olgate Palmolive Staying Ahead In Oral Care
Jan 18, 2016
Colgate Palmolive Staying Ahead In Oral Care
Agenda Industry OverviewThe Toothpaste marketSegments in the IndustryKey PlayersTop 5 BrandsProduct Life Cycle of ColgateFuture strategy on 4p`s basisSWOT Analysis for ColgatePromotional toolsAdvertisementConclusion
Industry Overview India is still a nascent country in dental hygiene, with the majority of the population still not having access to modern dental care but relying on substances like coal ash and neem sticks.
In India, per capita toothpaste consumption stood at 74g in 2013, which is amongst the lowest in the world, compared to 350g and 300g in Malaysia and Vietnam respectively.
Toothpaste enjoys a country wide penetration level of 50%. The penetration levels of dentifrice in the country have been on an upward trend over the last few years driven by strong improvements in toothpaste penetration.
All India Urban Rural
Penetration % 50% 75% 39%
* Source: NRS 2013
Toothpaste MarketPeriod Urban + Rural Urban Rural
Apr-Mar11 1897 1340 556
Apr-Mar12 1950 1386 565
Apr-Mar13 2009 1414 594
Toothpaste market in value (in Rs. crs.)
Long term growth drivers •Improving penetration
•Through better distribution and conversion from other modes of oral care
•Increased usage
•Improved per capita consumption through increased usage frequency
•Population growth
•An annual 1.5% increase in population will help broaden the user base for oral care.
Segments in Industry
The Regular segment: The Low price point segment:Volume ( 64,922 tons ) Volume ( 21,641 tons )Price range Price range:
50 gms Rs. 12.5-24 50 gms. Rs. 8-10
100 gms Rs. 25-30 100 gms Rs. 14-20
150 gms Rs. 35-45 150 gms Rs. 25
Prominent brands: Prominent brands:
• Colgate • Colgate Cibaca• Pepsodent • Babool• Close-up • Anchor• Meswak • Ajanta• Dabur Red
Source: B&K Report 2006– Colgate Palmolive India
Price-based segmentation of the toothpaste categoryOn the basis of price, the toothpaste market can be broken down into two distinct categories:
Segments in Industry contd..
Low Price Point Segment The Lower Price Point segment accounts for around 25% of total category volumes This segment offers good value for money and has seen its volume market share increase from 10.7% during 2000 to current levels. The entire category is characterized by intense competition in both the price segments.
Key Players The toothpaste segment is largely a two player industry, Colgate Palmolive & HLL accounting for 80% of the entire market
•Colgate Active Salt – Which capitalizes on the traditional use of salt for oral care.
•Colgate Advanced Whitening –Which contains microcrystal's that polish ones teeth, restores and maintains their whiteness.
•Colgate MaxFresh Gel – An innovative gel-based toothpaste with cooling crystals.
1. Colgate Dental Cream 7. Colgate Active Salt
2. Colgate Total 8. Colgate Fresh Energy Gel
3. Colgate Herbal 9. Colgate Max Fresh
4. Colgate Kids Toothpaste 10. Colgate Cibaca
6. Colgate Advanced Whitening
Current Brand portfolio: Toothpaste
Top 5 Brands
Colgate Dental Cream
Close-Up Active Gel
Pepsodent Complete 10
Colgate Cibaca Top
Colgate Fresh Energy Gel
•Anchor•Babool•Ajanta
Other Brands
Product Life Cycle
Time
Introduction Growth Maturity
Decline
Future Strategy of 4 p’s basis1. Product
•They try to position some innovative toothpaste with a brand name other than Colgate but under the umbrella of Colgate Palmolive.•Focusing toward rural rich and consuming class by endorsing the development of ‘Colgate Ayurvedic Toothpowder‘.•They would come up sachets of these tooth powder and position toward rural population who buy in smaller lots.
For Urban population, they would come up with the products suiting to young generation.
For Urban rich and consuming class, they would come up with the products on the basis of functional benefits.
Eg: 1.They launch different toothbrushes for different age groups.
2.They launch a special toothpaste and toothbrush for kids in the age group from 4-10 years.
2. Price
•Based on the competitor's price .• Charging higher premium which focused on consuming and lower income classes.•Pricing done on the basis of price points• Packaging would be customized on the basis of price points.
3. Promotion
•They positioning Colgate dental white crème and toothpowder towards rural rich segment. •For rural consuming class they endorsing Cibaca toothpaste.•Advertisement through T.V. media, Print media.•FM Radio for Urban population & MW and SW radio for Rural population.•Hoarding on National highways.
4. Place
•They would try to increase product penetration to rural population.•They would try to increase the wholesalers to smaller towns.•They would track the distribution path so that they are covering all the village areas around the towns.
Swot Analysis
Strong financial performance
Focus on innovation and new product launches
Colgate business planning initiative
Strength
Weaknesses
• Product research
• Highly leveraged
Opportunities
• Emerging markets growth
• Deploying advance technologies
• Growing Hispanic population in the US
Threats
Competitive landscape from other Private label growth
Increasing commodity prices
Falling consumer confidence
Promotional ToolsIncreasing circumference of toothpaste tube.
Free Dental Check-up in mobile vans
Free Dental Check-up by sending a SMSScholarship offers like Learn & earn offer
Advertisement
In 1940,the Colgate Company used Slogan was "It cleans your breath while it cleans your teeth " .
The 1960s onwards, the slogan was "The Colgate ring of confidence" .
In the late 1950's and early 1960's, Colgate stressed the fact their "Dental Cream" contained Gardol, a formula that helped protect teeth from cavities and tooth decay .
Conclusion
Thank You