Case Study - Colgate Disha PDF

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| QR MARKETING CASE dl As the leader, Colgate was faced the challange of expanding the markt which ‘woud utimately esut in increased busines foal players. To utan market ‘moro less saturated with most consumers in this sagment ead wing or COLGATE DISHA: THE EVOLUTION OF A SUSTAINABLE PPP MODEL IN THE BOP MARKET | gene reduts in on farm or the oer. the rural cent, however, thre 125 spe for growth, as over 30 par cet ofthe population of 800 milion tit sed trata meted of oral cae, Colgte's ral ccerage read ey ‘arg vilages which had @ population of more than 6,000 thraugh dec distribu. ton chanel, Colgate was unable to penetrate ary deeper into the rural market. ‘The competion was steady increasing, puting fuer pressure on Colgate. Powers MNCS such as HUL had aso entered the market with Pepodent, ne smal regional vers ke Anchor, Nara, and Amar wore casting on “fous setinents wih vegetaran toothpaste, ncteasnaly senmentrg the ‘pat Tres and i the dep inte the Fgh agaist spurs products had ‘ready made aeay dent in Cogtes mare share ‘he big challenge was reaching out 0 te medium and stall vitages fol seul ss than 5,000) which accounted for 6 per cent of he ural pou faton of nda. These medium and smaller ilages woud have ite economic evelopment, wt smal proportion boing afuent and the mej a the bo: tom ofthe pyramid. nis Stratum, poole woud tycay have to travel out cf he vlage forthe purctase of many necessites; periodcay visting haat, hops at nary larger vilages or the bick town. Low per capita usage in these ‘mei and smal ilages fosters an envionment where these is inadequate scale for return on investment and which makes requ access untenable for citing dect stitution channels Colgate was looking fora soln to these issues. Deliberation [MART propared a repo in an attempt to gain a holistic understanding ofthe ‘zl care industry, the levels of market penevation (summarized in Table 1), and oer is5u88 dogging the industry as @ whole. Figure 1 shows the market ‘penetration ofthe prominent brands. MART also analysed the exiting distibu tin sructure, 2s depicted in Fig. 2. found that he exstng struct alowed rect aocess nly othe inhabitants of vilage wih a polation of more than 5,000. Table 1 Oral Care Penetration Figures in nia Particulars India Zones (Urban Rural North Soh East West Tottpaste © 486 749 «376 «478 G18 400 44.4 Teottpower 347 908 385 371 37 30 36.41 an) ‘The Market Penetration of Colgate én per cant), ‘The EitngDistibuten Structre of Colgate Buying Behaviour ‘The BoP population, which accounts fora substantial propartion ofthe rural marke, dope unique buying behaviour Ther main interest isin vatue-o- ‘money offerings. They ago shop mote requenty than ther urban counterparts, but fewer its on each occasion. A there are lite shops in vilages of is ‘Population stratum, the BoP segment usualy conducts most of is purchases from thereat haat. From the overview ofthe oral cre sector and understanding onthe BoP seg- ‘ment buying behavou, it became evident tat the soliton needed 1 foo on three main facto: + Distibuton ertancement o expand beyond cutent coverage levels to ac- cess the BoP segment + Provision of song comsmunicaton on identiicaion of fakes and use ofthe genuine article : + Enurng sustainability and scl ofthe developed mode! Issues and Strategic Perspective on a BoP Access Model ‘tor much delberation within the MART team, several issues emerged fo be ‘dressed whe conceptuaing 3 mode: ' As he trator retaer-

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