MARKETING PROJECT

Group 4

Arijit Kumar Dey(G20056), Manjistha Dey(G20068), Mousumi

Sahoo(G20071), Priyanka Biswas(G20077), Roshan
Shaw(G20082)
[Email address]
Situation Analysis

Situation Analysis

  Parameter Details

Product Colgate - toothpaste

Define the
1. Pepsodent
product/competitor
2. Closeup
Competitor 3. Dabur
Brand Competitor Pepsodent, Closeup

Analyze the category Form Competitor Oral-B, Sensodyne, Patanjali

Generic Competition Toothpowder

Market Size Oral care accounted for about 16 per cent of the fast-moving
consumer goods market in India. Within the segment,

Colgate occupied almost 53 per cent of the market in 2017.

Growth Domestic Net Sales growth of 5% led by underlying volume growth
of 4%
Net Profit after tax is higher by 24%
Continued substantial investment in advertising and brand building
activities
First Interim Dividend of Rs. 12 per share
Aggregate market Stage in Product Life Collate is in the maturity stage of the Product Life Cycle. There are
factors Cycle many competitors available in the market for Colgate. Growth
graph is almost flat as the product has achieved acceptance by most
potential customers.
Sales Cyclicity As Colgate is already at the maturity stage, the strong growth in
sales has reduced. Many competitions have appeared with similar
products. The primary objective at this point is to defend market
share while maximizing Profit. So follow up is the sales cyclicity
stage.

Seasonality not seasonal

Profits  INR 45 Billion
PESTEL Analysis:

Political Factors Political Instability.

Economic Factors 1. Impact of GST.
2. Potential in emerging markets
Social Factors Improving Health and Hygiene
PESTEL Analysis Technological Factors 1. Engagement using new technology
2. Leverage digital technology
Environmental Factors 1. Reducing the impact on the environment and social
2. Save water campaign
Legal Factor 1. Regulatory and legal requirements.
2. Law of compliance.

Porter's 5 Force Model:

Threats of New Medium:

Entrants The amount of initial investment needed to enter the household
customer segment is high; the threat of new entry entrants are
relatively low. But the main problem is whether small manufacturers
can put their product on the shelf of the same retailer as the firm.
Bargaining Power of Medium:
Suppliers Consumer products need to face suppliers because of the cost when
switching suppliers. Hence power for both supplier and firm is limited.
Porter's 5 force model Bargaining Power of High:
Buyers Retailers, the buyer of the products have strong buying power.
Threats of Substitute High:
Products or Services Although the brand succeeded in building a competitive advantage,
the pricing power of the Company can be impacted because of
substitutes. So there is a high degree of treats of a substitute.
Rivalry among the High:
Existing Competitors While many customers prefer a specific brand, switching costs in the
industry are relatively low. So the degree of rivalry is high.

Competitive Analysis:
Direct Competitors
Colgate Pepsodent Close up Dabur
Company Company Top brand in Oral An American brand Global product of Dabur India Limited is
Highlights Profile hygiene. owned by Unilever since Hindustan fast-moving consumer
1942. Global Unilever Limited. goods (FMCG).
manufacturer of oral care
products serving mostly
Canada and U, S.
Products are mainly
 toothpaste and
mouthwash.
Key Broad product Pepsodent contains salient Close up is the Due to their multiple
Competitive portfolio. features such as:(i) Minty first mover in gel features of
Advantage Differentiation flavour derived from type toothpaste. strengthening the
based on the sassafras (II) Ingredients teeth, and gums,
benefits. such as atrium and lauryl Dabur is considered as
sulphates which has one of the top Colgate
antibacterial properties and competitors.
provides more foam to
clean teeth than
competitors
Target Market Primarily Urban Urban Households for Oral Mainly Urban The middle-aged group
and Middle-class Hygiene Care Youth in the urban and metro
segments markets.
Market Share 52% 22% 18% 15%
Marketing Creative Pepsodent has 1)Trendy 1) Red focuses on
Strategy marketing experimented on Youthful maintaining oral
campaigns. Brief positioning using various advertising hygiene and keeps
and impactful campaigns to date, such as: campaigns dental problems away
Market ads. i. Germ Fighting Campaign appealing to the with the mention of
Information ii. Dental Insurance Youth. Paste for Teeth and
iii. Bhoot Campaign 2)Emphasis on Gums.
iv. Lasting Protection for white teeth, 2) Products are
hours fresh breath and positioned as a young
For behavioural more confidence family, dental hygiene
segmentation, the brand to get close to toothpaste.
offers from everyday use to preferred
whitening to complete care gender.
segment products
Product Product & Colgate Total, Pepsodent whitening, Close Up Deep Dabur Red Paste,
Information Services Colgate Max Pepsodent Super Salt, Action, Fire Babool and Meswak.
White Pepsodent lavang freeze and Icy
White.
Pricing Premium price the low-priced, mass, end, Low priced the low-priced, mass,
segment and mid-priced end, and mid-priced
Distribution Market access to i) Retail outlets Unilever's strong One of the significant
Channels the whole world ii) e-commerce platforms distribution strength of Dabur is its
Major like Flipkart and Amazon network. distribution channel
operational iii) Traditional mom and Rural distribution that is powered by
challenges. pop (Kirana) stores needs to be various technologies
strengthened. like RFID, ERP, and 3 D
printing. The product is
reached to a maximum
number of people.
Strength 1. All-around 1. Vast range of offerings- 1) the First 1. Scientifically
cavity protection toothpaste, mouthwash mover in the Gel validated formulation
SWOT 2. mint taste and toothbrush type toothpaste and Ayurvedic
Information freshens breath 2. Present in 50 countries category, ingredients
3. Protects around the world, not 2)Offers 2. Contains ingredients
against root much dependent on a freshness and trusted by Indians as
 caries single market whitening home remedies for
4. Cleans and 3. Partnership with FDI, features in its dental problems
whitens teeth 5. therefore endorsed and products 3. Does not contain
repairs early supported by various 3) Pocket- fluoride-a toxic
decay spots associations in the world, friendly, low industrial waste which
hence considered a credible priced product most toothpaste
product 4) Strong brand contains
4. Parent company Unilever appeal, excellent 4. Reasonable price
provides financial stability advertising 5.Belonging to a
for improving distribution healthy family of
network Dabur having a name
in Ayurvedic products
Weakness 1. High 1. A presence of Colgate 1) Less 1. Marketing not as
dependence on a has allowed limited market innovation, powerful as Colgate
single category, share limited product 2. Unusual colour of
i.e. Oral Care 2. Lack of herbal range the toothpaste or
2. Limited market productsLimied customer 2) Popularity toothpowder
share growth for base among urban 3. Limited customer
Colgate Youth base.
3)Over-
dependence on
branding by
celebrities
4)Cost Structure
Opportunities 1. Leverage on 1. Bring in herbal products 1) Better 1. Expansion in
being the most to cater to the growing penetration of markets outside India
trusted brand in demand in the market the rural market at a broad level
India 2. Increasing awareness by different 2. Better promotion
2. Focus on about oral care marketing and and expansion online
innovation and 3. Tie up with small and big branding 3. Explore rural
new product hotels to increase sales strategy segments
launches by 2) Scope of
deploying growth in the
advanced natural-herbal-
technologies organic product
3. Growth in range
emerging 3) Expansion in
markets – rural emerging market
and semi-urban segments
outside India
Threats 1. High 1. Direct competition with 1)Wide range of 1. Price wars between
competition from Close-Up which is also a product variation competitors
Pepsodent from product of Unilever from the 2. Presence of readily
HUL increases chances of competitors available and lesser
2. Increasing cannibalization of product 2) Less priced substitutes
manufacturing 2. Lack of awareness of oral innovation 3. New products from
cost care in countries such as the competitors
India, Pakistan

Trends Increasing dental Pepsodent has launched The natural- Shifting consumer
problems among Pepsodent Germicheck herbal market is preference from
 children and Superior Power a emerging. chemical towards
adults. The rise in breakthrough product in Demand for high- natural oral care
popularity for India which has 130% The end, high-quality products owing to
herbal oral care Germ Attack Power Of products is on growing awareness
products Colgate Strong Teeth At 4 the rise. related to the harmful
Hours After Brushing. This effects of artificial
is a significant innovation ingredients on health.
given that standards of oral Natural products are
health in India are low with made natural products
more than 60% of the is expected to increase
population suffering from in the foreseeable
some form of oral problem. future.
This is the first time
Unilever is rolling out this
technology anywhere in the
world, and the Company
has applied for a patent on
the technology.

Differentiation through value chain activities

Inbound logistics:
1. Sourcing of high-quality raw materials in bulk to offer high quality product
2. Proper standard procedures for handling incoming material to reduce damage
Operations:
1. Flexible manufacturing system to cater to world market
2. Wide product range for increased market penetration
3. Improved product appearance
4. Improved customer satisfaction through lower defect rate
5. Improved product performance due to conformance to technical specifications
Outbound logistics:
1. Effective handling procedures and better shipping to reduce product damage
2. Timely product delivery
3. Flexible delivery capabilities

Customer Journey Mapping:

Persona Goal

Ram (Regular buyer) Monthly expense

Sham (Occasional buyer) Occasional expense

Ram's Journey Map to buy toothpaste:

Monthly need Explore nearby

Pick Up & Bill Post Buy
identified super store
Sham's Journey Map to buy toothpaste:

Post Buy
Sudden need Explore nearby Get help from Pick up & Bill
Based on the above, how attractive is the category? Consumption
identified super store Another

The category is a very competitive one with high price competition. We create an attractive matrix for the
market, based on the GE model, as shown:

Parameter Weight Explanation Rating Score

Market size 0.2 Market size is huge 7 1.4

Growth 0.3 Growth prospects are good 6 1.8

Competition 0.2 High Competition, Threats from entrants 5 1

High Bargaining power of buyers, competitive

Profitability 0.2 pricing 6 1.2

Barriers to
entry 0.1 Very low barriers to entry 8 0.8

Total 6.2

So, we generate an overall market attractive score of 6.2 for this category and hence classify it as a moderately
attractive market.