MCD2050: Toothpaste Business Report

Assigment1: 1040 words

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Table of content page number
Executive Summary 3

Introduction 4

Background Information
Industry 5
Microenvironment 5
Macro environment 5-6

Segmentation, Targeting, Positioning and Differentiation

Segmentation 7
Targeting 7-8
Positioning 8
Differentiation 8
Target Segment 8

Conclusion 9

Reference List 10

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Executive Summary

There are 380 businesses in the whole soap and cleaning compound manufacturing
and the growth in past five years were 0.9%, however, the growth in over five years is
expected to grow slightly to 1.3%. This report puts more attention on the Jack N Jill
organization; which produce products mainly for children. Jack N Jill provides
toothpaste different from other brands not only due to its organic ingredients which
are safer for little children to use but the social-friendly package. There are some
major companies in the market such as, Colgate and Oral-B. The changing age
structure and the late-married rate all have certain degree of impact toward the Jack
N Jill organization. Young parents are one of the target segments of the organization
which seek for social and esteem needs.

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Introduction

The purpose of this report is to review the appropriateness of Natural Calendula

Toothpaste of Jack N Jill of a target segment. Jack N Jill is founded by a couple Justin
and Rachel who concerned about the direct impact to their children within the
environment. As a result, they started to make toothpaste that is not only safe for
children but eco-friendly to the environment. This report covers the field of
toothpaste which provided by the organization. The information in this report is
reliable due to the resources are second-hand. The limitations of this report are the
restriction to the internal data and the word limited.

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Background Information

Industry
This industry manufactures included numerous products and services which are
related to cleaning such as disinfectants, toothpaste, cleaners and candles. These
products are then sold to downstream industrial users, as well as the household and
commercial user market segments. The revenue of this industry earned for the past
12 months was 2.6 billion and the profit was 138 million. The annual growth for the
past five years was 0.9%. However, the industry predicts the growth for the next five
year will increase slightly to 1.3%. The major leading firm in this industry is Colgate
which has the 13.2% of the market shares. (IBIS World, January 2013)

Microenvironment
There are 70.8% markets share held by numerous organization and Jack N Jill are the
one among them. The annual performance of soap and cleaning compound
manufacturing is not substantial well; however, the growth per year still increases
marginally. Jack N Jill provides organic toothpaste, toothbrush and other products
related to oral care. The competitors of Jack N Jill included Colgate, Oral-B. Oral-B is
a brand in the worldwide organization in the brushing market which provided to both
children and adults. However, Colgate is the main competitor, a global consumers
products group which focuses on its core-business and mainly in oral care. Jack N Jill
is concentrated on toothpaste that provides to the children. As a result, the
customers might be parents who want to make a better choice for their children.
Hotels might be other potential customers because they probably need to serve
customer with little children.

Macroenvironment
The demographic force may have an impact on the number of customer of the
market. Australian Bureau of Statistics has estimated that the Australian population
is changes as follows: one birth every 1 minute and 42seconds, one death every 3
minutes and 31 seconds and a net gain of one international migration every 2
minutes and 12 second. Consequently, it is leading to an overall total population
increase of one person every 1 minute and 19 seconds. However, the age structure is
changing because of low birth rate with only 0.8%. Statistic also shows that by 2050
the population of aged 0-14 will decrease to 16.3%. (United Nation World Population
Prospects, 2006) Another implication might be the changing family which arose from
people now getting married late than before. The number of people getting married
between30-39 increases significantly both in males and females. (Australian Bureau

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Statistics)As a result, women are having children late or do not want to have children.
These all have direct influences toward the organization because the Jack N Jill is
major focus on procuring toothpaste for children. The technological may also have an
impact on the market. The customer from other countries might want to purchase
the products, therefore, the organization provide online order system and
international delivery in an attempt to meet the customer requirement from
overseas.

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Segmentation, Targeting and Positioning
Segmentation
Young parents consumer (Market Segment1)

Demographic

Age28-35

Family life cycleyoung, married, youngest child under6

Educationcollege, some university, university graduate

Psychographic

Valuessomething better, conventional family life

Behavioural

Benefits soughtQuality, protection of childrens teeth

Usage statusfirst-time user

Purchase occasionregular

Health conscious parents consumer (Market Segment2)

Demographic

Age18-35

Income75,000-100,000

Educationsome university, university graduate

Psychographic

Socio-economicstatus AB, C

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 Valuesomething better, socially aware, conventional family life

Behavioural

Purchase occasionregular occasion

Benefits soughtQuality, protection

User statusregular user

Usage ratemedium, heavy users

Targeting
Jack N Jill implements the concentrated strategies to offer their products to a
specific range of customer. They mainly focus on providing toothpaste for little
children. Through concentrated marketing, company can build strong relationship
with its customer and accomplish greater position with better knowledge of the
segment and special reputation it requires.

Positioning and Differentiation

High Price

Jack N Jill

Oral-B
Ltd children Wild-ranging
Toothpaste range children Toothpaste
Colgate

Low Price

Jack N Jill differ their products from other brands by mainly producing their
toothpaste for children with completely organic and social friendly products and

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processing. Consequently, they might not provide a wide range of products and the
price of its products is bit higher than others.

Target Segment
The young parents consumers are selected as the target segment because they are
completely new as a father and mother, therefore, they are likely to buy toothpaste
which emphasize on children because they have absolutely no experience about
purchasing these kinds of products . There are some reasons that may influent their
purchase.

Social needspurchase the brand in order to fit in particular group which may

put lots of attention in the products for children

Esteem needsseeking status by buying the brand to reveal that they can

afford the more expensive products

Conclusion

This report gives some basic information about the toothpaste industry and the Jack
N Jill organization and its oral-care products and identify the major competitors to it.
This identifies the segmentations and strategies selected by the company and the
micro and macro environment which has influence toward it.

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 References List

Australian Bureau of Statistics (2013, March), Australian demography statistics,

(catalogue no.3101.0), Retrieved from http://www.abs.gov.au
IBIS World (2013, January) Soap and cleaning compound manufacturing in Australia
(C1851) Retrieved from http://www.ibisworld.com.au
Jack N Jill (2013) Official website, Retrieved from http://www.jackandjillkids.com.au
Kotler, P., Burton, S., Deans, K., Brown, L., Armstrong, G. (2013) Marketing (9th ed.),
Australia, Person Education, p113-141, p199, p246-268
United Nation World Population Prospects (2006 version), Retrieved from http://
esa.un.org/unpp

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