Brand Extension Analysis – Colgate Plax

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

2012INR 4.5 billion

2013INR 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 IndiaToothpast

e is biggest

category with 80%

share

Educate consumers about good dental hygiene via TV advertisements as well as urging them to brush twice a day to increase awareness

Mouthwash has

highest value

growth of 44% in 2013

Oral Care is

expected 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

2010 2011 2012 2013

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

Colgate HUL Dabur Gillete

Mouthwash

Mouthwash Category

2010 2011 2012 20130

10

20

30

40

50

60

70

8076 72.6 70.8

66.4

12.116.1 17.3 17.6

7.6 6.7 6 5.24.3 4.6 610.8

% share of different companies

Listerine Colgate Plax AM PM Mouthwash Others

Comparison of Mouthwash & Oral care industry

2008 2009 2010 2011 2012 20130

10000

20000

30000

40000

50000

60000

70000

80000

90000

133.8 409.4 696.9 1079.9 1550.4 2231.1

46226.850117.9

55414.563296.1

72374.6

83449.8

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 Price50 ml Rs. 3060 ml Rs. 40100 ml Rs. 55250 ml Rs. 115500 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

Online Availability

Available on all major online retailers website

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

https://www.youtube.com/watch?v=gvmQI4Qxq4w

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- Direct

Listerine Mouthwash Pepsodent

Mouthwash AM PM Mouthwash Himalaya HiOra-K Befresh Mouthwash Enliven Mouthwash

Competitors- Indirect

Toothpaste Breathe Fresheners Floss Toothbrush Tooth whiteners

Consideration Set

Listerine, Pepsodent, Oral-B and HiOra-K are considered by consumers

Points of Parity

Removes bad odour Alcohol free formulation Contains fluoride to fight oral problems Prices are similar to its competitors SKU’s are similar in packaging and size

Points of Difference

More variants are present in market Provides 12 hours of freshness More trusted and popular brand

among consumers Kills 99.9% bacteria Easily available in stores

Perceptual Map

Price

Bran

d Va

lue

Summary

Mouthwashes to grow at CAGR of 29% between 2013-18

Colgate Plax is available in 7 variants in India in different sizes

Easily available on online and offline stores

Low price and high brand value

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 http://

www.indiastudychannel.com/resources/157696-Best-Mouth-Wash-Indian-market-its-prices.aspx

Under the guidance ofProf. Sameer Mathur

Indian Institute of Management, LucknowMarketing Professor 2013-

Marketing Professor 2009-2013

Ph. D and M.S. Marketing 2003-2009BuddingMarkets.com

Submitted ByJitendra BhartiPGP30376Indian Institute of Management, Lucknow

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