CASE STUDY OF COLGATE

Abstract :

The caselet throws light on the innovative media strategy adopted by

HLL for the re-launch of its toothpaste brand colgate. The caselet

describes the media mix used for the new marketing communication

campaign by HLL. The caselet also provides an overview of the earlier

communications initiatives undertaken by HLL for colgate. The Indian

toothpaste market and its characteristics are also touched upon in this

caselet.

Issues:

  » Media strategy of Indian FMCG companies

  » Importance of the Internet as a communication

medium in the media mix of a company

  » Indian tooth paste market

Introduction:

The Indian toothpaste market is estimated at

around Rs 14 bn with Hindustan Lever (HLL)

having a market share of 35.8%. Colgate (14.6%)

and Pepsodent (10.2%) are the major brands for

the company (ACNielsen-ORG Marg 2004).

Colgate was launched in 1979 . Since the late

1993s the brand has witnessed a decline in market

share, mainly due to the stagnation in the

toothpaste gel market since 2001.

Increased competition from Colgate and low-end players like Anchor

and Ajanta was another reason for the brand’s poor showing. Besides,

the oral care category itself declined, with toothpastes witnessing a 12.5

percent drop and toothpowders, an 8 percent fall (ACNielsen Retail

Audit2003).

HLL made several attempts to give a boost to the sagging sales of

Colgate . In the early 2002s, the company launched many variants

including Ultra Whitening, Oxy Fresh, and Eucalyptus Blue along with

the mother brand -- Tingly Red. In January 2004, the Tingly salt

toothpaste was promoted through an ad campaign with the jingle “Kya

aap Colgate karte hain?”. However, this move did not yield the desired

results. In June 2004, HLL decided to restructure colgate brand portfolio

by dropping the variants and restricting it to the mother brand -- Tingly

salt -- and a single variant Lemon Mint.

QUESTIONS:

1)What is the organization strength and weakness?

ANS:Our strength is that we are providing differtent flavours in toothpaste at lo

price.And our weakness is our competitors which are providing different gel

toothpaste.

2)who was the firm competitors?

ANS:Close up, Oral B,Sparkle,

3)What is the firm most external opportunity and threat?

ANS:We can advertise our product freely,and threat govt policies,sale tax.