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Project on Toothpaste

Project on Toothpaste

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Published by Royal Projects

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Published by: Royal Projects on Sep 07, 2011
Copyright:Attribution Non-commercial

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CHAPTER - 1INTRODUCTION:
TOOTHPASTE INDUSTRY: AN OVERVIEW
The toothpaste history in India can be tracked back from 1975 with 1200tonnes of toothpaste produced by the toothpaste industry. Prior to the toothpastesOral Hygiene was the domain of local homemade powders and ayurvedh practitioners. With the entry of Colgate in Indian marketplace the awareness aboutOral care and the importance of oral care. In recent years the Industry has shownimpressive growth rate of 18.6% (this growth is calculated in terms of value growthin Rs.).The growth in the urban market has been largely by the Gel Segment. Presently,a large chunk of the Market is still held by Colgate. The major players in thetoothpaste Industry being Colgate Palmolive and Hindustan Lever Limited andseveral minor players like Balsara hygiene, Dabur etc.Presently Colgate Dental Cream holds 52% of market share. HLL’s Close uplies far behind with 23% of the existing market share. The third player in themarketplace in terms of market share is Colgate Gel with 10.5% of the marketshare. That leaves 14.5% market share for other Brands likeClose up, Close up G,Promise,Babool, Sensofoam, Forhans,Cibaca, Neem,Viccoetc. The toothpaste market is presently valued at Rs. 750 crores out of which the Gel segment hasalready bagged 1/3rd portion of it. The Gel segment presently stands at Rs. 248crores and is growing at a rate much faster than Cream. In India toothpaste usage ascompared to other countries is very low which signifies about the potential of themarket. In Urban India the usage of toothpaste per person per year is just 190gms.Where as it is 200gms of toothpaste per person per year in developing countries asIndonesia and Thailand. In developed countries as USA and other European
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countries the toothpaste usage is 375 gms per person year. In India the toothpastescompanies are going in for advertising on a heavy note, on an average thecompanies managing this FMCG category are spending 6.15% of their sales ondevelopment. Colgate Palmolive had shelled out 15% of their sales on ads in theyear 1994. Dabur had an ad expenditure of 5.07% for the year 1993. Whereas balsara Hygiene spend a huge 10.17% of their sales.
CLOSE UP TOOTH PASTE:
Young people. The target market being “Multi Brand Households” whereyoung does not use what their parents. This particular targeting was significantwhen Close Up was launched because Colgate positioning was a sort of Flip flop between Tooth decay and Bad Breath and Colgate was going for a Broad marketconstituting of all the age groups.Sought to be perceived by the customers was Fresh Breath. The physicalappearance by the users. The Bright Red Gel synerized well with the Fresh breathBenefit. The advertising account was handled by LINTAS which focused on FreshBreath that brought teenagers closer.By 1980 Close Up had 3% of the 16,000 tonnes toothpaste market. The production capacity was doubled through a deal with third party manufacturer andthe Brand was taken National over the next year and a half, the Premium slashed by 30%.Close Upcountered this move by sharpening product benefits, while urgingthe customers to do the HA test by blowing air on the palm, the message was thatClose Up feels a lot cooler which reiterated the basic benefit of a fresh breath.1987 was a “Probe into Problem” year for HALL as Close Up was much below expectations with only 4.5% of the 32,000 tonnes toothpaste market. Theyidentified two basic problems:
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(1) Appearance of Toothpastes detracts prospects from its serious buyers.(2) Commercials displayed too much of proximity between couples which was toomuch for a mother, who actually purchased the Toiletries.1998 Lever reworked 3 Ps in its Marketing mix in Tamil Nadu where people have a strong sense of Oral Hygiene and the area has a cost effective mediaReach. The three reworked Ps are as follows: 
(1) Product :
· Blue mint flavour introduced.· Tangerines of Read reduced. (For serious buyers.)· Soft Squeeze lamitubes for toothpastes introduced for the first time in thecountry.
(3) Distribution
· Took Brand to Sub Urban and Rural areas.· Posters and Mobile Vans arrived in areas where urban lifestyle was amatter of aspiration. This was a purposeful move as the company did not want theBrand to be saddled with a restrictive.In 1991, Close Up launched Zing Green and simultaneously Lever sponsored“Close up Sangeet Muquabala” targeted at the rural youth. In 1991 Close Up’smarket share increased to 16% of Rs 377 crores per year market. 1991 witnessed afew problems for Close Up Blue, which was faltering on repeat purchases ascustomers did not perceive much freshness value in it. In 1992, HLL launched
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