This report is the marketing plan for GSK Sensodyne toothpaste in Australia. The marketing objective is to make people aware about this product and raise awareness regarding this product.
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Table of Contents Executive Summary...........................................................................................................1 INTRODUCTION...............................................................................................................2 Situation analysis...............................................................................................................2 Company Analysis.........................................................................................................2 Review of current promotional programs......................................................................2 Brand image..................................................................................................................3 Environmental analysis......................................................................................................3 Competitor analysis.......................................................................................................4 Objective.......................................................................................................................7 Target Market...............................................................................................................7 CONCLUSION...................................................................................................................9 References......................................................................................................................10
Executive Summary ThisreportisthemarketingplanforGSKSensodynetoothpastein Australia . The Purpose of this report is to outline the marketing strategy for sensodyne toothpaste for GSK company that manufactures the product of sensodyne across the globe. The inter brand was approached by GSK to create a compelling identity for a new premium range of Sensitivity oral care products .The marketing plan that is created for GSK will focus on the advantages of using sensodyne toothpaste in comparison with other toothpastes such as Colgate in the market. The aim of the company is to build a world class brand and quality product. The marketing objective is to make people aware about this products and raise awareness regarding this product. The sales objective is to increase the sales of this product by 50 % in the market. 1
INTRODUCTION The success of business lied in the marketing. On successful marketing the most of the aspects of the business depends. The marketing is the process by which good or servicesareintroducedandpromotedtopotentialcustomers.Advertising,public relations,promotion and sales are covered in the overall marketing umbrella (Chitra and Sasikala, 2016.). The GlaxoSmithKline(GSK) company manufactures world's number 1 sensitivity toothpastebrandsensodyne(GSKFortuneranking,2017.).Thispasteis recommended by dentists across globe. For the care and treatment of sensitive teeth sensodyne offers a range of products. This report will present the different marketing strategies and plans that areusedby thecompany for sensodyne. The market environment analysis have been conducted for this product. The SWOT tools is used in order to determine the strength,weaknesses, threat and opportunity for the company for promoting and marketing sensodyne product in the market. The marketing report of the GSK based on its sensodyne product will be created in this report. Situation analysis Company Analysis In 2000, GlaxoSmith Kline was established by merging two organizations, GLaxo Wellcome and SmithKline Beecham. Firm has a primary share listing on LSE and secondaryonNYSEandheadquarterwasestablishedinBrentford,London.It’s segmentaloperationshasbeendividedintothreeseparateparts,vaccines, pharmaceutical & consumer healthcare business.Its mission statement is to deliver patient with the best quality healthcare facilities so that they can enjoy a healthier life. Sir Andrew Witty is the CEO of GSK and Phillip Hampton is the Chairman. Review of current promotional programs Theactivitiesofpro,motionsarecurrentlyundertakenbytheGSK sensodyne .The snesodyne products was promoted through social media sites such as Facebook,twitter and blogs etc. In terms of promoting any kind of product the twitter handle and Instagram are very fascinating .Over dental care one can find people with similar interest in dental care online social media. The potential customers can be 2
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collected by gathered attention of the people over the years and sales can be increased by targeting the people (Chung and Muk, 2017). Brand image Sensodyneishealthyandnutritivetoothpasteisperceivedwithinthe marketplace .The aesthetically pleasing packaging and the premium pricing strategy have allow sensodyner to positions itself in the market. Environmental analysis The possible environment factors are identified with the analysis of marketing environment Political and legal factors With the political instability of the country GSK is affected that directly influence the marketing strategy for the sensodyne product. In the international trade the changes caused can affect the formulation and selling of the sensoydyne that isdeveloped by GSK. The policy of government that is issues should be kept in mind by GSK and develop the product according to it. All the rules and regulations that a re imposed by the government of Australianedtobefollowedby GSK in themanufacturing of sensodyne toothpaste. If the is any change in the laws then the company need to implement that change in the company (Godey and et.al , 2016.). Economical factor Due to change in the market conditions of Australia the production of sensodyne toothpaste will be affected. This can lower the production for the company. Increasing the economic growth of the country the company should produce the product. Social factors The change in the lifestyle of the people and attitudes towards the product can affect the production of toothpaste. As the shiftofpeople towards more healthy lifestylemay affect the sales of the product. The doubts can be treated about the company and its product if the comp-any is having large profit. (Srinivasan, Rutzand Pauwels,2016)The customers now prefer more eco-friendly products as they have become more health conscious so the marketers may face issues in predicting the correct needs of customers. The marketeers have forgotten to make a product that is 3
green as now-a-days majority of people have become environmentally conscious. For people the green factors is vital and are willing to pay more amount of money for it. Technological product The sales of sensodyne toothpaste can be affected due to advance technology. Thefield of marketing is going a lot of change as the accessibility is now available through the web with an internet connection and browser. On a much larger scale it is now possible to find customers .But sometimes various issues are faced in order to find out prospects interested in what the company sells. As a marketer,the focus is more on to increase the number of followers on Facebook,Twitter and blog. But the building of brand is not about getting more number of followers (Menegaki, 2012.). As the focus have now shifted to getting quality followers for the brand. The problems for marketers is to develop a dynamic content that attracts a large number of customers in the company products and services. Thetraditionalmarketingapproachesismorefocusedbysome companies .While the e-commerce businesses pays more attention on the use of digital marketing in order to search customers. In order to reach the largest target market possible the marketers today must search a way to combine the strategies. Before the heading to store to buy products and services the target markets spend time on the internet to research about the company's product and services so the company's need to implement effective strategies for marketing. The move to location -basedis made by the many companies by creating advertisements that comes on mobile phones. Whenaprospectivecustomersiswithinafewblockofbusinessthe advertisements created appears on the mobile devices of the customer. The current issues that is faced by the markets is to figure out the reputation that need to be invested in the location-based marketing,particularly in small business where funds are not so much. The success of location-based campaigns ned to be measures in order to find out whether they are working as per plan or not. As more and more companies are using technologies to promote their company product in the market. The innovative and creative strategies are made by the company for their productpromotions. So a huge competition is their for marketeers in order to 4
make use of better technology andmake more innovative strategy for introducing their product in the market (Singh and et.al., 2017.). Competitor analysis As the great care to teeth is provided by the sesnodyne toothpaste and it is often recommanded by most of the dentists. The main competition that is faced by this product is pepsodent and Colgate sensitive (Jobber and Ellis-Chadwick, 2012). CompetitorsComments PepsodentThe celebrities like sharukh khan are the brandambassadorsofthisproduct.A rangeoftoothbrushesarealso manufacturedbythisproducts.The specificproblemssolutionisofferedby pepsodent oral care expert. ColgateTherootcaredareprotectedby Colgate.Duetoadvertisinghighbrand awareness is created and it is very popular brand. SWOT analysis SWOT is an internal analysis tool that helps firm in recognizing their internal business strengths by using which, they can grab benefit of market opportunities. However,weaknessesshouldbeminimizedandstrategiesshouldbedevisedto minimize threats (Hastings and Domegan, 2013.). Strengths: ď‚·Worldwide operations of the company as it operates in more than 100 countries i.e. UK, Australia, Austria, Belgium, China, India, Costa Rica, France, Germany and many others ď‚·Very high investment in the research and development operations so as to bring innovations and in UK, it is the largest private investor in R&D activities 5
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With the excellent use of resources in the chemical sector, it won Chemical industry manufacturing and Resource efficiency award (GSK's annual report, 2016). A portfolio of skilled, well-experienced and competent workforce with having a portfolio of more than 99,300 employees In 2017, in Global 500 fortune ranking, it is ranked at 273 position One of the largest company in the world’s 5 biggest pharmaceutical companies Excellent & vigorous marketing efforts and various campaigns of public relations Strong revenue base worth of AUD 37,642 million in 2017 at a profit of AUD 1230.9m.Weaknesses: GSK comes under controversies regarding their drug safety which tends to build negative brand image Expiry of their patents for various drug and vaccination products Failure of some R&D plans do not fulfill consumer expectations appropriately Opportunities: Risingawarenessamongconsumersregardingtheirhealthcaresafetyand security GSK can grab benefit of Global penetration via merger and acquisition (M&A) strategies to expand their business in more countries Prevalence of rising demand in the market for the best quality treatment and healthcare solutions Strategicpartnership,agreementsandcollaborationwiththeotherleading pharma companies. Currently, it has strategic alliances with Dong A-Pharma, Dynavax, Dr. Reddy’s laboratory, Glycovaxyn, Gavi and many others (Hanssens and et.al., 2014.). Moving to new segments i.e. biologics, oncology and antibodies specialization Threats: Tough and throat-cut competition from the rival organizations such as Abbott Laboratories, Amgen, AstraZeneca, Novartis and others 6
Stringent and uncertain regulatory environment UK separation from EU led to bring change in legislative and regulatory framework for the pharmaceutical industry which might threaten the GSK operations in UK Possibility of slowdown economy in the European markets High business risk of unsuccessful products might be due to lack of customer awarenessGSK is experiencing threats due to new conventional medicine forms, herbal medicines and others which is considered highly effective with less possibility of any side effect Customer analysis For sensitive teeth this toothpaste is recommend by dentists as it provides a gentlelow-abrasivetoothwhiteningsolutionwithprovensensitivityrelief.Itis convenience product that will target people at all age -group especially small kids as they eat too much of junk food and cavity is causes due to germs in the mouth. People now-a-days have become more conscious about their health and body so for them price is not an issues they only want quality product. So sensodyne toothpaste will target 10- 50 age group living in metropolitan areas. Objective Marketing objectives To make people ware regarding the benefits of sensodyne toothpaste across globeTo educate the market of Australia on health benefits of sensodyne toothpaste. Sales objective In the Australian toothpaste segment to increase the market share by 50%by 2017 For 2018 to sell 100000 sensodyne toothpastesTo be the largest supplier of toothpaste in Australia Communication In the toothpaste category to raise awareness of sensodyne toothpaste To raise awareness for the new slogan “ Expert recommended to stop the pain” 7
Target Market Geographic -The market will be divided into various units of geographic units. According to world region or country, city. population density,climate this product will be segmented. The complete care and is given by this product. So countries such as US,Canada,Australasia will be their targets. Demographics– Once the segmentation of the product is done as per geographically thenaccordingtodemographicssuchassizeoffamilysize,occupation,raceetc segmentation will be done. As the product is a premium product so income plays a very important role and when buying this product people do consider this product (Gordon, 2012.). Psychographic– Based on class,lifestyle or personal characteristics psychographic segmentationdividesamarketintodifferentgroups.Peopleoftenhavedifferent lifestyles and personalities in the same demographics. As the product is a premium product and the income divides the lifestyles and classes. So,the product will be selected according to it. Behavioral- The usage rates can be known with the help of this. The loyal status of customers can be known with this. The ex-users,first -time users etc are known by behavioral. Positioning The Target Audience Profile(TAP)template will be sued to collect and interpret this information. The data to potion the product will get related to the product they prefer ,whether they buy product on warrant etc. The positioning of the competitors need to be know about their plans what strategy they are using for positioning. The buying criteria then need to be mapped against the competitive positioning .The strength of the sensodynetoothpaste needtobecomparewithbuyingcriteria. Thecompetitive advantage will add as there high tech system in the toothpaste. The gaps need to be analyzed against the competitors that is the value to the product need to be added in order to make it more innovative in the market as per the requirements of customers and market (Fan, Lau and Zhao, 2015.). Marketing Mix Strategy Product 8
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A greater chance of being effective in the long-term is achieved if the marker strategy is flexible and adaptive to changing marketing circumstances. The consumer perceptionandproductsarevariable.So,inordertoaddresstheneedsof customers ,new laws change strategy is required (Stephen, 2016.). The change in product strategy can be due to preference of customers .Sensodyne toothpaste is the paste that is used for treating teeth. In the Australian market it is the first brand to launchsuchtoothpaste.Asitcontinuestogrowthecompanywillcontinueto manufacture more number of such toothpaste .It is useful for human as it is used for treating cavities that is caused by germs in the mouth. No added sugar is added to this product and is made from 100% natural products. Price The price of the product will be affordable for target group. With the good promotional marketing strategies the product will enter int market. As the product is related with dental and advanced technology is used for this advanced so the estimation is made from the before that product willbe of high price. The affordable prices are kept as the company aims for customers retention and long relationship with customers (Armstrong, Denize and Kotler, 2014). Promotional The products will be promoted through campaigns such as social media promotion. As on social media the much expense is not required. The free dental care camp will be organized in order to make the people are about the benefits of this toothpaste. Place Several distribution channels have been focused by Sensodyne toothpaste to gain the customer reach. CONCLUSION The people who care for their teeth and do not have enough time to go to dentist for them Sensodyne toothpaste is the best fit. It should be considers by the pole who can afford to premium. For along-period of time this product can be used . 9
References Books and Journals Armstrong,G.Denize,S.andKotler,P.,2014.Principlesofmarketing.Pearson Australia. Fan, S., Lau, R. Y. and Zhao, J. L., 2015. Demystifying big data analytics for business intelligence through the lens of marketing mix.Big Data Research. 2(1). pp. 28- 32. Gordon, R., 2012. Re-thinking and re-tooling the social marketing mix.Australasian Marketing Journal (AMJ). 20(2). pp. 122-126. Hanssens, D. M. and et.al., 2014. Consumer attitude metrics for guiding marketing mix decisions.Marketing Science. 33(4). pp. 534-550. Hastings, G. and Domegan, C., 2013.Social marketing: From tunes to symphonies. Routledge. Jobber, D. and Ellis-Chadwick, F., 2012.Principles and practice of marketing(No. 7th). McGraw-Hill Higher Education. Menegaki, A. N., 2012. A social marketing mix for renewable energy in Europe based on consumer stated preference surveys.Renewable Energy. 39(1). pp. 30-39. Chitra, K. and Sasikala, K., 2016. Social Media Marketing Strategies for Enhancing Brand Awareness: A Study with reference to select Startups.Asian Journal of Research in Social Sciences and Humanities.6(9). pp.1081-1095. Chung, C. and Muk, A., 2017. Online Shoppers’ Social Media Usage and Shopping Behavior. InThe Customer is NOT Always Right? Marketing Orientationsin a Dynamic Business World. Springer, Cham. pp. 133-133 10
Godey, B. and et.al., 2016. Social media marketing efforts of luxury brands: Influence on brand equity and consumer behavior.Journal of Business Research.69(12). pp.5833-5841. Singh, S. and et.al., 2017. Role of Social Media Marketing In Brand Building: The New Age Marketing Strategy.International Journal of Scientific Research. 5(9). Srinivasan, S., Rutz, O.J. and Pauwels, K., 2016. Paths to and off purchase: quantifying the impact of traditional marketing and online consumer activity.Journal of the Academy of Marketing Science. 44(4). pp.440-453. Stephen, A.T., 2016. The role of digital and social media marketing in consumer behavior.Current Opinion in Psychology. 10. pp.17-21. Online GSKFortuneranking.2017.[Online].Availablethrough:< http://fortune.com/global500/glaxosmithkline/>. [Accessed on 6thOctober 2017]. GSK'sannualreport.2016.[PDF].Availablethrough: <https://www.gsk.com/media/3609/annual-report-2016.pdf>. [Accessed on 6thOctober 2017]. 11