Brand Extension
Analysis – Colgate Plax
SUBMITTED BY
JITENDRA BHARTI
PGP30376
COLGATE – World of Care
Colgate-Palmolive
Oral Care
Toothpaste, Toothbrush,
Toothpowder,
Whitening Product,
mouthwash
Personal Care
Body wash, Hand wash,
skin care, hair care,
men’s grooming
Household Care
Surface care
 Colgate-Palmolive India is 51%-owned subsidiary of US Colgate-Palmolive Co.
 Leading player in oral hygiene in India since 1950s
Categories
Net Profit
2011
INR 4
billion
2012
INR 4.5
billion
2013
INR 5
billion
 New product launches and increase in penetration in rural India aids value
and volume growth
Market share
Product Type Value Share Rank
Beauty & personal Care 6.8% 2
Bath & Shower Negligible 22
Men’s grooming 0.8% 17
Oral care 46.1% 1
COLGATE - Oral Care
Oral care in India
Toothpaste is
the biggest
category with
80% share
Increase awareness by
educating consumers about
good dental hygiene via TV
advertisements as well as
urging them to brush twice a
day
Mouthwashes/
Dental rinses
has the
highest value
growth of 44%
in 2013
Oral Care is
expected to
grow at a
CAGR of 9% to
reach 131
billion by 2018
Increasing awareness of oral
care products, increasing
penetration in rural market
and expanding product
portfolio of leading
companies
Market shares in Oral Care
45.3 44.7 44.6
46.1
22.2 21.6 21.3
19.7
11.7 11.9 11.3 10.8
4.3 4.5 4.6 4.7
0
5
10
15
20
25
30
35
40
45
50
2010 2011 2012 2013
Colgate HUL Dabur Gillete
Mouthwash
Mouthwash Category
76
72.6 70.8
66.4
12.1
16.1 17.3 17.6
7.6 6.7 6 5.24.3 4.6 6
10.8
0
10
20
30
40
50
60
70
80
2010 2011 2012 2013
% share of different companies
Listerine Colgate Plax AM PM Mouthwash Others
Comparison of Mouthwash & Oral
care industry
133.8 409.4 696.9 1079.9 1550.4 2231.1
46226.8
50117.9
55414.5
63296.1
72374.6
83449.8
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
2008 2009 2010 2011 2012 2013
Comparative growth of mouthwash against oral care(in INR
million)
Mouthwashes/Dental rinses Oral Care
 Mouthwashes/dental rinses witnessed the highest value growth of
44% in 2013 against 15.3% for overall oral care industry as urban
consumers used it for better protection, although it is still nascent in
India
 Mouthwash/dental rinses grew at a CAGR of 75.6% between 2008-
13 as against 12.5% for total oral care
 HUL launched Pepsodent Mouthwash in 2012 with the value
proposition of “First Non-Alcoholic herbal mouthwash”
 Mouthwashes/dental rinses is expected to grow at a value CAGR of
29% during 2013-2018
Product
 Available in 7 variants in
India– Fresh Tea, Complete
Care, Sensitive, Freshmint,
Peppermint, Active salt,
Visible white
 Remaining 2 variant - Ice,
Fruity Fresh not available in
India
 Packaged in multiple sizes –
50 ml, 60 ml, 100 ml, 250 ml,
500 ml
 Different colours to
differentiate between
variants
Price
 Pricing is based on
competitor’s price
 Pricing varies with variants
and packaging
Product size Price
50 ml Rs. 30
60 ml Rs. 40
100 ml Rs. 55
250 ml Rs. 115
500 ml Rs. 190
Place
 Widely available in Urban areas
from malls to retailers
 Placed along with competitors
product like Listerine or along with
other oral products from Colgate
 Greater thrust on increasing
product penetration to rural areas
Promotion
 Quick and easy method for
a cleaner, fresher and
healthier mouth
 Educate customers to use it
twice a day after brush
 Help remove 99.9% germs
for 12 hours
 Channels – TV, newspaper,
Hoardings, social media
Segmentation
 Demographic
 Target busy adults
 People whose income fall in middle and upper class as it is a
supplementary product which can be used after brushing
 Geographic
 Mainly for Urban and semi-urban population
 Behavioural
 Adults who want cleaner, fresher and healthier mouth
 Target adults who want white teeth, have sensitive gums
Targeting
 Adults in the age group of 18-60
 Working people who frequently interact with others and have
scarcity of time
 Adults who have teeth problems like cavities, sensitive gums, plaque
Positioning
 Colgate Plax positioned itself based on its functionalities as a
mouthwash which provide fresher breath and germ protection
 Long lasting fresh breath
 Removes up to 99.9% germs
 Alcohol free formulation
 No burning sensation
 The mouthwash that gives 12-hour germ protection
Competitors
Points of Parity
 Prices are similar to its competitors
 SKU’s are similar in packaging and size
 Positions similarly as other competitors to remove bad odour
 Contains fluoride to fight oral problems
Points of Difference
 More variants are present compared to other competitors
 More trusted and popular brand among users
 Alcohol free formulation
References
 http://www.colgate.co.in/app/Colgate/IN/OralCare/Mouthwash/PlaxClassic/Name.cvsp
 Financial Report-
http://www.colgate.co.in/Colgate/IN/Corp_v2/Investor/FinancialReports/annual-report-2014-
15.pdf
 GMID database - http://www.portal.euromonitor.com/portal/analysis/tab
 http://www.colgate.co.in/app/Colgate/IN/OralCare/Mouthwash/ColgatePlax/benefits-of-
colgate-plax.cvsp
 http://www.colgate.co.in/app/Colgate/IN/OralCare/Mouthwash/PlaxClassic/ProductInfo.cvsp
 http://www.colgateprofessional.co.in/products/Colgate-Plax-Mouthwash/details
 http://www.colgate.co.in/app/Colgate/IN/OralCare/HomePage.cvsp
 http://www.dreamstime.com
 http://www.studylecturenotes.com/mba-marketing/marketing-segmentation-targeting-
positioning-or-stp-process
 http://www.zopnow.com/mouthwash-c.php
Pgp30376 section b

Pgp30376 section b

  • 1.
    Brand Extension Analysis –Colgate Plax SUBMITTED BY JITENDRA BHARTI PGP30376
  • 2.
  • 3.
    Colgate-Palmolive Oral Care Toothpaste, Toothbrush, Toothpowder, WhiteningProduct, mouthwash Personal Care Body wash, Hand wash, skin care, hair care, men’s grooming Household Care Surface care  Colgate-Palmolive India is 51%-owned subsidiary of US Colgate-Palmolive Co.  Leading player in oral hygiene in India since 1950s Categories
  • 4.
    Net Profit 2011 INR 4 billion 2012 INR4.5 billion 2013 INR 5 billion  New product launches and increase in penetration in rural India aids value and volume growth
  • 5.
    Market share Product TypeValue Share Rank Beauty & personal Care 6.8% 2 Bath & Shower Negligible 22 Men’s grooming 0.8% 17 Oral care 46.1% 1
  • 6.
  • 7.
    Oral care inIndia Toothpaste is the biggest category with 80% share Increase awareness by educating consumers about good dental hygiene via TV advertisements as well as urging them to brush twice a day Mouthwashes/ Dental rinses has the highest value growth of 44% in 2013 Oral Care is expected to grow at a CAGR of 9% to reach 131 billion by 2018 Increasing awareness of oral care products, increasing penetration in rural market and expanding product portfolio of leading companies
  • 8.
    Market shares inOral Care 45.3 44.7 44.6 46.1 22.2 21.6 21.3 19.7 11.7 11.9 11.3 10.8 4.3 4.5 4.6 4.7 0 5 10 15 20 25 30 35 40 45 50 2010 2011 2012 2013 Colgate HUL Dabur Gillete
  • 9.
  • 10.
    Mouthwash Category 76 72.6 70.8 66.4 12.1 16.117.3 17.6 7.6 6.7 6 5.24.3 4.6 6 10.8 0 10 20 30 40 50 60 70 80 2010 2011 2012 2013 % share of different companies Listerine Colgate Plax AM PM Mouthwash Others
  • 11.
    Comparison of Mouthwash& Oral care industry 133.8 409.4 696.9 1079.9 1550.4 2231.1 46226.8 50117.9 55414.5 63296.1 72374.6 83449.8 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 2008 2009 2010 2011 2012 2013 Comparative growth of mouthwash against oral care(in INR million) Mouthwashes/Dental rinses Oral Care
  • 12.
     Mouthwashes/dental rinseswitnessed the highest value growth of 44% in 2013 against 15.3% for overall oral care industry as urban consumers used it for better protection, although it is still nascent in India  Mouthwash/dental rinses grew at a CAGR of 75.6% between 2008- 13 as against 12.5% for total oral care  HUL launched Pepsodent Mouthwash in 2012 with the value proposition of “First Non-Alcoholic herbal mouthwash”  Mouthwashes/dental rinses is expected to grow at a value CAGR of 29% during 2013-2018
  • 14.
    Product  Available in7 variants in India– Fresh Tea, Complete Care, Sensitive, Freshmint, Peppermint, Active salt, Visible white  Remaining 2 variant - Ice, Fruity Fresh not available in India  Packaged in multiple sizes – 50 ml, 60 ml, 100 ml, 250 ml, 500 ml  Different colours to differentiate between variants
  • 15.
    Price  Pricing isbased on competitor’s price  Pricing varies with variants and packaging Product size Price 50 ml Rs. 30 60 ml Rs. 40 100 ml Rs. 55 250 ml Rs. 115 500 ml Rs. 190
  • 16.
    Place  Widely availablein Urban areas from malls to retailers  Placed along with competitors product like Listerine or along with other oral products from Colgate  Greater thrust on increasing product penetration to rural areas
  • 17.
    Promotion  Quick andeasy method for a cleaner, fresher and healthier mouth  Educate customers to use it twice a day after brush  Help remove 99.9% germs for 12 hours  Channels – TV, newspaper, Hoardings, social media
  • 19.
    Segmentation  Demographic  Targetbusy adults  People whose income fall in middle and upper class as it is a supplementary product which can be used after brushing  Geographic  Mainly for Urban and semi-urban population  Behavioural  Adults who want cleaner, fresher and healthier mouth  Target adults who want white teeth, have sensitive gums
  • 20.
    Targeting  Adults inthe age group of 18-60  Working people who frequently interact with others and have scarcity of time  Adults who have teeth problems like cavities, sensitive gums, plaque
  • 21.
    Positioning  Colgate Plaxpositioned itself based on its functionalities as a mouthwash which provide fresher breath and germ protection  Long lasting fresh breath  Removes up to 99.9% germs  Alcohol free formulation  No burning sensation  The mouthwash that gives 12-hour germ protection
  • 22.
  • 23.
    Points of Parity Prices are similar to its competitors  SKU’s are similar in packaging and size  Positions similarly as other competitors to remove bad odour  Contains fluoride to fight oral problems
  • 24.
    Points of Difference More variants are present compared to other competitors  More trusted and popular brand among users  Alcohol free formulation
  • 25.
    References  http://www.colgate.co.in/app/Colgate/IN/OralCare/Mouthwash/PlaxClassic/Name.cvsp  FinancialReport- http://www.colgate.co.in/Colgate/IN/Corp_v2/Investor/FinancialReports/annual-report-2014- 15.pdf  GMID database - http://www.portal.euromonitor.com/portal/analysis/tab  http://www.colgate.co.in/app/Colgate/IN/OralCare/Mouthwash/ColgatePlax/benefits-of- colgate-plax.cvsp  http://www.colgate.co.in/app/Colgate/IN/OralCare/Mouthwash/PlaxClassic/ProductInfo.cvsp  http://www.colgateprofessional.co.in/products/Colgate-Plax-Mouthwash/details  http://www.colgate.co.in/app/Colgate/IN/OralCare/HomePage.cvsp  http://www.dreamstime.com  http://www.studylecturenotes.com/mba-marketing/marketing-segmentation-targeting- positioning-or-stp-process  http://www.zopnow.com/mouthwash-c.php