MANAGEMENT MARKETING - Syndicate Groups No.

Lecture : Dr. Asnan Furinto S.T., MBA

Date : Wednesday 28 August 2019

Member of Groups :
1. Donafeby Widyani -
2. Muhammad Hermosa Widiadi -
3. Muhammad Wildan F - 29319008
4. Nadia Farahiya Rachmadini -
5. Rico Kresno - 29319100

HIMALAYAN HERBAL TOOTHPASTE: CATEGORY AND BRAND INVOLVEMENT IN AN

EMERGING MARKET

1. How to optimize the potentials to expand market share opportunities?

WHO reported that 98% of the Indian population suffered from oral health problems.
Based on data, FMCG market in India is projected to be around US$15-18 billion in 2010
and expected to grow to US$33 billion by 2015. The average Indian consumer spent
around 8% of his income on personal care products. The toothpaste market in India had
a penetration rate as low as 60%. Urban penetration was around 76%, whereas rural
penetration was 40%. The average consumption of toothpaste in rural household was
significantly lower than in urban households. Per capita consumption of toothpaste in
grams per year in India was 115, China was 255, and the United States was 542.

Himalaya as an herbal health care product is one of the key players in the pharmaceutical
field for several decades. Himalaya offers their products in three segments, contain Health
Supplements, Personal Care Products, and Pain Ointments. The unique proposition of
this brand is being the scientific rigor associated with the testing of its herbal offerings.
The company launched Ayurveda based Consumer Products to enter FMCG Market.
Himalaya is targeting young urban professional population to create brand awareness.

How to optimize the potentials to expand market share opportunities?

Analysis of alternative actions/options

a. ORAL CARE INDUSTRY

Facts on Oral Industry

● FMCG was broadly split into: Household Care, Personal Care and Food & Beverages;
 ● FMCG market in India is projected to be around US$15-18 billion in 2010, & expected to
grow to US$33 billion by 2015;
● The average Indian consumer spent around 8% of his income on personal care
products;
● Growth of the personal care segment can be attributed to:
Increasing levels of discretionary spending
Greater attention to personal hygiene
Increase in the no. of new media channels
● Distribution
● In 2010, the oral care market in India was around US$980 million
● Growth of the toothpaste category was around 9%
● 68% of the Indian consumers who participated in the survey believed that using the right
toothpaste was more important than using the right toothbrush.
● Most of them believed that oral care was not as important for personal grooming as hair
care or skin care.
● 28% of the respondents brushed twice daily.
● 68% of the respondents had never visited a dentist & 87% would not consider visiting a
dentist as a preventive measure.
● WHO reported that 98% of the Indian population suffered from oral health problems.
● Ratio of dentists to patients is just 1 dentist for 10,000 people in urban areas & 1 for
about 0.25 million people in rural areas.
● Conclusion: Significant scope for marketers to enhance the involvement level associated
with the toothpaste category among consumers.

Fact in Toothpaste Industry

Industry Fact Competition Data
· The toothpaste market in India had a
very low penetration rate of 60%.
· Urban Penetration: 76%
· Rural Penetration: 40%
· Average consumption of toothpaste in
rural households was significantly lower
than in urban households.
· Per capita consumption of toothpaste
in grams per year:
o India: 115
o China: 255
o United States: 542
· Key brands in the Indian Oral Care
industry: Colgate- Palmolive India &
Hindustan Unilever Limited
· Colgate was one of the main brands
for oral care, with the category contributing
to 96% of Colgate- Palmolive India’s
annual company sales.
· Colgate was the market leader in the
toothpaste, toothbrush & toothpowder
categories.
· It led the toothpaste market with a
52% market share.
· Hindustan Unilever was 2nd in the oral
care market with a 25% share in the
toothpaste category.

b. SWOT

● Strengths
○ The Himalaya Drug Company had been in a pharmaceutical field for several
decades they had launched Ayurvedic concepts, which offered health
supplements, skincare products and pain ointments.
○ Ayurvedic Concepts involve natural ingredients as their main composition such
as neem, extracts of toothache tree, pomegranate and etc that become as
popular medicine in India.
○ Even though Himalaya has a premium price they had several exclusive outlets
throughout the country, and had shop-in-shop counters in modern retail outlets.

● Weaknesses

○ The growth trend of toothpastes over the past three years was relatively slower
than several other key FMCG categories. It was around 11%.
○ The consumers did not give much importance to oral care products rather than
haircare or skincare product.
 ○ Based on the Exhibit 3 Himalaya didn’t explain their characteristic as herbal
toothpaste on their Advertisement.
○ Consumers prefer to use a toothpaste that gives them problem solving (Niche)
regarding to their specific needs.

● Opportunities
○ The toothpaste market in India had a penetration rate as low as 60 percent.
urban penetration was around 76% and rural penetration on 40%.
○ Oral care market is 21 percent growth annually indicating an increase in
awareness about oral care.
○ Basically the only competitor that similar because of using herbal is Dabur Red,
but they dont have a specific brands for children.

● Threats
○ Colgate was one of the flagship brands for oral care, with the category
contributing to 96% of colgate Palmolive India’s annual sales, and it was the
market leader in a toothpaste, toothbrush and toothpowder categories.
○ Colgate and Pepsodent both had a brand in the same segment with Himalaya
but they sell it in a popular price.

c. Alternative Actions
1. Because of Himalaya using their Dental Cream are only targeting adults with premium
price market, we think that it will be better for Himalaya if they are selling a new brands
specifically for children. So based on the statistic they will the one and only company
that selling herbal toothpaste for children.
2. Optimize their market that already loyal to them by creating some promos, bundling
packet buying or maybe quiz to attract them.
3.

3. Recommendation actions
1. Make an Innovation to sell an herbal toothpaste for children.
2. Targeting on urban area.
3. Create a clear market segmentation so the marketing and promotion will be effective and
efficient.
4. Do the bundling for some product so it will attract consumers to buy the product.
5. Socialize and outreach to remote areas so he knows the benefit of the product.
6. Socialize by hand educate children about the importance of maintaining dental health
using the Himalayas toothpaste to form a brand awareness since childhood.
7. Socialize by school to school to make an awareness and build a habit since young ages.
8. Socialize by house to house to make an awareness of oral health in urban areas.
9. Create a fruit tasty herbal toothpaste so it can attract children to use Himalayas
Toothpaste.
10. Start exporting to several countries to expand the market of the products.
 11. Create a useful guides so they know what they need or the potential effects.
12. Optimize their advertisement by reaching cognitive segment.

4. Lesson learned

From analyzing and discussing this case we’ve several lessons learned specifically in Marketing
Management area such as:
1. We are getting used to identify company potential, based on their Strength and
Weakness, this is important to optimize their product.
2. We learned to see the opportunities that company had based on the statistics and table
that available on the briefcase, this is important to improve their market space and at the
end could improve their selling.
3. We learned to analyze how to compete with other competitor based on the statistics and
table that available on the briefcase, this is important to enlarge their market space.
4. We learned how to analyze market needs, habits and demographic.