Close up brand analysis

BA 170 Midterm Paper Never settle for second best. And yet, since its inception in the Philippine market, second place has been Close Up’s niche. Though the brand has indeed been successful in differentiating its use and targets from the irreplaceable number one, the dream to finally land the gold continues to linger. Overview of the Brand Close Up was launched by Unilever in 1967 as the first gel toothpaste in the world. The product’s unique structure made it easy to market it as a new and diverse product, all other brands having manufactured the same opaque white consistency toothpaste normally has.

Furthermore, the brand made sure to put the blue ocean strategy to their advantage. While competitors were going the more medical approach, Close Up branded itself as the more relatable brand to the youth. Currently, Close Up has eight variants out in the market. All their lines are made to function as the ‘ fresh breath maker’, promising consumers long-lasting fresh breath. The variants mostly just differ in flavor apart from the Close Up Milk Calcium, which adds the teeth strengthening function to their product. Company Vision Close Up envisions itself as the number one toothpaste brand for the youth.

Their goal is to get young adults to feel how much the brand can help them achieve fresh breath, which, in turn, can boost their confidence to face their everyday challenges. Close Up’s goal is to be the youth’s first choice when it comes to toothpaste brands. The Close Up Mission In line with the company vision is their mission to give the youth that confidence to make ‘ the moment’ happen. Much of Close Up’s brand identity revolves around the concept of ‘ the moment’, which they define as that special instant of interaction between two or more individuals.

It may be as simple as asking someone to be their date to the high school prom or as big as saying I love you to their special someone for the first time. Close Up makes sure to be the factor that pushes the consumer’s insecurities aside in order for them to be confident enough to pursue that perfect moment. Target Market The brand associates itself with Filipinos aged 18-24 who are both sociable and optimistic. These young adults need that confidence to get up close and personal with others and believe that white teeth and fresh breath are important for social confidence and intimacy.

Market Analysis The Toothpaste Market Based on Datamonitor, the toothpaste market in the Philippines has increased at a compound annual growth rate of 3. 3% between 2004 and 2009, with Colgate leading the pack with a share of 51. 7%. But after two decades of continuous growth, the toothpaste industry saw a decline in market usage causing most companies to cut prices. Currently, Close Up stands as the industry’s number two with a market share of approximately 20%. What are the factors that affect toothpaste choice in the market?

A journal published by Ben Paul Gutierrez shows that there are thirteen attributes consumers look for when selecting their toothpaste. These include variables such as the ability to clean teeth properly, ability to give smooth and white teeth, ability to prevent cavities and the approval of dentists. (insert table of complete list here). Furthermore, the research shows the characteristics of the decision maker (ultimately, the one who chooses and purchases the product) and connects them to two behaviors, namely switching and involvement.

Switching refers to the consumer’s brandloyaltywhereas involvement refers to the buying behavior. (show table of high involvement/low involvement) Close Up and Colgate are both able to achieve high switching and brand involvement, which are expected of brand which have high market shares. Close Up’s Position In terms of age, Close Up has been consistent in marketing itself to the young adults. Map A shows the relationship between price and age and proves that Close Up is unique in its choice of age segment. This is particularly evident in their advertising, which will be discussed further in this text. insert perceptual map a) Looking at functional benefit (Map B), however, we see that Close Up lags behind Colgate, who has, over the years, developed more and more products to address different oral needs. This is also because Close Up has continuously focused on producing toothpaste with the same functional benefits, a few outliers aside. Though this is good for brand reinforcement, meaning that consumers quickly associate the same need to the brand, this may be a factor as to why the brand has stayed a challenger. insert perceptual map b) On the other hand, Map C illustrates the relationship of price and size. Here, Close Up is generally positioned in between two markets, with Colgate at Sensodyne being the higher priced brand (MORE ANALYSIS HERE) Lastly, Map D shows the relationship between price and functional benefits, which may also be interpreted as the consumer’s value formoney. (insert perceptual map c) (insert more analysis) generally -toothpaste market, positioning, pricing, market behavior, segmentation breakthrough Consumer Insight -target market, trends, insight Current strategies Recommendations