TOPIC: STP & MARKETING MIX OF COLGATE TOOTHPASTE

CLASS: PGPBM 2009 11 SECTION: B GROUP MEMBERS: Ankit Dugar Alolika Dutta Kamalika Mandal Soumali Banerjee

INTRODUCTION
Colgate-Palmolive Company is an American 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. The company's corporate offices are on Park Avenue in New York City, across from the Waldorf Astoria. In India, it operates under the name as ColgatePalmolive (India) Limited and its head office is at Mumbai.

the current name. In 1928. himself a soap and candle maker. .Peet Company. soap. Palmolive . opened up a starch. the company was renamed as ³Colgate & Company´.« contd. After his death.Peet bought the Colgate Company to create the Colgate ± Palmolive . William Colgate.Palmolive Company". and candle factory on Dutch Street in New York City under the name of "William Colgate & Company". In 1953 "Peet" was dropped from the title. leaving only "Colgate . 1806.

and pet care products. as well as the license of the Ajax brand for laundry detergents in the U. Colgate sold the underperforming brands Fab. In 2006. Dynamo. Cold Power and Fresh Start. Colgate-Palmolive announced the intended acquisition of Tom's of Maine. to Phoenix Brands. In 2005. Tom's of Maine was founded by Tom Chappell in 1970. for US $100M. LLC as part of their plan to focus on their higher margin oral. Canada and Puerto Rico.S. the world's largest soap and detergent maker. personal. ABC. a leading maker of natural toothpaste.« contd. . Colgate-Palmolive has long been in fierce competition with Procter & Gamble. Arctic Power.

This product targets the hygiene conscious customers and also the patients who are suffering from serious teeth and gum problems.SEGMENTATION Colgate toothpaste products can be divided into segments catering to the needs of the consumers. . provide effective relief from pain of sensitive teeth and gently whitens the gums. COLGATE SENSITIVE: This product prevents nerve ends. The following is the basic way of segmenting the toothpaste products:  COLGATE DENTAL CREAM: It helps cleaning breath and guards teeth from tooth decay. reduce formation of plaque and tartar above gum line. Focus of this product is upon the hygiene conscious consumers and patients who are suffering from gum problems. This is for the general people and for family use. COLGATE TOTAL 12: This product of Colgate has decay preventing dentifrice. prevents gingivitis. This is especially helpful for protecting teeth enamel and all round protection of teeth.

This product is specially designed for the kids. This product targets the young generation who prefers freshness. COLGATE KIDS TOOTHPASTE: This product helps to prevent tooth decay of the kids. . This product specially targets the young generation who avoids bad breath and inculcate the word ³freshness´. COLGATE MAX FRESH: The gel properties of this product of Colgate gives freshness along with protection. COLGATE FRESH ENERGY GEL: This product of Colgate has the freshness which gives freshness and energy to the user and helps to avoid bad breath.« contd.

COLGATE ACTIVE SALT: This product is popularly known as everyday family toothpaste.« contd. COLGATE HERBAL: This product contains herbal ingredients for white teeth and freshness which removes bad breath and removes plaque. basically. the rural and township areas with low per capita income as well as urban areas. The product is designed for individuals who trust natural element like salt as a tooth care ingredient. COLGATE CIBACA FAMILY: This product is designed as a complete family dental cream. This product is designed for the people who believe in ayurvedic products and avoid using strong chemicals. . combined with minty taste with a dash of salt for a unique brushing experience. The product targets all age groups and all types of consumers.

seems to target the youth. urban people who brush their teeth twice. Colgate Total 12 claims to provide a 12-hour protection from germs. Colgate Kids toothpaste is clearly. The advertisements and packing of the toothpaste further suggests that it is meant specifically for the smaller kids. this variety of Colgate toothpaste is targeted at the educated. as even the name suggests. Being one of the oldest varieties of toothpaste. Hence. the Colgate Dental Cream has been marketed as a synonym for toothpaste. targeted at kids. Colgate Max Fresh. with its multiple flavours.TARGET MARKETS Colgate has the whole toothpaste market as its target market. It also associate brands like iPod and sports like Kayaking with it through the means of gifts / prizes which further enforces the belief that Colgate Max Fresh is for the youth. .

healthy gums. Colgate Herbal targets the traditional and the naturalist market which is pretty apparent from the name as well as the tagline ³Strong teeth. . Its sleek toothpaste cover and the picture of a young couple on it unambiguously emphasize this point. naturally´ and the use of squirrel as the central character in its advertisements. The target market is basically the rural and township areas with low per capita income as well as urban areas. Colgate Active Salt toothpaste targets customers with orthodox thinking who believe that salt is good for teeth. Colgate Advanced Whitening specifically targets people with plague problems as the toothpaste claims to provide whiter teeth within 14 days.«contd. Colgate Cibaca is a product for the economy segment. Colgate Fresh Energy Gel is clearly aimed at the youth.

It also tries to position itself higher in terms of reliability of its claims by telling the consumers that its formula is a patented one and the toothpaste is the most recommended one by the dentists. with competition from indigenous ³vegetarian´ toothpastes. Colgate Dental Cream has also positioned itself as an ³always 100% vegetarian´ toothpaste.POSITIONING Colgate Dental Cream positions itself as toothpaste that has the necessary calcium and minerals to provide decay protection. clearly aims to position the Dental Cream as a toothpaste that has been used over generations and hence creating a kind of emotional attachment with the toothpaste. Lately. Colgate Total 12 have been projected as the ³most advanced toothpaste´ that provides 12 hour germ protection even after eating and drinking by building a protective shield around the teeth. The tagline ³A new dimension of freshness´ brings home this very point. Colgate Max Fresh positions itself on the basis of ³freshness´. ³Trusted by generations to make teeth stronger´. The tagline of is advertisements. strong teeth. germ protection and fresher breath. Colgate Kids Toothpaste tries to position itself based on emotions which is apparent in its tagline ³Makes fighting cavities fun´. .

It positions itself as a ³gel´ (note that here it tries to differentiate itself from a toothpaste) for fresh breath and strong / white teeth. Colgate Advanced Whitening toothpaste has a very unique positioning as it is very focused on specific attributes like restoring natural whiteness. being herbal. i. preventing stains from adhering and fighting plague. . The Colgate Cibaca Family Protection toothpaste positions itself in a very standard way by claiming to provide strong teeth and fresh breath.«contd. Colgate Fresh Energy Gel. Colgate Herbal positions itself based on basically only one attribute. The emotional positioning of Colgate Fresh Energy Gel is implicit by the way of the photo of the couple on the toothpaste pack and in the advertisements. It obviously wants to strike a chord with the young.e. as the name itself suggests. It also provides the names of familiar cartoon characters like Tweety and Bugs Bunny to the various flavors that it markets and hence associating the tastes with the feelings of kids towards these cartoon characters. basis its marketing strategy on the toothpaste providing ³freshness´. couples of the country. The Colgate Active Salt toothpaste positions itself alongside the other toothpastes that claim to fight gums and result in healthy gums and teeth. and also the budding.

MARKETING MIX OF COLGATE : PRODUCT PRICE PLACE PROMOTION .

THE PRODUCT Various Brands of Colgate toothpaste are as follows: Colgate Dental Cream Colgate Total 12 Colgate Sensitive Colgate Max Fresh Colgate Kids Toothpaste Colgate Fresh Energy Gel Colgate Herbal Colgate Cibaca Family Protection Colgate Active Salt .

VARIOUS TYPES COLGATE TOOTHPASTE .

No. 100 gram±Rs. 58/100 gram±Rs.PRICE Sl. 50 gram±Rs. 62/100 gram±Rs. 5/-. 15/-. 17/. 10/-. 50/. 9. 29/.and 200 gram±Rs. 1. 14/-.and 200 gram±Rs. 54/50 gram±Rs. 7. 40 gram±Rs. 3. 29/. 54/- . 30/. 100 gram±Rs. 48/50 gram±Rs.and 200 gram±Rs. 4. 58/150 gram±Rs. 27/100 gram±Rs. 5. 10/-. 50/150 gram±Rs. 32/. 2. PRODUCT Colgate Dental Cream Colgate 12 Colgate Sensitive Colgate Max Fresh Colgate Kids Toothpaste Colgate Fresh Energy Gel Colgate Herbal Colgate Cibaca Family Protection Colgate Active Salt PRICE 20 gram±Rs.(Both Blue and Green Flavours) 150 gram±Rs. 6. 100 gram±Rs. 8.and 200 gram±Rs.and 200 gram±Rs.

All the products are available in the all-India market. supermarkets. . The small tubes of Colgate are also available in small road-side shops and from the vendors. It is well-distributed through the supply chain of company distributors to wholesalers to retailers to final consumers. cooperative stores. Kirana stores.. But the various varieties of Colgate are not so easily available other than in the oral care outlets or super markets. medical shops. including semi-urban and rural markets which are their primary focus areas. etc.PLACE Colgate is sold over almost all the retail outlets of India viz.

instead of giving away product samples. even if they have collected the samples.PROMOTION Colgate normally gives out small product samples at annual events like ³Oral Health month´ to remind target consumers. This method does not drive strong results as most consumers tend to forget the message. This simple message effectively reminded consumers to brush their teeth. Once consumers are done the message printed on the tip of the stick shaped like a toothbrush reveals ³Don¶t forget´ with the Colgate logo. . especially kids to take better care of their teeth after eating sweets. Ice cream and cotton candy were given out. Now. The stick carrying the ice cream and cotton candy carries a hidden message.

Advertising of Colgate products is basically done through television commercials. apart from possible recommendation by the shopkeeper. Colgate is the 2nd most widely distributed product in the country. Virendar Sehwag.«contd. Famous personalities like Sunny Deol. The company¶s distribution network covers 940 direct accounts and 3. etc. . had been associated with this brand in past for a quite a long time. The company is tying up with initiatives like EChoupal and Disha to further strengthen its distribution network. Sales promotion is not done at the retailer level.8 million retail outlets. Viveik Oberoi. The company has backed its products with a very strong distribution network. Over the years. Colgate has been able to develop strong brand equity. It has been voted the ³The Most Trusted Brand´ in the country for 3 consecutive years in the AC Nielsen Brand Equity Survey.

Although. urban per capita consumption is 153 gms whereas rural consumption is a mere 38 gms.CRITICAL ANALYSIS (SWOT ANALYSIS) The potential As per estimates. In India. . expansion in rural areas requires huge investments. 12. it is a market that cannot be overlooked and has huge potential. only a small portion of region has been tapped. Currently.2% of the total world population lives in rural India.

posing a stiff challenge to Colgate. 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. whereas Pepsodent is firmly entrenched on the family health platform with variants catering to oral health.Competition The company has been facing immense competition from organised as well as unorganised players. 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. Close Up addresses the youth with new benefits and value-driven propositions. . HLL renewed focus on its other brand Pepsodent to help it protect its turf. However as the novelty of gel toothpastes wore off. Its gel toothpaste. Close-Up helped HLL become the second largest paste brand. Both Close Up and Pepsodent have a combined market share of 30% The current brands offer distinct propositions.

which cannot go below a certain point. This is evident as new launches by the parent in India have been much lower than other markets. In conclusion. which do not have a large potential market in India. . which accounts for 94% of its sales and 98% of its profits. A large part of the company's product folio consists of premium products. The company has been able to increase its margins by continuously cutting advertising expenses. the company is likely to see continued bottom line expansion over the next one year owing to tax benefits and operating leverage but revenue growth will remain challenging. Colgate cut prices of its products. Colgate is not among our top picks in the FMCG space.Concerns The company has high reliance on a single category (Oral Care). As of now. owing to its single product dependence.

this means that only 200 million of our 740 million rural population use toothpaste. which is amongst the lowest in the world. oral hygiene in India may receive a fresh lease of life. With the huge consumer base waiting to be tapped and the expected rise in purchasing power as the economy picks up. 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. Toothpaste enjoys a country wide penetration level of 50%. with the majority of the population still not having access to modern dental care but relying on substances like coal ash and neem sticks. As the penetration level of the rural segment is at a low of 30 percent. compared to 350g and 300g in Malaysia and Vietnam respectively. per capita toothpaste consumption stood at 74g in 2005.CONCLUSION India is still a nascent country in dental hygiene.

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