there is no marketing was done in that part of the world. United Parcel Service and
Federal Express are the best in the United States logistic market because of their
focus on this respective market. Kotler simply explain the importance of marketing as
“Financial success depends on marketing ability”. (2009:4)
Market Segmentation
In a brief, Customers have different types of common requirement depending on:
Where they are? (Geographic Segment)
What situation they have? (Demographic Segment)
How they live ?(Psychological Segment)
And how they respond towards a product (?Behavioural Segment)
Segmentation is to identify these common different requirements in a market and
specify them. Walley refers to segmentation as break down of the whole market into
individual and specified group of customers who share similar demands. (2010:73)
Source :(Walley., 2010:74)
Market Targeting
Considering which product or service organisation has to offer and identifying which
segment is profitable for the organisation, the next step would be how to target this
chosen segment. University of southern California defines targeting as selecting
which particular segment to serve.
Five basis of marketing target selections are:
Single segment concentration
Multi segment coverage
Market specialisation
Product specialisation
Full market coverage (Mass marketing) (Kotler et al., 2009:220)
Below image discribes market targeting selections:
Source :(Kotler et al., 2009:220)
Market Positioning
Positioning can be referred to as an art of distinguishing organisation differentiation
from its competitors in customers mind. It is about how an organisation wants to be
seen in a market by its customers. Market share of a product (a brand) is in direct
relation of how successful its organisation (or who is marketing it) is to build up a
unique image in public’s mind. Good positioning techniques like a carving knife,
carves the name of a brand in customers mind. Most of the people have adopted
certain well positioned brands into their everyday life without even realizing it. The
below are examples of brand names that adopted by public as common words and
the product they present:
Pampers (adopted as diapers)
Kleenex (Adopted as tissue)
Tide (adopted as detergent)
Surf (adopted as detergent)
Nescafe (adopted as coffee with sugar and milk)
Coke (Adopted as Soda)
Aspirin (adopted as pain killer)
Xerox (adopted as photocopy)
The below image details positioning syllabuses:
Source: ()
There are different positioning strategies for an organisation to chose:
Positioning by product features / unique attributes
Positioning by benefits
Positioning by usage and use time
Positioning by users
Positioning by competitors/ against competition
Positioning by corporate identity
Positioning by brand endorsement
Product class positioning
Price quality positioning
Points of Differences
Brand word began as a way to differentiate a person’s cattle from another using hot
iron stamp. Basically point of difference is about pointing out the primary benefits of
a brand that totally fulfils consumer’s wants and needs which competitors do not
have.
Examples are:
IKEA (affordable design)
Michelin (performance)
Nike (performance)
Federal Express (guaranteed overnight delivery)
Lexus (quality)
Bosch (quality)
Points of Parity (POP)
Being unique is not a must to compete in a market. If brand (product) doesn’t have
any uniqueness to offer, it may point out its similarity or to other brands. There are
two basic form of parity points:
Category points of parity
Competitive points of parity(Kotler 2009:285)
Points of parity versus points of difference:
Points of parity on particular attribute or benefit requires positive feedback from
customers believing that, the brand is good enough on that attribute or benefit.
A brand does not necessary have to be positioned as equal to competitor therefore
there would be an acceptable tolerance on point or parity. In terms of point of
difference, consumers should be convinced of the uniqueness attributes of a brand.
(Kotler 2009:285)
Differentiation
Differentiation is a process in which company tries to gain differences between their
products and those offered by competitors. Differentiation can be made based on:
Form
Customization
Futures (Kotler et al., 2009:313)
There are three ways to gain competitor advantage:
Cost leader ship: gaining advantage on competitors by offering lowest
possible price available in the market.
Superior quality: attracting customers to buy company products because if
it’s high quality regardless of the higher price comparing to its competitors.
Product or service differences: customer needs or wants are subject to
change. Companies offering a product or service might be losing their
customers if there won’t be any changes over years on their product.
Category Membership
Practically customers are looking for a product based on two aspects. High quality
products which are usually expensive, or products with standard quality but
reasonable price. When customers see a new brand, they try to compare this new
brand with a brand they already know . Taking Lenova Net book as an example,
customers are comparing this brand with Dell, LG or Samsung to see if it is belong to
the same class or level. Lenova marketing team needs to concentrate working on
strengthen of its category membership before stating its point of difference.
Part B
Executive summery
This report is a critical analysis of the differentiation and strategic positioning of
Sensodyne, product of the Glaxo Smith Kline, the 3rd largest pharmaceutical
company in the world. The findings mentioned in this report are based on the
research carried out on Glaxo Smith Kline and mainly focuses on Sensodyne
department. All the data is taken from the company’s respective sites.
Intruduction on Sensodyne
30 percent of the population suffers from tooth pain while having hot or cold things.
Causes of the pain is mainly gum recession which leads to exposition of the tooth
root. Sensodyne is enriched with ions and fluoride which builds a barrier blocking the
pain transmission to the nerves and marketed for people with sensitive teeth.
Sensodyne was introduced to the market in 1969 by Block Drug Company which
was sold to Glaxo Smith Kline in 2001 for 1.4 billion dollars. Glaxo Smith Kline is a
global healthcare company in London and considered to be the world 3rd largest
pharmaceutical company. Some of its successful products are Panadol, Aquafresh
and Nicorette/Niqutin.
Sensodyne positioning
Sensodyne is not only targeting people suffering from sensitive teeth, also tries to
attract those segments having healthy teeth to its product. To do so, Sensodyne
uses the below positioning advertisement:
“Teeth sensitivity prevention” Sensodyne is targeting toothpaste users which
are not suffering from the teeth sensitivity but they fear having this problem in
future.
“Plaque build-up prevention”
This attracts those users with healthy teeth to use the product as
anti Plaque build up.
Sensodyne is targeting those segment of toothpaste users which
suffering from the teeth sensitivity. They would like to use this product
but they are reluctant to use it because Sensodyne was claiming
building up a layer preventing the hotness and coldness sensation to
reach to the nerves. Consumer interprets this layer as plaque producer.
Sensodyne cleared it out by advertising as Plaque build up prevention
The below shows some advertisement done for Sensodyne tooth anti sensitivity:
Sensodyne is using different positioning strategies such as:
Positioning by product features / unique attributes
Tooth sensitivity prevention
Plaque build up prevention
Positioning by benefits:
Reduce painful teeth sensitivity
Cavity protection
Freshness breath
Plaque build up prevention
Provide fast sensitivity reduction
Positioning by usage and use time
Sensodyne suggesting its consumers to use the product on everyday basis to relive
the sensitivity of the teeth by building up a protective layer to block the pain
transmition through the nerve and preventing plaque build up and keeping it from
coming back.
Positioning by corporate identity
Sensodyne is a product of Glaxo Smith Kline which is the 3rd largest pharmaceutical
company in the world. It draws consumers’ attention to Sensodyne to be seen as
premier brand in toothpastes market.
Price quality positioning
Sensodyne gained consumers satisfaction because of its unique benefit. Users are
willing to pay its expensive value to use the product because they are convinced its
toothpaste pretty much worth the price.
Sensodyne point of difference
Tooth root is made up of Tubule which is a very small tube. Recession of the gum
makes the root to be vulnerable. Via tubules hot or cold sensation leads to the nerve
and causes pain. Sensodyne is positioned as “tooth sensitivity prevention “by
building up a protection barrier blocking the pain transition to the nerves. Sensodyne
was the first company offering this unique benefit. Crest, signal and some other
toothpaste producers followed Sensodyne steps with noticeable gap which helped
Sensodyne to be a market leader relaying on this unique attribute. Many dentists
worldwide recommend Sensodyne to their patients suffering from tooth sensitivity as
full treatment.
Sensodyne category points of parity
Sensodyne could gain its position in the market as tooth sensitivity prevention but
those segments of toothpastes users which are not suffering from tooth sensitivity
might not be interested in Sensodyne toothpaste. Sensodyne added a new future to
its product which is plaque build up prevention.
Category membership of Sensodyne
Being advised by dental professional, Sensodyne is the only efficient product for
tooth anti sensitivity. It classified as premium brand and could fit into the health care
market despite being costlier than other similar product. Word of mouth and
customer satisfaction is the major reason for keeping its users brand loyal.
Repositioning
World is heading forward. Technology and knowledge is leading the world. Being
able to compete is the only matter of existence. Technology and knowledge are tools
of this competition. If an organisation is the best in this market, there is no guarantee
to be leading the market forever. Customer’s needs and wants are not always
remaining the same. Organisation should enhance its product with help of
technology and or market demand situation. Sensodyne was leading health care
market once it offered teeth anti sensitivity but it didn’t last long and other
brands came along offering the similar product with lower price. This forced
Sensodyne to work on add some other attributes and benefits. Plaque build up
prevention is one of this attributes added and some other feature to strengthen its
product differentiation to keep leading the market
Sensodyne differentiation
Besides leading tooth sensitivity and plaque build up prevention toothpaste which is
the uniqueness of Sensodyne, it offers a range of toothpaste with different attributes
as well:
Sensodyne Original
Sensodyne extra whitening
Sensodyne fresh impact
Sensodyne fresh mint
Sensodyne full protection
Sensodyne cool gel
Sensodyne tartar control
Sensodyne iso active multi action
Sensodyne iso active whitening
Conclusion
Glaxo Smith Kline is known for expertise in dental care product. With having a good
knowledge of health care market and understanding what customers really need
and want from a health care product and after over 45 years, Sensodyne could
successfully establish its name as number one dentists recommendation brand
worldwide. Sensodyne being a leader in worldwide health care market, to keep its
position and to gain the most benefit of the fact that over 30 percent of the
population suffers from tooth sensitivity, Sensodyne is continually looking for new
ways of improvement and enhancement of its products to meet the needs of its
users (dental professionals and consumers) by keep deeply studying in major
causes of tooth sensitivity conditions.
Sensodyne used a new way of advertising. From the beginning it targeted only one
segment, dental professionals. Sensodyne ran different educational campaign for
dental professionals about its product point of difference. In a very short period of
time it convinced its targeted segment that Sensodyne is the best toothpaste with a
uniqueness of anti teeth sensitivity. It relied on word of mouth but the difference was,
these words were coming from dental professionals which have noticeable influence
in public minds. These professionals are prescribing Sensodyne as a treatment to
their patient and those patients were passing the message to the others.
Since 1961 which Sensodyne was firstly launched, it was the fastest growing
toothpaste brand in the oral care market. In 2006 global sales of 500 million dollars
which was over the 90 percent of the total global sales of the Sensodyne shows the
fact that it’s positioning strategies were successful despite of its high price. All above
studies can be an example of importance of marketing, well studied strategic
positioning, looking out for customer satisfaction, reaching out the consumers needs
and reputable branding.
Reference
Books:
Andrew, W. 2010, Marketing Strategy, APS, London.
Philip, K., & Gray, A., 2008, Principles of Marketing, Dorling Kindersley, India.
Philip, K.,Kevin, L. Abraham, K & Mithileshwar , J.2009, Marketing Management,
Dorling Kindersley, India.
Graeme,D & John. 2005 Marketing concepts, Dorling Kindersley, India.
Russell, S. W. 2007, Marketing Management, Dorling Kindersley, India.
Sally, D and Lyndon, S. 2005 Marketing Essentials, Houghton Mifflin, London
URLs:
Sensodyne. Available on:
[accessed date 23.10.2010]
Glaxo Smith Kline. Available on:
[accessed date 23.10.2010]
USC Marshall, University of southern California. Available on:
[accessed 23.10.2010]
Malaysian Dental Association. Available on:
[accessed date 23.10.201]
Kidd Group. Available on:
[accessed date 25.10.2010]
Cite Man Network. Available on:
[accessed date 25.10.2010]
Marketing Profetionals. Available on:
[accessed date 25.10.2010]