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MINISTRY OF EDUCATION AND TRAININGUEH UNIVERSITY – SCHOOL OF ECONOMICS FINAL EXAMINATION REPORTTopic: Listerine MouthwashLecturer : Module Title : Module Code : Student’s name : Student ID :Ho Chi Minh City, January 2022TABLE OF CONTENTSTable of Contents.................................................

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MINISTRY OF EDUCATION AND TRAINING UEH UNIVERSITY – SCHOOL OF ECONOMICS ***

FINAL EXAMINATION REPORT

Topic: Listerine Mouthwash

Lecturer Module Title Module Code Student’s name Student ID

: : : : :

Ho Chi Minh City, January 2022

TABLE OF CONTENTS Table of Contents…………………………………………………………………………..II

ist of Tables......................................................................................................................... IV List of Figures..................................................................................................................... IV List of Acronyms................................................................................................................ IV Part 1: Introduction............................................................................................................. 1 1.1.

Introduction............................................................................................................... 1

1.1.1.

Socioeconomic situation.....................................................................................1

1.1.2.

Product overview................................................................................................2

1.2.

Purpose of report.......................................................................................................3

Part 2: Microenvironment’s Impacts On Listerine Mouthwash.......................................4 2.1.

Current microenvironment factors in Listerine’s marketing campaign.....................4

2.1.1.

The company......................................................................................................4

2.1.2.

Suppliers.............................................................................................................4

2.1.3.

Marketing intermediaries....................................................................................4

2.1.4.

Competitors........................................................................................................5

2.1.5.

Publics................................................................................................................6

2.1.6.

Customers...........................................................................................................6

2.2.

SWOT Analysis of the product brand of Listerine....................................................7

2.3.

Marketing strategies recommendations.....................................................................7

Part 3: U&A Analysis...........................................................................................................9 3.1.

Consumer segmentation............................................................................................9

3.1.1.

Geographic.........................................................................................................9

3.1.2.

Demographic......................................................................................................9

3.1.3.

Psychographic..................................................................................................11

3.1.4.

Behavioral........................................................................................................11

Part 4: Positioning And Differentiation............................................................................13 4.1.

Competitor analysis.................................................................................................13

4.1.1.

Comparison between Listerine mouthwash and indirect competitors...............14

4.1.2.

Comparison between Listerine mouthwash and direct competitors..................15

4.1.3.

Positioning.......................................................................................................15

4.2.

Differentiation.........................................................................................................16

Part 5: Omni-Channels Development...............................................................................18 II

5.1.

Current Omni-channel distribution of Listerine......................................................18

5.2.

Suggestion...............................................................................................................20

Part 6: Conclusion..............................................................................................................21 References...........................................................................................................................22 Plagiarism Result................................................................................................................24

III

LIST OF TABLES Table 2-1 SWOT Analysis…………………………………………………………………...7 Table 3-1 Listerine mouthwash price range………………………………………………...10 Table 4-1 Comparison between Listerine mouthwash and indirect competitors…………...14 Table 4-2 Comparison between Listerine mouthwash and direct competitors……………..15

LIST OF FIGURES Figure 1-1 Sales of Oral Vietnam…………………………………………………….1 Figure 2-1 Sales of Oral Category……………………………………….5

Care

Care in

Vietnam

in by

Figure 3-1 Average monthly income per capita in Vietnam from 2010 to 2020 (in million VND)………………………………………………………………………………………..10 Figure 3-2 Value growth of personal care products due to COVID-19 among urban citizens in Vietnam in 2020…………………………………………………………………………..12 Figure 4-1 Brand shares of Oral Care in Vietnam 2020…………………………………….13 Figure 4-2 Visual comparison competitors…………….16

between

Listerine

and

major

direct

Figure 5-1 Listerine Cool Mint 750ml sales and customers’ feedback……………………… 19 Figure 5-2 Vending machines Greece…………………….19

offer

Listerine

in

Singapore

and

LIST OF ACRONYMS FMCG

Fast-moving consumer goods

IV

PART 1: INTRODUCTION 1.1.

Introduction 1.1.1. Socioeconomic situation According to data issued by WHO, more than 3.5 billion people suffer from oral diseases and severe periodontal disease affects almost 10% of the global population.[ CITATION Wor21 \l 1033 ] These alarming numbers indicate that oral healthcare should be more concerned by people around the world. Problems related to oral hygiene, for instance dental cavities, halitosis, gingivitis, tooth decay… could exert negative influences on an individual’s daily basis. In this day and age, oral hygiene is progressively gaining traction worldwide since people’s awareness of maintaining good oral health has increased, followed by a significant growth in spending made in dental care products. The Global Oral Hygiene Market is estimated to be USD 43.2 billion in 2020 and is expected to reach USD 51.31 billion by 2025, growing at a CAGR of 3.5%.[ CITATION Res211 \l 1033 ] In Vietnam, sales of oral care products reached 7,017 billion VND in 2020 and is expected to continuously increase in the next few years.

Figure 1-1 Sales of Oral Care in Vietnam Note: Euromonitor International. (2021). Oral Care in Vietnam [viewed December 28th, 2021]

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In modern days, besides toothbrushes and toothpastes, consumers have a tendency to purchase mouthwash for its convenience and cost-effectiveness. Antiseptic mouthwashes can help kill harmful bacteria, prevent tooth decay, keep fresh breath and strengthen enamel. Significantly, due to the extra precautions towards the COVID-19 pandemic, mouthwash products witnessed a rocket in consumption of 78% in 2020 in Vietnam.[ CITATION Nie20 \l 1033 ] In terms of mouthwash, Listerine Mouthwash is the world’s top daily mouthwash.[CITATION Eur \l 1033 ] Listerine is the best-selling mouthwash not only worldwide but also in Vietnam, becoming the dominant in the mouthwash market globally. This final examination report will discuss solely the product brand of Listerine mouthwash and analyze the company’s marketing strategies. 1.1.2. Product overview Listerine, a brand of oral healthcare products from the U.S.A, has been manufactured and distributed globally by Johnson & Johnson to which the drugs giant Pfizer was sold. This brand name has a rich heritage of research into antiseptic properties. In 1985, Listerine was marketed to dentists after studies showed that it was also good for killing germs found in the mouth.[CITATION LIS20 \l 1033 ] Today, besides mouthwash, Listerine also offers toothpaste, chewable tablets and self-dissolving teeth-whitening strips. Listerine mouthwash is well-known for its bold marketing slogan “Kills germs that cause bad breath.” It has been used by more than one billion people and has been sold in over 85 countries.[ CITATION Joh212 \l 1033 ] The company provides numerous product ranges that are created to solve different oral problems, mainly halitosis, gingivitis, tooth decay and cavity prevention, stain protection and teeth whitening. Listerine mouthwash comes in myriad flavors that meet the needs of their customers worldwide: the alcohol-free Listerine Zero, developed mainly for the populations in Muslim nations; Green tea Listerine that is suitable for Asian markets; and Listerine Natural, designed for specifically Americans who are obsessed with the non-synthetic ingredients, etc. The product is also offered in different bottle sizes and the price ranges variously, allowing people with different needs to purchase their products. Many Listerine mouthwash products have reached rigorous and thorough standards set by Dental Associations around the world, including America, Australia and Canada. This 2

proves the effectiveness as well as the safety ensured for consumers when using these products. A combination of rich heritage and safety approval is considered a great vantage point for Listerine when competing against prominent rivals, Oral B, Colgate or P/S, for instance. 1.2. Purpose of report First purpose: to analyze current impacts of elements of the microenvironment on Listerine mouthwash, and give suggestions for improvement. Second purpose: to analyze the U&A of consumer segmentation attracted to the product brand. Third purpose: to discuss how Listerine products stand out from other rivals. Fourth purpose: to discuss the multichannel/ Omni-channel distribution system of Listerine mouthwash, and give suggestions.

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PART 2: MICROENVIRONMENT’S IMPACTS ON LISTERINE MOUTHWASH 2.1.

Current microenvironment factors in Listerine’s marketing campaign 2.1.1. The company Johnson & Johnson segment their products into 03 main groups: Pharmaceutical Products, Medical Devices, and Consumer Health Products to which Listerine belongs. The Consumer Health Companies has stated that, “At Johnson & Johnson Consumer Health, we take a total health approach to helping people live their healthiest lives. To thrive, people need healthy places to live, work and play. We’ve set ambitious goals to deliver greater benefits for people, communities and our planet.”[CITATION Con21 \l 1033 ] Following this primary goal, the marketing teams at Listerine lead individuals from different departments to collaborate harmoniously in order to provide the best idea and innovation for their customers. 2.1.2. Suppliers Johnson & Johnson spend a wealth of effort in working and setting their vision clear for the suppliers. Not only do they collaborate with high quality products and services suppliers but they also look for partners whose vision aligned with that of Johnson & Johnson. [CITATION Res21 \l 1033 ] The company set strict regulations, practices and provisions for their suppliers in order to do businesses together. In addition, at the company’s Supplier Quality Academy, they “provide training to suppliers and supplier-facing Johnson & Johnson employees to build and strengthen strategic competencies that impact the overall quality and performance of the end-to-end supply chain”.[ CITATION Joh21 \l 1033 ] Furthermore, Johnson & Johnson and their suppliers’ collaborations culminated through the Supplier-Enabled Innovation program, which aims at reinventing the future of health by combining the suppliers’ broad and distinct experience to co-create new solutions that solve unmet needs.[ CITATION Joh211 \l 1033 ] 2.1.3. Marketing intermediaries Resellers, including wholesalers and retailers, are key distribution channel firms of Listerine mouthwash. Consumers can easily purchase a bottle of Listerine mouthwash at supermarkets, markets or vendors in Vietnam. Additionally, Listerine also has multiple official online channels that offer the product at far more compelling price on both 4

Listerine’s official website and popular e-commerce platforms worldwide, namely amazon.com, Taobao, Shopee, Lazada, etc. As having such broad coverage globally, Johnson & Johnson cooperate with myriad physical distribution firms so as to consolidate their supply chains to each and every area of the world. 2.1.4. Competitors In terms of indirect competitors, there are other oral hygiene and healthcare products such as toothbrushes, toothpastes, teeth whitener, floss, breath fresheners, etc. In 2020, mouthwash products took up only 6 percent of the retail volume in Vietnam compared with much more competitive figures of toothbrushes at 31 percent and toothpastes at 63 percent. [CITATION Ora21 \l 1033 ]

Figure 2-1 Sales of Oral Care in Vietnam by Category Note: Euromonitor International. (2021). Oral Care in Vietnam [viewed December 28th, 2021]

In terms of direct competitors, other brand names in the market that can be considered prominent rivals are mouthwash from Colgate, P/S, Oral B or Crest. When competing against other rival product brands, Listerine has numerous vantage points alongside with some demerits. However, Listerine’s marketing teams have innumerable strategies to 5

consolidate the product brand’s position in the market. For example, in Muslim countries, one of the most difficult markets, people are not allowed to consume alcoholic products due to ritual. So as to attract the populations in such markets, the marketing teams in Malaysia once ran a significantly impressive campaign as introduction of the Natural Green Tea mouthwash to the public. The campaign is primarily about setting up sampling counters at crowded supermarkets and requiring customers to try their products and bring out their brightest smile after using Listerine. Each smile captured would help donate one Malaysian Ringgit (RM1) to the orphanage fund. Eventually, the Smile Campaign attracted 86 percent of their target consumers. Most importantly, this allows Listerine to win over their rival, Colgate Plax, which was initially non-alcohol before Listerine’s campaign, with an increase of 7 percent in the market share.[ CITATION AnT14 \l 1033 ] 2.1.5. Publics At Johnson & Johnson, there are numerous publics working to promote their products as well as communication channels between the company and others Listerine mouthwash has great coverage on traditional TVCs and print ads as middle-aged and older people have a tendency to watch TV and read news regularly. In addition, Listerine owns social media profiles that attract a lot of people: nearly 2,5 million followers on Facebook, 15,5 thousand followers on Instagram. Moreover, Johnson & Johnson offers a web site called Media Center (https://www.jnj.com/media-center) where they keep updating about the company’s news and products, including Listerine. The company also makes significant effort in following the general public’s behaviors and attitudes towards their products and activities. Positive brand images not only allow the company to attract more customers but they also affect customers’ buying behaviors. 2.1.6. Customers Listerine specifically and John & Johnson in general carefully study different market types’ special characteristics in order to fulfil the needs of each and every type. In the consumer markets, they offer wide ranges of products, varying differently in sizes, flavors and prices to meet individuals’ needs. Moreover, due to the fact that each consumer market in different countries and areas requires different standards to be met, Johnson & Johnson makes great efforts to change to commit and follow the regulations. In addition to that, businesses in the reseller market, perhaps the most important market to the company, also have specific

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requirements that force the marketing team to follow. Partnering harmoniously with the reseller markets could help increase Listerine’s revenues. 2.2.

SWOT Analysis of the product brand of Listerine Table 2-1 SWOT Analysis

Strengths  Expert testimonials: hold medical approvals and certifications from prestigious medical board  Comes in different flavors and bottle sizes  Distributed worldwide

Opportunities  Lucrative opportunities in suburban and rural area markets  Introduction to new product variants  Partner with large organizations like schools, colleges, hotels and resorts chain, etc.

 Positive brand image marketing campaigns on TVCs and print ads  Rich heritage  Advertising strategies: fear sells Weaknesses  Unpopular products in suburban and rural areas

Threats  Consumers may look for more organic products

 Lack of innovation

 Rivalry of new entrants

 Unsuitable for children: lingering

 Rivalry of current competitors

cool effect 2.3. Marketing strategies recommendations Based on the SWOT analysis above, I would like to give some suggestions of marketing strategies related to the microenvironment for Listerine in hope of increasing the company’s revenue. First, so as to leverage their strengths, I suggest Johnson and Johnson exert more of their power to regions that they have not reached. Listerine is distributed in 85 countries, which means there are many more lucrative markets they could consider. In addition to that, they should also attack more in suburban and rural areas in countries that have already introduced their products as well. Moreover, Johnson and Johnson’s workforce involves professionals in the field, they should invest more in new product lines that fulfill consumers’ diverse needs. For instance, I suggest innovation in products for children, in both packaging and flavors. Another recommendation is that they should plan to collaborate 7

with large and luxurious chains of hotels and resorts worldwide where their main customers are people from high-income backgrounds. In other words, these businesses accept costly necessities so as to best serve their customers. This would be a great chance for Listerine to boost their coverage and be more familiar to people in upper classes of the society. In order to minimize threats, Listerine should meet competitions with advanced design technology. To be precise, they should develop a product line that offers organic ingredients that leaves less burden on the environment. On top of that, they should consider making improvements on fuel consumption, which results in less environmental damage. Furthermore, the company needs to search for new prospects in the market and retain old customers along. To be prepared when countering weaknesses and threats, Listerine should build strengths for defensive strategies. By enhancing their product lines, they are also reducing threats of competition. This requires the compan...