Colgate rural marketing jay

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Colgate rural marketing jay

  1. 2. <ul><li>The brand name ‘Colgate’ is synonymous with toothpaste. This world-renowned brand is sold in more than 200 countries. </li></ul><ul><li>In India, the company has successfully replicated the strong brand image and awareness in the minds of consumers. </li></ul><ul><li>Today, Colgate is a household name in India with one out of every two consumers using a modern dentifrice. The company manufactures and markets its oral care, personal care and household care products under the ‘Colgate-Palmolive’ brand name. </li></ul><ul><li>Colgate India earns around 93% of its revenues from the oral care segment </li></ul>
  2. 3. <ul><li>Many people in India still clean their teeth with traditional products like neem twigs, salt, ash, tobacco or other herbal ingredients. 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 </li></ul><ul><li>Colgate and Hindustan unilever together account for over 85% of the organized toothpaste market. Red and Black toothpowder still accounts for 35% of the toothpowder market. </li></ul><ul><li>Penetration of toothpowder in the urban areas has been declining, as more and more consumers switch from powders to paste. </li></ul>
  3. 4. <ul><li>Oral hygiene continues to be under aggressive competition, with sales increasing each year making it a Rs. 3,000 crs. Market. </li></ul><ul><li>The toothpaste segment is largely a two player industry, Colgate Palmolive & HUL accounting for 85% of the entire market. </li></ul>
  4. 5. <ul><li>Table 4.1: Company Share (Value) </li></ul><ul><li>Period Colgate-Palmolive HUL Dabur </li></ul><ul><li>Apr-Mar06 47.3% 30% 7.2% </li></ul><ul><li>Table 4.2: Company Share (Volume) </li></ul><ul><li>Period Colgate-Palmolive HUL Dabur </li></ul><ul><li>Apr-Mar06 48.8% 27% 9.1% </li></ul>
  5. 6. <ul><li>Improving penetration </li></ul><ul><li>Through better distribution and conversion from other modes of oral care </li></ul><ul><li>Increased usage </li></ul><ul><li>Improved per capita consumption through increased usage frequency </li></ul><ul><li>Population growth </li></ul><ul><li>An annual 1.5% increase in population will help broaden the user base for oral care. </li></ul>
  6. 7. <ul><li>1806: Company is founded by William Colgate in New York to make starch, soap, and candles. </li></ul><ul><li>1873: Toothpaste was launched </li></ul><ul><li>1928: Colgate and Palmolive-Peet merge, forming Colgate-Palmolive-Peet Company. </li></ul><ul><li>1937: the company moved into India. </li></ul><ul><li>1966: Palmolive dishwashing liquid is introduced . </li></ul>
  7. 8. <ul><li>1937: launch first toothpaste Colgate dental cream </li></ul><ul><li>1949: launch tooth powder and toothbrush </li></ul><ul><li>1950: Palmolive shave cream </li></ul><ul><li>1976: launch programme “young India.” </li></ul><ul><li>1989: Palmolive extra care soap launched. </li></ul><ul><li>2003: launch oral health month program </li></ul>
  8. 9. <ul><li>ORAL CARE: </li></ul><ul><ul><li>Thooth paste </li></ul></ul><ul><ul><ul><li>Colgate Total 12 colgate cibaca </li></ul></ul></ul><ul><ul><ul><li>Colgate Sensitive Colgate Active salt </li></ul></ul></ul><ul><ul><ul><li>Colgate Max Fresh </li></ul></ul></ul><ul><ul><ul><li>Colgate Fresh Energy Gel </li></ul></ul></ul><ul><ul><li>Tooth brush </li></ul></ul><ul><ul><ul><li>Colgate360 </li></ul></ul></ul><ul><ul><ul><li>Colgate Zigzag </li></ul></ul></ul><ul><ul><ul><li>Colgate Cibaca </li></ul></ul></ul><ul><ul><li>Thooth powder </li></ul></ul>
  9. 10. <ul><li>present in the domestic oral care market for the last 70 years </li></ul><ul><li>dominant position in the toothpaste segment with a 48% market share in the domestic market </li></ul><ul><li>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. </li></ul>
  10. 11. <ul><li>940 direct accounts </li></ul><ul><li>3.8 million retail outlets. </li></ul><ul><li>2 nd most widely distributed product in the country. </li></ul><ul><li>The company is tying up with initiatives like Echopal and Disha to further strengthen its distribution network . </li></ul>
  11. 12. <ul><li>In 1992,93,94 Colgate was ranked No 1 brand in all categories surveyed by annual brand power survey India. </li></ul><ul><li>In 1997 Colgate calciguard and Colgate plus get IDA seal of acceptance </li></ul><ul><li>1999 Colgate was rated “India's premier brand” by A&M annual survey of India's top brand. </li></ul><ul><li>2002 again No 1 brand in India- surveyed by Taylor Nelson MODE </li></ul>
  12. 13. <ul><li>“ Best employer India”- surveyed by BT Hewitt </li></ul><ul><li>2003-05 ranked “Most trusted Brand in India” Surveyed by AC neilson ORG-MARG. </li></ul><ul><li>2004 celebrated Colgate health month. </li></ul>
  13. 14. PROMOTION
  14. 15. PROMOTION <ul><li>It is often said that markets are made, not found. This is particularly true of the rural market of India. It is a market meant for the truly creative marketer. Promotion has become the biggest challenge, to rural marketers today. Rural marketers have to skillfully communicate with a much larger but scattered audience characterized by variations in language, culture and lifestyles.(companies have to adopt the principle of multi-national companies i.e., “ think global and act local” </li></ul>
  15. 16. <ul><li>High quality products was always a plus point of Colgate all they had to do was to now tap the still unattended rural markets and change their habits i.e from the usage of manjans and datoon to toothpaste and tooth powder. </li></ul><ul><li>In 1998, Colgate contacted 6 million people in 20,000 villages of which 15,000 villages had not experienced the availability of toothpaste and toothpowder let alone toothbrushes. </li></ul>
  16. 17. <ul><li>Suggesting and implementing a rural promotional scheme was what Colgate called ‘Sampark’ for, as they were specialist in rural advertising category. </li></ul><ul><li>Going in for mass media would not prove to be costly but the reach would be limited as, still only very few people own and possess a T.V. or a radio. Sampark decided to their advertising by door to door selling </li></ul>
  17. 18. <ul><li>1. To explore the available media at the different locations. </li></ul><ul><li>2. To develop region-specific consumer profiles to understand the characteristics of target market. </li></ul><ul><li>3. To design right communication and motivation strategies to induce target audience to buy the product. </li></ul>
  18. 19. <ul><li>Whole seller, </li></ul><ul><li>Retailer, </li></ul><ul><li>Vans, </li></ul><ul><li>Weekly Haats, </li></ul><ul><li>Bazaars </li></ul>
  19. 20. <ul><li>1. Wholesalers </li></ul><ul><li>The Indian wholesaler is principally a Galla – Kirana (food-grain) merchant who sustains the belief that business is speculative rather than distributive in character. </li></ul><ul><li>2. Retailers </li></ul><ul><li>Village retailers have traditionally been among the most mobile of rural residents. </li></ul><ul><li>I. CREDIBILITY: - </li></ul><ul><li>- He enjoys the confidence of the villagers. </li></ul><ul><li>II. INFLUENCE LEADER: - </li></ul><ul><li>- His role as influence leader is indisputable. </li></ul><ul><li>III. BRAND PROMOTER: - </li></ul><ul><li>- In rural market retailers remains the deciding factor to sell particular </li></ul><ul><li>brand. </li></ul><ul><li>- Retailers helps in identification and selection of brands, there is less </li></ul><ul><li>influence of shelf displays and point of purchase promotion. </li></ul>
  20. 21. <ul><li>4. Weekly Haats, Bazaars, Shandies </li></ul><ul><li>The haats are the oldest outlets to purchase household goods and for tradeThese markets have different names in different regions. But they are strikingly similar in what they sell. It is reported that there are, in all, about 47,000 haats held through out the country </li></ul>3. Vans Mobile vans long since, have an important place in distribution and promotion of the products in villages. It has on-going rural van program, which covers on an average 80 million rural consumers per year. Vans are supplemented with bicycle vendors who go to villages not accessible by the vans.)
  21. 22. <ul><li>Merits: </li></ul><ul><li>1. Convenience: The entire market can be related to large departmental stores in cities, where the advantage is a one-stop shopping exercise. </li></ul><ul><li>2. Attractive: The weekend shopping is not only convenient but also entertaining. </li></ul><ul><li>5.Melas and Fairs </li></ul><ul><li>This is another low cost distribution channel available to the marketers. It is comparable with urban events like Wills Trophy, India International Trade Fair (IITF),Most of the fairs are associated with either a religious event or a festival. Among the most famous melas is the mighty Kumbh Mela at Allahabad (Triveni Sangam), Pushkar mela in Rajasthan, Kullu Dusshera mela in Himachala Pradesh, Sonepur mela in Bihar and Makar Vilakku in Kerala. According to the Indian Market Research Bureau (IMRB) around 8000 melas are held in rural India every year. </li></ul><ul><li>6.EDUCATIONAL FILMS Educational films were also shown in between movies in theatres, these are usually 10-40 seconders which were educational and used to feature either actors, local lenders, for a farmer just like the ones viewing the documentary, later on after the movie would end free samples were distributed to the audience </li></ul>
  22. 23. <ul><li>7.Teachers Training Program </li></ul><ul><li>Teachers Training Program is an integral part of the School Dental Health Program, conducted regularly across the country to promote preventive dental health care. Colgate also has launched its first-ever online school curriculum featuring fun and entertaining activities. </li></ul><ul><li>8 .“ Oral Health Educational Program” </li></ul>The  Colgate Rural Initiative , targeted at rural areas with a population between thirty and a hundred thousand people. The dental check up camps were supervised by teams of dentists and organisers who interacted with over 1 lakh people teaching them the benefits of oral hygiene.
  23. 24. <ul><li>9.ITC E-Choupal   </li></ul><ul><li>Colgate, a company also tied up with  ITC E-Choupal  and Rotary to spread the message of dental care and oral hygiene to villages across India. </li></ul><ul><li>The campaign successfully targeted over 156 villages in Uttar Pradesh in association with Project Disha and 36 villages in Maharashtra. In addition, dental camps were also conducted in the Dussera Mela at Kota. </li></ul>
  24. 25. <ul><li>Many companies view the rural markets as great opportunity for expanding their sales but </li></ul><ul><li>find distribution as a major problem. Unfortunately, it is almost impossible to transplant </li></ul><ul><li>strategies which work successfully in urban markets onto rural markets </li></ul><ul><li>The road blocks to reach the rural customers are: </li></ul><ul><li>· Lack of adequate transport facilities. </li></ul><ul><li>· Large distances between villages. </li></ul><ul><li>· Lack of pucca roads connecting villages to nearest townships. </li></ul><ul><li>· Lack of proper retail outlets </li></ul><ul><li>· Lack of mass media infrastructure. </li></ul>
  25. 26. <ul><li>Pepsodent </li></ul><ul><li>Close up </li></ul><ul><li>Babool </li></ul><ul><li>Meswak </li></ul><ul><li>Dabur red </li></ul><ul><li>Amar </li></ul><ul><li>Anchor white </li></ul><ul><li>& other small players </li></ul>
  26. 27. 4 P’S ADAPTED BY PEPSODENT TO ATTRACT RURAL INDIA <ul><li>Products - Germicheck+, Whitening, 2in1, Center Fresh, Gum Care, Sensitive, Kids </li></ul><ul><li>Price points – combination of high & low price points for various classes of consumer. </li></ul>
  27. 28. <ul><li>Promotion- through project streamline 1990, project shakti, “Khushiyon Ki Doli” campaign, organized health camps, free samples </li></ul><ul><li>Communication - Pepsodent toothpaste fights germs to protect teeth against cavities </li></ul>
  28. 30. <ul><li>Products – red, menthol, lemon mint, milk calcium </li></ul><ul><li>Promotion in rural – Mainly through project Shakti </li></ul><ul><li>Communication – Tazgi jo paas laye </li></ul>
  29. 31. <ul><li>Babool - mint fresh gel & normal & its lower price point for rural people is 30g for rs.5 </li></ul><ul><li>Dabur red- Dabur Red Toothpaste is available in 4 SKUs: 200gm, 100gm, 50gm and 20gm(5rs) </li></ul><ul><li>Dabur lal dunt manjan </li></ul>
  30. 32. <ul><li>Anchor white – </li></ul><ul><li>positioned as India’s first British Dental Health Society certified 100 per cent vegetarian toothpaste, in 1997 </li></ul><ul><li>came up with a promotional offer of over 60 per cent discount on the MRP for a combopack of Anchor White toothpaste together with an Achor Premium toothbrush for penetration. </li></ul><ul><li>Ajanta toothpaste – strong distribution & lower price points </li></ul><ul><li>Attracting vegetarian customers – Amar, Babool </li></ul>
  31. 33. CONCLUSION <ul><li>Colgate is still most successful brand in India </li></ul><ul><li>Future for Colgate also seems bright </li></ul><ul><li>Main reasons are </li></ul><ul><li>Strategic initiatives </li></ul><ul><li>Creating Demand in rural areas </li></ul>

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