5 Top Tooth Paste

_______________________________________Top Five Toothpaste Brands in Mumbai
Executive Summary
A day to day necessity of our life is toothpaste. We have variety of brands
available in market. People use variety of toothpaste as per their requirement and as per
their need, the main objective of using toothpaste is to keep our teeth healthy, 24 hours
freshness and to avoid cavity so that we can enjoy our life as we want and we can enjoy
variety of food. We have Colgate, Pepsodent, Close up, Cibaca, Babool, Anchor,
Ajanta, etc.
The main objective behind making this project is to provide detail analysis of
top 5 brand used in Mumbai, and to know most preferable toothpaste in south Mumbai.
The top 5 brands used in Mumbai are COLGATE, PEPSODENT, CLOSE UP,
CIBACA, COLGATE FRESH ENERGY GEL.
This project gives you brief introduction about Toothpaste Industry, History of
Toothpaste, Industry Overview, Segments in the Industry. It includes primary and
secondary information.
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.
In India, per capita toothpaste consumption stood at 74g in 2005, which is

amongst the lowest in the world, compared to 350g and 300g in Malaysia and Vietnam
respectively.
Oral hygiene continues to be under aggressive competition, with sales increasing
by a modest 3% in current value terms in 2006 to Rs. 2,400 crs. Toothpaste accounted for
a whopping 83% of value sales.

Industry analysts believe that the new threat will come from smaller players who
have embraced a different kind of business model with a different value proposition.
These include regional brands and private labels.
Index
Chapter No.
Topic
Introduction Toothpaste Industry
1-9
Consumer Behavior
10-13
Top Five Toothpaste Brand
14-20
Analysis Of Toothpaste Brands
21-54
Case study Based on Cibaca
55-56
Conclusion
57
Recommendations
58
Bibliography
59
Webliography
60
10
Annexure
61
Page No
Ch.1 Introduction of Toothpaste Industry
1.1 Brief History of Toothpaste

Toothpaste use was first reported in Africa (Egypt) at about the 4th AD. The
primitive toothpaste was we know was made up of salt, pepper, mint leaves and iris
flower. Urine based toothpaste was widely used in Europe during the Roman times. In
early America, toothpaste consisted of burnt bread. Up till today in many parts of Africa,
specific types of herbs are still been chewed which helps to keep the mouth and teeth
pristine clean.
1.2 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 2005, 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
(Table 1.2): Toothpaste Penetration
All India Urban Rural
Penetration% 50%
75%
39%

With the huge consumer base waiting to be tapped and the expected rise in
purchasing power as the economy picks up, oral hygiene in India may receive a fresh
lease of life.
A) The Toothpaste market

Oral hygiene continues to be under aggressive competition, with sales increasing
by a modest 3% in current value terms in 2006 to Rs. 2,400 crs. Toothpaste accounted for
a whopping 83% of value sales.
(Table A-1): Toothpaste market in value (in Rs. crs.)
Period
Apr-Mar04
Apr-Mar05
Apr-Mar06
Urban + Rural
1897
1950
2009
Urban
1340
1386
1414
Rural
556
565
594
(Table A-2): Toothpaste market in volume (in tones)

Market volume trends
Apr-Mar04
Apr-Mar05
Apr-Mar06
Urban + Rural
77320
84501
86562
Urban
53791
59172
59922
Rural
23529
25329
26640
(TableA-3): Value - Zone Wise (in Rs. crs.)

North zone East zone West zone
Apr-Mar06 486
%wise
24
335
17
543
27
South zone
645
32
(Table A-4): Value - Town Wise (in Rs.crs.)

Total market value Town class
Apr-Mar06
Metro Class 1 Others

561
386
467
4

%wise
40
27
33
B) 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.
C) Segments in the Industry

i) Price-based segmentation of the toothpaste category
On the basis of price, the toothpaste market can be broken down into two distinct
categories:
ii) 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.
iii) Threats from smaller brands in the low priced segment

Small and regional brands from the low priced segment are expected to perform
well because they are often close to the market, respond faster to changes and are willing
to learn from mistakes.
Industry analysts believe that the new threat will come from smaller players who
have embraced a different kind of business model with a different value proposition.
These include regional brands and private labels.
Regional brands typically take on well-known, established brands by pursuing a
flanking strategy which can be of two types geographical or need-based.
In a geographical attack, the challengers identify regions where the opponent is
underperforming. The other flanking strategy is to serve unfulfilled market needs. The
smaller brands have also started delivering on the quality front.
D) Key Players
The toothpaste segment is largely a two player industry, Colgate Palmolive &
HLL accounting for 80% of the entire market
(Table D-1): Company Share (Value)
Period
Colgate Palmolive HLL Dabur
Apr-Mar06 47.3%
30% 7.2%
(Table D-2): Company Share (Volume)
Period
Colgate Palmolive HLL Dabur
Apr-Mar06 48.8%
27% 9.1%
i) Colgate the dominance continues

Colgate has been present in the domestic oral care market for the last 70 years and
its oral care brands enjoy strong brand equity in the market.
The company has traditionally been the leader in the domestic oral care market.
Currently, it occupies a dominant position in the toothpaste segment with a 48% market
share in the domestic market. Its relative market share is 1.5 times the second largest
player.
Cibaca was acquired by Colgate in 1994 from Ciba Geigy. The company today
has two main brands in the toothpaste segment Colgate and Colgate Cibaca.
Faced with tough competition from HLL during early 2000, Colgate made a slew
of successful new launches to protect its market share namely Colgate Herbal, Colgate
Gel & revitalized Colgate Cibaca Top (in the low price segment).
The company has continuously relied on innovations to stay ahead of the
competition. It launched 3 new innovative variants during the course of FY06.
1. Colgate Active Salt This capitalizes on the traditional use of salt for oral care.
2. Colgate Advanced Whitening Which contains that microcrystals polish ones teeth,
restores and maintains their whiteness.
3. Colgate MaxFresh Gel An innovative gel-based toothpaste with cooling crystals.
4.1.1: Current Brand portfolio: Toothpaste
1. Colgate Dental Cream
2. Colgate Total
3. Colgate Herbal
4. Colgate Kids Toothpaste
5. Colgate Advanced Whitening
6. Colgate Active Salt

7. Colgate Fresh Energy Gel
8. Colgate Max Fresh
9. Colgate Cibaca
The company has backed its products with a very strong distribution network. The
companys distribution network covers 940 direct accounts and 3.8 million retail outlets.
Colgate is the 2nd most widely distributed product in the country. The company is tying
up with initiatives like
E-chopal and Disha to further strengthen its distribution
network.
ii) Tremendous brand equity

Over the years, Colgate has been able to develop strong brand equity. It has been
voted the The Most Trusted Brand in the country for 3 consecutive years in the AC
Nielsen Brand Equity Survey.
iii) HLL the challenger

In the late 1980s, Hindustan Lever used the novelty element in gel toothpaste to
make steady inroads into Colgate's dominance in the oral care market. Its gel toothpaste,
Close-Up helped HLL become the second largest paste brand; posing a stiff challenge to
Colgate.
However as the novelty of gel toothpastes wore off, HLL renewed focus on its
other brand Pepsodent to help it protect its turf.
Its attempt at offering a low priced brand Aim was not completed and the brand
was subsequently pulled back after launching it in early 2000 Both Close Up and
Pepsodent have a combined market share of 30%
The current brands offer distinct propositions; Close Up addresses the youth with
new benefits and value-driven propositions, whereas Pepsodent is firmly entrenched on
the family health platform with variants catering to oral health
8
Current Brand portfolio: HLL
iv) Dabur Growth through acquisition

Dabur has managed to grab a 7.2% market share with the acquisition of Balsaras
oral care
v) Brands:
Babool, Promise and Meswak in addition to its own brand Dabur Red (Targeted
To Capture Consumers Shifting From Toothpowder To Toothpaste).
1.3 Scope of the Study:

Research is conducted to highlight the behavior of consumers in respect to
toothpaste Study has also been made about the buying pattern of the consumers and how
important. It also provided information about the leading brand in the market along with
their market share.
Research is conducted to study Top Five Toothpaste Brand in Mumbai.
1.4 Objective of Study:

1. To study the buying pattern of consumers towards toothpaste
2. To identify the various types of attributes of the toothpaste

which influences consumers.
9
3. To understand which kind of advertisements are effective for attracting consumers.
4. To study different promotional activities which are most accepted by the respondent
1.5 Research Methodology:

A) Methods of data collection
For the present study, method of data collection adopted were Primary sources
as well as secondary sources. Primary sources comprises of data collected from 128
respondents through questionnaire method. Whereas ,secondary data were collected
from books, journals, magazines, websites and sources around.
B) Sample Characteristics
Respondents: Consumer and retailers
Consumers were interviewed between the age group of 15 and above
Center: South Mumbai (Charni Road to Mumbai central)
Sample Size: 128 from Charni Road to Mumbai central

Age Group
15 and above
Type
Consumer (124)
Retailers (4)
10

Duration of the Research Work: 23rd July 2007 to 26th September 2007.
C) Limitations of the study

Sample sizes were restricted to 128 respondents in the city of Mumbai. From
Charni Road to Mumbai central our sample size of 128 thus cannot be said to be the correct
representation of the target market.

Toothpaste are not only sold in exclusive shops but also sold in simple retail
shops. Thus it is very difficult to estimate the sales and buying pattern of consumers in
general.
Ch.2 Consumer Behaviour

2.1Meaning of Consumer Behaviour:
Consumer behavior is the study of how people buy, what they buy, when they
buy and why they buy. It is a subcategory of marketing that blends elements from
11

psychology, sociology, sociopsychology, anthropology and economics. It attempts to
understand the buyer decision making process, both individually and in groups. It
studies
characteristics
of
individual
consumers
such
as
demographics,
psychographics, and behavioural variables in an attempt to understand people's

wants. It also tries to assess influences on the consumer from groups such as family,
friends, reference groups, and society in general.
2.2 Introduction Indian consumer behaviour

India is a big country with 28 states, over one billion people and 120
dialects/languages. From the market perspective, people of India comprise different
segments of consumers, based on class, status, and income. An important and recent
development in Indias consumerism is the emergence of the rural market for several
basic consumer goods.
Three-fourths of Indias population lives in rural areas, and contribute one-third
of the national income. This rural population is spread all over India, in close to 0.6
million villages.11 %of toothpaste sales come from Mumbai and Delhi.
2.3Characteristics of the Indian Consumer Behavior

The Indian consumers are noted for the high degree of value orientation. Such
orientation to value has labeled Indians as one of the most discerning consumers in the
world. Even, luxury brands have to design a unique pricing strategy in order to get a
foothold in the Indian market.
Indian consumers have a high degree of family orientation. This orientation in
fact, extends to the extended family and friends as well. Brands with identities that
support family values tend to be popular and accepted easily in the Indian market.
Indian consumers are also associated with values of nurturing, care and
affection. These values are far more dominant that values of ambition and
achievement. Product which communicate feelings and emotions gel with the Indian
consumers.
12

Apart from psychology and economics, the role of history and tradition in
shaping the Indian consumer behavior is quite unique. Perhaps, only in India, one sees
traditional products along side modern products. For example, hair oils and tooth
powder existing with shampoos and toothpaste.
2.4 Different segments of Indian consumers

The Socialites: They are always looking for something different. They are the darlings
of exclusive establishments Socialites are also very brand conscious and would go
only for the best known in the market.
The Conservatives: The Conservatives belong to the middle class. The conservative
segment is the reflection of the true Indian culture. They are traditional in their
outlook, cautious in their approach towards purchases, spend more time with family
than in partying and focus more on savings than spending.
The Working Women: The working woman segment is the one, which has seen a
tremendous growth in the late nineties. This segment has opened the floodgates for the
Indian retailers. The working woman today has grown out of her long-standing image
of being the homemaker.
2.5 Increasing Awareness of Indian Consumers

Over the years, as a result of the increasing literacy in the country, exposure to
the west, satellite television, foreign magazines and newspapers, there is a significant
increase of consumer awareness among the Indians.Today more and more consumers
are selective on the quality of the products/services.
13

This awareness has made the Indian consumers seek more and more reliable
sources for purchases such as organized retail chains that have a corporate background
and where the accountability is more pronounced. The consumer also seeks to
purchase from a place where his/her feedback is more valued.
Indian consumers are now more aware and discerning, and are knowledgeable
about technology, products and the market and are beginning to demand benefits
beyond just availability of a range of products that came from trusted manufacturers.
The Indian consumers are price sensitive and prefer to buy value for money products.
2.6 Marketing Strategies

Online Marketing
Celebrity Influence
Quality Oriented Outlets
Freebies
Eco-Friendly Products
2.7 Changing Trends in Indian Consumer Behaviour

Bulk Purchasing
Trendy Lifestyles
Buyers Market In The Making
2.8 Consumer Behaviour towards different toothpaste:

There are three major brands of toothpaste in India, viz. Colgate, Pepsodent and close
up. All three of them compete with each other to capture maximum market share. In order
to achieve this, they not only target children as consumers but also feature them in their
advertisements to attract other young consumers.
14

Colgate, for e.g., targets young children in the age group of 5 to 12 and offers free
cartoon booklets along with toothpastes. Pepsodent vies for the same consumer segment
and depicts some children relishing snacks, confectionery and sweets, while others are
scolded by their mothers for having done the same thing.
This advertisement makes children believe that consumers who use Pepsodent
are immune to any tooth decay because of the superior quality of the product. This
claim is unauthenticated and attempts to mislead children.
Close Up, on the other hand, does not perceive children as its target audience.
Instead, it targets teenagers and the youth. It creates a brand image of confidence and
popularity for young consumers between the age group of 16-30. Its advertisements
constantly feature successful friendships and romances between Close-Up users.
Millions of rupees are spent on advertising a product which costs as little as Rs
30 and is considered ordinary by most consumers. From pushing toothpaste on neem
sticks to advertising in the Kumbh mela, the market can go to any extent to boost its
sales. After a point, the sales tend to stagnate.
This negative development is offset by constantly repackaging the present
product and introducing new products. For instance, Colgate has a number of brands
in the market, like Colgate Total, Colgate Dental Cream, Cibaca, Colgate Gel and
Colgate Herbal.
Ch.3 Top Five Toothpaste Brands

The objective of this chapter is to focus on the top five toothpaste brands in
Mumbai. The top five toothpaste brands are as follows
3.1 Colgate Dental Cream
15
Colgate Dental Cream is the most widely distributed oral care brand in India has
a market share of 34% in value terms. It was revitalized in 2003 with an
improved germ fighting formulation. Its anti-bacterial ingredient has been boosted
to offer superior germ fighting efficacy.
These improvements come in addition to its calcium and minerals formula that
helps repair weak spots on teeth and locks in additional calcium and essential minerals to
make teeth stronger than ever before.
3.2 Close-Up Active Gel
Launched in 1975, Close-up was the first gel toothpaste in India. It has since then
undergone periodic relaunches. In 2004, Close-up was relaunched with a bang. And this
time it was packed with the power of Vitamin Fluoride System a powerful mix of
Vitamins, Fluoride, Mouthwash and Micro whiteners, the perfect combination of
ingredients for fresher breath and stronger, whiter teeth. Close-up is now the first Gel
toothpaste with Fluoride in Indian Market. Current market share stands at 14%.
3.3 Pepsodent Complete 10
Pepsodent, the second offering from HLL with a market share of 11% was
launched in 1993 and was the first toothpaste with a unique antibacterial agent to address
the consumer need of checking germs even hours after brushing.
16
Pepsodent has always been regarded as a mothers oral health care ally and has
been associated with inculcating good dental habits amongst kids. Currently the brand is
championing night brushing habits amongst kids through its latest TV commercial. The
thrust is on making brushing at night a fun activity for kids. The brand plans to continue
with its initiatives to promote healthy brushing habits.
3.4 Colgate Cibaca Top
Colgate Cibaca Top is currently the fourth largest brand with 5.7% Market
Share. (Please see Page 9 - 5.9 for details)
3.5 Colgate Fresh Energy Gel
The Company launched new Colgate Gel Toothpaste in 1991.Colgate Fresh

energy contains icy cool gel which leads to mouth coolness and minerals which make
teeth stronger. It has a market share of 3%. The Colgate Fresh Energy Gel advertising
campaign launched in 2001 used an innovative catch phrase Talk to Me and used
television, outdoor and online media to connect with the youth.
The company continued to build on its highly successful campaign and relaunched it with a new flavour in a transparent tube, a first for the category in India.
3.6 Other brands
A) Anchor
17

Anchor belongs to Anchor Health and Beauty Care (AHBC), a part of theAnchor
Group (makers of Anchor Electrical switches).Anchor forayed into the FMCG market
with the launch of Anchor White Toothpaste, which was positioned as Indias first British
Dental Health Society certified 100 per cent vegetarian toothpaste, in 1997. In fact this
proposition had so strong a consumer-pull that by 2002 it was the number three
toothpaste brand.
In 2006, Anchor decided to directly compete with Colgate Dental Cream, thereby
differentiating itself from the LPP segment. It significantly upgraded its product bundle,
both in terms of superior formulation (almost parity to CDC) claims and by the
development of an All-round Protection sub brand. This is currently endorsed by Dravid
with strong TV support.
B) Babool
Babool originally a Balsara product was acquired by Dabur last year. Babool
straddles the economy and herbal platforms. Its natural toothpast contains ayurvedic and
medicinal benefits of the Babul tree, 'Acacia Arabica. While Babool still pursues an
aggressive promo strategy, it has also upgraded its bundle ever since the acquisition, by
putting the Dabur brand on its pack and signing up Vivek Oberoi as a brand ambas
C) Ajanta
Ajanta toothpaste is an offering from the personal care division of Ajanta Clock
Manufacturing Company. With aggressive pricing as its USP, the company decided to do
a Nirma in the toothpaste Industry. Originally priced at one-third of a Colgate or a
18

Pepsodent, Ajanta rewrote the rules of the game for oral care products. It targeted its
offering in the low price, mass-market segment.
3.7 Brand wise Market Share

Table 3.7.1: Brand Share (Value)
Brand
Colgate
Pepsodent (all Cibaca
Colgate
Close-up (all
Share%
Dental
variants)
Top
Fresh Energy variants)
Apr-
Cream
33.8%
16%
5.7%
Gel
3.3%
11%
Mar06
Table 3.7.2: Brand Share (Volume)

Brand
Colgate
Pepsodent
Share%
Dental
(all
(all
Cream
variants)
variants)
32%
15%
Apr-Mar06
Cibaca Top
10.3%
Close-up
8.5
Anchor
4.5
A) Category Media Spends (in Rs. crs.)*

Period
Spends
March04
575
March05
570
March06
866
Apr-
Colgate
Pepsodent
Close-up
19
Colgate
Pepsodent

Mar06
Dental
10
Active Gel
Cream
Total
Advance
Germi-check
Whitening
159
107
92
67
65
T.V.
157
107
92
67
65
Print
spend
B) Current Communication
BRAND
Colgate
TAGLINE
PROPOSITION
Bhartiya dentists ki Colgate is the expert (the last word) on dental care
number one pasand.
&
provides
you
with
12
hour
protection
safeguarding you against 12 common tooth

problems.
Pepsodent Pepsodent,
raat With Pepsodent on guard parents no longer have to
bhardishum
worry because brushing with pepsodent at night
dishum.
ensures protection of their childrens teeth the

whole night through.
Close-Up
Vitamin
system
floride Vitamin floride has three fold benefits such as:

wala
naya 1)Whitens yellow teeth,
Close-Up.
2)Freshens your breath,

3) Makes your teeth strong.
Meswak
Meswak
toothpaste. Proud to use an Indian brand
Formula sirf Bharat ke

paas hai.
Babool
Subah babool hi to Babools nature & sweet peppermint test enable

din tumhara.
Anchor
you to face life head on.
Naye zamaane ki nayi Advanced formula that protects one teeth from
20

suraksha.
germs & keep them strong.
3.8 Survey Report & Data Analysis:

According to survey following data was collected:
60
50
40
30
% use
20
10
0
colgate
close-up pepsodent
Type of toothpaste
54% of people use Colgate
19% of people use Close-up
17% of people use Pepsodent
7% of people use Cibaca
3% of people use others
21
cibaca
others
Ch.4 ANALYSIS OF TOOTHPASTE BRANDS
4.1 Colgate Palmolive (INDIA) Ltd. {CPIL}
A) Introduction of company:
22

Colgate-Palmolive Company is a U.S. diversified multinational corporation
focused on the production, distribution and provision of household, health care and
personal products, such as soaps, detergents, and oral hygiene products (including
toothpaste and toothbrushes). Under its "Hill's" brand, it is also a manufacturer of
veterinary products.
Name: Colgate-Palmolive Company

Location: New York
Industry: Consumer products
Products/Services: Oral care, personal care, home care, and pet nutrition
Revenue: US$11.3 billion
Employees: 35,800
Web Site: www.colgate.com
Following Table / Chart show Net sale of colgate
YEAR
Rs.(crores)
Increase in Percentage
2003-04
939
2004-05
964
+2.7%
2005-06
1,124
+16.6%
2006-07
1,295
+15.2%
23
No. of year
Colgate Entered as a premium brand, Replaced imported raw material with
material from local suppliers Colgate 12 variations of products, including Colgate Herbal
Salt, Colgate Grow market share from 7% to 15% over just two years Increase margin by
13.6% over five years
Colgate-Palmolive (India) Limited is India's leading provider of consumer
products sold under nationally recognised brand names as Colgate (scientifically proven
oral care products that have become an essential part of daily oral hygiene and
therapeutic oral care), Palmolive (personal hygiene and skin care products) and Axion
(household care). Colgate has been ranked India's # 1 brand across all categories for eight
out of nine years (1992 - 2001) by the A&M-MODE annual survey of India's Top Brands.
Market share position of Colgate Palmolive (INDIA) Ltd in 2001 is summarized below
PRODUCT
Percentage
S
%
Toothpaste 50.85%
Toothpowd 48%
er
Toothbrus
31%
24
While market share of Colgate Dental Cream dropped from 41% to 38.5% in
2001, other have gained, like Herbal from 0% to 2.4%, Cibaca Top from 0% to 4 5%.
Thus overall, company market share in toothpaste has not dropped. Company will
continue to focus on profitable growth, because after all it is bottom-line that matters.
Company has been selectively raising prices of products depending on market
conditions. At the same time, volumes have also been growing in middle and premium
segments. Strategy is that company has many homes where dual Colgate products are
used. E.g., variants of toothpaste used by younger people and children and toothpowder
by older people.
There will not be let go on Advertisement and Sales promotion spend, as this is an
essential investment in strengthening the brand. 5-6 years ago, CPIL was spending just 78% of turnover on Advertisement and Sales promotion. That was not sufficient. Company
need to spend more on Advertisement and Sales promotion, as competitors are likely to
remain aggressive. In addition to existing players like HLL, Dabur and now Electric
switch makers "Anchor" becoming very aggressive. Anchor have gained more than 1% of
market share from 1.8% to 3%.
In future, company expects expenditure on Advertisement and Sales promotion as
a proportion to sales will almost remain the same. There could be periodic variations.
However, there wont be disproportionate increase in Advertisement and Sales spends.
Besides, improving productivity of Advertisement and Sales promotion will ensure that
same amount of spending will give higher revenue growth in future.
Company is projecting to grow high in urban markets rather than in rural ones.
Penetration level has been increasing for the category as a whole. For CPIL, penetration
level for toothpaste is 80 - 85% in urban markets, whereas in rural markets it is 35 40%
for toothpowder. National penetration for toothpaste is 40 - 45%. Including toothpowder,
it will be higher than that.
25

In addition to pure advertisement expenditure on different media, there are several
promotional schemes like price off, extra quantity at same price, incentives to dealers for
bulk quantity picking, giving some add-on free with product, etc. For the category as a
whole, nearly 19 25% of sales would be coming from such promotional schemes,
whereas in case of CPIL, it is 15 - 20%. Balance sales takes place across the retail
counters at MRP.
In near-term, company expects to continue to grow at 8-10% per annum. If rural
economy picks up, company can grow faster, without matching increase in
Advertisement and Sales promotion spend
During Oral Health Month 2007, Colgate-Palmolive (India) has used a 360 degree
approach to raise awareness through a combination of television, print, radio, hoarding,
online ads and a series of below-the-line activities.
Colgate-Palmolive (India) Limited is Indias leading provider of scientifically
proven oral care products with multiple benefits at various price points. The range
includes toothpastes, toothpowder and toothbrushes under the 'Colgate' brand
Colgate Oral Pharmaceuticals have become an essential part of daily oral hygiene
and therapeutic oral care in India. The Company also provides a range of personal care
products under the 'Palmolive' brand name. Colgate has been ranked as Indias Most
Trusted Brand across all categories for four consecutive years in 2003 to 2007
B) History of Colgate-Palmolive (India) Ltd.:

26
1937 - The Company was incorporated on 23rd September, as a private limited company.
The Company Manufacture and market dental care products (dental cream and tooth
powder), hair care products (hair oils, shampoos, brilliantine) and other personal care
products such as shaving creams, and lotions, face creams, baby powder, talcum powder,
etc. The products are marketed under the trade marks "Colgate". "Palmolive", "Halo" and
"Charmis". - A distribution set up was also developed on an all-India basis with
warehouse facilities in Mumbai, Chennai and Calcutta.
Colgate-Palmolive Company, U.S.A. supplemented this reinvestment by
providing, technical assistance, new product information and its worldwide developments
in quality dental care and other personal care products. The Company has its own
research and development facilities.
1978 - The object of the offer for sale of shares made to the Indian public during
November was to reduce the non-resident holding to 40%. This offer for sale was made
by Colgate-Palmolive Company, U.S.A., to the resident-Indians public to comply with
FERA, 1973. As a result, 11, 79,000 No. of equity shares of Rs 10 each were offered at a
premium of Rs 15 per share. Shares sudivided on 29.9.1978. 19, 50,000 bonus shares
were then issued in prop. 130:1.
1982 - 19, 65,000 Bonus equity shares issued in prop. 1:1.

1985 - 39, 30,000 bonus shares issued in prop. 1:1.
1987 - 78, 60,000 bonus shares issued in prop. 1:1.
1988 - The Company received a licence for producing 24,000 tonnes per annum of fatty
acids. It also registered with DGTD for production of 30,000 tonnes of toilet soap per
annum.
27

Orders were placed for setting up a fatty acid plant with an annual capacity of
20,000 tonnes and a toilet soap plant with an annual finishing capacity of 15,000 tonnes.
1989 - 1, 57, 20,000 bonus shares issued in prop. 1:1.
1991 - The Company launched new Colgate Gel Toothpaste, Palmolive Extra Care and
new Palmolive soap and relaunched a high quality colgate Plus and other toothbrushes.
- 1, 88, 64,000 bonus shares issued in prop. 3:5.
1993 - The Company participated in the global launch of Colgate Total Toothpaste and
Asia/Pacificregional launch of Protex Soap.
The Company proposed to negotiate with appropriate global partners for the
necessary technology needed to implement vertically integrated projects and
diversification into high technology areas to effect import substitutions for a range of
materials.
During September, 112,92,735 No. of equity shares of Rs 10 each were allotted at
a premium of Rs 50 per share to Colgate Palmolive Company, U.S.A. with a view to raise
its shareholding to 51% of the subscribed capital. 615,96,735 bonus shares issued in
prop. 1:1.
1994 - The Company acquired the oral hygiene business of Hindustan Ciba-Geigy Ltd.
The Company offered 123, 19,347 No. of equity shares of Rs 10 each at a premium of Rs
10 per share on Rights basis in the proportion 1:10 (all were taken up). 2,40,000 shares of
Rs 10 each were issued to the employees at a premium of Rs 10 per share on an equitable
basis (Details of allotment non-known).
Also, 2,49,795 No. of equity shares of Rs 10 each at a premium of Rs 1 per share
were issued to Colgate Palmolive Co., U.S.A., on preferential allotment basis to maintain
their shareholding at 51%.
28

1996 - The Company launched colgate fresh stripe tooth paste and palmolive naturals
soap in personal care products segments, Keratin Treatment Shampoo and Palmolive
optima in Hair care segment during the year. Axion dishwashing paste was test launched
in Maharashtra.The Company established a modern facility at Aurangabad to
manufacture Dicalcium phosphate, a key ingredient for toothpaste.
Passion Trading & Investment Co., Ltd., Jigs Investments Ltd., Multimint Leasing
& Finance Ltd. and Camelot Investments Company Ltd. are subsidiaries of the Company.
The Company established a wholly-owned subsidiary at Hetanda in Nepal in June
1988. The facility will manufacture tooth paste and tooth powder initially.
1998 - The Company received a licence for producing 24,000 tonnes per annum of fatty
acids. The company paid a dividend of Rs.4.50 per share in 3 instalments first interim
Rs.1.60 second interim Rs.1.60 and final of Rs.1.30 per share. - Colgate is the market
leader in oral care with its toothpaste commanding a market share of over 60 per cent,
followed by Hindustan Lever with around 35 per cent.
The Monopolies and Restrictive Trade Practices Commission (MRTPC) has, in an
interim order, directed Colgate to withdraw its long-standing "Suraksha Chakra"
advertisement within two weeks.
HLL has taken Colgate to the MRTPC over claims made by its recently launched
toothpaste - Colgate Dental Cream Double Protection (CDC-DP) - a variant of the
popular Colgate Dental Cream (CDC).
Colgate-Palmolive is one of the few multinational stocks which have failed to
outperform the market in the recent past. In its recent launch the company has launched
Colgate Double Protection tooth paste for the The Company received a licence for
producing 24,000 tonnes per annum of fatty acids.
The company paid a dividend of Rs.4.50 per share in 3 instalments first interim
Rs.1.60 second interim Rs.1.60 and final of Rs.1.30 per share. - Colgate is the market
29

leader in oral care with its toothpaste commanding a market share of over 60 per cent,
followed by Hindustan Lever with around 35 per cent.
The Monopolies and Restrictive Trade Practices Commission (MRTPC) has, in an
interim order, directed Colgate to withdraw its long-standing "Suraksha Chakra"
advertisement within two weeks.
HLL has taken Colgate to the MRTPC over claims made by its recently launched
toothpaste - Colgate Dental Cream Double Protection (CDC-DP) - a variant of the
popular Colgate Dental Cream (CDC).
Colgate-Palmolive is one of the few multinational stocks which have failed to
outperform the market in the recent past.
In its recent launch the company has launched Colgate Double Protection tooth
paste for the entire family.
Colgate-Palmolive has finally signed up with the depository even as Sebi has sent
out a note of warning to the remaining six companies.
Colgate-Palmolive (India) Ltd, a market leader in the toothpaste segment,
suffered heavy setback during the first half of the current year due to stiff competition.
The company has established the Dicalcium Phosphate (DP) manufacturing
facility at Aurangabad.
Colgate-Palmolive had launched the ad campaign for its new product Colgate
Double Protection toothpaste in competition with rival brand Pepsodent from the
Hindustan Lever
1999 - The corporate has launched the `Colgate Double Protection', `Colgate Total' and
`Colgate Sensation'. The company started a new research and development centre, a
manufacturing facility in Nepal, and completed a dicalcium phosphate facility in
Aurangabad.
30

A three-judge bench of the Supreme Court allowed the appeal of Colgate
Palmolive (India) Ltd with regard to the use of `Suraksha Chakra' in the advertisements
of the company's toothpaste.
The re-launch of Pepsodent in July, and launch of Rs 3.50 a sachet of Pepsodent
with a convenient nozzle has helped Colgate-Palmolive to increase its market share.
2000 - The Company has introduced two new variants to its Palmolive Naturals sopa
range and has revitalised its sandalwood soap. The Company has launch of two new
variants in its Palmolive Naturals range of beauty soap lime and milk cream The
Company has relaunched Colgate Gel as `Colgate Fresh Energy Gel.'
Colgate-Palmolive (Nepal) Pvt. Ltd., a wholly owned subsidiary of ColgatePalmolive (India) Ltd, has informed the stock exchange that a small group forcibly
entered the plant of Colgate-Palmolive (Nepal) at Hetauda industrial estate and denoted
two explosive devices The Company has launch of its International Palmolive Shave Gel
and Palmolive Shave Foam in response to growing consumer interest in skin conditioning
benefits
2001 - Colgate-Palmolive (India) Ltd. has launched its biggest national-level consumer
promotion involving its toothpaste, toothbrush and soaps. Colgate-Palmolive (India) Ltd.
has launched international cleaning product Ajax in the Indian household products
category for summer.
2002 - Graeme Dalziel, appointed as MD Of Colgate Palmolive India for a period of 5
years Colgate has hiked its market share from 45.9% to 50.2% in the toothpowder
segment with the new strategies of consumer centric promotional initiatives, impactful
visibility and an add campaign featuring sunil shetty.
Percept D'Mark has signed a deal with Colgate Palmolive, to offer miniature of
cricket stars in the dental pack.Colgate Palmolive has succeeded in the appeal
challenging the MRTP Commission order.Colgate-Palmolive launched its first miniature
collectibles of India's Top Cricketer's 'collect your cricketer' promotion.
31

2003 - Colagate-Palmolive has divested its stake in its subsidiary Camelot Investment
Company. Colgate has decided to concentrate on its non-oral care division, by launching
an international range of Palmolive Aeromatherapy persoanl care products.
Introduced 'Colgate Simply White', at-home teeth whitening gel which is priced at
Rs.600 for 10ml. -Colgate has relaunched colgate dental cream with what the company
calls a fresher taste and improved germ-fighting performance.The Company commences
shipment of the "New Superior" Colgate Dental Cream
The Herbal range was expanded with the launch of a "Herbal White" toothpaste
for whitening combined with the benefits of Herbal ingredients"Navigator Plus" was
launched with its unique characteristics as a premium toothbrush
An all new range of Aromatherapy products - Shower Gel, Liquid Hand Wash and
Bar Soap in 2 variants each were launched under the "Palmolive" brand as a major thrust
in the Personal Products portfolio
Colgate Palmolive Nepal Ltd a wholly owned subsidiary of the Company has
temporarily suspended its operations in view of deterioration in general security situation
in Hetauda
2004 - Vikram Kaushik resigns from the Board of Colgate Palmolive India ColgatePalmolive launches shower gel variant Unveils Palmolive Aroma Sensual Shower Gel,
enriched with a blend of Orchid extract and pure essential oils of jasmine and rose, the
gel is priced at Rs 90 for a 250 ml pack. Ties up with IDA to creat promote oral health
campaign
2005 - Colgate-Palmolive unveils Colgate Active Salt toothpaste
C) Brand Update of Colgate
32
Colgate has started aggressively promoting its niche variant Colgate Sensitive
toothpaste. This is a unique variant aimed at the segment of customers having tooth/gum
problem.According to a report more than 80% of Indians have dental problems like
gingivitis.
Sensitive is a variant that specifically address this segment. The brand is said to
give relief from pain after continuous use.
Colgate sensitive also has anti plaque and anti-tartar properties. The promotion of
Colgate Sensitive is to popularize the therapeutic segment which is not much popular in
India. Colgate uses its famous and controversial tagline No. 1 Brand Recommended by
Dentists".
Colgate has every qualification to be in the number one because of its ability to
understand Indian consumer and innovate in terms of the product and marketing mix.
Colgate People worldwide share a commitment to the three core corporate values:
Caring, Global Teamwork and Continuous Improvement. These values are reflected not
only in the quality of products and the reputation of Company, but also in dedication to
serving the communities where company do business.
Colgate-Palmolive (India) Ltd., undertakes its corporate social responsibility
through a variety of effective programs. Since 1976, the company has been delivering
free oral health education to children of rural and urban poor in partnership with Indian
Dental Association (IDA). Colgate's community outreach efforts have touched the lives
of millions of children, providing the information, insight and inspiration they need for a
healthy life and a healthy smile.
D) Corporate Social Responsibilities in Business:

Colgate's success is founded on the Company's core values of Caring, Continuous
33

Improvement and Global Teamwork. Evident in all aspects of our business, these values
are the driving force behind everything we do. It is reflected in our commitment to
providing safe, high quality products that enhance the lives of consumers around the
world.
These values fuel our successful long-term efforts to create a workplace where all
Colgate people act with integrity and with respect for one another. Colgate's goal is to
help make our world a safer, better, healthier place to live in. Making a difference in the
world does make a world of business sense.
E) Colgate endeavors:
Colgate-Palmolive India sponsors the Inter Mumbai Physically challenged
Cricket tournament along with Premnagar Sports Club. With teams participating from all
over Mumbai it gives the participants a chance to showcase their talent, and compete in
the spirit of the game.
The Company encourages the physically challenged to explore their talent in
various sporting disciplines by sponsoring such events and helping them to give their
best. It is company constant Endeavour to support such organizations that work for such
worthy causes.
F) Disaster Relief:
{Colgate Rises to the Occasion}
Whenever there has been a National disaster, Colgate-Palmolive India has always
risen to the occasion.The 26th January 2001 earthquake saw the Company immediately
distribute medicines and blankets to those affected. This was followed by sending our
products to the victims.
34

Colgate distributed a complete household utensil kit with a cooking stove to help
rehabilitate needy families.To add to these efforts, the Company also supported the
efforts of FICCI - the economic body that was doing things on a much larger scale with
other corporate supporting it.
G) Education:
{Partnership with Pratham}
Partnership with Pratham

Colgate supports Pratham, an NGO working in the field of education of
underprivileged children. Colgate has worked with Pratham to set up libraries in
economically backward areas to encourage and inculcate the habit of reading among the
children living here. We have also supported training and development modules for
Pratham's volunteer base of over 10,000 people.
H) Health
(Colgate Cares)
Company three core values of Caring, Global Teamwork and Continuous
Improvement are put into action in companys work as well as in companys
communities.The results are better products and a better quality of life throughout the
Colgate world.
The Colgate Bright Smiles, Bright Futures Oral Health Educational Program
worldwide was developed to teach children positive oral health habits of basic hygiene,
diet and physical activity.This Program also encourages dental professionals, public
35

health officials, civic leaders and most importantly, parents and educators to come
together to emphasise the importance of oral health as part of a child's overall physical
and emotional development.
Under this Program conducted by Colgate-Palmolive, India children in primary
schools receive instructions in dental care from members of the dental profession
nominated by the Indian Dental Association. Education is imparted with the aid of audiovisuals and printed literature created by the company. Free dental health care packs,
including samples, are also distributed by the company to encourage the practice of oral
hygiene. {Teachers Training Program}, is an integral part of the School Dental Health
Program, conducted regularly across the country to promote preventive dental health
care.
Training in the basics of oral health care is imparted to school teachers. This helps
them play a significant role in preventive oral care by inculcating good oral care habits in
the students. The Teachers Training Program forms a vital part of the Colgate Bright
Smiles, Bright Futures Program.
I) Colgate-IDA Activities:
Colgate actively and closely supports the efforts of Professional Dental
Associations to continuously update the knowledge and skills of dental professionals
through various fora. Colgate today is the major sponsor of almost all Dental
Conventions, Seminars, Conferences and specialized workshops. In collaboration with
the Indian Dental Association, IDA-Colgate Continuing Dental Education Programs are
regularly organized all over the country, exposing the practicing dental professional to the
latest advances in dentistry.
36
J) Colgate Lends a Helping Hand:

"Our Children" - a trust for street children - has been a recipient, as has "Citizen",
an Indian NGO working for the cause of thalassaemia with children and Tata Memorial
Hospital for the Pediatric Cancer Patients.
Payroll Giving (Association with United Way of Mumbai)
Colgate has partnered with United Way of Mumbai, a charitable trust established
by leading corporates in Mumbai, to introduce a "Payroll Giving" program. Under this
program, Colgate employees have contributed to a variety of causes including education,
early childhood development, and support for underprivileged women and civic issues.
Making a difference with Greeting Cards
Every year, Colgate supports a different cause when it sends out its greeting cards. Some
of the causes company has supported are: " services for children and families in need
(through Prasad Chikitsa Charitable Trust) " aid for the deaf-blind (through Sense
International India) " support for mentally and physically challenged children of Armed
Forces personnel (through Asha schools).
This Oral Health Month 2007, Colgate is committed to support the treatment of
oral cancer patients in association with Cancer Patients Aid Association.
By collecting pledges from every individual that we contacted through the various
Oral Health Month initiatives, we involved them in our noble cause to spread awareness
of the support Oral Cancer requires. The mission of OHM is Zero Tooth Decay and
while fulfilling this, all participants of the OHM activities helped to 'Spread a Smile' to
the Oral Cancer patients
K) Culture and Values
37

Colgate people are one of the company's greatest resources. They contribute
towards building strong global growth, building market leadership, and increasing
profitability. As one of the most widely recognized consumer products companies in the
world, Colgate attracts many talented people. Bringing the best people to Colgate is step
#1 to 'Becoming the Best Truly Global Consumer Products Company
'An Equal Opportunity Employer:
It is the policy and practice of Colgate-Palmolive to provide employment
opportunities to all qualified persons on an equal basis. The company does not
discriminate against any employee or applicant for employment because of race, religion,
sex, community, age, marital status, or any other characteristic protected by law in any of
the terms or conditions of employmen
4.2 CLOSE UP
A) Introduction:
Product Name: Close-Up Toothpaste (Fluoride Gel and Fluoride Mint Gel)
Other Names: None
Product Type/Use: Toothpaste
Description: Clear, green or red gel.
38
Unlike the typical opaque, mint-flavored toothpaste of the time, Close-Up

debuted in 1967 as a clear red gel with a spicy cinnamon taste and mouthwash right in
the toothpaste. A Unique brand identity was developed, with Close-Up positioned as
the toothpaste that gives people confidence in those very "up close and personal"
situations.First toothpaste in US to combine mouthwash and toothpaste in one formula
First gel toothpaste First toothpaste to feature a NASCAR driver on the box Jeff Gordon)
Closeup is the original youth brand of India
The first brand targeting youth in the oral care market, with an edgy and youthful
image which stays relevant till date. Ever since its launch in 1975, Closeup has broken
every rule in the book on how toothpastes should behave! Closeup was the first gel
toothpaste to be launched in India and has led the gel toothpaste segment ever since In
2004, Closeup was re-launched with a bang. And this time it was packed with the power
of Vitamin Fluoride System a powerful mix of Vitamins, Fluoride, Mouthwash and
Micro whiteners, the perfect combination of ingredients for fresher breath and stronger,
whiter teeth. Closeup became the first Gel toothpaste with Fluoride in the Indian Market!
The brand umbrella also includes Closeup Lemon Mint, gel toothpaste with the
whitening benefits of lemon.
B) CLOSE-UP TOOTHPASTE RELAUNCHED:

MUMBAI, May 21, 2004: Hindustan Lever Limited (HLL) has realunched Close-up
with a three-in-one benefit. New Close-up Active Gel now has the Vitamin Fluoride
System, the only such toothpaste in India, which offers triple benefits of fresher breath
and stronger and whiter teeth.
The packaging of new Close-up Active Gel with Vitamin Fluoride System has
been completely changed. It comes with a stand-up cap and a metallic tube. The stand-up
cap makes storage of the tube easier
39

Speaking on the relaunch of Close-up, Mr. Sanjiv Kakkar, HLLs Vice President Oral
Care, said, Close-up was the countrys first gel toothpaste. Close-up was also the
countrys first toothpaste to offer the benefit of fresh breath. In keeping with this tradition
of offering discontinuous benefits, we have once again relaunched Close-up to offer the
best and the most modern mix offering triple benefits through a single toothpaste.
New Close-up will be available at the same price-points -- 150-gm tube at
Rs.42.00, 80-gm at Rs.25 and 40 gm at Rs.12.50. Launched in 1975, Close-up was the
first gel toothpaste in India. It has since then undergone periodic relaunches. The Closeup franchise comprises Close-up Active Gel (red) with Vitamin Fluoride System, the
mother variant, and Close-up Lemon Mint, a transparent gel in a transparent tube and a
window carton. Close-up Lemon Mint had been launched in 2002
C) Advertising Strategy:
The Close Up ad jingle - 'Kya aap Close Up karte hai?' for a while now. The latest
on that front is the slightly different version of the same - 'Kya aap "naya" Close Up
Karte Hai?' And that's not where it ends. Apart from a new television commercial (TVC)
to relaunch the Close Up red gel toothpaste, Hindustan Lever Limited (HLL) is also
looking at a holistic multi media campaign for which innovation will be the buzz word.
For starters, if one logged on to the Yahoo! India, Sify or Indiatimes portals yesterday (4
June), one found a stunning in-your-face red page branded by the new Close Up. The
home pages of these three websites were totally branded by the splashy new Close
If that was not enough, Close Up has also tied up with AXN's Alias. The
connection: Just like the protagonist in Alias - Jennifer Garner - changes her identity time
and again to tackle different situations, the tie up with it signifies that Close Up too has
changed now and is in a brand new avtaar! AXN assistant VP marketing and sales Rohit
Bhandari said, "The basic essence of branding Close Up with Alias was to bring out the
element of change that Close Up has gone through and also to match the change of
identities that Garner goes through in Alias.
40
The revamped Close Up toothpaste

pack
Red's
Jennifer
the
colour-
Garner
in
AXN's Alias
Mindshare Fulcrum (the media planning and buying agency for HLL) business
group head Atit Mehta said, "There was no thematic communication for the Close Up
brand in 2003. Then in January this year, close up came out with the new ad for Close
Up. Now close up have relaunched the brand and the entire packaging has changed. The
communication close up wanted to send out is that if Close Up can change... anything in
the world can change." The agency brainstormed on how to communicate the change
Close Up had undergone. Channels and programmes were identified and a whole lot of
activities are in the pipeline similar to one with AXN. Mehta refused to provide any clue
to what was in store though. Talking about the tie ups with the portals he said, "close up
have made the entire Yahoo! India, Indiatimes and Sify sites red in colour thereby
communicating that Close Up can change your world. Close up also have brand
placement in a Tamil movie Madura which will release in the first week of July."
On Yahoo! India, the Close Up campaign appeared for a day on 4 June and will be
back again next week on 7th, 9th and 11th June. Apart from branding of the entire site for
a day, there will be banners on all three websites mentioned earlier.
On 26 July 2004 Close-Up, one of India's leading toothpaste brands, has tied-up
with Boney Kapoor's forthcoming movie Kyon! Ho Gaya Na, a romantic comedy set for
release in August.
As part of this promotion, Close-Up will not only get
branding opportunities in all the movie promotions and
communications, but also showcase its latest ad before the movie
commences
The Yahoo! India homepage

branded by Close Up on 4
June
41
The
new
revamped
Close Up
D) Close-Up Whitening: HLL plays shade card:

Hindustan Lever Ltd (HLL), which has just relaunched Close-Up Renew as
Close-Up Whitening, says the teeth whitening segment is an investment for the future.
Close-Up first entered the whitening segment with Renew in 1997, with the
strategic intent to strengthen the whitening leg of the architecture. The then advertising
revolved around goodbye yellow, hello white. While it was an initial success in certain
key markets, overall the brand could not register the requisite sales volumes. The
company blames it on market slowdown and to a crop of low-priced toothpastes.
As per estimates, the whitening segment is seen to be rising in developed markets
like the US and Europe, where it is valued at Rs 1,500 crore. This is larger in size as
compared to the total toothpaste market in India.
HLL believes the same would ring true for India too, albeit in the future. In order
to firmly establish the brands credibility with the new relaunch, HLL has leveraged the
power of a shade card as a diagnostic tool. The relaunch idea is to introduce a mix
capable of building a category.
42
Says HLL category head - oral care (personal products) Mr Pradeep Banerjee:
The idea behind the shade card is to empower the consumer as a see-it-yourself kind of
strategy. With the shade card, consumers can and see and believe in promise, thus adding
to the credibility. The strategy behind empowering consumers is also aimed at reducing
trial barriers. By providing a shade card, the company hopes to generate more users into
this niche segment.
Even though the whitening segment is predominantly an urban phenomenon,
research conducted by the company across the rural and urban spectrum revealed that
white teeth rank high on the priority list as compared to other dental qualities. HLL has
thus endeavoured to build this category which, it feels, has a promising future
considering that the research findings peg whiteness as the prime concern among the
consumers, especially youth. At a price of Rs 19 for 50 gm and Rs 49 for 150 gm, CloseUp Whitening comes at a five percent premium to the core categories of toothpastes.
The first phase of the advertising focuses on the relaunch of Renew into
Whitening. The outdoor campaign hinges on the baseline no white lies, just white teeth
and dazzling white teeth in just 4 weeks. The second phase will have a thematic base
which generates awareness among consumers regarding the true shade of their teeth.
Meanwhile, to support the franchise, the company has also rolled out a Close-Up
Whitening toothbrush priced at Rs 35 in a limited geography.The marketshare of CloseUp toothpaste is about 16.5 per cent. HLLs overall toothpaste (Close-Up and Pepsodent)
share stands at 36.1 per cent
E) O&M to handle Close-Up account :
43
HINDUSTAN Lever Ltd has chosen O&M as the agency responsible for the
advertising of Close-Up toothpaste.
O&M will be responsible for the brand only in India while JWT will continue to
be the agency in other countries. Close-up was introduced to the Indian market in the late
1980s.
According to HLL"As the brand looks ahead at future growth opportunities and
evolving aspirations of its target consumers, it is examining all resources, including brand
communication which are integral to its future plans,"
In this context, HLL had asked a select group of advertising agencies to share
their views on the brand's future communication.
Recently, HLL shifted the Rs 50-crore Close-Up account from JWT to Ogilvy &
Mather India (O&M). Its new agency is on the verge of rolling out a new campaign for
the mother brand - Tingly Red. Continuing to position Close-Up as a youth brand, Mr
Pushpinder Singh, Senior Creative Director, O&M, said, "Close Up will remain a youth
brand. But at the end of the day since purchase decisions are always made by the
housewife, it will not be possible to isolate her. Some amount of dichotomy will continue
to straddle the brand JWT
The idea is simple. Consumers will have to fill in some personal details on the
inside of any Close-Up pack. The empty pack could be dropped in at collection boxes
placed at convenient locations in selected cities (or mailed in). A draw of lots will
determine the lucky winners who will be flown to Mumbai to participate in the Sky Pa
Introduced in Brazil, Lemon Mint as a flavour was adapted to Indian taste and
was launched late last year. HLL, for the first time, also decided to innovate in the
44

packaging for the brand and introduced a transparent window to display its lemon mint
variant.
As per ORG-Marg, Close-Up has a 17.5 per cent value share in the Rs 1,400crore toothpaste market. Launched in the late 1980's, Close-Up was HLL's first gel
toothpaste offering. Of late, the brand has been in the limelight due to widespread
speculation about Unilever removing the brand from its portfolio
The biggest markets for Close-Up are in countries like the country, Indonesia and
Nigeria. HLL controls close to 33 per cent of the oral care market in the country with
Close-Up brand estimated to do revenues of Rs 240 crore.
Close-Ups initiative runs under the banner Sky Party With Hrithik Roshan This
is part of a nationwide contest that commenced on February 14, 2001, with a final
scheduled on April 26, 2001.
The contest culminates in Mumbai with a star-studded dinner and an airplane ride
for 30 lucky winners with the famed film star on board. No wonder colleges are abuzz
with toothpaste talk.
4.3 Pepsodent :
A)Introduction:
Pepsodent was launched in 1993 by Hll to capture the market from Colgate.
Launched in the platform of Germ fighting property, Pepsodent now have a marketshare
of 17% in the Rs2200 crore oral care markets
45

Pepsodent have experimented with its positioning althrough its life. Initially
Pepsodent was launched in the highly successful "long lasting protection for hours after
brushing" platform. In 1999-2000 Pepsodent tried to fight the market leader Colgate by
shifting to Benefits of germ fighting rather than Process of germ fighting. But the
positioning failed and Pepsodent had to come back to the old positioning by 2001.
B) Advertising Strategy:
Pepsodent included the germ indicator to its pack in 2002 followed by an
innovative Dental Insurance campaign which reinforced the germ fighting position
HLL was trying hard to break the fort of Colgate which was holding a massive
45- 50% market share in the oral care market.Although Pepsodent and Close Up had
together around 32% of the market , it was not enough. Then came the regional brands
like Ajanta and Babool which really made a dent in the market share of the leaders.
Hll struck back with the famous Dishum dishum campaign (that won many
accolades for the agency). The insight for this campaign was that Mothers were really
worried about the eating habits of their kids. From that insight came the Big Idea let
Pepsodent fight germs for You". The campaign and the smart pricing virtually killed the
regional brands in the oral care market.
Pepsodent knew that they should expand the total market of tooth paste and
decided to increase the market by increasing the usage of the product. Thus came the
Bhoot campaign that is currently on air.
Pepsodent aims to teach the kids to brush at night (with Pepsodent ofcourse)
.Research shows that brushing teeth at night can reduce chances of tooth decay by 30%.
46

If HLL to be believed, 12 lakhs kids are brushing teeth at night now and mothers are
happy
Pepsodent is a brand that has been carefully crafted although it struggled to find
its soul, now the brand is all set to take off.
New Pepsodent, a relaunch of the old Pepsodent G and Pepsodent 2-in-1
promised consumers throughout the length and breadth of the country to do something
which the other toothpaste brands could not do, namely clean more than any other
toothpaste.
It was the advertisements that Hindustan Lever Limited launched that got the goat
of its rival, Colgate-Palmolive: the advertisement promised consumers that it would get
protection form tooth decay at 102 per cent more than any other leading brand in the
country
C) Improving oral care health for over 30 years in Indonesia:

Pepsodent is the oldest and most well-known toothpaste in Indonesia, since the
beginning of its existence has always provided more than just basic efficacy.
Pepsodent was the first toothpaste in Indonesia that launches fluoridated paste back in
1980s and the only paste in Indonesia that actively educates and promotes proper habit of
47

brushing through school program and free dental check up service. Pepsodent has
completed its range product from basic cleaning to complete benefit paste ever since.
D) Pepsodent School Program & Free Dental Check Up:

Pepsodent is the only toothpaste brand in Indonesia that really put its mission into
action. Cooperation with Indonesian Government of Health and Education Departments
and recognized by local dentist association (PDGI), since 1990s Pepsodent has done
School Program which is until 2006 it has reached more than 3.2 million children under
12 years old in all over Indonesia and the number still growing. This program promotes
proper and early habits of brushing teeth to prevent any dental problems, especially
cavities
Pepsodent understand that many parts of Indonesians have dental problems and
also faced with lower ratio of dentist and population itself. That is why Pepsodent Free
Dental
Check Up program is specifically designed to reach these people by giving free
dental treatment & education in fun and approachable way so that with the program, the
whole family can have better oral health and good oral habit. It is also an effort to
encourage Indonesian people to go to dentist regularly as a part of cavity prevention
habit.
E) Pepsodent Night Brushing Campaign:

Habit & Attitude survey has indicated that only about 34 % of Indonesian people
brush their teeth before going to bed. Even from clinical research found that in early
morning bacterial counts are multiplying two times faster at nightthan any other time in
the day.
This implies that bacterial growth increases the most during the night and can
increase possibility of cavity. Recent evidence also supports brushing with fluoride
48

toothpaste before going to bed at night due to its extended protect for a longer time at
night.
That is why Pepsodent feel the need to use Night Brushing as its health campaign
to make Indonesian people brushing their teeth before going to bed at night as a part of
cavity prevention habit.
F) Innovation:
In 2006, Pepsodent have launched & relaunched its complete range variant of
New Pepsodent. Pepsodent Complete 12, which offers a complete benefit but at an
affordable prices. Offering larger benefit for its consumer as a part of its effort to pursue
its mission Pepsodent Sensitive, which offers active ingredient that penetrates through the
teeth to relieve the pain from sensitive nerves inside teeth & gum. Pepsodent Fighter
Toothbrush
By having these new innovations, Pepsodent covers all range of oral health care
for consumers
G) Key facts:
Pepsodent is the leading brand in most Asian Countries with Indonesia and India
as the biggest market
In 2005 Pepsodent is the only one of the toothpaste brand that recognized by FDI,
World Dental Federation in addition to local dentist association (PDGI).
H) Pepsodent in range:
49
Pepsodent Complete + Gum Care
Pepsodent Milk Teeth Orange
Complete 12
Pepsodent Herbal
Pepsodent Milk Teeth Strawberry
Pepsodent, launched in 1993, was the first toothpaste with a unique anti-bacterial
agent to address the consumer need of checking germs even hours after brushing.
Pepsodent packs included a Germ Indicator in February-May 2002, which
allowed consumers to see the efficacy in fighting germs for themselves. As a follow-up,
in October 2002, Pepsodent offered Dental Insurance to all its consumers to demonstrate
the confidence the company has in the technical superiority of the product.
Pepsodent connects directly with kids and their parents. Pepsodent has always
worked in the direction of an overall awareness of dental health. The relaunch campaign
in October 2003 widened the context to "sweet and sticky" food and leveraged the truth
that children do not rinse their mouths every time they eat, demonstrating that this makes
their teeth vulnerable to germ attac. Pepsodent's most recent campaign aims at educating
consumers on the need for germ protection through the night.
Pepsodent is the unique toothpaste that has the combination of both fluoride and
tri-closan. It has been clinically proven that Pepsodent fights germs 1.5 times longer than
ordinary toothpaste. Because of these unique qualities it has become one of the leading
50

brands in Nepal within a short span of 4 years. Pepsodent germicheck formula "Fights
Germs Longer Makes Teeth Stronger". Pepsodent has introduced a range for complete
dental care solutions with these products.
Gel for fresh and original flavor combined with germi check paste makes
brushing fun rather than a chore and teeth stronger
Long Lasting Protection Its advanced Germicheck formula fights germs even
hours after brushing to give superior protection.
Long Lasting Freshness its Germicheck Gel gives lasting freshness
Pepsodent regular is available in following sizes and prices

Pepsodent 30 gms Rs 10/Pepsodent 40 gms Rs 15/Pepsodent 80 gms
Rs 30/-
Pepsodent 200 gms Rs 65/-
51

Healthy teeth require healthy and strong foundation- healthy gums. Pepsodent G
Gum care is the perfect daily use expert gum care toothpastes, clinically proven to give
healthier gums and Reduce gum bleeding significantly. Reduces recurrent gum bleeding
by at least 90% Reduces plaque by 50% even 12 hours after brushing Reduces tartar
formation upto 71% Reduces malodour
for hours after brushing Contains
Fluoride,clinically proven anti-cavity agent Contains 2 powerful anti-bacterial

ingredients for effective plaque control Is the perfect daily use expert toothpaste for
healthy gums and teeth
I) Pepsodent's offer to children:

Hindustan Lever Ltd's (HLL) Pepsodent toothpaste has introduced games at
McDonald's outlets. Gaming kiosks, developed by indiagames.com, a gaming portal,
have been placed at 10 McDonald's outlets -- nine in Mumbai and one in Pune. On
purchase of a McDonald's Happy Meal, children can play computer games at these
booths. `fun' games that highlight killing of germs as a primary requisite. Every child (in
the age group 7-12 years) who visits the McDonald's outlet and buys a Happy Meal will
be entitled to a ticket that allows it to play the games''. Helps get your teeth their whitest.
Special formula that helps prevents unsightly tartar. Helps keep tartar from forming
above gumline when used in an ongoing daily program. Flouride protection to help fight
cavities.
J)HUL launches Pepsodent Kids:

Mumbai, Nov. 16 Hindustan Unilever has entered the kids segment in the
toothpaste category under a new sub-brand Pepsodent Kids. Creating three new
variants under the segment, the FMCG company has brought in Barbie, Superman and
52

Tom & Jerry to entice childrenSporting Pepsodent Kids in a tube format, the product has
been pegged at Rs 45 for 80 gm. However, Colgate, its nearest competitor, has already
entered this segment with a smaller SKU (Rs 22 for 40 gm) with two flavours
In fact, HUL has been steadily expanding its Pepsodent franchise. Early this year,
it launched Pepsodent Centre Fresh, a germ fighting gel with mouthwash. Pepsodent is
positioned as a family health and protection brand, and it makes sense to extend it as a
kids toothpaste, states an industry observer. Considering its nearest competitor Colgate
has already entered this segment, HUL has been adopting a wait-and-watch approach
instead of trying to be a pioneer in this segment. Both HUL and Colgate have introduced
single SKU in the kids segment with their respective brands sporting cartoon characters.
At the same time, HUL has also extended its Close Up franchise by introducing
two new flavours Tangerine Burst and Luscious Lychee both priced at Rs 30 for 80
gm. Positioning its new brands as limited edition in the market, HUL is possibly testing
out their acceptancein the marke
K) Variants:
In fact, the new flavours are being described as Flavalicious by the company on
its packs to signify the different variants it has launched. Meanwhile, Close Up continues
to sport its red gel mother brand along with the existing variants of lemon mint and milk
calcium.
Three years ago, HUL had taken a conscious decision to limit the Close Up
variants and re-launched the mother brand, as it felt that having more sensorial variants
would not work for its gel-based toothpaste brand apart from the heavy media spends
required to promote new variants.
It had removed variants such as Tingly Red, Eucalyptus Blue and even a
whitening toothpaste. According to an analyst at SSKI Securities, The premium end of
the oral care market is almost stagnant. However, HUL consciously wants to build better
margins in this category.
53

According to AC Nielsen for the quarter ending June 2007, HULs has a 30 per
cent value share in the toothpaste category and continues to trail behind the market leader
Colgate (48.5 per cent) According to the Survey with the Sample Size the following data
is Collected.
4.4 Cibaca
A)Introduction;
Dental care major Colgate-Palmolive (India) Ltd's eight-rupee gamble - the
launch of Colgate's Cibaca Top at an affordable price point of Rs 8 - is said to have
worked, with Cibaca Top garnering a 5.9 per cent share of the rural market. "Effectively,
today we (Cibaca Top) have a 5.9 per cent share in the rural market - where it was
virtually one per cent share previously," according to Colgate-Palmolive (India)
managing director Mr Derrick Samue
The marketshare of Cibaca Top at the national level stands at 4.4 per cent. It has
thus emerged as a strong rural player with the price point attracting new users to upgrade
into the category, comment industry analysts.
"We have got in a few new users. Cibaca Top has also cannibalised a little bit on
our other toothpastes. But in the market, it has cannibalised on some of the other low
economy toothpastes," says
Mr Samuel. "East is particularly an economy market, with markets like Bihar
which had a large scale presence of local players. There was local competition, and
company has made a tremendous growth there with Cibaca Top," adds
54

Mr Samuel. Colgate-Palmolive's overall marketshare in the Rs 1,000-crore
toothpaste market has gone up in the October to December quarter to 51.2 per cent in
volume.
The launch of Cibaca Top led to the rejuvenation of the "economy" segment of
the toothpaste market, which falls below the popular segment in terms of pricing. The
company is clear about the fact that Cibaca Top will be the front runner brand in this
segment. In its portfolio hierarchy of brands, Colgate Total and Colgate Sensation
Whitening lead the premium segment, Colgate Fresh Energy Gel is part of the gels
segment, and Colgate Dental Cream and Colgate Herbal fall in the popular segment.
With the per capita consumption of toothpaste in India at an abysmal 82 gm
against Thailand's 262 and US's 518, there is an urgent need to prop up the economy
segment of the market, point out industry analysts. Further, with the rural per capita
consumption in India at a mere 38 gm vis-a-vis 153 gm in the urban market, the market
potential for growth in the economy segment toothpaste brands is huge.
In the year 2000, Colgate revitalized Cibaca which was relaunched nationally in
the economy segment as 'All New Colgate-Cibaca Top. With the launch, Colgate entered
a new price band - the economy segment
B) Salient features of Cibaca Toothpaste:

First economy toothpaste from Colgate Initiative to maintain leadership of the
growing low price segment and capitalize on equity of Colgate Revitalised formulation
for strong teeth and fresh breath. Features Colgate logo on the pack and tube.
55
C) 6 Cibacas steady climb in market share:

Despite relaunches by Anchor & Babool, Cibaca continues to strengthen its
dominance of the Low price point segment in 2006
Ch.5 Case Study Based on Cibaca

The Rs. 2,200-crore toothpaste market (the largest oral care segment), grew a
robust 10 percentin 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.
56
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 growing discount 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,
Cibac 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 In fact Colgate Cibaca is now #2 in some geographies.
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 a
new strategy.
The challenge is to build the brand without cannibalizing Colgate.
57
Conclusion
According to the available information the following conclusions were drawn:
Toothpaste market in Mumbai is mostly capture by Colgate Palmolive (INDIA)
Ltd. The companys main competitor is HLL who had launch toothpaste brands such as
close-up and pepsodent there also some other player in market such as Meswak,
Babool, Anchor, Ajanta but Colgate & HLL offers different flavours.
Since toothpaste is fast moving consumer good the sale of same is showing
increasing trend usage of different type of toothpaste brands are increasing due to
different flavours available according to the age group of consumers.
58
The most consumers prefer colgate as television advertisement specifies that it is

recommended by Indian Dental Association (IDA) and it is good for all age group of
consumers.
The advertisement of close up is attracting attention of youngsters and childrens
and it has enabled to increase sales of close-up.
Recommendations
Company shall improve sale promotion strategy.
Company shall improve R&D facility try to innovate more flavour
New company shall follow existing companys promotion strategy
Company shall improve quality as per guideline provided by IDA
Company shall try to capture rural market in India where many people using
substitute of toothpaste like salt, neem, dentmanjan.
59
Create awareness of advantages of night brushing.
Extra quantity is given irrespective of actual quantity at the same price to attract
more and more consumers.
With the toothpaste you can give tounge cleaner and toothbrush.
For sales promotion activities companies may offer a toothbrush with tounge
cleaner on other side of it which will help the consumers in better usage of
toothbrush.
Bibliography
The information is collected from the following books, journals and report:
Books: Leslie Lazar. Kanuk and Leon G. Schiffman Consumer Behaviour Prentice
Hall of India (Private Limited)
60

Journal: Mrs. Satya Gilani Indian Journal of Marketing
Report: Annual Report of Colgate for year 2006-07
Webliography
www.google.com
www.wikipedia.com
www.toothpastefordinner.com
61
www.colgate.com
www.pepsodent.com
www.closeup.com
www.hll.com
Annexure
62
Questionnaire
Name:
________________________________________________
Age:
__________
Gender: _________
Q1. Which toothpaste your prefer to use the most?
Ans: 1. Colgate
3. Close-up
2. Pepsodent
4. Cibaca
5.Others
Q2. On what basis you are buying toothpaste?

Ans: 1. Advertisement
2. Suggested by dentist
3. Other
Q3.Which toothpaste advertisement influences you the most?

Ans: ___________________________________________________
Q4.Which toothpaste gives you more freshness?
Ans: _____________________________________________________
Q5.On what basis you buy toothpaste?
Ans: 1.Quality
2.Price
63

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_______________________________________Top Five Toothpaste Brands in Mumbai

In India, per capita toothpaste consumption stood at 74g in 2005, which is

_______________________________________Top Five Toothpaste Brands in Mumbai

Introduction Toothpaste Industry

Top Five Toothpaste Brand

Analysis Of Toothpaste Brands

Case study Based on Cibaca

_______________________________________Top Five Toothpaste Brands in Mumbai

Ch.1 Introduction of Toothpaste Industry

1.1 Brief History of Toothpaste

1.2 Industry Overview

_______________________________________Top Five Toothpaste Brands in Mumbai

A) The Toothpaste market

(Table A-2): Toothpaste market in volume (in tones)

(TableA-3): Value - Zone Wise (in Rs. crs.)

(Table A-4): Value - Town Wise (in Rs.crs.)

Metro Class 1 Others

_______________________________________Top Five Toothpaste Brands in Mumbai

B) Long term growth drivers

C) Segments in the Industry

ii) Low Price Point Segment

_______________________________________Top Five Toothpaste Brands in Mumbai

iii) Threats from smaller brands in the low priced segment

_______________________________________Top Five Toothpaste Brands in Mumbai

i) Colgate the dominance continues

_______________________________________Top Five Toothpaste Brands in Mumbai

E-chopal and Disha to further strengthen its distribution

ii) Tremendous brand equity

iii) HLL the challenger

_______________________________________Top Five Toothpaste Brands in Mumbai

Current Brand portfolio: HLL

iv) Dabur Growth through acquisition

1.3 Scope of the Study:

1.4 Objective of Study:

2. To identify the various types of attributes of the toothpaste

_______________________________________Top Five Toothpaste Brands in Mumbai

3. To understand which kind of advertisements are effective for attracting consumers.

1.5 Research Methodology:

Consumers were interviewed between the age group of 15 and above

Center: South Mumbai (Charni Road to Mumbai central)

Sample Size: 128 from Charni Road to Mumbai central

_______________________________________Top Five Toothpaste Brands in Mumbai

C) Limitations of the study

representation of the target market.

Ch.2 Consumer Behaviour

_______________________________________Top Five Toothpaste Brands in Mumbai

psychographics, and behavioural variables in an attempt to understand people's

2.2 Introduction Indian consumer behaviour

2.3Characteristics of the Indian Consumer Behavior

_______________________________________Top Five Toothpaste Brands in Mumbai

2.4 Different segments of Indian consumers

2.5 Increasing Awareness of Indian Consumers

_______________________________________Top Five Toothpaste Brands in Mumbai

2.6 Marketing Strategies

2.7 Changing Trends in Indian Consumer Behaviour

2.8 Consumer Behaviour towards different toothpaste:

_______________________________________Top Five Toothpaste Brands in Mumbai

Ch.3 Top Five Toothpaste Brands

3.1 Colgate Dental Cream

_______________________________________Top Five Toothpaste Brands in Mumbai

3.2 Close-Up Active Gel

3.3 Pepsodent Complete 10

_______________________________________Top Five Toothpaste Brands in Mumbai

3.4 Colgate Cibaca Top