Answer keys-Mid-term-MM 2020

1. Perform a situation analysis (SWOT analysis) of Colgate-Palmolive in the Indian oral

care market (Confine the answer to four points each) (8 marks).
Strengths:
1. CP’s brand equity, early entry into Indian market, high level of consumer trust, and
company brand is associated synonymously with toothpaste.
2. Large customer base which is important in a market where word of mouth is
important.
3. Wide range of oral products which is important in a diverse market like India.
4. Being a market leader, and having a sizeable product portfolio means additional shelf
space at retail outlets, more visibility, and prominence.
5. Wide distribution network which makes it convenient to reach rural areas.
6. Connection with Indian Dental Association-important alliance to reach the less savvy
population such as those from lower tiered cities and rural areas.
7. Truly global presence- not heavily reliant on developed markets as GSK.
8. Colgate has experience with marketing in emerging markets.
Weakness:
1. CP has a mass market positioning because of its wide range of products and
distribution services.
2. Colgate brand has a disadvantage against GSK’s Sensodyne which is positioned more
as a brand for up market customers whereas Colgate due to its mass market
positioning will find it more difficult to appeal to premium or super premium
customers.
3. Named dentists for Sensodyne vs unnamed dentists for Colgate in their ads, thus
leading to credibility issues.
4. High pricing as compared to local brands which puts them at risk of targeting no-
premium customers whenever they choose to do so.
Opportunities:
1. Growth potential in oral care market is huge due to tremendous market size.
2. Growth comes not only from replacement and market development in rural areas but
also from market penetration and cross category selling.
3. As consumer gain awareness of dental hygiene, number of consumers using
toothpaste increases, as well as frequency of brushing and premium oral care products
will have more demand.
4. Growing internet penetration and young consumer base will lead to faster
dissemination of information leading to awareness of oral care and brand knowledge.
Threats:
1. Strong competition from international competitors such as HUL, GSK, P&G as well
as local companies such as Dabur erodes sales from top end as well as lower price
points respectively.
2. HUL already has strong presence in rural markets.
3. Possible threats from private labels are emerging.

1
 4. Oral care in India is price sensitive. Low cost alternatives from international
competitors may pose threats.
5. Although India has a strong projected growth, country is diverse with many
consumers still having modest financial situations.
6. Low dentist patient ratio in urban and rural areas.
7. Increasing popularity of online channels may require CP to rethink its initiatives for
strengthening its physical distribution network.
Note: Back up your answer with case facts wherever applicable and elaborate on your points
and explain those well. Do not make general statements.

(2) Which segment(s) should CP target in the Indian Market for Sensitivity Toothpaste?
Justify your answer (6 marks).
The relevant segmentation approaches:
(i) ---------
• Aspirers – as of now 43% in 2013 but expected to shrink to 33% by 2025
• Seekers and Strivers – India’s middle class – more affluent are highly brand
conscious, preferring foreign-made brands presently 50 million (2007) expected to
grow to 583 million accounting for 41% of the population by 2025
o Their income would increase 11 times to account for 58% of the country’s
total income by the same period
• Global Indians – similar those of wealthy consumers from developed countries

(ii) ---------
• Tier 1 (metropolitan cities) – largest size and population – upgrading to more
specialized toothpastes. More than 40% suffering from Sensitive teeth
• Tier 2 (medium size cities) – next largest, costs were lower and population less
mobile. Grew at an extremely rapid pace – growth drivers of the future
• Tier 3 to 6 (rural towns and villages) – spending and consumption in rural India is
outpacing that of urban India. Consumption expenditure in rural India; 25 % suffered
from teeth sensitivity.

(3) Write Positioning statement for Colgate Sensitive and Colgate Sensitive Pro Relief
(for one recommended TG) (6 marks).
Niche or Mainstream positioning
Colgate sensitive – mainstream
Colgate Sensitive - Pro Relief as Niche
__________ is the brand of ___________ (product category) for (TARGET) that (POD)
because (RTB)
Example:

2
“Old Spice Swagger is the brand of deodorant for young men (TARGET) that gives you
confidence (POD) because it did so for many others, such as Brian Urlacher, LL Cool J, and
Tony Stewart (RTB)”

For the current case:

Colgate Sensitive is a toothpaste for premium or aspiring to be premium customers (Seekers
and Strivers, Aspirers) suffering from dentine hypersensitivity that gives you relief because it
is recommended by the dentists
Colgate Sensitive Pro Relief is toothpaste for super premium segment (Seekers & strivers or
global Indians) that gives you instant and effective long lasting relief from tooth sensitivity
because of a trademarked Pro Argin Technology.

You need to mention points such as TARGET segment, Points of Differences (POD) and
Reason to Believe (RTB) clearly in your answer.