In this term paper author has elaborated on the definition of the Market

Segmentation. After identifying the definition of the Market segmentation, the

author has discussed on the characteristics of market segmentation in the
toothpaste market. Author has introduced the toothpaste market in Sri Lanka and
segmented the toothpaste market accordingly. In elaborating the segmentation in
the toothpaste market the author has selected the Unilever company. Unilever
company produces the most successful toothpaste brand in Sri lanka, “SIGNAL”.
Author has mentioned the segmentation of SIGNAl toothpaste and discussed it
characteristics individually. Finally author has explained the role that the HR
department of the Unilever organization has to playto upgrade the standards of the
Marketing department.

Oral care is a highly practicing health habit in all over the world. In Sri Lanka it may
have once been a narrow market segment but today it represents a flourishing
sector with several sub segments. It has a high degree of penetration with in the
country through tooth paste and tooth powder. There are channel for products that
address gum diseases, cavities, plaque and tartar build up, sensitive teeth and even
a condition known as dry mouth. At the same time there is another segment which
represents fresh breath and white teeth. When oral care was essentially a habit of
keeping teeth white, toothpowder preceded toothpaste for centuries.

Toothpaste and toothpowder have a combined household penetration in Sri Lanka

of 89%. In 2005, Lanka Market Research Bureau (LMRB) estimated this market to be
worth Rs. 2.5 billion. With an annual volume of approximately 4,500 metric tonnes,
toothpaste accounts for marginally over Two billion rupees. The market is
dominated by two brands: Signal with a volume share of 53% marketed by Unilever
Sri Lanka and Clogard with 33% volume share marketed by Hemas. The other
significant brand is Supiriviky, a local Ayurvedic toothpaste from Sidhalepa with an
8% share volume in the market.

Segments of Toothpaste market in Sri Lanka

What is market segmentation? According to the most of pundits of marketing
subject, market segmentation is; Grouping people according to their similarity
related to a particular product category. Market segmentation is the process of
dividing a market into 2 or more segments with each having specifics needs and
characteristics and who will need specific products or marketing mix. For a market
to be broken up into these different segments different segmentation variables
must either be used individually or in combination. (Kotler et al.2006,217)
Major characteristics of market segmentation are:

• Age

• Gender

• Geographic location
 • Income

• Spending patterns

• Cultural background

• Demographics

• Education

• Language

Four main Segmentations

As we mentioned previously Signal plays the major role in toothpaste market with
the share of 53%, Clogard with 33% and Supiriviki with 8%. According to the
theoretical aspects we look in to the toothpaste market segments in Sri Lanka.

Demographic Segmentation

Demographic segmentation consists of dividing the market into groups based on

variables such as age, gender family size, income, occupation, education, religion,
race and nationality. As you might expect, demographic segmentation variables are
amongst the most popular bases for segmenting customer groups. This is partly
because customer wants are closely linked to variables such as income and age.
Also, for practical reasons, there is often much more data available to help with the
demographic segmentation process. The author has discussed toothpaste industry
according to the characteristics of demographic segmentation.

Age - Consumer needs and wants change with age although they may still wish to
consume the same types of product. So Marketers design, package and promote
products differently to meet the wants of different age groups. Good examples
include the marketing of toothpaste contrast the branding of toothpaste for children
and adults. In Sri Lanka there are different types of toothpaste brands varies
according to the age. There are brands for children and adults. For an example;
signal provide toothpaste for both adults and children, Colgate, Kodomo is a very
famous toothpaste brand for children in Sri Lanka. Signal whitening is an adult
brand.

Gender - Gender segmentation is widely used in consumer marketing. The best

examples include clothing, hairdressing, magazines and toiletries and cosmetics. In
Sri Lanka the toothpaste marketers have gone to the extent of changing the colour
of the packaging according to the gender. For an example; Pink colour toothpaste
packaging for ladies while blue goes for males.

Income - Many companies target affluent consumers with luxury goods and
convenience services. By contrast, many companies focus on marketing products
that appeal directly to consumers with relatively low incomes. Examples include
toothpaste sachet packets for low income people. In Sri Lanka there are toothpaste
pricing from Rs.25 to Rs.1200 a packet. For an example low priced sachet packet to
Highly priced Salvony or Perriot.

Family Size – this also will affect the buying pattern of toothpaste. If you have a
large family and your income is not stable, the buyer will go for cheap product that
he can afford. But if you have a good income with a small family, they will go for
higher priced products.

Religion and Ethnic Groups – this will not highly affect the toothpaste market,
since there are no flavours added from animals or alcohol.

Psychographic Segmentation

This will mainly focus on the lifestyle of the consumer. Marketers are increasingly
interested in the effect of consumer "lifestyles" on demand. There are many
different lifestyle categorisation systems, many of them designed by advertising
and marketing agencies as a way of winning new marketing clients and campaigns.
Self-Image – when people are stable with their income and get a high income they
try to build their image by changing their day to day consumer products. They
change their oral care products from cheap to expensive.

Personality – consumers believe that if they buy high priced quality products it will
improve their personality in the society. Marketers use this thinking to market their
products.

Geographic Segmentation

If the market segmentation is based on geographic units, it is called geographic

segmentation. As per the dictionary of marketing terms, geographic segmentation
definition is as follows: Market segmentation strategy whereby the intended
audience for a given product is divided according to geographic units, such as
nations, states, regions, counties, cities, or neighborhoods. Marketers will tailor
marketing programs to fit the needs of individual geographic areas, localizing the
products, advertising, and sales effort to geographic differences in needs and
wants. Geographic segmentation can be a very important process, especially for
multinational businesses with global brands.

Country – According to the taste pallets of the different nationalities, the flavours
of toothpaste differs.

Region – North Central province of Sri Lanka is known to have more calcium in the
waters. So the toothpaste brands which market to this province are low calcium
based.

City Size – According to the size of the city the market size varies.

Climate – eventhough you can use more mint flavoured toothpaste in the dry
climate regions, you have to lessen the mint flavor in cool climate regions such as
Nuwara Eliya since it will affect the temperature of the toothpaste and give coldness
in the mouth.

Benefit Segmentation

Method of determining a target audience for a particular product in terms of those

people who want the benefits the product offers. If the product is a fast sports car,
for example, the target audience will be the segment of the population that wants
the benefits of good quality toothpaste. There are different audiences for different
perceived benefits. As an example: toothpaste offers three distinct benefits, each
of which will appeal to a different audience segment. One benefit relates to a tooth
decay deterrent; the second, to a tooth whitener; and the third, to a mouth
freshener. By segmenting the audience according to these benefits through the
copywriting, the advertiser can position the product in three different markets to
achieve maximum advertising effectiveness
Segmentation of Signal Toothpaste
Signal has been the iconic oral care brand in Sri Lanka leading the way for
innovations and activations. Signal offers a wide range of variants in it's toothpaste
and toothbrush portfolio to suit all needs. It guarantees you strong healthy teeth
and brings out a smile in each individual.

Signal had been instilling good oral hygiene habits to the people of Sri Lanka giving
them the confidence to smile since 1982. Signal Oral Health Service (SOHS) has
been active in Sri Lanka and has been an integral part of Signal’s mission to
promoting good oral health awareness. For the past 24 years, the SOHS has been
providing free dental check-ups sampling of toothpaste and toothbrushes to pre-
school and primary schools and conducting large scale community based oral health
camps.

In 2005 Signal launched its newest initiative, Signal Sina Bo Wewa campaign. It’s
aim was to spread the warmth and beauty of our Sri Lankan smile to the world and
enhance Sri Lanka’s image as the world’s friendliest nation. This campaign won a
Guiness Book of World Records. It was also won the Brand Icon Award in 2004.

Signal is indeed the oral care expert that can bring a smile to everyone's face.

Benefit Segmentation of Signal Toothpaste

• Sri Lanka's largest Oral Care brand - the Oral Care expert

• Has been trusted by generations

• Has a variant for various Oral need states

• Endorsed by FDI ( the largest dental association globally)

• Endorsed by SLDA (Sri Lankan Dental Association)

• Winner of the Guinness Book of World Records

• Recipient of the Brand Icon Award in 2004

• Signal Whitening guarantees whiter teeth in 4 weeks

• Signal guarantees strong healthy teeth

Signal Toothpaste

• Signal Core - For strong healthy teeth

• Signal Herbal - Cooling relief from inner heat (For healthy teeth &
gums)
• Signal Whitening - For strong white teeth
• Signal Triple Action - For complete al round protection

Demographic Segmentation of Signal Toothpaste

Age – Signal has produce different products for different age limits. Children was
served with different sweet flavoured toothpaste while the adults are served with
more calcium based toothpastes. For an example; Signal Strong Teeth. This
toothpaste contain 50% more calcium to fight tooth decay of adults.

Gender- Signal has produced different products according to the gender. Mostly
they have changed the colour of packaging according to the gender even though
the content inside is similar. Pink colours for ladies and blue colours for gents.

Family Size - – this also will affect the buying pattern of toothpaste. If you have a
large family and your income is not stable, the buyer will go for cheap product that
he can afford. But if you have a good income with a small family, they will go for
higher priced products. For an example Signal sachet packets to Signal whitening.
Income - Many companies target affluent consumers with luxury goods and
convenience services. By contrast, many companies focus on marketing products
that appeal directly to consumers with relatively low incomes. Examples include
toothpaste sachet packets for low income people and much more expensive mint
flavoured Signal toothpastes for rich people.

Psychographic Segmentation

Self-Image – High class consumers will never buy Signal sachets where as low
income consumers always go for the same.

Personality - Signal has become the brand of Sri Lanka for toothpaste. If you use
Signal products it enhance your personality. If you use Signal herbal it shows that
you are a health conscious person.

Geographic Segmentation of Signal Toothpaste

Region – the signal products varies from province to provice in Sri Lanka. As the
author mentioned previously, Signal promote low calcium product such as Signal
Herbal to North Central province. At the same time when they promote to rural
areas , most of the time they go for cheaper products such as Signal sachets.

Climate – As author mentioned ealier they promote less mint flavoured toothpaste
to Nuwara Eliya and Bandarawela region.

Size of the City – Signal promotes more expensive and more quantity to Colombo
city since it is the largest commercial city of Sri Lanka.

Role of HR Department
Recruitment – recruitment plays a big role in the Human Resources department. In
this context, we being the HR department, we have to look into people who have
marketing background. They have to have educational qualification in marketing
from a recognized institute; such as CIM, SLIM, degree in Marketing from a
recognized university. The candidates should have at least two years of experience
in the fast moving consumer goods (FMCG) market especially in toothpaste market.
At the same time we look into people who are fluent in English, Tamil and
Singhalese

Training – Training is highly important for marketers since they deal with lots of
retailers and whole sellers in Sri Lanka. Marketers has to deal according to the
attitude of the retailer. They have to handle them accordingly, hence it will damage
the image of the product and company. It is the responsibility of the HR department
to train the marketers and all the personnel in the marketing department since they
represent the company by the eye of the retailer and customer.

Promotions & Evaluation – Employee promotions are conducted according to

evaluation done by the marketing department. HR department will go through the
evaluations and plan the increment schemes and promotions accordingly.

As the conclusion to this term paper has included information which introduce the market
segmentation of toothpaste industry in Sri Lanka and the segmentation of Signal Toothpaste. The
author has shown how the signal brand behaves according to the different segment. Finally
author has mentioned the role of HR department with reference to develop the employees of the
marketing department.

References
• Kotler et al (2006)
• Professor Richardson “Segmentation”
• Marketing planning, Implementation and Control by William M Pride