Marketing Practices of Toothpaste Sector in India

Presented by: Shoeb Momin Viraj More Mayur More Mukesh Madhu Vinay Shirsath Roll No. 12 Roll No. 07 Roll No. 17 Roll No. 02 Roll No. 22

Some Facts !
Many people in India still clean their teeth with traditional products like neem twigs, salt, ash, tobacco or other herbal ingredients. Average all India per capita consumption of toothpaste is a only 82gms The dentist to population ratio is a critically low 1:35000 in the country. This results in low oral hygiene consciousness and widespread dental diseases Less than 15% of the Indian toothpaste users brush twice a day. Colgate and Hindustan Lever together account for over 85% of the toothpaste market. Red and Black toothpowder still accounts for 35% of the toothpowder market. In toothpowders, Colgate and Dabur are the leading players sharing between them 75% of the market. Penetration of toothpowder in the urban areas has been declining, as more and more consumers switch from powders to paste. Brand loyalty is quite high for toothpastes, but is extremely low for toothbrushes

Market Share - Trend

CP HUL Dabur 49%

48%

46% 33%

47%

48%

32%

32%

30%

30%

7% 2% FY04 FY05 FY06

7%

8%

9%

FY07

FY08

Players & Market Shares - 2009

20%
Vardhaman Chemicals Amar Galaxo SmithKline AquaFresh Anchor

28%

52%

Colgate Leader in Oral care, India 1. Entry Level toothpaste Segment 2. Rural consumers are directly upgrading to toothpaste. 3. Lower Input cost and excise benefits 4. Strategic M&As Procter and Gamble is planning to launch its Crest toothpaste brand. Its strategy to take a chunk of the market and whether it sparks off a price war will worry investors more in the near term.

Segmentation Chart

FAMILY
KIDS

YOUTH
HERBAL SENSITIVE TEETH POWDER MOUTH WASH

Colgate Palmolive A Glance

1. From a modest start in 1937, when hand-carts were used to distribute Colgate Dental Cream, Colgate- Palmolive India today has one of the widest distribution networks in India - that spans 2.7 million retail outlets across the country, of which the company services 8,00,000 outlets directly. Colgate was voted the Most Trusted Brand in 2010 in India by the Economic Times and the AG Nielsen ORG MARG survey. Colgate was rated the No. 1 brand across all categories in A&Ms annual survey of Indias Top Brands conducted by Taylor Nelson Sofres-MODE in 2001. Household name. One out of two consumers of toothpaste use Colgate Factors for success: 1. Strategic initiatives. 2. Creating demand in rural areas. 3. Nurturing and retaining talent. 4. Using IT to enhance business processes. 5. Supply chain simplification

2.

3.

4. 5.

Competition Comparison

1. Superior Quality IDA approved and present in the market since very long 2. Segmentation Lower and Medium Income group, Rural Market 3. Differentiation Advantage Price lower that HLL, Range of Product is high. Offers toothpaste in almost every segment, even Powder form to attract rural market. 4. Positioning in Rural Market Colgate is now synonymous to toothpaste in rural area. 5. Innovation Launch of Colgate Active Salt. Specially designed for rural and semi urban market.

1. Distribution Advantages High Reach and very efficient 2. Promotion First to Introduce Gel Toothpaste and remained market leader in it. 3. Power Brand Focus Weed out Close up Oxyfresh and Green and now focusing on the main product. 4. Advertisement Very high 5. Squeezing Supply Chain Cost Efficient CRS by implementing IT. Centralize Purchase and strategic tie ups for raw materials 6. Segmentation Focus on higher income group, Urban & Youth 7. Innovation - Introduction of Shade Card. This helped the user to indentify how yellow their teeth are and it also helped to track the improvement.

1. Superior Quality IDA approved and present in the market since very long 2. Segmentation Lower and Medium Income group, Rural Market 3. Differentiation Advantage Price lower that HLL, Range of Product is high. Offers toothpaste in almost every segment, even Powder form to attract rural market. 4. Positioning in Rural Market Colgate is now synonymous to toothpaste in rural area. 5. Innovation Launch of Colgate Active Salt. Specially designed for rural and semi urban market.

1. Leading consumer goods company in India with 2. 3 major strategic business units (SBU) Consumer Care Division (CCD), Consumer Health Division (CHD) and International Business Division (IBD) 3. Major focus in IB. Places likeNepal, Egypt, Bangladesh, Pakistan, Nigeria, UAE & USA 4. 17 ultra-modern manufacturing units spread around the globe 5. Products marketed in over 60 countries 6. Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8 million retail outlets all over India

1. Superior Quality IDA approved and present in the market since very long 2. Segmentation Lower and Medium Income group, Rural Market 3. Differentiation Advantage Price lower that HLL, Range of Product is high. Offers toothpaste in almost every segment, even Powder form to attract rural market. 4. Positioning in Rural Market Colgate is now synonymous to toothpaste in rural area. 5. Innovation Launch of Colgate Active Salt. Specially designed for rural and semi urban market.

Marketing Mix - Colgate

Product
Colgate toothpaste products can be divided into segments catering to the needs of the consumers. The following is the basic way of segmenting the toothpaste products: Colgate Dental Cream: It helps cleaning breath and guards teeth from tooth decay. This is for the general people and for family use. Colgate word has been marketed as a synonym for toothpaste. Colgate Total 12: This product of Colgate has decay preventing dentifrice, prevents gingivitis, reduce formation of plaque and tartar above gum line. This is especially helpful for protecting teeth enamel and all round protection of teeth. Focus of this product is upon the hygiene conscious consumers and patients who are suffering from gum problems. Colgate Sensitive: This product prevents nerve ends; provide effective relief from pain of sensitive teeth and gently whitens the gums. This product targets the hygiene conscious customers and also the patients who are suffering from serious teeth and gum problems.

Product contd.
Colgate Max Fresh: The gel properties of this product of Colgate gives freshness along with protection. This product specially targets the young generation who want to avoid bad breath and inculcate the word freshness.

Colgate Kids Toothpaste: This product helps to prevent tooth decay of the kids. This product is specially designed for the kids.

Colgate Fresh Energy Gel: This product of Colgate has the freshness which gives freshness and energy to the user and helps to avoid bad breath. This product targets the young generation who prefers freshness.

Product contd.
Colgate Herbal: This product is designed for the people who believe in ayurvedic products and avoid using strong chemicals. Colgate Cibaca Family: This product is designed as a complete family dental cream. The product targets all age groups and all types of consumers, basically, the rural and township areas with low per capita income as well as urban areas. Colgate Active Salt: The product is designed for individuals who trust natural element like salt as a tooth care ingredient.

PRICE
Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. PRODUCT Colgate Dental Cream Colgate 12 Colgate Sensitive Colgate Max Fresh Colgate Kids Toothpaste Colgate Fresh Energy Gel Colgate Herbal Colgate Cibaca Family Protection Colgate Active Salt PRICE 20 gramRs. 5/-, 40 gramRs. 10/-, 50 gramRs. 14/-, 100 gramRs. 30/- and 200 gramRs. 50/150 gramRs. 62/100 gramRs. 58/150 gramRs. 50/- (Both Blue and Green Flavours) 150 gramRs. 48/-

50 gramRs. 15/-, 100 gramRs. 32/- and 200 gramRs. 58/100 gramRs. 29/- and 200 gramRs. 54/-

50 gramRs. 10/-, 100 gramRs. 17/- and 200 gramRs. 27/100 gramRs. 29/- and 200 gramRs. 54/-

Due to high cost cutting and well plan strategy, CPIL is able to maintain low price even in recessionary period, whereas HUL had to increase price approx 20% on all range of products

PLACE
1. Colgate is sold over almost all the retail outlets of India viz., Kirana stores, supermarkets, medical shops, co-operative stores, etc. 2. It is well-distributed through the supply chain of company distributors to wholesalers to retailers to final consumers. All the products are available in the all-India market, including semi-urban and rural markets which are their primary focus areas. 3. Colgate is the 2nd most widely distributed product in the country. The company is tying up with initiatives like EChoupal and Disha to further strengthen its distribution network. 4. The small tubes of Colgate are also available in small road-side shops and from the vendors.

PROMOTION
1. Advertising of Colgate products is basically done through television commercials. Famous personalities like Saif Ali Khan, Lara Datta, Riya Sen, Virendar Sehwag, etc. had been associated with this brand in past for a quite a long time.

2.

Colgate normally used to give out small product samples at annual events like Oral Health month to remind target consumers, especially kids to take better care of their teeth after eating sweets. This method didnt give strong results as most consumers tend to forget the message, even if they have collected the samples.

3.

1.

2.

So, instead of giving away product samples, Ice cream and cotton candy were given out. The stick carrying the ice cream and cotton candy carries a hidden message. Once consumers are done the message printed on the tip of the stick shaped like a toothbrush reveals Dont forget with the Colgate logo. This simple message effectively reminded consumers to brush their teeth.

1. For over 40 years, Colgate-Palmolive has been committed to delivering oral health education to children in India. Today that commitment continues through Colgate's flagship Bright Smiles, Bright Futures program, which is a multi-tiered initiative to promote the importance of oral health through education and prevention.
2. The primary focus of the program is to reach children in schools through videos, storybooks, sing-along-songs, computer CD-ROM and interactive activities - both for educators to use in the classroom and for parents to use at home.

3. Today, this program reaches 10 million school children every year.

TARGET MARKETS
1. Colgate has the whole toothpaste market as its target market. Being one of the oldest varieties of toothpaste, the Colgate Dental Cream has been marketed as a synonym for toothpaste.
Colgate Total 12 claims to provide a 12-hour protection from germs. Hence, this variety of Colgate toothpaste is targeted at the educated, urban people who brush their teeth twice. Colgate Max Fresh, with its multiple flavors, targets the youth. It also associated brands like iPod through the means of gifts / prizes which further enforces the belief that Colgate Max Fresh is for the youth. Colgate Kids toothpaste is clearly, as even the name suggests, targeted at kids. The advertisements and packing of the toothpaste further suggests that it is meant specifically for the smaller kids.

2.

3.

4.

TARGET MARKETS Contd

5. Colgate Fresh Energy Gel is clearly aimed at the youth. Its sleek toothpaste cover and the picture of a young couple on it unambiguously emphasize this point.
Colgate Herbal targets the traditional and the naturalist market which is pretty apparent from the name as well as the tagline Strong teeth, healthy gums, naturally and the use of squirrel as the central character in its advertisements. Colgate Advanced Whitening specifically targets people with plague problems as the toothpaste claims to provide whiter teeth within 14 days. Colgate Active Salt toothpaste targets customers with orthodox thinking who believe that salt is good for teeth. Colgate Cibaca is a product for the economy segment. The target market is basically the rural and township areas with low per capita income as well as urban areas.

6.

7.

8.

9.

POSITIONING
1. Colgate Dental Cream positions itself as toothpaste that has the necessary calcium and minerals to provide decay protection, strong teeth, germ protection and fresher breath.

2. It also tries to position itself higher in terms of reliability of its claims by telling the consumers that its formula is a patented one and the toothpaste is the most recommended one by the dentists.
3. The tagline of is advertisements, Trusted by generations to make teeth stronger, clearly aims to position the Dental Cream as a toothpaste that has been used over generations and hence creating a kind of emotional attachment with the toothpaste. Product Colgate Total 12 Tagline Used most advanced toothpaste 12 hour germ protection even after eating and drinking by building a protective shield around the teeth. tagline A new dimension of freshness

Colgate Max Fresh

Product Colgate Kids Toothpaste

Tagline Used Makes fighting cavities fun. Also used cartoon characters like Tweety and Bugs Bunny to associate with the feeling of kids towards these cartoon characters.

Colgate Fresh Energy Gel

The emotional positioning of Colgate Fresh Energy Gel is implicit by the way of the photo of the couple on the toothpaste pack and in the advertisements. It stroked a chord with the young, and also the budding couples of the country. being herbal provide strong teeth and fresh breath.

Colgate Herbal Colgate Cibaca Family Protection

Colgate Active Salt

Kya aap ke toothpaste mein namak hai

Consumer Buying Behavior

Favorite Toothpaste
Vicco 3% Close-up 26% Colgate 47%
80.00% 70.00% 60.00% 50.00% 40.00%

Trusted Brand

67.65%

Pepsodent 24%

32.35%

Brushing Habits
Once 32% Twice 68%

30.00% 20.00% 10.00% 0.00%

HUL

Colgate Polmolive

Vicco 3% Pepsodent 15%

Colgate 26%

Best Advertisement

Close-up 56%

Factor Influencing Buying Process

Price Color Advertisement Scheme Availability

Others 27% Packing 10%

Taste 40%

Liking 23%

Attributes looked for:

Long lasting freshness 13% Other 10% Healthy teeth & gums 45%

Others: Whiteness Use of Natural herbs Good Foam

Tooth decay prevention 32%

40.00% 35.00% 30.00% 25.00% 20.00%

15.00%
10.00% 5.00% 0.00%

When my brand is not To try out new options available

Price rise of current brand

Influenced by others

Other reasons

Refrences
1. http://www.livemint.com/2010/02/03220249/Colgate-continues-to-be-a-blue.html 2. http://subscribers.capitalmarket.com/cmmagazine/capcorner.htm 3. http://www.oppapers.com/essays/Segmentation-Targeting-And-Positioning-OfToothpaste/200623 4. http://economictimes.indiatimes.com/news/news-by-industry/services/advertising/Dishumdishum-SRK-to-fight-for-Pepsodent/articleshow/5946606.cms 5. http://timesofindia.indiatimes.com/business/india-business/Turf-war-HUL-losing-share-intoothpaste-shampoo-market/articleshow/4849829.cms 6. http://allprojectreports.com/CONSUMER%20BUYING%20BEHAVIOUR%20TOWARDS%20TOO THPASTE%20BRANDS/TOOTHPASTE%20INDUSTRY%20-%20AN%20OVERVIEW.htm 7. http://www.accenture.com/Global/Research_and_Insights/Outlook/By_Alphabet/OutlookSt udy.htm

8. http://www.cosmeticsdesign.com/Financial/Colgate-Palmolive-invests-in-supply-chain-tocut-costs
9. www.wikipedia.com

Brush Twice a Day

And Use Colgate !!!