Post Graduate Programme in Management

Indian Institute of Management Indore

Term II: Marketing Management II

Group Assignment

Teeth Whitening Toothpaste by Colgate-Palmolive India

Group – 8

Group members Roll number

1) Vakul Singh : 2023PGP402

2) Ritush Rajnish : 2020IPM108
3) Mehak Sati : 2023PGP199
4) Abhishek Priyadarshi : 2023FPM01
5) Rohan Agarwal : 2023PGP443
6) Anushka : 2023PGP052
1. Explain, why CPIL’ s entered into above mentioned new category.
The global market for teeth whitening is expected to be worth $6.3 billion in 2021. It is expected to be
valued US$ 10.6 billion by 2030. Sales of teeth-whitening products climbed at a CAGR of 4.50% per year
from 2012 to 2021. People are turning to teeth-whitening products in greater numbers as periodontitis and
other dental disorders that discolour teeth become more common. This boosts the company's market share.
The global market for these products is growing as more people want to whiten their teeth in order to
improve their oral health and appearance. People are more likely to buy teeth-whitening products when they
learn about their benefits. CPIL sought to establish itself as a major player in this business by capitalising on
the growing demand for beauty oral care products in the Asia-Pacific region, particularly in developing
nations. The Indian teeth-whitening market is expected to grow at a 7.00% CAGR till 2032 [1].

2.1 Explain the product-mix and brand extension strategy in the above
mentioned CPIL’ s entry into beauty category.
CPIL has diversified its product offerings within the beauty-focused oral care segment [2].

➢ Colgate Visible White Toothpaste and Toothbrush:

• Positioned as a daily oral care solution with the added benefit of teeth whitening, which results in
teeth becoming one shade whiter within one week.
• Appeals to consumers seeking a comprehensive oral care regimen with aesthetic advantages.

➢ Professional Whitening Pen:

• Positioned as a teeth whitening solution of professional quality.
• Focused at consumers in search of a more concentrated and rigorous teeth whitening regimen.

➢ O2 Toothpaste:
• Positioned with an emphasis on oxygenation to promote teeth whitening and freshness, which gives
you whiter teeth in 3 days.
• Appeals to a sense of aesthetics among consumers who place a premium on fresh breath and oral
health.

2.2 Brand extension strategy

By capitalizing on its robust brand equity in the oral care sector to enter the new beauty/cosmetics oral
industry. Pre-existing consumer confidence in the brand contributes to its credibility establishment within
the beauty-oriented oral care market. As part of the brand extension strategy, premium attributes are
incorporated into oral hygiene products. CPIL's strategic objective is to correspond with consumer
inclinations toward products that provide advantages in health and attractiveness. 2013 marked CPIL's entry
into the beauty-oriented oral care market with Colgate Visible White. Since its inception, the product line
has flourished, now catering to various cosmetic sector requirements. Brand extension and continuous
product development demonstrate the brand's responsiveness to market demands and its ability to adapt.
Enhancements such as oxygenation and professional-grade whitening serve to underscore the product's
innovative and distinctive qualities. The reason for this is CPIL's well-established position in the oral care
industry, which has led to the maturation of its health-oriented product line.
3. Who are the competitors?

• HanneaTeeth Whitening Products Ultrasonic Tooth Care and Cleaner kit

• Perfora Teeth Whitening Pen
• PROTOUCH Teeth Whitening Duo
• UrbanBotanics Activated Charcoal Teeth Whitening Powder
• Pearl Magic Brite Complete Teeth Whitening Kit
• SkyUnion White LED Light Teeth Whitening, Dental White Teeth

4. Will the CPIL’ s entry into beauty category work in Indian market?

India has a rich cultural legacy, with a strong emphasis on attractiveness and aesthetics. There is an
increasing emphasis on personal hygiene and appearance, driven by an expanding middle class with
aspirations. The younger demographic, in particular, has a greater concern for beauty and personal care. The
rise of beauty trends in expanding metropolitan areas creates a significant market opportunity for beauty-
related products. Elevated living standards, as well as the influence of global fashion, are driving up demand
for novel cosmetics.

CPIL's premiumization strategy is consistent with rising disposable incomes and consumer demand for high-
quality products. CPIL can reach a large number of consumers, both in urban and rural areas, thanks to its
established distribution systems. In the competitive landscape of the cosmetic and dental care industries,
CPIL gets a competitive advantage through strong brand recognition.

Strategic advertisements are used to educate customers about the benefits of beauty-focused oral care based
on cultural norms. Improving the sustainability aspects of product lines effectively attracts environmentally
conscientious customers.

Given the changing demographics, cultural focus on aesthetics, and economic feasibility, CPIL's entry into
the Indian beauty business appears to be a winning move. Continuous adaptation to cultural nuances,
recognising consumer preferences, and creative marketing campaigns will be critical to guaranteeing long-
term prosperity.

5 . Research, elucidate, and critique on the following aspects of CPIL’ s

entry into beauty category, and suggest improvements:
a) STP Strategy
b) Product Strategy
c) Price Strategy
d) Distribution Strategy
e) Promotions Strategy

a) STP Strategy:

Ø Segmentation:

CPIL appears to employ a nuanced segmentation strategy, incorporating both demographic and
psychographic variables to define distinct market segments. This includes targeting professionals and
young adults who seek oral hygiene products with aesthetic benefits. The segmentation further extends
to oral care consumers placing a premium on aesthetic appeal. By tailoring their approach to these
specific consumer segments, CPIL effectively addresses the unique preferences of individuals who
prioritize both aesthetics and health in their oral care routines. The potential for even more refined
segmentation within the beauty-oriented oral care sector remains, allowing CPIL to uncover and cater to
specific requirements.

Ø Targeting:

In a strategic move, CPIL positions its oral care products as premium offerings, strategically appealing
to consumers who value innovation and excellence in their personal care products. The premium
positioning aligns well with the aspirational middle class in India, capturing their propensity to invest in
high-quality products. For further targeting within this premium sector, CPIL could explore alternative
strategies such as sub-branding or introducing product variants, catering to diverse consumer segments
with unique preferences.

Ø Positioning:

CPIL's positioning strategy extends beyond the realm of oral hygiene, as it positions itself as a lifestyle
brand emphasizing both aesthetics and health. This positioning reflects an astute understanding of the
contemporary consumer's desire for holistic wellness. While adopting a lifestyle brand positioning
offers inherent advantages, ensuring that consumers seamlessly associate CPIL with beauty-oriented
oral care requires a transparent communication strategy. Effectively positioning the brand entails
establishing CPIL as a frontrunner in the cosmetics sector, reinforcing its commitment to delivering
innovative and aesthetically pleasing oral care solutions.

b) Product Strategy:

CPIL has a bunch of different products for taking care of your teeth, and they're designed to make your
smile look good. They've got things like the Colgate Visible White toothbrush and toothpaste, O2
toothpaste, and a special pen for whitening your teeth. These products cover a lot of different
preferences people have when it comes to keeping their teeth healthy and looking nice. While having
lots of options is good, the beauty industry changes a lot, so it's important for CPIL to keep coming up
with new ideas to stay competitive. They regularly check how well each product is doing to see if there
are any problems or ways to make them better.

CPIL wants you to think of their beauty-focused dental products as top-notch, so they set their prices
higher to match. This fits with how people see fancy and high-quality things. This higher pricing is part
of CPIL's big plan to be a leader in the dental care industry. Even though it's good to charge more for
something special, it's super important for CPIL to explain why their products are worth the extra cost.

They also need to keep an eye on what people like in the market to stay competitive with their prices.
CPIL is all about bringing new features to their products, like the professional whitening pen. This pen
has the latest technology to make it work well. It's made for people who want their teeth to look as good
as if they went to a professional dentist. CPIL spends a lot of time and money on research and
development to stay ahead in making oral care better. They also make sure to tell people about the cool
tech in their products through advertising.

CPIL is adding more items to their Visible White line, thinking about how things look as well. They're
not just doing toothbrushes and toothpaste; they've got special things like the whitening pen. This way,
they're offering a whole package for people who care about making their oral care routine look good. It's
important for CPIL to keep the same message and quality in all these extra products to keep the brand
strong. They also keep an eye on the market for any new trends or changes.
One thing missing in the info is talk about being eco-friendly. People care a lot about being kind to the
environment nowadays. CPIL should think about ways to be more sustainable, like using eco-friendly
materials and being transparent about it. If they tell people about their efforts to be more eco-friendly, it
will make consumers trust them more and like the brand even more.

c) Pricing Strategy:

CPIL employs a strategy of setting higher prices for its oral care products that focus on beauty. For
example, the Visible White toothpaste is priced at Rs 190, the Teeth Whitening Pen costs Rs 1999, and
O2 toothpaste is Rs 250 for a 50g pack. This premium pricing is justified because of the perceived
quality and innovation associated with beauty-focused oral care. It indicates that the brand aims to be
positioned as a high-end participant in the market. However, it's essential to note that higher prices
might discourage consumers who are more budget-conscious. The main challenge lies in effectively
communicating the value that justifies the increased cost.
Value-based pricing or value-added pricing prices products based on their perceived value by the
customers. From the market prices it is seen that Coalgate teeth whitening products are 25-50 percent
higher priced than their competitors’ products in similar category. This can be justified based on the fact
that customers place higher value to products from Coalgate based on their trust and market share. To
increase market share, Coalgate may reduce the prices by 15-20 percent so that more customers are
willing to buy the products and Coalgate is still able to retain its premium image with respect to its
competitors.
The success of this premium pricing hinges on transparently communicating the distinctive features and
benefits of the products. Consumers need a comprehensive understanding of why the prices are higher.
If the communication lacks clarity, it might lead to consumer skepticism. To address this, implementing
a comprehensive marketing communication strategy is crucial, emphasizing the benefits and value
proposition of the products.

Product Competitors name Competitors Colgate’s Colgate’s

Type price product product
price(current)
1. Whitening Perfora Teeth 429/2ml Professional 1999/2.5 ml
Pen whitening Pen Whitening Pen

2. Whitening UrbanBotanics ₹119 /100 g Colgate ₹138.50 /100 g

Toothpaste Activated Charcoal Visible White
Teeth Whitening Toothpaste
Powder

3. Premium PROTOUCH Teeth ₹248 /100 ml O2 Toothpaste ₹384.00 /100 g

Toothpaste Whitening Duo

From above table, by using “Value-based pricing” we can understand that Colgate has set higher prices
than its competitor to a price point that they believe the consumer is willing to pay.
(Price Source: www.Amazon.in)

To boost sales and attract consumers, especially in the competitive cosmetics industry, CPIL can
explore strategies like bundling or offering discounts. Strategic promotions have the potential to
increase market share, and it's worth investigating opportunities for implementing these tactics during
specific promotional periods. This approach could make the products more appealing and accessible to a
broader audience, fostering increased consumer engagement.
d) Distribution Strategy:

CPIL leverages its robust distribution network to promote oral care products with a focus on asthetics.
By tapping into this established network, the company ensures that its products reach a diverse
consumer base, ensuring extensive market coverage. It acknowledges the potential for regional
differences in the effectiveness of distribution channels, emphasizing the need for continuous evaluation
and refinement of the distribution network.

Retail distribution is a pivotal element of CPIL's strategy, with products likely available in various retail
establishments, including specialty stores, pharmacies, and supermarkets. The physical presence in these
retail outlets allows consumers to easily access and purchase products, enhancing overall convenience.
CPIL consistently evaluates the performance of these retail channels, identifying strong and weak
outlets. Collaborations with high-traffic retailers are actively pursued to enhance visibility.

In expanding its market presence in the beauty-oriented oral care industry, CPIL likely employs e-
commerce platforms. Recognizing the streamlined and convenient nature of online shopping in today's
digital age, the company aims to guarantee a seamless and user-friendly e-commerce experience. Digital
marketing strategies are elevated to drive increased traffic to the e-commerce platform.

Efficiency in distribution is further maximized through strategic alliances with retailers, distributors, or
beauty-focused outlets. CPIL explores potential partnerships with beauty and wellness brands or
influential individuals to bolster its online presence. The effectiveness of existing collaborations is
rigorously evaluated, with considerations for expansion.

Adapting to localized demands in the diverse Indian market involves regional adjustments, considering
economic, demographic, and cultural factors. Distribution strategies are tailored to specific regions,
accommodating unique preferences. Product assortments are adjusted to align with regional inclinations.
Data analytics methodologies are incorporated to evaluate the effectiveness of various distribution
channels, allowing for informed decision-making. Allocation of resources and attention is directed
towards high-performing channels, leveraging insights for strategic enhancements.

d) Promotion Strategy
Possibly, the promotional strategy focuses on projecting an upscale image and highlighting the unique
benefits of oral care that cater to aesthetics. Maintain clear and consistent messaging across all
promotional channels and craft a compelling narrative that effectively communicates the brand's
commitment to unparalleled quality and innovative advancements.

Establishing a robust online brand presence and reaching technology enabled consumers heavily relies
on digital marketing. Enhance digital marketing initiatives, encompassing online advertising,
collaborations with influencers, and social media campaigns. Utilize data analytics to evaluate the
effectiveness of digital promotions and refine strategies accordingly.

Forming partnerships with beauty influencers and wellness authorities has the potential to enhance
brand credibility and broaden market penetration. Consider collaborating with influencers whose
followers and values align with the brand. Integrate influencer-driven marketing initiatives to generate
excitement and interest in oral care products with a focus on attractiveness.

Especially in diverse markets like India, traditional channels can still be effective in reaching a broad
audience. Evaluate the potential of traditional advertising channels by considering media consumption
patterns and target audience demographics. To achieve comprehensive outreach, maintain a balance
between traditional and digital channels.

Consumers can enhance their understanding of the distinctive qualities and benefits of CPIL's beauty-
 oriented products through educational initiatives. Develop content-driven campaigns, including
infographics, videos, and blog posts, to educate consumers about the scientific principles and
advantages associated with beauty-oriented oral care products. Emphasize the reciprocal benefits of oral
health and aesthetic attractiveness.

References:
1. https://www.futuremarketinsights.com/reports/teeth-whitening-market
2. https://www.colgate.com/en-in/products/teeth-whitening-products
3. https://www.linkedin.com/pulse/2023-2031-teeth-whitening-market-highly-productive-dp9mf/
4. https://www.mordorintelligence.com/industry-reports/teeth-whitening-market