ORAL CARE INDUSTRY ANALYSIS
TRENDS IN THE INDUSTRY
Oral care market size projection
Market size (2017) Market size forecast (2022)
123,3 billion INR 181.2 billion INR
Key reasons for slowdown since last few quarters
Reduction in market share of Coral since
Siddha captured its market share
Reduction in trade spends by 0.79% in
Apr-Jun quarter as compared to same
quarter in previous year even though the
sales have increased
Short term actions to turnaround current year
growth
Bundling of current products
Bundle Cavity Protection along with Expert Sensitive
to improve sales of latter
Use lower price SKUs to neutralize price competition
Launch smaller size SKU for Cavity Protection at a
lower price to tackle price competition from Siddha
and gain adoption by lower income groups
Collaborate with dentists for Expert Sensitive &
Whitening variant
Credibility of dentists can be leveraged to improve
sales by marketing the product as approved by
dentists & by providing sample packs to dentists to
provide to their patients
Find an optimum balance between trade and
marketing spends
The balance will ensure there is enough marketing
activities to create awareness of product and
optimum trade spends to push the product at the
sales point
Demand for Natural products due to rising health
consciousness, projected CAGR - 20%
Niche demand for Mouthwash and Dental Floss to
continue with double digit CAGR, market leader - Coral
(50% share)
Consumers awareness set to drive revenues through
events & promotions - especially in non-urban areas
Innovative value-added products being introduced due to
increasing disposible income of people
Decrease in share of voice of coral
indicating lower frequency, reach and ad
ratings
Price cutting by Siddha in all products
by almost 10%
Long term actions to fix portfolio issues
Leverage leader opportunities in mouthwash
and dental floss category
Since Coral has a market share of 50% in this category,
leverage this to improve sales in metros to increase
adoption by consumers and grow the category as a
whole
Expansion into Tier 2 & 3 cities
Expand into new market opportunities through
awareness programs and set up of dental camps in
these cities
Launch innovative products in natural category
Natural variants for plaque removal, gum diseases,
sensitive tooth, flavored toothpastes for kids in order
to tap the segment that is inclined towards natural
products
Divide portfolio into affordable & premium
category products
Affordable range will be priced at market average &
will be targeted at lower income groups with premium
category for the richer customers who visit dentists
regularly
 ENTERING A NEW SEGMENT

WHITE SPACE OPPORTUNITIES

1. Natural category for toothpastes We suggest foraying into natural

2. Flavoured toothpastes for children category, chewing gum & toothbrush
3. Chewing gum with teeth whitening characteristics segment in the long term with
4. Normal and electric toothbrushes priority on natural category
5. Activated charcoal toothpastes

Why expand into a new segment? New brand or new variant?

• Coral currently has strong cash flows for expansion
• Oral care of Coral India is not growing at the same
pace as market, a need for newer products in
portfolio
• Cutting price would be a short-term solution & in
the long run it will be difficult to compete with the
growing natural segment
• Competition has been innovating & providing
products with newer features
Launch variants in existing brand
• By building a portfolio of variants like Herbal,
Active Salt, Total, Activated Charcoal will allow to
cater to all customer needs
• New brand will result in confusion for customer as
choosing between brands becomes difficult
• Resources required to launch a new brand is costly
and time-consuming
• Variants will allow capturing of sales from
competition

BRAND ARCHITECTURE OF CORAL

CORAL

For every
dental need

Health variants Natural Cosmetic

- Cavity variants - variants -
Protection, Herbal, Active Whitening,
Sensitive Salt, Charcoal Freshness

PRICING STRATEGY

Pricing for Natural Variants

• Price Cavity protection at a lower price to
capture the market (current price is over and Cost-plus pricing
above cost & hence this can be done) Price
Index – 93, Maintain pricing of Sensitive
variant Current Making Costs 38.8
• Cosmetic variants can be priced premium as
Markup 35%
the customer base needs the product for Price of product 52.38
aesthetic purposes and will be willing to
spend more Price Index – 128
Price of product to be set at 53 INR rupees that will be
equivalent to a price index of 97-99
• Natural Variants priced in the affordable
(Current mark-up assumed to be 40% from P&L Statement)
segment, Price Index – 97-99
 MAKE VS BUY?

Without investment in additional capacities

Freight costs have been excluded for comparison purposes Capacity utilization Cost per unit
Cost per unit (Rs) 86% 35.94
Direct material 15.2 88% 35.47
Direct labour 7.8 90% 35.02
Variable overheads 4.6 92% 34.59
Depreciation 3.4 94% 34.17
Fixed cost 4.7 96% 33.78
98% 33.40
Total cost per unit 35.7
100% 33.04
Traditional Costing
TOC based Costing
• Direct material, direct labour, variable overheads, • Fixed cost, direct labour, overheads, depreciation
depreciation per unit remains the same per unit decreases with increase in capacity
• Direct material per unit remains the same
With investment in additional capacities
Cost per unit (Rs) Capacity utilization Per unit price
Direct material 15.2 86% 36.76
Direct labour 7.8 88% 36.27
Variable overheads 4.6 90% 35.80
Depreciation 3.7 92% 35.35
Fixed cost 4.5 94% 34.92
96% 34.51
Total cost per unit 35.8 98% 34.12
100% 33.74
Traditional Costing
TOC based Costing
Even though making in-house costs more than outsourcing the manufacturing, we suggest
manufacturing in-house as costs decrease with increase in capacity & current manufacturing also costs
the same. In addition, in-house manufacturing will allow them to alter the processes for innovative
products, alter production plans as per the demand and ensure quality of product

MARKETING STRATEGY FOR THE NATURAL VARIANTS

2-pronged strategy:
1. Improving the brand health
2. Focusing on Trade Marketing & Distribution
Leverage strong distribution network
Incentives to salesmen:
1. Per outlet addition – Rs. 10 per outlet
2. Repeat billing incentive – Rs. 40 per quarter per
outlet
3. Top Outlet Bonus – top 5% outlets
Incentives to retailers:
1. Stocking Bonus – 12% of total stores
2. Visibility Payout – 2% to top 15% outlets

Collaborate with dentists to push the

Rope in Disha Patani as product to the patient and also advertise
brand ambassador for the product as recommended by dentists
Tier 1 and 2 cities as
she is trendy and a
Target Tier 2 & 3 cities through BTL promotional
fitness freak
activities – dental camps, sampling, awareness
drives, collaboration with schools