EXECUTIVE SUMMARY

Elmex is a Swiss-based company distributed by GABA

International which was established in 1963 that

focused its products in oral care such as toothpaste,

mouth rinse, toothbrush, and dental floss. Elmex

segmented their market for general in which people

from kids, teenagers, adults and even elder could use

this product with a quite affordable price. Elmex

also offers different type of toothpastes that may

satisfy every consumer’s needs and wants.

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INTRODUCTION

Toothpaste is a paste or gel that is used along

with toothbrush to maintain and improve oral health.

Since their first introduction hundred years ago,

toothpaste nowadays becoming a must for every single

human all around the universe. By cleaning teeth

with toothpaste, it can help to cure several dental

issues such as dental caries, gum disease, erosion

and dentin hypersensitivity. Furthermore, by its

useful formulas toothpaste can easily whiten teeth,

breath freshening and more importantly dyes for

better visual appeal.

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The Company Background:

Dr. Emanuel Wybert, developed Elmex

toothpaste and the name of the toothpaste was

Meridol, which was happened during a serious

influenza epidemic in Basle. In 1963 Meridol changed

their brand name into Elmex, that specializes in the

field of oral care. Nowadays, Elmex plays a major

role in European oral care markets. GABA subsidiaries

have a leading position in Switzerland, Germany and

Austria and the company is also very successful in

various other European countries such as France,

Italy, Poland, and many more. The company itself is

a trusted partner to the dental profession, since the

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company’s worldwide cooperation with leading experts

and professional societies.

Key Competitors:

Elmex biggest are probably all company that is

focused on producing oral care such as toothpaste,

mouth rinse, toothbrush, and floss. Colgate company

is probably one of the biggest competitor of Elmex,

since Colgate has numerous subsidiary organization

spanning 200 countries like USA and India. Also,

Colgate Company product are spread all around the

world and Colgate recently received the “2012 Best

Oral Care Product” which makes people knew Colgate

better than Elmex. The other top competitor for Elmex

is Pepsodent, unlike the Colgate company, Pepsodent

reached their fame by sponsored a radio program back

in the 30’s which was titled “The Pepsodent Shows

Starring Bob Hope” and ran approximately 10 years on

NBC. This show was very popular among children, and

gives strong benefits to the Pepsodent Company since

90% of the viewers are children, which made Pepsodent

popular among children.

The Industry:

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Elmex was established in 1962. Elmex is a company

that is focused on an oral care products such as

toothpaste. The Elmex toothpaste is manufactured by

GABA International AG, a Swiss based manufacturer of

branded oral care products located in Therwil. Elmex

was the first toothpaste to contain the organic Amine

Flouride (AmF) olaflur as an active ingredient for

protection against dental issues. The brand itself

plays a major role in European oral care markets. The

company has growth ever since they released their

very first product, which is Elmex toothpaste, and

they continue to produce another toothpaste for those

who have got very sensitive teeth, which is called

“Elmex Sensitive” in 1990. The company’s product

range includes consumer products like toothpastes,

dental rinses, mouth rinses, toothbrushes,

interdental products, a fluoride gel as well as a

fluoride concentrate for the dental profession.

Elmex’s future projection are to be working together

with some distinguish Scientific Affairs Department

to always up to date on the latest medical findings

and that the external experts are kept informed about

Elmex’s products. Also, Elmex is looking forward to

expand their company to be sold in all over the

world, they are planning to release their products

for the Asian markets, so that Elmex will create an

international network. Moreover, Elmex are planning

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to append their factories so the number of the

toothpaste products could gradually increase.

Micro and Macro Environment Factors:

Micro Environment

The Organization:

The company is specialized in research;

development and marketing of innovative and

effective oral care products. The company focus on

scientifically verifiable benefits for the consumer.

The Company also focuses its activities on

investigating new active substances and their

mechanisms, innovative products to change the needs

of dentists, dental hygienists and consumers.

Furthermore, Elmex ensures that the products are

technologically innovative, well appealing and well

accepted to consumers. The company are working

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together with some scientific experts to compete

with other toothpaste brands, because to be

specialized in oral care, Elmex needs to step up

their game and requires first-class products as well

a well-trained workers.

The company financial departments are broke down

into two entities; Controlling and Accounting. The

function of controlling is the basis for decision-

making. Meanwhile, the accounting department ensures

that finance business processes meet the

requirements of the financial processes under

commercial law.

Customers:

Elmex segmented their market for general, which

means people ranging from children, teenagers,

adults to elder could use their products. The

company also provides product for different kind of

dental issues such as sensitive gum, erosion,

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caries, and halitosis, which is caused by bacteria.

The Elmex Company has sold their products for more

than 50 years now. Elmex advertised their products

through a commericial on TV and media advertisement

such as magazine. The Elmex toothpaste can be found

on probably all store like walmart. Furthermore,

Elmex Company has a great planned to reach the

international market by selling their products

online through eBay or Amazon without any charge of

shipping fee so that people around the world could

easily buy and consume the product with a very

affordable price.

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Competitors

Any company that produces toothpaste is a

competitor to Elmex. Besides Meridol and Aronal who

are owned by Elmex (GABA group). Colgate and

Pepsodent Company is probably the top competitors

for Elmex, since colgate company was founded way

earlier than the Elmex which in 1806 and Pepsodent

was established in 1920, the other top competitors

for Elmex are Aquafresh and Crest.

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Macro Environment

Demographic:

Elmex’s consumers are mostly people ranging from

kids to elder (from the age of 2 to infinite). In

order to make sure that the whole family can consume

toothpaste with one brand; and it is Elmex.

Economic Environment:

Elmex toothpaste has basically a quite affordable

price. Elmex company creates different prices

depends on what kind of toothpaste that the

customers are willing to buy. Elmex aims its

products to be affordable for all type of people.

(Lower level, middle level, or even upper level).

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This makes Elmex is a toothpaste for all classes

without concerning their income.

Technological Environment:

The Elmex Company has sold their products for

more than 50 years now. Elmex advertised their

products through a commericial on TV and media

advertisement such as magazine. The Elmex toothpaste

can be found on probably all store like walmart,

boots, and the list goes on. Furthermore, Elmex

company has a great planned to be accessible to

reach the international market by selling their

products online through eBay or Amazon without

costing any charge of shipping fee so that people

around the world could easily buy and consume the

product with a quite affordable price.

Cultural Environment:

Dental issues has been happening since a very

long time, hence Elmex gives solution for all dental

issues by giving a lot of useful products based on

customer’s needs such as a gum problem or having a

sensitive teeth. Elmex also offers a toothpaste that

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could make a long-lasting fresh breath, which has

been an issue for most of people who is ashamed with

the smell that come out off their breath.

Natural Environment:

When it comes to producing toothpaste, the

company uses several ingridients such as Flourides,

20-42% water, Sodium Lauryl Sulfate (SLS) and other

Herbs. Also, the company uses recycled items for the

packaging. Elmex ensures that there are no harmful

ingredients that could possibly damage the nature.

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STP PROCESS

Segmenting

Market segmenting is the process of defining a

large homogenous market into clearly identifiable

segments having similar needs, wants, or demand

characteristics(http://www.businessdictionary.com/def

inition/market-segmentation.html#ixzz2l5rqaeaJ).

Market segmentation broke down into 3 they are:

1. Geographic :

Elmex divides their market segment into different

units such as nations. Elmex aims its product to be

sold in the European segment of market. Since it is

easier for the European to buy Elmex product because

they can get the prodct in the nearest stores.

2. Demographic :

Elmex segmented their market for family use,

therefore Elmex sells all of their products in the

same size which is 100 gram. For kids, Elmex

provides a 70 gram size of toothpaste with a non-

mint flavor. Elmex also sells a value pack that

includes a value size of toothpaste for adults and

kids along with the toothbrush so that could satisfy

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all of the family members without concerning their

income since it is sold in a very affordable price.

3. Behavior:

Elmex attempts to produce produccs that could be

useful for all their consumers. Elmex produced

different type of toothpastes based on the

consumer’s wants and needs such as Elmex Caries

Protection, Elmex Erosion Protection and Elmex

Sensitive Proffesionals toothpaste.

Targeting

Target marketing is a set of buyers sharing

common needs or charateristics that the company

decides to serve.

Elmex Company selects their consumers they wish to

have. Elmex Company tends to attract all kind of

sonsumers from children to elder. Elmex also insist

to get all people to use their products therefore,

they sell their products in a very affordable price

which is ranging from $4-$8 each.

Positioning

Positioning is arranging for a product to occupy a

clear, distinctive and

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desirable place relative to competing products in the

minds of target consumers.(Kotler et al., 2010,

p.686).

Elmex creates an image or identity in the minds

of their target market for their product. Elmex

is positioned as an affordable and a family

toothpaste.

Market Coverage Strategy

The Elmex company fundamentally applied an

Undifferentiated market Strategy to market their

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products. Undifferentiated marketing strategy is

basically treating everybody the same (Kotler et al.,

2010, p.101) where Elmex use a single product to

attack the whole market without concerning

differences within market. Elmex aiming to give their

products a superior image in the minds of consumers.

Elmex has successfully attracted wide segment of

market like children, teenagers, adults and even old

folks.

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Positioning Map

HIGH

Gum Care

ELMEX

LOW HIGH

AQUA FRESH CREST

Whitening

COLGATE

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LOW

References List:

1. Kotler, P., Brown, L., Burton, S., Deans, K. &

Armstrong, G. (2010), Marketing, 9th Edition, Prentice

Hall, Sydney

2. Company Background (2013). Retrieved 19 November,

2013 from

http://www.gaba.com/htm/435/en/History.html

3. The Industry (2013). Retreived 19 November, 2013

from

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http://www.gaba.com/htm/434/en/Presence-in-

Europe.htm?GABA=b7f03a826b6f4a6d08384f486d810d81

4. Elmex Price (2013). Retreived 19 November, 2013

from

http://www.leguidesante.co.uk/25/brand/elmex/

5. Segmenting (2013). Retreived 19 November, 2013

from

http://www.businessdictionary.com/definition/

market-segmentation.html#ixzz2l5rqaeaJ

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