Colgate is an umbrella brand principally used for oral hygiene products such

as toothpastes, toothbrushes, mouthwashes and dental floss. Manufactured by Colgate-

Palmolive, Colgate oral hygiene products were
first sold by the company in 1873, sixteen years
after the death of the founder, William Colgate.
The small soap and candle business that William
Colgate began in New York City early in the 19th
century is now, more than 200 years later, a truly
global company serving hundreds of millions of
consumers worldwide.

Our 200-year history reflects the strength and innovation that our people have used to
constantly transform our Company and identify new opportunities. With global brands
sold in over 200 countries and territories, Colgate, Speed Stick, Lady Speed Stick,
Palmolive, Ajax, Softsoap and Hill’s pet Nutrition are among the world’s most
recognizable household names, trusted and relied upon by consumers everywhere.

Colgate people, working around the world, share a commitment to our three core
corporate values: Caring, Global Teamwork and Continuous Improvement. These
values are reflected not only in the quality of our products and the reputation of our
Company, but also in our dedication to serving the communities where we do
business. As a leading consumer products company, we are also deeply committed to
advancing technology that can address changing consumer needs throughout the
world. In fact, our goal is to use our technology to create products that will continue to
improve the quality of life for our consumers where they live.

As a successful business, we are focused on achieving the consistent growth required

to continue our global success and to make us an even stronger company. We believe
this is the best way to benefit our consumers, our people and our shareholders.

According to a 2015 report by market research company Kantar Worldpanel, Colgate

is the only brand in the world purchased by more than half of all households. Colgate
has a global market penetration of 67.7% and a global market share of 45%.Despite
this, it maintained the highest growth rate of all brands in the survey, with 40 million
new households purchasing Colgate-branded products in 2014. Its global market
penetration is nearly 50%; higher than the second-placed brand in the study, Coca-
Cola with 43.3% penetration.

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Position

Colgate is the market leader in the oral care segment, holding 56.7 % market share in
toothpaste and 42.4 % in toothbrush (as of January 23, 2015). Colgate’s growth in the
Indian market is attributable to several premium products like Colgate Visible White
and the company’s constant endeavour to launch new products tailored for the Indian
market.
In order to build leadership position in the oral care market in India, Colgate
Palmolive India has neglected its personal products and household care brands giving
other companies like Hindustan Unilever, Dabur etc an opportunity to kill its market
share in those categories.

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Scope and growth

Colgate Palmolive is a worldwide producer and distributor of household, healthcare

and personal care products. It is a global leader in the oral care hygiene market, with a
market share of 42.1% in the global toothpaste market and 32.3% in the manual
toothbrush market. However, the company has had a relatively challenging fiscal 2018
so far, largely due to due to rising commodity costs and volatile exchange rates, in
addition to weak category demand in many key markets. Despite this, the company’s
net sales were up 4% year-over-year (y-o-y) while organic sales grew 1% y-o-y,
largely driven by volume growth of 2% and flat pricing globally in the first half of
fiscal 2018.

Going forward, we expect the company’s growth to be primarily driven by ongoing

innovation in products such as toothpaste and soaps. Accordingly, we expect Colgate-
Palmolive’s revenue to grow by nearly $830 million (2.6% CAGR) through fiscal
2019. To arrive at our fiscal 2019 net revenue estimates for Colgate-Palmolive, we
have broken down the primary revenue streams and projected them separately. We
have also created an interactive dashboard analysis which provides a detailed analysis
of what will drive Colgate-Palmolive’s near-term growth. You can make changes to
these variables to arrive at your own revenue estimates for the company. We have a
$68 price estimate for Colgate-Palmolive, which is about in line with the current
market price.

Colgate expects higher estimated freight and logistics costs, increased competitive
activity and a slowdown in growth in some markets to impact the company. However,
colgate expects the company’s Funding The Growth initiative to help offset some of
the high raw material inflation. Further, also expect Colgate’s revenues to be driven
by population growth, particularly in emerging markets. The company still has room
to grow in emerging markets such as China and India, primarily due to low
penetration of its category products in these regions and the likely increase in the
consumption of its products with economic development.

It is expected Colgate-Palmolive to generate around 16.2 billion in revenues in 2019

and earnings of around $2.5 billion. Of the total expected revenues in 2019, forecast
$7.4 billion to come from the Colgate’s Oral Care business, nearly $3 billion for the
Personal Care business, around $3.5 billion in the Home Care business, and nearly
$2.4 billion for Hill’s Pet Nutrition.

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Market segmentation

The global toothpaste market is segmented on the basis of its type, distribution
channel, and regional demand. Based on its type, the market can be bifurcated into
whitening, sensitivity, smokers, herbal, children€™s, and others. Two most important
distribution channels mentioned in the report include non-store-based and store-based.
major players in the market.

Segmentation is a marketing strategy which consist of dividing the market in smaller

groups allowing the research of categories of consumers presenting a set of
homogeneous needs. Or more simply it’s the practice of separating the total market
into a number of minor or similar submarkets designated market segments.” (Daniels,
1995 Essentials of Marketing, P.261,)

There are many ways or factors which organisations may use to segment the market.
Some of the factors widely used are;

Types of segmentation

• Demographic segmentation, which consider the number of people living

in a particular area at a particular time, the climate and the size of the
population as well.
• Economic segmentation considers the income level of the target market.
As a matter of fact, I won’t describe the economic segmentation of
Colgate Palmolive products because the prices depend on each country
and their level of incomes.

• Psychographic and behavioural segmentation focuses on groups of

people who have similar buying behaviours, believes, styles, attitudes,
personality, religion and the opportunity to purchase or use and their
fidelity to the brand rate (Isaacson,2012)

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 Segmenting Consumer Markets:
variables or predictors of differences
Consumer segmentation

Behavioural Psychographic Profile

Benefits sought Lifestyle Demographic

Purchase occasion Personality Socio-economic

Purchase behaviour Geographic

Usage

Perceptions and beliefs

Major Players

1. Procter & Gamble

2. Unilever
3. GlaxoSmithKline PLC
4. Lion Corporation

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Hindustan Unilever Pepsodent:
Pepsodent has been owned by Unilever since 1942, except in the United States and
Canada. It was a very popular brand before the mid-1950s, but its makers were slow
to add fluoride to its formula to counter the rise of other highly promoted brands such
as Crest and Gleem toothpaste by Procter & Gamble,
and Colgate's eponymous product; sales of Pepsodent subsequently plummeted.
Today Pepsodent is a “value brand” marketed primarily in discount stores and retails
for roughly half the price of similarly sized tubes of Crest or of Colgate. Its best-
known slogan was “You'll wonder where the yellow went / when you brush your teeth
with Pepsodent!”.
Segmentation targeting and positioning in the Marketing strategy of Pepsodent:
Geographically Pepsodent targets Rural and Urban areas.
For behavioural segmentation, the brand offers from normal use to whitening to
complete care segment products. With variants such as Pepsodent kids, Pepsodent G
and Pepsodent Milk Teeth Strawberry targets from a wide range
of demographic segmentation. Pepsodent believes in Selective specialization with
Pepsodent Kids for kids, smaller and cheaper variants meant for rural market and
Pepsodent complete for the Urban educated class.
Pepsodent all through its life has experimented with its positioning with various ad
campaigns like:
• Germ Fighting Campaign
• Dental Insurance
• Bhoot Campaign
• Lasting Protection for hours
The inclusion of a germ indicator with a pack of Pepsodent and with campaigns like
Dishum Dishum and let Pepsodent fight germs for you, the brand targeted mothers
who were really worried about the eating habits of their kids.

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Marketing analysis in the Marketing strategy of Pepsodent:
With the launch of Patanjali Dant Kanti in recent years, oral care market has seen
a great amount of disruption with the share of HUL in Indian market falling over the
years starting from 22.8% in 2013 to 18.8% in 2017. Coalgate Palmolive in these
years has seen steepest fall with a fall from 57% market share to 53% in 2017.
Also, brand loyalty for Pepsodent seems to have taken a hit with ayurvedic toothpaste
market soaring over the years and becoming most preferred toothpaste rural as well as
the urban crowd.
Customer analysis of Pepsodent:
Customers for Pepsodent ranges from kids under 5 to adults over 70 which the brand
makes possible with this diverse range of products from Germicheck, Gum Care to
Pepsodent kids available in various flavours meant for children between 2-6 years.
With its products available in as small as Rs. 5 tubes for the lower middle class to as
much as Rs. 80 packs for upper strata of the society.
Thus, with its offering, the brand caters to various age groups across boundaries and
across income levels.

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PATANJALI- DANT KANTI:
Patanjali Ayurved Limited is an Indian consumer goods company. Manufacturing
units and headquarters are located in the industrial area
of Haridwar, Uttarakhand while the registered office is located at Delhi. The company
manufactures mineral and herbal products
Patanjali Dant Kanti Toothpaste is herbal toothpaste containing herbs and some
ayurvedic ingredients. Due to a shift in consumer preference toward herbal or
ayurvedic toothpastes, both Colgate and Hindustan Unilever have lost market share. In
addition, Quartz India noted, Patanjali chief Baba Ramdev’s yogi credentials and
nationalist rhetoric have helped the overall FMCG business in raking in revenues of
US$1.6bn in 2016-17.

Currently, herbal/ayurvedic toothpastes constitute approximately 20% of the total

market. Ten years ago, that figure was zero, but with development of new formulas by
both Patanjali and Dabur – which together make up more than 80% of the
herbal/ayurvedic market – growth has been significant and concentrated. Now, market
leaders Colgate (53% total market share) and HUL (17% market share) have released
their own offerings in this segment. However, in a market that touches 90% of all
Indian households, the real fight may be one of price. Patanjali’s Dant Kanti costs
significantly less than similar offerings from both Colgate and HUL. The rise of
Patanjali has been fascinating to watch. Since its inception, the brand has aggressively
courted low-income Indians outside of metro areas to grow its market share, with
competitive pricing and a traditional media strategy.

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GlaxoSmithKline:
Sensodyne is a brand of toothpaste that was first sold by Black Dog, a
Brooklyn, New York based-company established in 1907 by Alexander Block.
By 1925, manufacturing dental care products had become the company’s focus.
Leonard N. Block followed his father into the family business which relocated
to Jersey City, New Jersey, in 1938. In 2000, Block Drug was purchased by
Smith Kline Beecham P.L.C., which became GlaxoSmithKline. The toothpaste
was first marketed in 1961 as a desensitising toothpaste based on a strontium
chloride formulation. In 1980, Sensodyne launched a new toothpaste
containing potassium nitrate, a mild local sedative.
Sensodyne Marketing Mix Strategy:
Product:
The product strategy and mix in Sensodyne marketing strategy can be explained
as follows:
Sensodyne is one of the top tooth care brands in the world. The main offerings
of Sensodyne as a part of its marketing mix product portfolio are toothpaste and
mouthwash. The idea behind creating them is to provide relief against the pain
after having something hot or cold. This is their point of differentiation from
other products. Their products have chemicals like Potassium Nitrate and
Stannous Fluoride which reduces the effect of pain. Apart from this, now they
have started selling toothbrushes specializing in sensitivity. Sensodyne products
come in many variants like deep clean, whitening, repair and rapid relief. It has
created a $1bn brand equity with 20% market share in the American market.
The packaging is done in order to give a premium feel of the product. Quantity-
wise toothpaste is sold in three variants of 40gm, 70gm and 130gm.
Price:
The prices of Sensodyne are kept at a premium range. In India, the prices for a
particular weight is may vary to Rs 5-10 depending on the variant for
toothpaste. To penetrate in the market, high prices with good promotional
activities and marketing strategies was adopted. The prices of mouth fresh and
toothbrushes are also kept at the premium segment to attract the middle and
upper-class people.
Place:
For Sensodyne, dentists not only played a key role in advertisements but also
helped in distribution. They used to recommend the product and the product can
be found in the nearby medical store. Sensodyne used the distribution network
of their parent company GSK which has a wide network. The product can now
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be found in small towns to large cities, from small medical shops to large retail
shops.
Promotion:
Sensodyne needed good promotional strategy otherwise it may fail miserably.
To penetrate in the market, it needs to educate the consumers about dental
condition and to let them know that its treatable. It has done so by running
advertisements of real dentists describing the problem. It also asked dentist to
try their products so they would recommend them to their patients. Sensodyne
has a very successful promotional campaign due to which the market share grew
manifold. On its site, it provides free check-up for sensation which attract
consumers. It tells them the causes, symptoms and treatment of the condition.
To validate their claims, customer reviews have been put up on the site. Hence
this concludes the marketing mix of Sensodyne.
How Sensodyne checked Colgate from capturing market:
Sensodyne’s domination of the Rs 600 crore sensitive category in the toothpaste
market begins with, of all things, cold water. At the time of its launch in 2011
awareness of sensitive teeth as a problem was minimal. Market leader Colgate
dominated (and continues to dominate the overall toothpaste market with a
staggering 56% share.) It had a sensitive teeth variant but made no special
attempt to push it. The team at Sensodyne realised this was a problem that
would take a lot more than a TV commercial to crack. The solution they used
were chill tests where people were invited to take a sip from a glass of cold
water to see if they felt a short sharp pain in their teeth. Sensodyne ran 50000 of
these in the year of its launch and as of June 2014, the number stands at a
staggering 5 lakhs.

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