Professional Documents
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Indian Oral Care Market
Indian Oral Care Market
Many people in India still clean their teeth with traditional products like
The Rs. 2,200-crore toothpaste market (the largest oral care segment), grew
a robust 10 per cent in value in 2000. But this wound down to 2.4 per cent
in 2001. In the first six months of 2002, the market for toothpastes in fact
shrank by around 5.7 per cent in value; in volumes terms it was much
higher at 11 per cent. The going was tough for the oral care industry .Little
wonder that teeth were bared between the market leader, Colgate Palmolive,
and the challenger, Hindustan Lever, as the marketing war between the two
FMCG giants for protecting market share got tough. As if that was not
enough, these players found new aggressive competition coming their way
from regional low priced competitors such as Anchor Healthcare &Ajanta
India, who priced their offerings at over 40% discount, giving market leaders
a run for their money. These low priced competitors accounted for more than
80 per cent of the growingdiscount segment. It looked as if the
multinational companies were helpless against challenger brands. But then
the big boys struck back, Colgate revitalized one of its existing brands,
Cibaca as Colgate-Cibaca. It was to act as the price flanker brand in the
portfolio. Ditto by HLL with Aim. At prices similar to the low priced challenger
brands it took the battle right into their turf. The market dynamics changed.
Within a year, Colgate Cibaca managed to garner whopping 50% of the
market share in the discount segment and established Colgates supremacy
once again. HLLs Aim however could not match the success and was
subsequently withdrawn from the market .Today not only has Colgate's
flagship brand grown, but Colgate Cibaca has risen to become the 4th
largest paste brand in the country in volume terms after Colgate Dental
Cream, Pepsodent and Close-up .It is interesting to note that Colgate Cibaca
became big without any intensive communication support. It relied more on
trade level activities and below the line strategies for its success. However
the journey for brand Colgate Cibaca has just begun. Having come up this
far, Colgate now aims to move Colgate Cibaca to the next level of growth.
Hence the challenge is increase the share of Cibaca without cannibalizing
mother brand Colgate.
York to
Weaknesses
1) Product research
2) Highly leveraged
3) Because of high rate of taxes prices are high
Opportunities
1) Emerging market growth
2) Deploying advance technologies
3) Implementing new products majorly to attract youth.
Threats
1)Competitive landscape fromother private label growth
2)Increasing commodity prices
3) Political condition are not stable
Price
List price- the list price of the product is RS 12.50 for 50g pack. the product
is in the popular segment which is priced higher to onlythe economy
segment and lower than the gel and premium segment in the toothpaste
market.
Discount/Allowances- No promotional discount are allowed.
Payment period/credit terms- Being an off-the-shelf FMCG, in line with the
category, no credit ia allowed by the company (though the store allows
credit on purchase of all items)
place
Colgate toothpastes are available at every convenience place to facilitate its
customers. So, customer purchases it with a very little shopping effort.
Colgate use different channel (retailers and wholesalers) to search and
delivers the prospective customers. Colgate use the distribution channel
which is very efficient, effective and which is not only meets customer needs
but also provide them the valuable services. It uses the different method to
design a channel of distribution. First of all Colgate specify the role of its
channel of distribution. It usually adopts the offensive kind of distribution
which is fast enough to sell its products rapidly throughout the country. Here
Colgate keeps in mind the marketing objectives and all the marketing mix.
Promotion
Promotion is one of the most important P of marketing mix. Promotion
plays an important role in the progress of a product. Promotion in the
marketing is like a tool which helps a company to let the people know about
the product.The main purpose of the promotion is to Create Awareness,
Persuasion, Education, Information, Emotion, Brand Loyalty, Understanding,
etc. Colgate-Palmolive informs its customers about its new products as well
as the product that is being used by the customers. Colgate-Palmolive
persuades and convinces its new as well as old customers to purchase its
new product. Adopting a good promotional strategy Colgate has succeeded
to retain its customers and image. By this Colgate strongly focuses on
different promotional strategies i.e. mass selling, advertising, publicity and
sale promotion etc. Colgate-Palmolive has proved itself as a keen observer of
the market and the culture all around itself. Colgate has done in the past and
still doing at the moment. It is producing & introducing the products
specially for the kids. Colgate is very popular among young kids just because
of its perfect promotion. Colgate-Palmolive is promoting kids products by
labeling the cartoon Characters like Looney tunes,Barbie, Barney and many
BRAND PERSONALITY
Sincerity Dimension:-Realistic, sentimental, and down-to-earthunder the
Sincerity dimension are more relevant for Colgate because the respondents
feel that the brand is suitable for cleaning and maintaining teeth and the
benefits highlighted by the brand such as white and strong teeth are based
on facts. While sincere and wholesomeare not applicable to Colgate
because the brand is not fair and just and its usage does not give physical
and mental satisfaction.
Exciting Dimension:-cool, contemporary, and imaginativeare
not
applicable to Colgate brand because the respondents believe that the
advertisements, sales promotion programmes, POP displays, etc., are not
very creative and are based on current events.
Competence Dimension:-successfulunder Competence dimension is not
applicable to Colgate brand because the users do not believe that it is one of
the successful brands
BRAND IDENTITY
There are brands which are not known by many buyers in the market place
on the other hand there there are brands for which the buyers have a fairly
high degree of brand awareness. Beside this there are brands with high
degree of brand preference. Finally there are brands that command high
degree of brand loyalty. This is where the acid test of brand lies. Whenever a
brand innovates, The role of brand name is to protect the innovation it
creates a mental patent. The brand name makes the innovation exclusive
and protects it against imitations.
The sources of a brands identity include: The product, the name, brand
characters, form of advertising.
There are four component of brand identity platform:
1. The product class in which the brand is to operate.
2. The targeted consumer segment.
3. Brand location in the perceptual space of the target consumer.
4. Benefits and Attributes with the brand by the consumer.
BRAND PORTFOLIO
Colgate Max fresh
Colgate total
Colgate Total provides complete 12hour protection and fights a full range
of oral health problems
Colgate sensitive
Colgate kids
Colgate Herbal
Brand hierarchy
A brand hierarchy is a useful means of graphically portraying a firms
branding strategy by displaying the number and nature of common and
distinctive brand elements across the firms products, revealing the explicit
ordering of brand elements. Its based on the realization that we can brand a
product in different ways depending on how many new and existing brand
elements we use and how we combine them for any one product. We can
construct a hierarchy to represent how products are nested with other
products because of their common brand elements.
COLGATE
TOOTHPASTE
Colgate
Dental Cream
Colgate
Total
Colgate
Herbal
Colgate
Active Salt
colgate Max
Fresh
Colgate
Cibaca