PRODUCT GROUP

A product group or a product class can be defined as the set of products and brands which are perceived as substitutes to satisfy some specific consumer needs. The product group that we have chosen is the Oral Care which consists of Toothpaste, Toothbrush, Toothpowder and Mouthwash. In this group we will be focusing on the Market Segmentation of Toothpaste.

AN OVERVIEW OF TOOTHPASTE INDUSTRY

Toothpaste- we use it every single day. In fact, Indians brush their teeth nearly 100 billion times a year. Toothpaste is not a just modern phenomenon but it dates back to thousands of years when people used chew sticks and ashes instead of toothpastes to brush their teeth. In urban areas, toothpaste penetration is higher at 95% whereas in rural areas, the penetration is only of 66%. Although the awareness about twice a day brushing is pretty high, even in urban India, very few people brush twice a day. With population in the rural areas set to rise to 153 million households by 2009-10 and with higher saturation in the urban markets, future growth in the FMCG sector will come from increased rural and small town penetration. The market potential for growth in the economy segment toothpaste brands is huge in case of rural areas. Today the toothpaste market is estimated at around 95,000 tons in volumes and Rs 2500 Cr. in value. The toothpaste industry has grown at the rate of 9% in the year 2004-05. The toothpaste market is segmented as Whites and Gels wherein whites account for almost 80% of the market. Colgate and Hindustan Lever Ltd are the two dominant players in the toothpaste market together occupying 80% of the market. Then we have Anchor who came in a few years ago. We also have smaller players like Dabur whose products now include red gel toothpaste, Meswak and Babool that, in all comprise around 8% of the market share. The leader in the toothpaste market is by far Colgate with a market share of 50.4% with its flagship brand- Colgate dental cream that alone accounts for nearly 39.4% of the tonnage of the Indian toothpaste market. However, Colgate has been under sustained attack from Hindustan levers brands- Close-up and Pepsodent, which account for 34% market share together. Colgate has niche brands under its umbrella like Colgate salt, Colgate total etc. After several relaunches on the part of Hindustan levers, Pepsodent is reportedly doing well on

the tooth care platform. Together, Close-up and Pepsodent can mean a formidable challenge to Colgate in the future. To consolidate its position in the market, Colgate took over a languishing brand Cibaca. It is difficult to attain 5% market share in toothpaste market today. But if any newly launched toothpaste acquires a market share of 5% in two years and grows faster than the market, it is a successful brand. Toothpastes successful at one time like Babool, and Promise has slid down to this share. In fact very few types of toothpaste have touched double-digit market share. The latest one to do this is Pepsodent.

BASIS OF SEGMENTATION
Unless a business has a strong or leading share of a market, it is unlikely to maximize its profitability. Minor brands suffer from lack of economies of scale in production and marketing, pressures from distributors and limited space on the shelves. Through careful segmentation and targeting, businesses can often achieve competitive production and marketing costs and become the preferred choice of customers and distributors. In other words, segmentation offers the opportunity for smaller firms to compete with bigger ones. Toothpastes have been segmented on the basis of the benefits people seek from them. Benefit segmentation of the toothpastes can be done on the following basis: Benefits Sought White Bright Teeth Fresh Breath Brands Colgate Advance Whitening, Colgate Herbal, Close-up Close-up, Colgate Dental Cream (CDC), Colgate Total, Colgate Gel, Colgate Herbal, Cibaca Top, Pepsodent, Dabur Red Gel, Neem Active Colgate Kids, Colgate Gel, CDC CDC, Colgate Total, Cibaca Top, Pepsodent, Meswak, Vicco, Neem Active Colgate Kids Colgate Total, Colgate Advance Whitening, Meswak, Vicco, Neem Active Babool, Meswak, Vicco, Dabur Red Gel, Colgate Herbal, Neem Active Vicco, Colgate Total, Colgate Herbal, Colgate Salt, Babool, Meswak, Dabur Red Gel. Cibaca, Babool

Taste/Flavor Decay Prevention Gentler Toothpaste Tartar Control Therapeutic Healthy Gums Low Price

COLGATE

COLGATE
About The Company
Colgate-Palmolive is a $9.4 billion consumer products powerhouse that serves people around the world with well-known brands that make their lives healthier and more enjoyable. Truly global in scope, Colgate operates in over 200 world markets, and approximately 70% of its sales come from international operations. Colgate's tightly defined leadership strategy focuses on five core businesses: Oral Care, Personal Care, Household Surface Care, Fabric Care and Pet Nutrition. Colgate Palmolive India Ltd is a 51% subsidiary of Colgate Palmolive Company, USA. It is the market leader in the Indian oral care market, with a 51% market share in the toothpaste segment, 48% market share in the toothpowder market and a 30% share in the toothbrush market. The company has maintained its leadership position in the oral care industry despite strong competition from No 2 player HLL as well as local players. The two flagship brands of Colgate are- Colgate dental cream & Cibaca top. Pioneer advantage and family habit put together make Colgate a formidable brand. Being a pioneer gave CDC the advantage of being everything to everybody. (It claims successfully to be germi-check toothpaste, a family toothpaste as well as toothpaste that tastes good.) It is reasonably priced. Its positioning SURAKSHA CHAKRA has consistently maintained. Colgate was, till recently, ranked as the brand with the highest top-mindawareness among consumers in the country. It is a successful toothpaste.

Under the Colgate Umbrella Various Brands along with their market share are: Brand Colgate dental cream Colgate gel Cibaca Colgate Herbal Other brands of Colgate Market share (%) 39.1 5.2 4.1 2.2 <1

Colgate toothpaste brands as we can see can be broadly categorized as: Whites Gels Herbal Kids Toothpaste

COLGATE (WHITES) Under whites, the various brands are as follows:

CDC Colgate Total Colgate Advance Whitening Cibaca Top Colgate Active Salt

The most predominant being the CDC.

Brand Essence of Colgate Whites

Reliability and Reassurance

Brand Promise
The brand promises to: Protect your whole familys teeth and gum related problems with calcium and minerals i.e. Meri big super shakti meri big suraksha.

Brand Personality

Trustworthy Popular Protective Vigorous

Target Audience
Generally the parent, who buys toothpaste for the whole family and is looking for a unique calcium and minerals formula that provides him & his family with the following benefits: Maximum protection from tooth decay Makes teeth stronger Fight germs for hours And lastly provides fresher breath

COLGATE (GELS)
Under gel toothpaste, the major brand is Colgate fresh Energy Gel, which comes in two flavors namely:
Icy Blue Sparkling Red

Brand Essence of Colgate Fresh Energy Gel

Invigorates the senses

Brand Promise
It promises, Long lasting fresh breath and cooling sensation.

Brand Personality
Youthful Vibrant Appealing Confident

Target Audience
The target audience of Colgate Fresh Energy Gel is highly social young adults who are concerned about their bad breath and looking for a germ-fighting system that keeps mouth fresh for hours.

COLGATE (HERBAL)
Under herbal toothpaste, the major brand is:
Colgate Herbal Colgate Herbal White

Brand Essence of Colgate Herbal

Protecting gums in a natural way

Brand Promise
Herbal White toothpaste promises a unique formula including a special blend of eucalyptus, calcium, minerals and lemon extracts that keeps gums and teeth healthy.

Brand Personality
Natural Remedial Protective

 Tender

Target Audience
Its target audience is the Traditional consumers, who seek natural ingredients for brushing especially in semi-urban and rural towns.

COLGATE (KIDS)
This brand comes in two exiting bubble fruit flavours namely:
Bright Pink Gel (Tweety) Bright Blue Gel (Bugs Bunny)

Brand Essence of Colgate Kids

Makes fighting cavities fun

Brand Promise
Colgate kids promises to make brushing more effective and fun for kids.

Brand Personality
Caring Tender Effective Fun-loving

Vibrant

Target Audience
It targets parents who are looking for gentle toothpaste with a light foaming action for their kids to strengthen their teeth and fight cavities. Along with this it is also targeting children with its vibrant colours and fruit flavours that makes brushing fun and motivates them to brush regularly.

CLOSE-UP &
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PEPSODENT

HLL- CLOSE-UP & PEPSODENT

About The Company
Hindustan Lever Limited (HLL), a 51%-owned subsidiary of Anglo-Dutch giant Unilever, made its foray in India in the year 1888. Hindustan Lever Limited (HLL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HLL's brands spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.10, 000 crores. HLLs distribution network is recognized as one of its key strengths -- that which helps reach out its products across the length and breadth of this vast country. HLL's products, manufactured across the country, are distributed through a wide network of distributors. The distribution network directly covers the entire urban population.

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HLL is India's largest marketer of Soaps, Detergents and Home Care products. It has the countrys largest Personal Products business, leading in Shampoos, Skin Care Products, Oral Care Products, Colour Cosmetics, and Deodorants. HLL is also the market leader in Tea, Processed Coffee, branded Wheat Flour, Tomato Products, Ice cream, Soups, Jams and Squashes. Its brands include Kwality Wall's ice cream, Lifebuoy soap, Lipton tea, Pepsodent & Close-up toothpaste, and Surf laundry detergent. Hindustan Lever Ltd is the second largest player in the Indian oral care market with a 33% market share. Close-up & Pepsodent are the leading brands of the company. The companys rural urban mix is 30:70 wherein it is targeting majority of the urban population.

Market Share of its major toothpaste brands is:

Brand

Pepsodent
Close-Up

Market share (%) 17.6 15.3

CLOSE-UP
About The Brand
In 1970s, Close-up was the first gel toothpaste with mouthwash to be launched in India. For the first time, people had the option to brush with transparent, shiny, bright red toothpaste. For the first time, too, toothpaste tasted good spicy clove and icy mouthwash. Close-up emancipated mornings from their boring white toothpaste routines. While others offered cavity control and strong teeth, Close-up offered the cosmetic benefits of superior fresh breath and shiny white teeth. The brand allowed people to get over their insecurity of bad breath and get closer to each other. Close-up appropriated the world of happy smiles, of happy couples having fun together. Consistent communication in this genre helped create a distinct, aspirational imagery for the brand that has remained strong over time.

Brand Essence of Close-up

Confidence, Youth & Romance

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Brand Promise
Close-up didnt just promise the young romantics fresher breath and whiter teeth, it also promised them the confidence to get up close to the person that matters the most.

Brand Personality
Youthful Refreshing Fun Romance Contemporary Confident Energetic Differentiated Empowered

Target Audience
Its target audience involves youngsters and those people who are conscious about how their breath smells when they are up close- especially with the people of the opposite sex. Apart from its dual benefits of fresh breath and white teeth, the brand also targeted youth college girls and guys who wanted to get over their insecurity of bad breath and provided them with the confidence to stand up for themselves. It was in fact, the first brand that showed smart modern girls who were standing up for them, going up on stage and being smarter than the boys.

PEPSODENT
About The Brand
Pepsodent, launched in 1993, was the first toothpaste with a unique anti-bacterial agent to address the consumer need of checking germs even hours after brushing. Pepsodent packs included a Germ Indicator, which allowed consumers to see the efficacy in fighting germs for themselves. Pepsodent connects directly with kids and their parents. Pepsodent has always worked in the direction of an overall awareness of dental health. The relaunch campaign in October 2003 widened the context to "sweet and sticky" food and leveraged the truth that children do not rinse their mouths every time they eat, demonstrating that this makes their teeth vulnerable to germ attack.

Brand Essence
Doing away with germs 13

Brand Promise
Pepsodent promises mothers that they no longer have to worry over the out of control eating habits of their children; Pepsodent will take care of this by its long lasting protection of germs.

Brand Personality
Protective Reliable Fighter Responsible Emotional

Target Audience
The target audience of Pepsodent is the mothers that tend to show anxiety about their childs teeth and their eating habits more so when they are out of her sight. Not only this but they also dont want to fight with their children over this but if they dont do anything they feel irresponsible. This is evident from the sound mnemonic of Dishoom Dishoom that depicted the conflict between the mother and child, and also, the action of Pepsodent on germs.

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DABUR

DABUR
About the Company
Dabur India is the countrys fourth largest FMCG Company with interests in Health care, Personal care and Food products. Building on a legacy of quality and experience for over 100 years, today Dabur has a turnover of Rs.1536.95 crore with powerful brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real. The company has wide and deep market penetration with 47 C&F agents, more than 5000 distributors and over 1.5 million retail outlets all over India. Recently, Dabur India Limited has entered into a definitive agreement to acquire controlling stakes in three Balsara Group companies Balsara Hygiene Products, Balsara 15

Home Products and Balsara Cosmetics. The acquisition brings into its fold important FMCG brands like Promise, Babool and Miswak toothpaste. Dabur currently owns three brands in the oral care segment namely: Dabur Red toothpaste launched in 2003, Babool and Miswak.

Market Share of Toothpastes under Dabur Umbrella are as follows:

Brand Dabur Red Gel Babool Miswak Market Share (%) 1.8 1.4 1.2

DABUR RED GEL TOOTHPASTE

Brand essence
"Celebrate life

Brand Promise
Dabur promises stronger teeth and freshness through natural herbs.

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Brand Personality
Rejuvenating Healing Powerful Stable

Target Audience
Dabur Red Gel targets the entire family and even the young couples who are looking for toothpaste that will help in keeping all their dental problems away and provides fresh breath and with a good flavour.

BABOOL TOOTHPASTE
Brand Essence
Live life Big Bite

Brand Promise
Babool promises its consumers that they will remain fresh throughout the whole day after brushing their teeth with it. Subah Babool ki to din tumhara.

Brand Personality
Youthful Appealing Tender Healthy Pleasant taste

Target Audience
Its target audience is mainly the people who are looking for herbal protection at an affordable price. Its target audience mostly resides in states like Rajasthan, Gujarat, Maharastra, MP, UP (it is in these states that the Babool tree is found and hence people there knew of its benefits).

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Recently, it has started targeting the urban youth through its new brand ambassador Vivek Oberoi to attract people showing that how with Babool they can make their teeth stronger from the roots by biting hard fruits.

MESWAK
Brand Essence
Memorize old traditions

Brand Promise
Meswak promises to provide traditional benefits of the extracts of Meswak plant- the famous toothbrush tree used for centuries.

Brand Personality
Traditional Therapeutic Refreshing Effective

Target Audience
It targets elderly people who are looking for traditional way of brushing their teeth in the modern life and also who love strong flavor.

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VICCO LABS

VICCO
About The Company
Founded in 1952 by late Shri K.V. Pendharkar, the VICCO Group has emerged today as makers of the best internationally known products of the Ayurveda, the ancient Indian system of natural medicines. Having production units at Dombivli, Nagpur and Goa in India, their annual turnover has scored to Rs. 700 millions. Their best known products are Vicco Turmeric skin / sun screen cream, Vicco Vajradanti powder and paste and Vicco SF (Sugar free) paste. About 15% of company's total production goes to overseas market.

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Right from its inception in the 1952, the VICCO Group of companies has been charting an unwavering course that has catapulted the group into international limelight. Today, 50 years later, the group stands majestically as a grand conglomerate of 13 companies.

Market share of Vicco Vajradanti Toothpaste

VICCO products constitute 4% of India's paste market.

About the brand

Vicco Vajradanti Toothpaste is the nature's perfect dental care program. The pure extracts of 20 herbs and barks, tested over generations, have been blended into a potent combination that not only cleans teeth, but also protects gums and strengthens them. It offers a unique formula in a dental care paste that has natural astringent, antiseptic, and analgesic properties. These ingredients also stimulate and reinforce gums, while resisting plaque formation. It gives you strong gums, which makes your bite mighty, which no cosmetic toothpaste can ever give. The paste removes food particles from the cavities and crevices of the teeth and also strengthens the gums by allowing the essences from 20 rich herbs to percolate down the gum - layers.

Brand Essence
Combining ancient wisdom with modern technology

Brand Promise
The brand promises to rejuvenate teeth and gums to give a never fading smile.

Brand Personality
Healing Effective Fragrant Stimulating Analgesic Powerful Therapeutic

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Target Audience
It is recommended for people both young adults and elderly who have any gum discomfort such as gingivitis, ageing teeth, gum recession, people who use tobacco and are at a higher risk for periodontal diseases. It also targets people who want to avail all the benefits of ancient ayurveda and want to protect their teeth from harmful chemicals.

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NEEM ACTIVE

NEEM ACTIVE TOOTHPASTE

About the brand
Henkel SPIC India Ltd, a joint venture between Henkel KgaA, Germany and Tamil Nadu Petroproducts Limited, is the marketer of its Neem toothpaste i.e. Neem Active.

Brand Essence
Natural Astringent & Antiseptic 22

Brand Promise
Neem Active promises germ-killing properties with an un-bitter taste and also enriched power of Neem and improved product formulation to ensure strong teeth and healthy gums.

Brand Personality
Germicidal Effective Therapeutic Traditional Refreshing

Target Audience
The Target Audience of Neem Active toothpaste includes the entire family who are looking for herbal products to prevent their teeth from decay as well as to control plaque along with healthy gums. It is also targeting children with its new spearmint flavour and with an unbitter taste so that they enjoy brushing their teeth with it along with availing the natural benefits of herbs.

BIBLIOGRAPHY
www.Agencyfaqs.com Brand positioning by Subroto Sen Gupta www.Colgate.com www.hll.com www.viccolabs.com www.dabur.com

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