2. Colgate-palmolive at a glance Colgate-Palmolive Company Type : Public Industry : Personal products Founded :1806 Headquarters : New York City, New York,U.S Key people : Ian M. Cook, CEO Revenue : US$15.3 billion (FY 2009) Operating income : US$3.73 billion (FY 2009) Net income : US$2.29 billion (FY 2009) Total assets : US$11.1 billion (FY 2009)
3. HISTORY Founded in 1806 by WILLIAM COLGATE. In the 1840s, the firm began selling individual cakes of soap in uniform weights. In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son. In 1872, Colgate introduced Cashmere Bouquet, a perfumed soap. In 1873, the firm introduced its first toothpaste in jars. Colgate ribbon dental cream was the first toothpaste sold in tubes, in 1896.
4. Contd… 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 "Colgate-Palmolive Company", the current name. Colgate has numerous subsidiary organisations spanning 220 countries, but it is publicly listed in only two, the United States and India.
6. MASS MARKETING STRATEGY (1937-1990) Major emphasis was to cater to oral care market in India when it was introduced in 1937 and was supplied with the help of carts. Tooth pastes where supplied in convenient tubes of different sizes Had a mass appeal. No specific differentiation strategy.
7. PRODUCT DIFFERENTIATION (1990) With the introduction of Colgate powder toothpaste, the company started differentiating itself as a consumer oriented company. It focused on both rural and urban customers Also catered to lower segment of the society and was also good for people who can’t afford toothbrushes.
8. NICHE MARKETING(1991) Colgate introduced Colgate fresh tooth paste to cater to the segment of population which emphasized on freshness. Was a major success in urban cities.
9. LOWER SEGMENT STRATEGY(2000) In year 2000 colgate launched its cibacavarient in india which it acquired in year 1994. It was economical and carried the logo of colgate on its pack which provided it the customer loyalty of colgate Attracted customers who used colgate powder toothpaste. Also introduced sachet of tooth powder
10. Innovative marketing(2005) Development of three varients 1. colgate max fresh 2.colgate active whitening 3.colgate active salt Catered to the segment of indian society which was more conscious about their teeth and gums like tooth decay and gum protection.
11. Few basic facts 51% market share in toothpaste,48% in toothpowder and 30% in toothbrush. They came up with sachets of toothpowder catering to the lower segment which prefers to buy in lesser quantity. For toothbrush CP worked on functional benefits and launched different types of toothbrushes for different age groups. The prices were largely based on the competitor's price. For the niche products e.g. Colgate herbal, Colgate Blue etc, It charged higher premium than the generic dental white creme that was focused on consumption by lower income classes.
12. COLGATE'S BRIGHTSMILES, BRIGHT FUTURES. The Colgate BrightSmiles, Bright Futures Oral Health Educational Program was practiced to teach rural children positive oral health habits of basic hygiene, diet and physical activity. Under this Program Indian children in primary and government schools received instructions on dental care from members of the dental profession nominated by the Indian Dental Association.
13. Cont… Education was imparted with the aid of audio-visuals and printed literature created by the company. Free dental health care packs, including samples, were also distributed by the company to encourage the practice of oral hygiene.
15. Vision & Mission Nirma is a customer-focused company committed to consistently offer better quality products and services that maximise value to the customer.
17. Some Key Facts “Nirma” is named after Nirupama, daughter of Dr. Karsanbhai Patel. Purnima is the advertising agency that has been handling brand Nirma’s creative and media mandate for the last 30 years. 'DoodhsisafediNirma se aye, ranginkapdabhikhilkhiljaye' - this jingle has been used by Nirma for the last 25 years. Nirma's radio spot has been aired without a break for 28 years. Till 1986, Nirma was a single product brand.
18. Some Key Facts Nirmaproducts are sold through two million retailers and reach 400 million consumers. Launched at Rs. 3 per kilo. Largest Player of the Indian Detergent Market with 38% of the market share. 2nd Largest toilet soap marketer of the country with a share of 20%.
19. Strategies Involved in Marketing Brand NIRMA Nirma clearly hit the fortune at the bottom of the pyramid as proposed by C.K. Prahlad. Its simple and catchy jingle – ‘DoodhsisafediNirma se aye, rangeenkapdabhikhilkhiljaye’. The jingle, which was first aired on radio in 1975, was broadcast on television in 1982. For the first time, in late 1980’s, Nirma experimented with its campaign without the famous jingle in its TV commercial, with the punch line : “ Maangaye, aapkipaarkinazaraurNirma Super donoko”.
20. Strategies Involved in Marketing Brand NIRMA In the mid 1990’s in a survey it was found that Nirma is considered a cheap brand by consumers. Repositioning- It forayed into the premium segment detergents & soaps. It released corporate advertisements worth Rs 10 bn throughout India. For endorsing soaps, the company used starlets like SangeetaBijlani, SonaliBendre, and Riya Sen.
21. Strategies Involved in Marketing Brand NIRMA Analysts felt that the fast growing shampoo market was a better bet than the premium soaps market. In 2000, the company entered the hair care market with NirmaShikakai, Nirma Beauty Shampoo, and oral care with Nirma Toothpaste.
22. Strategies Involved in Marketing Brand NIRMA HLL launched its detergent, Wheel, in the low segment market. Nevertheless, Nirma started frontal attack by positioning its products straight against to the HLL products like Nirma Bath against Lifebuoy, Nirma Rose against Breeze etc.
23. Strategies Involved in Marketing Brand NIRMA In 2009, Nirma appointed TapRoot India as its marketing agency, to revitalise its communication. The result was the 'underwater' commercial, which showed dancers moving with flowing fabric - a metaphor for clothes being washed in a bucket. An important point in the ad was that it did not use the iconic Nirma jingle. http://www.youtube.com/watch?v=aaUMePqzNgA
24. Strategies Involved in Marketing Brand NIRMA Now, Nirma wanted its communication to get back to talking about the dirt tackling properties of the detergent, as well as use the legendary 'Washing powder Nirma' jingle. This task was given to ThoughtShop. The brand was firm that it needed a different take on dirt removal. Thus, the ad came about where Sanjeeda Sheikh is Scolding the puddle of dirty water to stay away. http://www.youtube.com/watch?v=AkcbGGPQKB0&feature=related
27. Nirma’s Differentiating Factors Brand Nirma has never believed in showing a cliched animated product demo/ or comparison of stain/ dirt, which is used by 80 per cent of the players in the category. They know the brand and their consumers very well, which they passed on to use it in terms of what need to be communicated. The company pioneered product sponsorship through the electronic media. The company has developed a unique advertising strategy - new products are launched with no advertising support. Once the distribution glitches are sorted out and the product reaches the shelves of retailers, the company begins to advertise it. Also , the umbrella branding strategy helps to give new products instant recall without increasing the advertising expense.
This Program also encouraged dentalprofessionals, public health officials, civic leaders and most importantly, parents and educators to come together to emphasize the importance of oral health as part of a child's overall physical and emotional development.
This customer-centric philosophy has been well emphasised at Nirma through:Continuously exploring & developing new products & processes.Laying emphasis on cost effectiveness.Maintaining effective Quality Management System.Complying with safety, environment and social obligations.Imparting training to all involved on a continuous basis.Teamwork and active participation all around.Demonstrating belongingness and exemplary behaviour towards organisation, its goals and objectives.
To ensure regular supply of major raw materials, Nirma had opted for backward integration strategies. These strategic moves allowed Nirma to manage effective and efficient supply-chain.
In the mid 1990’s, a survey was conducted by Samsika Marketing Consultants, where it was found that Nirma is considered a cheap brand by consumers.Unlike detergents, soaps were a personal-care product. Many customers had deep psychological bonds with their established soap brands. Thus, Nirma found it harder to penetrate into the consumer preferences in this category.
