Case Study: How Center Fresh has a 31% Market Share ?
Did you know that Center Fresh comes from an Italian company? It’s a brand under the Italian confectionery giant Perfetti Van Melle. Today, it has established itself as a leading player in the chewing gum market worldwide.
They entered India in 1994 and tapped into the cricket craze. In the 1996 Cricket World Cup, Center Fresh was the official chewing gum of the Indian Cricket Team. Today, it has a 31% market share in the Indian chewing gum market.
It has managed to carve out a niche by consistently innovating its product offerings and by deploying clever marketing strategies that appeal to the Indian consumer’s desire for freshness.
STP Analysis
Segmentation:
Demographic Segmentation:
The primary demographic includes teenagers, college students, and young working professionals who are active, social, and often on the go.
- Income:
The product is positioned as an affordable everyday item, making it accessible to a broad income range.
- Geographic:
Center Fresh targets urban and semi-urban regions where there is a higher concentration of its key demographic.
Psychographic Segmentation:
- Lifestyle:
The brand targets individuals who lead active, social lives and value freshness and personal hygiene.
- Personality:
Center Fresh appeals to consumers who are youthful, energetic, and outgoing.
Behavioral Segmentation:
- Usage Rate:
The brand targets frequent gum users, especially those who use gum as a breath freshener after meals or before social interactions.
- Benefits Sought:
The primary benefit sought by consumers is long-lasting freshness, so it’s popular among those who seek a quick refreshment option during the day.
Targeting:
- Primary Target Audience:Urban Youth and College Students are the backbone of Center Fresh’s consumer base. Campaigns often highlight situations familiar to this demographic, such as social gatherings and college life.Young professionals who need quick refreshment solutions during long work hours or before important meetings are another primary target.
- Secondary Target Audience:Center Fresh also targets consumers who may not use chewing gum regularly but look for it in specific situations, such as long travel, stressful work days, or after meals.
Positioning:
Center Fresh is positioned as the ultimate solution for fresh breath. Over the years, Center Fresh has evolved its positioning to also embody a sense of fun and spontaneity. The brand communicates this consistently through its product features and marketing campaigns.
Competitor Analysis of Center Fresh
Center Fresh faces stiff competition from several well-established brands. Here’s a detailed analysis of its primary competitors:
- Orbit:Positioned as a gum that promotes oral health, Orbit has carved out a niche by focusing on dental benefits, particularly after meals.Orbit has a significant share in the urban markets, particularly among professionals and older consumers who are more inclined towards sugar-free and health-oriented products.
- Mentos:Mentos, another brand under Perfetti Van Melle, competes directly with Center Fresh in the breath-freshening category.
It is often positioned as a hybrid between candy and gum, making it a more versatile product.
- Boomer:Boomer is a classic chewing gum brand in India, known for its bubble gum appeal and strong presence in the kids’ segment.
While it doesn’t directly compete with Center Fresh in the adult freshness category, it does capture a significant portion of the youth market.
Apart from direct competitors, Center Fresh also faces competition from a range of alternative products that cater to similar consumer needs:
- Mints:Mints, such as Tic Tac, are popular alternatives to chewing gum for breath-freshening which offer quick freshness without the act of chewing.
- Candies:Certain hard candies and lozenges like Halls serve as indirect competitors. While they are primarily marketed as throat soothers or breath fresheners, they can also substitute for chewing gum.
- Oral Hygiene Products:Mouthwashes and breath sprays like Listerine represent another category of indirect competition as they offer a more comprehensive solution to oral hygiene.
To maintain its competitive edge in such a dynamic market, Center Fresh employs several strategies:
The pricing is strategically set to appeal to both budget-conscious consumers and those looking for a premium freshness experience.
The brand has continuously evolved its product offerings with new flavors, formats, and packaging to keep the brand fresh and relevant.
Center Fresh’s marketing campaigns with clever, humorous advertisements are a key differentiator.
Marketing Mix
1. Product:
Center Fresh has created a diverse product portfolio that includes various chewing gum variants, flavors, and innovative packaging designs. The brand’s core product is the liquid-filled gum, which offers a burst of freshness.
Over the years, Center Fresh has expanded its offerings to include multiple flavors such as mint, watermelon, and other fruity options. This variety caters to different consumer preferences, ensuring there’s something for everyone.
2. Price:
Center Fresh employs a value-based pricing strategy that emphasizes affordability while maintaining a perception of quality. The brand is strategically priced to appeal to a broad consumer base.
3. Place:
Center Fresh boasts an extensive distribution network that spans traditional retail outlets, modern trade, and e-commerce platforms. The brand’s availability in kirana stores, supermarkets, and online marketplaces ensures that it reaches consumers across urban and rural areas.
Its penetration in urban markets is particularly strong, with widespread availability in convenience stores and supermarkets, making it easily accessible to its target audience. In a genius marketing move, center fresh has been made available in paan shops where the vendors might offer it to consumers when they don’t have change.
This has helped new customers to try the brand, broadening the consumer base. It also helped to increase the brand recall rate.
4. Promotion:
Center Fresh’s promotional strategy is built around memorable advertising campaigns that resonate with its target audience. The “Zubaan Pe Rakhe Lagaam” campaign is perhaps Center Fresh’s most iconic advertising effort.
This is an ad film that I remember having watched on television years ago –
Launched in the early 2000s, this campaign cleverly highlighted how the gum’s intense freshness could prevent people from saying the wrong thing at the wrong time. The humorous scenarios depicted in these ads struck a chord with consumers, making the tagline synonymous with the brand and enhancing brand recall.
Center Fresh’s advertising is characterized by its use of humor. For instance, look at this ad film:
This approach not only makes the ads memorable but also helps in building a strong emotional connection with the consumers.
To appeal to the youth segment, it also created this ad:
The brand has effectively integrated traditional and digital media to create a cohesive brand experience. This multi-channel approach ensures that Center Fresh remains relevant across different consumer touchpoints.
In a Nutshell
Center Fresh’s journey in the Indian market shows the importance of adaptability and innovation in maintaining market relevance. By staying true to its core value of freshness while continually evolving to meet consumer needs, the brand has solidified its position as a leader in the chewing gum market.
As the market landscape continues to change, Center Fresh’s ability to innovate and connect with consumers will be key to its ongoing success.
Key Takeaways from Center Fresh’s Marketing
- Innovate Your Product Line:
Regularly introduce new features or variations to keep your product offerings fresh and engaging.
- Expand Distribution Channels:
Diversify your distribution strategy to ensure your product reaches all potential customers.
- Incorporate Humor in Advertising:
Use humor in your marketing campaigns to create memorable and emotionally engaging content that enhances brand recall.