XIBMS – TRUST TOOTHPASTE

XIBMS – TRUST TOOTHPASTE

Study the Case entitled \”Positioning \’Trust\’ Toothpaste\” and give your specific recommendations regarding the action to be taken by the company. Your decision must be based on a careful analysis of the situation given in the case and your answer should be precise and up to the point.

Positioning Trust\’ Toothpaste

In September 1990, Mr. Sarin, the Marketing Manager of Deepa Products (P) Limited was wondering what marketing and product positioning strategy the company should follow for launching their two new brands of toothpaste. Trust Night and Trust Regular in a market which was becoming highly competitive.

Deepa Products (P) Ltd. was one of the successful manufacturers of various types of packaging materials for both industrial and consumer products. Established in 1960, the company has shown substantial growth over the years. Much of the company\’s growth was attributed to the high quality of its products and also the systematic manner in which its marketing decisions were made.

 

In 1990, keeping in view the growing market for consumer goods, the top management of the company decided to diversify into new consumer products areas. In the first instance the company thought of entering into the toothpaste market. Depending upon their success in the market, the company would decide their expansion plans into other areas of consumer goods sector.

The company chose to enter toothpaste market simply because the market for toothpaste was growing fast almost by 15 to 20% in India and it provided enough profit opportunities. The market was dominated only by a very few players. Further Mr. Sarin felt that there was scope for capturing a significant market share in the growing toothpaste market, since the company\’s products had some unique features to meet the emerging new market segments.

Questions

1. What marketing strategy should be designed by Mr. Sarin to be able to achieve the targeted 5% market share?
2. How should Deepa Products (P) Ltd. position Trust Regular and Trust Night to induce customers to buy it? What should be the key benefits of their toothpastes?
3.  Should the company price its products economically, or should it aim for premium pricing?

XIBMS – TRUST TOOTHPASTE

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