once been a narrow market segment but today it represents a flourishing sector with several sub segments. It has a high degree of penetration with in the country through tooth paste and tooth powder. There are channel for products that address gum diseases, cavities, plaque and tartar build up, sensitive teeth and even a condition known as dry mouth. At the same time there is another segment which represents fresh breath and white teeth. When oral care was essentially a habit of keeping teeth white, toothpowder preceded toothpaste for centuries. Toothpaste and toothpowder have a combined household penetration in Sri Lanka of 89%. In 2005, Lanka Market Research Bureau (LMRB) estimated this market to be worth Rs. 2.5 billion. With an annual volume of approximately 4,500 metric tonnes, toothpaste accounts for marginally over Two billion rupees. The market is dominated by two brands: Signal with a volume share of 53% marketed by Unilever Sri Lanka and Clogard with 33% volume share marketed by Hemas. The other significant brand is Supiriviky, a local Ayurvedic toothpaste from Sidhalepa with an 8% share volume in the market.
Segments of Toothpaste market in Sri Lanka
What is market segmentation? According to the most of pundits of marketing subject, market segmentation is; Grouping people according to their similarity related to a particular product category. Market segmentation is the process of dividing a market into 2 or more segments with each having specifics needs and characteristics and who will need specific products or marketing mix. For a market to be broken up into these different segments different segmentation variables must either be used individually or in combination. (Kotler et al.2006,217) Major characteristics of market segmentation are: • • • Age Gender Geographic location
Demographic Segmentation Demographic segmentation consists of dividing the market into groups based on variables such as age. . Clogard with 33% and Supiriviki with 8%. gender family size.• • • • • • Income Spending patterns Cultural background Demographics Education Language Four main Segmentations As we mentioned previously Signal plays the major role in toothpaste market with the share of 53%. occupation. According to the theoretical aspects we look in to the toothpaste market segments in Sri Lanka. religion. income. education.
But if you have a good income with a small family. signal provide toothpaste for both adults and children. Psychographic Segmentation This will mainly focus on the lifestyle of the consumer. In Sri Lanka there are different types of toothpaste brands varies according to the age. . Colgate.Gender segmentation is widely used in consumer marketing. For an example low priced sachet packet to Highly priced Salvony or Perriot. Examples include toothpaste sachet packets for low income people. The author has discussed toothpaste industry according to the characteristics of demographic segmentation. By contrast.Many companies target affluent consumers with luxury goods and convenience services. There are brands for children and adults.25 to Rs. If you have a large family and your income is not stable. There are many different lifestyle categorisation systems. So Marketers design. Gender . Signal whitening is an adult brand. For an example. the buyer will go for cheap product that he can afford.race and nationality. they will go for higher priced products. For an example. many companies focus on marketing products that appeal directly to consumers with relatively low incomes. Age . Religion and Ethnic Groups – this will not highly affect the toothpaste market. Family Size – this also will affect the buying pattern of toothpaste. package and promote products differently to meet the wants of different age groups. since there are no flavours added from animals or alcohol.1200 a packet. Also. demographic segmentation variables are amongst the most popular bases for segmenting customer groups. there is often much more data available to help with the demographic segmentation process. Marketers are increasingly interested in the effect of consumer "lifestyles" on demand. The best examples include clothing.Consumer needs and wants change with age although they may still wish to consume the same types of product. hairdressing. for practical reasons. In Sri Lanka there are toothpaste pricing from Rs. This is partly because customer wants are closely linked to variables such as income and age. Pink colour toothpaste packaging for ladies while blue goes for males. magazines and toiletries and cosmetics. Income . Good examples include the marketing of toothpaste contrast the branding of toothpaste for children and adults. As you might expect. many of them designed by advertising and marketing agencies as a way of winning new marketing clients and campaigns. Kodomo is a very famous toothpaste brand for children in Sri Lanka. In Sri Lanka the toothpaste marketers have gone to the extent of changing the colour of the packaging according to the gender.
states. to a tooth whitener. regions. Region – North Central province of Sri Lanka is known to have more calcium in the waters. each of which will appeal to a different audience segment. localizing the products. So the toothpaste brands which market to this province are low calcium based. such as nations. Marketers use this thinking to market their products. it is called geographic segmentation. you have to lessen the mint flavor in cool climate regions such as Nuwara Eliya since it will affect the temperature of the toothpaste and give coldness in the mouth. By segmenting the audience according to these benefits through the copywriting. If the product is a fast sports car. Geographic Segmentation If the market segmentation is based on geographic units. cities. Marketers will tailor marketing programs to fit the needs of individual geographic areas. There are different audiences for different perceived benefits. As per the dictionary of marketing terms. Climate – eventhough you can use more mint flavoured toothpaste in the dry climate regions. the flavours of toothpaste differs. Benefit Segmentation Method of determining a target audience for a particular product in terms of those people who want the benefits the product offers. counties. Country – According to the taste pallets of the different nationalities. and sales effort to geographic differences in needs and wants. As an example: toothpaste offers three distinct benefits. the second. Geographic segmentation can be a very important process. to a mouth freshener. for example. geographic segmentation definition is as follows: Market segmentation strategy whereby the intended audience for a given product is divided according to geographic units. They change their oral care products from cheap to expensive. City Size – According to the size of the city the market size varies. Personality – consumers believe that if they buy high priced quality products it will improve their personality in the society. the advertiser can position the product in three different markets to achieve maximum advertising effectiveness .Self-Image – when people are stable with their income and get a high income they try to build their image by changing their day to day consumer products. the target audience will be the segment of the population that wants the benefits of good quality toothpaste. especially for multinational businesses with global brands. and the third. or neighborhoods. advertising. One benefit relates to a tooth decay deterrent.
the Oral Care expert Has been trusted by generations Has a variant for various Oral need states Endorsed by FDI ( the largest dental association globally) Endorsed by SLDA (Sri Lankan Dental Association) Winner of the Guinness Book of World Records Recipient of the Brand Icon Award in 2004 Signal Whitening guarantees whiter teeth in 4 weeks Signal guarantees strong healthy teeth . It’s aim was to spread the warmth and beauty of our Sri Lankan smile to the world and enhance Sri Lanka’s image as the world’s friendliest nation. For the past 24 years. Signal Oral Health Service (SOHS) has been active in Sri Lanka and has been an integral part of Signal’s mission to promoting good oral health awareness. In 2005 Signal launched its newest initiative.Segmentation of Signal Toothpaste Signal has been the iconic oral care brand in Sri Lanka leading the way for innovations and activations. It guarantees you strong healthy teeth and brings out a smile in each individual. Signal is indeed the oral care expert that can bring a smile to everyone's face. Signal Sina Bo Wewa campaign. Benefit Segmentation of Signal Toothpaste • • • • • • • • • Sri Lanka's largest Oral Care brand . This campaign won a Guiness Book of World Records. Signal had been instilling good oral hygiene habits to the people of Sri Lanka giving them the confidence to smile since 1982. Signal offers a wide range of variants in it's toothpaste and toothbrush portfolio to suit all needs. It was also won the Brand Icon Award in 2004. the SOHS has been providing free dental check-ups sampling of toothpaste and toothbrushes to preschool and primary schools and conducting large scale community based oral health camps.
For an example Signal sachet packets to Signal whitening. Family Size . If you have a large family and your income is not stable. Signal Strong Teeth.Signal Toothpaste • • • • Signal Core .For strong healthy teeth Signal Herbal . For an example.– this also will affect the buying pattern of toothpaste. the buyer will go for cheap product that he can afford. Pink colours for ladies and blue colours for gents. Gender. .Signal has produced different products according to the gender.Cooling relief from inner heat (For healthy teeth & gums) Signal Whitening . they will go for higher priced products. But if you have a good income with a small family.For strong white teeth Signal Triple Action . Mostly they have changed the colour of packaging according to the gender even though the content inside is similar. This toothpaste contain 50% more calcium to fight tooth decay of adults.For complete al round protection Demographic Segmentation of Signal Toothpaste Age – Signal has produce different products for different age limits. Children was served with different sweet flavoured toothpaste while the adults are served with more calcium based toothpastes.
Role of HR Department . Size of the City – Signal promotes more expensive and more quantity to Colombo city since it is the largest commercial city of Sri Lanka. most of the time they go for cheaper products such as Signal sachets. many companies focus on marketing products that appeal directly to consumers with relatively low incomes. Climate – As author mentioned ealier they promote less mint flavoured toothpaste to Nuwara Eliya and Bandarawela region. At the same time when they promote to rural areas . Personality .Signal has become the brand of Sri Lanka for toothpaste. As the author mentioned previously. Psychographic Segmentation Self-Image – High class consumers will never buy Signal sachets where as low income consumers always go for the same. If you use Signal products it enhance your personality. Examples include toothpaste sachet packets for low income people and much more expensive mint flavoured Signal toothpastes for rich people.Income . Geographic Segmentation of Signal Toothpaste Region – the signal products varies from province to provice in Sri Lanka. If you use Signal herbal it shows that you are a health conscious person. By contrast. Signal promote low calcium product such as Signal Herbal to North Central province.Many companies target affluent consumers with luxury goods and convenience services.
In this context. They have to have educational qualification in marketing from a recognized institute. The candidates should have at least two years of experience in the fast moving consumer goods (FMCG) market especially in toothpaste market. As the conclusion to this term paper has included information which introduce the market segmentation of toothpaste industry in Sri Lanka and the segmentation of Signal Toothpaste. we being the HR department. we have to look into people who have marketing background. The author has shown how the signal brand behaves according to the different segment. References • • • Kotler et al (2006) Professor Richardson “Segmentation” Marketing planning. Finally author has mentioned the role of HR department with reference to develop the employees of the marketing department.Recruitment – recruitment plays a big role in the Human Resources department. HR department will go through the evaluations and plan the increment schemes and promotions accordingly. At the same time we look into people who are fluent in English. such as CIM. Implementation and Control by William M Pride . Promotions & Evaluation – Employee promotions are conducted according to evaluation done by the marketing department. Tamil and Singhalese Training – Training is highly important for marketers since they deal with lots of retailers and whole sellers in Sri Lanka. They have to handle them accordingly. SLIM. It is the responsibility of the HR department to train the marketers and all the personnel in the marketing department since they represent the company by the eye of the retailer and customer. hence it will damage the image of the product and company. degree in Marketing from a recognized university. Marketers has to deal according to the attitude of the retailer.
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