Nonfoods

SUPERMARKET B U S I N E S S

Armed to the teeth

Communication and market penetration hold the key to oral care growth.

By Sangita Ghosh

n India, the branded oral care market is showing a gradual movement towards huge potential for growth in two ways -- volume growth for the rural areas in terms of penetration and value growth in the urban areas in terms of product innovation and value addition. a key industry trend is the move towards products comprising herbs with natural vitamins and minerals.
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Going by market experience, penetration and per capita consumption of branded oral care products are still quite low in India in comparison to its huge population. But the picture is changing. Rising per capita incomes and increasing awareness about health and hygiene issues are driving demand in this category, with the usage of branded products rising. For the urban areas consumers are beginning to show an affinity for value-added products such as gels, mouthwashes, and teeth whiteners in addition to

conventional toothpastes, while in rural areas, consumers are switching from local and traditional products and even toothpowders to toothpastes. For a stretch of years the Government had also taken up initiatives like conducting dental health camps and educating people to promote oral care as a part of health and hygiene. Major brands and manufacturers have also leveraged multi-channel advertising campaigns to promote higher consumption of branded oral care products in the country.
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Practically all of rural India prefers cleaning their teeth with traditional products such as neem twigs, salt, ash, tobacco or other herbal ingredients, contributing to a low percapita consumption of branded oral care products. according to WhO, Indias overall awareness of oral hygiene is still very poor. The dentistto-population ratio is 1:35,000 in comparison to 1:7,500 as recommended by the WhO. But with burgeoning middle class and multipronged advertising campaigns, there is now a latent demand for the formal oral care products and this is set to rise exponentially in the coming years. Growth is also likely to emanate from consumers upgrading to matured, value-added and innovative products in this category. Of late, growth of modern trade has also propelled brand sales, especially in the urban markets. Birds eye view according to Technopak advisors Ltd., the oral care market in India is estimated to be close to Rs 4,000 crores of which the largest contributor is the toothpaste segment accounting for approximately 75 percent of the total market in India. The toothpaste market is estimated at Rs 2,866 crores and is expected to reach Rs 3,226 crores by 2012. The toothpowder market, valued at Rs 497 crores, on the other hand, is expected to drop to Rs 458 crores by 2012. The mouthwash market an infant product segment for now -- is valued at Rs 74 crores and is expected to reach Rs 89 crores by 2012.The toothbrush market is valued at Rs 539 crores. Breadth and depth Overall, the oral care sector is mainly represented by toothpaste. Other products include

mouthwashes, sprays, teeth whiteners and oral rinses. In India, there is also significant usage of toothpowders, especially in semi-urban and rural areas. In India, toothpowder was primarily targeted at people who used traditional products like salt, neem twigs and other herbal products. Brands like Colgate, Dabur, Babool, Vicco are the prominent players in the toothpowder market in India. Over the past decade it has become evident that growth opportunities really lie in the rising demand for toothpaste as the toothpowder is beginning to show a phase of decline, as more and more consumers are switching from powders to pastes. according to amit Burman, vice chairman, Dabur India Ltd, the toothpowder market is growing slowly and has been largely stagnant, whereas the market for toothpastes has been witnessing strong doubledigit growth, largely driven by a consumer shift in rural markets from toothpowders to toothpastes. Unlike in western countries, the market for new-age oral care products such as mouth freshening washes, dental flosses and teeth whitening products are at a nascent stage in India. The limited use of these products is also for now restricted to urban areas only. The market for specialised cleaning products and mouthwashes has remained a slow grower, with a bulk of the market still controlled by regular value-added toothpastes, says Burman. One reason for the sluggish growth could be the fact that mouthwash in India is perceived more as a product for therapeutic rather than daily and cosmetic use. Listerine dominates the OTC mouthwash category, while Betadine, Clohex and hexidine are the major brands among the medically prescribed products. Demand in this category is significantly propelled by medical practitioners, who prescribe

In India, the mouthwash is perceived more as a product for therapeutic rather than daily and cosmetic use.

therapeutic mouthwashes as a cure for gingivitis. In western countries, this product is regularly used as a part of morning hygiene and after meals. So for marketers in India, the challenge lies in changing consumer perceptions, in positioning mouthwashes as preventive rather than therapeutic products. Chewing gum, once considered a confectionery item for kids, has also come of age in a new avatar as an oral health aid for adults. Brands like Wrigleys Orbit sugar free gums and happydent White from Perfetti Van Melle India are leading the category of chewable oral care products. Says Mayank Pandey, brand manager of Parfetti Van Melle India: happydent contains baking soda that maintains the natural whiteness of the teeth, gives freshness and prevents tooth decay. It is meant for an alternative to teeth brushing in the West, though this habit is yet to take off in India. Major players in the oral care market are Colgate Palmolive India Pvt. Ltd. (CPIL), hindustan Unilever Ltd. (hUL) and Dabur India Ltd. Brand loyalty is quite high for toothpastes where CPIL and hUL

together account for over two-thirds of the branded toothpaste market. In toothpowders, CPIL, which manufactures white toothpowder, and Dabur India Ltd. which manufactures red toothpowder, are the leading players, sharing three-fourths of the branded toothpowder segment. In rural areas, red and black toothpowders continue to be very popular, with the market being led by local manufacturers. among smaller, but fast growing companies in the oral care segment are ajanta India Ltd., Vicco Group of Companies, The himalaya Drug Company, anchor health & Beauty Pvt. Ltd. and henkel India Ltd. In the mouthwash segment the major brands are Listerine Johnson & Johnson Ltd., aMPM from Elder health Care Ltd. and Colgate Sensitive from CPIL. Sinking their teeth in The oral care market in India is divided into three main segments -- economy, popular or regular and premium. The brands from CPIL, hUL, Dabur India Ltd., are more popular in metros and major cities, while smaller and regional brands such as anchor, Colgate-Cibaca and ajanta have a stronghold in the smaller cities. Hindustan Unilever Ltd.: The flagship brand Pepsodent, launched in 1993, was one of its initial brands of toothpaste in India. The brand now houses several sub-brands: Pepsodent Center Fresh, Pepsodent Complete, Pepsodent 2 in 1,
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Colgate has long been a household name, and holds a major share of the oral care market in India.
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Pepsodent Decay Protection, Pepsodent Gum Care, Pepsodent Germicheck and Pepsodent Whitening. For kids, Pepsodent Barbie, Pepsodent Superman and Pepsodent Tom and Jerry are the popular brands. hULs other oral care brand Close Up is the original youth brand of India, claims the company. Close Up was also the first gel toothpaste variant to be launched in India by hUL. The Close Up brand umbrella includes Close Up Lemon Mint gel, Close Up Menthol Chill, Close Up Red, Close Up Luscious Lychee, Close Up Milk Calcium and Close Up Tangerina Burst toothaste. Colgate-Palmolive India Limited: Colgate-Palmolive India Ltd. has become a household name over time with the Colgate brand virtually being synonymous with dental grooming for generations of Indians. The companys oral care portfolio currently includes toothpastes, toothpowders and mouthwashes under the Colgate brand and a specialised range of dental therapies under the banner of Colgate Oral Pharmaceuticals as well. For the urban households the company has positioned gels, tooth whitening toothpastes, mouthwashes and its herbal brands under a premium price range, while long standing products such as Colgate dental cream, Cibaca and Colgate toothpowder are targeted at

rural and the urban lower income consumers. Under white toothpaste, the subbrands are Colgate Dental Cream, Colgate active Salt and Colgate Total 12; Colgate Max Fresh and Colgate Fresh Energy Gel in gel form; Colgate herbal with natural ingredients; Colgate Cibaca for the lower-priced segment; and Colgate advanced Whitening, Colgate Max Citrus Blast, Colgate Max Peppermint Blue, Colgate Max Spicy Red and Colgate Sensitive as the latest variants. Colgate Toothpowder is the white toothpowder targeted at semi-urban and rural consumers and is also marketed in sachets. For kids the gel toothpaste comes in two variants with fruity bubble gum flavours -- Tweety in bright pink and Bugs Bunny in bright blue. The mouthwash comes in two sub-brands -- Colgate Sensitive as an OTC product and Colgate PerioGard for gingivitis (sold on prescription). Dabur India Ltd.: Dabur India Ltd. occupies around 9.5 percent of the total oral care market in value terms and 12.5 percent in volume terms. In white toothpaste it offers the Promise brand. Under herbal oral care, it offers Dabur Red, Dabur Red Gel, Babool, Babool Neem and Meswak in toothpaste, and Babool and Dabur Lal Dantmanjan in toothpowder. Babool is targetted at the economy segment, Dabur Red focuses on the popular category and Meswak is positioned in the premium segment. With an overall turnover of Rs 100 crores, Babool is currently the biggest brand in the Dabur oral care portfolio. Ajanta India Ltd.: The toothpaste brands are ajanta Dento Strong and ajanta Dentocare, both targetted at economy consumers. Vicco Group of Companies: One of the pioneers of herbal oral care products, Viccos brands include

Oral care in India has been greatly driven by innovation, retail availability, packaging and promotion.

Vicco Vajradanti Paste, Vicco Vajradanti Sugar Free paste and Vicco Vajradanti powder. The Himalaya Drug Company: The company offers himalaya Dental Cream toothpaste under the himalaya herbal brands umbrella. Henkel India Limited: The company sells a herbal toothpaste brand called Neem active. Johnson & Johnson Ltd. (Listerine): The company markets two variants in mouthwash, Listerine and Coolmint Listerine. Elder Health Care Ltd.(AMPM): The mouthwash brand was launched in 2002. The variants are aMPM Plus, for regular use and aMPM Special, for smokers and tobacco chewers. Wrigley India Private Ltd. (Orbit): Wrigleys Orbit sugar free chewing gum is endorsed with the benefits of providing oral health, teeth whitening and curing gum diseases. It has also been awarded the Indian Dental association (IDa) seal of acceptance as an oral care product. Perfetti Van Melle India (Happydent White): happydent White is a coated functional gum available in Peppermint and Fruit flavours with special ayurvedic recipe. The brands positioning is that chewing happydent White can give you a sparkling smile. happydent White offers two sugar free variants -- Protex happydent and happydent White Xylit. Marketing strategy

Babool toothpowder is a valuable asset in Daburs oral care kitty.

The new-age sugar free chewing gum helps prevent tooth decay.

In recent years, oral care in India has been greatly driven by product

innovation, widening of retail availability, packaging and sustained brand promotions. For a new brand to grow and gain market share, strong brand promotion in a specific category has been the chosen marketing strategy. For instance, if a product is made especially for night brushing, the marketing strategy would typically build a story around this usage. Over the years, such focussed advertising (sometimes using popular brand ambassadors and television programme sponsorships) have helped many brands to connect swiftly with the target audience. For instance, hUL tried to increase its share in the Indian oral care market through the launch of Pepsodent, and campaigning with a message that communicated to kids and their parents the importance of protection from germs through the night. as a value addition, the next stage of the campaign was focused on Germ Indicator, which was included in every Pepsodent pack allowing consumers to see the efficacy in fighting germs for themselves. Following that, Pepsodent offered dental insurance to all its consumers to demonstrate the confidence that the company had in the technical superiority of the product. The relaunch of the campaign widened the context towards the adverse effects of sweet and sticky food and leveraged the fact that children do not rinse their mouths every time they eat, thereby reinforcing the power of Pepsodent in fighting germs for the entire day.
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Close Up, on the other hand, was positioned as a youth oral care brand from the very beginning. In 2004, the brand was re-launched with a publicity blitz that communicated virtues of a Vitamin Fluoride system present in the product -- a powerful mix of vitamins, fluoride, mouthwash and micro-whiteners, for fresher breath and stronger, whiter teeth. Clearly, hUL derived critical mass growth from having two brands targetting two different sections of consumers Pepsodent as a family brand and Close Up as a youth product. When Colgate-Palmolive (India) Limited (CPIL) launched its advanced Whitening toothpaste in 2005, it roped in Sonali Kulkarni of Dil Chahta hai fame, looking at further strengthening the expansion of its whitening variant amongst the youth. The brand Colgate herbal White was also launched communicating the message of pearly white teeth with an attractive packaging in green, white, red and blue. The advertising campaigns through television commercials used the beaver gillu as a mascot of the product. Dabur India Ltd. launched Dabur Red toothpaste with the brand association of Star Plus channel by sponsoring one of its programmes, STaR Parivaar awards

for two consecutive years in 2003 and 2004. anchor White, the toothpaste brand from anchor health and Beautycare Pvt. Ltd., has been extensively promoted as a family product with Bollywood actor Kajol along with her daughter targetting the price-sensitive middle-class segment through its convenient packs and price points. While toothpaste advertising has by and large used the traditional images and characteristics of family values, the use of humour and imagination has also been highly effective in generating brand recall for newage oral care products. Perfetti Van Melles very popular happydent White Palace advertisement is a case in point. Conceptualised by Prasoon Joshi and McCann Erickson, the ad communicates dental hygiene as a fun activity by making it interesting rather than therapeutic. Given it innovative departure from the norm, the commercial has clearly broken through the clutter by positioning happydent as not only a childrens confectionery but a functional product that gives healthy and white teeth. Wrigley India Pvt Ltds sugar free chewing gum Orbit too has used humour to great effect in its commercials. In some adverts, the gum was shown working even on a cow with a tagline Yellow yellow dirty fellow,

Herbal toothpastes are a welcome innovation for ayurveda-conscious Indians.

Innovative marketing strategies and brand promotion are driving growth in the category of gum protection.
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white white Orbit white becoming very popular, thanks to its connection with consumers of all sensibilities and ages. But the story is not all urban. Rural India may well be a sleeping giant; already there are signs of rural Indians shifting from traditional dental care products to brands -especially the herbal variants -- at popular price points. Burman from Dabur explains that growth in hitherto untapped regions will be greatly driven by affordability. We have observed the growing demand for economically priced herbal toothpastes in rural markets. Therefore, Babool is well placed to benefit from this growing demand, and has been the fastest growing toothpaste brand for three years in running. an appropriate product with an effective communication strategy can drive the growth further in the rural markets, he adds. as of now, manufacturers and marketers efforts have focused on enhancing penetration -- bringing new users into the toothpaste segment by strengthening their presence in the economy segment. Both CPIL and hUL have concentrated on building their rural distribution networks by rolling out smaller units of toothpastes at affordable prices, and have also launched nationwide community dental health programmes and informative commercials on dental hygiene in association with dental associations. The companies have also been using channels such as e-choupals and Disha to further reach the rural population. Dabur has also been participating in rural community practices, besides organising special oral care clinics with school children to propagate the advantages of brushing which have helped them drive deeper into the market.

Brushing out the challenges according to market estimates, only about half of Indias population uses toothpastes, one third uses toothpowder while the rest, mainly concentrated in the rural areas, are yet to adopt formal oral care. according to Puneet Khanna from Technopak Advisors, growth opportunities for the branded market are immense since the penetration level is low. The key challenge for growth in the segment lies in raising the awareness levels for dental hygiene, he observes. The habit of night brushing can further drive growth of the branded oral care. according to the observation by brands, less than 15 percent of the Indian toothpaste users brush twice a day. The facts suggest that night brushing as a habit is not a regimen among Indians; just developing this would significantly accelerate sales of branded oral care products. In the rural areas, just reaching out to the huge population is a great opportunity, while the urban market presents room for innovation, value addition and a wide range of product segmentation in the category. Besides the conventional toothpaste, other forms of multi-benefit products such as desensitising toothpaste, tartar control toothpaste, gum protection and whitening products in the form of toothpaste, gel, mouthwash or even in chewing form offer huge potential. We are planning to launch more sugar free variants for happydent in India. We have seen the opportunity for the convenient forms of oral care products in the country, confirms Pandey from Perfetti Van Melle. as per a National Council for applied Economic Research (NCaER) study, there are as many lower middle income, middle income and
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above households in the rural areas as in the urban areas, and the middle and highest income sections are expected to grow at large in rural India, thus augmenting the potential for further penetration. With the rising consumerism in rural India and the growing awareness levels on personal hygiene, a large number of non-users are shifting to formal oral care, which is further fuelling demand, observes Burman. The strategy is to focus on designing specific pack sizes and packaging such as sachets or positioning low priced brands -- for the rural consumer. The efficiency and cost effectiveness of such innovations can also be enhanced with a strong local media communication. according to the experts, product innovations and introduction of new variants look set to continue at a steady pace. In sync with this trend, Dabur has re-launched Meswak and is planning to launch a new variant of Babool in a gel form. The Dabur Red variant is also being revamped with new packaging and brand promotions. With the re-launches and new variants coming through, we should certainly see strong doubledigit growth in the next few months

The success of recent varieties shows the increasing popularity of mouthwashes among Indians.

and this strategy will continue at a steady pace, Burman says. The growth of modern retail has added to the visibility and the availability of brands to the consumers, and this is also set to grow further. The advantage is that organised retailing formats carry a wide range of merchandise for the total oral care segment to the consumers, analyses Technopaks Khanna. according to Viney Singh, MD, Max hypermarkets, modern trade has actually helped in trials of new categories and make the consumers shop-up. But the brand has to be visible, relevant and live on the retailers shelves in terms of promotions and awareness activities, he comments. Categorisation and display of products on the retail shelves help promoting the brands to its target consumers. Strategic SKU management in different segments of the category works as promotion of new products and brands for oral care, voices Samar Singh Sheikhawat, vice president, marketing, Spencers Retail Ltd. agreeing with this view, Saket Gore, business head, Consumer Products Division, The himalaya Drug Company states: Within the oral care segment this has helped create new categories, fuel product innovation and helped specialised brands with niche offerings. Retailers also have the provision of using leaflets or leveraging the counter sales staff to motivate and influence consumers to change or create new habits for oral care, Gore suggests. This gameplan is also motivating some of the major brands. Recently, CPIL extended distribution of Colgate Sensitive toothpaste for patients with dentine hypersensitivity to OTC retailing at leading retail outlets across India, in addition to medical stores. For the rural areas, however, promotions will necessarily have to be tailored. Sheikhawat believes that for the rural consumers, manufacturers should, to begin with, promote the usage of formal oral care products. The strategy can then be carried forward by organised retailers, he says, referring to the Spencers good to grow oral health care camps organised in rural schools to promote oral hygiene amongst children. n

On the retail shelves:

Brands Toothpaste Colgate Dental Cream Colgate Cibaca Colgate Total 12 Colgate Sensitive Colgate active Salt Colgate advanced Whitening Colgate herbal Colgate Fresh Energy Gel Colgate Max Colgate Kids Pink, Blue Promise Dabur Red Meswak Babool, Babool Neem Neem active Neem active Whitening Pepsodent Center Fresh Pepsodent 2 In 1 Pepsodent Complete Pepsodent G Pepsodent Decay Protection Pepsodent Sensitive Pepsodent Whitening Pepsodent Superman Pepsodent Barbie Pepsodent Tom & Jerry Close Up Lemon Mint, Red Close Up Tingly Red Close Up Milk Calcium Close Up Menthol Chill Close Up Luscious Lychee Close Up Tangerina Burst himalaya Dental Cream anchor White Toothpowder Colgate Mouthwash aMPM Plus aMPM Special Listerine Regular Listerine Coolmint Colgate Sensitive Mouth Fresehner happydent White happydent Protex & happydent White Xylit Wrigleys Orbit SKU Range 100, 150, 200 & 300 gm 200 gm 75 & 150 gm 50 & 100 gm 100 & 200 gm 75 & 150 gm 100 & 200 gm 80-150 & 200 gm 80 & 150 gm 40 gm (90+90) gm 100 & 200 gm 100 & 200 gm (190 + 190) gm, 185 gm 100 & 200 gm 150 gm 150 gm 80 & 150 gm 80, 175 & 255 gm 150 gm 40, 80 & 175 gm 100 gm 80, 175 gm 80 gm 80 gm 80 gm 150 gm 80 gm 80 & 150 gm 150 gm 150 gm 150 gm 40, 100 & 200 gm 200 gm 200 gm 120 & 250 ml 120 & 250 ml 85, 250 & 400 ml 85 & 250 ml 100 ml MRP (In Rs) 28, 42, 54 & 82 27 33 & 62 35 & 58 29 & 54 26 & 50 30 & 55 30, 50 & 63 29 & 50 24, 22 28 29 & 54 30 & 56 46, 35 28 & 49 40 52 30 & 50 25, 53 & 69 60 12, 23 & 46 55 30 & 50 45 45 45 50, 53 32 32 & 57 53 58 58 15, 40 & 70 35 38 51 & 79 53 & 82 40, 85 & 120 30 & 85 40

Bipack (one pillow pouch 1 & 10 with 2 dragees), Fliptop Blister Pack, Pocket 5 & 30 Bottle Pack Sachet, 6 Pellet Pack, 1, 5 & 30 Bottle
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