BRAND EQUITY

Introduction
The concept of brand is integral to the success of any given product. But what measures a strong brand or the success of a brand? Is it high market share, popular advertising, effective point of sale, or the ability to command a price premium? But before we get deeper into the subject of brand equity it is necessary for us to know a few things like What is a brand? How is a product branded? & what products can be branded? What is the power of a brand? Thus we will move along the subject after a brief description on the above mentioned questions.

WHAT IS A BRAND?

Brands are an integral part of today's marketplace. Everywhere one looks there are brands, and strong brands are the most successful products across a wide variety of product categories .The quote `An orange is an orange, is an orange, unless, of course, that orange happens to be a Sunkist', a name 80 per cent of consumers know and trust, gives an indication

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of what a successful brand does .The two concepts- consumer knowledge and trust - sum up what brands and brand equity develop; those are the issues that are at the heart of the brand and of building a brand that has a good relationship with the customer.

Brand Equity

The American Marketing Association defines a brand as: 'a name, term, sign, symbol or design, or a combination of these, that identifies the goods or services of one seller or group of sellers and differentiates them from those of the competition.' The notion that a brand is something that identifies the goods from one person, as separate from the goods of another person, is a `historically-based' look at brands. It is the notion of a 'mark' placed on a product to separate it from the rest. A brand however, is much more than this. A brand is a promise a company makes to the customer, of what this product is going to deliver. That is, how the brand is going to fit into the business of the customer. The brand promise is a commitment by the organisation, as making a promise to the customer is something that has to be followed through. It is important that the organisation understands that by making this brand promise, they have to live up to it . The creation of a strong brand is something the company is going to have to commit to ,in order to make it work. Attractiveness and familiarity of a brand name in the general marketplace. Brand equity permits companies to charge premium prices for products and services, contributing to increased profit margins. Brand equity is therefore a valuable asset that companies invest huge amounts of money to develop.

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WHAT CAN BE BRANDED?

Many people ask whether everything can be branded, or if there are types of products that cannot be branded. People say, `Oh sure, you know, consumer goods products; it makes a lot of sense to brand those. But what about if I'm in hi-tech? What if I'm in medical marketing? What if I have rational customers? Does the brand matter in this situation as well?' The

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research that has been done on this shows that, yes, branding does matter in these circumstances. Brands have been found to give an important competitive advantage across a wide variety of industries. In commodities, for example, TATA Salt is the most successful brand of salt with the most successful sales. It is however, mined from the same mine as other brands of salt. What about medical products? Brands clearly have power in this industry ,with over-the-counter products. For example, people know and trust certain headache brands. Prescriptions have also clearly seen a big change, where brands that are being built, are aimed at the consumer ,i.e. the end-user, rather than just at the intermediary level.

BRAND POWER

There are two real sources of power: One derives from the customers 'perspective and whether customers perceive that the brand provides value and meaning. If they do believe it does, then the brand reduces search costs, and this is important to consumers who lead busy lives, and have too many choices to make. Brands help customers by reducing the effort required to choose a good product. Once the initial search is completed by the consumer, and the consumer has built trust and understanding in the brand, this may be carried through to an extended product, which then cuts down the search process in the extended category .Trust in the brand also mitigates perceived risks. For example, if a parent has to go out in the middle of the night to buy a pain-killer for his child, then the name, eg. Tylenol, is going to be very helpful in that purchase .They understand what they are getting, and they believe that it is risky choice because it is a brand they know. Thus, the brand also helps with interpretation, with processing and the confidence that people have in the choices that they make .The brand also gives other benefits of self-expression. These tend to apply more in the consumer goods, and business-to-business realms .In business-to-business, branding can be of great importance: for example ,there is a professional food mixer called the 'Hobart' brand , which is the 'Mercedes' of professional mixers. There is also the issue of providing user satisfaction.

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The idea that `by using this particular brand I am benefiting, because I know that I'm using the best. I know that I'm using something that has quality and in which I have faith' .From the marketer perspective, it can be seen that brands are very important, because they are an effective way to secure a sustainable, competitive advantage. The brand allows improved identification of the product, and the likelihood of a repeat purchase. Brands are a real way to build customer loyalty. They increase the ability to differentiate products, within a line and apart from competitors. They allow for segmentation, and enable a company to produce different brands for different groups of customers. Brands provide a means for legal protection - and this is an added protection for the particular bundle of attributes on offer .

A very important part of branding is the facilitation of new product introduction ; the notion of 'extending'. The thing that allows you to extend to a new territory, into a new country, is very often the brand and the faith that people have in that .Finally, the brand offers a source of financial return. The research on the benefits of strong brands, looking across companies, shows that companies gain greater loyalty because of brands. A strong brand makes people purchase it more often. It creates resistance to competitive marketing action. This means that when the competitor comes up with a new campaign, lowers the price, etc, a strong brand will help the customer to stay with you. Larger margins can stem from strong brands. Strong brands gain the ultimate in pricing. Strong brands are able to raise their prices without having as many people switch, but when a strong brand lowers the price, more consumers come in than in the case of the less strong brand. When a strong brand makes a mistake, people treat it with more leniency and with more kindness than they do if it is a mistake from a weaker brand. Thus it is important for a company to realize what product is important for what kind of customer & in what kind of regions thus the brand preference will differ from person to person, place to place & time to time .Brand Equity determines the value & importance of the product once the product produced is correctly branded & executed

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What is Brand Equity?

In lay terms, brand equity is the value that a consumer attaches to a certain brand. Although brand equity can be measured tangibly by way of certain indicators, a large component of the concept is intangible ,i.e. what perceptions and associations people have of a certain brand ,and the familiarity of those brands in the mind of the consumer.

Brand Equity India too have realized the importance of Brand Equity & thus have established the Indian Brand equity Foundation. (IBEF)In conclusion, brands must be carefully and constantly nurtured overtime. This is not a one shot deal; this is something that we have to being for the long run.

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Brand Equity is defined as follows: Brand equity represents the value (to a consumer) of a product, above that which would result for an otherwise identical product without the brand's name. In other words, brand equity represents the degree to which a brand's name alone contributes value to the offering (again, from the perspective of the consumer)."

Brand equity can be defined as three distinct elements: The total value of a brand as a separable asset -- when it is sold or included on a balance sheet. (Brand Valuation) A measure of the strength of consumers' attachment to a brand.(Brand Loyalty) A description of the associations and beliefs the consumer has about the brand. (Brand Description)

Brand Equity as Brand Value Brand value involves actually placing a dollar or rupee value on a brand name. The reasons for doing this are usually to set a price when the brand is sold and also to include the brand as an intangible asset on a balance sheet (a practice which is not used in some countries).It is important to note that there is a significant difference between an "objective" valuation created for balance sheet purposes, and the actual price that a brand may get when sold. A brand is likely to have a much greater value to one purchaser than another depending on the synergy that exists. For acquisitions, the value of a brand to a certain purchaser is often estimated through scenario planning. This involves determining what future cash flows the company could achieve if it owned and took advantage of the brand.

Brand Equity as Brand Loyalty Loyalty is a core dimension of brand equity and is a way to gauge the strength of a brand. It represents a barrier to entry, a basis for a price premium, and time to respond to

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competitive innovations. The variety of measures used for brand loyalty usually is a combination of one or more of the following: Price/demand measures--focus on a brand's ability to command a higher price or make consumers less sensitive to price increases than price increases for competing brands. Behavioural measures--focus on consumers' behaviour. Attitudinal measures--focus on general evaluative measures suchas 'liking' or 'disliking.' Awareness measures--focus on identifying a brand as being associated with a product category .Brand Loyalty and Equity refer to the notion that some brands are "stronger" or better than others.

Measuring Brand Equity Brand Equity Brand equity does not exist in nature, to be assayed like gold ore in rock. Its measurement depends on how you define it.Brand equity is a concept. It does not exist in nature in the manner that the specific gravity of elements exists as a physical entity. It cannot be assayed like the gold content in a piece of ore. Those who argue that brand equity cannot be measured miss the essential point .Its measurement depends on how it is defined. That definition must have pragmatic value to a marketer of consumer products or services .It should help improve marketing effectiveness and efficiency by providing a yardstick with which to evaluate these things. Also, the definition should reflect the role of the brand in the dynamics of consumer choice in a competitive environment. To its buyers, a brand is a promise A brand is a symbol carrying with it certain associations and images. In customer terms, a brand represents a promise. Its value to consumers is that it reduces risk, saves time and provides reassurance .Predictable results are the promise of a brand. As long as a product or service meets a customers expectations with no unexpected negative results, a buyer is likely to continue to buy the brand. It is the customer-oriented definition of a brand that is at the heart of the concept of brand equity. Thus it is a promise expressed in the form of providing quality to its customers

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Qualitative Measures: The Brand Equity Ten The Brand Equity Ten are ten sets of measures grouped into five categories, which attempt to gauge the strength of a brand. The first four categories represent customer perceptions of the brand along the four dimensions of brand equity- loyalty, perceived quality, associations and awareness. The fifth includes two sets of market behaviour measures.

Loyalty

1 .Price Premium : A basic indicator of loyalty is the amount a customer will pay for a product in comparison to other comparable products. A price premium can be determined by simply asking consumers how much more they would be willing to pay for the brand.

2. Customer Satisfaction: A direct measure of customer satisfaction can be applied to existing customers. The focus can be the last use experience or simply the use experience from the customer's view.

Perceived Quality and Leadership Measures

3 . Perceived Quality is one of the key dimensions of brand equity and has been shown to be associated with price premiums, price elasticitys, brand usage and stock return. It can be calculated by asking consumers to directly compare similar brands.

4. Leadership/Popularity has three dimensions.

First , if enough consumers are buying into the brand concept it must have merit. Second , leadership often taps innovation within a product class. Third , leadership taps the dynamics of consumer acceptance .Namely, people are uneasy swimming against the tide are a likely to buy a popular product. This can be measured by asking consumers about the product's leadership position, its popularity and its innovative qualities.

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Associations/ Differentiation Measures

5 Perceived Value: This dimension simply involves determining whether the product provides good value for the money and whether there are reasons to buy this brand over competitive brands.

6. Brand Personality: This element is based on the brand-as-person perspective. For some brands, the brand personality can provide links to the brands emotional and self-expressive benefits.

7. Organizational Associations : This dimension considers the type of organization that lies behind the brand.

Awareness Measures

8. Brand awareness reflects the salience of the product in the consumer's mind and involves various levels including recognition, recall, brand dominance, and brand knowledge and brand opinion. Market Behaviour Measures

9. Market Share : The performance of a brand as measured by market share often provides a valid and dynamic reflection of the brand's standing with customers.

10.Price and Distribution indices: Market share can prove deceptive when it increases as a result of reduced prices or promotions. Calculating market price and distribution coverage can provide more accurate picture of the product's true strength. Relative market price can be calculated by dividing the average price at which the product was sold during the month by the average price at which all the brands were sold.

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BRAND EQUITY COMPONENTS OF BRAND EQUITY

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INCREASING BRAND EQUITY We believe this approach to defining and measuring brand equity helps to focus marketing strategy and make it easier to choose among alternatives. If, for example, a major goal is to increase brand equity, the marketing strategies and tactics to be used must either increase brand loyalty or pave the way for a price increase while not losing a significant number of customers .Experience shows that brand loyalty can be strengthened in one of several ways: increasing continuity of purchase via such techniques as frequent flier or frequent buyer programs, members clubs ,continuity promotions that reward cumulative purchases; affinity programs, that create identification between the users of a brand and some recognizable organization, cause, lifestyle or movement. In sum, we believe that a brand is a promise made to its customers and to its owners. Promises kept yield loyal customers and will produce a steady stream of profits for years to come. Brand equity is at its root the aggregate value of the future purchases of its customers. And that is what brand marketing must maintain and grow.

BUILDING BRAND EQUITY The basis of brand equity lies in the relationship that develops between a consumer and the company selling the products or services under the brand name. A consumer who prefers a particular brand basically agrees to select that brand over others based primarily on his or her perception of the brand and its value. The consumer will reward the brand owner with dollars, almost assuring future cash flows to the company, as long as his or her brand preference remains intact. The buyer may even pay a higher price for the company's goods or services because of his commitment, or passive agreement, to buy the brand. In return for the buyer's brand loyalty, the company essentially assures the buyer that the product will confer the benefits associated with, and expected from, the brand . Building a brand requires the company to gain name recognition for its product, get the consumer to actually try its brand ,and then convince the buyer that the brand is acceptable. Only after those triumphs can the company hope to secure some degree of preference for its brand .Name awareness is a critical factor in achieving brand success.

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Companies may spend vast sums of money and effort just to attain recognition of a new brand. But getting consumers to recognize a brand name is only half the battle in building brand equity. It is also important for the company to establish strong, positive associations with the brand and its use in the minds of consumers. The first step in building brand equity is for the company to define itself and what it hopes to represent for consumers. The next step is to make sure that all aspects of the company's operations support this image, from its product and service offerings to its marketing programs to its customer service policies. When all of these elements support a distinctive image of the company and its products in the minds of consumers, the company has established brand equity.

Laws of Brand Equity The Law of Contraction : A brand becomes stronger when its focus is narrowed. This does not imply carrying a limited product line, but rather limiting and focusing a brand on only one type of core product, which in Titan's case happens to be watches. Titan, though possessed of a wide product line, has stuck to its focus. It hasn't launched other types of products and stuck them with the Titan name, which would have only gone on to cannibalize the value of the core brand. As a result of this, Titan has developed for itself an image of being "time-keeping experts" in the minds of the consumers. The Law of Advertising : Once born, a brand needs to actively advertise in order to stay healthy and maintain market share. If done right, advertising is more of an investment than an expense. Titan has implemented this by always maintaining a high degree of visibility when it comes to its advertising. In addition, it possesses one of the most recognizable ad-jingles in the history of Indian advertising. The Law of the Word : Any brand worth its salt should strive to "own" a word or words in the mind of the consumer. Examples of such brands are Volvo, who owns the word "safety", Mercedes ,who own the word "prestige" and Coca-Cola, who own the word "cola". Titan, at least when viewed in the context of the Indian watch market, seems to own the word "quality".

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The Law of Quality : Though quality is essential to the survival and growth of any brand, the fact remains that brands are not built by quality alone. The perception of the brand is as, if not more significant than mere quality. It is here that Titan "scores" .As mentioned previously Titan more or less owns the word "quality" in the minds of the consumers, thereby implying that it is perceived as a quality product. Thus, it's actual quality, as well as it's perception of being a quality product combine to work towards building the strength of the Titan brand. The Law of the Name : In the long run, a brand is nothing more than a name. The difference between products is thus not so much between the products, as it is between their names, or perceptions of the names. The Law of the Company : Brands are brands, and companies are companies. There is a difference. Titan is owned by the Tata Group, who though highly regarded in Indian industry are associated more with heavy industries such as steel and truck building, than with watch making. Chances are that no one would buy a Tata watch (its name invoking the same, if not greater reaction than an HMT). People would, however buy a Titan. The Law of Siblings: There is always a time and a place to launch a second brand, but when this is done it should been sured that both brands have separate and distinct identities. Each brand should be kept unique and special. When Titan decided to diversify into the jewellery segment, they did not call their new brand 'Titan Jewellery', in spite of the high standing of the Titan name in the minds of the Indian consumers. To do so would be to undermine the power of the Titan brand; this is that of being watch experts. Hence, the jewellery was called Tanishq.

The Law of Shape : A brand's logotype should be well designed, in order to fit the eyes. Visual symbols (again with the possible exceptions of Nike's "swoosh" or Mercedes' 3pointedstar) are highly overrated. The meaning lies in the words, not the symbol. The Titan logo, though well recognizable (please refer to the cover page in the rare event that you do, in

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fact actually NOT recognize it) is always accompanied by the words "TITAN" in a clear, crisp typeface-denoting power (through the use of capital letters) and class at the same time. The Law of Color : A brand should use a colour and type face that is the opposite of its major competitor. For example, while Coca-Cola stands for red and appears in running hand writing, Pepsi stands for blue and appears in capital, modern looking letters. Similarly, while HMT appears in small silver lettering, Titan appears in capital letters, and is usually in black. The Law of Borders : Finally, a brand should know no borders or boundaries. With a name that stands for Hindustan Machine Tools, HMT would be hard-pressed to sell a single watch outside Indian Territory. Such is not the case with the more globally oriented name.

The Benefits of Brand Equity What are the benefits of strong brand equity? Well, strong brand equity leads to, strong market share, customer loyalty, more favourable response to price increases, less vulnerability to competitor activity ,brand extension opportunities, and communication messages which reach the consumer. In attaining these benefits, strong brand equity will ensure that a product is of an enduring nature. Ultimately, strong brand equity will improve profitability .To build a winning brand, therefore, is to understand the relationship between brand equity and market share, and to leverage both to their full potential. In so doing, a brand will be successful and sustainable in the long term. It must be kept in mind that increasing market share does not increase brand equity, whereas increasing brand equity invariably leads to increased market share.

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Brand Equity Model

Brand Equity model consists of brand identity, brand symbols, brand meaning.

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Dos & Donts in Brand Equity

Define the core brand's position and value clearly: A product should be properly positioned and its value (which includes price, quality and image) should be properly defined. As mentioned in the section regarding the law of the word, the two words most highly identified with Titan are quality" and "Indian". These should thus be emphasized upon. This is exactly what Titan has done, positioning it's watches as high quality, Indian made watches, and emphasizing upon it's value for money as well as it's classy image.

Don't neglect Public Relations: Public Relations, or PR, are vital to the success and survival of any brand. Unfortunately, its value as a brand building tool has more often than not, been undervalued. Newsletters, event and entertainment sponsorships, and other forms of PR help to define the personality of a company or brand, positioning it as a good corporate citizen, and someone nice to do business with. In keeping with India's obsession with cricket, Titan has often sponsored cricket tournaments, including the now legendary 1997 Titan Cup.

Always remember the USP: A USP (Unique Selling Proposition) is not only what gives the customer a reason to buy the brand, but is also what helps him distinguish the brand from its competitors. Titan's USP is two fold, and can perhaps best be described in six words. "An Indian company offering international quality".

Expand sensibly: Extensions should always be logical and market driven and not mere " p r o d u c t e x p l o s i o n s " . A s t h e m a r k e t e n v i r o n m e n t c h a n g e s w i t h t h e addition of say, greater competition, or changing customer wants and p e r c e p t i o n s , b r a n d e x t e n s i o n s h o u l d b e u n d e r t a k e n . I t s h o u l d n o t , however be undertaken arbitrarily

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Brand Equity & Customer Equity

Brand Equity is defined as value and strength of the Brand that decides its worth whereas Customer Equity is defined in terms of lifetime values of all customers. Both stress on significance of customer loyalty to the brand Both stress upon the face that value is created by having as many customers as possible paying as high price as possible. But conceptually both brand equity and customer equity differ. While customer equity puts too much emphasis on lower line financial value got from the customers, brand equity attempts to put more emphasis on strategic issues in managing brands. Customer Equity is less narrow alternative. It can overlook a brands optional value and their capacity effect revenues and cost beyond the present marketing environment. Just as customer equity can persist without brand equity, brand equity may also exist without customer equity. For instance I may have positive attitude towards brands - McDonald and Burger King, but I may only purchase from McDonalds brand consistently.

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COLGATE (INDIA)

Overview Colgate-Palmolive is the World Leader in Oral Care with operations in over 200 countries. Colgate Palmolive (India) Limited is India's leading provider of scientifically proven oral care products with multiple benefits at various price points. The range includes toothpastes, toothpowder and toothbrushes under the "Colgate" brand, as well as a specialised range of dental therapies under the banner of Colgate Oral Pharmaceuticals. These have become an essential part of daily oral hygiene and therapeutic oral care in India. The Company

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also provides a range of personal care products under the "Palmolive" brand name. Being ranked as India's # 1 brand across all categories by the A&M-MODE annual survey of India's Top Brands, it is always trying to maintain its quality and aims at maximum customer satisfaction. Colgate people working around the world share a commitment to three core corporate values: Caring, Global Team work and continuous improvement C o l g a t e h a s b e e n r a t e d t h e # 1 b r a n d a c r o s s a l l categories in A&M's annual survey of India's Top Brands conducted by Taylor Nelson So fresh MODE .Powered by a rise in its brand 'POWER Score' from 5 3 . 9 1 i n t h e l a s t a n n u a l s u r v e y t o 5 6 . 2 i n 2 0 0 1 , Colgate has been ranked the country's #1 brand since the survey was introduced in 1992.Eight out of nine times COLGATE has emerged as India's Top Brand. The survey shows a very strong rural presence underlining the success of Colgate's distribution and marketing Program.

A Brief History Of Colgate

A Legend Is Born The Colgate Story: 1806 : William Colgate, sets up a starch, soap and candle business in New York city. 1807: T h e c o m p a n y b e c o m e C o l g a t e 7 S m i t h w i t h F r a n c i s S m i t h a s partner 1813: T h e c o m p a n y n a m e c h a n g e d t o W i l l i a m C o l g a t e & C o . W i t h brother Bowles Colgate as partner.

1857:T h e f o u n d e r W i l l i a m C o l g a t e d i e s a n d t h e c o m p a n y b e c a m e Colgate & Co.

1937: Colgate Palmolive incorporated in India, launches Colgate Dental Cream and became the company dedicated to the oral health of the nation. A commitment rewarded with satisfaction, trust and goodwill of millions. Today Colgate is Indias most trusted brand.

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1937:Colgate-Palmolive (India) Pvt. Ltd. Was incorporated in 1937. Introduced products that became market legends.

1937:Colgate Dental Cream was introduced.

1949:Colgate toothpowder and toothbrushes were launched.

1950:Palmolive shaving cream was launched.

1951:Halo shampoo was launched.

1952:Charmis cream was launched.

1967:Manufacturing operations commenced at Sewri, Mumbai. 1972: colgate introduced a truly refreshing product Palmolive After Shave Lotion. 1976: C o l g a t e l a u n c h e d t h e Y o u n g I n d i a P r o g r a m b r i g h t s m i l e s become brighter.

1978: The Indian public was offered 60% equity in the company, with shares being listed on the Bombay Stock Exchange. Colgate Palmolive became a blue chip company on the Indian bourses.

1988:Colgate relocated its toothpowder plant to Waluj, Aurangabad.

1989: C o l g a t e i n v e s t s i n a s t a t e - o f - t h e - a r t m a n u f a c t u r i n g p l a n t f o r fatty acids and soaps at the same location. Also, Palmolive Extra Care soap was launched.

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1990: C o l g a t e G e l w a s l a u n c h e d & b r i g h t e r s m i l e s f o l l o w e d . A l s o , Palmolive Shave Foam was introduced. 1992:Colgate was rated as Indias No. 1 brand across all categories. 1993: Colgate Total the most technologically advanced tooth paste w a s launched. Colgate Palmolive USA reaffirms its commitment, by raising its equity from 40% to 51%. Colgate was once again rated Indias No. 1 brand.

1994:Colgate Calcium guard was launched. Once again the Annual Board P o w e r S u r v e y r a n k e d C o l g a t e N o . 1 a c r o s s a l l c a t e g o r i e s f o r t h e 3 rd succession year. 1995:Again No. 1 Brand for the 4th year . 1996: Colgate Oral Pharmaceutical products were launched in Asia -P a c i f i c region. This year, an ISO 9002 certification was awarded to

Aurangabad fatty acid, toilet soap and toothpowder plants. Again ranked No.1 brand for 5th time. 1996: Colgate Palmolive entered a new category household care ,with the launch of Axion dishwashing paste.

1997: C o l g a t e C a l c i u m g u a r d & C o l g a t e P l u s t o o t h b r u s h e s b e c a m e t h e first to receive the Indian Dental Associations Seal of Acceptance. Colgate ranked No.1 brand for the 6th time. 1999: Colgate was rated Indias Premier Brand by A&M Magazines a n n u a l survey of Indias Top Brands. This was a decade in which Colgate-Palmolive introduced the best of its products in India. The Indian consumer was offered top-of-the-line products

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BRAND EQUITY SWOT ANALYSIS OF COLGATE.

SWOT Analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to identify the strategies that will create a firm specific business model that will best align an organizations resources and capabilities to the requirements of the environment in which the firm operates. In other words, it is the foundation for evaluating the internal potential and limitations and the probable/likely opportunities and threats from the external environment. It views all positive and negative factors inside and outside the firm that affect the success. A consistent study of the environment in which the firm operates helps in forecasting/predicting the changing trends and also helps in including them in the decision-making process of the organization.

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Strength : As per our estimates, 12.2% of the total world population lives in rural India. Currently, only a small portion (about 15%-20%) of region has been tapped. Although, expansion in rural areas requires huge investments, it is a market that cannot be overlooked and has huge potential. To put things in perspective, the per capita consumption of toothpaste in India is only 82 gms, as compared to 262 gms for Thailand, 376 gms for Mexico and 518 gms for USA (Source: Colgate, Equitymaster Research). In India, urban per capita consumption is 153 gms whereas rural consumption is a mere 38 gms. 1. qualified sales staff-as the company today is dealing with the best available staff.all having good selling techniques. 2. strong financial back up 3. white gel-it provides maximum freshness in mouth and also helps in fighting against bacterial actions 4. white crystals provides instant freshness.helps in removal of plaque 5. maximum protection-it contains sodium fluoride helps in prevention from exposed root cavaties.it provides 12hour protection.helps in prevention of tender gums. OPPORTUNITIES : 1. Large investment-as they are easily available with large investments due to their past sales,they can easily fulfil their financial needs or can make huge investments so they earn the biggest opportunity. 2. Intensive distribution-product they are producing is of daily usage nature or the daily usable commodity so the company is using intensive distribution which provides opportunity for the company that the is available at each and every shop and due to this the sales increases. 3. Stable economic conditions-company is having stable economic conditions which helps in boosting the growth of the product. 4. technology-the technology factor being used by colgate company is at its BANG. 5. globalisation-today the world is becoming a global village,so taking it as an opportunity we can considered it to be a prospect

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WEAKNESS : 1. Giant competitors like pepsodent and close up..

The company has been facing immense competition from organised as well as unorganised players. HLL is the closet rival of Colgate with a share of 34% with its Pepsodent and Close-up (gel where it has a lion's share) brands. The latest entrant in the organised sector is LG that has ventured into the FMCG market and launched premium consumer products across 8 categories including toothpastes, shampoos, soaps, detergents, etc. Also, there has been speculation from sometime now that P&G (its worldwide rival) would debut its billion-dollar-plus toothpaste brand Crest in India. This could intensify competition in the segment. 2. high taxes-due to highly taxation policy the prices of the tube rises which sometimes creates a hurdle in the growth of the company. THREATS : 1.chances of failure-as the company produces different types of paste in colgate brand like in gel form or in crystals form or the orange gel.so the product is new to the market may be the people accept the new taste in toothpaste field or may be they may reject it.company has no idea of success.it disturbs the whole companies management. 2.competitors-many companies are there to compete the same product in the market.there is a high rate of competition in the market.there are many types of brands of paste easily available in the market.international companies are also participating in the same process as they are also launching many many brands of the same product in the same market.like china offering their product at cheaper price which also acts like a hurdle in the growth of companies growth. 3.sometimes due unstable political conditions company changes its plans n policies as the different government provides different subsidies.whichever government rules we have to act accordingly.

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Brand Loyalty

How did it win consumers? The success lies in the satisfaction, trust and goodwill of their consumers. They believe, that they can best serve the needs of consumers through a consistent, fair and sensitive consumers communication program. For that reason, Colgate has established Consumer Affairs in 31locations around the world - many of them with toll-free 800#s. The mission of Consumer Affairs representatives who answer these :

Listen and learn about consumers in a professional, consistent and caring manner that exceeds their expectations so that they experience satisfaction with their products, in all respects.

Bring consumer feedback to the decision-making process at Colgate to help improve existing products and develop new products that will meet consumer needs. The Consumer Affairs Department in India is staffed w i t h p r o f e s s i o n a l r e p r e s e n t a t i v e s w h o a r e knowledgeable about Colgate -Palmolive products and welcome the opportunity to hear from c o n s u m e r s . T o b e n e f i t t h e c o n s u m e r t h e y h a v e i n p l a c e a T o l l - f r e e number and helpline.

Environment The protection of the environment and the health and safety of our customers, our people and the communities in which we live and operate is an integral part of ColgatePalmolive's mission to become the best truly global consumer products company. We are committed to conducting ourselves in a socially responsible manner and to keeping our business operations environmentally sound. It is our world wide policy to manufacture and market our products and operate our facilities so that we comply with or exceed applicable environmental rules and regulations. The health and safety of our customers, our employees, and the communities in which we operate must be paramount in all we do. These concerns have been translated into the following guiding principles :

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BRAND EQUITY
Products Colgate-Palmolive will provide the public with safe and effective products and will strive to produce products that have the lowest practical impact on the environment. Packaging To reduce the impact of our product packaging on the environment, we will work to improve the environmental compatibility of all our packaging materials. Colgate endorses the worldwide hierarchy of solid waste management: source reduction; recycling (including reuse);incineration; and land filling. Facilities Colgate-Palmolive is committed to the health and safety of our employees and the communities in which we operate, as well as the protection of the environment. We will establish and maintain programs for the operation and design of our facilities that meet or exceed applicable environmental, health and safety laws and regulations. Business Colgate-Palmolive will consider environmental, health and safety issues in all significant business transactions, including acquisitions ,divestitures, discontinuance of operations, and entry into joint ventures . We will also act in a responsible manner with respect to the environmental protection of the lands under our management and ownership. ATTRIBUTE A very generic brand. The word Colgate has taken place of the word toothpaste. Example: In Gujarat, people call Close-Up as Lal Colgate(red toothpaste) and they call Colgate Dental Cream as White Colgate(white toothpaste) BENEFITS You dont have to search for any other toothpaste.

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BRAND EQUITY
VALUES The three core values of Caring, Global Teamwork and Continuous Improvement are put into action at work as well as in communities. The results are better products and a better quality of life throughout the Colgate world. CULTURE The Code of Conduct reinforces and enhances their corporate culture and addresses issues of law, ethics and fairness in all their daily business relationships. PERSONALITY Ranked 8 times as No. 1 Brand USER A 6 year young boy to 60 year old men in the family uses the brand. LOGO The face with a Colgate smile is the logo of the brand. The face is shown as the globe with a Colgate smile over it, this represents that the whole world should smile using Colgate. This indicates a personal feeling in the mind of the consumer and he is motivated to buy the product. COLOUR Colgate has its logo colour combination of red, blue and white colours .They have not changed the colour combination from the beginning as these 3 colours have left a mark (impression) in the mind of the people. Code Of Conduct Colgate people around the world have built a reputation as a successful company with the highest ethical standards. Through living our values of Caring, Global Teamwork, and Continuous Improvement, and adhering to the highest principles of integrity, honour , and concern for the environment and others, they seek to:

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Provide safe and quality products of value to consumers Increase shareholder value Offer opportunities for personal and professional growth to all Colgate people Fullfill our corporate social responsibilities as a member of the global community

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BRAND EQUITY CONCLUSION (AND SUGGESTION) Colgate is Indias most trusted brand and market leader in India in oral care market. Perfectly branded and positioned their products and categories They should involve Colgate in personal care category They should create mascot by that indirectly relate with other category

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BRAND EQUITY BIBLIOGRAPHY

1 MARKETING STRATEGIES & PLANS 2 WWW.GOOGLE.CO.IN

3 WWW.WIKIPEDIA.COM

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