Indian Oral Care Industry

Valued at 21 billion rupees 50 % of India's population uses toothpastes, 27 % uses

toothpowder while 23% in the rural areas are yet to adopt oral care Toothpaste consumption 67% Urban households restrural households Industry dominated by large MNCs- Colgate Palmolive, HUL and SmithKline (Aquafresh) and a few Indian ones like Anchor and Dabur Colgate and HUL -more than 80% of the organized toothpaste market

Colgate Brand Walkthrough

Promoted by Colgate-Palmolive USA, present in India since last 50

years
Market leader with over 45% market share in 21 billion rupees oral

care segment
Acquired Hindustan Ciba Geigy (Cibaca) in the year 1994 Two main brands in the toothpaste segment Colgate and Colgate

Cibaca
Launched 3 new innovative variants during the course of year 2006 -

Colgate Active Salt, Colgate Advanced Whitening and Colgate MaxFresh Gel .

The Innovative Products

1) Colgate Active Salt- 1st toothpaste to contain salt
2) Colgate Maxfresh Gel- The Max Asar formula 3)Colgate Advanced Whitening- Silica enabled

toothpaste

Marketing Strategies Product Mix

Product Adds utility and meets the wants and needs of targeted consumers. Unique Product and able to differentiate from all other products existing in the market e.g. Colgate Herbal White which promises a unique formula. Packaging-green colour ensures the herbalness Sizes- available in50g,100g and 200g Price Pricing strategy - positioning the toothpaste as a mainstream product rather than a niche product

Marketing Strategies Product Mix

Place Distribution strategy of Colgate toothpaste through Dentists and plastic surgeons Drug stores Grocery stores Large retail stores and department stores Promotion Advertisements - commercials, magazine ads, the radio Ads -placed in dentist offices, billboards, and the sides of buses Advertising : Promote new products, Remind consumers of existing products Promote the image of the company at hand Colgate offers special coupons and rebates through their other products

Marketing Strategies
Market Dominance Market leader - dominance in Oral Care Catering to all the segments -long product line Massive advertising, awareness ,especially in child segment Product Differentiation Different packaging for all its product line Changes packaging according to product innovation Differentiation due to massive promotion on channels Create a different image in the eyes of consumers Innovation Strategy Pioneered in new product development and business model innovation Cutting edge technology- innovation strategy

Colgate Toothpastes - Product Range

Colgate Gel (Blue and Red) Toothpaste Colgate Total Toothpaste - only toothpaste to

contain "Gantrez, "shield of protection, even 12 hours after brushing Colgate Calciguard-anti cavity therapeutic positioning marketed in the Metros Colgate Sensitive-Marketed through Dental Profession Colgate Active Salt Colgate Total Clean Mint Paste

Target Market
Kids Brushing -more effective and fun for kids Sparkling gel comes in 2 exciting variants Bright Pink gel , and Bright Blue gel ,yummy Bubble Fruit flavour Tweety and bugs bunny are favourites with kids The fruity bubble gum flavour kids brush longer developing good oral care habits Family Strong teeth and fresh breath Developed using Colgates international expertise in oral care Unique formula protects teeth from decay Refreshing minty flavour makes breath super fresh Youth Icy wave of minty coolness Cooling crystals and emphasis on taazgi

Target Market
People with sensitive teeth
Fights pain due to

sweet/sour/hot/cold foods by desensitising nerves Helps maintain the natural whiteness of your teeth Significant inhibitory effect on the formation of supra-gingival calculus Pleasant taste Notice improvement in 2-4 weeks Relief from the pain of sensitive teeth Proven protection from sensitivity with regular use Fresh breath

People with oral pain

Treats mouth irritations and oral lesions effectively

The Survey Analysis

Most preferred Brands
40% of those surveyed preferred Colgate Close up preference is around 28%

Longevity of the Toothpaste Most of the respondents consumed their toothpaste within a span of 15-30 days.

The Survey Analysis (contd.)

Current Brand Usage
47% of those surveyed are brand loyal using the same brand for more than

5 years.

Willingness to change the brand 72% of the respondents are willing to change their brand effect of advertising and branding.

SWOT Analysis
Strengths Parent support Colgate Palmolive India Limited - Strong support from its parent company Parent company - world leader in oral care company and present in almost every country. Company has access to the parents hugely successful global folio of products and brands Market Leader in some of the Key Products Colgate Palmolive India Limited - Market leader in oral care market Present for a long time in Indian market Wide market coverage Urban as well as in rural market

SWOT Analysis
Weakness Concentration risk over single category High dependence on a single category - Oral Care Other two categories - Personal care and household care contribute < 10 per cent to revenue

SWOT Analysis
Opportunity
Low penetration level:
Low penetration level for oral care in rural market Most of the users in rural market use traditional

products like neem twigs, salt or other herbal ingredients

SWOT Analysis
Threats Competition in Low end segment Few competitors in premium segment, but many regional players High competition from big players in low segment products.

Leveraging the Success

Strategic initiatives
Adopted a strategy of new launches and a significant hike in marketing

expenditures Targeting schools to create oral awareness among children National Oral Health Program called Bright Smiles, Bright Future in association with the IDA for children
Creating demand in rural areas

Supply chain simplification through Stock Keep Unit(SKU) reduction

Positioning and creating Brand Equity

Consumer- more health and hygiene conscious
Vast consumer base in India Sectoral opportunity in other oral products Smaller packs to drive growth Direct media promotions Operation Jagruti program

Educate villagers about oral hygiene Its benefits vis--vis traditional products like Neem Conducted by giving product trials and free samples

Suggestions
Introduce a variety of attractive flavours.
Cut down prices up to an extent because some tooth

pastes of Colgate are quite expensive as compared to Close-up & Pepsodent. Colgate should introduce sachet packs of its product targetting lower income segment and increase sales Explore rural areas also because both brands are not very popular amongst the rural people.

Conclusion
The toothpaste market enjoys a very good and strong position in

Indian market. It is found that the major section of the youth population uses one or the other toothpaste in which freshness, protection against tooth decay and whitening are major attributes Medicinal toothpastes like Emoform, Senequel-F are also attracting customers.Thus Colgate can foray in the segment of medicinal toothpastes. Population growth - An expected annual 1.5% increase in population will help broaden the user base for oral care and this is the opportunity which Colgate should leverage upon and remain the ubiquitous toothpaste at every household-even the rural houses