Brand Extension_Ravi Dhoot_PGP30074

Brand Management - Individual Assignment

Project Information

Title:To understand the Brand Extension and performance ofActive Salt at Coalgate Palmolive Ltd.

Presented to :Prof. Sameer Mathur

Presented by : Ravi DhootPGP 30074Section : B

Oral Care Category - India

Lucknow market visitWork on the heuristics & blueprintsFinal presentation preparation

Oral care saw the value growth of 15% to reach INR 83.5 billion in 2013

Toothpaste continues to be the biggest category with 80% value share of oral care

Mouthwashes/dental rinses has the highest value growth of 44% in 2013

Oral care is expected to have a value CAGR of 9% at constant 2013 prices to reach INR131.0 billion by 2018

Colgate Palmolive

Lucknow uncovered villages (10)Data analysis – for the coverage heuristicsPre-final review


US Multinational, present in more than 175 countries and a market leader in 150+ of them

Colgate-Palmolive India Ltd continues to lead with 46% value share

Low penetration in urban market and untapped rural market makes the Indian market a very high potential market

Colgate Palmolive


2011 2012 2013 2011 2012

2013

> The company grew almost in line with the category growth rate, this explains the same market share of CP

Colgate – Product portfolio

Toothpaste Brands

Colgate DentalCream

ColgateTotal

ColgateVisible White

ColgateSensitive

ColgateMax Fresh

ColgateKids

ColgateCibaca

ColgateActive Salt

ColgateMaximum Cavity..

KYA AAPKE

TOOTHPAST

E MEIN

NAMAK HAI?

The famous campaign

COLGATE ACTIVE SALT

New brand called Active Salt was launched under the

umbrella of Colgate

How the brand was built:

Salience : Through the famous campaign

Performance & Imagery: Ads showed the dental issues

and how the product is helpful to resolve such issues

Judgments & feelings : Aim was to create an awareness

of importance of salt and minerals in the toothpaste, thus

the idea of questioning people was a bang on method to

get them thinking

Resonance : People could relate the product to the

traditional stories of cleaning your teeth with salt & neem.

This resulted in a better connect

The Brand : Colgate Active Salt

PRODUCT

Colgate Active Salt is the first and only toothpaste in India that contains salt. It combines salt with calcium and minerals to make teeth stronger and gums healthy. Its special formula is proven to seek and fight germs offering a unique brushing experience.The packaging of the new product was identical to the existing ones

4Ps of COLGATE ACTIVE SALT

Active Salt – Newly Launched

Colgate Dental Cream– Flagship product


PRICE

The product provides a functional benefit and is aimed at a large segment; involving people from various income strata

Thus the product is launched in lower price SKUs for catering the demand of rural consumers and as well as in family packs considering the modern trade customer

Active Salt: 50 gm :18 Rupees Active Salt: 100 gm :37 Rupees Active Salt: 200 gm :86 Rupees

The newly launched Active Salt Neem is launched at a price point of 15 Rs.

The prices of all SKUs are at the same level of those of the competitor’s SKUs, which can be observed across all oral product category.


PLACE: GO TO MARKET Chart

MT

Canteen

s

KS

MS

CS

Service Line

Stockist

WS

CPS

STTDirect Coverage

Indirect Coverage

Retail Environment

Stockist Margins

Wholesalers Margins, CD, Offers

GS


PLACEMore stress is being given on the expansion of the direct coverage : to ensure that the product is available at as many stores as possible

This has even helped the company to premiumise the consumers and made real time data available of consumers preferences

The distribution channel involves medical stores also, considering the nature of product

Local Kirana stores, General stores, Wholesalers, Medical stores are approached by the salesmen weekly and this ensures the availability of the product

The modern trade customers are directly handled by the company ( No distributor in the channel) , this results in better prices for consumers and better promotional activities at stores


Promotion

Product PromotionsTrade Promotions

ACTIVE SALT

https://www.youtube.com/watch?v=nYk8YLVZeVY

Product promotion:

Focus on the functional benefitPOD

Link :

ACTIVE SALT

Many activities targeted at connecting with the target consumer

Idea was to highlight the new taste

ACTIVE SALT

Link: https://www.youtube.com/watch?v=frq3mywDRb4

Link:https://www.youtube.com/watch?v=LuTJQQU160w

ACTIVE SALT

Trade Promotions

Multiple schemes and offers are introduced during the year for retailers as well as wholesalers such as

Visibility offers : Payout is offered to display the products in shop

Extra Margins: Added discounts are available to the wholesalers and retailers

Incentives: Targets for salesmen and distributors are based on the overall value of the focused product, leading to higher sales

Positioning of Active Salt

Like the other products, the positioning of the brand is done around the functional use of it while using the brand equity of the company

The advertisements are focused on the issues regarding the dental hygiene and diseases in the routine life and how the product can resolve them

The Target Group thus involves people who are concerned about such issues. Youth, Middle class people etc.

The competition in the toothpaste industry happens among the same segment products of competitor firms

For example, Colgate Sensitive Pro-relief is a competitor for Sensodyne of GSK. Where as Colgate MaxFresh is competing against Closeup.

Positioning of Active Salt

The salt category also has competition from firms like Dabur India, P&G etc.

Vs.

POP: Prices, Ingredients(Product)POD: Brand Equity, Distribution channel, Marketing strategies

Success Mantra!

Highly successful campaign: The “Kya aapke toothpaste me namak hai?” campaign turned out to be a huge success. Colgate launched new two products under the same brand

Wide Distribution channel: Compared to the competitors, Colgate has a more deeply rooted distribution network. It allows the company to make product available at more number of stores

Brand Equity: Colgate has won “The Most Trusted Brand” award for more than 4 times in last 5 years. “Dentist ka sujhaya hua no.1 brand” speaks for the popularity of the brand

http://www.colgate.co.in/app/Colgate/IN/OralCare

http://www.colgate.co.in/Colgate/IN/Corp_v2/Investor/

FinancialReports/annual-report-2013-14.pdf

https://www.youtube.com/watch?v=frq3mywDRb4

https://www.youtube.com/watch?v=LuTJQQU160w

https://www.youtube.com/watch?v=nYk8YLVZeVY

Thank

you

References

Brand Extension_Ravi Dhoot_PGP30074

Education

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