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INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

Submitted to
Prof (Dr.) ZILLUR REHMAN
Department of Management Studies
Indian Institute of Technology Roorkee
INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

RAHUL KUMAR BHAGYESH DHATRAK PRTAHAMESH PITTULE


INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

DEVESH SINGH HIMANSHU AGRAWAL


Colgate

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Introduction to Colgate

• Colgate is an umbrella brand principally used to purchase


oral hygiene products such as toothpastes, toothbrushes,
mouthwashes and dental floss.
• Founded: New York City, USA (1806) by William Colgate.
• Headquarters:- 300 Park Avenue, New York, NY, United
States
• Chairman & CEO:- Ian M. Cook
• Operating Revenue:- US$15.454 billion (2017)

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Mission Statement
As a Company that strives to be the best truly global consumer
products company, we are committed to doing business with
integrity and respect for all people and for the world around us.

Vision Statement
As we plan our strategies to sustain growth for the years to
come, our core values of Caring, Global Teamwork
and Continuous Improvement will continue to drive our future
initiatives.

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Categories

COLGATE-
PALMOLIVE

PERSONAL HOUSEHOLD
ORAL CARE
CARE CARE

TOOTHPASTE,TOOTHB BODYWASH,HAND
RUSH,TOOTHPOWDE
R,WITHENING
WASH,SKINCARE,H SURFACE
PRODUCT,MOUTHWA AIRCARE,MEN’S CARE
SH CARE

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Colgate - Oral Care

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Oral care in India

Toothpaste
is the
biggest
category
with 80%
share
Educate consumers
about good dental
hygiene via TV Market
advertisements as share of
well as urging them 53.4% in
to brush twice a day India
to increase
awareness
Increasing awareness
Oral Care of oral care products,
is expected increasing penetration
to reach in rural market and
USD 40.9 expanding product
billion by portfolio of leading
2025 companies
globally

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Competitors

Pepsodent Close up Oral-B Patanjali Dabur Sensodyne

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Toothpaste Makers’ Volume Market Share
70

60

50

40

30

20

10

0
2018 2017 2016 2015
Colgate HUL Dabur Patanjali

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Product Life Cycle
Introduction Growth Maturity Decline
Product Sales

Time
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SWOT Analysis
STRENGTHS WEAKNESS
Geographically diversified • Product expansion is
industry. restricted.
• Strong brand image. • Saturated market.
• Strong market share. • Market share is lower than
• Appealing advertisements. its competitors.
• Huge sales growth.
• Skilled workforce.
• Strong promotional
strategies.
OPPORTUNITIES THREATS
• International Market • Increase in commodity
Expansion. prices.
• Emerging markets may • Fierce competition.
attract business • New entrants in the market
• Differentiation strategy is can be a threat to Colgate.
required.

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BCG Matrix of Colgate
Relative Market Share
Market Growth Rate

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SEGMENTATION
Colgate uses the following factors to segment its market. These
factors include:
Demographic segmentation
• Demographic segmentation is the splitting up of the market to
smaller portions or groups according to age, income, gender,
occupation, education, religion and social class.
• Colgate has a variety of products which they do their possible best
to segment their market on both the adult age group and for the
kids. For adults they have a wide range of products that
consumers can purchase depending on desires.
• As a matter of fact they sell whitening toothpastes, as well as
toothpaste for those who have sensitive teeth, and toothpaste for
people with gum sensitivity.

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SEGMENTATION
Psychographic and Behavioral Segmentation
• Colgate uses this method of segmentation to segment their market
according to their customer’s life style, values, or personality.
• Therefore COLGATE markets its product to different people based
on their oral health care needs.
• For customers who want whiter teeth, they sell whitening
toothpaste and toothbrushes.
• For the customers teeth sensitivity, they sell the Sensitive Pro-
Relief toothpaste and toothbrushes which are made to decrease
tooth sensitivity.
• For people who are not always at the same place such as
travelers and office workers they created Wisp toothbrush, which
contains mini toothbrushes, which have toothpaste already on
them which can be used at any moment and at any time

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.

TARGETING
Basic target Market of Colgate:
• Urban youth and urban rich class.
• Rich and consuming customers of rural India.

Pro-relief target:
• Being a product that caters to a very specific need
. pro-relief targets everyone between 20-40 age group
who suffer from sensitivity problem.
• According to several reports 53% of the people
worldwide suffer from sensitivity related problems.
Suddenly the products dosent sound too niche,
considering 1 in every two is your target audience.

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TARGETING Contd.

• Sensitivity problems do not come until the age of 18 so


children and teenagers and not covered but all age groups
above 18 are targeted.
• The target audience for Colgate is derived from
Demographic, Psychographic and Benefit segmentation.

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POSITIONING
• Colgate is positioned as the brand itself as of a high quality
product with a premium price among its competitors.
• Colgate's long-cherished positioning statement of a germ
and cavity fighter culminating in the Colgate "ring of
confidence.
• Colgate found that they were losing the strong brand loyalty
that it traditionally enjoyed with nearly 50 per cent market
share.
Therefore, they hit out with a counter claim that Colgate
fights germs two-and-a-half times longer to dilute the positive
perception that Pepsodent was building so assiduously with
the consumers.

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POSITIONING
• They also introduced Colgate MaxFresh which was positioned
as to fight bad breathe and give freshness all day long.
• Colgate Sensitive Pro-Relief is positioned as the tooth- paste
that has the best effectiveness in solving tooth sensitivity as
instantly compared with other toothpastes. This positioning is
well reflected in their advertisements and product packaging.
• Besides its good attribute, Colgate positioned itself as
toothpaste that offers extra Benefits to the customers. Colgate
is the only toothpaste that uses the new technology known as
pro-argin technology, which contains ingredients, that giving
better protection on oral health. Moreover, pro-argin
technology also gives a long-term benefit by removing the
problem from its root

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POSITIONING

• Colgate informs the customers about the benefit offered by


putting the words “new pro argin technology” in the
advertisements. Colgate's’ positioning however is observed
to be very close to Sensodyne, as based on the perceptual
map. This is deduced from similar ads from Sensodyne that
reads “Daily Relief from the Pain of Sensitive Teeth”;
however, Colgate avoids direct confrontation with
Sensodyne’s ads by changing the words Daily Relief into
Instant Relief.

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BRAND EQUITY DRIVERS

1. The brand elements or identities

2. Marketing activities & Product

3. Other associations

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1. Brand elements or identities

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2. Marketing activities & Product

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Product
• Toothpaste
• Toothbrushes
• Mouthwashes
• Kids Products
• Toothpowder
• Specialty Products

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Toothpaste
• Colgate Strong Teeth
• Colgate Maxfresh
• Colgate Sensitive Original
• Colgate Total
• Colgate Visible White
• Colgate Sensitive Pro-relief

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Tooth Brush
• Colgate Sensitive
• Colgate Slim Soft
• Colgate 360°
• Colgate Extra Clean
• Colgate Zigzag
• Colgate Kids

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Mouthwashes
• Available in 7 variants in India–
I. Fresh Tea
II. Complete Care
III. Sensitive
IV. Fresh mint
V. Peppermint
VI. Active salt
VII. Visible white
• Remaining 2 variant which are not available in India –
I. Ice
II. Fruity Fresh

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Kids Products
• Colgate Barbie Toothpaste
• Colgate Spider Man Toothpaste

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Toothpowder & Speciality Products
• Colgate Toothpowder
• Colgate Pain Out

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Price
• Colgate follows a competitive pricing policy under its
marketing mix strategy. Colgate products are priced at similar
range or slightly higher range with respect to its competitors.
• Colgate charges premium price for its specialty products as it
is targeted at a niche category.
• Colgate Palmolive target all sections of society by providing
products at all price ranges.
• A higher price range is justified by an added ingredients that
provides extra benefits to consumers.
• The products are available in various SKUs so that it can
cater to a broader base. The pack sizes ranges from 50g to
500g.
• Colgate also bundles its toothpastes with toothbrushes to
make the offers look attractive to consumers.
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Place
• Widely available in
Urban areas from malls
to retailers as well as in
Rural areas in retail
shops.
• Placed along with
competitors Brands like
HUL,Dabur or along with
other oral products from
Colgate.
• Greater thrust on increasing product penetration to rural
areas
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PROMOTION
• Quick and easy method for a cleaner, fresher and healthier
mouth.
• Educate customers to use it twice a day after brush.
• Help remove 99.9% germs for 12 hours.
• Channels – TV, newspaper, Hoardings, social media Colgate
Palmolive promotes its products to its huge target audience
through various channels.
• Colgate also capitalizes internet marketing through
Facebook and YouTube advertisements.The brand Colgate
positions it products as the one that are recommended by
dentists.
• Colgate also advertises its products through various celebrity
endorsements.
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3.Other Associations
• People

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Other Associations
• Things (Events)

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Other Associations
• Other Brands

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Ansoff’s Model

Existing New
products products
Product Development

Existing Product
markets development

Market Development Diversification

New
markets

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Brand Knowledge

• Image: Brand Ambassadors (Virat Kohli, Ranveer Singh,


Priyanka Chopra)

• Feelings: Mother’s Trust Colgate Dental Cream Ad

• Thoughts: Strong teeth, Cavity protection

• Experiences: Oral Health Month

• Belief: India’s No. 1 Toothpaste recommended by Dentists

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BRAND MANTRA

Emotional Descriptive Functional


Modifier Modifier Modifier
Maintain Family Oral care for
performance Brand with longer hours
consistently, multidimensi
high onal benefits
reliability innovations

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Brand Failure

• Colgate may be one of the leading toothpaste


brands but consumers just couldn’t comprehend
buying Colgate “food”.
• Maybe Colgate thought that by eating a Colgate
meal, people would then brush afterwards with
Colgate toothpaste but it was a bad idea from
the start.
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POINTS OF PARITY AND POINTS OF DIFFERENCE
• Brand Mantra- ‘Deeper Clean than Brushing Alone’.
• Points of Parity -
– Colgate Plax,Scope&Oral-B- mouthwash & Oral hygiene
Industry
– Offers a instant relief from bad breath, instills Freshness,
provides a day worth of confidence & assures complete &
efficient cleanliness.
• Points of Differences -
– Characteristic tinge that Listerine leaves in mouth.
– Customized variants.
– USP to kill.

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Thanks

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