5 Top Tooth Paste
-
Upload
mrunalini-rane -
Category
Documents
-
view
127 -
download
3
Transcript of 5 Top Tooth Paste
Top Five Toothpaste Brands in Mumbai
UNIVERSITY OF MUMBAI
MPES COLLEGE OF COMMERCE & MANAGEMENT.
JERBAI WADIA ROAD, BHOIWADA PAREL, MUMBAI-400012
PROJECT ON
5 TOP TOOTH PASTE
SUBMITTED BY
MAYURI BALAWANT RANE
TYBMS
IN PARTIAL FULFILMENT OF THE COURSE
BACHELOR OF MANAGEMENT STUDIES (B.M.S)
2011-2012
PROJECT GUIDE
MISS. NITA DALAL
1
Top Five Toothpaste Brands in Mumbai
ACKNOWLEDGEMENT
IT IS MY GREAT PRIVILEGE TO THANKS M.P.E.S COLLEGE OF MANAGEMENT & COMMERCE PARTICULARY PRESIDENT AND CEO OF M.P.E.S. DR SATISH KELSHIKAR, FOR GIVING ME THE OPPORTUNITY TO COMPLETE THIS PROJECT WORK.
I ALSO SINCERELY THANK MY PROJECT GUIDE, PROF.PRADIP MANJREKAR FOR HAVING GUIDED ME THROUGH THIS RESEARCH WORK WITHOUT WHOSE HELP IT WOULD HAVE BEEN IMPOSSIBLE TO COMPLETE THIS WORK.
I M ALSO THANKING MY PARAENTS, FAMILY MEMBERS AND FRIENDS FOR THEIR ENCOURAGEMENT AND HELP.
MY HUMBLE THANKS TO MY MERITORIUS GOD FOR GIVING ME ENCOURAGEMENT AND POWER TO COMPLETE
THIS RESEARCH WORK.
PLACE-MUMBAI ---------------------
Date: - Signature
2
Top Five Toothpaste Brands in Mumbai
DECLARATION
I MISS. MAYURI BALAWANT RANE OF T.Y.B.M.S STUDENT OF M.P.E.S COLLEGE OF COMMERECES AND MANAGEMENT HERE BY DECLARE THAT I HAVE COMPLETED THIS WORK ON STUDY ON 5 TOP TOOTH PASTE IN THE ACADEMIC YEAR 2011-2012.
THE INFORMATION SUBMITTED IS TURE AND ORIGINAL TO MY BEST KNOWLEDGE
PLACE-MUMBAI --------------------
Date: - / / Signature of Student
3
Top Five Toothpaste Brands in Mumbai
CERTIFICATE
THIS IS TO CERTIFY THAT THE WORK ON STUDY (5 TOP TOOTH PASTE) IS BONAFIDE RESEARCH WORK CARRIED OUT BY MISS MAYURI BALAWANT RANE OF T.Y.B.M.S STUDENT IN THIS INSTITUTION UNDER THE SUPERVISION/GUIDANCE OF THE CONCERNED FACULTY IN ACADEMIC YEAR 2011-2012
PLACE-MUMBAI
DATE: - / /
-------------------- ---------------------
DR. SATISH KELSHIKAR MISS.NITA DALAL
PRESIDENT and CEO PROJECT GUIDE
M.P.E.S. MUMBAI
4
Top Five Toothpaste Brands in Mumbai
TABLE OF CONTENTS
Chapter.1 Introduction of Toothpaste Industry
1.1 Brief History of Toothpaste
1.2 Industry Overview
1.3 Scope of the Study
1.4 Objective of Study
1.5 Research Methodology
1.6 Research work
Chapter.2 Consumer Behaviors
2.1 Meaning of Consumer Behavior
2.2 Introduction Indian consumer behavior
2.3 Characteristics of the Indian Consumer Behavior
2.4 Different segments of Indian consumers
2.5 Increasing Awareness of Indian Consumers
2.6 Marketing Strategies
2.7 Changing Trends in Indian Consumer Behaviors
2.8 Consumer Behavior towards different toothpaste
5
Top Five Toothpaste Brands in Mumbai
Chapter.3 Top Five Toothpaste Brands
3.1 Colgate Dental Cream
3.2 Close-Up Active Gel
3.3 Pepsodent Complete 10
3.4 Colgate Cibaca Top
3.5 Colgate Fresh Energy Gel
3.6 Other brands
3.7 Brand wise Market Share
3.8 Survey Report & Data Analysis
Chapter.4 ANALYSIS OF TOOTHPASTE BRANDS
4.1 Colgate Palmolive (INDIA) Ltd. {CPIL}
4.2 CLOSE UP
4.3 Pepsodent
4.4 Cibaca
Chapter.5 Case Study Based on Cibaca
Conclusion
Recommendations
Bibliography
Annexure
6
Top Five Toothpaste Brands in Mumbai
Chapter.1
Introduction of Toothpaste Industry
7
Top Five Toothpaste Brands in Mumbai
1.1 Brief History of Toothpaste
Toothpaste use was first reported in Africa (Egypt) at about the
4th AD. The primitive toothpaste was we know was made up of salt,
pepper, mint leaves and iris flower. Urine based toothpaste was widely
used in Europe during the Roman times. In early America, toothpaste
consisted of burnt bread. Up till today in many parts of Africa,
specific types of herbs are still been chewed which helps to keep the
mouth and teeth pristine clean.
1.2 Industry Overview
India is still a nascent country in dental hygiene, with the
majority of the population still not having access to modern dental
care but relying on substances like coal ash and neem sticks.
In India, per capita toothpaste consumption stood at 74g in
2005, which is amongst the lowest in the world, compared to 350g and
300g in Malaysia and Vietnam respectively.
Toothpaste enjoys a country wide penetration level of 50%. The
penetration levels of dentifrice in the country have been on an upward
trend over the last few years driven by strong improvements in
toothpaste penetration.
8
Top Five Toothpaste Brands in Mumbai
(Table 1.2): Toothpaste Penetration
All India Urban Rural
Penetration% 50% 75% 39%
With the huge consumer base waiting to be tapped and the
expected rise in purchasing power as the economy picks up, oral
hygiene in India may receive a fresh lease of life.
A) The Toothpaste market
Oral hygiene continues to be under aggressive competition,
with sales increasing by a modest 3% in current value terms in 2006 to
Rs. 2,400 crs. Toothpaste accounted for a whopping 83% of value
sales.
(Table A-1): Toothpaste market in value (in Rs. crs.)
Period Urban + Rural Urban Rural
Apr-Mar04 1897 1340 556
Apr-Mar05 1950 1386 565
Apr-Mar06 2009 1414 594
(Table A-2): Toothpaste market in volume (in tones)
Market volume trends Urban + Rural Urban Rural
Apr-Mar04 77320 53791 23529
Apr-Mar05 84501 59172 25329
Apr-Mar06 86562 59922 26640
9
Top Five Toothpaste Brands in Mumbai
(TableA-3): Value - Zone Wise (in Rs. crs.)
North zone East zone West zone South zone
Apr-Mar06 486 335 543 645
%wise 24 17 27 32
(Table A-4): Value - Town Wise (in Rs.crs.)
Total market value Town class Metro Class 1 Others
Apr-Mar06 561 386 467
%wise 40 27 33
B) Long term growth drivers
• Improving penetration
Through better distribution and conversion from other modes of oral
care
• Increased usage
Improved per capita consumption through increased usage frequency
• Population growth
An annual 1.5% increase in population will help broaden the user
base for oral care.
10
Top Five Toothpaste Brands in Mumbai
C) Segments in the Industry
i) Price-based segmentation of the toothpaste category
On the basis of price, the toothpaste market can be broken down into
two distinct categories:
ii) Low Price Point Segment
The Lower Price Point segment accounts for around 25% of
total category volumes. This segment offers good value for money and
has seen its volume market share increase from 10.7% during 2000 to
current levels. The entire category is characterized by intense
competition in both the price segments.
iii) Threats from smaller brands in the low priced segment
Small and regional brands from the low priced segment are
expected to perform well because they are often close to the market,
respond faster to changes and are willing to learn from mistakes.
11
Top Five Toothpaste Brands in Mumbai
Industry analysts believe that the new threat will come from
smaller players who have embraced a different kind of business model
with a different value proposition. These include regional brands and
private labels.
Regional brands typically take on well-known, established
brands by pursuing a flanking strategy which can be of two types –
geographical or need-based.
In a geographical attack, the challengers identify regions where
the opponent is underperforming. The other flanking strategy is to
serve unfulfilled market needs. The smaller brands have also started
delivering on the quality front.
D) Key Players
The toothpaste segment is largely a two player industry,
Colgate Palmolive & HLL accounting for 80% of the entire market
(Table D-1): Company Share (Value)
Period Colgate Palmolive HLL Dabur
Apr-Mar06 47.3% 30% 7.2%
(Table D-2): Company Share (Volume)
Period Colgate Palmolive HLL Dabur
Apr-Mar06 48.8% 27% 9.1%
12
Top Five Toothpaste Brands in Mumbai
I) Colgate – the dominance continues
Colgate has been present in the domestic oral care market for
the last 70 years and its oral care brands enjoy strong brand equity in
the market.
The company has traditionally been the leader in the domestic
oral care market. Currently, it occupies a dominant position in the
toothpaste segment with a 48% market share in the domestic market.
Its relative market share is 1.5 times the second largest player.
Cibaca was acquired by Colgate in 1994 from Ciba Geigy. The
company today has two main brands in the toothpaste segment –
Colgate and Colgate Cibaca.
Faced with tough competition from HLL during early 2000,
Colgate made a slew of successful new launches to protect its market
share namely Colgate Herbal, Colgate Gel & revitalized Colgate
Cibaca Top (in the low price segment).
The company has continuously relied on innovations to stay
ahead of the competition. It launched 3 new innovative variants during
the course of FY06.
1. Colgate Active Salt – This capitalizes on the traditional use of salt
for oral care.
2. Colgate Advanced Whitening –Which contains that microcrystal’s
polish ones teeth, Restores and maintains their whiteness.
13
Top Five Toothpaste Brands in Mumbai
3. Colgate MaxFresh Gel – innovative gel-based toothpaste with
cooling crystals.
4.1.1: Current Brand portfolio: Toothpaste
1. Colgate Dental Cream
2. Colgate Total
3. Colgate Herbal
4. Colgate Kids Toothpaste
5. Colgate Advanced Whitening
6. Colgate Active Salt
7. Colgate Fresh Energy Gel
8. Colgate Max Fresh
9. Colgate Cibaca
The company has backed its products with a very strong
distribution network. The company’s distribution network covers 940
direct accounts and 3.8 million retail outlets. Colgate is the 2nd most
widely distributed product in the country. The company is tying up
with initiatives like E-chopal and Disha to further strengthen its
distribution network.
ii) Tremendous brand equity
Over the years, Colgate has been able to develop strong brand
equity. It has been voted the “The Most Trusted Brand” in the country
for 3 consecutive years in the AC Nielsen Brand Equity Survey.
14
Top Five Toothpaste Brands in Mumbai
iii) HLL – the challenger
In the late 1980s, Hindustan Lever used the novelty element in
gel toothpaste to make steady inroads into Colgate's dominance in the
oral care market. Its gel toothpaste, Close-Up helped HLL become the
second largest paste brand; posing a stiff challenge to Colgate.
However as the novelty of gel toothpastes wore off, HLL
renewed focus on its other brand Pepsodent to help it protect its turf.
Its attempt at offering a low priced brand Aim was not
completed and the brand was subsequently pulled back after launching
it in early 2000 Both Close Up and Pepsodent have a combined
market share of 30%
The current brands offer distinct propositions; Close Up
addresses the youth with new benefits and value-driven propositions,
whereas Pepsodent is firmly entrenched on the family health platform
with variants catering to oral health
Current Brand portfolio: HLL
iv) Dabur – Growth through acquisition
Dabur has managed to grab a 7.2% market share with the
acquisition of Balsara’s oral care
15
Top Five Toothpaste Brands in Mumbai
v) Brands:
Babool, Promise and Meswak in addition to its own brand
Dabur Red (Targeted to Capture Consumers Shifting from
Toothpowder to Toothpaste).
1.3 Scope of the Study:
Research is conducted to highlight the behavior of consumers in
respect to toothpaste Study has also been made about the buying
pattern of the consumers and how important. It also provided
information about the leading brand in the market along with their
market share.
Research is conducted to study Top Five Toothpaste
Brand in Mumbai.
1.4 Objective of Study:
To study the buying pattern of consumers towards toothpaste
To identify the various types of attributes of the tooth which
influences consumers?
To understand which kind of advertisements are effective for
attracting consumers.
To study different promotional activities which are most
accepted by the respondent
16
Top Five Toothpaste Brands in Mumbai
1.5 Research Methodology:
A) Methods of data collection
For the present study, method of data collection adopted was
Primary sources as well as secondary sources. Primary sources
comprises of data collected from 128 respondents through
questionnaire method. Whereas, secondary data were collected
from books, journals, magazines, websites and sources around.
B) Sample Characteristics
Respondents: Consumer and retailers
Consumers were interviewed between the age group of 15 and above
Center: South Mumbai (Charni Road to Mumbai central)
Sample Size: 128 from Charni Road to Mumbai central
Age Group 15 and above
Type Consumer (124)
Retailers (4)
Duration of the Research Work: 23rd July 2007 to 26th September
2007.
17
Top Five Toothpaste Brands in Mumbai
C) Limitations of the study
Sample sizes were restricted to 128 respondents in the city of
Mumbai. From Charni Road to Mumbai central our sample size of 128
thus cannot be said to be the correct representation of the target
market.
Toothpaste are not only sold in exclusive shops but also sold in
simple retail shops. Thus it is very difficult to estimate the sales and
buying pattern of consumers in general.
1.6 Research work
Indian tooth paste industry is one of the country largest consumermarkets. The Indian tooth paste market is pseudo-mature. It is amazingly complex being segmented not only on the basis of prices and benefits but even range of emotions within that outlining framework. With in over 10-15 brands in the market, this segment of the consumer product offers a tremendous to study the concept of brand positioning, especially when tooth paste is a fairly intimate product and consumer prefers a brand which reflects his self image or fits in with this fantasies. The focus of this study about tooth paste is consumer perception of the various brand are available.
Methodology
18
Top Five Toothpaste Brands in Mumbai
After survey it was found that most of the people preferred that
tooth paste whose taste they liked. Color stood second in their
preference. Price was third. There was a tie between
Availability & Liking. Advertisement stood sixth. Scheme
ranked seventh and last but not the least was packing. All the
points given to factors that influence customers to buy tooth
paste are based on Rank System. It was a combined survey of
both males & females.
It was found out that the people preferred that tooth
paste the most which provided them with Long Lasting Freshness. The
tooth paste giving the quality of Healthy tooth & gums was ranked
second. Third in the race was tooth paste with Natural herbs. The
fourth ranking was given to tooth paste giving Whiteness to their
teeth. Fifth ranking goes to paste providing Good Foam and the least
preferred was the paste which boasted of prevention of tooth decay.
All the points given to attributes that influence customers to buy tooth
paste are based on Rank System. It was a combined survey of both
males & females.
19
Top Five Toothpaste Brands in Mumbai
Chapter.2
Consumer Behaviors
20
Top Five Toothpaste Brands in Mumbai
2.1 Meaning of Consumer Behavior:
Consumer behavior is the study of how people buy, what
they buy, when they buy and why they buy. It is a subcategory of
marketing that blends elements from psychology, sociology,
sociopsychology, anthropology and economics. It attempts to
understand the buyer decision making process, both individually
and in groups. It studies characteristics of individual consumers
such as demographics, psychographics, and behavioral variables
in an attempt to understand people's wants. It also tries to assess
influences on the consumer from groups such as family, friends,
reference groups, and society in general.
2.2 Introduction Indian consumer behavior
India is a big country with 28 states, over one billion people
and 120 dialects/languages. From the market perspective, people of
India comprise different segments of consumers, based on class,
status, and income. An important and recent development in India’s
consumerism is the emergence of the rural market for several basic
consumer goods.
Three-fourths of India’s population lives in rural areas, and
contribute one-third of the national income. This rural population is
spread all over India, in close to 0.6 million villages.11 %of
toothpaste sales come from Mumbai and Delhi.
2.3 Characteristics of the Indian Consumer Behavior
21
Top Five Toothpaste Brands in Mumbai
The Indian consumers are noted for the high degree of value
orientation. Such orientation to value has labeled Indians as one of
the most discerning consumers in the world. Even, luxury brands
have to design a unique pricing strategy in order to get a foothold in
the Indian market.
Indian consumers have a high degree of family orientation.
This orientation in fact, extends to the extended family and friends
as well. Brands with identities that support family values tend to be
popular and accepted easily in the Indian market.
Indian consumers are also associated with values of
nurturing, care and affection. These values are far more dominant
that values of ambition and achievement. Product which
communicate feelings and emotions gel with the Indian consumers.
Apart from psychology and economics, the role of history
and tradition in shaping the Indian consumer behavior is quite
unique. Perhaps, only in India, one sees traditional products along
side modern products. For example, hair oils and tooth powder
existing with shampoos and toothpaste.
22
Top Five Toothpaste Brands in Mumbai
2.4 Different segments of Indian consumers
The Socialites:
They are always looking for something different. They are the
darlings of exclusive establishments Socialites are also very brand
conscious and would go only for the best known in the market.
The Conservatives:
The Conservatives belong to the middle class. The conservative
segment is the reflection of the true Indian culture. They are
traditional in their outlook, cautious in their approach towards
purchases; spend more time with family than in partying and focus
more on savings than spending.
The Working Women:
The working woman segment is the one, which has seen a
tremendous growth in the late nineties. This segment has opened
the floodgates for the Indian retailers. The working woman today
has grown out of her long-standing image of being the homemaker.
23
Top Five Toothpaste Brands in Mumbai
2.5 Increasing Awareness of Indian Consumers
Over the years, as a result of the increasing literacy in the
country, exposure to the west, satellite television, foreign
magazines and newspapers, there is a significant increase of
consumer awareness among the Indians. Today more and more
consumers are selective on the quality of the products/services.
This awareness has made the Indian consumers seek more and
more reliable sources for purchases such as organized retail chains
that have a corporate background and where the accountability is
more pronounced. The consumer also seeks to purchase from a
place where his/her feedback is more valued.
Indian consumers are now more aware and discerning, and are
knowledgeable about technology, products and the market and are
beginning to demand benefits beyond just availability of a range of
products that came from ‘trusted’ manufacturers. The Indian
consumers are price sensitive and prefer to buy value for money
products.
24
Top Five Toothpaste Brands in Mumbai
2.6 Marketing Strategies
Online Marketing
Celebrity Influence
Quality Oriented Outlets
Freebies
Eco-Friendly Products
2.7 Changing Trends in Indian Consumer Behaviour
Bulk Purchasing
Trendy Lifestyles
Buyers’ Market In The Making
2.8 Consumer Behaviour towards different toothpaste:
There are three major brands of toothpaste in India, viz. Colgate,
Pepsodent and close up. All three of them compete with each other to
capture maximum market share. In order to achieve this, they not only
target children as consumers but also feature them in their
advertisements to attract other young consumers.
Colgate, for e.g., targets young children in the age group of 5 to 12
and offers free cartoon booklets along with toothpastes. Pepsodent
vies for the same consumer segment and depicts some children
relishing snacks, confectionery and sweets, while others are scolded
by their mothers for having done the same thing.
25
Top Five Toothpaste Brands in Mumbai
This advertisement makes children believe that consumers
who use Pepsodent are immune to any tooth decay because of the
superior quality of the product. This claim is unauthenticated and
attempts to mislead children.
Close Up, on the other hand, does not perceive children as its
target audience. Instead, it targets teenagers and the youth. It creates
a brand image of confidence and popularity for young consumers
between the age group of 16-30. Its advertisements constantly
feature successful friendships and romances between Close-Up
users.
Millions of rupees are spent on advertising a product which
costs as little as Rs 30 and is considered ordinary by most
consumers. From pushing toothpaste on neem sticks to advertising
in the Kumbh mela, the market can go to any extent to boost its
sales. After a point, the sales tend to stagnate.
This negative development is offset by constantly repackaging
the present product and introducing new products. For instance,
Colgate has a number of brands in the market, like Colgate Total,
Colgate Dental Cream, Cibaca, Colgate Gel and Colgate Herbal.
26
Top Five Toothpaste Brands in Mumbai
Chapter.3
Top Five Toothpaste Brands
27
Top Five Toothpaste Brands in Mumbai
Top Five Toothpaste Brands
The objective of this chapter is to focus on the top five toothpaste
brands in Mumbai. The top five toothpaste brands are as follows
3.1 Colgate Dental Cream
Colgate Dental Cream is the most widely distributed oral care
brand in India has a market share of 34% in value terms. It was
revitalized in 2003 with an improved germ fighting formulation. Its
anti-bacterial ingredient has been boosted to offer superior germ
fighting efficacy.
These improvements come in addition to its calcium and
minerals formula that helps repair weak spots on teeth and locks in
additional calcium and essential minerals to make teeth stronger than
ever before.
28
Top Five Toothpaste Brands in Mumbai
3.2 Close-Up Active Gel
Launched in 1975, Close-up was the first gel toothpaste in India. It has
since then undergone periodic relaunches. In 2004, Close-up was
relaunched with a bang. And this time it was packed with the power of
Vitamin Fluoride System – a powerful mix of Vitamins, Fluoride,
Mouthwash and Micro whiteners, the perfect combination of
ingredients for fresher breath and stronger, whiter teeth. Close-up is
now the first Gel toothpaste with Fluoride in Indian Market. Current
market share stands at 14%.
3.3 Pepsodent Complete 10
Pepsodent, the second offering from HLL with a market share
of 11% was launched in 1993 and was the first toothpaste with a
29
Top Five Toothpaste Brands in Mumbai
unique antibacterial agent to address the consumer need of checking
germs even hours after brushing.
Pepsodent has always been regarded as a mother’s oral health
care ally and has been associated with inculcating good dental habits
amongst kids. Currently the brand is championing night brushing
habits amongst kids through its latest TV commercial. The thrust is on
making brushing at night a fun activity for kids. The brand plans to
continue with its initiatives to promote healthy brushing habits.
3.4 Colgate Cibaca Top
Colgate Cibaca Top is currently the fourth largest brand with 5.7%
Market Share. (Please see Page 9 - 5.9 for details).
3.5 Colgate Fresh Energy Gel
The Company launched new Colgate Gel Toothpaste in 1991.Colgate
Fresh energy contains icy cool gel which leads to mouth coolness and
30
Top Five Toothpaste Brands in Mumbai
minerals which make teeth stronger. It has a market share of 3%. The
Colgate Fresh Energy Gel advertising campaign launched in 2001
used an innovative catch phrase – “Talk to Me” and used television,
outdoor and online media to connect with the youth. The company
continued to build on its highly successful campaign and re-launched
it with a new flavour in a transparent tube, a first for the category in
India.
3.6 Other brands
A) Anchor
Anchor belongs to Anchor Health and Beauty Care (AHBC), a
part of the Anchor Group (makers of Anchor Electrical
switches).Anchor forayed into the FMCG market with the launch of
Anchor White Toothpaste, which was positioned as India’s first
British Dental Health Society certified 100 per cent vegetarian
toothpaste, in 1997. In fact this proposition had so strong a consumer-
pull that by 2002 it was the number three toothpaste brand.
31
Top Five Toothpaste Brands in Mumbai
In 2006, Anchor decided to directly compete with Colgate
Dental Cream, thereby differentiating itself from the LPP segment. It
significantly upgraded its product bundle, both in terms of superior
formulation (almost parity to CDC) claims and by the development of
an All-round Protection sub brand. This is currently endorsed by
Dravid with strong TV support.
B) Babool
Babool originally a Balsara product was acquired by Dabur last
year. Babool straddles the economy and herbal platforms. Its natural
toothpast contains ayurvedic and medicinal benefits of the Babul tree,
'Acacia Arabica’. While Babool still pursues an aggressive promo
strategy, it has also upgraded its bundle ever since the acquisition, by
putting the Dabur brand on its pack and signing up Vivek Oberoi as a
brand ambassador.
C) Ajanta
Ajanta toothpaste is an offering from the personal care division
of Ajanta Clock Manufacturing Company. With aggressive pricing as
its USP, the company decided to do a Nirma in the toothpaste
32
Top Five Toothpaste Brands in Mumbai
Industry. Originally priced at one-third of a Colgate or a Pepsodent,
Ajanta rewrote the rules of the game for oral care products. It targeted
its offering in the low price, mass-market segment.
3.7 Brand wise Market Share
Table 3.7.1: Brand Share (Value)
Brand
Share%
Colgate
Dental
Cream
Pepsodent
(all
variants)
Cibaca
Top
Colgate
Fresh
Energy
Gel
Close-up
(all
variants)
Apr-
Mar06
33.8% 16% 5.7% 3.3% 11%
Table 3.7.2: Brand Share (Volume)
Brand
Share%
Colgate
Dental
Cream
Pepsodent
(all
variants)
Cibaca
Top
Close-up
(all
variants)
Anchor
Apr-
Mar06
32% 15% 10.3% 8.5 4.5
33
Top Five Toothpaste Brands in Mumbai
A) Category Media Spends (in Rs. crs.)*
Period Spends
March04 575
March05 570
March06 866
Apr-
Mar06
Colgate
Dental
Cream
Pepsodent
10
Close-
up
Active
Gel
Colgate
Advance
Whitening
Pepsodent
Germi-
check
Total
spend
159 107 92 67 65
T.V. 157 107 92 67 65
Print 2 0 0 0 0
34
Top Five Toothpaste Brands in Mumbai
B) Current Communication
BRAND TAGLINE PROPOSITION
Colgate “Bhartiya
dentists’ ki
number one
pasand.”
Colgate is the expert (the last
word) on dental care & provides
you with 12 hour protection
safeguarding you against 12
common tooth problems.
Pepsodent “Pepsodent, raat
bhar…dishum
dishum.”
With Pepsodent on guard parents
no longer have to worry because
brushing with pepsodent at night
ensures protection of their
children’s teeth the whole night
through.
Close-Up “Vitamin floride
system wala naya
Close-Up.”
Vitamin floride has three fold
benefits such as: 1)Whitens
yellow teeth,
2)Freshens your breath,
3) Makes your teeth strong.
Meswak “Meswak
toothpaste.
Formula sirf
Bharat ke paas
hai.”
Proud to use an Indian brand
Babool “Subah babool hi
to din tumhara.”
Babool’s nature & sweet
peppermint test enable you to
face life head on.
35
Top Five Toothpaste Brands in Mumbai
Anchor “Naye zamaane ki
nayi suraksha.”
Advanced formula that protects
one tooth from germs & keep
them strong.
3.8 Survey Report & Data Analysis:
According to survey following data was collected:
Type of toothpaste
54% of people use Colgate
19% of people use Close-up
17% of people use Pepsodent
7% of people use Cibaca
3% of people use others
36
Top Five Toothpaste Brands in Mumbai
Chapter.4
ANALYSIS OF TOOTHPASTE
BRANDS
37
Top Five Toothpaste Brands in Mumbai
4.1 Colgate Palmolive (INDIA) Ltd. {CPIL}
A) Introduction of company:
Colgate-Palmolive Company is a U.S. diversified
multinational corporation focused on the production, distribution
and provision of household, health care and personal products, such as
soaps, detergents, and oral hygiene products (including toothpaste
and toothbrushes). Under its "Hill's" brand, it is also a manufacturer
of veterinary products.
• Name: Colgate-Palmolive Company
• Location: New York
• Industry: Consumer products
• Products/Services: Oral care, personal care, home care, and pet
nutrition
• Revenue: US$11.3 billion
• Employees: 35,800
• Web Site: www.colgate.com
38
Top Five Toothpaste Brands in Mumbai
Following Table / Chart show Net sale of colgate
No. of year
Colgate Entered as a premium brand, Replaced imported raw
material with material from local suppliers Colgate 12 variations of
products, including Colgate Herbal Salt, Colgate Grow market share
from 7% to 15% over just two years Increase margin by 13.6% over
five years
Colgate-Palmolive (India) Limited is India's leading provider of
consumer products sold under nationally recognised brand names as
Colgate (scientifically proven oral care products that have become an
YEAR Rs.(crores) Increase in
Percentage
2003-04 939 -
2004-05 964 +2.7%
2005-06 1,124 +16.6%
2006-07 1,295 +15.2%
39
Top Five Toothpaste Brands in Mumbai
essential part of daily oral hygiene and therapeutic oral care),
Palmolive (personal hygiene and skin care products) and Axion
(household care). Colgate has been ranked India's # 1 brand across all
categories for eight out of nine years (1992 - 2001) by the A&M-
MODE annual survey of India's Top Brands.
Market share position of Colgate Palmolive (INDIA) Ltd in 2001 is
summarized below
PRODUCTS Percentage
%
Toothpaste 50.85%
Toothpowder 48%
Toothbrush 31%
While market share of Colgate Dental Cream dropped from
41% to 38.5% in 2001, other has gained, like Herbal from 0% to
2.4%, Cibaca Top from 0% to 4 – 5%. Thus overall, company market
share in toothpaste has not dropped. Company will continue to focus
on profitable growth, because after all it is bottom-line that matters.
Company has been selectively raising prices of products
depending on market conditions. At the same time, volumes have also
been growing in middle and premium segments. Strategy is that
company has many homes where dual Colgate products are used. E.g.,
variants of toothpaste used by younger people and children and
toothpowder by older people.
There will not be let go on Advertisement and Sales promotion
spend, as this is an essential investment in strengthening the brand. 5-
40
Top Five Toothpaste Brands in Mumbai
6 years ago, CPIL was spending just 7-8% of turnover on
Advertisement and Sales promotion. That was not sufficient.
Company need to spend more on Advertisement and Sales promotion,
as competitors are likely to remain aggressive. In addition to existing
players like HLL, Dabur and now Electric switch makers "Anchor"
becoming very aggressive. Anchors have gained more than 1% of
market share from 1.8% to 3%.
In future, company expects expenditure on Advertisement and
Sales promotion as a proportion to sales will almost remain the same.
There could be periodic variations. However, there won’t be
disproportionate increase in Advertisement and Sales spends. Besides,
improving productivity of Advertisement and Sales promotion will
ensure that same amount of spending will give higher revenue growth
in future.
Company is projecting to grow high in urban markets rather
than in rural ones. Penetration level has been increasing for the
category as a whole. For CPIL, penetration level for toothpaste is 80 -
85% in urban markets, whereas in rural markets it is 35 – 40% for
toothpowder. National penetration for toothpaste is 40 - 45%.
Including toothpowder, it will be higher than that.
In addition to pure advertisement expenditure on different
media, there are several promotional schemes like price off, extra
quantity at same price, incentives to dealers for bulk quantity picking,
giving some add-on free with product, etc. For the category as a
whole, nearly 19 – 25% of sales would be coming from such
promotional schemes, whereas in case of CPIL, it is 15 - 20%.
Balance sales takes place across the retail counters at MRP.
41
Top Five Toothpaste Brands in Mumbai
In near-term, company expects to continue to grow at 8-10%
per annum. If rural economy picks up, company can grow faster,
without matching increase in Advertisement and Sales promotion
spend
During Oral Health Month 2007, Colgate-Palmolive (India) has
used a 360 degree approach to raise awareness through a combination
of television, print, radio, hoarding, online ads and a series of below-
the-line activities.
Colgate-Palmolive (India) Limited is India’s leading provider of
scientifically proven oral care products with multiple benefits at
various price points. The range includes toothpastes, toothpowder and
toothbrushes under the 'Colgate' brand
Colgate Oral Pharmaceuticals have become an essential part of
daily oral hygiene and therapeutic oral care in India. The Company
also provides a range of personal care products under the 'Palmolive'
brand name. Colgate has been ranked as India’s Most Trusted Brand
across all categories for four consecutive years in 2003 to 2007
B) History of Colgate- Palmolive (India)
Ltd.:
42
Top Five Toothpaste Brands in Mumbai
1937 - The Company was incorporated on 23rd September, as a
private limited company. The Company Manufacture and market
dental care products (dental cream and tooth powder), hair care
products (hair oils, shampoos, brilliantine) and other personal care
products such as shaving creams, and lotions, face creams, baby
powder, talcum powder, etc. The products are marketed under the
trade marks "Colgate". "Palmolive", "Halo" and "Charmis". - A
distribution set up was also developed on an all-India basis with
warehouse facilities in Mumbai, Chennai and Calcutta.
Colgate-Palmolive Company, U.S.A. supplemented this
reinvestment by providing, technical assistance, new product
information and its worldwide developments in quality dental care and
other personal care products. The Company has its own research and
development facilities.
1978 - The object of the offer for sale of shares made to the
Indian public during November was to reduce the non-resident
holding to 40%. This offer for sale was made by Colgate-Palmolive
Company, U.S.A., to the resident-Indians public to comply with
FERA, 1973. As a result, 11, 79,000 No. of equity shares of Rs 10
each were offered at a premium of Rs 15 per share. Shares sudivided
on 29.9.1978. 19, 50,000 bonus shares were then issued in prop.
130:1.
1982 - 19, 65,000 Bonus equity shares issued in prop. 1:1.
43
Top Five Toothpaste Brands in Mumbai
1985 - 39, 30,000 bonus shares issued in prop. 1:1.
1987 - 78, 60,000 bonus shares issued in prop. 1:1.
1988 - The Company received a licence for producing 24,000
tonnes per annum of fatty acids. It also registered with DGTD for
production of 30,000 tonnes of toilet soap per annum.
Orders were placed for setting up a fatty acid plant with an
annual capacity of 20,000 tonnes and a toilet soap plant with an
annual finishing capacity of 15,000 tonnes.
1989 - 1, 57, 20,000 bonus shares issued in prop. 1:1.
1991 - The Company launched new Colgate Gel Toothpaste,
Palmolive Extra Care and new Palmolive soap and relaunched a high
quality colgate Plus and other toothbrushes.
- 1, 88, 64,000 bonus shares issued in prop. 3:5.
1993 - The Company participated in the global launch of Colgate
Total Toothpaste and Asia/Pacificregional launch of Protex Soap.
The Company proposed to negotiate with appropriate global
partners for the necessary technology needed to implement vertically
integrated projects and diversification into high technology areas to
effect import substitutions for a range of materials.
During September, 112,92,735 No. of equity shares of Rs 10
each were allotted at a premium of Rs 50 per share to Colgate
Palmolive Company, U.S.A. with a view to raise its shareholding to
44
Top Five Toothpaste Brands in Mumbai
51% of the subscribed capital. 615, 96,735 bonus shares issued in
prop. 1:1.
1994 - The Company acquired the oral hygiene business of
Hindustan Ciba-Geigy Ltd. The Company offered 123, 19,347 No. of
equity shares of Rs 10 each at a premium of Rs 10 per share on Rights
basis in the proportion 1:10 (all were taken up). 2,40,000 shares of Rs
10 each were issued to the employees at a premium of Rs 10 per share
on an equitable basis (Details of allotment non-known).
Also, 2,49,795 No. of equity shares of Rs 10 each at a premium
of Rs 1 per share were issued to Colgate Palmolive Co., U.S.A., on
preferential allotment basis to maintain their shareholding at 51%.
1996 - The Company launched Colgate fresh stripe tooth paste
and palmolive naturals soap in personal care products segments,
Keratin Treatment Shampoo and Palmolive optima in Hair care
segment during the year. Axion dishwashing paste was test launched
in Maharashtra.The Company established a modern facility at
Aurangabad to manufacture Dicalcium phosphate, a key ingredient for
toothpaste.
Passion Trading & Investment Co., Ltd., Jigs Investments Ltd.,
Multimint Leasing & Finance Ltd. and Camelot Investments
Company Ltd. are subsidiaries of the Company.
The Company established a wholly-owned subsidiary at
Hetanda in Nepal in June 1988. The facility will manufacture tooth
paste and tooth powder initially.
45
Top Five Toothpaste Brands in Mumbai
1998 - The Company received a licence for producing 24,000 tonnes
per annum of fatty acids. The company paid a dividend of Rs.4.50 per
share in 3 instalments first interim Rs.1.60 second interim Rs.1.60 and
final of Rs.1.30 per share. - Colgate is the market leader in oral care
with its toothpaste commanding a market share of over 60 per cent,
followed by Hindustan Lever with around 35 per cent.
The Monopolies and Restrictive Trade Practices Commission
(MRTPC) has, in an interim order, directed Colgate to withdraw its
long-standing "Suraksha Chakra" advertisement within two weeks.
HLL has taken Colgate to the MRTPC over claims made by its
recently launched toothpaste - Colgate Dental Cream Double
Protection (CDC-DP) - a variant of the popular Colgate Dental Cream
(CDC).
Colgate-Palmolive is one of the few multinational stocks which
have failed to outperform the market in the recent past. In its recent
launch the company has launched Colgate Double Protection tooth
paste for the The Company received a licence for producing 24,000
tonnes per annum of fatty acids.
The company paid a dividend of Rs.4.50 per share in 3
instalments first interim Rs.1.60 second interim Rs.1.60 and final of
Rs.1.30 per share. - Colgate is the market leader in oral care with its
toothpaste commanding a market share of over 60 per cent, followed
by Hindustan Lever with around 35 per cent.
The Monopolies and Restrictive Trade Practices Commission
(MRTPC) has, in an interim order, directed Colgate to withdraw its
long-standing "Suraksha Chakra" advertisement within two weeks.
46
Top Five Toothpaste Brands in Mumbai
HLL has taken Colgate to the MRTPC over claims made by its
recently launched toothpaste - Colgate Dental Cream Double
Protection (CDC-DP) - a variant of the popular Colgate Dental Cream
(CDC).
Colgate-Palmolive is one of the few multinational stocks which
have failed to outperform the market in the recent past.
In its recent launch the company has launched Colgate Double
Protection tooth paste for the entire family.
Colgate-Palmolive has finally signed up with the depository
even as Sebi has sent out a note of warning to the remaining six
companies.
Colgate-Palmolive (India) Ltd, a market leader in the toothpaste
segment, suffered heavy setback during the first half of the current
year due to stiff competition.
The company has established the Dicalcium Phosphate (DP)
manufacturing facility at Aurangabad.
Colgate-Palmolive had launched the ad campaign for its new
product Colgate Double Protection toothpaste in competition with
rival brand Pepsodent from the Hindustan Lever
1999 - The corporate has launched the `Colgate Double
Protection', `Colgate Total' and `Colgate Sensation'. The company
started a new research and development centre, a manufacturing
facility in Nepal, and completed a dicalcium phosphate facility in
Aurangabad.
47
Top Five Toothpaste Brands in Mumbai
A three-judge bench of the Supreme Court allowed the appeal
of Colgate Palmolive (India) Ltd with regard to the use of `Suraksha
Chakra' in the advertisements of the company's toothpaste.
The re-launch of Pepsodent in July, and launch of Rs 3.50 a
sachet of Pepsodent with a convenient nozzle has helped Colgate-
Palmolive to increase its market share.
2000 - The Company has introduced two new variants to its
Palmolive Naturals sopa range and has revitalised its sandalwood
soap. The Company has launch of two new variants in its Palmolive
Naturals range of beauty soap lime and milk cream The Company has
relaunched Colgate Gel as `Colgate Fresh Energy Gel.'
Colgate-Palmolive (Nepal) Pvt. Ltd., a wholly owned
subsidiary of Colgate-Palmolive (India) Ltd, has informed the stock
exchange that a small group forcibly entered the plant of Colgate-
Palmolive (Nepal) at Hetauda industrial estate and denoted two
explosive devices The Company has launch of its International
Palmolive Shave Gel and Palmolive Shave Foam in response to
growing consumer interest in skin conditioning benefits
2001 - Colgate-Palmolive (India) Ltd. has launched its biggest
national-level consumer promotion involving its toothpaste,
toothbrush and soaps. Colgate-Palmolive (India) Ltd. has launched
international cleaning product Ajax in the Indian household products
category for summer.
2002 - Graeme Dalziel, appointed as MD Of Colgate Palmolive
India for a period of 5 years Colgate has hiked its market share from
45.9% to 50.2% in the toothpowder segment with the new strategies
48
Top Five Toothpaste Brands in Mumbai
of consumer centric promotional initiatives, impactful visibility and an
add campaign featuring sunil shetty.
Percept Demark has signed a deal with Colgate Palmolive, to
offer miniature of cricket stars in the dental pack.Colgate Palmolive
has succeeded in the appeal challenging the MRTP Commission
order.Colgate-Palmolive launched its first miniature collectibles of
India's Top Cricketer's 'collect your cricketer' promotion.
2003 - Colgate-Palmolive has divested its stake in its subsidiary
Camelot Investment Company. Colgate has decided to concentrate on
its non-oral care division, by launching an international range of
Palmolive Aeromatherapy persoanl care products.
Introduced 'Colgate Simply White', at-home teeth whitening gel
which is priced at Rs.600 for 10ml. -Colgate has relaunched colgate
dental cream with what the company calls a fresher taste and
improved germ-fighting performance.The Company commences
shipment of the "New Superior" Colgate Dental Cream
The Herbal range was expanded with the launch of a "Herbal
White" toothpaste for whitening combined with the benefits of Herbal
ingredients"Navigator Plus" was launched with its unique
characteristics as a premium toothbrush
An all new range of Aromatherapy products - Shower Gel,
Liquid Hand Wash and Bar Soap in 2 variants each were launched
under the "Palmolive" brand as a major thrust in the Personal Products
portfolio
49
Top Five Toothpaste Brands in Mumbai
Colgate Palmolive Nepal Ltd a wholly owned subsidiary of the
Company has temporarily suspended its operations in view of
deterioration in general security situation in Hetauda
2004 - Vikram Kaushik resigns from the Board of Colgate
Palmolive India Colgate-Palmolive launches shower gel variant
Unveils Palmolive Aroma Sensual Shower Gel, enriched with a blend
of Orchid extract and pure essential oils of jasmine and rose, the gel is
priced at Rs 90 for a 250 ml pack. Ties up with IDA to creat promote
oral health campaign
2005 - Colgate-Palmolive unveils Colgate Active Salt toothpaste
C) Brand Update of Colgate
Colgate has started aggressively promoting its niche variant
Colgate Sensitive toothpaste. This is a unique variant aimed at the
segment of customers having tooth/gum problem.According to a
report more than 80% of Indians have dental problems like gingivitis.
Sensitive is a variant that specifically address this segment. The
brand is said to give relief from pain after continuous use.
Colgate sensitive also has anti plaque and anti-tartar properties.
The promotion of Colgate Sensitive is to popularize the therapeutic
segment which is not much popular in India. Colgate uses its famous
and controversial tagline “No. 1 Brand Recommended by Dentists".
50
Top Five Toothpaste Brands in Mumbai
Colgate has every qualification to be in the number one because
of its ability to understand Indian consumer and innovate in terms of
the product and marketing mix.
Colgate People worldwide share a commitment to the three core
corporate values: Caring, Global Teamwork and Continuous
Improvement. These values are reflected not only in the quality of
products and the reputation of Company, but also in dedication to
serving the communities where company does business.
Colgate-Palmolive (India) Ltd., undertakes its corporate social
responsibility through a variety of effective programs. Since 1976, the
company has been delivering free oral health education to children of
rural and urban poor in partnership with Indian Dental Association
(IDA). Colgate's community outreach efforts have touched the lives of
millions of children, providing the information, insight and inspiration
they need for a healthy life and a healthy smile.
D) Corporate Social Responsibilities in Business:
Colgate's success is founded on the Company's core values of
Caring, Continuous Improvement and Global Teamwork. Evident in
all aspects of our business, these values are the driving force behind
everything we do. It is reflected in our commitment to providing safe,
high quality products that enhance the lives of consumers around the
world.
These values fuel our successful long-term efforts to create a
workplace where all Colgate people act with integrity and with respect
for one another. Colgate's goal is to help make our world a safer,
51
Top Five Toothpaste Brands in Mumbai
better, healthier place to live in. Making a difference in the world does
make a world of business sense.
E) Colgate endeavors:
Colgate-Palmolive India sponsors the Inter Mumbai Physically
challenged Cricket tournament along with Premnagar Sports Club.
With teams participating from all over Mumbai it gives the
participants a chance to showcase their talent, and compete in the
spirit of the game.
The Company encourages the physically challenged to explore
their talent in various sporting disciplines by sponsoring such events
and helping them to give their best. It is company constant Endeavour
to support such organizations that work for such worthy causes.
F) Disaster Relief:
{Colgate Rises to the Occasion}
Whenever there has been a National disaster, Colgate-
Palmolive India has always risen to the occasion.The 26th January
2001 earthquake saw the Company immediately distribute medicines
and blankets to those affected. This was followed by sending our
products to the victims.
Colgate distributed a complete household utensil kit with a
cooking stove to help rehabilitate needy families.To add to these
efforts, the Company also supported the efforts of FICCI - the
52
Top Five Toothpaste Brands in Mumbai
economic body that was doing things on a much larger scale with
other corporate supporting it.
G) Education:
{Partnership with Pratham}
Partnership with Pratham
Colgate supports Pratham, an NGO working in the field of
education of underprivileged children. Colgate has worked with
Pratham to set up libraries in economically backward areas to
encourage and inculcate the habit of reading among the children living
here. We have also supported training and development modules for
Pratham's volunteer base of over 10,000 people.
H) Health
(Colgate Cares)
Company three core values of Caring, Global Teamwork and
Continuous Improvement are put into action in company’s work as
well as in company’s communities.The results are better products and
a better quality of life throughout the Colgate world.
The Colgate Bright Smiles, Bright Futures Oral Health
Educational Program worldwide was developed to teach children
positive oral health habits of basic hygiene, diet and physical
53
Top Five Toothpaste Brands in Mumbai
activity.This Program also encourages dental professionals, public
health officials, civic leaders and most importantly, parents and
educators to come together to emphasise the importance of oral health
as part of a child's overall physical and emotional development.
Under this Program conducted by Colgate-Palmolive, India
children in primary schools receive instructions in dental care from
members of the dental profession nominated by the Indian Dental
Association. Education is imparted with the aid of audio-visuals and
printed literature created by the company. Free dental health care
packs, including samples, are also distributed by the company to
encourage the practice of oral hygiene. {Teachers Training
Program}, is an integral part of the School Dental Health Program,
conducted regularly across the country to promote preventive dental
health care.
Training in the basics of oral health care is imparted to school
teachers. This helps them play a significant role in preventive oral care
by inculcating good oral care habits in the students. The Teachers
Training Program forms a vital part of the Colgate Bright Smiles,
Bright Futures Program.
I) Colgate-IDA Activities:
Colgate actively and closely supports the efforts of Professional
Dental Associations to continuously update the knowledge and skills
of dental professionals through various fora. Colgate today is the
major sponsor of almost all Dental Conventions, Seminars,
Conferences and specialized workshops. In collaboration with the
Indian Dental Association, IDA-Colgate Continuing Dental Education
54
Top Five Toothpaste Brands in Mumbai
Programs are regularly organized all over the country, exposing the
practicing dental professional to the latest advances in dentistry.
J) Colgate Lends a Helping Hand:
"Our Children" - a trust for street children - has been a
recipient, as has "Citizen", an Indian NGO working for the cause of
thalassaemia with children and Tata Memorial Hospital for the
Pediatric Cancer Patients.
Payroll Giving (Association with United Way of Mumbai)
Colgate has partnered with United Way of Mumbai, a charitable
trust established by leading corporates in Mumbai, to introduce a
"Payroll Giving" program. Under this program, Colgate employees
have contributed to a variety of causes including education, early
childhood development, and support for underprivileged women and
civic issues.
Making a difference with Greeting Cards
Every year, Colgate supports a different cause when it sends out its
greeting cards. Some of the causes company has supported are: “services
for children and families in need (through Prasad Chikitsa Charitable
Trust)” aid for the deaf-blind (through Sense International India) “support
for mentally and physically challenged children of Armed Forces
personnel (through Asha schools).
This Oral Health Month 2007, Colgate is committed to support
the treatment of oral cancer patients in association with Cancer
Patients Aid Association.
55
Top Five Toothpaste Brands in Mumbai
By collecting pledges from every individual that we contacted
through the various Oral Health Month initiatives, we involved them in
our noble cause to spread awareness of the support Oral Cancer requires.
The mission of OHM is ‘Zero Tooth Decay’ and while fulfilling this, all
participants of the OHM activities helped to 'Spread a Smile' to the Oral
Cancer patients
K) Culture and Values
Colgate people are one of the company's greatest resources. They
contribute towards building strong global growth, building market
leadership, and increasing profitability. As one of the most widely
recognized consumer products companies in the world, Colgate
attracts many talented people. Bringing the best people to Colgate is
step #1 to 'Becoming the Best Truly Global Consumer Products
Company
'An Equal Opportunity Employer:
It is the policy and practice of Colgate-Palmolive to provide
employment opportunities to all qualified persons on an equal basis.
The company does not discriminate against any employee or applicant
for employment because of race, religion, sex, community, age,
marital status, or any other characteristic protected by law in any of
the terms or conditions of employee
56
Top Five Toothpaste Brands in Mumbai
4.2 CLOSE UP
A) Introduction:
Product Name: Close-Up Toothpaste (Fluoride Gel and Fluoride
Mint Gel)
Other Names: None
Product Type/Use: Toothpaste
Description: Clear, green or red gel.
Unlike the typical opaque, mint-flavored toothpaste of the time,
Close-Up® debuted in 1967 as a clear red gel with a spicy cinnamon
taste and mouthwash right in the toothpaste. A Unique brand identity
was developed, with Close-Up® positioned as the toothpaste that
gives people confidence in those very "up close and personal"
situations. First toothpaste in US to combine mouthwash and
toothpaste in one formula First gel toothpaste First toothpaste to
feature a NASCAR driver on the box Jeff Gordon) Close-up is the
original youth brand of India
The first brand targeting youth in the oral care market, with an
edgy and youthful image which stays relevant till date. Ever since its
launch in 1975, Close-up has broken every rule in the book on how
toothpastes should behave! Close-up was the first gel toothpaste to be
launched in India and has led the gel toothpaste segment ever since In
2004, Close-up was re-launched with a bang. And this time it was
57
Top Five Toothpaste Brands in Mumbai
packed with the power of Vitamin Fluoride System – a powerful mix
of Vitamins, Fluoride, Mouthwash and Micro whiteners, the perfect
combination of ingredients for fresher breath and stronger, whiter
teeth. Close-up became the first Gel toothpaste with Fluoride in the
Indian Market! The brand umbrella also includes Closeup Lemon
Mint, gel toothpaste with the whitening benefits of lemon.
B) CLOSE-UP TOOTHPASTE RELAUNCHED:
MUMBAI, May 21, 2004: Hindustan Lever Limited (HLL) has
realunched Close-up with a three-in-one benefit. New Close-up Active
Gel now has the Vitamin Fluoride System, the only such toothpaste in
India, which offers triple benefits of fresher breath and stronger and
whiter teeth.
The packaging of new Close-up Active Gel with Vitamin
Fluoride System has been completely changed. It comes with a stand-
up cap and a metallic tube. The stand-up cap makes storage of the tube
easier Speaking on the prelaunch of Close-up, Mr. Sanjiv Kakkar,
HLL’s Vice President – Oral Care, said, “Close-up was the country’s
first gel toothpaste. Close-up was also the country’s first toothpaste to
offer the benefit of fresh breath. In keeping with this tradition of
offering discontinuous benefits, we have once again relaunched Close-
up to offer the best and the most modern mix offering triple benefits
through a single toothpaste.”
New Close-up will be available at the same price-points -- 150-
gm tube at Rs.42.00, 80-gm at Rs.25 and 40 gm at Rs.12.50.
Launched in 1975, Close-up was the first gel toothpaste in India. It has
since then undergone periodic relaunches. The Close-up franchise
58
Top Five Toothpaste Brands in Mumbai
comprises Close-up Active Gel (red) with Vitamin Fluoride System,
the mother variant, and Close-up Lemon Mint, a transparent gel in a
transparent tube and a window carton. Close-up Lemon Mint had been
launched in 2002
C) Advertising Strategy:
The Close Up ad jingle - 'Kya aap Close Up karte hai?' for a
while now. The latest on that front is the slightly different version of
the same - 'Kya aap "naya" Close Up Karte Hai?' And that's not where
it ends. Apart from a new television commercial (TVC) to relaunch
the Close Up red gel toothpaste, Hindustan Lever Limited (HLL) is
also looking at a holistic multi media campaign for which innovation
will be the buzz word.
For starters, if one logged on to the Yahoo! India, Sify or Indiatimes
portals yesterday (4 June), one found a stunning in-your-face red page
branded by the new Close Up. The home pages of these three websites
were totally branded by the splashy new Close
If that was not enough, Close Up has also tied up with AXN's
Alias. The connection: Just like the protagonist in Alias - Jennifer
Garner - changes her identity time and again to tackle different
situations, the tie up with it signifies that Close Up too has changed
now and is in a brand new avtaar! AXN assistant VP marketing and
sales Rohit Bhandari said, "The basic essence of branding Close Up
with Alias was to bring out the element of change that Close Up has
gone through and also to match the change of identities that Garner
goes through in Alias.”
59
Top Five Toothpaste Brands in Mumbai
Mindshare Fulcrum (the media planning and buying agency for
HLL) business group head Atit Mehta said, "There was no thematic
communication for the Close Up brand in 2003. Then in January this
year, close up came out with the new ad for Close Up. Now close up
have relaunched the brand and the entire packaging has changed. The
communication close up wanted to send out is that if Close Up can
change... anything in the world can change." The agency brainstormed
on how to communicate the change Close Up had undergone.
Channels and programmes were identified and a whole lot of activities
are in the pipeline similar to one with AXN. Mehta refused to provide
any clue to what was in store though. Talking about the tie ups with
the portals he said, "close up have made the entire Yahoo! India,
Indiatimes and Sify sites red in colour thereby communicating that
Close Up can change your world. Close up also have brand placement
in a Tamil movie Madura which will release in the first week of July."
On Yahoo! India, the Close Up campaign appeared for a day on
4 June and will be back again next week on 7th, 9th and 11th June.
Red's the
colour-
Jennifer
Garner in
AXN's Alias
The revamped
Close Up toothpaste
pack
60
Top Five Toothpaste Brands in Mumbai
Apart from branding of the entire site for a day, there will be banners
on all three websites mentioned earlier.
On 26 July 2004 Close-Up, one of India's leading toothpaste
brands, has tied-up with Boney Kapoor's forthcoming movie Kyon!
Ho Gaya Na, a romantic comedy set for release in August.
As part of this promotion, Close-Up will not only get branding
opportunities in all the movie promotions and communications, but
also showcase its latest ad before the movie commences
D) Close-Up Whitening: HLL plays shade card:
Hindustan Lever Ltd (HLL), which has just relaunched Close-
Up Renew as Close-Up Whitening, says the teeth whitening segment
is an “investment for the future” Close-Up first entered the whitening
segment with Renew in 1997, with the strategic intent to strengthen
the whitening leg of the architecture. The then advertising revolved
The Yahoo!
India homepage
branded by
Close Up on 4
June
The new
revamped
Close Up
61
Top Five Toothpaste Brands in Mumbai
around ‘goodbye yellow, hello white’. While it was an initial success
in certain key markets, overall the brand could not register the
requisite sales volumes. The company blames it on market slowdown
and too crop of low-priced toothpastes.
As per estimates, the whitening segment is seen to be rising in
developed markets like the US and Europe, where it is valued at Rs
1,500 crore. This is larger in size as compared to the total toothpaste
market in India.
HLL believes the same would ring true for India too, albeit in
the future. In order to firmly establish the brand’s credibility with the
new relaunch, HLL has leveraged the power of a ‘shade card’ as a
diagnostic tool. The relaunch idea is to introduce a mix capable of
building a category.
Says HLL category head - oral care (personal products) Mr
Pradeep Banerjee: “The idea behind the shade card is to empower the
consumer as a see-it-yourself kind of strategy. With the shade card,
consumers can and see and believe in promise, thus adding to the
credibility.” The strategy behind empowering consumers is also aimed
at reducing trial barriers. By providing a shade card, the company
62
Top Five Toothpaste Brands in Mumbai
hopes to generate more users into this niche segment.Even though the
whitening segment is predominantly an urban phenomenon, research
conducted by the company across the rural and urban spectrum
revealed that white teeth rank high on the priority list as compared to
other dental qualities. HLL has thus endeavoured to build this
category which, it feels, has a promising future considering that the
research findings peg “whiteness” as the prime concern among the
consumers, especially youth. At a price of Rs 19 for 50 gm and Rs 49
for 150 gm, Close-Up Whitening comes at a five percent premium to
the core categories of toothpastes.
The first phase of the advertising focuses on the relaunch of Renew
into Whitening. The outdoor campaign hinges on the baseline ‘no
white lies, just white teeth’ and ‘dazzling white teeth in just 4 weeks’.
The second phase will have a thematic base which generates
awareness among consumers regarding the true shade of their
teeth.Meanwhile, to support the franchise, the company has also rolled
out a Close-Up Whitening toothbrush priced at Rs 35 in a limited
geography.The marketshare of Close-Up toothpaste is about 16.5 per
cent. HLL’s overall toothpaste (Close-Up and Pepsodent) share stands
at 36.1 per cent
E) O&M to handle Close-Up account:
HINDUSTAN Lever Ltd has chosen O&M as the agency
responsible for the advertising of Close-Up toothpaste.
O&M will be responsible for the brand only in India while JWT
will continue to be the agency in other countries. Close-up was
introduced to the Indian market in the late 1980s.
63
Top Five Toothpaste Brands in Mumbai
According to HLL"As the brand looks ahead at future growth
opportunities and evolving aspirations of its target consumers, it is
examining all resources, including brand communication which are
integral to its future plans,"
In this context, HLL had asked a select group of advertising
agencies to share their views on the brand's future communication.
Recently, HLL shifted the Rs 50-crore Close-Up account from
JWT to Ogilvy & Mather India (O&M). Its new agency is on the
verge of rolling out a new campaign for the mother brand - Tingly
Red. Continuing to position Close-Up as a youth brand, Mr.
Pushpinder Singh, Senior Creative Director, O&M, said, "Close Up
will remain a youth brand. But at the end of the day since purchase
decisions are always made by the housewife, it will not be possible to
isolate her. Some amount of dichotomy will continue to straddle the
brand JWT
The idea is simple. Consumers will have to fill in some personal
details on the inside of any Close-Up pack. The empty pack could be
dropped in at collection boxes placed at convenient locations in
selected cities (or mailed in). A draw of lots will determine the lucky
winners who will be flown to Mumbai to participate in the Sky Pa
Introduced in Brazil, Lemon Mint as a flavour was adapted to
Indian taste and was launched late last year. HLL, for the first time,
also decided to innovate in the packaging for the brand and introduced
a transparent window to display its lemon mint variant.
As per ORG-Marg, Close-Up has a 17.5 per cent value share in
the Rs 1,400-crore toothpaste market. Launched in the late 1980's,
64
Top Five Toothpaste Brands in Mumbai
Close-Up was HLL's first gel toothpaste offering. Of late, the brand
has been in the limelight due to widespread speculation about
Unilever removing the brand from its portfolio
The biggest markets for Close-Up are in countries like the
country, Indonesia and Nigeria. HLL controls close to 33 per cent of
the oral care market in the country with Close-Up brand estimated to
do revenues of Rs 240 crore.
Close-Up’s initiative runs under the banner ‘Sky Party with
Hrithik Roshan’ this is part of a nationwide contest that commenced
on February 14, 2001, with a final scheduled on April 26, 2001.
The contest culminates in Mumbai with a star-studded dinner
and an airplane ride for 30 lucky winners with the famed film star on
board. No wonder colleges are abuzz with toothpaste talk.
4.3 Pepsodent:
A) Introduction:
Pepsodent was launched in 1993 by Hll to capture the
market from Colgate. Launched in the platform of Germ
fighting property, Pepsodent now have a marketshare of 17% in
the Rs2200 crore oral care markets
65
Top Five Toothpaste Brands in Mumbai
Pepsodent have experimented with its positioning althrough its
life. Initially Pepsodent was launched in the highly successful "long
lasting protection for hours after brushing" platform. In 1999-2000
Pepsodent tried to fight the market leader Colgate by shifting to
Benefits of germ fighting rather than Process of germ fighting. But the
positioning failed and Pepsodent had to come back to the old
positioning by 2001.
B) Advertising Strategy:
Pepsodent included the germ indicator to its pack in 2002
followed by an innovative Dental Insurance campaign which
reinforced the germ fighting position
HLL was trying hard to break the fort of Colgate which was
holding a massive 45- 50% market share in the oral care
market.Although Pepsodent and Close Up had together around 32% of
the market , it was not enough. Then came the regional brands like
Ajanta and Babool which really made a dent in the market share of the
leaders.
Hll struck back with the famous Dishum dishum campaign (that
won many accolades for the agency). The insight for this campaign
was that Mothers were really worried about the eating habits of their
kids. From that insight came the Big Idea “let Pepsodent fight germs
for you". The campaign and the smart pricing virtually killed the
regional brands in the oral care market.
Pepsodent knew that they should expand the total market of
tooth paste and decided to increase the market by increasing the usage
of the product. Thus came the Bhoot campaign that is currently on air.
66
Top Five Toothpaste Brands in Mumbai
Pepsodent aims to teach the kids to brush at night (with
Pepsodent ofcourse) .Research shows that brushing teeth at night can
reduce chances of tooth decay by 30%.
If HLL to be believed, 12 lakhs kids are brushing teeth at night now
and mothers are happy
Pepsodent is a brand that has been carefully crafted although it
struggled to find its soul, now the brand is all set to take off.
New Pepsodent, a relaunch of the old Pepsodent G and
Pepsodent 2-in-1 promised consumers throughout the length and
breadth of the country to do something which the other toothpaste
brands could not do, namely clean more than any other toothpaste.
It was the advertisements that Hindustan Lever Limited
launched that got the goat of its rival, Colgate-Palmolive: the
advertisement promised consumers that it would get protection form
tooth decay at 102 per cent more than any other leading brand in the
country.
67
Top Five Toothpaste Brands in Mumbai
C) Improving oral care health for over 30 years in Indonesia:
Pepsodent is the oldest and most well-known toothpaste
in Indonesia, since the beginning of its existence has always provided
more than just basic efficacy. Pepsodent was the first toothpaste
in Indonesia that launches fluoridated paste back in 1980s and the
only paste in Indonesia that actively educates and promotes proper
habit of brushing through school program and free dental check up
service. Pepsodent has completed its range product from basic
cleaning to complete benefit paste ever since.
D) Pepsodent School Program & Free Dental Check Up:
Pepsodent is the only toothpaste brand in Indonesia that really
put its mission into action. Cooperation with Indonesian Government
of Health and Education Departments and recognized by local dentist
association (PDGI), since 1990s Pepsodent has done School Program
which is until 2006 it has reached more than 3.2 million children
under 12 years old in all over Indonesia and the number still growing.
This program promotes proper and early habits of brushing teeth to
prevent any dental problems, especially cavities
Pepsodent understand that many parts of Indonesians have
dental problems and also faced with lower ratio of dentist and
population itself. That is why Pepsodent Free Dental
Check Up program is specifically designed to reach these
people by giving free dental treatment & education in fun and
approachable way so that with the program, the whole family can have
better oral health and good oral habit. It is also an effort to encourage
68
Top Five Toothpaste Brands in Mumbai
Indonesian people to go to dentist regularly as a part of cavity
prevention habit.
E) Pepsodent Night Brushing Campaign:
Habit & Attitude survey has indicated that only about 34 % of
Indonesian people brush their teeth before going to bed. Even from
clinical research found that in early morning bacterial counts
are multiplying two times faster at nightthan any other time in the day.
This implies that bacterial growth increases the most during the
night and can increase possibility of cavity. Recent evidence also
supports brushing with fluoride toothpaste before going to bed at night
due to its extended protect for a longer time at night.
That is why Pepsodent feel the need to use Night Brushing as
its health campaign to make Indonesian people brushing their teeth
before going to bed at night as a part of cavity prevention habit.
F) Innovation:
In 2006, Pepsodent have launched & relaunched its complete
range variant of New Pepsodent. Pepsodent Complete 12, which
offers a complete benefit but at an affordable prices. Offering larger
benefit for its consumer as a part of its effort to pursue its mission
Pepsodent Sensitive, which offers active ingredient that penetrates
through the teeth to relieve the pain from sensitive nerves inside teeth
& gum. Pepsodent Fighter Toothbrush By having these new
innovations, Pepsodent covers all range of oral health care for
consumers
69
Top Five Toothpaste Brands in Mumbai
G) Key facts:
Pepsodent is the leading brand in most Asian Countries
with Indonesia and India as the biggest market.In 2005 Pepsodent is
the only one of the toothpaste brand that recognized by FDI, World
Dental Federation in addition to local dentist association (PDGI).
H) Pepsodent in range:
Pepsodent Complete + Gum Care, Complete 12 + Pepsodent Herbal,
Pepsodent Milk Teeth Orange + Pepsodent Milk Teeth Strawberry
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 in February-May
2002, which allowed consumers to see the efficacy in fighting germs
for themselves. As a follow-up, in October 2002, Pepsodent offered
Dental Insurance to all its consumers to demonstrate the confidence
the company has in the technical superiority of the product.
70
Top Five Toothpaste Brands in Mumbai
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. Pepsodent's most
recent campaign aims at educating consumers on the need for germ
protection through the night.
Pepsodent is the unique toothpaste that has the combination of both
fluoride and tri-close. It has been clinically proven that Pepsodent
fights germs 1.5 times longer than ordinary toothpaste. Because of
these unique qualities it has become one of the leading brands in
Nepal within a short span of 4 years. Pepsodent germs check formula
"Fights Germs Longer Makes Teeth Stronger". Pepsodent has
introduced a range for complete dental care solutions with these
products.Gel for fresh and original flavor combined with germs check
paste makes brushing fun rather than a chore and teeth strongerLong
Lasting Protection Its advanced Germ check formula fights germs
even hours after brushing to give superior protection.
Long Lasting Freshness its Germ check Gel gives lasting
freshness
Pepsodent regular is available in following sizes and prices.
71
Top Five Toothpaste Brands in Mumbai
Pepsodent 30 gms Rs 10/-
Pepsodent 40 gms Rs 15/-
Pepsodent 80 gms Rs 30/-
Pepsodent 200 gms Rs 65/-
Healthy teeth require healthy and strong foundation- healthy gums.
Pepsodent G Gum care is the perfect daily use expert gum care
toothpastes, clinically proven to give healthier gums and reduce gum
bleeding significantly. Reduces recurrent gum bleeding by at least
90% Reduces plaque by 50% even 12 hours after brushing Reduces
tartar formation upto 71% Reduces malodor for hours after brushing
Contains Fluoride, clinically proven anti-cavity agent Contains 2
powerful anti-bacterial ingredients for effective plaque control is the
perfect daily use expert toothpaste for healthy gums and teeth
I) Pepsodent's offer to children:
Hindustan Lever Ltd's (HLL) Pepsodent toothpaste has
introduced games at McDonald's outlets. Gaming kiosks,
developed by indiagames.com, a gaming portal, have been
placed at 10 McDonald's outlets -- nine in Mumbai and one
in Pune. On purchase of a McDonald's Happy Meal, children
can play computer games at these booths. `Fun' games that
highlight killing of germs as a primary requisite. Every child
72
Top Five Toothpaste Brands in Mumbai
(in the age group 7-12 years) who visits the McDonald's
outlet and buys a Happy Meal will be entitled to a ticket that
allows it to play the games''. Helps get your teeth their
whitest. Special formula that helps prevents unsightly tartar.
Helps keep tartar from forming above gum line when used in
an ongoing daily program. Fluoride protection to help fight
cavities.
J) HUL launches Pepsodent Kids:
Mumbai, Nov. 16 Hindustan Unilever has entered the kids
segment in the toothpaste category under a new sub-brand —
Pepsodent Kids. Creating three new variants under the segment, the
FMCG Company has brought in Barbie, Superman and Tom & Jerry
to entice children Sporting Pepsodent Kids in a tube format, the
product has been pegged at Rs 45 for 80 gm. However, Colgate, its
nearest competitor, has already entered this segment with a smaller
SKU (Rs 22 for 40 gm) with two flavours
In fact, HUL has been steadily expanding its Pepsodent
franchise. Early this year, it launched Pepsodent Centre Fresh, a germ
fighting gel with mouthwash. “Pepsodent is positioned as a family
health and protection brand, and it makes sense to extend it as a kid’s
toothpaste,” states an industry observer. Considering its nearest
73
Top Five Toothpaste Brands in Mumbai
competitor Colgate has already entered this segment, HUL has been
adopting a wait-and-watch approach instead of trying to be a pioneer
in this segment. Both HUL and Colgate have introduced single SKU
in the kids segment with their respective brands sporting cartoon
characters.
At the same time, HUL has also extended its Close Up
franchise by introducing two new flavours — Tangerine Burst and
Luscious Lychee — both priced at Rs 30 for 80 gm. Positioning its
new brands as ‘limited edition’ in the market, HUL is possibly testing
out their acceptance in the market
K) Variants:
In fact, the new flavours are being described as ‘Flavalicious’
by the company on its packs to signify the different variants it has
launched. Meanwhile, Close Up continues to sport its red gel mother
brand along with the existing variants of lemon mint and milk
calcium. Three years ago, HUL had taken a conscious decision to
limit the Close Up variants and re-launched the mother brand, as it felt
that having more sensorial variants would not work for its gel-based
toothpaste brand apart from the heavy media spends required to
promote new variants.
It had removed variants such as Tingly Red, Eucalyptus Blue
and even whitening toothpaste. According to an analyst at SSKI
Securities, “The premium end of the oral care market is almost
stagnant. However, HUL consciously wants to build better margins in
this category.”
74
Top Five Toothpaste Brands in Mumbai
According to AC Nielsen for the quarter ending June 2007,
HUL’s has a 30 per cent value share in the toothpaste category and
continues to trail behind the market leader Colgate (48.5 per cent)
According to the Survey with the Sample Size the following data is
Collected.
4.4 Cibaca
A) Introduction;
Dental care major Colgate-Palmolive (India) Ltd's eight-rupee
gamble - the launch of Colgate's Cibaca Top at an affordable price
point of Rs 8 - is said to have worked, with Cibaca Top garnering a
5.9 per cent share of the rural market. "Effectively, today we (Cibaca
Top) have a 5.9 per cent share in the rural market - where it was
virtually one per cent share previously," according to Colgate-
Palmolive (India) managing director Mr. Derrick Samue
The market share of Cibaca Top at the national level stands at
4.4 per cent. It has thus emerged as a strong rural player with the price
point attracting new users to upgrade into the category, comment
industry analysts.
75
Top Five Toothpaste Brands in Mumbai
"We have got in a few new users. Cibaca Top has also
cannibalized a little bit on our other toothpastes. But in the market, it
has cannibalized on some of the other low economy toothpastes," says
Mr. Samuel. "East is particularly an economy market, with
markets like Bihar which had a large scale presence of local players.
There was local competition, and company has made a tremendous
growth there with Cibaca Top," adds
Mr. Samuel. Colgate-Palmolive's overall marketshare in the Rs
1,000-crore toothpaste market has gone up in the October to
December quarter to 51.2 per cent in volume.
The launch of Cibaca Top led to the rejuvenation of the
"economy" segment of the toothpaste market, which falls below the
popular segment in terms of pricing. The company is clear about the
fact that Cibaca Top will be the front runner brand in this segment. In
its portfolio hierarchy of brands, Colgate Total and Colgate Sensation
Whitening lead the premium segment, Colgate Fresh Energy Gel is
part of the gels segment, and Colgate Dental Cream and Colgate
Herbal fall in the popular segment.
With the per capita consumption of toothpaste in India at an
abysmal 82 gm against Thailand's 262 and US's 518, there is an urgent
need to prop up the economy segment of the market, point out
industry analysts. Further, with the rural per capita consumption in
India at a mere 38 gm vis-a-vis 153 gm in the urban market, the
market potential for growth in the economy segment toothpaste brands
is huge.In the year 2000, Colgate revitalized Cibaca which was
relaunched nationally in the economy segment as 'All New Colgate-
76
Top Five Toothpaste Brands in Mumbai
Cibaca Top. With the launch, Colgate entered a new price band - the
economy segment
B) Salient features of Cibaca Toothpaste:
First economy toothpaste from Colgate Initiative to maintain
leadership of the growing low price segment and capitalize on equity
of Colgate Revitalised formulation for strong teeth and fresh breath.
Features Colgate logo on the pack and tube.
C) 6 Cibaca’s steady climb in market share:
Despite relaunches by Anchor & Babool, Cibaca continues to
strengthen its dominance of the Low price point segment in 2006
77
Top Five Toothpaste Brands in Mumbai
Chapter.5
Case Study Based on Cibaca
Case Study Based on Cibaca
The Rs. 2,200-crore toothpaste market (the largest oral care
segment), grew a robust 10 percent in value in 2000. But this wound
down to 2.4 per cent in 2001. In the first six months of 2002, the
market for toothpastes in fact shrank by around 5.7 per cent in value;
78
Top Five Toothpaste Brands in Mumbai
in volumes terms it was much higher at 11 per cent. The going was
tough for the oral care industry.
Little wonder that teeth were bared between the market leader,
Colgate Palmolive, and the challenger, Hindustan Lever, as the
marketing war between the two FMCG giants for protecting market
share got tough.
As if that was not enough, these players found new aggressive
competition coming their way from regional low priced competitors
such as Anchor Healthcare & Ajanta India, who priced their offerings
at over 40% discount, giving market leaders a run for their money
These low priced competitors accounted for more than 80 per cent of
the growing ‘discount segment’. It looked as if the multinational
companies were helpless against challenger brands.
But then the big boys struck back, Colgate revitalized one of its
existing brands, Cibac as Colgate-Cibaca. It was to act as the price
flanker brand in the portfolio. Ditto by HLL with Aim. At prices
similar to the low priced challenger brands it took the battle right into
their turf. The market dynamics changed. Within a year, Colgate
Cibaca managed to garner whopping 50% of the market share in the
discount segment and established Colgate’s supremacy once again.
HLL’s Aim however could not match the success and was
subsequently withdrawn from the market.
Today not only has Colgate's flagship brand grown, but Colgate
Cibaca has risen to become the 4th largest paste brand in the country
79
Top Five Toothpaste Brands in Mumbai
in volume terms after Colgate Dental Cream, Pepsodent and Close-Up
In fact Colgate Cibaca is now #2 in some geographies.
It is interesting to note that Colgate Cibaca became big without
any intensive communication support. It relied more on trade level
activities and below the line strategies for its success.
However the journey for brand Colgate Cibaca has just begun.
Having come up this far, Colgate now aims to move Colgate Cibaca to
the next level of growth; hence a new strategy.
The challenge is to build the brand without cannibalizing Colgate.
Conclusion
80
Top Five Toothpaste Brands in Mumbai
According to the available information the following conclusions were
drawn:
Toothpaste market in Mumbai is mostly capture by Colgate
Palmolive (INDIA) Ltd. The company’s main competitor is HLL who
had launch toothpaste brands such as close-up and pepsodent there
also some other player in market such as Meswak, Babool, Anchor,
Ajanta but Colgate & HLL offers different flavours.
Since toothpaste is fast moving consumer good the sale of same
is showing increasing trend usage of different type of toothpaste
brands are increasing due to different flavours available according to
the age group of consumers.
The most consumers prefer Colgate as television advertisement
specifies that it is recommended by Indian Dental Association (IDA)
and it is good for all age group of consumers.
The advertisement of close up is attracting attention of
youngsters and children’s and it has enabled to increase sales of close-
up.
Recommendations
Company shall improve sale promotion strategy.
81
Top Five Toothpaste Brands in Mumbai
Company shall improve R&D facility try to innovate more
flavor
New company shall follow existing company’s promotion
strategy
Company shall improve quality as per guideline provided by
IDA
Company shall try to capture rural market in India where many
people using substitute of toothpaste like salt, neem,
dentmanjan.
Create awareness of advantages of night brushing.
Extra quantity is given irrespective of actual quantity at the
same price to attract more and more consumers.
With the toothpaste you can give tounge cleaner and
toothbrush.
For sales promotion activities companies may offer a
toothbrush with tounge cleaner on other side of it which will
help the consumers in better usage of toothbrush.
82
Top Five Toothpaste Brands in Mumbai
Bibliography
The data collected from following ways
www.google.com
www.yahoo.com
www.managementparadise.com
83
Top Five Toothpaste Brands in Mumbai
Annexure
Questionnaire
Name: ________________________________________________
Age: __________
Gender: _________
Q1. Which toothpaste your prefer to use the most?
Ans: 1. Colgate 2. Pepsodent
3. Close-up 4. Cibaca 5.Others
Q2. On what basis you are buying toothpaste?
Ans: 1. Advertisement 2. Suggested by dentist 3. Other
Q3.Which toothpaste advertisement influences you the most?
Ans: ___________________________________________________
Q4.Which toothpaste gives you more freshness?
Ans:
_____________________________________________________
Q5.On what basis you buy toothpaste?
Ans: 1.Quality 2.Price
84