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Tooth paste Industry analysis

Tooth paste Industry analysis

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    Toothpaste industry christ_university Toothpaste industry christ_university Presentation Transcript

    • Analysis of Toothpaste industry in India – by Ajay Chowdary Bobbur
    • Introduction  Earlier in India oral hygiene was the domain of local home made ayurvedic powders or natural herbs. The history of toothpaste in India can be traced back in year 1975.Now the awareness regarding oral hygiene in Indian society has increased with the different brands of toothpaste.
    • Swot analysis Strength Market reach for both rural and urban area Availability of raw materials Low operational cost Weakness Point of parity Research and development Opportunities Purchasing power increases Health camp Low dentist population ratio Threats Well established competitor subsitutes
    • Overview  Total market of 750 crores.  Growth rate of 18.6%  Per capita usage mere 85 gms per person.  Major player – Colgate Palmolive and HUL
    • Top ten tooth pastes  COLGATE          (Coalgate Palmolive Ltd.) PEPSODENT (Hindustan unilever) CLOSE UP (Hindustan Unilever) SENSODYNE (GlaxoSmithKline) AQUAFRESH (GlaxoSmithKline) ANCHOR (Anchor health & beauty care Ltd.) DABUR RED (Dabur India) BABOOL (GlaxoSmithKline) MESWAK (GlaxoSmithKline) VICCO BAJRADANTI (Vicco Laboratories)
    • MARKET SHARES - TOOTHPASTE
    • 3 companies taken for analysis  Colgate  HUL  Dabur
    • Colgate
    • Introduction  In 1806, William Colgate introduced starch, soap and candle factory on Dutch Street in New York City under the name of "William Colgate & Company".  Colgate – Palmolive company is an American diversified multinational corporation focused on the production, distribution and provision of household, healthcare and personal products, such as soaps, detergents, and oral hygiene products (including toothpaste and toothbrushes).  In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.
    • POSITION IN GLOBAL MARKET
    • Future strategy on 4p`s basis: 1. Product:  They try to position some innovative toothpaste with a brand name other than Colgate but under the umbrella of Colgate Palmolive.  Focusing toward rural rich and consuming class by endorsing the development of „Colgate Ayurvedic Toothpowder„.  They would come up sachets of these tooth powder and position toward rural population who buy in smaller lots.  For Urban population, they would come up with the products suiting to young generation.  For Urban rich and consuming class, they would come up with the products on the basis of functional benefits. Eg: they launch a special toothpaste for kids in the age group from 4-10 years.
    • 2. Price  Based on the competitor's price .  Pricing done on the basis of price points  Packaging would be customized on the basis of price points.
    • 3. Promotion  They     positioning Colgate dental white crème and toothpowder towards rural rich segment. For rural consuming class they endorsing Cibaca toothpaste. Advertisement through T.V. media, Print media. FM Radio for Urban population & MW and SW radio for Rural population. Hoarding on National highways.
    • 4. Place  They would try to increase product penetration to rural population.  They would try to increase the wholesalers to smaller towns.  They would track the distribution path so that they are covering all the village areas around the towns
    • Distribution strategy  Dentists and plastic surgeons.  Drug stores or Grocery stores.  Large retail stores and department stores.
    • ADVERTISEMENT  In 1940,the Colgate Company used Slogan was "It cleans your breath while it cleans your teeth " .  The 1960s onwards, the slogan was "The Colgate ring of confidence" .  In the late 1950's and early 1960's, Colgate stressed the fact their "Dental Cream" contained Gardol, a formula that helped protect teeth from cavities and tooth decay .
    •  "Gardol" was actually their trademark for the ingredient Sodium lauroyl sarcosinate .  Now they used various Slogan for different different products like For MAX FRESH is “A Whole new Dimension of Freshness” & For WHITE TOOTHPASTE is “All Around Decay Protection”.
    • Promotional tools Increasing circumference of toothpaste tube.  Free Dental Check-up in mobile vans 
    • Target Market 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 Colgate‟s 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”
    • 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 supragingival 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
    • 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
    • Segmentation:  Colgate‟s market segmentation is very broad because all their products are of need to most people so those people share a similar interest in product needs.  Colgate uses a segmentation bases by knowing that certain groups of people need Colgate toothpaste for a specific similar reason like yellow teeth, sensitive teeth or just teeth with cavities.  Colgate also uses the family life cycle because they make toothpaste that could be used for grownups and children.  Also, toothbrushes are made to attract young children with cartoon characters and different tastes and are less strong so that it wouldn‟t damage their gums.
    • 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-à-vis traditional products like “Neem”  Conducted by giving product trials and free samples
    • Hindustan Unilever Limited PEPSODENT CLOSE UP
    • Hindustan Unilever Limited  In India since 1895  Formed by merging3 subsidiaries of unilever limited     in 1956 A $2.2billion company India‟s largest FMCG company Over 20 distinct product categories Market leader across categories
    • PRODUCT
    •  Pepsodent has its products which cover a large area  Their products are Pepsodent Germicheck + Pepsodent Whitening Pepsodent 2 in 1 Pepsodent G Pepsodent Kids
    • PRICE
    • TYPE PEPSODENT COMPETITORS Vanilla variants – Pepsodent Germi-Check – Rs. 62 for 200g. Colgate Dental Cream– Rs. 65 for 200g Gel variants- Pepsodent Center Fresh – Rs. 65 for 150g Colgate Max Fresh – Rs. 64 for 150g Whitening variants – Pepsodent WhiteningRs. 65 for 150g Colgate Max WhiteRs. 65 for 150g Gum care variants- Pepsodent GRs. 37 for 80g Colgate SensitiveRs. 80 for 80g Pepsodent SensitiveRs. 80 for 80g SensodyneRs. 80 for 80g Colgate Sensitive Pro-reliefRs. 120 for 80g
    • PLACE
    • PRODUCT DISTRIBUTION CHANNEL
    • PROMOTION
    •  Along with an offer of free dental check-ups, HUL is also planning to organise health camps involving villagers to fortify its campaign.  “To promote Pepsodent, we will also offer free samples to the villagers to try out the product and offer discount coupons on wrapper redemption schemes,”
    •  Brand Ambassador  In May,2010, Pepsodent had roped in Shah Rukh Khan to be their Brand Ambassador.  SRK had been roped in for pepsodents latest campaign „Pappu & Papa‟
    •  Free Gifts  Pepsodent had agreed to sell its Products with a toy along with the purchase of the product.  With phrases like “Collect Them All!”, the customers would want to buy more products in order to collect all the gifts.
    • Segmentation Geographic • Rural Areas • Urban Areas Behavioural • Normal Use • Whitening • Complete Care Demographic • Pepsodent G • Pepsodent Kids • Pepsodent Milk Teeth Strawberry
    • TARGET MARKET SELECTION  Pepsodent is currently into Selective Specialization  Pepsodent Kids for kids  Smaller and cheaper variants for rural markets  Pepsodent complete for the educated urban consumer
    • Positioning Matters
    • Pepsodent positioning:  Pepsodent was launched in 1993 by HUL to capture the market from Colgate.  It was launched in the platform of Germ fighting property.  Pepsodent have experimented with its positioning althrough its life.  Ad Campaigns to supplement this positioning: Lasting Protection for hours Germ Fighting Campaign Dental Insurance Dishum Dishum Bhoot Campaign
    • Dabur India Limited • Established in 1884 : 125 Years of Trust & Excellence • India‟s leading FMCG Companies with Sales of Rs.52,832 million , Market Capitalization of Rs.2,09,133million & Net profit of Rs.6,449million • World‟s largest Ayurvedic and Natural Health Care Company • Consumer products categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care and Foods • Distribution network, covering over 2.8 million retail outlets • Available in over 60 countries across the globe • 17 world class manufacturing plants catering to needs of diverse markets • Dabur's overseas revenue today accounts for over 30% of the total turnover
    • Key Players: FMCG Source: Dabur Corporate Profile August 2012 in Rs. million Market Cap. as of Aug 8,2012
    • Product Mix Width Strategy Home Care Home Care Hair Care Skin Care Personal Care Foods
    • Digestives OTC and Ethical's Oral Care Health Supplement
    • International Sales (FY 12) 6% 22% 26% 16% 30% Source: Dabur Annual Report 2011-2012 Africa Middle East Asia US Others
    • 12 Billion- Rupee Brands  Dabur Amla  Dabur Chyawanprash  Vatika  Real  Dabur Red Tooth paste  Dabur Lal Dant Manjan  Babool  Hajmola  Dabur Honey  Glucose  Fem  Odonil
    • INDUSTRY COMPETITORS DABUR Colgate-Palmolive Ltd. HUL(Hindustan Uniliver Limited) P&G(Proctor &Gamble)
    • Four P’s of Dabur PRODUCT 1.Dabur red toothpaste a) 200 gm b) 100 gm c) 50 gm d) 20 gm 2.Dabur Meswak a) 200 gm b) 300 gm PRICE 65 42 17 12 PLACE OR DISTRIBUTIO N CHANNEL Manufacturer Wholesaler Retailer Consumer 75 112 PROMOTION      TV commercials Newspapers POP Display Wall Painting Video Vans
    • Four P’s of Dabur 3) Babool Tooth Paste a) 380 gm b) 190 gm c) 90 gm d) 50 gm e) 30 gm Manufacturer Wholesaler 65 42 20 15 10 4) Promise 340 gm 65 Agents Retailers       TV commercials Newspapers POP Display Wall Painting Video Vans Sales Proportions
    • Product line length strategy Hair oil Shampoo Oral care Skin care Digestives Dabur amla hair oil Dabur vatika shampoo Dabur red tooth paste Gulabri skin care Hajmola tablets Vatika hair oil Babul mintfresh gel Dabur uveda Hajmola candy Dabur Almond Babool tooth paste Fem Range Hingoli Promise toothpaste Pudin Hara Meswek Pudin Hara Lemon Fizz Lal dant manjan Nature Care
    •  Pricing Strategy : Dabur implented value based, cost based, compititor based pricing stragies.  Value based: pricing is done based on companies' market. Ex:chwanprash image in the  Cost based: pricing is done based on cost of production. Ex: hajmola.  Competitor based: pricing is done based on competitors. Ex: vatika dandruff control shampoo.
    • Segmentation is done only on the basis of income of the consumers. So they have made sure to produce a product in different quantity and made it available to every customer. Under the new strategy, Dabur segmented its products into two - those operating in larger urban markets requiring exclusive category focused sales and those meant for smaller towns and rural markets requiring an integrated sales force. Dabur has a wide portfolio catering to all the categories –  Masses  value seeking  premium.
    • Targeting: Dabur's latest move follows the company's recent rejig in 'route to market' strategy to utilise synergies across divisions, maximise reach and maintain cost. Dabur plans to double its rural reach to have direct access to some 27,000 villages with more than 3,000 people this fiscal, in a bid to keep pace with market leader Hindustan Unilever.
    • Positioning  Youth  Health conscious people  School children  Mothers  Existing old age groups
    • Dabur Herb‟l Toothpaste positioned as a herbal alternative to other toothpaste brands. Dabur International, one of the most trusted and recognized personal and healthcare brands in the world, has revealed that its Dabur Herb‟l Toothpaste, a new range of oral care products specially formulated with herbs, has been positioned in the market as a healthier oral care alternative, as it does not contain chemicals that can cause harmful effects on the teeth such as dental fluorosis. It has taken a strong head start in the Middle East market as it is specially formulated with trusted herbs that are actively used in the region for various health purposes.
    • F ACTORS INFLUENCING BUYING BEHAVIOUR FACTORS HIGH/ME JUSTIFICATION DIUM/LO W IMPACT Cultural factors High impact Social factors High impact As dabur company is based on “ayurvedic and natural” methods. Ayurvedic is basically from and Indians believe that method. Dabur is having a history of 125 years. It‟s a well known and old company in the society, and as company‟s vision is to provide the well being of society.
    • Personal factors High impact Dabur products are categorized into oral care, hair care, skin care, health care, food, home care, which mainly concentrate on children, old age people, women‟s teenagers etc. company is promoting it‟s products through famous celebrities like amitab bachhan, dhoni,rani mukharjee etc. Pschycological factors Dabur is old, and well known company, mainly it is ayurvedic based. Medium impact Dabur is international company customer has trust on dabur company.
    • Net Sales (In Rs. Crores) 6,000 5,283 5,000 4,077 4,000 3,391 3,000 2,805 Net Sales (In Rs. Crores) 2,361 2,000 Source: Dabur Annual Report 20112012 1,000 0 FY 08 FY 09 FY 10 FY 11 FY 12
    • Profit After Tax (In Rs. Crores) 700 645 600 569 501 500 391 400 333 Profit After Tax (In Rs. Crores) 300 200 100 Source: Dabur Annual Report 2011-2012 0 FY 08 FY 09 FY 10 FY 11 FY 12
    • Conclusion  Nature is the lifeline of Dabur company. Dabur works in active collaboration with nature to provide the best of ayurvedic ,herbal health and personal care products to its consumers.  They define their business in ways that provide societal, environmental, and economic benefits to the communities and Geographic‟s where they operate.