By:

Richelle Banta Did Dio Gelli Almoite

1. Aggregate Market
Category Size Based on competitor press releases, toothpaste category size is reaching up to 15 billion pesos, 50 percent accounted for Colgate, 25 percent for Close-up and 20 percent for Hapee. Category Growth The additional investments made by the company for the expansion of market in the Southeast Asia, would improve the company's market share in the local tooth-paste market to 20 percent from the present 10 to 15 percent market share.

 Product Life Cycle Introductory and growth level for Hapee was not so easy. It was hard to be competing with two multinational brands especially when plastic tube became popular in 1985. Due to the invention of plastic tubes, from growth, Hapee almost reached decline stage. But Hapee made their way out and survived the declining business by the help from a Japanese company. Hapee is currently in the maturity stage. It has gained awareness back in 1996 when they came up with the right strategies to be known as the toothpaste which is 100% Pinoy made.

 Sales Cyclicity Toothpaste industry is not greatly affected by GDP variations because it has been priced below the premium brands. The intensity of the capital for the Toothpaste industry is not that high compared to other products. Seasonality Toothpaste industry does not have intrayear cycles in sales. Toothpaste is now being considered as a necessity and is to be used it at least twice a day. Profits

We estimate using the customer data, 60 out of 90 million Filipinos brush average of 2x per day using 5ml toothpaste which costs around 50 centavos per brushing. It will indicate for about 22 billion pesos profit in the industry

2. Category Factors
Threat of New entrants/exits

- Economies of scale
Lamoiyan Corporation has their own factory and has equipments of their own which makes the threat of new entrants high.

- Product differentiation
In the oral care industry in the Philippines, there are three well-known brands that a new entrant will have to worry, namely Colgate, Close-up, and Hapee. Colgate is much known locally and internationally. Matter of fact, the brand is so strong that some consumers have already associated the product toothpaste as Colgate. As for Close-up, its a strong brand towards the teens while Hapee is for the masses and kids. Having these three strong brands in the market will be a threat to new entrants.

- Capital requirements The toothpaste industry requires large capital requirements due to manufacturing equipments, facilities, locations, distribution, marketing programs and other expenses to put up the same business. As we all know, manufacturing companies need large spaces for production and it would be hard for a new entrant to keep up with its competitors.
- Switching costs Unfortunately, this barrier is not present in the toothpaste industry since toothpaste goes with any other toothbrush. With so many alternatives available in the market, and with a kind of product such as toothpaste, switching costs is not visible

- Distribution It would be hard for new entrants to obtain shelf space in supermarkets and other drugstores for the leading brands, with many varieties, occupies these spaces. Slotting allowances will be too much for new entrants and would be impractical for them to spend too much when their brands are not yet that recognized by the market. If you have been in the supermarkets and sari-sari stores, youd often see the three brands mentioned earlier. They occupy the spaces where people can visibly see them. Placing them in between these brands will not guarantee them purchase right away

- Bargaining power of buyers So far, the bargaining power of buyers for Hapee toothpaste is low since its already sold at a lower price than the well-known brands. If the two brands lower their prices then it will then influence the bargaining power of buyers for Hapee. - Pressure from substitutes The awareness for the need of oral care increased substitutes in the toothpaste industry. Many other brands, products and variations are being introduced to the market which pressures the toothpaste industry especially Hapee. As Colgate launch different oral care products such as toothpaste, toothbrush and mouthwashes, Hapee will be left behind if it doesnt construct strategies to keep up with this pressure.

- Category capacity Hapee is expanding to the Southeast Asian market. The company has already raised capacity to 10,000 metric tons from 6,000 metric tons with the P100-million investments. The additional P150-million investment for the next two years to further increases its capacity as the company gears up for the exports market.

- Current category rivalry Hapees major competitors are Colgate and Close-up. The minor competitors are Beam and Unique toothpaste. The rivalry of Hapee with the two major competitors is intense. This is why it is hard for Hapee to gain much differentiation because the two brands have been doing the same thing as what Hapee does. However, as stated in Hapees history, even though the product has survived from the two multinational brands, there is an increasing demand for oral care which will gain more competitors that may affect Hapee.

3. Environmental

Technological Economic Political/regulatory Social

C. Company and Competitor Analysis About the Company

(Colgate-Palmolive)

Company or Brand Mission/Vision & Management Team of Company or Brand

Mission: As a Company that strives to be the best truly global consumer products

company, we are committed to doing business with integrity and respect for all people and for the world around us.

Vision: "As we plan our strategies to sustain growth for the years to come, our core
values of Caring, Global Teamwork and Continuous Improvement will continue to drive our future initiatives."

(Unilever) Vision: To help people feel good, look good and get more out of life with brands
and services that are good for them and good for others. We will inspire people to take small everyday actions that can add up to a big difference for the world. We will develop new ways of doing business that will allow us to double the size of our country while reducing our environmental impact.

(ACS) Vision: To be the most value-innovative, cost-efficient, and reliable manufacturer

and marketer of high quality branded laundry detergents, household and personal care products that enrich the lives of Philippine consumers. Mission: To provide our consumers with high quality branded products that delight them as their daily needs are met and that give them commensurate value for their money

(Lamoiyan)

Mission: Improve the quality of life by bringing essential products within

the reach of the common people. Vision: To have a Lamoiyan product in every home.

Product Features Variants

Colgate
* Sensitive Pro*Relief *Total Clean *Mint *Total
Professional Clean *Total Whitening Gel *Total Fresh Stripe *Maximum Cavity Protection *Fresh *Confidence with Cooling Crystals *Fresh Confidence *Mintirinse *Advance Whitening *Triple Action *Proven Cavity Protection

Close Up
*Crystal *Crystal Frost *Eros Red *Green Core *Green Explorer *Jares *Lemon Mint *Menthol Chill *Orange *Explorer *Red Hot *Snowman *Green *Yellow Core

Unique
*Toothgel *Pro Whitening

Hapee
*Fresh & *Cool *White *Fresh Green Outburst *Outrageous Blue Chill *Mandarin Orange *Blast Complete *Plus Whitening *Kiddie Toothgel *Night Mint *Extreme Clean *Gumtect *Kutitap

Product Feaures Packaging Sizes

Colgate
Box/sachet
100ml, 50 ml, 25 ml

Close Up
Box/sachet
100ml, 50 ml, 25 ml

Unique
Box

Happy
Box/sachet
100ml, 50 ml, 25 ml

Growth, Harvest and Hold Colgate

Growth(sales) Hold Harvest

Close Up
Growth(sales) Hold Harvest

Unique
ACS Low low

Hapee
Growth Hold harvest

Colgate
*Professionals especially the Dentists *Therapeutic consumers *Class B *Female Adults, mostly the mother

Close Up
*Teens ranging from 12-19 *High school & *College students *Class B

Unique
*Class B, C and D

Hapee
* hip and trendy *youth segment *highly conscious and active youth segment *kids *budget-conscious *segment *Class B and C even D

Colgate
Trust toothpaste by the experts. For strong whiter teeth. Fight cavities.

Close Up
Toothpaste for the youth. Fresh breathe.

Unique
Simple toothpaste

Hapee
Toothpaste for the whole family.

Product, Price, Placement and Promotion Marketing Colgate Close Up Unique Mix Price Placement Promotion Product
100ml 35.00 150ml 60.00 Grocery stores, Sari-Sari Store, Drugstores TVC Print ads billboards More variants Unique and new packaging design 100ml 31.50 150ml 50.00 Grocery stores Sari-Sari Store TVC Print Ads Radio Ads More innovative design to attract 100ml 25.35 150ml 40.12 Super Markets

Hapee
100ml 29.60 150ml 45.00 Grocery stores, Sari-sari store, drug store TVC Print Ads Radio Ads More consistency of the products and more varients

TVC

Unique and new packaging design More variants

Capabilities
Ability to Conceive and Design Ability to Produce Ability to Market Ability to Finance Ability to Manage

Rank (1-5) 1-lowest 5- highest Colgate Close Up Unique

5 5 3

Hapee
5

4 5 5 5

5 5 5 5

3 3 3 3

5 5 5 5

Strategies
Current Strategies

Colgate
Colgate has developed a powerful Branding Strategy which has significantly helped the Brand in acquiring substantial amount of share in the oral care market of India. In order to strengthen its' Brand Identity, Colgate is still restructuring its Branding Strategy.

Close Up
The caselet throws light on the innovative media strategy adopted by HLL for the relaunch of its toothpaste brand Close-Up. The caselet describes the media mix used for the new marketing communication campaign by HLL. The caselet also provides an overview of the earlier communications initiatives undertaken by HLL for Close-u

Unique
Unique toothpaste aims to continually improve manufacturing processes and products to give mutual benefit for consumer.

Hapee
Happy, have set in motion our strategy to become a major player in the oral care With our vision of having a Happy toothpaste in every home, we continue to develop quality its products that are essential and beneficial to our daily lives. But we also believe that quality goes handin-hand with affordability. That is why every new product we introduce is always within the reach of the greater number of people.

Strategies
Expected Future Strategies

Colgate
Colgate must considered the lower class on execute its rational price range to the market More variants much better

Close Up
To sustain its popularity in the public for its known as the toothpaste for young teen Double the positioning and promoting strategy More fresh new flavors and variants that suits to the consumer satisfaction

Unique
Wide and Effective positioning and developing the toothpaste product for in able to compete with the strong existing brand of toothpaste in the country

Hapee
Happy toothpaste also believes that quality goes handin-hand with affordability. Therefore Happy toothpaste will produce cheaper but high in quality toothpaste that suits in consumers satisfaction. Entering International market and competing with the giants.

D. Customer Analysis
Who is the customers? Colgate
Demographic Professional, Family size of 5 and up, Age starting from 5 and up Urban, Suburban, Rural From Upper lowers to Upper Middles Regular and loyal users, quality, flavour,

Close Up
Teens to College students, Age ranging from 13 to 22 Urban, Suburban, Rural Lower lowers to Middle Class Regular and Light users, Trend, quality

Unique
Male, professional, Age 20 +

Hapee
Kids, age ranging 5 up, mothers, thrifty individuals, family size 5 and up Suburban and Rural

Geographic

Suburban and Rural

Psychographic
Behavioural

Lower lowers to working class Light users, Quality,

Lower lowers to Middle class Medium and regular users, save money, varieties

What do they buy and how do they use it? Colgate

Benefits: Stronger teeth, less cavities, whitens teeth, fresh breath Usage: Regularly, every morning and before sleeping, every after meal

Close Up
Benefits: Experience, stronger teeth, fresh breath Usage: Regularly, every morning and before sleeping, every after meal

Unique
Benefits: Stronger teeth, whitens teeth, save money Usage: Regularly, every morning and before sleeping, every after meal

Hapee
Benefits: Save money, fresh breath, stronger teeth Usage: Regularly, every morning and before sleeping, every after meal

Where do they buy? Colgate

Supermarkets, Hypermarket, Convenience stores, drugstores, sari-sari stores (sachet)

Close Up
Supermarkets, Hypermarket, Convenience stores, Watsons, sari-sari stores (sachet)

Unique
Supermarkets, Hypermarket, Convenience stores, drugstores

Hapee
Supermarkets, Hypermarket, Convenience stores, drugstores, sari-sari stores (sachet)

Where do they buy?

Colgate
Twice a month, during monthly family grocery

Close Up
Twice a month, during monthly family grocery

Unique
Twice a month, during monthly family grocery

Hapee
Twice a month, during monthly family grocery

How do they choose? Colgate

Customer Value: Brand Equity

Close Up
Customer Value: Brand Equity

Unique
Customer Value: Economic Value

Hapee
Customer Value: Economic and Functional

1. Market Potential Through our survey, the respondents have stated that with product improvement and new product launch, it will make Hapee one of their alternatives, making Hapee have for about 34% of market potential. 2. Category and product sales forecast Net Sales Cost of Sales (57%) Gross Profit Selling & Administrative Expense (37%) Net Income BEFORE Tax Tax (32%) Net Income AFTER Tax

1,042,202,443 594,055,233 448,146,930

385,614,800 62,532,130 20,010,282 42,521,848

1. Volume and profit

Earn for about 2.3% volume in sales and about 0.40 centavos profit for every one peso sold.

2. Time Frame Our estimated time frame is 4 years in order for us to get our return on investment with regards to our new product.
3. Secondary Objectives (Brand equity, customer, new product) One of our objectives is to change the image of other potential users about the brand, Hapee. We aim to develop new target markets with our new product. With the same positioning, we would like to position our product in the choices of the new target by being affordable but with quality.

1. Customer Target/s Through market penetration and market development, we reach out our new product to the teens and college students B. Competitor Target/s

Our competitor target would be Colgate Plax, Oral-B, Astringasol and Listerine. These brands, as we all know, offers mouthwashes that are not priced for the downmarket. Pricing our new product lower than the competitors will give us an edge towards the potential consumers.

C. Product/service features Mouthwashes have this bitter type of taste. Some even complains having that taste gone during the day. One of the product features we will be offering is the different cool and sweet flavour which will be according to the target markets preference of taste.

D. Core Strategy
Value Proposition As stated above, Hapee mouthwash is not just a mouthwash but can be toothpaste too. This will help our consumers save by buying separately the mouthwash and a toothpaste. They will also be able to save time when they are in a hurry but gargling and brushing at the same time. With a price that is low against the competitors, and with the global regression happening, consumers will value more on saving money.

Pricing We will price our mouthwash slightly lower than of the competitors. This way, we are still consistent with the Hapee product positioning which is for the downmarket. Distribution We will be distributing this product to well-known supermarkets like SM Supermarket, Save More, Waltermart, Shop-easy and Robinsons Hypermarket. Packaging The packaging of the mouthwash will be according to the gender of the user and their mood. The bottles will be different from a female and a male. The colours of the liquid, or the mouthwash itself, will be based on the flavours preferred by the customers. These colours will be associated with the moods of our customers.

Integrated marketing communications plan * Hapee will conduct a few commercial and print ads. This will serve as the introductory stage of Hapee Mouthwash. We will make our target market aware the features and benefits of our new product. * We will air our commercial in two of the most well-known tv channels, ABS-CBN and GMA. * We will only air twice in the evening, during the news break and their telenovelas. * We will be creating print ads to magazines used by our target market like Candy Magazine, Entrepreneur and the like. Price Since some of the mouthwashes cost 50 pesos and up, we will be pricing it with a fair price of 40 pesos. Channels Our channels for this product will be the supermarkets. We believe that with proper product placement in the supermarkets, the potential consumers will make Hapee Mouthwash one of their alternatives.