IBS Hyderabad

Academic Year – 2020-21

MARKETING MANAGEMENT II
Semester II
Course Faculty: Dr. Anish Yousaf (-E009)
Group Project: Brand Equity Measurement using BAV Model

Student Name (Registration Number) Brands Selected

RUBBLE BAGRI (19BSPHH01C0960) COLGATE TOOTHPASTE
SUPARNA PANIGRAHI (19BSPHH01C1266) PEPSODENT TOOTHPASTE
MANAS VYAS (19BSPHH01C0592) DABUR TOOTHPASTE
NIDHI TAUNK (19BSPHH01C)
PURVA MONGA (19BSPHH01C)

Learning Outcomes from this Group Project Task: Through this project we learned about Brand
Asset Valuation Model and the practical positioning and status of the different brands in the FMCG
industry taken by us. Also, by applying the different concepts like market penetration and market
diversity we learned about how brand strength and stature help a brand change its strategy We also
learned how to analyze responses in excel and also how these brand use strategy as per the its market
postion.

Declaration:
We declare that this assignment is our work and we have not copied it from any other student’s work or
from any other source except where due acknowledgement is made.

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement

For Course Instructor’s use only:

Marks Obtained: Max. Marks: …………………………

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INTRODUCTION

The history of toothpaste can be tracked back in year 1975 in India. Earlier, in India, oral hygiene
was the domain of home-made natural herbs or ayurvedic powders. Now, in present, the awareness
regarding oral hygiene has increased with different brands of toothpaste.

This research project is conducted to find out the BAV model of three different toothpaste brands
i.e., Dabur, Pepsodent and Colgate.

ABOUT THE BRANDS

(1) Dabur

Dabur India Ltd is one among India’s largest FMGC companies with revenue and market
capitalization of over Rs 8,500 Crores and Rs 72,500 Crores. From the past over 135 years it has
been building on a legacy of quality and today it is India’s most trusted name and knows for the
largest Ayurvedic and Natural Health Care Company in the world.

Dabur operates in key product categories like Oral Care, Skin care, Home care, Health care and
Foods. The company has a wide distribution network covering almost 6.7 million retail outlets,
penetrating both in rural and urban markets.

One of its well-known products, Dabur Red Paste and Dabur Babool are blend of modern
pharmaceutical technology and traditional Indian medicine.

Dabur Red Paste’s segment target or factor is family and target audiences are lower- and middle-
income groups, tier I, II cities and towns among the age group 18-45 years. Dabur’s distribution
network is one of its key strength. Its focus is to touch consumers with a three-way convergence,
that is – of product availability, brand communication and higher levels of brand experience.

Dabur Babool toothpaste in foreign countries like Nigeria, Bangladesh, Sri Lanka, Egypt, Nepal,
UK and the USA.

SWOT analysis of Dabur Babool toothpaste:

Strength:
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1) Dabur toothpaste solved the issue that other pastes failed to, whitening
yellow teeth. Thus, customers are satisfied and convinced with the product.
2) Dabur toothpaste has always tried to keep its cost as low as possible by keeping its
sources of raw materials closer to the point of manufacture.
3) Technology driven distribution channel has been one of its strengths as it helped
reaching large number of people.
4) Increase in demand of ayurvedic products by the customers, not just in India but in
other markets as well.

Weakness:

1) As compared to other products, Dabur Babool has low penetration in foreign markets.
This might affect the long standing of the business.
2) In comparison to other famous brands like Colgate, Dabur has lower penetration in
rural markets and it depends more on urban sales for its revenue.
3) It does not have any other product apart from toothpaste; thus, popularity is low in
comparison to its competitors.

Opportunity:

1) Like discussed above, in oral care segment there are a number of upcoming areas other
than toothpaste which can offer lot of new opportunities. Diversifying its product into
more segments like mouthwashes, toothbrushes etc.

Threats:

1) Many entries of multinationals like P&G making chemical-based products are foraying
into natural products. Along with these local brands like Himalaya and Patanjali are the
biggest threat to Dabur Babool.

(2) PEPSODENT

Unilever, one of the world’s leading consumer goods companies, producing and selling around
400 brands in more than 190 countries, Pepsodent is one of its well known toothpaste products.

Pepsodent paste was introduced in the USA in 1915 by the Pepsodent company, Chicago.
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The brand and company name was formed by the ingredients used i.e., the
original formula used for the paste contained pepsin which is a digestive agent designed to break
down and digest food deposits on the teeth.

Pepsodent has been owned by Unilever since 1942, except in the US and Canada, where it was
owned by Church & Dwight since 2003. The brand became very popular before the mid-1950s but
lost its popularity, reason being, the ignorance of the makers. Pepsodent targets rural and urban
areas and for behavioral segmentation, the brand not only offers for normal use but also takes care
of whitening and complete care. It has different variants such as Pepsodent G, Pepsodent kids and
Pepsodent Milk Teeth, thus targeting a wide range of demographic segmentation.

SWOT analysis of Pepsodent:

Strength:

1) Pepsodent has a wide range of offers in oral care categories like mouthwash, toothpaste,
toothbrush, etc.
2) Pepsodent has a global presence in over 50 countries because of the strong distribution
system of Unilever. Such strong support can help in increasing market penetration.
3) It has a very strong marketing team which helps in increasing demand in the market.

Weakness:

1) As there is an increase in demand for herbal products, not just in India but globally, it
becomes a weak point about Pepsodent as it does not have many herbal products.
2) The presence of Colgate, being the most popular oral care brand, limit the market share
of Pepsodent.

Opportunities:

1) To tap the demand being created for herbal and natural products, pepsodent shall look
forward to bring out such product.
2) Tie-ups with small and big hotels across the globe, can help in increasing demand and
awareness and also the sales.
3) Innovative ways of marketing the product can also help in increasing market
penetration.

Threats:
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1) Pepsodent is competing with another brand of Unilever i.e., Close-up;
thus, increase in cannibalization of product can affect both the products.
2) New products in the market like Patanjali are creating big dent in oral care brand, which
is a threat to new entrants in the market.
3) Awareness of brand or oral care health is less in rural area when compared to urban
area.

(3) Colgate

Colgate is an umbrella brand producing oral hygiene products like toothpaste, mouthwashes,
toothbrushes, etc. The company originally used to sell soap. It was introduced in 1896 in New
York city and had been sold in glass jars since 1873. Colgate entered the Indian domestic market
in 1957 and became the highest selling brand in the world. It is the only brand that is purchased
by more than half of all households. It has a global market share of 45% and a global market
penetration of 67.7%.

Colgate products are targeted to the mass population but most of its sales come from the Middle
class. The other competitive advantage is its powerful distribution network in both rural and urban
areas. Due to its large product line, it occupies large shelf space resulting in high visibility.
Popularity and its massive availability, the toothpaste segment is cash cows. All these reasons
made Colgate a market leader and have become a household name in many nations.

Colgate has many giant competitors like P&G, HUL, and many local companies, having its
extensive products in oral and hygiene but some of them are known for their detergent, soaps and
FMCG products. Wherein, for oral healthcare, Colgate is the market leader.

SWOT analysis of Colgate:

Strength:

1) It is emerging as one of the topmost brands by its excellent advertising, brand visibility
of products and strong customer loyalty.
2) Colgate offers many product categories like personal care, oral care, fabric care, etc, it
has more depth in the product line, thus increasing the chances of success.
3) With a wide distribution network in rural and urban markets, it ensures that it reaches
a wide range of customers, thereby making the product available.
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4) Operating in almost 200 countries and being 2 centuries old company,
it has built a strong financial base.

Weakness:

1) With high competition among local and national players in the oral care segment, the
market became saturated and there is little scope for growth.
2) It has commoditized its brand name. It is known mostly for toothpaste category and
hampered the recognition of other products of the same brand.
3) Colgate products are priced higher than the rivals due to its high cost of operations sur
to which its profits are decreasing.

Opportunities:

1) The major challenge faced by every FMCG company is tapping the rural market in
developing economies. Urban markets being close to saturation, rural markets are the
only hope for revenue generations.
2) Mergers and acquisitions can strengthen the business, it is one of the smart strategies
followed by global companies to expand in the overseas market.

Threats:

1) As discussed earlier, an increasing number of local and national players, it is becoming

very difficult for the companies to differentiate themselves from others.
2) The rise in competition leads to decrease in margins and companies have to give more
discounts to sustain in the same channel.
3) Ethical Consumer Research Association recommended that customers should not buy
Colgate, as it uses animal testing. Information like this will affect brand Colgate.

BRAND ASSET VALUATION MODEL (BAV MODEL):

Brand asset valuation model was a research and branding tool developed by on of the leading
American advertisement agency Young & Rubicam. In the BAV model, the added value of the
given brand is viewed from the perspective of the customer. Brand asset valuation model helps us
in getting insights about the brand health and future of any brand by collecting data from the
customers.
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AMAZING FACT: A survey on the BAV is conducted annually containing data
about 10000’s of brands from 100000’s respondents all over the world.

The BAV model measures brand value based on four broad factors:

1. Differentiation: It is the ability of a brand to stand apart from its competitors. For this the
brand needs to showcase what are its unique features to the customers. Offering a set of
differentiating promises and delivering them helps in building brand health.
2. Relevance: Relevance is the actual and perceived importance of the brand to a large
consumer market segment. In layman’s terms it measures the breadth of a brand’s appeal.
3. Esteem: It is the consumer’s perception about the growing or declining image of a brand.
It tells us how well a brand is regarded and respected.
4. Knowledge: It deals with the extent of the customer’s awareness of the brand and its
features. It also tells how intimate the customers are with the brand. True knowledge of the
brand comes through brand building.

DATA ANAYSIS AND DETAILED INTERPRETATION:

PEPSODENT DABUR COLGATE

Differentiation 6.76 6.496 6.688

Relevance 6.3975 6.0125 6.2375

Knowledge 7.394285714 6.6085714 7.094285714

Esteem 6.578 6.094 6.432

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BAV COMPARISON
8
7
6
5
4
3
2
1
0
Differentiation Relevance Knowledge Esteem

PEPSODENT DABUR COLGATE

ANALYSIS
As per the survey result collected from 150 respondents, we have the following findings:
In the BAV model of the three brands, we see that the respective means calculated for
differentiation, relevance, knowledge and esteem lay close to each other.
 In terms of differentiation, pepsodent ranks the highest, followed by Colgate and then
Dabur being the lowest.
 In terms of relevance, pepsodent ranks the highest, followed by Colgate and then Dabur
being the lowest.
 In terms of knowledge, pepsodent ranks the highest, followed by Colgate and then Dabur
being the lowest.
 In terms of esteem, pepsodent ranks the highest, followed by Colgate and then Dabur being
the lowest.
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LEARNINGS

COLGATE

From the analysis it is clear that colgate is a market leader .It acquires 42% share in global market
.Colgate has associated itself with oral and health care of consumer and has engaged many doctors
recommending it .It has attracted consumer interest through endorsement by celebrities and also
others to emotionally connect with the product .

1) EXPANDING MARKET SHARE

As a market leader it has to protect its market share and expand its market share. The toothpaste
industry has faced a lot of competition and expanding share becomes a challenge for the company
As acquiring each share comes with a huge cost to the company. To increase its market share
colgate follows an extension strategy by entering into various category and through sub branding
strategy and has launched sub brands like colgate gel, colgate sensitive, Colgate herbal . Sub
branding has helped colgate to gain market share but in the long term it will add more cost to the
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company if it keep on adding variants .As all the variants does not work well in
the market ,only some variants are very popular rest all needs more advertising .As it advertises
certain sub brands like colgate salt ,colgate herbal then it would help only those and not other sub
brands of colgate .It should follow a strategy of synergy and borrowing from each other. Colgate
follows an umbrella branding and it should go for house of brands as consumer when entering the
store is not able to relate to one feature associated with brand .As a result colgate has become
generic name which further hurts its brand image .

As a market leader it can also follow a defensive strategy to protect its market share .

1)POSITION DEFENSE

As a market leader colgate can position well in the minds of consumer .Due to its sub branding it
suffers the brand image problem but it can create its image by introducing campaigns and hash
tags and connecting with audience emotionally .It can go for campaigns like “My colgate smile”
or selfie with colgate smile .Colgate has launched campaigns related to selfies but it can do more
so that it can create a strong brand image in the minds of consumer .

2) FLANK STRATEGY

Colgate should comes up with more herbal product ,though it already has a presence a herbal but
it should come up with innovative product and invest more and more in R&D.As toothpaste
industry faces huge competiton and each brand is competing for market share .Colgate should
focus more in herbal as the demand and awareness for herbal products is increasing

Colgate can also enter into rural segment .In India ,the number of users using toothpaste is less
and there is still scope for rural penetration .In Rural areas people still use neem sticks and
targeting people in rural areas would help colgate increase its market share and also take an
advantage over its competitor .
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