Marketing Challenges Faced by MESWAK - HERBAL TOOTHPASTE' in Bangladesh
Marketing Challenges Faced by MESWAK - HERBAL TOOTHPASTE' in Bangladesh
Marketing Challenges Faced by MESWAK - HERBAL TOOTHPASTE' in Bangladesh
September 6, 2018
Dear Sir,
With due respect, we are submitting our report on the topic titled “Marketing
Challenges Faced by Meswak Herbal Toothpaste in Bangladesh” that has been assigned as
a fulfillment of Marketing Management (BUS 620).
It was undoubtedly an interesting opportunity for us to work on this assigned topic which
enhanced our knowledge as well as our experience. We would like to express our gratitude for
your supportive thoughts, sincere guidance and constant support throughout the semester. It
would not be possible for us to complete the report without your kind help. We tried to apply
as many relevant concepts that we have learned so far from BUS 620. The contents provided
in this report are all our own and necessary information have been taken from various
secondary sources.
Therefore, we sincerely hope that you will appreciate our effort and for any of your
further queries, feel free to contact us through our email address. We will be pleased to answer
any kind of query you think necessary.
Yours Sincerely,
Isteaque Ahmed
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Acknowledgement
First of all, we are grateful to almighty Allah for blessing us completing the report, no
noble achievement can be achieved by an individual without help of others. We are indebted
to a number of people for their kind recommendation, submission, direction, co-operation, and
their collaboration.
We would like to express our gratitude and indebtedness to our honorable faculty member
Dr. Mohammad Baktiar Rana for his continuous inspiration, constructive criticism and
valuable advice, inexhaustible guidance, generosity. He helped us to carry out this report
successfully.
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Contents
Introduction .............................................................................................................................. 4
Conclusion .............................................................................................................................. 21
References ............................................................................................................................... 22
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Introduction
Dabur Bangladesh Ltd. is one of the leading FMCG Companies in our country. Building on a
legacy of quality and experience for a long time, Dabur is today’s one of the most trusted name
and the world’s largest Ayurvedic and Natural Health Care Company. Dabur is also a world
leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. Dabur's FMCG
portfolio today includes five flagship brands with distinct brand identities Dabur as the master
brand for natural healthcare products, Vatika for premium personal care, Hajmola for
digestives, Réal for fruit juices and beverages and Fem for fairness bleaches and skin care
products. Dabur today operates in key consumer product categories like Hair Care, Oral Care,
Health Care, Skin Care, Home Care and Foods. The ayurvede company has a wide distribution
network, with a high penetration in both urban and rural markets.
Dabur Herbal Paste is a unique blend of traditional medicine and modern pharmaceutical
technology bringing out the best of both. This side effects free, effective formulation is useful
for maintaining oral hygiene and keeping the gums and teeth healthy. Dabur Herbal Paste is
packed with the power of 13 active Ayurvedic ingredients like Laung Pudina & Tomar among
others that keep all your dental problems away.
Dabur Herbal Paste has been clinically tested for reduction in plaque, gingivitis & bad breath.
In-vivo study of Dabur Red Paste had been done using healthy subjects. A statistically
significant improvement was observed in user when all the four conditions like plaque,
gingivitis, stain and malodour were assessed.
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Chapter 1: Product Description and Value offerings of Meswak Herbal
Toothpaste in Bangladesh.
Product Description
Dabur Meswak is scientifically formulated herbal toothpaste with pure extract of the Miswak
plant 'Salvadore Persica', the famous 'Toothbrush Tree' used for centuries. The astringent and
anti-bacterial properties of Meswak helps reduce tooth decay, fight plaque and prevent gum
diseases. Miswak Herb is a rare, potent, priceless, wonder herb that delivers incredible Dental
Care benefits. Dabur brings this wonder herb in the form of Incredible 'Meswak' toothpaste.
Meswak toothpaste is scientifically proven to reduce tarter & plaque, fight germs &
bacteria, prevent tooth decay & bad breath ensuring healthy gums & strong teeth. The product
has a unique flavor that connotes freshness and can be used for complete oral care.
The main ingredient of this toothpaste is Miswak Extract which Helps reduce Tartar & Plaque,
Prevents Tooth decay, Fights Germs & Bacteria to keep Gums Healthy, eliminate Bad Breath
& Ensure Strong teeth. Maintain good oral hygiene to keep all your dental problems away
The Miswak herb is still used by a large number of Indians daily to clean their teeth. Miswak
is obtained from the twigs of the Arak, or Peelu tree. Twigs of many other trees like walnut
and olive are also in common use. In the Middle East, the most common source of chewing
sticks is Arak (Salvadora persica). In West Africa, the lime tree (Citrusaurantafolia) and the
orange tree (Citrussinensis) are used. The roots of senna (Cassia vinnea) were used by Native
Americans, and those of African laburnum, while Neem (Azadirachta indica) is widely used in
the Indian subcontinent.
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Value Offerings to the customer
Medical Benefit: The medical benefit of Miswak has been extensively studied. Miswak is very
effective in reduce tartar & plaque, fighting germs & bacteria, keeping gums healthy,
preventing tooth decay, eliminating bad breath and ensuring strong teeth. It also kills bacteria
that causes gum diseases, fights cavities, keeps the teeth sparkling and increases salivation,
thereby inhibiting dry mouth. With its strong antibacterial properties and perpendicular bristles,
Miswak is a natural toothbrush, toothpaste and floss combined.
Health Benefit: There are many other health benefits associated with the Miswak herb. The
Miswak herb enhances memory, eliminates slime, prevents headaches, improves the eye-sight,
aids digestion, clears the voice, triggers apprtite, boosts speech and improves intelligence. Thus
it is helpful for not only your dental problems but the health of your whole body. The Miswak
herb is also greatly recommended by Islam. The use of Miswak is a pre-lslamic custom, which
was adhered to by the ancient Arabs to get their teeth white and shiny. It also contributed to
ritual purity. Maintain proper oral hygiene and choose the right toothpaste to keep all dental
problems away & ensure proper dental care.
Maintaining Oral Hygiene: Maintaining proper oral hygiene and using the right toothpaste
plays a vital role in keeping dental problems such as plaque, cavities, tartar and tooth
decay away. Visit our blog to know more about dental care and following an oral care routine
to keep teeth strong and healthy.
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Chapter 2: Target Market for Meswak Herbal Toothpaste in Bangladesh
Target Segment
Segmentation is basically dividing the market in different groups according to consumers need
and wants. It is one of the most effective tools that enables the marketer to divide the large
homogenous market into well-defined segments so that the marketer can cater the need and
wants of every individual consumers properly.
Dabur Meswak has a rare combination of ancient scripture and modern science. It basically
targets consumers seeking natural benefits in their toothpaste and is used by vegetarians,
religious and health conscious people as it is a premium herbal toothpaste. Mainly the
segmented their target market based Demographic, Geographic, Psychographic, Behavioral
segmentation
Demographic Segmentation
Age: its popularity has been enjoyed somewhat equally both in youngsters as of the fact of the
involvement of modern science and in the old people because of the fact of it being a traditional
and age old remedy for the oral hygiene.
Segmentation on the basis of price: It caters to the premium segment as the product has lot to
offer when compared to the competitors so the pricing is relatively higher than the competitors
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Geographic Segmentation
The Company segments the market on the basis of geographically (location, urban/rural,
classification etc.). They are producing based on location like urban area like Dhaka,
Chittagong, Sylhet and also considering rural area especially for rural old age population those
who need a proper oral care.
Psychographic segmentation
Values and lifestyle: values and lifestyle significantly affect a product and the brand choices.
Religion has a significant influence on the values and lifestyle. In Bangladesh most of the
people has a positive attitude towards Meswak according to religious point of view and
Meswak basically segments itself by targeting at the consumers seeking natural benefits in their
toothpaste by focusing on its ayurvedic properties making it more suitable to be used by
religious and health cautious people.
Behavioral segmentation
Meswak has focused on its benefits of being astringent and having bactericidal properties and
it has emphasized on the fact of being a rare combination of Ancient Wisdom and Modern
Science.
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Chapter 3: Major Competitors of “Meswak Herbal Toothpaste” in
Bangladesh
There are several toothpaste brands those have been operating in the Bangladesh FMCG
market. Among all these brand some of them are manufacture locally and some of them are
imported or have a foreign country origin. We have selected only those brands that can be
considered as main competitors of Dabur Meswak. The brands that we considered are
Pepsodent, Colgate, Close Up, White Plus, Mediplus, Sensodyne.
Pepsodent
Pepsodent toothpaste was introduced in the United States in 1915 by the Pepsodent Company
of Chicago. Pepsodent was launched in 1991 in Bangladesh and since then the brand has raised
the benchmark of Oral Care solutions in Bangladesh. Pepsodent has a range of toothpastes that
could take care of specific oral care needs. Pepsodent toothpaste fights germs to protect teeth
against cavities and gives strong teeth, fresh breath and healthy gums.
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Colgate
Colgate was the first toothpaste in a collapsible tube, introduced in 1896 in New York City. It
had been sold in glass jars since 1873. Colgate Palmolive provides complete oral care
protection with its various types of variants in toothpaste, toothbrush and mouthwash category.
Colgate Palmolive is doing business in Bangladesh with wide range of products in Oral care
category targeting different segments of target market. It serves the end users with different
SKU sizes and variants. Overall, this brand has received tremendous response from both of its
internal and external customers.
Close Up
Close-up is a brand of toothpaste launched in 1967 by Unilever as the first gel toothpaste. The
brand is marketed worldwide by Unilever. In recent time it is considered as the number one
toothpaste brand of Bangladesh. Closeup is a youth centric brand that gives youngsters the
confidence to break the barriers with the power of fresh breath. It is currently available in 2
flavors in Bangladesh: Menthol Fresh and Red Hot- both provide ‘Ever fresh’ breath and more
confidence.
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White Plus
White Plus is one of the most popular toothpaste brand marketed by Square Toiletries Ltd
among all the homegrown toothpaste brand in Bangladesh. White Plus Toothpaste has the
combination of cavity guard fighting against cavities and bacteria, power cleanser keeping
teeth, gums and tongue clean and plaque blaster killing the existing sticky layer of plaque in
the mouth.
Mediplus DS
Mediplus DS can consider as one of the direct competitor of Dabur Meswak toothpaste as both
of them fall under herbal toothpaste category. This is also a homegrown brand marketed by
Anfords Bangladesh a sister concern of Kohinoor Chemical Company Limited.
Sensodyne
Sensodyne is a brand name of toothpaste and mouthwash targeted at people with sensitive teeth.
In Bangladesh Sensodyne has been marketed by GlaxoSmithKline. Sensodyne toothpaste is
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recommended by dentists all around the world for sensitive teeth. Sensodyne provides proven
relief from the pain caused by sensitive teeth and provides long-lasting sensitivity protection.
If you are at risk of sensitive teeth, switching to a toothpaste such as Sensodyne can make a big
difference to your everyday life and to your overall oral health.
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Chapter 4: Biggest Marketing Challenge Facing by Meswak Herbal
Toothpaste in Bangladesh.
Current world market and its economy is growing rapidly in every day and Bangladesh is not
apart from it. Consequently numerous local and international brands are establishing their
business in Bangladesh with various type of marketing strategies. As a result competition
getting high for the local companies.
Meswak toothpaste is also facing some problems in terms of marketing strategies and
marketing plan. Here are some challenges described below
After the launch of this product, the promotion of this product was considerably low comparing
to the other toothpaste brand in the market. May be it happens to them because of lack of
expertisein Bangladeshi market and the high cost of promotion. Since the product is for lifestyle
and health conscious people, Meswak toothpaste is no more doing advertisement of their
product much on the proper media to attract the targeted people. People knows much more
about the different toothpaste brand like Pepsodent, Colgate, Sensodyne because of their heavy
and intensive marketing activity but many of the consumers don’t know about Meswak brand
properly. In the advertisement of Meswak they speaks about different type of oral care and
benefits but in order to sustain in the market they needs to reach to their potential customers by
promoting the product in different media, they need to aware the consumers. Since the target
segment is narrow Meswak toothpaste needs to promote on some specific medium like health
and lifestyle magazine. Other important advertising media like super shop self-priority,
newspaper and social media are important here. In store pop up display plays an important role
in consumer purchasing behavior but in reality there are no such in store product display for
Meswak Harbal toothpaste.
Oral care product like toothpaste industry is facing intense competition in Bangladesh. Big
local giant and on the top of that multinational companies are becoming active player and
threatening market share. White Plus (Square), Colegate (ACI Ltd.), Pepsodent & Close-Up
(Uniliver) Sensodyne (GSK), are some of the strong local players in the market. Most of these
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players are aggressive in terms of pricing, trade promotions, discounting, extending credit to
channel partners along with robust marketing campaigns both in ATL and BTL. Though strong
players in the industry can help for industry growth, being an individual player, it is always
challenging for Meswak to counter competitive pressure.
Brand loyalty is one of the biggest strengths for any organization. It’s helped the organization
to charge premium and immediately it’s boosting the profit. But unfortunately, Meswak –
Herbal Toothpaste did not get their brand loyalty compare their competitor. According to the
market research we found that pepsodent got the high market share compare to others
toothpaste. Pepsodent took 32% market share, close-up 26%, Colgate 24%, meswak 8% and
others 10%. So it is obvious that they couldn’t be able grab the customer attention and has less
brand loyality comparing to the other brands.
Product segmentation is portfolio of product at large enterprise. Its needed for every business
to satisfy their customers. Now a days every business has lots of product portfolio for meeting
their customers need. Pepsodent lunch different types of product for different people like
pepsodent Germi Check plus, pepsodent prosensetive. Closeup product category like closeup
Anti- germ mouth wash, closeup fire and freeze etc. On the contrary Meswak toothpaste has
ony one product line or segmentation to operate in the Bangladeshi market which is
considerably very poor in terms of other competitor in the market.
Awareness of products plays a vital role in consumer purchasing behavior. They have less
awareness about their product awareness. They don’t have any dental campus, workshops
activity for knowing their product to customers.
Packing problem: now a days for any organization packing is play a vital rule for expand their
business. It’s plays key of success. In toothpaste market look at the market leader like
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pepsodent, closeup they follow the series of planning for their product packing but meswak
don’t follow. Closeup its product packing is good and color of product is different to each other.
Meswak they only follow yellow color packing. So, customers are get confused and did not get
the proper idea about the product deafferentation.
The product distribution channel strategy of Meswak toothpaste is inconsistent and inefficien
as well since the target people is different- mainly health conscious people so Meswak should
distribute it more on super shop like Agora, meena bazar, shopno and other chain outlets.
During the research about this product we have visited several outlets and we have seen that in
most of the outlets this product weren’t not available, only few stores had this product but with
limited supply.
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Chapter 5: Marketing Strategy and Analysis
Porter’s fives forces model analysis
Porter’s fives forces model is an excellent model to use to analyze a particular product within
the industry. In Porter's model, the five forces that shape industry competition are:
• Competitor rivalry
The above five main factors are key factors that influence industry performance. These factors
are discussed below from the perspective of Meswak Herbal Toothpaste.
Bargaining
Power of
buyers
Threats of
Threat of
substitute Competitor
new
products or rivalry
entrants
services
Bargaining
Power of
suppliers
Competitor rivalry-HIGH
There are many existing companies serving similar products which cause competition to Dabur
Bangladesh. Anfords, Pepsodent, GlaxoSmithKline are the competitors of Dabur’s Meswak
Herbal Toothpaste.
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Bargaining Power of buyers-HIGH
There are different toothpastes available in the market. So, the buyers bargain power is also
higher. If buyers do not like our product they can easily move to another brand.
Here the bargaining power of supplier is very high as all the products are imported from India
and with joint venture of ACI Ltd., Dabur Bangladesh is the sole suppliers of Meswak Herbal
Toothpaste.
New companies entering in this industry can cause threat to the company. As people are
becoming increasingly look conscious and the industry is currently a booming one, so it is
expected that more firms including both existing and the new ones will be interested to operate
in this market. Like Anfords’ Mediplus herbal toothpaste, many companies are expanding their
toothpaste product line with herbal flavor can be Dabur’s future competitor.
There are huge threats from other substitute products. Dabur Bangladesh’s premium product
Meswak Herbal Toothpaste’s foremost competitors are Mediplus herbal toothpaste of Anfords
Company which claims to be the dentist prescribed and cure to all teeth problems in such a
cheap price. So, Mediplus are preferred by consumers more than Dabur’s Meswak according
to its price and flavors.
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Meswak Herbal Toothpaste SWOT Analysis:
SWOT Analysis
Made from the unique herb of the famous ‘Toothbrush Tree’.
One of the largest top toothpaste brand in Bangladesh.
Strong distribution network and good brand visibility.
Strengths Contains different trusted Ayurvedic (herbal) items that ensure
protection against tooth decay, plaque and attack of germs.
Does not contain any harsh chemicals.
Presence of similar toothpaste products confines market share and
Weaknesses high brand switching cost.
Limited customer base.
Huge potentiality of export.
Untouched rural and semi-urban potential.
Opportunities Better promotion and development.
By increasing in the number of look conscious consumers can be a
scope to become market leader in the near future
The target market is less aware or bothered about herbal toothpaste.
Lack of brand loyalty of customers.
Threats The number of competitors is high and in the future newer firms
might join this attractive market.
Easy availability of substitutes at a similar or even less prices.
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Ansoff’s Product Market Expansion Grid:
In Bangladesh, Meswak Herbal Toothpaste by Dabur has been in a market for a couple of years.
There already exists a market for toothpaste however, since there already are few challenges
regarding the functional attribute of the products as well as there remain few close substitutes
in the market, hence there is a positive scope in terms of broadening its target group of
customers; It would be wiser to look at the “Market Penetration Strategy” instead of choosing
other strategies. As entering the new market with current product is associated to have potential
risks, it is not feasible to choose Market Development Strategy. Designing a new product line
in the current market will lower the current market share of Meswak Herbal Toothpaste because
the substitute product might grab even a higher attention. Therefore, product development is
also not a good choice to make. Getting into a complete new market with a complete new
product has the highest possible to risk to generate loss.
Therefore, implementing the Market Penetration Strategy seems to be the most appropriate
among the four strategies to maximize the market share. The strategies that help to penetrate
the market is given in the next segment.
Meswak Herbal Toothpaste offers a high quality product at affordable price to its consumers.
The core value of this herbal toothpaste providing are relatively same or even more to its
competitor. They are not offering any special ingredients to their target audience. So, Dabur
Bangladesh may improve their product ingredients and value proposition to become distinctive.
On the other hand, they can go for product mix bundling offer with Meswak Herbal Toothpaste.
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Price Strategy
Meanwhile the market for Meswak Herbal Toothpaste is highly competitive, penetration
pricing and price skimming might not work in this case. Thus, it should go for psychological
pricing; here they should charge such a price that would make the consumers feel worth the
product’s quality for the price it is charging. For example: pricing like Tk. 99 looks more
attractive to consumers because it is just less than a penny from Tk. 100. However, this kind
of pricing strategy is a spur or incentive for consumers and it often helps to get response from
the consumers to improve sales. Then consumer would believe that the product worth its value.
Also, mixed bundling with their existing toothpaste range a lower price in bundles rather than
that if sold individually might boost sales in the market.
Promotion Strategy
Effective Promotional Strategy sometimes increase sales volume beyond expectation level.
Instead of pursuing either personal communication or non-personal communication techniques,
a mixed or integrated method would work much better. In case of non-personal
communications, repetitive and reminder advertisements through television, newspaper and
billboards need to be continued so that a kind of habitual buying process behavior can be
acquired. Moreover, sales promotion such as bundling products might also work for fostering
sales. In case of it should focus on promoting in schools and university/college campuses,
public gathering spots by offering demonstrations of the product by arranging creative games
like dart, sales coupons, and free gifts to the consumers. Interactive marketing might also work
as the use of internet especially social networking sites like Facebook is becoming increasingly
widespread not only in urban but also in semi-urban or rural markets. In addition, expert
channels could be used for better promotion, for examples if Dentist recommend our product
as positive word of mouth or opinion leaders always help to instill trust and in case of Meswak
Herbal Toothpaste this strategy might work as consumers have some sort of ambiguity
regarding this sort of products and the results. Moreover, reality shows are very popular in this
21st century; for this what Dabur Bangladesh can do is to sponsor some reality programs as
Meswak Herbal Toothpaste and ensure frequently exposing TVC in the middle of those
programs.
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Distribution (Place) Strategy
Meswak Herbal Toothpaste is available in the retail and grocery stores all through Bangladesh.
All the products of Dabur manufactured at India. The existing Meswak Herbal Toothpaste
distribution process starts from India and comes to Dhaka stored at Tejgaon central warehouse.
The product, then distributed to the other parts of Bangladesh like all other products of Dabur.
The company should be careful in selecting their sales persons. They must be vigilant about
the placement of Meswak Herbal Toothpaste in the retail and grocery stores.
Making some improvements in their distribution channel, the company can be cost effective
and earn profit in the long run.
Conclusion
Dabur carries good branding image in Bangladesh. For example Dabur Honey, Vatika oil,
Meswak Herbal Toothpaste are popular products sold in our market. Their promotional strategy
is more clear & different from the other company. But to enhance the market share & reaching
the market leader, the company should develop their promotional strategy. And if the company
becomes able to make a good impression into the mind of customer then easily go to top level
of the completion market. The quality of product must be ensured and remain constant and
promotional policy must be modifying day by day. If company can develop its customer
relation management polices then it can easily extend its market and target sales.
Furthermore, the main challenge of Bangladesh market is to grab awareness toward general
people. People have a usual thoughts that herbal is only for sick people. Eventually, making
people educated and enhancing awareness on herbal product is crucial. Finally, Meswak Herbal
Toothpaste must adopt a “360-dgree view” of consumers to fully understand all the different
ways that communications can affect customer behavior in their daily lives and simultaneously
to mitigate their marketing challenges.
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References
-Competition analysis of different toothpaste brands | Business | Marketing. (2018). Retrieved
from https://www.scribd.com/document/305084298/Competition-analysis-of-different-
toothpaste-brands
-Kotler, P., & Keller, K. L. (2011). Marketing Management (13th ed.). New Jersy, NJ:
Prentice Hall.
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