odol case study presentation (31.10)
TRANSCRIPT
Tereza Bilkova
Kristyna Konirova
Michael Shen
International Marketing
Case Study: Odol
Overview
Overview
Strategy
Brand
Product
Promotion
Product Extension
Conclusion
Questions
30.4%
13.8 %
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SmithKline Beecham P&G
Odol – Part of SmithKline Beecham group
Market Share in 1997:
Position on the market:
Leading oral care company in Germany
No. 1 in Switzerland and Austria
Strategy
Overview
Strategy
Brand
Product
Promotion
Product Extension
Conclusion
Questions
Savvy Marketing
• E.g. Extending familiar brand names
• Fresh positioning to whitening products
• Close attention to consumer needs
o E.g. packaging: eliminating wasteful
wrapping
• Regiocentrism –Giving local managers
autonomy
Brand
Overview
Strategy
Brand
Product
Promotion
Product Extension
Conclusion
Questions
Testing product name in two German cities
• Winner: Odol (category leader in
mouthwash in GER, AUT and SWZ)
• Consumer confidence in the product for 100
years
• SmithKline Beecham draws on success of
local brand names rather than having one
universal name
Product
Price: 25% > the average price of toothpaste in Germany
USP: Three-prong protection against Cavities, Plaqueand Periodontal Disease
Growth: o 1st year 4% Market Shareo 2nd year 6% Market share with introduction of a
mint line extension
Unique packaging : Tubes without an outer box
“We take our consumers very seriously”
“When we noticed that consumers were reacting to unnecessary packaging, we
acted immediately”
Overview
Strategy
Brand
Product
Promotion
Product Extension
Conclusion
Questions
Promotion
Overview
Strategy
Brand
Product
Promotion
Product Extension
Conclusion
Questions
Even with less spending on advertising, market share was rising the 4th year after the launch
Partnership with Grey Advertising: o Amusing campaign- strip-tease act
with toothpaste unburdening itself of its outer packaging
o Special packaging (tooth shaped) Odol med 3 - also being used as a template in other markets
‘Authority’ Persuasion Technique
o Dental professional called ‘Dr. Best’ appeared in the TV ad recommending the products
Product Extension
Whitening Toothpastes: Odol Med 3 Samtweiss
o Initial Perception = ‘Also-Ran’ product used mainly by smokers and coffee/tea drinkers
o SmithKline aimed to alter this perception
• Whiteners damage teeth / abrasive• People with yellowing teeth should try this product
o Propelled toothpaste share to 6.8% and overall share to 15.8% in a year.
o Lead to competitors (Henkel and Colgate) to follow their foot-steps.
Overview
Strategy
Brand
Product
Promotion
Product Extension
Conclusion
Questions
Product Extension
Toothbrushes: Dr Best
o Languished at 5%. Of German market• Considered selling the brand
o Research show brand had over 70% recognition
o Product Advantage• Brush with floating neck and Flexible handle • Massaged gum without damaging them
o Found a Dr Best dentist and used him in advertisements.
• Toothbrush on tomato.
Overview
Strategy
Brand
Product
Promotion
Product Extension
Conclusion
Questions
Conclusion
Regiocentric strategy should be considered by organisations
Importance of meeting the needs of consumers
Consumers from Masculine society (Germany) are more willing to adapt to innovative products (Singh, 2006)
Overview
Strategy
Brand
Product
Promotion
Product Extension
Conclusion
Questions
Questions
1. Which aspects of the German marketingenvironment explain the success of Odolmed3 in terms of consumer response tobrand innovations
2. Why can a market like Germany be a leadmarket for packaging innovation ingeneral?
3. Discuss the issues involved in transferringpart of Odol’s recipe for success to nearnational markets (France, theUK), especially the tooth-like packaging.
Overview
Strategy
Brand
Product
Promotion
Product Extension
Conclusion
Questions