10 step marketing plan for Close up

10 STEP

Marketing Plan for CLOSE-UP
Bong De Ungria
January 2011

See the Simplified Guide to 10 Step Marketing Plans
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Disclaimer
This 10 Step Marketing Plan is part of the mandatory
requirements of Prof. De Ungria’s marketing
management class.
The data included in this report are based on publicly
available data such as those on internet websites,
news, package declarations, public reports.
When appropriate, data are “masked” so as not to
create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
and facebook so that there is easier sharing among
students from different marketing classes.


Steps 1 to 5

Coming close to the teens…
1.
2.

3.
4.

5.

Close-up PTM are “teens at heart”
Who want to feel confident up-close to their
preferred sex.
Can choose Colgate & Happee
Gap is all other brands are more known for
preventing tooth decay & providing savings
The market size is P 15 Billion. Close-up
niche is P3 Billion.


Steps 6 to 10

Teens pay for confidence
6.

7.

8.
9.
10.

Close-up is a colorful toothpaste
gel and mouthwash in 1
Is priced 10% less than Colgate
but 30% more than Hapee
Uses TV, events & experiences
Is distributed nationwide

Uses niche approach to win


1.Close-up primary target
market (PTM) are “teens” at
heart






13-24 years old, social class AB and C, single
without kids
Studying or just starting work, actively dating
or pa-cute towards the preferred sex
Brush 3x a day, and demand long lasting
fresh breath and white teeth to gain that
extra confidence


PTM needs to be loved by
their special someone…
I am happy when I have
a romantic partner

Self-Actualization
Needs
(Self-Development
& Realization)

Esteem Needs
(Recognition,
Status)

I want to be loved

Social Needs (sense of
belonging, love)

Safety Needs (security, protection)

Physiological needs (food, water, shelter)
Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler


2. Teens have unique
needs, wants & demands
Teens “desperately” need to belong, to be loved, gain
self-Esteem, and achieve Self -actualization
Teens prefer, choose Close-up over other toothpastes
because of Taste, Freshness, Color, packaging, price,
credibility& awareness of company, brand promise
of confidence up close; PDA approval,
Teens demand
Whiter teeth, Fresher breath, no tooth decay, long
lasting, More confidence to come close to the
their preferred sex, Feel more sexually attractive

3a. Close-up has many
formidable competitors


Direct: Colgate, Hapee, Unique, Beam,
Sensodyne toothpastes



Indirect: Mouthwashes, Breathmints, gums,
candy, breath spray, water



Variables: Age, Price, packaging, specific
use, convenience of use, availability,
Occasion of use, brand promise of
confidence up-close and personal to
preferred sex


Close-up is #1 in niche:
premium product for teens

as of 2005
Price vs. Age Matrix

Price/
Age
Matrix

High
price
Low
Price

0-13 yrs

Colgate
kids

Hapee
Unique

13-24 yrs

Close
up

25-49 yrs

Colgate
total

Hapee

50yrs up

Sensodyne

Close-up is #1 in niche:
premium product for teens

as of 2011
Price vs. Age Matrix

Price/
Age
Matrix
High
price
Low
Price

0-13 yrs

Colgate
kids

13-24 yrs

Colgate
Fresh

Close
up
Hapee
Fresh

Hapee

Unique

25-49 yrs

Close
Up
whiten

Colgate
Total +
whiten
Hapee
Complete
+ whitening

Unique

50yrs up

Colgate
Sensitive

Sensodyne


Close-up niche positioning to the
teen market up close…

as of 2005
Benefit Positioning vs. Brand Matrix

Functional Benefit
Prevents Tooth Decay
Whitens Teeth
Freshens Breath
Mouthwash in 1
Fresh Confidence
Protect 24 hours
Fun for kids
Saves money
Reduces teeth sensitivity

Colgate
Kids

Colgate
Total

Close Up
Gel

Hapee
Kids

Hapee
Regular

Unique

Sensodyne

Many competitors in prevent tooth decay and saves money
positioning.


Close-up’s niche is being crowded
so it strengthened its key
differentiator (kiss!)
as of 2011
Benefit Positioning vs. Brand Matrix

Functional Benefit
Prevents Tooth Decay
Whitens Teeth
Freshens Breath
Mouthwash in 1
Fresh Confidence
Confidence Up Close to Kiss
Protect 24 hours
Fun for kids
Saves money
Reduces teeth sensitivity

Colgate
Colgate Colgate Total+ Colgate Close Up Close Up Hapee
Kids
Fresh Whitening Sensitive Gel
White
Kids

Hapee
Fresh

Hapee
Total +
Whiten Unique Sensodyne

Harder to stand out amidst the competitive clutter.


Hapee has “followed” Colgate
and Close-Up positioning and
offers more for lower price
Hapee has products
which match
“Colgate Total” and
Close Up”
confidence and
teeth whitening
postions


4. Close-up positions strongly
in a niche market opportunity
Close-up is the only toothpaste
 that gives shiny white teeth and fresh breath
 for teenagers
 who want to feel confident when up close and
personal when kissing their preferred sex partners.
Colgate Fresh Confidence & Hapee Fresh are trying to

crowd/ copy this position.
Traditional positioning has been on broad segments of
the market with emphasis on preventing tooth decay,
whitening & low price.


4. “Positioning”: brand
identity from the maker
The Closer, The Better
Fresher Breath & Whiter Teeth for
the confidence to get close, only
from Close Up!
Source: Unilever Philippines website


4. Close-Up Positioning from
the global perspective…
Close-Up gives confidence in those very "up close and personal"
situations.
Couples with bright smiles in very "close" situations are featured on
the packaging, and commercials depicted youthful adults
blowing kisses at each other.
Gives fresh breath, white teeth and, subsequently, a little extra
self-confidence and sex appeal.
Symbolized by attractive white smiles in very close situations.

Source: Unilever Global website


5a. Based on competitor press

releases, toothpaste market is
P15 billion
Nov. 2005: Market size for toothpaste: 10 Billion
 Colgate: 50%
 Close Up: 20%
 Hapee: 15%
2007: Hapee becomes #2 brand, reaching 20% share. Retains this
20% share until 2010.
2009: After 2 decades of continuous growth, market declines
13%. Companies reduce prices. To stay competitive, Hapee’s
prices cut by 20%.


5a. Based on competitor data,
toothpaste market is P15 billion
References






/>November 28, 2005, Bernie Cahiles-Magkilat, Manila Bulletin
/> />Pinoys brush teeth less or use less toothpaste
By Paolo Montecillo
Philippine Daily Inquirer
First Posted 00:59:00 01/31/2010


5b. Based on Unilever data,

where close-up share is 20%,
total market size is 15 billion
1.

2.

3.

Unilever Philippines sales data: Closeup sales may be P3 billion
Unilever claims market share of 20%
Then total toothpaste market size is P
3 billion/0.2 = P 15 billion


5c. Consumer data indicates
a size of P 22 billion
Toothpaste Usage:
60 of 90 million Filipinos brush average of
2x per day using 5 mL toothpaste
which costs around P0.50 per
brushing
60 M x 2 x P0.50 X 365 = P22 billion


5. Concluded that toothpaste
market is 15 billion
1.

Competitor data= P15 B

2.

Company data = P 15 B

3.

Customer Usage data = P 22 B


Close-Up, like Colgate own
superior displays on shelf.


6b. What makes Close-Up
different as a product?






Only Close Up has germ-fighting mouthwash to give
you long lasting fresh breath!
Only Close Up has Microwhiteners and Vitamin
Fluoride System to give you whiter and stronger
teeth.
Close Up is the only Philippine toothpaste that is
recommended by both the World Dental Federation
and the Philippine Dental Association.
From Unilever Philippines website

6b. Close-up offers longlasting freshness in 8 variant
1.
2.
3.

4.
5.
6.

7.
8.

Close
Close
Close
Close
Close
Close
Close
Close

Up
Up
Up
Up
Up
Up
Up

Up

Red Hot
Menthol Chill
Icylicious
Lemon Mint
Crystal Frost Winter Blast
Crystal Frost Cool Spice
Milk Calcium
Spa Moisture
From Unilever Philippines website


7. Price-

Brands are aiming for “affordable
price points: P 20, 50, <100”. Very
hard for consumer to compare
ACTUAL RETAIL PRICES AT WALTERMART SUPERMARKET (FEB. 8, 2011)
Colgate
Hapee

Close Up
Size (mL) Gel Gel
190
160
150
74
100
54

49
90
50 35.25 31.75
40
25
17.5

White Fresh
Prof.
Now Confidence Clean
109.5
65

Sensitive

Complete
+ Whiten Gel

Unique

Fresh Whitening Cavity
59
49

109.5

82.75
55.75

55.75 51.75

44
75.5

Pepsodent

50
34.75

75.5

36

29.75 24.75
47

47

20

Tabulation of 8 sizes, 5 brands, 12 variants