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Colgateandpepsodent
Colgateandpepsodent
A Comparative Analysis of
Colgate and Pepsodent
Bachelor of Business Administration
Department of Business Administration
(session-2015-18)
This present Project report is an image of what I have done and observed
during my market survey in COLGATE & PEPSODENT.
This report is the result of the work done during the research period...
INTRODUCTION
Introduction of Toothpaste Industry
The toothpaste history in India can be tracked back from 1975 with 1200 tonnes of
toothpaste produced by the toothpaste industry. Prior to the toothpastes Oral Hygiene
was the domain of local home made powders and ayurvedh practitioners. With the entry
of Colgate in Indian marketplace the awareness about Oral care and the importance of
oral care. In recent years the Industry has shown impressive growth rate of 18.6% (this
The growth in the Urban market has been largely by the Gel Segment. Presently, a large
chunk of the Market is still held by Colgate. The major players in the toothpaste Industry
being Colgate Palmolive and Hindustan Lever Limited and several minor players like
Presently Colgate Dental Cream holds 52% of market share. HLL’s Close up lies far
behind with 23% of the existing market share. The third player in the marketplace in
terms of market share is Colgate Gel with 10.5% of the market share. That leaves 14.5%
market share for other Brands like Pepsodent, Pepsodent G, Promise, Babool,
Sensofoam, Forhans, Cibaca, Neem, Vicco etc. The toothpaste market is presently
valued at Rs. 750 crores out of which the Gel segment has already bagged 1/3rd portion
of it. The Gel segment presently stands at Rs. 248 crores and is growing at a rate
much faster than Cream. In India toothpaste usage as compared to other countries is
very low which signifies about the potential of the market. In Urban India the usage of
toothpaste per person per year is just 190gms. Where as it is 200gms of toothpaste per
countries as USA and other European countries the toothpaste usage is 375 gms per
person year. In India the toothpastes companies are going in for advertising on a heavy
note, on an average the companies managing this FMCG category are spending 6.15%
of their sales on development. Colgate Palmolive had shelled out 15% of their sales on
ads in the year 1994. Dabur had an ad expenditure of 5.07% for the year 1993. whereas
Strengths
Market reach for both rural and urban areas
Availability of raw material
Low operational cost
Weaknesses
Point of parity
Research and Development
Opportunities
Purchasing power increase
Health camp
Low dentist population ratio
Threats
Well established competitor substitute
Top Ten Toothpaste Brands
SENSODYNE (GlaxoSmithKline)
AQUAFRESH (GlaxoSmithKline)
BABOOL (GlaxoSmithKline)
MESWAK (GlaxoSmithKline)
1806 William Colgate starts a starch, soap and candle business on Dutch Street
in New York City.
1857 Upon the death of founder William Colgate, the company is recognized as
Colgate & Company under the management of Samuel Colgate, his son.
1906 Colgate & Company celebrates its 100th anniversary. Product line includes
over 800 different products.
1930 On March 13, Colgate is first listed on the New York Stock Exchange.
1939 Dr. Mark L. Morris develops a pet food to help save a guide dog named
Buddy from kidney disease. This breakthrough leads to the first Hill's
Prescription Diet product.
1956 Colgate opens corporate headquarters at 300 Park Avenue in New York
City.
1968 Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities.
1972 Colgate acquires Hoyt Laboratories, which later becomes Colgate Oral
Pharmaceuticals.
1985 Colgate-Palmolive enters into a joint venture with Hong Kong based
Hewley & Hazel, a leading oral care company, which adds strength in key Asian
markets.
1989 Annual Company sales surpass the $5 billion mark.
1995 Colgate enters Central Europe and Russia, expanding into fast growing
markets.
1997 Colgate Total toothpaste is introduced in the U.S. and quickly becomes the
market leader. Only Colgate Total, with its 12 hours protection, fights a complete
range of oral health problems.
2004 Colgate acquires the GABA oral care business in Europe, with its strength
in the important European pharmacy channel and its ties with the dental
community.
Today, with sales surpassing $15 billion, Colgate focuses on four core
businesses; Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate now
sells its products in over 200 countries and territories worldwide.
History of Pepsodent
Pepsodent toothpaste was introduced in the USA in 1915 by the Pepsodent Company of
Chicago. The original formula for the paste contained pepsin, a digestive agent
designed to break down and digest food deposits on the teeth, hence the brand and
company name.
From 1930 to late 1933 a massive animated neon advertising sign, featuring a young
girl on a swing, hung on West 47th Street in Times Square in New York City. (This ad
was re-created for the climax of the 2005 film King Kong and was featured in the
Pepsodent in the UK increased rapidly, more than doubling between 1944 and 1950. The
company outgrew its original factory in Park Royal, and the manufacture of the product
Pepsodent was a very popular brand before the mid-1950s, but its makers were slow to
add fluoride to its formula to counter the rise of other highly promoted brands such as
Crest and Gleem toothpaste by Procter & Gamble, and Colgate's eponymous product;
in discount stores and retails for roughly half the price of similarly sized tubes of Crest
or of Colgate.
The product was discontinued in South Africa in 1974 but was revived in 1976 with a
new ad slogan "Gets Your Teeth Their Whitest" featuring celebrity endorsers Rita
Moreno, Steve Lawrence, and others. The popular slogan was also changed in South
Africa to "You'll wonder where the dullness went / when you polish your teeth with
Pepsodent".
brand rights in the United States from Unilever. Unilever still holds the rights to
Pepsodent, where it is sold outside the U.S. Church & Dwight also holds the rights to
such toothpaste brands as Aim, Arm & Hammer, Close-Up and Mentadent. This change
of ownership eventually led to addition of fluoride to the toothpaste. The company’s
new marketing strategy was retro packaging, retro flavor, modern levels of fluoride
content and low price. They offer two versions of Pepsodent; one with the original flavor,
as some consumers like the minty flavor it had in its glory days, and another with
enhanced whitening ingredients. Both versions, according to Church & Dwight, feature a
“proven cavity-fighting formula” that aids in the removal of plaque and promotes strong
The American Dental Association recommends brushing your teeth at least twice a day
with a fluoride toothpaste that bears the ADA’s Seal of Acceptance. Church & Dwight’s
Aim Cavity Protection Toothpaste and Arm & Hammer Dental Care Advance Cleaning
Mint Toothpaste with Baking Soda bear the ADA seal of acceptance. However, as of
July 2010, Pepsodent toothpaste, despite its staying power over the decades, did not.
Pepsodent is still sold as a Unilever property in all markets except the United States and
Canada. In Vietnam, Pepsodent is called P/S. In 2013, Pepsodent was ranked 201st
among India's most trusted brands according to the Brand Trust Report 2013 India
study, a research conducted by Trust Research Advisory. According to the Brand trust
Report 2014, Pepsodent moved up to 71st position among India's most trusted brands.
Pepsodent's parent company Hindustan Unilever was ranked 47th in the Trust Report
2014.
Swot analysis of Colgate
Strength
Geographically diversified industry
Strong brand image
Strong market share
Appealing advertisements
Huge sales growth
Skilled workforce
Strong promotional strategies
Weaknesses
Saturated market
Market share is limited due to the presence of other strong FMCG brand
Fake brands are supplied under their brand names
Opportunities
Tap rural market and increase penetration in same
Emerging markets may attract business
Differentiation strategy is required
Threats
Increase in commodity prices
Fierce competition
New entrants in the market can be a threat to Colgate
Swot analysis of Pepsodent
Strengths
Endorsed by FDI ( the largest dental association globally)
Among the most trusted brands having celebrities like Shahrukh Khan as
brand ambassador
Pepsodent toothpaste fights germs to protect teeth against cavities and
gives strong teeth, fresh breath and healthy gums
Pepsodent as an Oral Care expert offers solution to specific problems like
bleeding gums and sensitive teeth
Pepsodent also includes a range of toothbrushes
Weaknesses
Colgate is the top-of-the-mind toothpaste brand hance intense
competition
Low penetration in the rural areas
Opportunities
Innovative marketing like Pepsodent packs included a Germ Indicator in
February-may 2002, which allowed consumers to see the efficacy in
fighting germs
Pepsodent campaign which aims at educating consumers on the need for
germ protection through the night
Smaller packaging for rural markets, tie-ups with hotel chains, schools
Threats
Competition from internal brand like Close Up in the same segment and
external brand like Colgate
Oral hygiene still lacks in the rural parts of the country
Comparison between Colgate and Pepsodent
Colgate Pepsodent
Type Public
Founded 1806
Website www.colgatepalmolive.com
The Colgate toothpaste comprises abrasive materials like fluoride that help
in scrubbing the plaque away from the teeth and polishes the surface by
removing the food stains. Presently, thirteen variants of the toothpaste are
available in the market that provides protection from cavities, prevention of
gingivitis and plaque, longer duration of fresh breath, controlling of tartar,
and whitening of teeth, strengthening of enamel and sensitivity relief.
Some of the various Colgate toothpaste products are-
Colgate Toothpaste
Colgate Total Advanced Whitening
Colgate Total Advanced Clean
Colgate Advanced Fresh Gel
Colgate 2 in 1 Oxygen Whitening
Colgate 2 in 1 Icy Blast
Colgate 2 in 1 Kids Strawberry
Colgate Regular
Colgate Tartar Control Toothpaste
Colgate Total
Colgate Active Salt
Colgate Total 12
Colgate Cibaca
Colgate Sensitive
Colgate Max Fresh
Colgate Fresh Energy Gel
Colgate Toothbrush
Colgate 360
Colgate Zigzag
Colgate Cibaca
Vision-
We work to create a better future everyday.
We will inspire people to take small everyday actions that can add up
to a big difference for the world.
We will develop new ways of doing business with the aim of doubling
the size of our company while reducing our environmental impact.
Company Profile of Pepsodent
Category FMCG
Segmentation:-
Demographic :- > On the basis of age group, gender.
> Different products for kids & adults, for boys & girls.
Psychographic/Behavioral:- > On the basis of their oral care needs
> Whitening, Sensitivity
Targeting:-
Target group is mostly middle class families
The Target group for various products differ on the basis of value
proposition
For CAS:-
> Current user of Toothpaste products
> People who are conscious about the oral health
> People facing issues with oral health
Positioning:-
Functional benefits
Dental hygiene
Product basis
The Doctor recommendation confirming the quality of the
product
Competitor based
The added value than the competitor products
Price Positioning
Trial products, products at multiple price points
PLC - PRODUCT LIFE CYCLE OF COLGATE
PEPSODENT
✓ STP Process of Pepsodent
Targeting:-
Pepsodent is targeting the adult male/female and kids by different
varieties of products.
They also target mothers as they use kids in their ads.
The variants of Pepsodent in totality target complete family as a
family care products.
Positioning:-
Pepsodent is positioned as long-lasting protection from germs; it
could fight germs for hours after brushing
Research suggested that mothers worry about what their kids eat,
especially when they are away from them, and its impact on their
dental health. Using that insight, Pepsodent launched the 'Dishoom
Dishoom' ad that said; Let Pepsodent fight germs for you.
✓Marketing Mix of Pepsodent
4 P's
Product
Price
Place
Promotion
Marketing Mix of Pepsodent analyses the brand/company which covers 4Ps (Product,
Price, Place, Promotion) and explains the Pepsodent marketing strategy.
Product:
Pepsodent is one of the leading oral care brands primarily into toothpastes and
toothbrushes. A brief about the product portfolio in its marketing mix can be explained
as follows. Pepsodent offers 5 different products in its dental cream segment namely
Expert protection, Clove and Salt, Germicheck, Supersalt, Whitening. Pepsodent is
among the most trusted brands in India (Brand Equity, Economic Times, India).
Pepsodent has positioned the product as one that fights germs and offers protection
against cavities and gum related problems. The brand also offers toothbrushes to its
product range. In the oral care market in India, toothpastes have the highest share
followed by toothbrushes. HUL has bundled certain product ranges of Pepsodent to
offer it in SKUs of 150 g, 300g, 100g and 175 g. For its premium offerings like Gum care,
expert protection, the SKUs has been maintained at 70g. Pepsodent mainly caters to the
urban market. There is a growing preference for products with natural and ayurvedic
ingredients. Indian toothpaste market is a growing segment with several opportunities
available. Almost one third of the population does not have access to any of the modern
oral healthcare facilities making it an attractive prospect for leading key players.
Toothpastes are available in the powder, gel and cream formats in the market.
Price:
Pepsodent mainly targets the urban segment who do not mind spending more for a
quality product. The brand has positioned some of its daily use products a little above
that of Colgate. The additional price is commanded for its Germ shield active
ingredients. The key value proposition of Pepsodent is the value it offers for protection
against germs and cavities. Despite the USP the pricing of Pepsodent products in its
marketing mix is competitive enough to have a strong market share.
Place:
Pepsodent has strong marketing focus and uses all channels to ensure good brand
visibility. Pepsodent used a problem-solving approach initially when the product was
launched. Its advertisements communicated about the problems that arise out of
germs and the film that deposits on teeth after food consumption. It was launched as a
10-day trial pack product allowing the consumers to test it before making volume
purchases. Pepsodent ads usually target children. Unilever believes in catching the
customers young, hence they specifically communicate its advertisements to children.
Toothpastes are tunnel products where consumers do not spend much time trying to
understand which product is the best. Hence, aggressive advertisements will help the
brands to gain a higher brand recall among consumers. Recently Pepsodent launched a
digital behaviour change programme that aims at making brushing a happy family
activity. Pepsodent are trying to move away from their traditional image of a product
exclusively for the children. Hence, this gives an overview of the marketing mix of
Pepsodent.
PROMOTIONAL
CAMPAIGN
COLGATE
PEPSODENT
H. R. POLICY
Introduction to HR Practice:-
With reference to the HR Practice brief knowledge has been gained
how the Recruitment cycle functions, Selection done, training
calendar prepared, what does compensation & cost to company
means and the steps of performance appraisal.
HR Practices helps in increasing the productivity and quality, and to
gain the competitive advantage of a work force strategically aligned
with the organization's goals and objectives.
Recruitment:-
It is a process to discover the sources of manpower to meet the
requirements of the staffing schedules and to employ the effective
measures for attracting that manpower in adequate numbers to
facilitate effective selection of an efficient work force. Edwin B.
Flippo has employees and stimulating them to apply for jobs in the
organization.
Process of Recruitment
Finding out the requirement (hiring vs. exit), upcoming vacancies,
kind of employees needed.
Developing suitable techniques to attract suitable candidates.
Stimulating as many candidates as possible.
Sources of Recruitment
Internal sources External sources
Selection:-
Selection is buying an employee (the price being the wage or
salary multiplied by probable years of service) hence bad
buys can be very expensive. For that reason some firms (and
some firms for particular jobs) use external expert
consultants for recruitment and selection.
It is one area where the interference of external factors is
minimal. Hence the HR department can use its discretion in
framing its selection policy and using various selection tools
for the best result.
The Recruitment and Selection process of HUL
The recruitment process of HUL Ltd starts from the requirement of
different departments as per to the organization chart. Then they tell
to the HR department. HR department takes the candidate from Data
Banks of Company, Poornata etc, then does the short-listing, then
does the scheduling for the interview. After this the selection and
negotiation process occurs. Then offer letter is been given to the
selected candidates. The employee then joins in the organization.
Then the company arranges the induction program for the employee.
After this the Recruitment process ends with this.
Performance Management
It is a structured method of formally and objectively evaluating
employee's performance with respect to their objectives. It addresses
the issue of an employee's development by providing them with
structured and in-depth analysis of strengths and areas of
improvement. It provides with input for annual increments, training
and development.
Performance Management system is essential to the success of any
organization because it influences the effort expended by employees,
which in turn, drives bottom line business results. Further more, the
performance Management system helps an organization identify,
recruit, motivate, and retain key employees.
Method employed
360° performance appraisal
BIBLIOGRAPHY
www.hul.co.in
www.colgate.in
www.colgatepalmolive.com
www.scribd.com
www.slideshare.in
COMPANY PHOTOGRAPH
COLGATE
PEPSODENT
PRODUCTS