PERFORMANCE METRICS

Case - 2
Choosing the right metrics for Listerine brand management in
Brazil

Submitted by
22F152 Sharan
22F253 Siddharth
22F322 Gautham
22F407 Akshata
 Batch - 2022-24
Q1. Assess Listerine's position in the Brazilian market, what should be the key objectives
for the brand?
Ans: 1. Market Leadership and Share: One important advantage for Listerine is its market leadership
in the mouthwash division. With a volume market share of 41.7% in 2015, the brand is clearly in the
lead. But protecting this leadership is crucial, particularly in a cutthroat market.

2.Consumer Segmentation: Listerine has achieved success with its strategic aim of appealing to
"Category Lovers" through consumer segmentation. These customers contribute to higher-value
purchases because they are more devoted to the brand. The company should keep in mind and
accommodate these customers' unique requirements and preferences.

3. Innovation: Listerine has been able to stay relevant and appeal to a wider range of consumers
because to its capacity to develop. New products and tastes, such Listerine Zero, have been
introduced. To stay ahead of consumer trends, the business should keep funding research and
development.

4. Distribution: Listerine's reach has increased as a result of its growth from mostly drugstores to
supermarkets and grocery stores. To increase the brand's market presence, more distribution
methods should be investigated.

5. Dentist Engagement: Since dentists have a sway over consumer decisions, collaboration with them
is essential. Listerine ought to persist in cultivating connections with dentists and furnishing them
with evidence-based knowledge to suggest Listerine merchandise.

6. Consumer Education: Listerine successfully promoted the mouthwash category by running a "21-
day challenge" campaign that increased consumer awareness and trial rates. The company should
keep up these teaching campaigns to underline how important oral hygiene is.

7. Brand Visibility: It's critical to raise brand awareness at the moment of sale. This can be
accomplished by the brand through clever packaging, clever promotions, and persuasive marketing
efforts that persuade customers to pick Listerine over rival products.

8. Maintaining a Careful Balance Between Short-Term and Long-Term Goals: Listerine should
carefully weigh long-term brand equity and profitability against the expansion of short-term market
share. This means staying away from actions that jeopardize the brand's sustained competitive edge.

9. Competitive Strategy: Listerine should constantly assess the competitive environment and modify
its strategies as necessary to counter competition, especially from Colgate. This entails determining
Colgate's advantages and disadvantages as well as seizing chances for uniqueness.

10. Data-Driven Marketing: It's critical to use customer insights and market research to make data-
driven decisions. Listerine should keep gathering and analysing data to better understand consumer
behaviour and modify its marketing tactics.

Listerine's position in the Brazilian market is strong, but it must remain vigilant to protect its
leadership and seek opportunities for growth. The brand should continue to innovate, educate
consumers, engage with dentists, and enhance brand visibility. Balancing short-term and long-term
goals is key, as is closely monitoring the competitive landscape. Data-driven decision-making will
ensure that Listerine remains adaptable and responsive to changing market dynamics.

Q2. If you were the brand manager for Listerine, which metrics would you focus on. What
are the pros and cons of the approach you would take?
1. Ans: Market Share: Monitoring Listerine's market share is essential to understand the
brand's position in the mouthwash market. Increasing or maintaining market share can
indicate the effectiveness of marketing strategies and the brand's competitiveness.
Pros: It is an effective way to visualize Listerine's dominance or growth in the market.

Cons: It only provides a snapshot of the competitive landscape and does not offer insights
into the brand's loyalty or customer satisfaction.

2. Brand Awareness: Gauges gauging how many potential customers recall or recognize
Listerine as a mouthwash brand.
Pros: This helps evaluate the effectiveness of marketing campaigns aimed at enhancing the
brand's visibility.

Cons: Brand awareness does not necessarily translate into sales or customer loyalty.

3. Sales Volume and Profitability: Evaluating sales data and profitability would illustrate the
financial performance of the brand.
Pros: It gives a clear view of the returns on marketing investments and the brand's overall
financial health.

Cons: Sales volume can be influenced by many variables, such as market trends and
competitive activities, which may not entirely reflect the brand's performance.

4. Customer Satisfaction: Collecting data on customer satisfaction would provide insight into
how the brand is performing in terms of product quality and customer expectation.
Pros: High customer satisfaction often equates to repeat purchases, customer loyalty, and
positive word-of-mouth, which could effectively promote the brand.

Cons: It could be challenging to measure customer satisfaction accurately and consistently

due to subjectivity in customer perception.

5. Product Trial Rates: Given the implementation of the 21 day challenge campaign, measuring
product trial rates would be necessary to evaluate its effectiveness.
Pros: Increases in product trial rates could suggest effective marketing strategies and
campaigns.

Cons: High trial rates do not guarantee continued use or purchase of the product.

6. Distribution and Retail Visibility: Monitoring the availability and visibility of Listerine
products at retail stores can help evaluate the brand's presence and accessibility to
consumers.
Pros: Strong distribution channels and prominent retail visibility can ensure that Listerine
products are readily available to potential customers, enhancing the brand's market reach
and potential sales.
 Cons: Assessing distribution and retail visibility may require collaboration with partners, and
accurate data collection can be challenging. It is important to factor in other metrics like
sales and market penetration to understand the effectiveness of distribution efforts.

7. Gross Rating Points (GRP): As mentioned in the case, Listerine increased its TV spending, so
it would be important to assess the GRP, which measures the size of the audience reached by
a specific media vehicle or schedule.
Pros: It helps gauge the effectiveness of the media campaign and is useful when comparing
different media options.

Cons: GRP does not consider the quality of impressions or engagements and does not
directly link to sales or market share.

Focusing on these metrics would provide all-around insights into brand recognition, competitive
landscape, financial performance, customer satisfaction, and campaign effectiveness.

Q3. If you pursue market share, will it affect brand profitability?

Ans: Yes, gaining market share has an impact on the profitability of a brand. There are a few possible
scenarios in the Listerine situation where this might occur:

• Expenses associated with marketing and promotion would rise as Listerine would have to
spend more on these initiatives to increase its market share. In the near run, this would raise
expenses, which would lower profitability.
• Price competition: Listerine's rivals can cut their prices in response to its increase in market
share. This may put pressure on Listerine's profit margins and lower it.
• Increasing production and distribution costs: Listerine will have to make investments in more
production and distribution capacity as it sells more items. This can potentially result in more
expenses and worse profitability.

However, gaining market share may also have advantages. For instance, economies of scale brought
about by a bigger market share can lower expenses and increase profitability. Furthermore, Listerine
may be able to negotiate better terms and profits with suppliers and retailers if it has a bigger market
share.

Market share pursuit's ultimate impact on brand profitability will rely on a variety of circumstances,
such as the industry in question, the company's competitive strategy, and the state of the economy
as a whole.

In Listerine's situation, we think that going after market share will eventually boost the profitability
of the business. Listerine is a well-known brand with a devoted following. Additionally, it is in a
strong position to compete in the Brazilian oral care industry. Listerine can grow its market share and
profitability by making investments in marketing and promotional initiatives as well as by broadening
its network of distribution.

It's crucial to remember, though, that Listerine must exercise caution in order to avoid short-term
profitability sacrifices in its quest for market share. Listerine needs to keep a close eye on its margins
and expenses to make sure company isn't going overboard.