LIBB

PHARMACEUTICALS
A Case-Study
Presented by-
•Gagandeep Singh
•Sukhdev Singh
•Jagdeep Singh
•Amritjot Kaur
•Harpreet Jassal
•Aprajita sharma
 LIBB PHARMACEUTICALS
• Market share of libb pharmaceuticals declined from 15% to
present 10%.
• Firm should undertake attitude research on toothpaste market
to determine
 Can consumers attitude towards brands predict individual
consumer brand preference.
 What perception do people have of Alive toothpaste?
 What are preferences for and perceptions of the other major
major brands of toothpaste?
 How can Alive toothpaste best be positioned in the market
place?
BACKGROUND-

• Libb pharmaceuticals was started in 1855, founder Phillip

developed an all purpose skin ointment
• By early 1900s firm was manufacturing & distributing wide
line of pharmaceutical & personal care product.
• Firm manufactured 4 different type of toothpaste.
• By end of world war II firm decided Alive will be
firms only brand of toothpaste
• It will be modified & reformulated as appropriate
to keep the brand competitive with changing
market conditions and potentials.
PRODUCT & POSITIONING-
• Alive positioned as an all-in-one mouth care product
•Tag lines:
•Alive toothpaste polishes your teeth as bright as any other
brand
• Alive contains special ingredients that freshens your
breath
• Alive contains special fluoride to reduce tooth decay
• Alive brightens & protects your teeth & freshens your
mouth
• Brand advertisement- TV commercials, day & prime time
• Focus on boy meets girl & vice versa
• 2nd largest budget to national magazines with some use of
Sunday newspaper supplement.
• Focus to reach as many consumers as possible with the
amount of promotional dollars available.
 Research Methodology Used
Steps Involved were:-

1.Determine the relative product attributes

2.Design a questionnaire and testing the consumer`s
abiltity to answer them.
3.Do a pre-test of the research methodology.
4.Nation-wide administration of the survey.
Product Attributes Selection

20 small focus group interviews were conducted

. The most frequent attributes discussed were:-

1.Decay prevention
2.taste/flavour
3.Freshness of mouth
4.Whitens teeth
5.Price
 Pretest and final questionnaire
•Pretest done in 100 households
•Final questionnaire was sent to all the selected respondents.
•Final questionnaire was sent to 2000 households selected
demograhically.
•A small gift of approx 2$ was given to each respondent.
•78.5% of respondents did respond.
•However Out of 78.5%,only 63.6% were considered usable
i.e. 1571 out of 2000.
Questions asked were as follows:-

1. How would you rate the various brands on the bases of

various attributes given?
2. Rank the following attributes in order of their importance?
3. Please indicate the choice of various brands as first
choice,second choice and so on?
4. How many times is the toothpaste used by all members of
your family counted together?
TABLE 1

hyperlinks\FREQUENCY OF BRAND
PREFERENCE RANKING IN PERCENT.doc
TABLE2
hyperlinks\attribute importance rankings in
percent.doc
TABLE3
hyperlinks\Frequency of actual preference
rankings.doc
TABLE4
hyperlinks\Average consumer ratings on toothpaste
brands on relevant attributes.docx
Cont...
• Attitude model correctly predicted most preferred brand for
74.9% of the respondents
• Model also correctly predicted the 2nd most prefered brand
for 45.5% of the sample
• Least preferred brand was correctly predicted 63.3% of time
• Alive was rated as a 1.27 on taste/flavour (the lower the
rating, more satisfactory brand is perceived on that attribute)
by those who prefer it and as 2.23 by those who stated
preference for some other brand.
RESULTS OF CONSUMER RESEARCH-
• Crest was ranked as most preferred by 46.4% of the
respondent
• Alive was ranked 1st by 10.5%
• Alive was ranked 2nd by 22.7% and 3rd by 22.3%
• Brand preference highest for Alive toothpaste among the
people going to grammar school
• As education level increases, the preference for Alive also
decreases.
• Same phenomena holds true for Colgate while the opposite
is true for Crest.
• 75% of the respondents ranked Decay prevention as the
most important attribute in selecting a brand of toothpaste
• Price ranked as the least important attribute.
 Consumers are classified into segments.

 Consumers judge toothpaste on taste and appearance;

teeth whitening ; prevention of tooth decay etc.

 These segments represent customers with specific

needs.

 If there is no positioning the consumer is confused

especially if he/she is looking for a specific positioning

 Alive toothpaste has a general positioning.

 Choose your position

 See if you product is honest to that position

 This will give TG and the communication medium. My medium of

advertising changes with my segment.
 Right now they are wasting a lot of money and diffusing their
effort on marketing.
 Even if they do choose positioning of tooth decay, there might be
other brands already there so the company needs to make a
choice.