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BRAND DOSSIER (TOOTHPASTE ) PHASE I 1

Brand Dossier-Colgate Palmolive

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Doc containing the literature review of the brand Colgate along with an analysis of the questionnaire.

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BRAND DOSSIER

(TOOTHPASTE) PHASE I

PREPARED BY: JASKARAN SINGH KHUSHBOO SHARMA RAHUL TOSHNIWAL RAJASEKAR DHANSEKARAN

CONTENTS NO.TOPICPAGE NO.

1Early history of the brand and its evolution over time3

2Initial positioning and subsequent repositioning6

3Advertising, sales promotion and segmentation8

4Analysis of product and generic competition to the brand20

5Strategies adopted over time by the brand to tackle competition or prime market expansion23

6Distribution strategy followed by the brand26

7Summary regarding the future directions for the brand29

8References30

1. EARLY HISTORY OF THE BRAND & ITS EVOLUTION OVER TIMEJOURNEY FROM WILLIAM COLGATE & COMPANY TO COLGATE PALMOLIVE

Colgate originated in 1806 by William Colgate in New York City under the name of William Colgate & Company, manufacturing soap, starch and candles. In 1857, Samuel Colgate took over the management and reorganized the company as Colgate & Company.In 1873, the firm launched their first toothpaste sold in jars.In 1896, Colgate for the first time sold toothpaste in form of collapsible tubes (invented by Washington Sheffield), Colgate Ribbon Dental Cream.Just to differentiate a little they made their nozzle flat so cream oozed out in flat ribbon like form.In 1928, after the takeover by Palmolive Peet, the company was reorganized to Colgate Palmolive Peet Company.

INCEPTION IN INDIA

1937, 23rd September, Colgate Palmolive (India) was incorporated. They launched Colgate Dental Cream, Toothpowder and Toothbrush.1967, Colgate commenced manufacturing unit at Sewri, Mumbai.1968, Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities.1976, Young Indian Programme was launched first promotional campaign In India.1978, Colgate Palmolive offered Indian Public Offering, with its shares being listed at BSE.1988, Colgate relocated its toothpowder plant to Waluj, Aurangabad.

EVOLUTION OVER TIMEFrom Colgate Dental Cream in 1940s, over time Colgate has added so many variants in its profile: In 1990, Colgate Gel Toothpaste was launched.In 1993, Colgate Total (said to be most advanced) was launched.In 1994, Colgate acquired Cibaca, toothpaste brand, to cater in rural masses and lower middle class.In 2001, Colgate Herbal was launched to cater customers who trust herbal ingredients.In 2004, Oral Health Month campaign was launched and it runs till date every year.In 2005, Colgate Active Salt was launched.In 2006, Colgate Max Fresh Gel was launched promoting fresher breath.In 2011, Colgate Sensitive Pro Relief was launched.In 2013, Colgate Visible White was launched.Lastly Colgate Cavity Protection plus Sugar Acid Neutralizer.

2. INITIAL POSITIONING AND SUBSEQUENT REPOSITIONINGInitial positioningIn 1930s Indians did not use toothpaste much. They used neem twigs, salt, ash, herbal ingredients and even tobacco to clean their teeth. Oral hygiene consciousness was critically low. So Colgates main competitors were traditionally used products. So they had to create awareness amongst people.Initially, with launch of Colgate Dental Cream, Colgate positioned themselves as a product to clean teeth, clean breath and healthy gums.Colgate had to aware people about benefits of toothpaste and simultaneously develop trust for themselves in minds of Indians.Since 1976, Colgate has been working in close partnership with the Indian Dental Association to spread the message of oral health and hygiene throughout the country. Oral diseases such as dental decay and gum disease are serious problems that can be prevented with good oral health habits. Identifying 'preventive oral care' as the main approach to tackling dental problems in India, Colgate has developed focused educational modules under the 'Young India' Bright Smiles, Bright Futures Schools Dental Health Education Program. Each year Colgate and IDA identify new territories to reach the message of oral health and hygiene under this Program while continuing to support oral care awareness programs in schools already covered in the past.The 'Young India 'Bright Smiles, Bright Futures' Schools Dental Health Education Program has reached more than 1,80,00,000 (18 million) school children covering around 40,000 schools in 112 towns across the country.Teacher Training: Since teachers are closely concerned with the mental and physical well-being of their students and since dental care and proper oral hygiene are recognized to be important for maintaining general good health of children, school teachers are trained on the basics of oral health care so that the same can be passed on to children in day to day teaching activities.

RepositioningDue to stiff competition from Pepsodent, Close up and other rivals, Colgate continuously works on its branding strategies to maintain and improve their market share.To keep a more positive picture in the minds of consumer Colgate has changed its positioning from ring of confidence to Colgate fights germs two and half times stronger to Colgates Talk to MeNow due to decades of promotional strategies, awareness development initiatives of Colgate and competitors in this category, Indians are much comfortable with the concept of oral hygiene in general and toothpaste in specific.Due to so much social development programmes, link with Indian Dental Association and continuous supply of good quality product, Colgate has earned high trust amongst the users. They have been often rated as best in the category.So now to position their brand they promote themselves as most trusted toothpaste brand amongst dentist and cater to almost all oral hygiene requirements. They have focused on tagline Dentists recommended No. 1 brand to bank on customers trust.Still they keep contact with consumers by continuous advertisements through all possible ways, development of different and better variants, conducting free dental check-up camps and awareness programs.PRODUCTSColgate has many variants to cater to all types of oral hygiene needs. Some of Colgates product lines are:Taglines of some of their variants are:COLGATE DENTAL CREAM: GET MAXIMUM ALL ROUND PROTECTION.COLGATE TOOTH POWDER: Super Rakshak, Stronger, Healthier Teeth.COLGATE MAX FRESH: Freshness That You Can See.COLGATE TOTAL 12: Fights germs 12 hours.COLGATE CIBACA: Family protection.COLGATE HERBAL: Strong Teeth, Healthy Gums, naturally.COLGATE ACTIVE SALT: Fights germs for Healthy Gums & Teeth.COLGATE SENSITIVE PRO RELIEF: For Instant and Lasting Relief.3. ADVERTISING, SALES PROMOTION AND SEGMENTATION STRATEGY FOLLOWED BY THE BRANDColgate has a strong policy of advertisement by certifying its brand under Indian Dental Association as they tell that their product is recommended by all dentists. This leaves a very positive message to the viewers as no one compromises with their health.Colgate reaches the market by following modes of advertisement: Print / Newspaper Black & white TV ad Color TV Ad Social Media

1. Newspaper Advertisement:

First advertisement: Colgate started with its first advertisement in 1915. Two little minutes: Before the launch of Colgate ribbon dental cream brushing was very time consuming. After the launch of the cream, it just took two minute to brush the teeth Delicious flavour: It became tasty to brush as it has delicious flavour unlike to the traditional method of brushing which had Neem twigs, baking powder etc. Convenient: as compared to the traditional method of brushing, it became very easy for the customers to brush with the cream Economical to use: it was quite economical regarding the usage and amount of wastage was also low.

2. Commercial advertisement- 3 ways to clean

It was made in 1950 It showed that a lady enters into a soda shop, which indicated that the soft drinks had emerged as one of the most significant dietary sources of tooth decay for all the ages. Acids and acidic sugar by-products in soft drinks softened the tooth enamel, contributed to the formation of cavities. Usage of soft drinks in extreme cases may soften enamel combined with improper brushing, grinding of the teeth or other conditions lead to tooth loss Targeting: It targeted both the genders and ages between 20s and 30s and it acted as a cosmetic product for both the genders. 3 ways clean: being its tagline meant cleaner breath, cleaner taste and cleaner teeth Use of Colgate: It was socially accepted and it was an eye ball catcher of opposite sex Creating the new want: Colgate emerged with this advertisement with an intention to create new wants as it was assumed that food particles were getting stuck between the teeth Whitening care: it one of the features that Colgate gave and attracted most of the targeted audience

3. Colgate 1995- Colgate gel

Target audience: Colgate came up with this toothpaste targeting mostly the teenage. It took Aishwarya Rai in the advertisement with an intention to attract the target audience and mainly boys and the advertisement showed that after brushing the activeness lasted for long hours and made him believe that he can achieve his dreams through the freshness that is attracting opposite sex with activeness and freshness. It came up with two different gels, red for girls and blue for boys

4. Dentists suggested toothpaste Colgate strong teeth

It was Colgate who came up with a new variant which delivered the message that it was a dentists suggested toothpaste Target audience: Mainly it focused on the kids As its previous variants, it didnt focus on taste of the paste. It was more focused to minerals and calcium content in the toothpaste.5. Colgate visible white

It gave a message to put efforts in a right direction and effortless beauty It was more a cosmetic product and it didnt focus on germs and decay of teeth and mainly catered to the need of the women Gave a promising message of 1 shade whiter teeth in 1 weekColgate leveraged the rule of being the first to their advantage psychologically firsts are always remembered Social mediaFacebook The Colgate Facebook page (India) which has close to 2,127,003 likes which encourages Facebook users to upload their smiling photos Likes on Facebook page, Sensodyne India is very less- 351 Likes, though Sensodyne has first launched toothpaste for sensitivity and also Sensodyne is the market leader in Sensitive product, however the Facebook Page of Colgate Sensitive Pro-Relief India has 67,110 likes , Which shows the brand image of Colgate. It was not only a stellar way to increase the number of Likes on a page, but it was also a great opportunity to get people involved, talking about the brand and trying the brand

Colgate get smile on Facebook With its Smile campaign in summer 2011, CPG toothpaste brand Colgate used a dedicated Facebook page where users were encouraged to upload their smiling picture. These were then turned into large collage posters which were displayed in supermarkets, shopping malls and other point of sale locations. Wave Matrix analysis reveals that Colgates strategy also had a positive effect on purchase discussion, as users became 2.5 times more likely to discuss purchasing toothpaste as the campaign went on. Moreover, the Smile campaign had a positive impact on brand image, as users identified Colgate with a sense of community and fun Even in Twitter, Colgate has huge responds and fan followings There's even an iPhone app to help them upload those smiley photos. An analysis by Wave Matrix, which tracks online buzz for major global brands, indicates that Colgates strategy "has a positive effect on purchase discussion"

Sales Promotion

Charcoal, neem twigs, husk, salt & powder mixtures have been some of the traditional form of oral hygiene products used in rural India. Aggressive is the only word that could perfectly describe the advertising& sales promotion strategy of Colgate.Colgate has been creating awareness through its rural promotion vans &Young India, Bright Smiles, Bright Futures, schools dental education program.Today, this program reaches 10 million school children every year. Colgate was heading for a total monopoly in the rural markets & it was leaving no stone unturned for doing the same Colgate stepped up its rural promotion drives with IDA (Indian Dental Association) to add value.

In India, Colgate-Palmolive in partnership with Indian Dental Association (IDA) has been conducting Oral Health Month since 2004 covering a wide spectrum of activities designed to spread oral health awareness and good oral hygiene practices.Oral Health Month has grown phenomenally in the past ten years and has emerged as a leading campaign for promoting oral health awareness in India. Owing to its success, since 2009 Colgate-Palmolive earmarked two months instead of the traditional one month.In the year 2012, Oral Health month was spread across 1116 towns with a total of 25,000 dentists participating in the program. The two-month long oral care awareness drive covered in-clinic free dental check-ups, school contact program, free dental check-ups in mobile dental vans, retailers outreach program and many more such activities to engage 3.7 million consumers.

As in the past, in 2013 too, the campaign saw intensive efforts to spread awareness regarding the need for good oral hygiene.Colgate today is the major sponsor of almost all Dental Conventions, Seminars, Conferences and specialized workshops. In collaboration with the Indian Dental Association, IDA-Colgate Continuing Dental Education Programs are regularly organized all over the country, exposing the practicing dental professional to the latest advances in dentistry. This has been the stepping stone to the high penetration in rural minds.

Promotions through Sampark

Colgate suggested and implemented a rural promotional scheme which was called Sampark for as they were specialist in rural advertising category.

Sampark had limited budget to their disposal. Going in for mass media would not prove to be costly but the reach would be limited as, still only very few people own& possess a T.V. or a radio. Sampark wanted something that had far & wide reach that is why Sampark decided to their advertising by door to door selling. Sampark hired people from a certain locality who knew the local language, jargons & idioms. This not only helped Colgate communicate easily with the consumer but was also effective in sending the right message across to the rural consumer, the other plus point of this messagewas that the communication gap was reduced to a large extend. These people would move about in the villages telling the people about the pros of using advanced oral care products & the cons involved in tradition oral care system, this was quite difficult as rural people always felt that natural was the best. Colgate trained these salesmen to convince the rural population & make them try the free sample that Colgate was distributing free.

The next best option that Sampark choose after door to door selling was publicity vans also called as A/V vans. Seventy promotion vans do the rounds ofthe country & educate rural folks on oral hygiene products such as toothpaste, toothpowder& toothbrushes.

These vans used to travel from village to village &depending upon the market day in that specific village. These vans also did a number of other activities at a time such as spot selling, sampling, retailing etc. The vans used to be parked in strategic locations, they were highly decorated so as to get more curious eyes & in the process educate the rural folk.

The roving Colgate vans, after screening a 22 minute film on oral hygiene that explains how to use the product, offer sampling at stalls setup near the van. 60percent of the towns were covered by Colgate with their own distribution strategy& the remaining 40 percent was covered by other distributors. There are puppet shows done in the villages educating the villagers about the plus points of using modern hygiene products.

Educational films were also shown in between movies in theatres, these are usually10-40 seconds which were educational & 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, these tactics are also used in Haats & Melas thought the length & breadth of India. The thrust towards promotion through schools has done wonders in changing the awareness levels as well as a shift towards the new decision-makers in the rural families.

Celebration Offer: Colgate Dental Cream 75 Years Celebration Offer , Colgate will randomly select total of 368 entries, who will get a chance to win Scholarships worth Rs 1,00,000/- or Laptops or School kits. The selection of winners will be done by random sampling by computer. Colgate does not have any discretion, choice or hand in such process.

Combo Offers and BOGO:

Reasons: To increase the short term sales To launch new product of Colgate To Block the competitors launch To reduce the inventoryColgate has been promoting short term sales whenever the market has above situations. Examples:

Social Promotions

Colgate has used Facebook as a social media to promote its new promotion strategies. Colgate has made a promotional Strategy to provide GarnierFructis Shampoo sachets free with Colgate Max fresh to attract consumers from Facebook as well. Price discounts are communicated through POP advertising, window displays, sales people, and advertising in newspapers, magazines and TV ads.Such promotions work very well in gaining the attention of consumers, particularly at the point of purchase among similar brands and it may also encourage unplanned or impulse buying. Determining the quantum of discount depends on the consumers price perceptions and may be difficult to decide.If there are three different models of a product and because of the discount offered the price of the higher end model is appears, not too high to the consumer as compared to the lesser priced model, then the consumer may buy the higher end model.

Colgate soon got popular in rural India as well. In fact, the brand has become so generic with the product itself that it is not surprising to find rural consumers asking for Colgate when they buy toothpaste or tooth powder or tooth brush. The company, on its part, says that the rural markets account for about one third of its total sales, the rest coming on urban sales.

Segmentation strategy followed by the brandSince the company was established, Colgate-Palmolive has introduced a broad variety oftoothbrushes and toothpaste meant to serve consumers with a variety of different oral healthproblems and priorities. Today, they continue to introduce new and improved products to the market that they hope will target many different consumers needs.Demographic Age:4 to 70(approximate all age category) Gender:male and female. Income:In Indian toothpaste market, Colgate is ranked one of the products which have the high price and high quality. Thus, the main Colgates targeted customers are people who have medium and high income. These people can afford to buy Colgate Total without spending too much time to think before purchasing it.Psychographic Lifestyle:Colgate targets clients who have modern life style and like to use famous brand. Also, people who care about their gum disease are the second targeted customers of Colgate. In fact, they desire products that can bring them many benefits including whitening the teeth along with reduction the gum diseases such as bad breath, stains and plaque. Moreover, Colgate is a popular brand name all over the world, customers who like to use famous brand will choose Colgate as the first choice.Behavioral Occasions: the purchasing of Colgate happens monthly. Status: customers who have loyalty and habitual purchasing will trust and choose Colgate as the best toothpaste to care their familys teeth heath.

Segmentation based income and age groupCOLGATE TOTAL 12: Focus of this product is upon the hygiene conscious consumers and patients who are suffering from gum problems. Age: 35 and above Region: Urban

COLGATE SENSITIVE: This product prevents nerve ends; provide effective relief from pain of sensitive teeth and gently whitens the gums. This product targets the hygiene conscious customers and also the patients who are suffering from serious teeth and gum problems.Target People: Who has sensitivity problems and Mid & Low- Income group peopleRegion: Urban

COLGATE MAX FRESH: The gel properties of this product of Colgate give freshness along with protection. This product specially targets the young generation who avoids bad breath and inculcate the word freshness.

COLGATE KIDS TOOTHPASTE: This product helps to prevent tooth decay of the kids. Target People: KidsPlace: Urban

COLGATE FRESH ENERGY GEL: This product of Colgate has the freshness which gives freshness and energy to the user and helps to avoid bad breath. This product targets the young generation who prefers freshness.Target People: Youngsters Place: UrbanCOLGATE VISIBLE WHITE:A new breakthrough in oral care that works like magic. With a unique formula and advanced whitening accelerators that make teeth sparkle, Colgate Visible White can make teeth up to one shade whiter in just one week.Target People: Youngsters (Higher income group people)Place: urbanCOLGATE CIBACA:Unique formula protects your teeth from decay and refreshing minty flavour makes your breath super fresh.Target People: Low income peoplePlace: Specially for ruralCOLGATE ACTIVE SALT:It is well known for its oral care benefits and unique formula fights germs and makes your gums healthy and teeth strong.Place: urban & ruralPrice: Mid-Priced

Different SKUs of Colgate toothpaste

4. ANALYSIS OF PRODUCT AND GENERIC COMPETITION TO THE BRAND

SWOT-Colgate-PalmoliveStrengths Core brand equityThe companys eponymous brand enjoys a strong level of consumer recognition. This equity is invaluable in terms of gaining leverage in new markets, while loyalty is key core sales areas. Wining on the groundColgate-Palmolive coined a strategy called wining on the ground, which means offering products based on consumer needs and communicating the benefits through various marketing strategies including free samples and the internet.Weakness Narrow product focusOral care accounts for nearly two thirds of Colgate-Palmolives beauty and personal care revenue. It is vulnerable to a downturn in this highly mature category, which does not lend itself easily to innovation Mass-marketing positionA strong mass-market position makes it difficult for the company to add value to its core brands. Hence, Colgate-Palmolive is vulnerable to private labels, discounters and imitators.Opportunities Deodorants offers good opportunityAmongst the categories the company is present in, deodorants have the strongest growth projection, although this is toned down by mature markets Intimate Hygiene in bath and showerIntimate hygiene recorded strong growth in both Brazil and China, but Colgate-Palmolive has no significant presence in this category. It may consider launching intimate hygiene to gain more from these markets projected to drive absolute growth.

Threats Challenge from P&GWith a stalwart such as P&G looking to expand globally in more prospective markets, Colgate faces strong competitive challenges and needs to continue investing in product development Rising competitionThe downward pressure on spending power is forcing an increasing number of consumers to trade down from mid-market brands to private label. Colgate-Palmolive is at risk from this trend.

+9Generic competition to the brandColgate-Palmolive is a diversified company with products in many categories including oral care, personal care, and home care. The diversified product portfolio serves as strength as it minimizes risk by not putting all of their eggs in one basket and maximizes growth opportunity by having expanded business operations and markets to serve.There were many generic competitors like Neem twig Ash Salt Tobacco Baking sodaCompetitors:- HUL(Pepsodent And Close-up) Amway Avon Oriflame Anchor Dabur Himalaya ViccoCOLGATE WITH THEIR COMPETITORS

TYPECOLGATECOMPETITORS

VANILLA VARIANTColgate strong teeth 200gm- Rs72Pepsodent Germi check 200gm Rs 70

GEL VARIAN T Vvv vvvvvvvvvvvvvvvvvvvvvvvvvvvvvv cvv v Close-up 150gm Rs 75Pepsodent centre fresh 150gm RS 75

WHITENING VARIANTVisible white 100gm Rs 79Max white 150 gm Rs 70Pepsodent whitening 150 gm Rs 70

GUM CARE VARIANTColgate sensitive 80 gm Rs 90Colgate sensitive pro relief 75gm Rs 95Colgate total 150 gm Rs 92Sensodyne 80gm Rs 98Pepsodent g 80 gm Rs 45Pepsodent sensitive 80gm Rs 90Oral B pro health 140 gm Rs 98

5. STRATEGIES ADOPTED OVER TIME BY THE BRAND TO TACKLE COMPETITION OR PRIME MARKET EXPANSION

Colgate has done a surprisingly good job of holding onto market share, despite under spending almost all its competitors in advertising. Fit to compete; been there, done that is the key takeaways to compete.Colgate highlighted that competition from other players like Hindustan Unilever, Ajanta, Anchor, Dabur and Vicco has increased recently. We believe Colgate, with its single- minded focus on oral care, is rightly placed to face competition.The marketing war between the two FMCG giants Colgate Palmolive and the challenge Hindustan Lever for protecting market share got tough.

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. At prices similar to the low priced challenger brands it took the battle right into their turf. The market dynamics changed. Within a year, Colgate Cibaca managed to garner whopping 50% of the market share in the discount segment and established Colgates supremacy once again. HULs 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.

Colgate Vs Pepsodent:There is the classic toothpaste war between Colgate and Pepsodent, where repositioning against each other is happening all the time. First it was Pepsodent's claim that they fight germs twice as long as Colgate. This was against Colgate's long-cherished positioning statement of a germ and cavity fighter culminating in the Colgate ring of confidence" Colgate found that they were losing the strong brand loyalty that it traditionally enjoyed with nearly 50 per cent market share (This data is with respect to that ad war time) Therefore, they hit out with a counter claim that Colgate fights germs two-and-a-half times longer to dilute the positive perception that Pepsodent was building so assiduously with the consumers The Dishyum dishyum campaign of Pepsodent very effectively created a positive note and dug further into Colgate's "germ fighter" domain Colgate's "Talk to me" campaign is by far the most effective counter salvo they have fired that tugs at the heart strings of its prime target audience "" teenagers and young adultsIt is, however, yet to be seen who is winning and who is holding out. It would be unwise to dismiss that Pepsodent's strategy has put Colgate on the defensive and thereby, repositioning it.Close Up:Close Up had the first mover advantage in gel segment. A large part of success can be attributed to two factors- Youth centric product positioning and Innovative product pipeline Close Up success is their brand positioning since its launch about 3 decades ago, Close Up has not swayed from its freshness and confidence image. The strategy worked well when Colgate was harping on tooth decay To break in to Close Ups strong hold, Colgates Max Fresh gel has been trying to don a young image. Colgate roped in numerous celebrating arranging from Bollywood stars to Indian Cricketers to promote the power of freshness. It is also building an engaging Facebook and organized a Max Fresh Alarm contest during the IPL season 4.Sensodyne: Colgate-Palmolive was addressing a wide variety of consumer oral hygiene needs such as cavity protection, mouth-odour prevention, and strengthening of gums, targeting primarily the young consumer GlaxoSmithKline Consumer Healthcare Indias carved out a profitable share through its focused positioning strategy in the oral care market. Sensodyne identified the positioning gap for toothpaste appropriate for sensitive teeth a need more pronounced in the adult population Sensodyne was launched with advertisements in which experts recommended that the product address the problems associated with sensitive teeth. The inroads made by Sensodyne prompted their market leader, Colgate-Palmolive, to launch Colgate Sensitive followed by one more variant called Colgate Sensitive Pro-Relief which was supported by an ask the dentists advertisement campaign

The marketing war between the two FMCG giants Colgate Palmolive and the challenge Hindustan Lever for protecting market share got tough. 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. At prices similar to the low priced challenger brands it took the battle right into their turf. The market dynamics changed. Within a year, Colgate Cibaca managed to garner whopping 50% of the market share in the discount segment and established Colgates supremacy once again.HULs 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.Colgate could face tough competition in the toothpaste category with the likely entry of new players. Strong distribution network, powerful branding strategy, almost generic brand and huge customer acquisition initiatives will provide high entry barriers to new entrants.

6. DISTRIBUTION STARTEGY FOLLOWED BY THE BRANDThe most important part of marketing is how a product will arrive from the seller to the buyer. The distribution strategy proposed through dentist, plastic surgeons, drug stores, grocery stores, large retail stores and departmental stores. Therefore Colgates channel system is indirect because its consumers are spread through geographic area and often prefer to shop for certain product sets at specific places.Besides convenience stores and large retail stores many food stores play key role in distribution ..of Colgates products.

The company reaches the consumers via 4.5 million retail outlets out of which 1.5 million are direct outlets. The oral care distribution network is spread across 90 cities in India which is serviced by company field force, more than 1800 stockiest, super stockiest and their field force. Colgates flagship brand, Colgate Dental Cream, is the largest distributed product in the Toothpaste market available in 4.1 million stores.Colgate Palmolive uses all the available intermediaries wholesalers, retailers, and stockiest.

Factory

Warehouse / C&FC

Co-op stores (Direct)

Super Stockiest (Direct)Stockiest (Direct)

Rural Stockiest (Indirect)

1Retailer

WholesalerRetailerWholesaler

Consumer

The above diagram is explained below1. WholesalerThe Indian wholesaler is principally a Galla Kirana (food-grain) merchant who sustains the belief that business is speculative rather than distributive in character.2. RetailersVillage retailers have traditionally been among the most mobile of rural residents. They enjoy the confidence of the villagers. Their role as influential leader is indisputable. In rural market retailers remain the deciding factor to sell particular brand. Retailers help in identification and selection of brands, there is less influence of shelf displays and point of purchase promotion.3. Weekly Haats, Bazaars, ShandiesThe haats are the oldest outlets to purchase household goods and for trade these 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 throughout the country.3. Mobile 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.4. Melas and FairsThis 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.

5. ITC E-ChoupalColgate has also tied up withITC E-Choupal and Rotary to spread the message of dental care and oral hygiene to villages across India. 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.As the time changes the companies changed from single channel distribution system to the multichannel distribution system, often called as hybrid marketing channels. Multichannel marketing occurs when a firm sets up two or more marketing channels. With each new channel, the company can expand its sales and market coverage. But those are hard to control, and may create conflicts. Colgate Palmolive uses the Multichannel distribution.The steps Colgate took were to redesign its distribution network, improve its transportation management system, update its logistic efficiency program, and develop customer cost to-serve data. The use of integrated logical systems (ILS) encompasses materials management, material flow system and physical distribution aided by information technology. Through this use of ILS Colgate has been able to shorten the order cycle time, reduce clerical labor, reduce error rates in documents and provide improved control of operations.

7. SUMMARY REGARDING THE FUTURE DIRECTIONS FOR THE BRAND

Colgate thinks that their latest variant i.e. .Colgate Maximum, could cannibalize some of their existing variants instead of rival brands, but only at the premium end. It (Colgate Maximum) is priced at a premium to the family brand that exists. Colgate is anticipating that a lot of family brand consumers will upgrade. Colgate believes that the latest variant will attract a non-Colgate user which was seen in markets such as Brazil, Turkey and Malaysia, where the product has been launched.

According to Nielsen, there is one store opening every five minutes in India. For growth, Colgate has to be in all these stores. So there is more headroom to drive distribution in foreseeable future. Given that Colgate has a huge range of variants from a simple dental cream to premium toothpaste creates opportunities in the near future. Instead of toothpaste in home, people are now using different toothpastes. That itself will help Colgate to change their portfolio. Now, looking good is important and everyone wants white teeth. So the whole area of beauty opens up and there can be many sub-segments within it. Colgate as of now is not very aggressive in online advertising. Of all the segments of the advertising market, the internet advertising segment is expected to be the fastest growing segment with an expected growth rate of about 35% between 2010 and 2011. This is expected to grow at approximately the same rate till 2016. High-end products which require high involvement of consumer, such as Colgate, could be advertised through radio. India with its liberalizing radio regime is likely to experience the worlds fastest growth rate for radio up by 21.9% each year on average through 2016. Colgate is also focusing toward rural rich and consuming class by endorsing the development of Colgate Ayurvedic Toothpowder .They would come up sachets of these tooth powder and position toward rural population who buy in smaller lots. Colgate is the market leader in the Indian oral care market, with a 56% market share in the toothpaste segment, 48% market share in the tooth-powder market and a 30% share in the toothbrush market. In past few years the company has increased it expenses for promotions and aggressive campaigning. Apart from launching battery-based toothbrushes, the company has undertaken oral and dental care awareness programs.

REFRENECS: 1. http://www.colgate.co.in/app/Colgate/IN/HomePage.cvsp2. Book- Marketing Management 14e by Philip Kotler3. http://www.brandchannel.com/home/post/2011/07/06/Colgate-Social-Media.aspx4. http://moneymatters.blog.com/colgate-company-perfomace/5. http://www.edelresearch.com/rpt/showpdf.aspx?id=20236&reportname=/Consumer_Goods_-_sector_update-Apr-12-EDEL.pdf&lgt=656vfdg&type=ynaj9XvqmJoptbYzJzovtA==6. http://articles.economictimes.indiatimes.com/2013-12-11/news/45080842_1_sensodyne-overall-toothpaste-market-gsk-consumer-healthcare7. http://books.google.co.in/books?id=HsS3DKe0eBAC&printsec=frontcover&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false8. http://www.youtube.com/watch?v=9QrFa3tDwvY9. https://twitter.com/ColgateSmile10. https://www.facebook.com/ColgateIndia?fref=ts

PHASE II

CONTENT

S.NoParticularsPage No:

01List of hypothesis33

02Justification for the Hypothesis33

03Information collated from the research34

04Instrument of Data collection35

05Sample plan and sample Size37

06Methods of data analysis38

List of Hypothesis

Hypothesis 1: Colgate is the most salient and trusted brand

Hypothesis 2: Colgate toothpaste is more of a cosmetic product than an oral care product.

Hypothesis 3: The Colgate consumer buying behavior is influenced by the celebrities.

Hypothesis 4: Colgate Sensitive / Pro-Relief is more popular than GSK Sensodyne.

Justifications

Hypothesis 1:

The oldest Brand & the market leader They are promoting Colgate as No 1 brand recommended by Dentist

Hypothesis 2:

Colgate has shifted its focus from cavity protection and healthier gums ( Oral Care) to fresher breath and whiter Teeth (Cosmetic Care)Breath(Odor) and Freshness- Colgate MaxFresh Whitening- Colgate Visible White Hypothesis 3:

Celebrities give the brand a face and lend some credibility to its message by exemplifying them as an attribute of Colgate

Hypothesis 4:

Sensodyne has identified the position gap for sensitive teeth and advertised with intensive dentist program and targeted adult group, however Colgate has also launched Colgate Sensitive followed by one more variant Colgate Sensitive Pro-Relief and even they used the dentist to promote by ask the dentist ad campaign and targeted youth..Colgate has a bigger brand image and a stronger distribution team

Information requirements to be collated from the research

For Hypothesis 1:

Colgate has tied up with Indian Dental Association and works on many awareness campaigns to earn the trust of people. Col gate has topped Brand Equitys Most Trusted Brands survey twice. So here we want to figure out if people actually link Colgate with trust.

For Hypothesis 2:

Colgate has launched many variants in the past decade. There earlier launched variants focused on attributes like quick cleaning, tooth decay prevention, stronger teeth and germ protection. Now they have added and focus on cosmetic attributes like whiter and shining teeth and fresher breath. So we need to find whether Colgate is shifting into a cosmetic brand from an oral hygiene brand.

For Hypothesis 3:

Colgate has given huge importance to celebrity endorsements in its promotion strategy. So we need to find whether this expense has really converted into awareness and sales.

For Hypothesis 4:

GlaxoSmithKline launched Sensodyne to prevent teeth erosion in 2006. They had hit a completely new attribute which was untouched till then. To counter that and keep the market share Colgate launched Colgate Sensitive and then Sensitive Pro Relief. So for this hypothesis we need to find out which of the two brands people connect with for teeth erosion.

Questionnaire

Please spare a few minutes of your valuable time to answer this simple Questionnaire.

1. Which brand comes to your mind when I say toothpaste?

2. Which other brands come to your mind when you think of toothpaste?

a) Pepsodentb) Close Upc) Colgated) Sensodynee) Others

3. Which of the following is your most often used brand?

a) Pepsodent b) Close-up c) Colgate d) Sensodyne e) Others 4. Relate the celebrities with the brands?Celebrities/BrandPepsodentBaboolColgateOral B

Sharukh Khan

Madhuri Dixit

Sonam Kapoor

Irfan Khan

5. Associate the attributes to the brands given?Attributes/BrandPepsodentColgateSensodyneClose Up

Trust

Sensitivity

Fresher Breath

Whiteness

Prevention of tooth decay

6. Based on sensitivity how likely would you prefer GSK Sensodyne over Colgate Sensitive?a) Unlikelyb) Somewhat Unlikelyc) Undecidedd) Somewhat likelye) Likely

Your details:Name:Gender: Age:

Sampling plan and Sample size

Sampling Plan

A sampling plan is a detailed outline of which measurements will be taken at what times, on which material, in what manner, and by whom. Sampling plans should be designed in such a way that the resulting data will contain a representative sample of the parameters of interest and allow for all questions, as stated in the goals, to be answered.

Sample description:

The data used for sampling is convenient, representing the people falling in the age group 18-30 and 30 above with the division on the basis of gender.

Sample Unit: Age group from 18-30 and above 30

We have taken the age groups from 18-30 and above 30 because people falling in the age group below 18 does not take their decisions by their own.

We have segregated data for 30 and above because with increasing age people purchase toothpaste based on their habits.

Sample size: 100 respondents

We have chosen00 respondents as a sample size because market penetration is more than 95% so the sample size is large.

Sampling method: judgmental sampling

We have chosen judgmental sampling so as to keep the ratio of male to female and the age segmentation of the respondents in the sampling to sync with actual population.

Methods of Data Analysing:

Question 1: Pie Chart

Question 2: Bar Graph

Question 3: Pie Chart

Question 4:

Question 5: Bar Graph

Question 6: Horizontal Bar Graph

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