Dentonic - Case Study

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Shifting Market Trend in Tooth Powders

Dentonic powder has successfully held 80% market share during the 1990s. Khaaas and Trident brands each had nearly 10% market share. The reason Dentonic dominated the dental powder market was that it was a high quality product, very effective for oral care, and had a strong heritage.

Aspirations for a better lifestyle characterize most consumers – that holds true for Dentonic powder users as well. Mr. Alavi kept a close eye on consumer behavior as well as developments in the Dental Care product category. He observed that one of the reasons why young middle and lower income users were inclined towards toothpaste rather than tooth powder was that they felt that the foaming generated during the use of toothpaste helped clean teeth better. Based on the observation he had a new variant of Dentonic tooth powder developed with a foaming agent added to it. The product was launched under the name of Dentonic Plus and its foaming action communicated as its “value proposition”. The product proved to be an instant success particularly among younger consumers.

The birth of Dentonic toothpaste (2002)

During the 1990’s sales of Dentonic tooth powder were beginning to stagnate although the dental cleaning category continued to grow at a steady rate. Mr. Alavi realized that if he continued to rely on tooth powder alone and stay away from toothpaste, it would be at his own peril. The writing was clearly on the wall – his product portfolio had a major gap that had t be filled if he wanted to capitalize on the market trend. He still believed that tooth powder had potential particularly in the price sensitive dental care market. But then toothpaste brands like Medicam and English priced at Rs.12 for a 40gms pack had become a direct threat to his tooth powder priced at Rs. 10 for a 45gms pack. One of them had even started using the slogan: “Powder ki qeemat mein toothpaste” i.e. “Toothpaste for the price of tooth powder”.

Mr. Alavi felt that the time had come to enter the toothpaste market. Ala Chemicals R&D went to work and produced a remarkable product. Tests confirmed that the toothpaste they had come up with compared favourably with any premium toothpaste in the market.

Competition in the Toothpaste Market

The toothpaste market was dominated by a small number of large firms, such as Colgate Palmolive, P&G, GSK, Unilever - and then there were some large size lower price brands like Medicam. The market had growing during the first 10 years of the millennium at a compound annual growth rate (CAGR) of 3-4%.

Among the “growth drivers| were whitening toothpastes, multifunctional toothpastes such as mouth fresheners, anti-cavity, total solution providers, as well as specialized products such as herbal formulations and sensitive teeth toothpastes. Plain fluoride, very popular at one time, no longer seemed like an attractive proposition.

The premium segment was dominated by brands such as Colgate with 40.5% market share and a host of brands such as Close-Up, Pepsodent, Maclean’s Aqua Fresh, Sensodyne and some imported toothpastes. The mid-segment was catered to by brands such as Sparkle, Listerine, and Forhans. Lower priced brands included Medicam, Dr. White and Natural.

Every brand had a USP for the core product as well as other line extensions. For instance, Close-Up was known for “fresh breath”, Colgate as the “total solution provider”, Maclean’s as a “whitener”, Crest as “anti-cavity”, Sensodyne for sensitive teeth and Medicam as the remedy for a variety of gum diseases. The large company brands were aggressively promoted.

Most brands were promoted on TV as well as through print ads, and billboards. The premium brands and their line extensions were also prominently displayed in outlets.

The toothpaste category accounted for almost 92% in value terms. Nearly 36% of toothpaste users cleaned their teeth every day. According to the National Health Survey of Pakistan, 50% of the population in the rural areas used miswak and use of toothpowder is the second common method for oral hygiene in such areas.

Marketing Strategy for Dentonic Toothpaste

Dentonic was launched in May 2002. It was targeted at upper income households (SEC A and B). It was positioned as top quality toothpaste “that not only cleans teeth, but also gives consumers the confidence to smile”. This was supported by the fact that Dentonic toothpaste contained MFP fluoride with calcium GP helped strengthen teeth and effectively protected against cavity as well as TRICLOSAN, a clinically proven antibacterial agent for healthier gums and teeth. These benefits were encapsulated in the advertising sign-off which said: “Ab khul ke muskurein hum”.

The toothpaste pack sported a combination of blue, red, and white colours. The words “fluoride toothpaste” were written on the top of the panel, whereas the brand name stood out in white against a blue background. A visual of water splashing on a “brush-head” with tooth paste on it created a feeling of freshness. The Pakistan Dental Association (PDA) approved mark was prominently displayed on the pack as well.

In the word-mark “Dentonic” the letter “O” was replaced by the Ala logo or “smiling face caricature” that appeared on all Dentonic products. At the bottom of the panel words to the effect of “anti-plaque, mouthwash, lesser cavity, brighter teeth, and mint flavor” were mentioned.

The price of Dentonic toothpaste was kept 10% below Colgate (Rs.18 for a 50gms pack compared to Rs.20 for Colgate) – Colgate was the premium toothpastes in the market. The two other pack sizes 75gms and 100gms were priced at Rs.25 and Rs.30 respectively. The company also strongly supported the launch and spent Rs. 10 million in the first year, 50% of it in the first three months. TV accounted for 70% of the promotional budget. This was considered necessary in anticipation of a strong response from established brands such as Colgate, Close-up and Macleans.

Distribution in the first year focused more on mid-size general merchants, groceries (“kiryana” stores in popular jargon) and selected premium stores – the latter to establish an upscale image for the brand. Trade was also incentivized in the belief that a combination of push ‘n’ pull strategy would generate trial and get the product going. It was also decided to leverage the brand name Dentonic, which had a strong heritage and a name in the dental care market among a large audience across cities and towns.