Colgate toothpaste project

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Colgate toothpaste project

  1. 1. INDIAN ORAL CARE MARKET  Many people in India still clean their teeth with traditional products like Neem twigs, salt, ash, tobacco or other herbal ingredients.  Average all India per capita consumption of toothpaste is a dismal 82gms.  The dentist to population ratio is a critically low 1:35000 in the country. This results in low oral hygiene consciousness and widespread dental diseases.  Less than 15% of the Indian toothpaste users brush twice a day.  The toothpaste market grew at a CAGR of 7-8% between 1995-2000. But in 2001 the market grew by only 4%.  Colgate and Hindustan Lever together account for over 85% of the organized toothpaste market.  Red and Black toothpowder still accounts for 35% of the toothpowder market.  In toothpowders, Colgate and Dabur are the leading players sharing between the 75% of the market.  Penetration of toothpowder in the urban areas has been declining, as more and more consumers switch from powders to paste.  Brand loyalty is quite high for toothpastes, but is extremely low for toothbrushes. The Rs. 2,200-crore toothpaste market (the largest oral care segment), grew a robust 10 per cent 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; 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, Cibaca 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
  2. 2. 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 in volume terms after Colgate Dental Cream, Pepsodent and Close-up .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 the challenge is increase the share of Cibaca without cannibalizing mother brand Colgate.
  3. 3. HISTORY OF COLGATE TOOTHPASTE In 1806, when the company was founded by 23-year-old William Colgate, it concentrated exclusively on selling starch, soap, and candles from its New York City-based factory and shop. Upon entering his second year of business, Colgate became partners with Francis Smith, and the company became Smith and Colgate, a name it kept until 1812 when Colgate purchased Smith's share of the company and offered a partnership to his brother, Bowles Colgate. Now called William Colgate and Company, the firm expanded its manufacturing operations to a Jersey City, New Jersey, factory in 1820; this factory produced Colgate's two major products, Windsor toilet soaps and Pearl starch. Colgate-Palmolive Company's growth from a small candle and soap manufacturer to one of the most powerful consumer products giants in the world is the result of aggressive acquisition of other companies, persistent attempts to overtake its major U.S. competition, and an early emphasis on building a global presence overseas where little competition existed. The company is organized around four core segments-oral care, personal care, home care, and pet nutrition--that market such well-known brands as Colgate toothpaste, Irish Spring soap, Softsoap liquid soap, Mennen deodorant, Palmolive and Ajax dishwashing liquid, Ajax cleanser, Murphy's oil soap, Fab laundry detergent, Soupline and Suavitel fabric softeners, and Hill's Science Diet and Hill's Prescription Diet pet foods. Colgate-Palmolive has operations in more than 200 countries and generates about 70 percent of its revenue outside the United States.  In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son.  In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.  His company sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896.  In 1928, Palmolive-Peet bought the Colgate Company to create the Colgate-Palmolive-Peet Company.  In 1953 "Peet" was dropped from the title, leaving only "ColgatePalmolive Company", the current name.
  4. 4.  1997,Colgate Total toothpaste is introduced in the U.S. and quickly becomes the market leader. Only Colgate Total, with its 12-hour protection, fights a complete range of oral health problems.  2004,Colgate acquires the GABA oral care business in Europe, with its strength in the important European pharmacy channel and its ties with the dental community.  Today Colgate has numerous subsidiary organizations spanning 200 countries, but it is publicly listed in only two, the United States and India.
  5. 5. Colgate Palmolive milestone • • Company is founded by William Colgate in New starch, soap, and candles. York to make Toothpaste was launched • Colgate and Palmolive-Peet merge, forming Colgate-PalmolivePeet Company. • 1937: the company moved into India. • Palmolive dishwashing liquid is introduced Colgate Palmolive milestone in India • 1937: launch first toothpaste Colgate dental cream • 1949: launch tooth powder and toothbrush • 1950: Palmolive shave cream • 1976: launch programme ―young India.‖ • 1989: Palmolive extra care soap launched. • 2003: launch oral health month program
  6. 6. SWOT ANALYSIS OF COLGATE Swot analysis Strength 1) Focus on innovative and new product launches. 2) colgate business planning initiative 3) Diversified business operations. 4) Strong financial performance Weaknesses 1) Product research 2) Highly leveraged 3) Because of high rate of taxes prices are high Opportunities 1) Emerging market growth 2) Deploying advance technologies 3) Implementing new products majorly to attract youth. Threats 1)Competitive landscape fromother private label growth 2)Increasing commodity prices 3) Political condition are not stable
  7. 7. MARKETING MIX OF COLGATE Product: A product is a set of tangible and intangible attributes which may include packaging, color, price, quality and brand. A tangible product that the consumer feels comfortable purchasing without gathering additional information and then actually buys with a minimum of effort is termed a convenience product. A product that is use for business is called business product. Like if a producer produces and sell products and earn money or profit ,so that product is a business product for the producer. If the middleman buys a product from producer and sell it to the end customer, so that product ll‘ be a business product for the middle man and vise versa .Consumer products are the products which customer buys to satisfy his/her personal needs & wants. Like the products of our daily use i.e. toothpastes, soap etc. A lot of customer purchases the Colgate product for their own consumption to satisfy their daily personal needs. From the marketing point of view Colgate Toothpaste is an excellent business product. Whole sellers & retailers purchase the Colgate toothpastes from its manufacturer (ColgatePalmolive) and sell it to the end customer or consumers and earn a good business from it. Colgate Product Mix: A product mix is the set of products offered by a company. The structure of the product mix has both the number of product lines and number of product mix in that line. Colgate-Palmolive is having different product line. Like they are having product line consists of personal care, bathroom care, household care and many more. Some of the Colgate-Palmolive‘s products lines are given below. Oral Care Colgate Dental Cream Trusted by Generations to make Teeth Stronger Colgate Total 12 Fight 12 teeth and Gum Problems (the Complete Toothpaste) Colgate Max Fresh For a whole new dimension of freshness Colgate Kids toothpaste makes fighting cavities Fun 6 Colgate Fresh Energy Gel Fresher Breath Stronger Teeth Colgate Herbal Strong Teeth, Healthy gums, Naturally Colgate Herbal White Pearly White Teeth……..Naturally Colgate Cibaca Top Now Strong Teeth Fresh Breath for Your Family Colgate Advance Whitening Whiter Teeth in 14 Days Colgate Active Salt fight germs for Healthy Teeth and Gums
  8. 8. Price List price- the list price of the product is RS 12.50 for 50g pack. the product is in the popular segment which is priced higher to onlythe economy segment and lower than the gel and premium segment in the toothpaste market. Discount/Allowances- No promotional discount are allowed. Payment period/credit terms- Being an off-the-shelf FMCG, in line with the category, no credit ia allowed by the company (though the store allows credit on purchase of all items) place Colgate toothpastes are available at every convenience place to facilitate its customers. So, customer purchases it with a very little shopping effort. Colgate use different channel (retailers and wholesalers) to search and delivers the prospective customers. Colgate use the distribution channel which is very efficient, effective and which is not only meets customer needs but also provide them the valuable services. It uses the different method to design a channel of distribution. First of all Colgate specify the role of its channel of distribution. It usually adopts the offensive kind of distribution which is fast enough to sell its products rapidly throughout the country. Here Colgate keeps in mind the marketing objectives and all the marketing mix. Promotion Promotion is one of the most important ―P‖ of marketing mix. Promotion plays an important role in the progress of a product. Promotion in the marketing is like a tool which helps a company to let the people know about the product.The main purpose of the promotion is to Create Awareness, Persuasion, Education, Information, Emotion, Brand Loyalty, Understanding, etc. Colgate-Palmolive informs its customers about its new products as well as the product that is being used by the customers. Colgate-Palmolive persuades and convinces its new as well as old customers to purchase its new product. Adopting a good promotional strategy Colgate has succeeded to retain its customers and image. By this Colgate strongly focuses on different promotional strategies i.e. mass selling, advertising, publicity and sale promotion etc. Colgate-Palmolive has proved itself as a keen observer of the market and the culture all around itself. Colgate has done in the past and still doing at the moment. It is producing & introducing the products specially for the kids. Colgate is very popular among young kids just because of its perfect promotion. Colgate-Palmolive is promoting kids products by labeling the cartoon Characters like Looney tunes,Barbie, Barney and many
  9. 9. more which are being loved by the children. It also educating Children by slogan ―Stronger say bhe Strong, Mera Colgate‖ Colgate-Palmolive has list of products for the children like:  Oral health for children.  Toothpastes.  Toothbrushes.  Great Flavor.  Games,  Track for Brushing. Through the strong promotion by the media i.e. TV, radio, newspaper etc. It is rightly successful to capture the mass market. So, we can say that the Colgate is the product of mass selling. Colgate is not only using the traditional advertising media for its Promotion. However it is also using the electronic advertising media i.e. internet etc. Because a large number of people are using the internet. So, Colgate also advertises on the different websites with its required information for its customers and has a specific website to promote each Colgate product. Colgate also promotes its product by sales Promotion to attract its customers to use the product. Sometimes, Colgate introduces the product at low prices according to the quantity and to facilitate its customer. Which effect positively on the Colgate‘s end customer or consumer. Colgate‘s positive Promotion effect on the product as well as company. Which helps a lot to establish the product image as well as company image in the minds of customers. By using the idea of AIDA and IMC, Colgate‘s promotional activity not only became strong but also helps to convincing the customers to adopt the product for using. So, we can say that the Colgate‘s proper promotion makes new room in the market for establishment
  10. 10. PORTER’S 5 FORCES MODEL Incumbent Rivalry: Consumers in the consumer-products category enjoy a multitude of choices For everything from cleaning products to bath washes. While many consumers prefer certain brands, switching costs in this industry are quite low. Hence, there is a high degree of rivalry. The Bargaining Power of Suppliers More than likely, consumer-products companies face some amount of supplier simply because of the costs they incur when switching suppliers.Hence power for both the firms and their suppliers is probably limited. The Bargaining Power of Buyers: Consumer-products companies face weak buyer power because customers are fragmented and have little influence on price or product. But if we consider the buyers of consumer products to be retailers rather than individuals, then these firms face very strong buyer power. The Threat of New Entrants: Given the amount of capital investment needed to enter certain segments in household consumer products, the threat of new entr ants is fairly low for the company. The main test is whether the small manufacturer can get its products on the shelves of the same retailers as its much larger rivals. The Threat of Substitute Products: Within the consumer-products industry, brands succeed in helping to build a competitive advantage, but even the pricing power of the brand can be eroded with substitutes such as store-branded private-label offerings. Hence, there is a high threat of substitutes
  11. 11. BRAND IMAGE OF COLGATE Innovation is a process in which a company always tries to produce and introduce a new and unique product in the market. Colgate-Palmolive has a such kind of nature. It is in a habit of introducing stunning products in the market and try to have an edge from its competitors. Colgate always tries to create its images as innovators. By introducing new products in a product line Colgate try to defend its market & create its image as innovators. The adoption is a set of successive decisions an individual person or an organization make before accepting a new product. Here we are talking about Colgate (toothpastes). As we all know that people are well informed about the brand of Colgate. Colgate-Palmolive always introduces toothpastes which are new as quality but it use to have a flavor which is easily adaptable. Customer never compromises on quality. Due to this behavior of customers, it is easy for Colgate customers to adopt any new product without any fear or hesitation. For the customer, Colgate is a reliable brand. That‘s why when ever Colgate introduces any new product (toothpastes) it easily spread throughout the social system in a short period of time.
  12. 12. BRAND PERSONALITY Sincerity Dimension:-Realistic, sentimental, and down-to-earth—under the Sincerity dimension are more relevant for Colgate because the respondents feel that the brand is suitable for cleaning and maintaining teeth and the benefits highlighted by the brand such as white and strong teeth are based on facts. While sincere and wholesome—are not applicable to Colgate because the brand is not fair and just and its usage does not give physical and mental satisfaction. Exciting Dimension:-cool, contemporary, and imaginative—are not applicable to Colgate brand because the respondents believe that the advertisements, sales promotion programmes, POP displays, etc., are not very creative and are based on current events. Competence Dimension:-successful—under Competence dimension is not applicable to Colgate brand because the users do not believe that it is one of the successful brands Sophistication Dimension:-charming, smooth, and glamorous—under Sophistication dimension are more relevant for Colgate because the usage of this brand improves the physical attractiveness of the user and the brand arouses admiration of friends and relatives visiting the house. Ruggedness Dimension:-masculine—under the Ruggedness dimension is not applicable to the brand because Colgate users do not give any genderspecific characteristics to the toothpaste.
  13. 13. BRAND IDENTITY There are brands which are not known by many buyers in the market place on the other hand there there are brands for which the buyers have a fairly high degree of brand awareness. Beside this there are brands with high degree of brand preference. Finally there are brands that command high degree of brand loyalty. This is where the acid test of brand lies. Whenever a brand innovates, The role of brand name is to protect the innovation – it creates a mental patent. The brand name makes the innovation exclusive and protects it against imitations. The sources of a brand’s identity include: The product, the name, brand characters, form of advertising. There are four component of brand identity platform: 1. The product class in which the brand is to operate. 2. The targeted consumer segment. 3. Brand location in the perceptual space of the target consumer. 4. Benefits and Attributes with the brand by the consumer.
  14. 14. BRAND PORTFOLIO Colgate Max fresh  It is the first and only toothpaste infused with Colgate-Palmolive, the world leader in oral care, is redefining the gel segment of toothpaste in India, with the introduction of new Colgate MaxFresh Gel. Maximum Fresh Cool Mint  cooling crystals that dissolve in the mouth completely upon brushing, releasing an intense rush of breath freshening power. Maximum Fresh Clean Mint  This patented formula gives a whole new dimension of freshness to its users everyday.
  15. 15. Colgate total  Colgate Total provides complete 12-hour protection and fights a full range of oral health problems  It helps prevent plaque and gingivitis — even after meals Colgate sensitive  This is a sign of sensitive teeth and this pain is cold by Dentinal sensitivity.  You will notice improvement in 24 weeks. Colgate kids
  16. 16. Colgate advanced whitening  Restores natural whiteness  Prevents stains for adhering  Fights tartar, cavities and plaque Colgate Herbal  Colgate Herbal White combines the expert science of Colgate with a unique blend of eucalyptus, Melissa and mint herbs. Strengthens teeth and safe to use everyday Colgate Cibaca Family protection  Developed using Colgate's international expertise in oral care  Unique formula protects your teeth from decay  Refreshing minty flavour makes your breath super fresh
  17. 17. Brand hierarchy A brand hierarchy is a useful means of graphically portraying a firm‘s branding strategy by displaying the number and nature of common and distinctive brand elements across the firms products, revealing the explicit ordering of brand elements. It‘s based on the realization that we can brand a product in different ways depending on how many new and existing brand elements we use and how we combine them for any one product. We can construct a hierarchy to represent how products are nested with other products because of their common brand elements. COLGATE TOOTHPASTE Colgate Dental Cream Colgate Total Colgate Herbal Colgate Active Salt colgate Max Fresh Colgate Cibaca
  18. 18. BRAND LONG-TERM MANAGEMENT
  19. 19. BRANDING STRATEGY OF COLGATE Every company requires a system of continuous growth and up gradation For maintaining the Brand Equity in the market. Colgate may give emphasis on Research and Development Projects in order to develop new products. By introducing some Ayurvedic Oral Care Products The colgate aims at reaching to the rich and consuming customers of rural India Colgate may launch some oral care products specifically targeting the urban youth and the urban rich class In order to strengthen its' Brand Image in the urban market of India. Colgate Branding Strategy aims at introducing some special oral care products which will focus on functional benefits. The Brand can launch specific oral care products for different age groups. The Branding Strategy of Colgate also plans to customize its packaging techniques, based on price points. This, in a way will establish a new pricing strategy. Colgate Branding Strategy has a objective strengthening its' business promotion network. The company is undertaking advertising strategies and campaigning programs with the objective of reaching to the customers of India across income classes. Strong distribution - The company has backed its products with a very strong distribution network Brand Tagline Proposition –Colgate “Bhartiya dentists ki number one pasand." Colgate is the expert ( the last word) on dental care and provides you with 12 hour protection safeguarding you against 12 common tooth problems ADVERTISEMENT: Its different products which are designed for different segments are targeted to the audience by highlighting its features. Its common tagline for all products isNo1 brand recommended by dentist.´ Sales promotion:-for rural market COLGATE uses VAN (van is a mobile promotion station having facilities for screen show, slide show and mike publicity.

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