final examination report topic listerine mouthwash

LIST OF TABLESTable 2-1 SWOT Analysis………...7 Table 3-1 Listerine mouthwash price range………...10 Table 4-1 Comparison between Listerine mouthwash and indirect competitors…………...14 Table 4-

MINISTRY OF EDUCATION AND TRAINING UEH UNIVERSITY – SCHOOL OF ECONOMICS

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FINAL EXAMINATION REPORT

Topic: Listerine Mouthwash

TABLE OF CONTENTS

Table of Contents……… II

ist of Tables IV List of Figures IV List of Acronyms IV

Part 1: Introduction 1

1.1 Introduction 1

1.1.1 Socioeconomic situation 1

1.1.2 Product overview 2

1.2 Purpose of report 3

Part 2: Microenvironment’s Impacts On Listerine Mouthwash 4

2.1 Current microenvironment factors in Listerine’s marketing campaign 4

2.1.1 The company 4

2.1.2 Suppliers 4

2.1.3 Marketing intermediaries 4

2.1.4 Competitors 5

2.1.5 Publics 6

2.1.6 Customers 6

2.2 SWOT Analysis of the product brand of Listerine 7

2.3 Marketing strategies recommendations 7

Part 3: U&A Analysis 9

3.1 Consumer segmentation 9

3.1.1 Geographic 9

3.1.2 Demographic 9

3.1.3 Psychographic 11

3.1.4 Behavioral 11

Part 4: Positioning And Differentiation 13

4.1 Competitor analysis 13

4.1.1 Comparison between Listerine mouthwash and indirect competitors 14

4.1.2 Comparison between Listerine mouthwash and direct competitors 15

4.1.3 Positioning 15

4.2 Differentiation 16

Part 5: Omni-Channels Development 18

5.1 Current Omni-channel distribution of Listerine 18

5.2 Suggestion 20

Part 6: Conclusion 21

References 22

Plagiarism Result 24

LIST OF TABLES

Table 2-1 SWOT Analysis……… 7

Table 3-1 Listerine mouthwash price range……… 10

Table 4-1 Comparison between Listerine mouthwash and indirect competitors………… 14

Table 4-2 Comparison between Listerine mouthwash and direct competitors……… 15

LIST OF FIGURES Figure 1-1 Sales of Oral Care in Vietnam……….1

Figure 2-1 Sales of Oral Care in Vietnam by Category……….5

Figure 3-1 Average monthly income per capita in Vietnam from 2010 to 2020 (in million VND)……… 10

Figure 3-2 Value growth of personal care products due to COVID-19 among urban citizens in Vietnam in 2020……… 12

Figure 4-1 Brand shares of Oral Care in Vietnam 2020……….13

Figure 4-2 Visual comparison between Listerine and major direct competitors……….16

Figure 5-1 Listerine Cool Mint 750ml sales and customers’ feedback………

19 Figure 5-2 Vending machines offer Listerine in Singapore and Greece……….19

LIST OF ACRONYMS

FMCG Fast-moving consumer goods

In this day and age, oral hygiene is progressively gaining traction worldwide since people’sawareness of maintaining good oral health has increased, followed by a significant growth inspending made in dental care products The Global Oral Hygiene Market is estimated to beUSD 43.2 billion in 2020 and is expected to reach USD 51.31 billion by 2025, growing at aCAGR of 3.5%.[ CITATION Res211 \l 1033 ] In Vietnam, sales of oral care productsreached 7,017 billion VND in 2020 and is expected to continuously increase in the next fewyears.

Figure 1-1 Sales of Oral Care in Vietnam Note: Euromonitor International (2021) Oral Care in Vietnam [viewed December 28th , 2021]

In modern days, besides toothbrushes and toothpastes, consumers have a tendency topurchase mouthwash for its convenience and cost-effectiveness Antiseptic mouthwashes canhelp kill harmful bacteria, prevent tooth decay, keep fresh breath and strengthen enamel.Significantly, due to the extra precautions towards the COVID-19 pandemic, mouthwashproducts witnessed a rocket in consumption of 78% in 2020 in Vietnam.[ CITATION Nie20 \

l 1033 ] In terms of mouthwash, Listerine Mouthwash is the world’s top daily mouthwash.[CITATION Eur \l 1033 ] Listerine is the best-selling mouthwash not only worldwide butalso in Vietnam, becoming the dominant in the mouthwash market globally

This final examination report will discuss solely the product brand of Listerine mouthwash and analyze the company’s marketing strategies

1.1.2 Product overview

Listerine, a brand of oral healthcare products from the U.S.A, has been manufactured anddistributed globally by Johnson & Johnson to which the drugs giant Pfizer was sold Thisbrand name has a rich heritage of research into antiseptic properties In 1985, Listerine wasmarketed to dentists after studies showed that it was also good for killing germs found in themouth.[CITATION LIS20 \l 1033 ] Today, besides mouthwash, Listerine also offerstoothpaste, chewable tablets and self-dissolving teeth-whitening strips

Listerine mouthwash is well-known for its bold marketing slogan “Kills germs that cause badbreath.” It has been used by more than one billion people and has been sold in over 85countries.[ CITATION Joh212 \l 1033 ] The company provides numerous product ranges thatare created to solve different oral problems, mainly halitosis, gingivitis, tooth decay andcavity prevention, stain protection and teeth whitening Listerine mouthwash comes inmyriad flavors that meet the needs of their customers worldwide: the alcohol-free ListerineZero, developed mainly for the populations in Muslim nations; Green tea Listerine that issuitable for Asian markets; and Listerine Natural, designed for specifically Americans whoare obsessed with the non-synthetic ingredients, etc The product is also offered in differentbottle sizes and the price ranges variously, allowing people with different needs to purchasetheir products

Many Listerine mouthwash products have reached rigorous and thorough standards set by Dental Associations around the world, including America, Australia and Canada This

proves the effectiveness as well as the safety ensured for consumers when using theseproducts A combination of rich heritage and safety approval is considered a great vantagepoint for Listerine when competing against prominent rivals, Oral B, Colgate or P/S, forinstance.

Third purpose: to discuss how Listerine products stand out from other rivals

Fourth purpose: to discuss the multichannel/ Omni-channel distribution system of Listerinemouthwash, and give suggestions

PART 2: MICROENVIRONMENT’S IMPACTS

2.1.2 Suppliers

Johnson & Johnson spend a wealth of effort in working and setting their vision clear for thesuppliers Not only do they collaborate with high quality products and services suppliers butthey also look for partners whose vision aligned with that of Johnson & Johnson.[CITATION Res21 \l 1033 ] The company set strict regulations, practices and provisions fortheir suppliers in order to do businesses together In addition, at the company’s SupplierQuality Academy, they “provide training to suppliers and supplier-facing Johnson & Johnsonemployees to build and strengthen strategic competencies that impact the overall quality andperformance of the end-to-end supply chain”.[ CITATION Joh21 \l 1033 ] Furthermore,Johnson & Johnson and their suppliers’ collaborations culminated through the Supplier-Enabled Innovation program, which aims at reinventing the future of health by combining thesuppliers’ broad and distinct experience to co-create new solutions that solve unmet needs.[ CITATION Joh211 \l 1033 ]

2.1.3 Marketing intermediaries

Resellers, including wholesalers and retailers, are key distribution channel firms of Listerinemouthwash Consumers can easily purchase a bottle of Listerine mouthwash at supermarkets,markets or vendors in Vietnam Additionally, Listerine also has multiple official onlinechannels that offer the product at far more compelling price on both

Listerine’s official website and popular e-commerce platforms worldwide, namelyamazon.com, Taobao, Shopee, Lazada, etc As having such broad coverage globally, Johnson

& Johnson cooperate with myriad physical distribution firms so as to consolidate their supplychains to each and every area of the world

2.1.4 Competitors

In terms of indirect competitors, there are other oral hygiene and healthcare products such astoothbrushes, toothpastes, teeth whitener, floss, breath fresheners, etc In 2020, mouthwashproducts took up only 6 percent of the retail volume in Vietnam compared with much morecompetitive figures of toothbrushes at 31 percent and toothpastes at 63 percent [CITATIONOra21 \l 1033 ]

Figure 2-1 Sales of Oral Care in Vietnam by Category Note: Euromonitor International (2021) Oral Care in Vietnam [viewed December 28th , 2021]

In terms of direct competitors, other brand names in the market that can be consideredprominent rivals are mouthwash from Colgate, P/S, Oral B or Crest When competing againstother rival product brands, Listerine has numerous vantage points alongside with somedemerits However, Listerine’s marketing teams have innumerable strategies to

consolidate the product brand’s position in the market For example, in Muslim countries,one of the most difficult markets, people are not allowed to consume alcoholic products due

to ritual So as to attract the populations in such markets, the marketing teams in Malaysiaonce ran a significantly impressive campaign as introduction of the Natural Green Teamouthwash to the public The campaign is primarily about setting up sampling counters atcrowded supermarkets and requiring customers to try their products and bring out theirbrightest smile after using Listerine Each smile captured would help donate one MalaysianRinggit (RM1) to the orphanage fund Eventually, the Smile Campaign attracted 86 percent

of their target consumers Most importantly, this allows Listerine to win over their rival,Colgate Plax, which was initially non-alcohol before Listerine’s campaign, with an increase

of 7 percent in the market share.[ CITATION AnT14 \l 1033 ]

2.1.5 Publics

At Johnson & Johnson, there are numerous publics working to promote their products as well

as communication channels between the company and others Listerine mouthwash has greatcoverage on traditional TVCs and print ads as middle-aged and older people have a tendency

to watch TV and read news regularly In addition, Listerine owns social media profiles thatattract a lot of people: nearly 2,5 million followers on Facebook, 15,5 thousand followers onInstagram Moreover, Johnson & Johnson offers a web site called Media Center(https://www.jnj.com/media-center) where they keep updating about the company’s news andproducts, including Listerine The company also makes significant effort in following thegeneral public’s behaviors and attitudes towards their products and activities Positive brandimages not only allow the company to attract more customers but they also affect customers’buying behaviors

2.1.6 Customers

Listerine specifically and John & Johnson in general carefully study different market types’special characteristics in order to fulfil the needs of each and every type In the consumermarkets, they offer wide ranges of products, varying differently in sizes, flavors and prices tomeet individuals’ needs Moreover, due to the fact that each consumer market in differentcountries and areas requires different standards to be met, Johnson & Johnson makes greatefforts to change to commit and follow the regulations In addition to that, businesses in thereseller market, perhaps the most important market to the company, also have specific

requirements that force the marketing team to follow Partnering harmoniously with the reseller markets could help increase Listerine’s revenues.

2.2 SWOT Analysis of the product brand of Listerine

Table 2-1 SWOT Analysis

Expert testimonials: hold medical

approvals and certifications from

prestigious medical board

Comes in different flavors and bottle

sizes

Distributed worldwide

Positive brand image marketing

campaigns on TVCs and print ads

Rich heritage

Advertising strategies: fear sells

Lucrative opportunities in suburban and rural area markets

Introduction to new product variantsPartner with large organizations likeschools, colleges, hotels and resortschain, etc

Unpopular products in suburban and Consumers may look for morerural areas organic products

Lack of innovation Rivalry of new entrants

Unsuitable for children: lingering Rivalry of current competitors

cool effect

Based on the SWOT analysis above, I would like to give some suggestions of marketingstrategies related to the microenvironment for Listerine in hope of increasing the company’srevenue

First, so as to leverage their strengths, I suggest Johnson and Johnson exert more of theirpower to regions that they have not reached Listerine is distributed in 85 countries, whichmeans there are many more lucrative markets they could consider In addition to that, theyshould also attack more in suburban and rural areas in countries that have already introducedtheir products as well Moreover, Johnson and Johnson’s workforce involves professionals inthe field, they should invest more in new product lines that fulfill consumers’ diverse needs.For instance, I suggest innovation in products for children, in both packaging and flavors.Another recommendation is that they should plan to collaborate

with large and luxurious chains of hotels and resorts worldwide where their main customersare people from high-income backgrounds In other words, these businesses accept costlynecessities so as to best serve their customers This would be a great chance for Listerine toboost their coverage and be more familiar to people in upper classes of the society.

In order to minimize threats, Listerine should meet competitions with advanced designtechnology To be precise, they should develop a product line that offers organic ingredientsthat leaves less burden on the environment On top of that, they should consider makingimprovements on fuel consumption, which results in less environmental damage.Furthermore, the company needs to search for new prospects in the market and retain oldcustomers along To be prepared when countering weaknesses and threats, Listerine shouldbuild strengths for defensive strategies By enhancing their product lines, they are alsoreducing threats of competition This requires the company to not only hire competitive andskilled staff but also improve their products’ quality

To conclude, Listerine should, firstly, maintain their old consumers by constantly fulfillingtheir needs and improving their quality over time By doing this, the company is allowed tonot only increase their market share but also keep up their customer retention At the sametime, Listerine should focus on introducing new technology and products that help attractnew customers in new markets This helps them to prolong their influence worldwide as well

as secure their position in competition with other brands

as in crowded areas.

In addition, Johnson & Johnson and Listerine pay considerable effort in customizing theirproducts based on geographical differences in needs and wants to attract more customers Forinstance, Listerine combined a locally relevant campaign idea with the core demographictargeting, introducing the Listerine Miswak during the Ramadan period that successfully earnfavorability from the population in the Middle East countries

3.1.2 Demographic

In terms of age, as a fast-moving consumer product, Listerine mouthwash’s consumer agespectrum varies widely, mainly adults 18 years old and above These people are moreconcerned with the benefits of mouthwash and regularly, they are the main shopper in ahousehold rather than younger people Additionally, most children are unfavorable of thelingering effect of mint extract, therefore not being targeted by Listerine

Regarding genders, although both genders can use Listerine mouthwash as frequently,women have higher tendency in purchasing mouthwash for several reasons, (1) women arelikely to care more about oral health and hygiene than men, (2) in a household, women arelikely to be the one who go shopping

As regards income segmentation, although Listerine offers affordable prices for theirproducts, ranging from 59.000 VND to about 150.000 VND, it is difficult for people from

low-income backgrounds to purchase Listerine mouthwash habitually According to 2014’s

UK Adult Dental Health Survey, those with lower incomes suffer from poorer dental health

as a result The study revealed that those with a lower income, lower occupational class andhigher deprivation generally suffered from poor oral health Persons in these groups hadmore tooth decay, gum disease and tooth gaps as well as fewer teeth overall.[ CITATIONAPS16 \l 1033 ]

It takes roughly 20 days for one person to fully consume a bottle of 750ml mouthwash (20mlused each time, twice a day as the given usage from Listerine), which means they have tospend around 200.000 VND monthly to be able to use mouthwash everyday in a year.Therefore, in Vietnam, Listerine mouthwash primarily aims at the populations in the middleclass and upper class

Table 3-1 Listerine mouthwash price range

Listerine Cool Mint Zero Alcohol 750ml 136.000 VNDListerine Gum Care Zero Alcohol 750ml 137.000 VNDListerine Natural Green Tea 750ml 137.000 VNDListerine Tartar Protection 750ml 146.000 VNDListerine Healthy Bright 750ml 146.000 VNDListerine Botanically Inspired Flavor Blend 250ml 59.000 VND

Note: Information retrieved from Johnson and Johnson Official Store on Shopee Mall Vietnam

( https://shopee.vn/shop/78546729/search?shopCollection=16555907 ) [viewed December 31 st , 2021]

Figure 3-1 Average monthly income per capita in Vietnam from 2010 to 2020 (in million VND)

Note: Minh-Ngoc Nguyen (2020) Average monthly income per capita in Vietnam 2010-2020

( https://www.statista.com/statistics/1021888/vietnam-average-monthly-income-per-capita/ ) [viewed December 31 st , 2021]