Submitted By- Deepak Singh Negi Amity Business School firstname.lastname@example.org MBA-(General), Sec-A
INTRODUCTION Earlier in India oral hygeine was the domain of localhome made ayurvedic powders or natural herbs. Thehistory of toothpaste in India can be traced back inyear 1975.Now the awareness regarding oral hygeinein Indian society has increased with the differentbrands of toothpaste.
Opportunities for ToothpasteIndustry In indiaIn India, oral care market offers huge potential aspenetration and per capita consumption of oral careproducts is very low. However, rising per capita incomeand increasing awareness is driving demand of oral careproducts. Consumers have started switching to value-added toothpastes like gels, mouth washes, and teethwhitening products. In rural areas, consumers areswitching from toothpowders to toothpastes.
INDUSTRY OVERVIEWTotal market of 750 crores.Growth rate of 18.6%Per capita usage mere 85 gms per person.Major player – Colgate Palmolive and Hindutan uniliver
GROWTH PROSPECTSIncreased at a compound growth rate of 6.6% between 2004-09Rising income level i.e increasing purchasing power of consumerLarge domestic market with population over a billionUntapped rural market
TOP TEN TOOTHPASTE BRANDS 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)
Industry OverviewGrowth RateToothpaste Sub SegmentMajor PlayersPer Capita ConsumptionPenetration Level
GROWTH RATEGrowth rate of 18.6%Registered a compound growth rate of 6.6% between 2004-09 Changing spending pattern – with a increase in purchasing power, there is a upward trend in the expenditure incurred upon FMCG.Changing profile and mindset – People look for “MONEY FOR VALUE” rather than “VALUE FOR MONEY”. Switching from economy to premium brands
MAJOR PLAYERSColgate – Palmolive Ltd. (Market Share- 47.3%)Hindustan Unilever Ltd (Market share- 30%)Dabur India Ltd. (Market Share- 7.2%)Other companies like Vicco, Patanjali, Promise etc.
Top 5 Brands - Market Share (2009)Colgate Dental Cream 34%Close-Up 14%Pepsodent Complete 10 11%Colgate Cibaca Top 5.7%Colgate Fresh Energy Gel 3%Other Brands 32.3%
Price-based SegmentsRegular Segment: 100 gm: Rs 25-30Low Price Segment: 100 gm: Rs 14-20The Lower Price Point segment accounts for around 25% of total category volumes
INTERNAL EXTERNAL SWOTAnalysis of the Toothpaste Industry
Strengths-> Low operational costs. Presence of well known brands. Presence of established distribution network. S
Weakness->Low export level.Low scope of investing in technology and achieving economies of scale.Me-too products which illegally depicts the label of the established brands. W
Opportunities->Untapped rural market.Purchasing power increase.Low Dentist Population ratio 1:35000People being aware of dental health.Penetration level has increased with cable TV, internet and FM radio stations. O
Threats->Stiff well established competitors.Threat of Substitutes. T
HIGH HIGH MED HIGHPorters Five Forces Analysis HIGH
BRAND QUESTIONNAIRE FORMPERSONAL INFORMATIONName of Participant-Address-State-City-PIN-Mobile-
QUESTIONNAIREQ1 Which particular toothpaste brand is generally demanded by customers?Q2 Which of these brands of toothpaste have customers asked in the past or are currently demanding?CoalgatePepsodentDabur RedClose Up
CoalgatePepsodentDabur RedClose UpQ3 Which toothpaste brands have promotional schemes and what are the prices and discount offers?CoalgatePepsodentDabur Red
Close UpBaboolSibakaMiswaakViccoTermericQ4 Are customers brand conscious when it comes to buying a toothpaste?YesNo
Q5 Do you tell your customers about a certain brand to purchase?YesNoQ6 Which of the following brands do you always prefer to customers?CoalgatePepsodentDabur RedClose UpBaboolSibaka
MiswaakViccoTermericQ7 What are the other variants these products have?CoalgatePepsodentDabur RedClose UpBaboolSibakaMiswaakViccoTermeric
Q8 Where do u prefer buying brand from?DistributersDealersAgencyWholesaler