New Delhi, Jan 25: Angling for a firm foothold in the premium segment (Rs 20 and above) of the Rs 400-crore toothbrush market, Oral-B Laboratories, a global division of the Gillette company, today announced the launch of its New Oral-B Advantage toothbrush, priced at Rs 30.To drive trial and usage of the new product, the company has tied up with Prayaas, a Delhi-based NGO for a novel scheme. Under the scheme, consumers can exchange their used toothbrushes for a free Oral-B Advantage. In return, the company will donate Rs 3 for each old toothbrush collected, to Prayaas. To be launched in mid-February, the two-day scheme will be announced through print ads and will cover six major cities through more than 100 outlets.
Oral-B's long-term gameplan for Advantage will centre around its unique product features and the brand's strong equity with the dental profession. The launch will be supported by an ad campaign -- electronic and print -- created by its earlier ad agency RK Swamy BBDO (the account has subsequently shifted to Mc Cann Erickson following a recent international alignment of accounts), display drives and Indian Shaving Product Ltd's (ISPL) 32 lakh outlets for distribution.
The premium segment is currently the fastest growing segment (value wise) of the toothbrush market. From just 4.6 per cent in January 1998, the premium segment has shown stupendous growth valuewise: by August'98, it was up to 6 per cent; by August '99, it doubled to 12.82 per cent and by September '99 it's up at 20 per cent. The other segments in the toothbrush market are the low price segment (below Rs 10), low midprice (Rs 10-Rs 15), and upper midprice (Rs 15-Rs 20).
Apart from the primary reason -- consumers are becoming more conscious of hygiene and product attributes -- contributing to the shift to the premium segment, the other major reason for the shift is that manufacturers themselves are pushing the premium segment. Reason: the margins are higher. The margins in the premium segment are believed to be five times more than on the average toothbrush.
The Rs 400-crore toothbrush market (300 million in units) is shrinking in terms of volume, but is growing value wise by about 2 to 5 per cent. ``While there is no unit growth, the market is growing value-wise by about 5 per cent,'' says Amal Pramanik, regional business director, Oral-B.
Oral-B came into India in 1996 with the launch of Oral-B Plus, priced at Rs 18 and an year later acquired the well known brand Prudent in 1997. The company has adopted a two-pronged approach through the marketing of the two brands: while Prudent addresses the volumes market with its `value-for-money' products, Oral-B with its three products -- Oral-B Plus, Indicator and now Advantage -- focuses on value. Together, they capture a market share of about 10.2 per cent, as per the September '99 ORG-data. The toothbrush market in India is highly fragmented with about 51 companies, 167 brands and about seven MNC participating in the product category.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.