The purchase decision of the customers is based on the purpose of purchase, the target group for whom the product is intended to be used and the income threshold of the purchaser.
4. Environmental analysis of Aqua fresh:
With various products that come in the web of Aqua fresh, it is the leading oral car brand. The range of products includes toothbrushes, toothpastes, oral care products and mouth washes. The environmental analysis of Aqua fresh is studied by PESTLE analysis that is described below:
- Political And Legal Environment: The headquarters of Aqua fresh and GSK are in UK and the government is under the strategy to impose more taxes on the products to fetch more profits. In addition, the political condition of UK is systematic and legal system is well developed that protect the rights of the company, the products and the end users who have issues with the quality of their products.
- Economic environment: The economic growth of the country is majorly stable but has glitches due to economic recession. The prince of the company's products increase at the time of inflation and the interest rate affects the company. The GDP is seen to rise consistently at the current range of princes from the year 2009 till 2014. The consistent increase motivates customers to make a healthy choice in oral health care. The inflation rate also dropped from 4.6% to 3% in 2014 that has negative impact on the market of the consumer as the cost of the raw materials and the supply chain is unstable (Key note, 2014).
- Social and cultural environment: The productivity of the company is influenced greatly by the social communication and interaction that helps to gain awareness of the product and increased sales. The national statistic population of UK suggests that the population is increasing consistently between the year 2010 and 2014 with an in erase if 3.2% and the people in high and medium income group are more than those with lower income potential. The higher income people tend to make healthy choices and go for designed oral heath care products of aqua fresh. With increased social media advertising and cultural environment that favors positive promotion of the product, consumers have increased awareness or the market trends and hence aqua fresh designs its products and promotes deals to suit the requirements of the societal/cultural trends of the consumers (Keynote, 2014).
- Technological environment: the research and development of the company are paid hugely for their constant research to improve the oral health conditions and huge amount of money is contributed by GSK to maintain it's position in the market. Various advanced leading technologies are followed by R and D of aqua fresh and they are updated constantly to suit the market requirement and competition.
5. Competitor analysis:
There are hundreds of brands that exist in the toothpaste market and the main best sellers in the market include Colgate, aqua fresh and Oral B in the increasing order of their market share. Although the tooth paste market is mature, the growing requirements of the costumer and the marketing strategies of the competitors maintain the quality of the product and add new features at regular intervals.
The below table shows value share of the main competitors in the tooth paste market:
Source: Oral Hygiene Review (2006)
The tooth paste industry is also a typical example of oligopoly where the industry is do instead by many small major firms like p and G, Colgate- Palmolive and GSK ( industry structures, 2014).
There is a fierce competition between various companies, especially those who launch new products and those who have products with new features, including those which are whitening toothpaste, economic toothpaste, and enamel protection toothpaste and mouth freshness. The competition is harsh and the companies introduce many kind sod products to target various segments of the market. The products that are released in the market are close substitutes but are not perfect kind of substitutes. The market of tooth paste has many competitive rivals who manufacture similar products and aim the same customer group and hence the threat of substitutes is high.
The below figure shows the porters five forces for Aqua fresh products:
The barriers for the product entry are low relatively and makes it easy for the competitors to get into the market. The market is fragmented and the various brands have difficult time for differentiation.
6. Internal analysis of the market:
The accomplishment of Aqua fresh is built on a very basic level with respect to four key features:
1. Prevalent items with characterized target markets
2. Item Range augmentation
3. Brilliant publicizing
4. Strong support for promotion
From these measurements, one of their principle qualities is being the business pioneer in oral consideration items. Aqua fresh is the most obvious customer health awareness item in the company’s global item portfolio and is currently a billion-dollar brand. It is accessible in more than 120 nations.
Their insight and ability helped them make a wide circulation system crosswise over whole world which permits them items and products to pretty much every corner of the world. Aqua fresh has a far reaching Research and Development office gloating 170 workers around the world. That is connected to its present position as on of the business sector pioneers in the toothbrush industry. In this way, their solid responsibility to advancement through interest in R&D is a conspicuous quality. They offer an incredible scope of items prepared to pander to particular needs of diverse purchasers. A committed site gives astronger online vicinity with captivating substance for its target bunch.
Aqua fresh utilizes imaginative oral wellbeing advances to speak to a more youthful gathering of people. The bundling of Aqua fresh Extreme Clean, for instance, is a gleaming, glittery box that seems current. This alongside low item facings is a showcasing ploy to speak to kids whose eye level is lower than adul"
Aqua fresh is a solid brand possessed by the world's third biggest pharmaceutical organization. While the Aqua fresh unique is quickly unmistakable by its different red, white and blue strip, other fresher items are not as known. Higher promoting spending are required so as to manage in the business that is always expanding. The shelf placing of aqua fresh products are weak and the products are usually displayed in the shelves beneath where customer's chances of locating are not quick. Like many other brands in the toothpaste company, aqua fresh has come out with many products suiting the demands of the market, thus loosing focus on the original key product, the tooth paste. Another major weakness is that aqua fresh is not a own brand and thus the income that comes for aqua fresh goes to GSK and not directly aqua fresh. GSK also launched Sensodyne that is another major competitor for aqua fresh products.
Demographic patterns like expanding population and acquiring force support the shopper health awareness market, along these lines open doors for development. Furthermore, with the children of post war America and more youthful eras getting to be more concerned with the strength of their gums, they will be eager to pay the aforementioned premium for a toothpaste which is streamlined for better gum care. Organization can underwrite upon this demographic fragment to guarantee an effective arrival of their item. Aqua fresh has numerous chances to grow their current line of items alongside growing new and energizing items that will advantage numerous individuals. In the Aqua fresh line of items, there are various items that will help an individual battle numerous types of oral consideration issues, from tartar to gingivitis. Be that as it may in the greater part of the distinctive toothpastes that Aqua fresh offers, there are just a modest bunch of toothpaste flavors. Including more flavors, particularly for kids could build deals.
The super-premium business sector is exceptionally focused, facilitating numerous brands and private name toothpastes. In the event that any of these adversaries makes a tooth paste which tops or even equivalents the innovation of Aqua-fresh, particularly if done at a lower generation cost, Aqua fresh may lose piece of the overall industry.
KEYNOTE, (2014), Oral health care Update 2014