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Despite a continual but slow growth in the Thai dishwashing liquid market, major players such as Sunlight, Lipon F, and Teepol are now suffering from price competition from both local and house brands of megastores such as Big C, Tesco's, and Makro. In response to price cutting from local products (including those labeled as " OTOP" products using local herbs as well as house brands of megastores, major industry leaders choose to remain the same price but reduce the size down from 700 ML to 650 ML. Each industrial players tend to lever on the same core benefits. Sunlight, the biggest industrial leader who enjoys 65% of market share, use scents and the ability of the liquid to eliminate fishy order and disinfect both the dish and the sponge as well as the brand legend and long-term trust it from the market worldwide. Teepol stress on the non residual quality for those who concerned with health (in fact all dish washing liquid brands are required by law to use edible chemical substances), and Lipon F, the second largest industry player, enjoys approximately 10% of market share, stresses on the concentrated formula that can effectively get rid of all kinds of grease and fishy odors. Another 25% of market share were allocated to house brands and local brands. As making dishwashing liquid does not require any special techniques or technology, so similar quality of products can be imitated easily. With lower marketing cost, products made under consignment can be priced 30%-40% lower than the major brands that spend a lot of budget both on advertising and merchandising. Considering the demand side, there is a growing number of price sensitive segment who has just started using dishwashing liquid in substitute to detergent. House brands and local brands seem, therefore, to have their market. The major brands now use their brand superiority as the differentiation point together with POP- Point of Purchase promotion to guard off their market share. In the long term, this market would be characterized by more variety of product series for more health conscious segments, package design and scents that appeal to different segments in the market. Source: Marketing Plus Magazine, Volume 5, Issue 44 March 2013
Friday, April 26, 2013
Suppose you wish to enter in "dish washing liquid" industry, how would you create a creative value proposition to escape away from the oligopolistic competition where there are practically two dominant brands enjoying 75% of market share?
Despite a continual but slow growth in the Thai dishwashing liquid market, major players such as Sunlight, Lipon F, and Teepol are now suffering from price competition from both local and house brands of megastores such as Big C, Tesco's, and Makro. In response to price cutting from local products (including those labeled as " OTOP" products using local herbs as well as house brands of megastores, major industry leaders choose to remain the same price but reduce the size down from 700 ML to 650 ML. Each industrial players tend to lever on the same core benefits. Sunlight, the biggest industrial leader who enjoys 65% of market share, use scents and the ability of the liquid to eliminate fishy order and disinfect both the dish and the sponge as well as the brand legend and long-term trust it from the market worldwide. Teepol stress on the non residual quality for those who concerned with health (in fact all dish washing liquid brands are required by law to use edible chemical substances), and Lipon F, the second largest industry player, enjoys approximately 10% of market share, stresses on the concentrated formula that can effectively get rid of all kinds of grease and fishy odors. Another 25% of market share were allocated to house brands and local brands. As making dishwashing liquid does not require any special techniques or technology, so similar quality of products can be imitated easily. With lower marketing cost, products made under consignment can be priced 30%-40% lower than the major brands that spend a lot of budget both on advertising and merchandising. Considering the demand side, there is a growing number of price sensitive segment who has just started using dishwashing liquid in substitute to detergent. House brands and local brands seem, therefore, to have their market. The major brands now use their brand superiority as the differentiation point together with POP- Point of Purchase promotion to guard off their market share. In the long term, this market would be characterized by more variety of product series for more health conscious segments, package design and scents that appeal to different segments in the market. Source: Marketing Plus Magazine, Volume 5, Issue 44 March 2013
Monday, April 22, 2013
Greeting
Hello, MUIC Students of ICMK 428 Marketing Strategy (Trimester 3/2013-2014)
This web-blog is for you to review the topics or news that I choose to pose on based on your marketing point of view. Please be sure that you contribute your marketing knowledge and sense in your replies. You can also comment on your friends' replies constructively too.
Hope you enjoy the course and activities
Nuttapong Jotikasthira
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