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Colgate to battle Patanjali's Dant Kanti with herbal toothpaste Vedshakti

By Sagar Malviya & Neha Tyagi, ET Bureau | Updated: Aug 01, 2016, 09.43 AM IST
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Cibaca Vedshakti seems to be aimed squarely at the Baba Ramdev led Patanjali, which has challenged the multinational’s
dominance in the segment with its Dant Kanti toothpaste.

MUMBAI: Call it the Ramdev effect. Almost 80 years after Colgate-Palmolive entered the
country, the oral care giant is launching an India-focused brand as Patanjali Ayurved threatens to
upend the established order in fast-moving consumer goods.

Cibaca Vedshakti seems to be aimed squarely at the Baba Ramdev led Patanjali, which has
challenged the multinational's dominance in the segment with its Dant Kanti toothpaste.
While Colgate has been selling herbal variants such as neem and clove in the country, this is the
first indigenous brand in the ayurvedic segment for the $16-billion global giant that controls
more than half the oral care market in India.

by revitalising Active Salt Neem and launching sensitive Clove . the consumer believes strongly in natural ingredients. said in an investor call on Friday."In India. The Indian unit of Colgate. A toothpaste launching this quarter under the Cibaca sub-brand is Colgate Cibaca Vedshakti. senior vice- president at Colgate-Palmolive. responded to this last quarter. "The positioning is a toothpaste packed with the goodness of natural ingredients to help keep dental problems away." There is a growing preference for products that are said to have 'natural' ingredients — these now account for 13-14% of the overall toothpaste market." Bina Thompson. which historically hasn't had a sizeable presence in this segment.

analysts said. Analysts expect Colgate will be able to fight back against local competition despite being a late mover.000-crore company in less than a decade. However. "We worship and respect Vedas like our gods. At the same time. referring to a battle between Hindustan Unilever Ltd and homegrown Nirma in detergents." With Patanjali's rise to a Rs5. Nielsen doesn't track sales at Patanjali's own stores." said Abneesh Roy. these are on the premium front unlike the Colgate product that's in a lower price range. Patanjali's oral care market share has been pegged at nearly 2% in the year ended March. which earlier this year said it had potential to upstage leading consumer product multinationals including Colgate and estimated sales of Dant Kanti toothpaste at Rs450 crore. These products have a combined share of more than 7% of the overall toothpaste market now. This is not a toothpaste but a direct attack on our culture. . we don't use them in our products. Colgate has global experience in natural segment. having acquired Tom's of Maine in the US a decade ago while Colgate Mishvak is present in Turkey. "The only difference is HUL was fighting a price war while Colgate is competing on the product front. MD of Patanjali Ayurved. Patanjali.toothpaste. other MNCs have shifted focus to ayurveda too. suggesting that it wasn't appropriate." said Acharya Balkrishna. about 30% cheaper than Patanjali's Dant Kanti. senior vice president at Edelweiss Securities. however.5 percentage point in market share although it still dominates at 55%. according to industry executives citing market researcher Nielsen's data. Colgate has lost nearly 1.Ayush or jadibooti should have been used instead. Colgate's new toothpaste will be priced at Rs 50 for a 175 gram pack. "Colgate's aggression is reminiscent of the famous Wheel-Nirma war. HUL has relaunched Ayush and acquired Indulekha while L'Oreal launched a hair care range under Garnier Ultra Blends made with natural ingredients. However. Indonesia and elsewhere. objected to the new name. It also has wider reach — Patanjali has products in 2 lakh traditional retail outlets while Colgate has access to more than 5 million stores.

For the first time since it entered the Indian market. . Cibaca Vedshakti seems to be aimed squarely at the Baba Ramdev led Patanjali. According to a report in The Economic Times: Cibaca Vedshakti seems to be aimed squarely at the Baba Ramdev led Patanjali. Herbal Wars: Colgate takes on Patanjali’s Dant Kanti with Vedshakti By Indiaretailing Bureau With Yoga guru-turned-businessman Baba Ramdev’s herbal toothpaste. which has challenged the multinational’s dominance in the segment with its Dant Kanti toothpaste. 2. Dant Kanti successfully edging out competition in the oral care segment in India. Colgate is launching an India- focused product – a herbal toothpaste called Vedshakti. which has challenged the multinational's dominance in the segment with its Dant Kanti toothpaste. toothpaste giant Colgate is rethinking its strategy 80 years after it forayed into India.

this is the first indigenous brand in the Ayurvedic segment for the $16-billion global giant that controls more than half the oral care market in India.000 crore in the last fiscal. valued at Rs 13. Retail experts say that this lower costing of products has put Patanjali Ayurved ahead of other FMCG MNCs. Patanjali Ayurved. Patanjali currently manufactures 444 products including 45 types of cosmetic products and 30 types of food products. has been gaining the edge over FMCG biggies including Oral B. .While Colgate has been selling herbal variants such as neem and clove in the country. which reported a turnover of Rs 5. all made from Ayurveda and natural components.9 billion). whose toothpaste has been edged out of the market because of Patanjali Dant Kanti. 000 crore (US$1. Patanjali products sell like hot cakes since they are cheaper as compared to their MNC alternatives in the market. according to the company. Marico and Dabur. CLSA says Patanjali is the fastest growing fast-moving consumer company in India. In fact. including Oral B.

tooth powder and other oral care products. Among these categories.77 billion company in less than a decade. having access to more than 5 million stores as compared to Patanjali’s products in 0. Backed by Herbal Toothpaste Vedshakti. Colgate is expected to fight back against local competition. Colgate also has a wider reach. the oral care products market in India is projected to grow at a CAGR of over 6% during 2016 – 2021. This unit has a small presence in this segment and their products have a combined share of more than 7% of the overall toothpaste market now.. On the basis of product type. 3. Although Patanjali’s oral care market share is pegged at nearly 2% last year as compared to Colgate which still dominates at 55%. However. despite of being a late mover. “India Oral Care Products Market By Product Type. this new product is the first indigenous brand in ayurvedic segment for the USD16 billion global giant controlling more than half the oral care market in India. 2011 – 2021” . As Patanjali has grown to a USD 0. toothbrush. Few of the leading players operating in the India oral care products market include Colgate-Palmolive (India) Ltd. Colgate Poised to Compete with Patanjali’s Dant Kanti TwitterLinkedIn India: It has been almost 80 years after Colgate-Palmolive entered India. Competition Forecast and Opportunities. The new product is positioned as a toothpaste packed with the goodness of natural ingredients to help keep dental problems away. and the segment is anticipated to maintain its dominance over the next five years as well. According to TechSci Research. which include toothpaste. even after losing 1.5% in market share. the oral care giant is launching an India-focused brand as a result of threat posed by Patanjali Ayurved. . the market has been segmented into five categories. Colgate has global experience in natural segment and has acquired Tom’s of Maine in the US last decade and even Colgate Mishvak is present in Turkey. other MNCs have shifted their focus to Ayurveda too. Indonesia and elsewhere. responded to this by revitalizing Active Salt Neem and launching Clove toothpaste. Dabur India Limited and Patanjali Ayurved. the Indian unit of Colgate. HUL has relaunched Ayush and acquired Indulekha while L’Oreal launched a hair care range under Garnier Ultra Blends made with natural ingredients. Colgate is poised to launch a toothpaste under the Cibaca sub-brand named Cibaca toothpaste.2 million traditional retail outlets. Hindustan Unilever Limited. toothpaste segment dominated the country’s oral care products market in 2015. Though Colgate has been selling herbal variant such as clove & neem in the country. Last quarter. mouthwash. According to a recently published report by TechSci Research. Patanjali has objected to the new name saying it is not appropriate and suggesting names like Ayush or Jadibooti should be used.

2016 While Patanjali Ayurved's annual revenues of Rs 2. has stepped up its game. The personal and oral care giant has launched a new all-herbal and indigenous toothpaste under the Cibaca brand. camphor. Colgate used to warn against Indian traditional ways of using salt & coal on teeth. Substantiating his tweet was a collage of an old Colgate toothpaste ad (1985) carrying the above 'warning' against salt and coal. it actively endorses it".twitter. But now. the product not only has a formulation very Indian.'Colgate Cibaca Vedshakti'. With clove. but also quite an Indian name -. Baba Ramdev Baba Ramdev makes a case for his toothpaste brand by taking a dig at Colgate -. Written. Eucalyptus and Thymol. it read: "Colgate used to warn against Indian traditional ways of using salt and coal on teeth. perhaps. A look at Colgate Cibaca Vedshakti Vs Patanjali Dantkanti. A tweet by Patanjali's Baba Ramdev went viral on social media a couple of days back. the success of its toothpaste brand Dantkanti can be gauged by the fact that an established brand such as Colgate. in anticipation of the launch of Colgate's new all-herbal and indigenous toothpaste 'Colgate Cibaca Vedshakti'.000 (FY '15) crore and Rs 5. the market leader in the toothpaste segment with over 50 per cent share. It appears as though Colgate Palmolive India is feeling the heat of the 'natural' revolution ushered in by Patanjali Ayurved. Patanjali tries to call Colgate's 'bluff' in new ad feat.com/eYywXQpK4P � Swami Ramdev (@yogrishiramdev) August 20.through a new ad and a recent tweet. and is in for an image overhaul. lemon. But now they actively endorse it pic. as well as new ones in which model and actor Lara Dutta can be seen endorsing Colgate's Active Salt and Colgate Total Charcoal Deep Clean toothpaste brands.000 crore (FY '16) are numbers that need to be put in perspective for a layman. basil. arguably to fend off competition by Patanjali Dantkanti. . 4.

Without losing much time. The new product is priced at Rs 50 for a 175 gm pack. Colgate also came up with a print ad for Vedshakti which appeared in Rajasthan Patrika last Monday. but the brand is also running an ad campaign for Dantkanti Advanced on television. Although such flip-flop in strategy on the part of multinational companies trying to model their offerings based on the preferences and cultural sensibilities of different markets is not a novel phenomenon. The tagline was 'Kudrat Ka Saath.a clear reason for Patanjali to be perturbed. . and Rs 75 for the 200 gm pack -. which is available in 100 gm packs of Rs 40. almost 30 per cent cheaper than Patanjali Dantkanti (Regular). Patanjali's passionate 'no-fee brand ambassador' Baba Ramdev seems to be quite unhappy about it. Swastha Aur Surakshit Daant'. In fact. he is not only calling out 'bluff' on a personal medium such as Twitter.

as is the mention of tulsi (Basil). this is not the first time Colgate has been accused of such gimmicks. The brand also drew flak on social media when it launched Colgate Total Charcoal Deep Clean last year with brand ambassador (Lara) Dutta. People cited an old Colgate TVC in which the brand had claimed that charcoal and similar abrasive products can damage tooth enamel. created by Patanjali's agency Vermillion Communications accuses "toothpaste selling multinational corporations" of once perpetrating fear about natural products by dubbing their use as harmful and an uncivilised practice. which is one of the ingredients in Colgate Cibaca Vedshakti. and charcoal variants. The ad appeals to consumers to not fall for their gimmicks and "emotional blackmailing" in the name of salt. Well. choose Dantkanti Advanced. tulsi. The use of red and blue dummy packs in the ad is a clear allusion to Colgate. .The TVC. but instead.

aur daaton ke liye koyla?' when he asks her to get some almond milk and charcoal (koyla). nor the 1985 print ad that Baba Ramdev tweeted are available for reference. badan ke liye doodh-badaam.While neither the above TVC. . the generation that grew up watching Doordarshan during the 1980s will surely remember the Colgate ad. in which a woman taunts her bodybuilder brother-in-law with 'Arre wah Devarji.

The situation is similar this time as well. and Colgate is fielding the unpleasant question with the response in the picture below. .

Dabur's oral care portfolio was clocking double digit growth. it said.7 per cent in March 2016.According to a report by ICICI Securities.2 per cent in 2015 to 55. When Colgate's volume growth had slowed down to a low single digit. Patanjali's entry has disrupted the toothpaste category in India. denting Colgate's market share by approximately 150 basis points from 57. However. a second report by Edelweiss Securities points out that other herbal player Dabur could also have contributed to the decline. .

The above findings are also corroborated by Nielsen's analysis across five prominent personal care categories which indicate that the natural segment now constitutes about a third of total sales. .5 times of non-naturals in India. the latter being targetted at the masses." It was to fend off this competition in the natural segment that Colgate introduced Colgate Sensitive Clove and Colgate Cibaca Vedshakti. "Consumer packaged goods offering basic natural proposition are performing well in the Indian market. shares.Global brands that contribute to 20 per cent of the natural segment are growing in low single digits. senior vice president. Local companies of Indian origin are growing in double digits and are fueling the growth of the segment in the country. Vijay Udasi. and is growing at 2. Nielsen India.

Further. a brand consultancy. Combine Advertising. Patanjali Medicated Gel. and Active Salt Healthy White Toothpaste. informs S K Gupta Tijarawala. . Dantkanti Regular (13 herbs). various reports peg Patanjali's market share at 4.Harish Bijoor. brand expert and CEO. The brand is strong in rural India.3 per cent the same year in urban India. As per the report by ICICI Securities.. Colgate will have an edge over Patanjali. the Indian oral hygiene brand.1 per cent in 2014. calls Colgate's strategy to go completely herbal under the Cibaca brand a good one. Active Salt Neem. Patanjali's Dantkanti claims to have generated business worth Rs 450 crore in the last fiscal (FY '15-'16). the rural population accounts for approximately 35 per cent toothpaste revenue for Colgate Palmolive India.5-5 per cent and Colgate's share in the natural segment. Cibaca. there is still huge opportunity for brands in rural markets where overall toothpaste penetration stood at just 74. and re-launched as the All New Cibaca Top in 2000. Patanjali spokesperson and CEO. Experts believe that given its strong brand equity and a formidable distribution network covering over five million outlets. it may even win the price war. Dantkanti Advanced (26 herbs). The competition is pretty close. where it is present with Colgate Active Salt. It was bought by Colgate in 1994. and Patanjali Junior are available in the market in three lakh outlets. namely. at 7 per cent. "Cibaca and Binaca are two oral care brands that Indians have grown up with. four variants. was originally owned by Ciba Geigy." he says. Harish Bijoor Consults Inc. Currently. as opposed to 92. However. With Cibaca Vedshakti.

CEO. "The MNC bashing that Patanjali has indulged in." According to Sharma. there is a bigger issue as far as the consumer is concerned. Ormax Rhodium. Sharma believes that Baba Ramdev has brought a credible and popular voice of authority to the ayurvedic segment for the first time. but this merely scratches the surface of what it can be. and ex-national head of planning and strategy at Leo Burnett. Sooner than later. is good for a few market share points. he points. while commenting on the brand's strategy. It is the wall of scepticism that traditional or ayurvedic dental products have to scale to be a truly dominant force. as a brand that has momentum on its side and a long-term interest in the growth of Ayurveda. . it's time Patanjali found a higher ground. thus fuelling its growth. Patanjali will realise that for the larger market. has a piece of advice for Patanjali.Rajeev Sharma. But.

) Ayurvedic Impact. Gain Trust. they are releasing their campaign by using of . building brand identity & equity Total Toothpaste market in India :.800 Crore (11% Appx. Overall. Brand Reflect & React: It’s only sole brand Patanjali is influencing that Colgate has launched 3 brands straight away within 1 year which are known as Colgate Sensitive Clove.Herbal Toothpaste Market Strong Brand Power = Market influence. Moreover. Colgate Active Salt with Neem & Colgate Cibaca Vedshakti. 5. Herbal market is growing now & MNC are foraying with herbal brand in order to compete with Patanjali.7500 Crore Total Herbal/Ayurvedic Toothpaste market :. Colgate Cibaca Vedshakti . Threat & Coverage. Connect Consumers.

I have seen the display of total 15 Dant Kanti Toothpaste front side & highly visible directly. it is most challengeable task for Colgate that how to sustain existing consumers because Dant Kanti (Patanjali Brand) has already gain 3 % market from Colgate though Colgate is still leading in the market with 54% according to the market source but overall growth of Colgate is declining. then again I have been visited the same store after a week that surprisingly I found only 3 toothpaste was remaining in display stock. The matter is that how will Colgate compete its 3 herbal toothpaste brands across the market which is categorized into differently since Dant Kanti is growing successfully across the Indian market. Colgate Strong Teeth has been changed in its TVC campaign since 2 years & integrating it more on towards ‘Mother’s Trust’ which ropes into sustaining the brand loyalty & legacy. Now. as he replied that it is very fast and consumers are demanding either by Patanjali Toothpaste or some are directly with Dant Kanti while buying likewise Colgate.Ayurvedic elements or conveying message by using voice over/showing ‘Ayurvedic or Natural’. I have been asked there the sales movement of Dant Kanti Toothpaste in retail market. . Dant Kanti brand effect is highly potential which I have been observed personally when I was buying medicine from one medical store nearby my home. Being a most trustable brand in toothpaste market.

Since Colgate brand is most recognized as ‘solution for cavity’ & now. The campaigns have not been influenced of Colgate Sensitive Clove & Active Salt with Neem which can urge to consumers willingly for buying the same likewise Dant Kanti. The biggest threat for Colgate is to drive & gain repeat consumers for 3 herbal toothpaste brands which is not easy to establish despite of market leader. It must required to more exercise on it because other rival brands are working aggressively and more new brands may foraying into herbal toothpaste market which can give big impact on Colgate market coverage.Strategically a new brand Colgate Cibaca Vedshakti (Brand Extend of Colgate Cibaca) is directly competing with Dant Kanti. . Colgate has required emphasizing more on herbal/Ayurvedic elements to drive the new brands.

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