Choosing the Right Metrics for Listerine Brand Management in Brazil Case Study Solution
Consumer awareness
Pros:
- Consumer awareness was expected to bring an improvement inthe brand awareness among consumers.
- This would provide the consumers with an opportunity to compare Listerine products with other mouthwash products offered in the market.
Cons:
- Despite the advantages, one possible con of consumer awareness was associated with an unbalanced product supply.
Visibility at the point of sale
Pros:
- Increased visibility at the point of sale resulted in effectively communicating the purpose of the product with the customers.
- It provided me with an opportunity to gain the interest of more customers and improve the encouragement through interaction with the business.
Cons:
- There was a requirement to react to the branding approaches of the customers,but it lacked the distribution of free samples which were less effective and costly.
Trial rate
Pros:
- The placement of Listerine mouthwash for free in public bathrooms allowed customers to give Listerine a try.
- This was aimed to deliver true proof of concept,which increased the probability of the product to increase sales during the trial period.
Cons:
- Any negative feedback in the trial period might influence the interest of other people to try Listerine for once.
Larger SKU
Pros:
- It allowed getting the product easily noticed by the customers assisting customers to provide a quick response.
- It allowed the maintenance of stock in the shelves of the store, to make sure that the product was in stock to be purchased.
Cons:
- There was a risk of a perception about the quality and value of the product by keeping the product on the stock, for a longer period.
Essencial support to overall objectives:
Based on the primary consumer base belonging to A and B social classes and Colgate targeting the population of the poor region;the launch of Essencialaround 15 percent lower as compared to the average brand price. As the objective was to match the lower average price of Colgate;it gained a 2 percent market share after a year of its launch. Similarly, it represented a significant increase in the category growth and market share. But, the alcohol-based product formula restricted the dentists from recommending it to the patients despite its closer interaction with the middle-class as well as wealthier Brazilians.
Listerine Zero support to overall objectives:
Against the response to the launch of Essencial;the organization launched Listerine Zero – a less intensive mouthwash,because one of the key reasons behind decreased sales of Essencial was the strong flavor that was not appreciated by amajority of the customers. The launch of Listerine Zero led to the creation of a point of parity with Colgate. This also allowed J&J to bring in new customers, which helped it in becoming a popular category. Similarly, it brought an improvement in the product’s visibility at the point of sale,due to a higher variety of products and an increased gain in the shelf share. Additionally, the provision of consistent research information to the dentist explained the importance of antiseptic mouthwashes due to which dentists started recommending Listerine Zero to their patients. Based on these facts, the launch of Listerine Zero successfully supported the overall objectives of the organization.
A decline in market share:
As per the revenue share of Listerine given in Table 3;there was a decline in the market share from 2011 to 2014. The decline in market share was not only experienced by Listerine but also by Colgate. Due to this reason, Listerine would invest in the research and development to bring innovation in the product in the hope of improving its market share. The innovation would be mainly based on the needs and demands of the customers, to be safisted. It would be so, because of the organization’s inability in meeting the consumers’ needs and demands, leading to the is witch of customers from one brand to another. Similarly, there would be a need to offer products at lower price but also with a maintained product quality.
Top-of-mind recognition:
The approach of top of mind brand recognition in the minds of customers from the overall oral care products offered in the market, was to some extent,an important marketing metrics. Although Listerine was the top of mind product in the mouthwash category; the perceptions of consumers changed with time. This was mainly due to the change in the promotional strategic approach, product innovation, consumer awareness and discounted offers offered by the products. Thus, the outcome of these metrics might be based on the customers’ preference because many of the customers represent Listerine as a top of mind product but would still prefer to purchase Colgate.
Significance of the “21-day challenge” campaign:
The 21-day challenge campaign was aimed at improving the oral care routine of people in Brazil. Due to this reason, the launch of this campaign promised customers to refund in case of dissatisfied feedback after 21 days of use. Similarly, an increase in TV spending allowed the organization to experience higher points of gross rating in the category of mouthwash. This provided an access for the company to reach a larger customer base and to successfully promote the 21-day challenge campaign. This significantly improved the confidence of customers in this category, without having toinvest a higher cost with the risk of unfavorable outcome.
Significance of the “Boca” campaign:
The launch of a television commercial Boca,which means mouth in Portuguese posed some internal challenges to Art. The challenge was mainly associated with getting the content approved by J&J to continue further distribution. The offering of a good balance between the emotional and rational message allowed the company to encourage the customers to initiate the use of Listerine with a certain frequency. The activities in the advertisement were more connected to the daily life of an individual rather than continuing with the traditional communication in the bathroom. Thus, the Boca campaign was successfully followed by the placement of Listerine in public bathrooms.
Significance of the new larger SKU:
Although a new larger SKU was a good strategic approach to promote the in-store visibility of the product. Recency – the time duration since the last purchase of a customer was one of the major concerns. Similarly, it was realized by the management that antiseptic mouthwashes consumers had fewer visits to retail stores for the frequent purchase of this category. Thus the introduction of new larger SKUs was not of great significance,because the company had a strong presence in the channel of drug stores. Due to this reason, there was a requirement to expand itsproduct distribution to the grocery store channel................
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