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Top Five Toothpaste Brands in Mumbai UNIVERSITY OF MUMBAI MPES COLLEGE OF COMMERCE & MANAGEMENT. JERBAI WADIA ROAD, BHOIWADA PAREL, MUMBAI-400012 PROJECT ON 5 TOP TOOTH PASTE SUBMITTED BY MAYURI BALAWANT RANE TYBMS IN PARTIAL FULFILMENT OF THE COURSE BACHELOR OF MANAGEMENT STUDIES (B.M.S) 2011-2012 PROJECT GUIDE MISS. NITA DALAL 1

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Page 1: 5 Top Tooth Paste

Top Five Toothpaste Brands in Mumbai

UNIVERSITY OF MUMBAI

MPES COLLEGE OF COMMERCE & MANAGEMENT.

JERBAI WADIA ROAD, BHOIWADA PAREL, MUMBAI-400012

PROJECT ON

5 TOP TOOTH PASTE

SUBMITTED BY

MAYURI BALAWANT RANE

TYBMS

IN PARTIAL FULFILMENT OF THE COURSE

BACHELOR OF MANAGEMENT STUDIES (B.M.S)

2011-2012

PROJECT GUIDE

MISS. NITA DALAL

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ACKNOWLEDGEMENT

IT IS MY GREAT PRIVILEGE TO THANKS M.P.E.S COLLEGE OF MANAGEMENT & COMMERCE PARTICULARY PRESIDENT AND CEO OF M.P.E.S. DR SATISH KELSHIKAR, FOR GIVING ME THE OPPORTUNITY TO COMPLETE THIS PROJECT WORK.

I ALSO SINCERELY THANK MY PROJECT GUIDE, PROF.PRADIP MANJREKAR FOR HAVING GUIDED ME THROUGH THIS RESEARCH WORK WITHOUT WHOSE HELP IT WOULD HAVE BEEN IMPOSSIBLE TO COMPLETE THIS WORK.

I M ALSO THANKING MY PARAENTS, FAMILY MEMBERS AND FRIENDS FOR THEIR ENCOURAGEMENT AND HELP.

MY HUMBLE THANKS TO MY MERITORIUS GOD FOR GIVING ME ENCOURAGEMENT AND POWER TO COMPLETE

THIS RESEARCH WORK.

PLACE-MUMBAI ---------------------

Date: - Signature

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DECLARATION

I MISS. MAYURI BALAWANT RANE OF T.Y.B.M.S STUDENT OF M.P.E.S COLLEGE OF COMMERECES AND MANAGEMENT HERE BY DECLARE THAT I HAVE COMPLETED THIS WORK ON STUDY ON 5 TOP TOOTH PASTE IN THE ACADEMIC YEAR 2011-2012.

THE INFORMATION SUBMITTED IS TURE AND ORIGINAL TO MY BEST KNOWLEDGE

PLACE-MUMBAI --------------------

Date: - / / Signature of Student

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CERTIFICATE

THIS IS TO CERTIFY THAT THE WORK ON STUDY (5 TOP TOOTH PASTE) IS BONAFIDE RESEARCH WORK CARRIED OUT BY MISS MAYURI BALAWANT RANE OF T.Y.B.M.S STUDENT IN THIS INSTITUTION UNDER THE SUPERVISION/GUIDANCE OF THE CONCERNED FACULTY IN ACADEMIC YEAR 2011-2012

PLACE-MUMBAI

DATE: - / /

-------------------- ---------------------

DR. SATISH KELSHIKAR MISS.NITA DALAL

PRESIDENT and CEO PROJECT GUIDE

M.P.E.S. MUMBAI

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TABLE OF CONTENTS

Chapter.1 Introduction of Toothpaste Industry

1.1 Brief History of Toothpaste

1.2 Industry Overview

1.3 Scope of the Study

1.4 Objective of Study

1.5 Research Methodology

1.6 Research work

Chapter.2 Consumer Behaviors

2.1 Meaning of Consumer Behavior

2.2 Introduction Indian consumer behavior

2.3 Characteristics of the Indian Consumer Behavior

2.4 Different segments of Indian consumers

2.5 Increasing Awareness of Indian Consumers

2.6 Marketing Strategies

2.7 Changing Trends in Indian Consumer Behaviors

2.8 Consumer Behavior towards different toothpaste

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Chapter.3 Top Five Toothpaste Brands

3.1 Colgate Dental Cream

3.2 Close-Up Active Gel

3.3 Pepsodent Complete 10

3.4 Colgate Cibaca Top

3.5 Colgate Fresh Energy Gel

3.6 Other brands

3.7 Brand wise Market Share

3.8 Survey Report & Data Analysis

Chapter.4 ANALYSIS OF TOOTHPASTE BRANDS

4.1 Colgate Palmolive (INDIA) Ltd. {CPIL}

4.2 CLOSE UP

4.3 Pepsodent

4.4 Cibaca

Chapter.5 Case Study Based on Cibaca

Conclusion

Recommendations

Bibliography

Annexure

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Chapter.1

Introduction of Toothpaste Industry

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1.1 Brief History of Toothpaste

Toothpaste use was first reported in Africa (Egypt) at about the

4th AD. The primitive toothpaste was we know was made up of salt,

pepper, mint leaves and iris flower. Urine based toothpaste was widely

used in Europe during the Roman times. In early America, toothpaste

consisted of burnt bread. Up till today in many parts of Africa,

specific types of herbs are still been chewed which helps to keep the

mouth and teeth pristine clean.

1.2 Industry Overview

India is still a nascent country in dental hygiene, with the

majority of the population still not having access to modern dental

care but relying on substances like coal ash and neem sticks.

In India, per capita toothpaste consumption stood at 74g in

2005, which is amongst the lowest in the world, compared to 350g and

300g in Malaysia and Vietnam respectively.

Toothpaste enjoys a country wide penetration level of 50%. The

penetration levels of dentifrice in the country have been on an upward

trend over the last few years driven by strong improvements in

toothpaste penetration.

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(Table 1.2): Toothpaste Penetration

All India Urban Rural

Penetration% 50% 75% 39%

With the huge consumer base waiting to be tapped and the

expected rise in purchasing power as the economy picks up, oral

hygiene in India may receive a fresh lease of life.

A) The Toothpaste market

Oral hygiene continues to be under aggressive competition,

with sales increasing by a modest 3% in current value terms in 2006 to

Rs. 2,400 crs. Toothpaste accounted for a whopping 83% of value

sales.

(Table A-1): Toothpaste market in value (in Rs. crs.)

Period Urban + Rural Urban Rural

Apr-Mar04 1897 1340 556

Apr-Mar05 1950 1386 565

Apr-Mar06 2009 1414 594

(Table A-2): Toothpaste market in volume (in tones)

Market volume trends Urban + Rural Urban Rural

Apr-Mar04 77320 53791 23529

Apr-Mar05 84501 59172 25329

Apr-Mar06 86562 59922 26640

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(TableA-3): Value - Zone Wise (in Rs. crs.)

North zone East zone West zone South zone

Apr-Mar06 486 335 543 645

%wise 24 17 27 32

(Table A-4): Value - Town Wise (in Rs.crs.)

Total market value Town class Metro Class 1 Others

Apr-Mar06 561 386 467

%wise 40 27 33

B) Long term growth drivers

• Improving penetration

Through better distribution and conversion from other modes of oral

care

• Increased usage

Improved per capita consumption through increased usage frequency

• Population growth

An annual 1.5% increase in population will help broaden the user

base for oral care.

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C) Segments in the Industry

i) Price-based segmentation of the toothpaste category

On the basis of price, the toothpaste market can be broken down into

two distinct categories:

ii) Low Price Point Segment

The Lower Price Point segment accounts for around 25% of

total category volumes. This segment offers good value for money and

has seen its volume market share increase from 10.7% during 2000 to

current levels. The entire category is characterized by intense

competition in both the price segments.

iii) Threats from smaller brands in the low priced segment

Small and regional brands from the low priced segment are

expected to perform well because they are often close to the market,

respond faster to changes and are willing to learn from mistakes.

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Industry analysts believe that the new threat will come from

smaller players who have embraced a different kind of business model

with a different value proposition. These include regional brands and

private labels.

Regional brands typically take on well-known, established

brands by pursuing a flanking strategy which can be of two types –

geographical or need-based.

In a geographical attack, the challengers identify regions where

the opponent is underperforming. The other flanking strategy is to

serve unfulfilled market needs. The smaller brands have also started

delivering on the quality front.

D) Key Players

The toothpaste segment is largely a two player industry,

Colgate Palmolive & HLL accounting for 80% of the entire market

(Table D-1): Company Share (Value)

Period Colgate Palmolive HLL Dabur

Apr-Mar06 47.3% 30% 7.2%

(Table D-2): Company Share (Volume)

Period Colgate Palmolive HLL Dabur

Apr-Mar06 48.8% 27% 9.1%

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I) Colgate – the dominance continues

Colgate has been present in the domestic oral care market for

the last 70 years and its oral care brands enjoy strong brand equity in

the market.

The company has traditionally been the leader in the domestic

oral care market. Currently, it occupies a dominant position in the

toothpaste segment with a 48% market share in the domestic market.

Its relative market share is 1.5 times the second largest player.

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.

Faced with tough competition from HLL during early 2000,

Colgate made a slew of successful new launches to protect its market

share namely Colgate Herbal, Colgate Gel & revitalized Colgate

Cibaca Top (in the low price segment).

The company has continuously relied on innovations to stay

ahead of the competition. It launched 3 new innovative variants during

the course of FY06.

1. Colgate Active Salt – This capitalizes on the traditional use of salt

for oral care.

2. Colgate Advanced Whitening –Which contains that microcrystal’s

polish ones teeth, Restores and maintains their whiteness.

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3. Colgate MaxFresh Gel – innovative gel-based toothpaste with

cooling crystals.

4.1.1: Current Brand portfolio: Toothpaste

1. Colgate Dental Cream

2. Colgate Total

3. Colgate Herbal

4. Colgate Kids Toothpaste

5. Colgate Advanced Whitening

6. Colgate Active Salt

7. Colgate Fresh Energy Gel

8. Colgate Max Fresh

9. Colgate Cibaca

The company has backed its products with a very strong

distribution network. The company’s distribution network covers 940

direct accounts and 3.8 million retail outlets. Colgate is the 2nd most

widely distributed product in the country. The company is tying up

with initiatives like E-chopal and Disha to further strengthen its

distribution network.

ii) Tremendous brand equity

Over the years, Colgate has been able to develop strong brand

equity. It has been voted the “The Most Trusted Brand” in the country

for 3 consecutive years in the AC Nielsen Brand Equity Survey.

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iii) HLL – the challenger

In the late 1980s, Hindustan Lever used the novelty element in

gel toothpaste to make steady inroads into Colgate's dominance in the

oral care market. Its gel toothpaste, Close-Up helped HLL become the

second largest paste brand; posing a stiff challenge to Colgate.

However as the novelty of gel toothpastes wore off, HLL

renewed focus on its other brand Pepsodent to help it protect its turf.

Its attempt at offering a low priced brand Aim was not

completed and the brand was subsequently pulled back after launching

it in early 2000 Both Close Up and Pepsodent have a combined

market share of 30%

The current brands offer distinct propositions; Close Up

addresses the youth with new benefits and value-driven propositions,

whereas Pepsodent is firmly entrenched on the family health platform

with variants catering to oral health

Current Brand portfolio: HLL

iv) Dabur – Growth through acquisition

Dabur has managed to grab a 7.2% market share with the

acquisition of Balsara’s oral care

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v) Brands:

Babool, Promise and Meswak in addition to its own brand

Dabur Red (Targeted to Capture Consumers Shifting from

Toothpowder to Toothpaste).

1.3 Scope of the Study:

Research is conducted to highlight the behavior of consumers in

respect to toothpaste Study has also been made about the buying

pattern of the consumers and how important. It also provided

information about the leading brand in the market along with their

market share.

Research is conducted to study Top Five Toothpaste

Brand in Mumbai.

1.4 Objective of Study:

To study the buying pattern of consumers towards toothpaste

To identify the various types of attributes of the tooth which

influences consumers?

To understand which kind of advertisements are effective for

attracting consumers.

To study different promotional activities which are most

accepted by the respondent

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1.5 Research Methodology:

A) Methods of data collection

For the present study, method of data collection adopted was

Primary sources as well as secondary sources. Primary sources

comprises of data collected from 128 respondents through

questionnaire method. Whereas, secondary data were collected

from books, journals, magazines, websites and sources around.

B) Sample Characteristics

Respondents: Consumer and retailers

Consumers were interviewed between the age group of 15 and above

Center: South Mumbai (Charni Road to Mumbai central)

Sample Size: 128 from Charni Road to Mumbai central

Age Group 15 and above

Type Consumer (124)

Retailers (4)

Duration of the Research Work: 23rd July 2007 to 26th September

2007.

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C) Limitations of the study

Sample sizes were restricted to 128 respondents in the city of

Mumbai. From Charni Road to Mumbai central our sample size of 128

thus cannot be said to be the correct representation of the target

market.

Toothpaste are not only sold in exclusive shops but also sold in

simple retail shops. Thus it is very difficult to estimate the sales and

buying pattern of consumers in general.

1.6 Research work

Indian tooth paste industry is one of the country largest consumermarkets. The Indian tooth paste market is pseudo-mature. It is amazingly complex being segmented not only on the basis of prices and benefits but even range of emotions within that outlining framework. With in over 10-15 brands in the market, this segment of the consumer product offers a tremendous to study the concept of brand positioning, especially when tooth paste is a fairly intimate product and consumer prefers a brand which reflects his self image or fits in with this fantasies. The focus of this study about tooth paste is consumer perception of the various brand are available.

Methodology

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After survey it was found that most of the people preferred that

tooth paste whose taste they liked. Color stood second in their

preference. Price was third. There was a tie between

Availability & Liking. Advertisement stood sixth. Scheme

ranked seventh and last but not the least was packing. All the

points given to factors that influence customers to buy tooth

paste are based on Rank System. It was a combined survey of

both males & females.

It was found out that the people preferred that tooth

paste the most which provided them with Long Lasting Freshness. The

tooth paste giving the quality of Healthy tooth & gums was ranked

second. Third in the race was tooth paste with Natural herbs. The

fourth ranking was given to tooth paste giving Whiteness to their

teeth. Fifth ranking goes to paste providing Good Foam and the least

preferred was the paste which boasted of prevention of tooth decay.

All the points given to attributes that influence customers to buy tooth

paste are based on Rank System. It was a combined survey of both

males & females.

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Chapter.2

Consumer Behaviors

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2.1 Meaning of Consumer Behavior:

Consumer behavior is the study of how people buy, what

they buy, when they buy and why they buy. It is a subcategory of

marketing that blends elements from psychology, sociology,

sociopsychology, anthropology and economics. It attempts to

understand the buyer decision making process, both individually

and in groups. It studies characteristics of individual consumers

such as demographics, psychographics, and behavioral variables

in an attempt to understand people's wants. It also tries to assess

influences on the consumer from groups such as family, friends,

reference groups, and society in general.

2.2 Introduction Indian consumer behavior

India is a big country with 28 states, over one billion people

and 120 dialects/languages. From the market perspective, people of

India comprise different segments of consumers, based on class,

status, and income. An important and recent development in India’s

consumerism is the emergence of the rural market for several basic

consumer goods.

Three-fourths of India’s population lives in rural areas, and

contribute one-third of the national income. This rural population is

spread all over India, in close to 0.6 million villages.11 %of

toothpaste sales come from Mumbai and Delhi.

2.3 Characteristics of the Indian Consumer Behavior

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The Indian consumers are noted for the high degree of value

orientation. Such orientation to value has labeled Indians as one of

the most discerning consumers in the world. Even, luxury brands

have to design a unique pricing strategy in order to get a foothold in

the Indian market.

Indian consumers have a high degree of family orientation.

This orientation in fact, extends to the extended family and friends

as well. Brands with identities that support family values tend to be

popular and accepted easily in the Indian market.

Indian consumers are also associated with values of

nurturing, care and affection. These values are far more dominant

that values of ambition and achievement. Product which

communicate feelings and emotions gel with the Indian consumers.

Apart from psychology and economics, the role of history

and tradition in shaping the Indian consumer behavior is quite

unique. Perhaps, only in India, one sees traditional products along

side modern products. For example, hair oils and tooth powder

existing with shampoos and toothpaste.

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2.4 Different segments of Indian consumers

The Socialites:

They are always looking for something different. They are the

darlings of exclusive establishments Socialites are also very brand

conscious and would go only for the best known in the market.

The Conservatives:

The Conservatives belong to the middle class. The conservative

segment is the reflection of the true Indian culture. They are

traditional in their outlook, cautious in their approach towards

purchases; spend more time with family than in partying and focus

more on savings than spending.

The Working Women:

The working woman segment is the one, which has seen a

tremendous growth in the late nineties. This segment has opened

the floodgates for the Indian retailers. The working woman today

has grown out of her long-standing image of being the homemaker.

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2.5 Increasing Awareness of Indian Consumers

Over the years, as a result of the increasing literacy in the

country, exposure to the west, satellite television, foreign

magazines and newspapers, there is a significant increase of

consumer awareness among the Indians. Today more and more

consumers are selective on the quality of the products/services.

This awareness has made the Indian consumers seek more and

more reliable sources for purchases such as organized retail chains

that have a corporate background and where the accountability is

more pronounced. The consumer also seeks to purchase from a

place where his/her feedback is more valued.

Indian consumers are now more aware and discerning, and are

knowledgeable about technology, products and the market and are

beginning to demand benefits beyond just availability of a range of

products that came from ‘trusted’ manufacturers. The Indian

consumers are price sensitive and prefer to buy value for money

products.

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2.6 Marketing Strategies

Online Marketing

Celebrity Influence

Quality Oriented Outlets

Freebies

Eco-Friendly Products

2.7 Changing Trends in Indian Consumer Behaviour

Bulk Purchasing

Trendy Lifestyles

Buyers’ Market In The Making

2.8 Consumer Behaviour towards different toothpaste:

There are three major brands of toothpaste in India, viz. Colgate,

Pepsodent and close up. All three of them compete with each other to

capture maximum market share. In order to achieve this, they not only

target children as consumers but also feature them in their

advertisements to attract other young consumers.

Colgate, for e.g., targets young children in the age group of 5 to 12

and offers free cartoon booklets along with toothpastes. Pepsodent

vies for the same consumer segment and depicts some children

relishing snacks, confectionery and sweets, while others are scolded

by their mothers for having done the same thing.

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This advertisement makes children believe that consumers

who use Pepsodent are immune to any tooth decay because of the

superior quality of the product. This claim is unauthenticated and

attempts to mislead children.

Close Up, on the other hand, does not perceive children as its

target audience. Instead, it targets teenagers and the youth. It creates

a brand image of confidence and popularity for young consumers

between the age group of 16-30. Its advertisements constantly

feature successful friendships and romances between Close-Up

users.

Millions of rupees are spent on advertising a product which

costs as little as Rs 30 and is considered ordinary by most

consumers. From pushing toothpaste on neem sticks to advertising

in the Kumbh mela, the market can go to any extent to boost its

sales. After a point, the sales tend to stagnate.

This negative development is offset by constantly repackaging

the present product and introducing new products. For instance,

Colgate has a number of brands in the market, like Colgate Total,

Colgate Dental Cream, Cibaca, Colgate Gel and Colgate Herbal.

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Chapter.3

Top Five Toothpaste Brands

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Top Five Toothpaste Brands

The objective of this chapter is to focus on the top five toothpaste

brands in Mumbai. The top five toothpaste brands are as follows

3.1 Colgate Dental Cream

Colgate Dental Cream is the most widely distributed oral care

brand in India has a market share of 34% in value terms. It was

revitalized in 2003 with an improved germ fighting formulation. Its

anti-bacterial ingredient has been boosted to offer superior germ

fighting efficacy.

These improvements come in addition to its calcium and

minerals formula that helps repair weak spots on teeth and locks in

additional calcium and essential minerals to make teeth stronger than

ever before.

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3.2 Close-Up Active Gel

Launched in 1975, Close-up was the first gel toothpaste in India. It has

since then undergone periodic relaunches. In 2004, Close-up was

relaunched with a bang. And this time it was packed with the power of

Vitamin Fluoride System – a powerful mix of Vitamins, Fluoride,

Mouthwash and Micro whiteners, the perfect combination of

ingredients for fresher breath and stronger, whiter teeth. Close-up is

now the first Gel toothpaste with Fluoride in Indian Market. Current

market share stands at 14%.

3.3 Pepsodent Complete 10

Pepsodent, the second offering from HLL with a market share

of 11% was launched in 1993 and was the first toothpaste with a

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unique antibacterial agent to address the consumer need of checking

germs even hours after brushing.

Pepsodent has always been regarded as a mother’s oral health

care ally and has been associated with inculcating good dental habits

amongst kids. Currently the brand is championing night brushing

habits amongst kids through its latest TV commercial. The thrust is on

making brushing at night a fun activity for kids. The brand plans to

continue with its initiatives to promote healthy brushing habits.

3.4 Colgate Cibaca Top

Colgate Cibaca Top is currently the fourth largest brand with 5.7%

Market Share. (Please see Page 9 - 5.9 for details).

3.5 Colgate Fresh Energy Gel

The Company launched new Colgate Gel Toothpaste in 1991.Colgate

Fresh energy contains icy cool gel which leads to mouth coolness and

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minerals which make teeth stronger. It has a market share of 3%. The

Colgate Fresh Energy Gel advertising campaign launched in 2001

used an innovative catch phrase – “Talk to Me” and used television,

outdoor and online media to connect with the youth. The company

continued to build on its highly successful campaign and re-launched

it with a new flavour in a transparent tube, a first for the category in

India.

3.6 Other brands

A) Anchor

Anchor belongs to Anchor Health and Beauty Care (AHBC), a

part of the Anchor Group (makers of Anchor Electrical

switches).Anchor forayed into the FMCG market with the launch of

Anchor White Toothpaste, which was positioned as India’s first

British Dental Health Society certified 100 per cent vegetarian

toothpaste, in 1997. In fact this proposition had so strong a consumer-

pull that by 2002 it was the number three toothpaste brand.

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In 2006, Anchor decided to directly compete with Colgate

Dental Cream, thereby differentiating itself from the LPP segment. It

significantly upgraded its product bundle, both in terms of superior

formulation (almost parity to CDC) claims and by the development of

an All-round Protection sub brand. This is currently endorsed by

Dravid with strong TV support.

B) Babool

Babool originally a Balsara product was acquired by Dabur last

year. Babool straddles the economy and herbal platforms. Its natural

toothpast contains ayurvedic and medicinal benefits of the Babul tree,

'Acacia Arabica’. While Babool still pursues an aggressive promo

strategy, it has also upgraded its bundle ever since the acquisition, by

putting the Dabur brand on its pack and signing up Vivek Oberoi as a

brand ambassador.

C) Ajanta

Ajanta toothpaste is an offering from the personal care division

of Ajanta Clock Manufacturing Company. With aggressive pricing as

its USP, the company decided to do a Nirma in the toothpaste

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Industry. Originally priced at one-third of a Colgate or a Pepsodent,

Ajanta rewrote the rules of the game for oral care products. It targeted

its offering in the low price, mass-market segment.

3.7 Brand wise Market Share

Table 3.7.1: Brand Share (Value)

Brand

Share%

Colgate

Dental

Cream

Pepsodent

(all

variants)

Cibaca

Top

Colgate

Fresh

Energy

Gel

Close-up

(all

variants)

Apr-

Mar06

33.8% 16% 5.7% 3.3% 11%

Table 3.7.2: Brand Share (Volume)

Brand

Share%

Colgate

Dental

Cream

Pepsodent

(all

variants)

Cibaca

Top

Close-up

(all

variants)

Anchor

Apr-

Mar06

32% 15% 10.3% 8.5 4.5

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A) Category Media Spends (in Rs. crs.)*

Period Spends

March04 575

March05 570

March06 866

Apr-

Mar06

Colgate

Dental

Cream

Pepsodent

10

Close-

up

Active

Gel

Colgate

Advance

Whitening

Pepsodent

Germi-

check

Total

spend

159 107 92 67 65

T.V. 157 107 92 67 65

Print 2 0 0 0 0

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B) Current Communication

BRAND TAGLINE PROPOSITION

Colgate “Bhartiya

dentists’ ki

number one

pasand.”

Colgate is the expert (the last

word) on dental care & provides

you with 12 hour protection

safeguarding you against 12

common tooth problems.

Pepsodent “Pepsodent, raat

bhar…dishum

dishum.”

With Pepsodent on guard parents

no longer have to worry because

brushing with pepsodent at night

ensures protection of their

children’s teeth the whole night

through.

Close-Up “Vitamin floride

system wala naya

Close-Up.”

Vitamin floride has three fold

benefits such as: 1)Whitens

yellow teeth,

2)Freshens your breath,

3) Makes your teeth strong.

Meswak “Meswak

toothpaste.

Formula sirf

Bharat ke paas

hai.”

Proud to use an Indian brand

Babool “Subah babool hi

to din tumhara.”

Babool’s nature & sweet

peppermint test enable you to

face life head on.

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Anchor “Naye zamaane ki

nayi suraksha.”

Advanced formula that protects

one tooth from germs & keep

them strong.

3.8 Survey Report & Data Analysis:

According to survey following data was collected:

Type of toothpaste

54% of people use Colgate

19% of people use Close-up

17% of people use Pepsodent

7% of people use Cibaca

3% of people use others

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Chapter.4

ANALYSIS OF TOOTHPASTE

BRANDS

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4.1 Colgate Palmolive (INDIA) Ltd. {CPIL}

A) Introduction of company:

Colgate-Palmolive Company is a U.S. diversified

multinational corporation focused on the production, distribution

and provision of household, health care and personal products, such as

soaps, detergents, and oral hygiene products (including toothpaste

and toothbrushes). Under its "Hill's" brand, it is also a manufacturer

of veterinary products.

• Name: Colgate-Palmolive Company

• Location: New York

• Industry: Consumer products

• Products/Services: Oral care, personal care, home care, and pet

nutrition

• Revenue: US$11.3 billion

• Employees: 35,800

• Web Site: www.colgate.com

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Following Table / Chart show Net sale of colgate

No. of year

Colgate Entered as a premium brand, Replaced imported raw

material with material from local suppliers Colgate 12 variations of

products, including Colgate Herbal Salt, Colgate Grow market share

from 7% to 15% over just two years Increase margin by 13.6% over

five years

Colgate-Palmolive (India) Limited is India's leading provider of

consumer products sold under nationally recognised brand names as

Colgate (scientifically proven oral care products that have become an

YEAR Rs.(crores) Increase in

Percentage

2003-04 939 -

2004-05 964 +2.7%

2005-06 1,124 +16.6%

2006-07 1,295 +15.2%

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essential part of daily oral hygiene and therapeutic oral care),

Palmolive (personal hygiene and skin care products) and Axion

(household care). Colgate has been ranked India's # 1 brand across all

categories for eight out of nine years (1992 - 2001) by the A&M-

MODE annual survey of India's Top Brands.

Market share position of Colgate Palmolive (INDIA) Ltd in 2001 is

summarized below

PRODUCTS Percentage

%

Toothpaste 50.85%

Toothpowder 48%

Toothbrush 31%

While market share of Colgate Dental Cream dropped from

41% to 38.5% in 2001, other has gained, like Herbal from 0% to

2.4%, Cibaca Top from 0% to 4 – 5%. Thus overall, company market

share in toothpaste has not dropped. Company will continue to focus

on profitable growth, because after all it is bottom-line that matters.

Company has been selectively raising prices of products

depending on market conditions. At the same time, volumes have also

been growing in middle and premium segments. Strategy is that

company has many homes where dual Colgate products are used. E.g.,

variants of toothpaste used by younger people and children and

toothpowder by older people.

There will not be let go on Advertisement and Sales promotion

spend, as this is an essential investment in strengthening the brand. 5-

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6 years ago, CPIL was spending just 7-8% of turnover on

Advertisement and Sales promotion. That was not sufficient.

Company need to spend more on Advertisement and Sales promotion,

as competitors are likely to remain aggressive. In addition to existing

players like HLL, Dabur and now Electric switch makers "Anchor"

becoming very aggressive. Anchors have gained more than 1% of

market share from 1.8% to 3%.

In future, company expects expenditure on Advertisement and

Sales promotion as a proportion to sales will almost remain the same.

There could be periodic variations. However, there won’t be

disproportionate increase in Advertisement and Sales spends. Besides,

improving productivity of Advertisement and Sales promotion will

ensure that same amount of spending will give higher revenue growth

in future.

Company is projecting to grow high in urban markets rather

than in rural ones. Penetration level has been increasing for the

category as a whole. For CPIL, penetration level for toothpaste is 80 -

85% in urban markets, whereas in rural markets it is 35 – 40% for

toothpowder. National penetration for toothpaste is 40 - 45%.

Including toothpowder, it will be higher than that.

In addition to pure advertisement expenditure on different

media, there are several promotional schemes like price off, extra

quantity at same price, incentives to dealers for bulk quantity picking,

giving some add-on free with product, etc. For the category as a

whole, nearly 19 – 25% of sales would be coming from such

promotional schemes, whereas in case of CPIL, it is 15 - 20%.

Balance sales takes place across the retail counters at MRP.

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In near-term, company expects to continue to grow at 8-10%

per annum. If rural economy picks up, company can grow faster,

without matching increase in Advertisement and Sales promotion

spend

During Oral Health Month 2007, Colgate-Palmolive (India) has

used a 360 degree approach to raise awareness through a combination

of television, print, radio, hoarding, online ads and a series of below-

the-line activities.

Colgate-Palmolive (India) Limited is India’s leading provider of

scientifically proven oral care products with multiple benefits at

various price points. The range includes toothpastes, toothpowder and

toothbrushes under the 'Colgate' brand

Colgate Oral Pharmaceuticals have become an essential part of

daily oral hygiene and therapeutic oral care in India. The Company

also provides a range of personal care products under the 'Palmolive'

brand name. Colgate has been ranked as India’s Most Trusted Brand

across all categories for four consecutive years in 2003 to 2007

B) History of Colgate- Palmolive (India)

Ltd.:

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1937 - The Company was incorporated on 23rd September, as a

private limited company. The Company Manufacture and market

dental care products (dental cream and tooth powder), hair care

products (hair oils, shampoos, brilliantine) and other personal care

products such as shaving creams, and lotions, face creams, baby

powder, talcum powder, etc. The products are marketed under the

trade marks "Colgate". "Palmolive", "Halo" and "Charmis". - A

distribution set up was also developed on an all-India basis with

warehouse facilities in Mumbai, Chennai and Calcutta.

Colgate-Palmolive Company, U.S.A. supplemented this

reinvestment by providing, technical assistance, new product

information and its worldwide developments in quality dental care and

other personal care products. The Company has its own research and

development facilities.

1978 - The object of the offer for sale of shares made to the

Indian public during November was to reduce the non-resident

holding to 40%. This offer for sale was made by Colgate-Palmolive

Company, U.S.A., to the resident-Indians public to comply with

FERA, 1973. As a result, 11, 79,000 No. of equity shares of Rs 10

each were offered at a premium of Rs 15 per share. Shares sudivided

on 29.9.1978. 19, 50,000 bonus shares were then issued in prop.

130:1.

1982 - 19, 65,000 Bonus equity shares issued in prop. 1:1.

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1985 - 39, 30,000 bonus shares issued in prop. 1:1.

1987 - 78, 60,000 bonus shares issued in prop. 1:1.

1988 - The Company received a licence for producing 24,000

tonnes per annum of fatty acids. It also registered with DGTD for

production of 30,000 tonnes of toilet soap per annum.

Orders were placed for setting up a fatty acid plant with an

annual capacity of 20,000 tonnes and a toilet soap plant with an

annual finishing capacity of 15,000 tonnes.

1989 - 1, 57, 20,000 bonus shares issued in prop. 1:1.

1991 - The Company launched new Colgate Gel Toothpaste,

Palmolive Extra Care and new Palmolive soap and relaunched a high

quality colgate Plus and other toothbrushes.

- 1, 88, 64,000 bonus shares issued in prop. 3:5.

1993 - The Company participated in the global launch of Colgate

Total Toothpaste and Asia/Pacificregional launch of Protex Soap.

The Company proposed to negotiate with appropriate global

partners for the necessary technology needed to implement vertically

integrated projects and diversification into high technology areas to

effect import substitutions for a range of materials.

During September, 112,92,735 No. of equity shares of Rs 10

each were allotted at a premium of Rs 50 per share to Colgate

Palmolive Company, U.S.A. with a view to raise its shareholding to

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51% of the subscribed capital. 615, 96,735 bonus shares issued in

prop. 1:1.

1994 - The Company acquired the oral hygiene business of

Hindustan Ciba-Geigy Ltd. The Company offered 123, 19,347 No. of

equity shares of Rs 10 each at a premium of Rs 10 per share on Rights

basis in the proportion 1:10 (all were taken up). 2,40,000 shares of Rs

10 each were issued to the employees at a premium of Rs 10 per share

on an equitable basis (Details of allotment non-known).

Also, 2,49,795 No. of equity shares of Rs 10 each at a premium

of Rs 1 per share were issued to Colgate Palmolive Co., U.S.A., on

preferential allotment basis to maintain their shareholding at 51%.

1996 - The Company launched Colgate fresh stripe tooth paste

and palmolive naturals soap in personal care products segments,

Keratin Treatment Shampoo and Palmolive optima in Hair care

segment during the year. Axion dishwashing paste was test launched

in Maharashtra.The Company established a modern facility at

Aurangabad to manufacture Dicalcium phosphate, a key ingredient for

toothpaste.

Passion Trading & Investment Co., Ltd., Jigs Investments Ltd.,

Multimint Leasing & Finance Ltd. and Camelot Investments

Company Ltd. are subsidiaries of the Company.

The Company established a wholly-owned subsidiary at

Hetanda in Nepal in June 1988. The facility will manufacture tooth

paste and tooth powder initially.

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1998 - The Company received a licence for producing 24,000 tonnes

per annum of fatty acids. The company paid a dividend of Rs.4.50 per

share in 3 instalments first interim Rs.1.60 second interim Rs.1.60 and

final of Rs.1.30 per share. - Colgate is the market leader in oral care

with its toothpaste commanding a market share of over 60 per cent,

followed by Hindustan Lever with around 35 per cent.

The Monopolies and Restrictive Trade Practices Commission

(MRTPC) has, in an interim order, directed Colgate to withdraw its

long-standing "Suraksha Chakra" advertisement within two weeks.

HLL has taken Colgate to the MRTPC over claims made by its

recently launched toothpaste - Colgate Dental Cream Double

Protection (CDC-DP) - a variant of the popular Colgate Dental Cream

(CDC).

Colgate-Palmolive is one of the few multinational stocks which

have failed to outperform the market in the recent past. In its recent

launch the company has launched Colgate Double Protection tooth

paste for the The Company received a licence for producing 24,000

tonnes per annum of fatty acids.

The company paid a dividend of Rs.4.50 per share in 3

instalments first interim Rs.1.60 second interim Rs.1.60 and final of

Rs.1.30 per share. - Colgate is the market leader in oral care with its

toothpaste commanding a market share of over 60 per cent, followed

by Hindustan Lever with around 35 per cent.

The Monopolies and Restrictive Trade Practices Commission

(MRTPC) has, in an interim order, directed Colgate to withdraw its

long-standing "Suraksha Chakra" advertisement within two weeks.

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HLL has taken Colgate to the MRTPC over claims made by its

recently launched toothpaste - Colgate Dental Cream Double

Protection (CDC-DP) - a variant of the popular Colgate Dental Cream

(CDC).

Colgate-Palmolive is one of the few multinational stocks which

have failed to outperform the market in the recent past.

In its recent launch the company has launched Colgate Double

Protection tooth paste for the entire family.

Colgate-Palmolive has finally signed up with the depository

even as Sebi has sent out a note of warning to the remaining six

companies.

Colgate-Palmolive (India) Ltd, a market leader in the toothpaste

segment, suffered heavy setback during the first half of the current

year due to stiff competition.

The company has established the Dicalcium Phosphate (DP)

manufacturing facility at Aurangabad.

Colgate-Palmolive had launched the ad campaign for its new

product Colgate Double Protection toothpaste in competition with

rival brand Pepsodent from the Hindustan Lever

1999 - The corporate has launched the `Colgate Double

Protection', `Colgate Total' and `Colgate Sensation'. The company

started a new research and development centre, a manufacturing

facility in Nepal, and completed a dicalcium phosphate facility in

Aurangabad.

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A three-judge bench of the Supreme Court allowed the appeal

of Colgate Palmolive (India) Ltd with regard to the use of `Suraksha

Chakra' in the advertisements of the company's toothpaste.

The re-launch of Pepsodent in July, and launch of Rs 3.50 a

sachet of Pepsodent with a convenient nozzle has helped Colgate-

Palmolive to increase its market share.

2000 - The Company has introduced two new variants to its

Palmolive Naturals sopa range and has revitalised its sandalwood

soap. The Company has launch of two new variants in its Palmolive

Naturals range of beauty soap lime and milk cream The Company has

relaunched Colgate Gel as `Colgate Fresh Energy Gel.'

Colgate-Palmolive (Nepal) Pvt. Ltd., a wholly owned

subsidiary of Colgate-Palmolive (India) Ltd, has informed the stock

exchange that a small group forcibly entered the plant of Colgate-

Palmolive (Nepal) at Hetauda industrial estate and denoted two

explosive devices The Company has launch of its International

Palmolive Shave Gel and Palmolive Shave Foam in response to

growing consumer interest in skin conditioning benefits

2001 - Colgate-Palmolive (India) Ltd. has launched its biggest

national-level consumer promotion involving its toothpaste,

toothbrush and soaps. Colgate-Palmolive (India) Ltd. has launched

international cleaning product Ajax in the Indian household products

category for summer.

2002 - Graeme Dalziel, appointed as MD Of Colgate Palmolive

India for a period of 5 years Colgate has hiked its market share from

45.9% to 50.2% in the toothpowder segment with the new strategies

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of consumer centric promotional initiatives, impactful visibility and an

add campaign featuring sunil shetty.

Percept Demark has signed a deal with Colgate Palmolive, to

offer miniature of cricket stars in the dental pack.Colgate Palmolive

has succeeded in the appeal challenging the MRTP Commission

order.Colgate-Palmolive launched its first miniature collectibles of

India's Top Cricketer's 'collect your cricketer' promotion.

2003 - Colgate-Palmolive has divested its stake in its subsidiary

Camelot Investment Company. Colgate has decided to concentrate on

its non-oral care division, by launching an international range of

Palmolive Aeromatherapy persoanl care products.

Introduced 'Colgate Simply White', at-home teeth whitening gel

which is priced at Rs.600 for 10ml. -Colgate has relaunched colgate

dental cream with what the company calls a fresher taste and

improved germ-fighting performance.The Company commences

shipment of the "New Superior" Colgate Dental Cream

The Herbal range was expanded with the launch of a "Herbal

White" toothpaste for whitening combined with the benefits of Herbal

ingredients"Navigator Plus" was launched with its unique

characteristics as a premium toothbrush

An all new range of Aromatherapy products - Shower Gel,

Liquid Hand Wash and Bar Soap in 2 variants each were launched

under the "Palmolive" brand as a major thrust in the Personal Products

portfolio

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Colgate Palmolive Nepal Ltd a wholly owned subsidiary of the

Company has temporarily suspended its operations in view of

deterioration in general security situation in Hetauda

2004 - Vikram Kaushik resigns from the Board of Colgate

Palmolive India Colgate-Palmolive launches shower gel variant

Unveils Palmolive Aroma Sensual Shower Gel, enriched with a blend

of Orchid extract and pure essential oils of jasmine and rose, the gel is

priced at Rs 90 for a 250 ml pack. Ties up with IDA to creat promote

oral health campaign

2005 - Colgate-Palmolive unveils Colgate Active Salt toothpaste

C) Brand Update of Colgate

Colgate has started aggressively promoting its niche variant

Colgate Sensitive toothpaste. This is a unique variant aimed at the

segment of customers having tooth/gum problem.According to a

report more than 80% of Indians have dental problems like gingivitis.

Sensitive is a variant that specifically address this segment. The

brand is said to give relief from pain after continuous use.

Colgate sensitive also has anti plaque and anti-tartar properties.

The promotion of Colgate Sensitive is to popularize the therapeutic

segment which is not much popular in India. Colgate uses its famous

and controversial tagline “No. 1 Brand Recommended by Dentists".

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Colgate has every qualification to be in the number one because

of its ability to understand Indian consumer and innovate in terms of

the product and marketing mix.

Colgate People worldwide share a commitment to the three core

corporate values: Caring, Global Teamwork and Continuous

Improvement. These values are reflected not only in the quality of

products and the reputation of Company, but also in dedication to

serving the communities where company does business.

Colgate-Palmolive (India) Ltd., undertakes its corporate social

responsibility through a variety of effective programs. Since 1976, the

company has been delivering free oral health education to children of

rural and urban poor in partnership with Indian Dental Association

(IDA). Colgate's community outreach efforts have touched the lives of

millions of children, providing the information, insight and inspiration

they need for a healthy life and a healthy smile.

D) Corporate Social Responsibilities in Business:

Colgate's success is founded on the Company's core values of

Caring, Continuous Improvement and Global Teamwork. Evident in

all aspects of our business, these values are the driving force behind

everything we do. It is reflected in our commitment to providing safe,

high quality products that enhance the lives of consumers around the

world.

These values fuel our successful long-term efforts to create a

workplace where all Colgate people act with integrity and with respect

for one another. Colgate's goal is to help make our world a safer,

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better, healthier place to live in. Making a difference in the world does

make a world of business sense.

E) Colgate endeavors:

Colgate-Palmolive India sponsors the Inter Mumbai Physically

challenged Cricket tournament along with Premnagar Sports Club.

With teams participating from all over Mumbai it gives the

participants a chance to showcase their talent, and compete in the

spirit of the game.

The Company encourages the physically challenged to explore

their talent in various sporting disciplines by sponsoring such events

and helping them to give their best. It is company constant Endeavour

to support such organizations that work for such worthy causes.

F) Disaster Relief:

{Colgate Rises to the Occasion}

Whenever there has been a National disaster, Colgate-

Palmolive India has always risen to the occasion.The 26th January

2001 earthquake saw the Company immediately distribute medicines

and blankets to those affected. This was followed by sending our

products to the victims.

Colgate distributed a complete household utensil kit with a

cooking stove to help rehabilitate needy families.To add to these

efforts, the Company also supported the efforts of FICCI - the

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economic body that was doing things on a much larger scale with

other corporate supporting it.

G) Education:

{Partnership with Pratham}

Partnership with Pratham

Colgate supports Pratham, an NGO working in the field of

education of underprivileged children. Colgate has worked with

Pratham to set up libraries in economically backward areas to

encourage and inculcate the habit of reading among the children living

here. We have also supported training and development modules for

Pratham's volunteer base of over 10,000 people.

H) Health

(Colgate Cares)

Company three core values of Caring, Global Teamwork and

Continuous Improvement are put into action in company’s work as

well as in company’s communities.The results are better products and

a better quality of life throughout the Colgate world.

The Colgate Bright Smiles, Bright Futures Oral Health

Educational Program worldwide was developed to teach children

positive oral health habits of basic hygiene, diet and physical

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activity.This Program also encourages dental professionals, public

health officials, civic leaders and most importantly, parents and

educators to come together to emphasise the importance of oral health

as part of a child's overall physical and emotional development.

Under this Program conducted by Colgate-Palmolive, India

children in primary schools receive instructions in dental care from

members of the dental profession nominated by the Indian Dental

Association. Education is imparted with the aid of audio-visuals and

printed literature created by the company. Free dental health care

packs, including samples, are also distributed by the company to

encourage the practice of oral hygiene. {Teachers Training

Program}, is an integral part of the School Dental Health Program,

conducted regularly across the country to promote preventive dental

health care.

Training in the basics of oral health care is imparted to school

teachers. This helps them play a significant role in preventive oral care

by inculcating good oral care habits in the students. The Teachers

Training Program forms a vital part of the Colgate Bright Smiles,

Bright Futures Program.

I) Colgate-IDA Activities:

Colgate actively and closely supports the efforts of Professional

Dental Associations to continuously update the knowledge and skills

of dental professionals through various fora. 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

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Programs are regularly organized all over the country, exposing the

practicing dental professional to the latest advances in dentistry.

J) Colgate Lends a Helping Hand:

"Our Children" - a trust for street children - has been a

recipient, as has "Citizen", an Indian NGO working for the cause of

thalassaemia with children and Tata Memorial Hospital for the

Pediatric Cancer Patients.

Payroll Giving (Association with United Way of Mumbai)

Colgate has partnered with United Way of Mumbai, a charitable

trust established by leading corporates in Mumbai, to introduce a

"Payroll Giving" program. Under this program, Colgate employees

have contributed to a variety of causes including education, early

childhood development, and support for underprivileged women and

civic issues.

Making a difference with Greeting Cards

Every year, Colgate supports a different cause when it sends out its

greeting cards. Some of the causes company has supported are: “services

for children and families in need (through Prasad Chikitsa Charitable

Trust)” aid for the deaf-blind (through Sense International India) “support

for mentally and physically challenged children of Armed Forces

personnel (through Asha schools).

This Oral Health Month 2007, Colgate is committed to support

the treatment of oral cancer patients in association with Cancer

Patients Aid Association.

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By collecting pledges from every individual that we contacted

through the various Oral Health Month initiatives, we involved them in

our noble cause to spread awareness of the support Oral Cancer requires.

The mission of OHM is ‘Zero Tooth Decay’ and while fulfilling this, all

participants of the OHM activities helped to 'Spread a Smile' to the Oral

Cancer patients

K) Culture and Values

Colgate people are one of the company's greatest resources. They

contribute towards building strong global growth, building market

leadership, and increasing profitability. As one of the most widely

recognized consumer products companies in the world, Colgate

attracts many talented people. Bringing the best people to Colgate is

step #1 to 'Becoming the Best Truly Global Consumer Products

Company

'An Equal Opportunity Employer:

It is the policy and practice of Colgate-Palmolive to provide

employment opportunities to all qualified persons on an equal basis.

The company does not discriminate against any employee or applicant

for employment because of race, religion, sex, community, age,

marital status, or any other characteristic protected by law in any of

the terms or conditions of employee

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4.2 CLOSE UP

A) Introduction:

Product Name: Close-Up Toothpaste (Fluoride Gel and Fluoride

Mint Gel)

Other Names: None

Product Type/Use: Toothpaste

Description: Clear, green or red gel.

Unlike the typical opaque, mint-flavored toothpaste of the time,

Close-Up® debuted in 1967 as a clear red gel with a spicy cinnamon

taste and mouthwash right in the toothpaste. A Unique brand identity

was developed, with Close-Up® positioned as the toothpaste that

gives people confidence in those very "up close and personal"

situations. First toothpaste in US to combine mouthwash and

toothpaste in one formula First gel toothpaste First toothpaste to

feature a NASCAR driver on the box Jeff Gordon) Close-up is the

original youth brand of India

The first brand targeting youth in the oral care market, with an

edgy and youthful image which stays relevant till date. Ever since its

launch in 1975, Close-up has broken every rule in the book on how

toothpastes should behave! Close-up was the first gel toothpaste to be

launched in India and has led the gel toothpaste segment ever since In

2004, Close-up was re-launched with a bang. And this time it was

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packed with the power of Vitamin Fluoride System – a powerful mix

of Vitamins, Fluoride, Mouthwash and Micro whiteners, the perfect

combination of ingredients for fresher breath and stronger, whiter

teeth. Close-up became the first Gel toothpaste with Fluoride in the

Indian Market! The brand umbrella also includes Closeup Lemon

Mint, gel toothpaste with the whitening benefits of lemon.

B) CLOSE-UP TOOTHPASTE RELAUNCHED:

MUMBAI, May 21, 2004: Hindustan Lever Limited (HLL) has

realunched Close-up with a three-in-one benefit. New Close-up Active

Gel now has the Vitamin Fluoride System, the only such toothpaste in

India, which offers triple benefits of fresher breath and stronger and

whiter teeth.

The packaging of new Close-up Active Gel with Vitamin

Fluoride System has been completely changed. It comes with a stand-

up cap and a metallic tube. The stand-up cap makes storage of the tube

easier Speaking on the prelaunch of Close-up, Mr. Sanjiv Kakkar,

HLL’s Vice President – Oral Care, said, “Close-up was the country’s

first gel toothpaste. Close-up was also the country’s first toothpaste to

offer the benefit of fresh breath. In keeping with this tradition of

offering discontinuous benefits, we have once again relaunched Close-

up to offer the best and the most modern mix offering triple benefits

through a single toothpaste.”

New Close-up will be available at the same price-points -- 150-

gm tube at Rs.42.00, 80-gm at Rs.25 and 40 gm at Rs.12.50.

Launched in 1975, Close-up was the first gel toothpaste in India. It has

since then undergone periodic relaunches. The Close-up franchise

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comprises Close-up Active Gel (red) with Vitamin Fluoride System,

the mother variant, and Close-up Lemon Mint, a transparent gel in a

transparent tube and a window carton. Close-up Lemon Mint had been

launched in 2002

C) Advertising Strategy:

The Close Up ad jingle - 'Kya aap Close Up karte hai?' for a

while now. The latest on that front is the slightly different version of

the same - 'Kya aap "naya" Close Up Karte Hai?' And that's not where

it ends. Apart from a new television commercial (TVC) to relaunch

the Close Up red gel toothpaste, Hindustan Lever Limited (HLL) is

also looking at a holistic multi media campaign for which innovation

will be the buzz word.

For starters, if one logged on to the Yahoo! India, Sify or Indiatimes

portals yesterday (4 June), one found a stunning in-your-face red page

branded by the new Close Up. The home pages of these three websites

were totally branded by the splashy new Close

If that was not enough, Close Up has also tied up with AXN's

Alias. The connection: Just like the protagonist in Alias - Jennifer

Garner - changes her identity time and again to tackle different

situations, the tie up with it signifies that Close Up too has changed

now and is in a brand new avtaar! AXN assistant VP marketing and

sales Rohit Bhandari said, "The basic essence of branding Close Up

with Alias was to bring out the element of change that Close Up has

gone through and also to match the change of identities that Garner

goes through in Alias.”

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Mindshare Fulcrum (the media planning and buying agency for

HLL) business group head Atit Mehta said, "There was no thematic

communication for the Close Up brand in 2003. Then in January this

year, close up came out with the new ad for Close Up. Now close up

have relaunched the brand and the entire packaging has changed. The

communication close up wanted to send out is that if Close Up can

change... anything in the world can change." The agency brainstormed

on how to communicate the change Close Up had undergone.

Channels and programmes were identified and a whole lot of activities

are in the pipeline similar to one with AXN. Mehta refused to provide

any clue to what was in store though. Talking about the tie ups with

the portals he said, "close up have made the entire Yahoo! India,

Indiatimes and Sify sites red in colour thereby communicating that

Close Up can change your world. Close up also have brand placement

in a Tamil movie Madura which will release in the first week of July."

On Yahoo! India, the Close Up campaign appeared for a day on

4 June and will be back again next week on 7th, 9th and 11th June.

Red's the

colour-

Jennifer

Garner in

AXN's Alias

The revamped

Close Up toothpaste

pack

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Apart from branding of the entire site for a day, there will be banners

on all three websites mentioned earlier.

On 26 July 2004 Close-Up, one of India's leading toothpaste

brands, has tied-up with Boney Kapoor's forthcoming movie Kyon!

Ho Gaya Na, a romantic comedy set for release in August.

As part of this promotion, Close-Up will not only get branding

opportunities in all the movie promotions and communications, but

also showcase its latest ad before the movie commences

D) Close-Up Whitening: HLL plays shade card:  

Hindustan Lever Ltd (HLL), which has just relaunched Close-

Up Renew as Close-Up Whitening, says the teeth whitening segment

is an “investment for the future” Close-Up first entered the whitening

segment with Renew in 1997, with the strategic intent to strengthen

the whitening leg of the architecture. The then advertising revolved

The Yahoo!

India homepage

branded by

Close Up on 4

June

The new

revamped

Close Up

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around ‘goodbye yellow, hello white’. While it was an initial success

in certain key markets, overall the brand could not register the

requisite sales volumes. The company blames it on market slowdown

and too crop of low-priced toothpastes.

As per estimates, the whitening segment is seen to be rising in

developed markets like the US and Europe, where it is valued at Rs

1,500 crore. This is larger in size as compared to the total toothpaste

market in India.

HLL believes the same would ring true for India too, albeit in

the future. In order to firmly establish the brand’s credibility with the

new relaunch, HLL has leveraged the power of a ‘shade card’ as a

diagnostic tool. The relaunch idea is to introduce a mix capable of

building a category.

Says HLL category head - oral care (personal products) Mr

Pradeep Banerjee: “The idea behind the shade card is to empower the

consumer as a see-it-yourself kind of strategy. With the shade card,

consumers can and see and believe in promise, thus adding to the

credibility.” The strategy behind empowering consumers is also aimed

at reducing trial barriers. By providing a shade card, the company

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hopes to generate more users into this niche segment.Even though the

whitening segment is predominantly an urban phenomenon, research

conducted by the company across the rural and urban spectrum

revealed that white teeth rank high on the priority list as compared to

other dental qualities. HLL has thus endeavoured to build this

category which, it feels, has a promising future considering that the

research findings peg “whiteness” as the prime concern among the

consumers, especially youth. At a price of Rs 19 for 50 gm and Rs 49

for 150 gm, Close-Up Whitening comes at a five percent premium to

the core categories of toothpastes.

The first phase of the advertising focuses on the relaunch of Renew

into Whitening. The outdoor campaign hinges on the baseline ‘no

white lies, just white teeth’ and ‘dazzling white teeth in just 4 weeks’.

The second phase will have a thematic base which generates

awareness among consumers regarding the true shade of their

teeth.Meanwhile, to support the franchise, the company has also rolled

out a Close-Up Whitening toothbrush priced at Rs 35 in a limited

geography.The marketshare of Close-Up toothpaste is about 16.5 per

cent. HLL’s overall toothpaste (Close-Up and Pepsodent) share stands

at 36.1 per cent

E) O&M to handle Close-Up account:

HINDUSTAN Lever Ltd has chosen O&M as the agency

responsible for the advertising of Close-Up toothpaste.

O&M will be responsible for the brand only in India while JWT

will continue to be the agency in other countries. Close-up was

introduced to the Indian market in the late 1980s.

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According to HLL"As the brand looks ahead at future growth

opportunities and evolving aspirations of its target consumers, it is

examining all resources, including brand communication which are

integral to its future plans,"

In this context, HLL had asked a select group of advertising

agencies to share their views on the brand's future communication.

Recently, HLL shifted the Rs 50-crore Close-Up account from

JWT to Ogilvy & Mather India (O&M). Its new agency is on the

verge of rolling out a new campaign for the mother brand - Tingly

Red. Continuing to position Close-Up as a youth brand, Mr.

Pushpinder Singh, Senior Creative Director, O&M, said, "Close Up

will remain a youth brand. But at the end of the day since purchase

decisions are always made by the housewife, it will not be possible to

isolate her. Some amount of dichotomy will continue to straddle the

brand JWT

The idea is simple. Consumers will have to fill in some personal

details on the inside of any Close-Up pack. The empty pack could be

dropped in at collection boxes placed at convenient locations in

selected cities (or mailed in). A draw of lots will determine the lucky

winners who will be flown to Mumbai to participate in the Sky Pa

Introduced in Brazil, Lemon Mint as a flavour was adapted to

Indian taste and was launched late last year. HLL, for the first time,

also decided to innovate in the packaging for the brand and introduced

a transparent window to display its lemon mint variant.

As per ORG-Marg, Close-Up has a 17.5 per cent value share in

the Rs 1,400-crore toothpaste market. Launched in the late 1980's,

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Close-Up was HLL's first gel toothpaste offering. Of late, the brand

has been in the limelight due to widespread speculation about

Unilever removing the brand from its portfolio

The biggest markets for Close-Up are in countries like the

country, Indonesia and Nigeria. HLL controls close to 33 per cent of

the oral care market in the country with Close-Up brand estimated to

do revenues of Rs 240 crore.

Close-Up’s initiative runs under the banner ‘Sky Party with

Hrithik Roshan’ this is part of a nationwide contest that commenced

on February 14, 2001, with a final scheduled on April 26, 2001.

The contest culminates in Mumbai with a star-studded dinner

and an airplane ride for 30 lucky winners with the famed film star on

board. No wonder colleges are abuzz with toothpaste talk.

4.3 Pepsodent:

A) Introduction:

Pepsodent was launched in 1993 by Hll to capture the

market from Colgate. Launched in the platform of Germ

fighting property, Pepsodent now have a marketshare of 17% in

the Rs2200 crore oral care markets

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Pepsodent have experimented with its positioning althrough its

life. Initially Pepsodent was launched in the highly successful "long

lasting protection for hours after brushing" platform. In 1999-2000

Pepsodent tried to fight the market leader Colgate by shifting to

Benefits of germ fighting rather than Process of germ fighting. But the

positioning failed and Pepsodent had to come back to the old

positioning by 2001.

B) Advertising Strategy:

Pepsodent included the germ indicator to its pack in 2002

followed by an innovative Dental Insurance campaign which

reinforced the germ fighting position

HLL was trying hard to break the fort of Colgate which was

holding a massive 45- 50% market share in the oral care

market.Although Pepsodent and Close Up had together around 32% of

the market , it was not enough. Then came the regional brands like

Ajanta and Babool which really made a dent in the market share of the

leaders.

Hll struck back with the famous Dishum dishum campaign (that

won many accolades for the agency). The insight for this campaign

was that Mothers were really worried about the eating habits of their

kids. From that insight came the Big Idea “let Pepsodent fight germs

for you". The campaign and the smart pricing virtually killed the

regional brands in the oral care market.

Pepsodent knew that they should expand the total market of

tooth paste and decided to increase the market by increasing the usage

of the product. Thus came the Bhoot campaign that is currently on air.

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Pepsodent aims to teach the kids to brush at night (with

Pepsodent ofcourse) .Research shows that brushing teeth at night can

reduce chances of tooth decay by 30%.

If HLL to be believed, 12 lakhs kids are brushing teeth at night now

and mothers are happy

Pepsodent is a brand that has been carefully crafted although it

struggled to find its soul, now the brand is all set to take off.

New Pepsodent, a relaunch of the old Pepsodent G and

Pepsodent 2-in-1 promised consumers throughout the length and

breadth of the country to do something which the other toothpaste

brands could not do, namely clean more than any other toothpaste.

It was the advertisements that Hindustan Lever Limited

launched that got the goat of its rival, Colgate-Palmolive: the

advertisement promised consumers that it would get protection form

tooth decay at 102 per cent more than any other leading brand in the

country.

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C) Improving oral care health for over 30 years in Indonesia:

Pepsodent is the oldest and most well-known toothpaste

in Indonesia, since the beginning of its existence has always provided

more than just basic efficacy. Pepsodent was the first toothpaste

in Indonesia that launches fluoridated paste back in 1980s and the

only paste in Indonesia that actively educates and promotes proper

habit of brushing through school program and free dental check up

service. Pepsodent has completed its range product from basic

cleaning to complete benefit paste ever since.

D) Pepsodent School Program & Free Dental Check Up:

Pepsodent is the only toothpaste brand in Indonesia that really

put its mission into action. Cooperation with Indonesian Government

of Health and Education Departments and recognized by local dentist

association (PDGI), since 1990s Pepsodent has done School Program

which is until 2006 it has reached more than 3.2 million children

under 12 years old in all over Indonesia and the number still growing.

This program promotes proper and early habits of brushing teeth to

prevent any dental problems, especially cavities

Pepsodent understand that many parts of Indonesians have

dental problems and also faced with lower ratio of dentist and

population itself. That is why Pepsodent Free Dental

Check Up program is specifically designed to reach these

people by giving free dental treatment & education in fun and

approachable way so that with the program, the whole family can have

better oral health and good oral habit. It is also an effort to encourage

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Indonesian people to go to dentist regularly as a part of cavity

prevention habit.

E) Pepsodent Night Brushing Campaign:

Habit & Attitude survey has indicated that only about 34 % of

Indonesian people brush their teeth before going to bed. Even from

clinical research found that in early morning bacterial counts

are multiplying two times faster at nightthan any other time in the day.

This implies that bacterial growth increases the most during the

night and can increase possibility of cavity. Recent evidence also

supports brushing with fluoride toothpaste before going to bed at night

due to its extended protect for a longer time at night. 

That is why Pepsodent feel the need to use Night Brushing as

its health campaign to make Indonesian people brushing their teeth

before going to bed at night as a part of cavity prevention habit.

F) Innovation:

In 2006, Pepsodent have launched & relaunched its complete

range variant of New Pepsodent. Pepsodent Complete 12, which

offers a complete benefit but at an affordable prices. Offering larger

benefit for its consumer as a part of its effort to pursue its mission

Pepsodent Sensitive, which offers active ingredient that penetrates

through the teeth to relieve the pain from sensitive nerves inside teeth

& gum. Pepsodent Fighter Toothbrush By having these new

innovations, Pepsodent covers all range of oral health care for

consumers

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G) Key facts:

Pepsodent is the leading brand in most Asian Countries

with Indonesia and India as the biggest market.In 2005 Pepsodent is

the only one of the toothpaste brand that recognized by FDI, World

Dental Federation in addition to local dentist association (PDGI).

H) Pepsodent in range:

Pepsodent Complete + Gum Care, Complete 12 + Pepsodent Herbal,

Pepsodent Milk Teeth Orange + Pepsodent Milk Teeth Strawberry

Pepsodent, launched in 1993, was the first toothpaste with a

unique anti-bacterial agent to address the consumer need of checking

germs even hours after brushing.

Pepsodent packs included a Germ Indicator in February-May

2002, which allowed consumers to see the efficacy in fighting germs

for themselves. As a follow-up, in October 2002, Pepsodent offered

Dental Insurance to all its consumers to demonstrate the confidence

the company has in the technical superiority of the product.

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Pepsodent connects directly with kids and their parents.

Pepsodent has always worked in the direction of an overall awareness

of dental health. The relaunch campaign in October 2003 widened the

context to "sweet and sticky" food and leveraged the truth that

children do not rinse their mouths every time they eat, demonstrating

that this makes their teeth vulnerable to germ attack. Pepsodent's most

recent campaign aims at educating consumers on the need for germ

protection through the night.

Pepsodent is the unique toothpaste that has the combination of both

fluoride and tri-close. It has been clinically proven that Pepsodent

fights germs 1.5 times longer than ordinary toothpaste. Because of

these unique qualities it has become one of the leading brands in

Nepal within a short span of 4 years. Pepsodent germs check formula

"Fights Germs Longer Makes Teeth Stronger". Pepsodent has

introduced a range for complete dental care solutions with these

products.Gel for fresh and original flavor combined with germs check

paste makes brushing fun rather than a chore and teeth strongerLong

Lasting Protection Its advanced Germ check formula fights germs

even hours after brushing to give superior protection.

Long Lasting Freshness its Germ check Gel gives lasting

freshness

Pepsodent regular is available in following sizes and prices.

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Pepsodent 30 gms   Rs 10/-

Pepsodent 40 gms   Rs 15/-

Pepsodent 80 gms    Rs 30/-

Pepsodent 200 gms Rs 65/-

Healthy teeth require healthy and strong foundation- healthy gums.

Pepsodent G Gum care is the perfect daily use expert gum care

toothpastes, clinically proven to give healthier gums and reduce gum

bleeding significantly. Reduces recurrent gum bleeding by at least

90% Reduces plaque by 50% even 12 hours after brushing Reduces

tartar formation upto 71% Reduces malodor for hours after brushing

Contains Fluoride, clinically proven anti-cavity agent Contains 2

powerful anti-bacterial ingredients for effective plaque control is the

perfect daily use expert toothpaste for healthy gums and teeth

I) Pepsodent's offer to children:

Hindustan Lever Ltd's (HLL) Pepsodent toothpaste has

introduced games at McDonald's outlets. Gaming kiosks,

developed by indiagames.com, a gaming portal, have been

placed at 10 McDonald's outlets -- nine in Mumbai and one

in Pune. On purchase of a McDonald's Happy Meal, children

can play computer games at these booths. `Fun' games that

highlight killing of germs as a primary requisite. Every child

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(in the age group 7-12 years) who visits the McDonald's

outlet and buys a Happy Meal will be entitled to a ticket that

allows it to play the games''. Helps get your teeth their

whitest. Special formula that helps prevents unsightly tartar.

Helps keep tartar from forming above gum line when used in

an ongoing daily program. Fluoride protection to help fight

cavities.

J) HUL launches Pepsodent Kids:

Mumbai, Nov. 16 Hindustan Unilever has entered the kids

segment in the toothpaste category under a new sub-brand —

Pepsodent Kids. Creating three new variants under the segment, the

FMCG Company has brought in Barbie, Superman and Tom & Jerry

to entice children Sporting Pepsodent Kids in a tube format, the

product has been pegged at Rs 45 for 80 gm. However, Colgate, its

nearest competitor, has already entered this segment with a smaller

SKU (Rs 22 for 40 gm) with two flavours

In fact, HUL has been steadily expanding its Pepsodent

franchise. Early this year, it launched Pepsodent Centre Fresh, a germ

fighting gel with mouthwash. “Pepsodent is positioned as a family

health and protection brand, and it makes sense to extend it as a kid’s

toothpaste,” states an industry observer. Considering its nearest

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competitor Colgate has already entered this segment, HUL has been

adopting a wait-and-watch approach instead of trying to be a pioneer

in this segment. Both HUL and Colgate have introduced single SKU

in the kids segment with their respective brands sporting cartoon

characters.

At the same time, HUL has also extended its Close Up

franchise by introducing two new flavours — Tangerine Burst and

Luscious Lychee — both priced at Rs 30 for 80 gm. Positioning its

new brands as ‘limited edition’ in the market, HUL is possibly testing

out their acceptance in the market

K) Variants:

In fact, the new flavours are being described as ‘Flavalicious’

by the company on its packs to signify the different variants it has

launched. Meanwhile, Close Up continues to sport its red gel mother

brand along with the existing variants of lemon mint and milk

calcium. Three years ago, HUL had taken a conscious decision to

limit the Close Up variants and re-launched the mother brand, as it felt

that having more sensorial variants would not work for its gel-based

toothpaste brand apart from the heavy media spends required to

promote new variants.

It had removed variants such as Tingly Red, Eucalyptus Blue

and even whitening toothpaste. According to an analyst at SSKI

Securities, “The premium end of the oral care market is almost

stagnant. However, HUL consciously wants to build better margins in

this category.”

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According to AC Nielsen for the quarter ending June 2007,

HUL’s has a 30 per cent value share in the toothpaste category and

continues to trail behind the market leader Colgate (48.5 per cent)

According to the Survey with the Sample Size the following data is

Collected.

4.4 Cibaca

A) Introduction;

Dental care major Colgate-Palmolive (India) Ltd's eight-rupee

gamble - the launch of Colgate's Cibaca Top at an affordable price

point of Rs 8 - is said to have worked, with Cibaca Top garnering a

5.9 per cent share of the rural market. "Effectively, today we (Cibaca

Top) have a 5.9 per cent share in the rural market - where it was

virtually one per cent share previously," according to Colgate-

Palmolive (India) managing director Mr. Derrick Samue

The market share of Cibaca Top at the national level stands at

4.4 per cent. It has thus emerged as a strong rural player with the price

point attracting new users to upgrade into the category, comment

industry analysts.

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"We have got in a few new users. Cibaca Top has also

cannibalized a little bit on our other toothpastes. But in the market, it

has cannibalized on some of the other low economy toothpastes," says

Mr. Samuel. "East is particularly an economy market, with

markets like Bihar which had a large scale presence of local players.

There was local competition, and company has made a tremendous

growth there with Cibaca Top," adds

Mr. Samuel. Colgate-Palmolive's overall marketshare in the Rs

1,000-crore toothpaste market has gone up in the October to

December quarter to 51.2 per cent in volume.

The launch of Cibaca Top led to the rejuvenation of the

"economy" segment of the toothpaste market, which falls below the

popular segment in terms of pricing. The company is clear about the

fact that Cibaca Top will be the front runner brand in this segment. In

its portfolio hierarchy of brands, Colgate Total and Colgate Sensation

Whitening lead the premium segment, Colgate Fresh Energy Gel is

part of the gels segment, and Colgate Dental Cream and Colgate

Herbal fall in the popular segment.

With the per capita consumption of toothpaste in India at an

abysmal 82 gm against Thailand's 262 and US's 518, there is an urgent

need to prop up the economy segment of the market, point out

industry analysts. Further, with the rural per capita consumption in

India at a mere 38 gm vis-a-vis 153 gm in the urban market, the

market potential for growth in the economy segment toothpaste brands

is huge.In the year 2000, Colgate revitalized Cibaca which was

relaunched nationally in the economy segment as 'All New Colgate-

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Cibaca Top. With the launch, Colgate entered a new price band - the

economy segment

B) Salient features of Cibaca Toothpaste:

First economy toothpaste from Colgate Initiative to maintain

leadership of the growing low price segment and capitalize on equity

of Colgate Revitalised formulation for strong teeth and fresh breath.

Features Colgate logo on the pack and tube.

C) 6 Cibaca’s steady climb in market share:

Despite relaunches by Anchor & Babool, Cibaca continues to

strengthen its dominance of the Low price point segment in 2006

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Chapter.5

Case Study Based on Cibaca

Case Study Based on Cibaca

The Rs. 2,200-crore toothpaste market (the largest oral care

segment), grew a robust 10 percent in value in 2000. But this wound

down to 2.4 per cent in 2001. In the first six months of 2002, the

market for toothpastes in fact shrank by around 5.7 per cent in value;

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in volumes terms it was much higher at 11 per cent. The going was

tough for the oral care industry.

Little wonder that teeth were bared between the market leader,

Colgate Palmolive, and the challenger, Hindustan Lever, as the

marketing war between the two FMCG giants for protecting market

share got tough.

As if that was not enough, 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, Cibac as Colgate-Cibaca. It was to act as the price

flanker brand in the portfolio. Ditto by HLL with Aim. 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 Colgate’s supremacy once again.

HLL’s 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

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in volume terms after Colgate Dental Cream, Pepsodent and Close-Up

In fact Colgate Cibaca is now #2 in some geographies.

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 a new strategy.

The challenge is to build the brand without cannibalizing Colgate.

Conclusion

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According to the available information the following conclusions were

drawn:

Toothpaste market in Mumbai is mostly capture by Colgate

Palmolive (INDIA) Ltd. The company’s main competitor is HLL who

had launch toothpaste brands such as close-up and pepsodent there

also some other player in market such as Meswak, Babool, Anchor,

Ajanta but Colgate & HLL offers different flavours.

Since toothpaste is fast moving consumer good the sale of same

is showing increasing trend usage of different type of toothpaste

brands are increasing due to different flavours available according to

the age group of consumers.

The most consumers prefer Colgate as television advertisement

specifies that it is recommended by Indian Dental Association (IDA)

and it is good for all age group of consumers.

The advertisement of close up is attracting attention of

youngsters and children’s and it has enabled to increase sales of close-

up.

Recommendations

Company shall improve sale promotion strategy.

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Company shall improve R&D facility try to innovate more

flavor

New company shall follow existing company’s promotion

strategy

Company shall improve quality as per guideline provided by

IDA

Company shall try to capture rural market in India where many

people using substitute of toothpaste like salt, neem,

dentmanjan.

Create awareness of advantages of night brushing.

Extra quantity is given irrespective of actual quantity at the

same price to attract more and more consumers.

With the toothpaste you can give tounge cleaner and

toothbrush.

For sales promotion activities companies may offer a

toothbrush with tounge cleaner on other side of it which will

help the consumers in better usage of toothbrush.

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Bibliography

The data collected from following ways

www.google.com

www.yahoo.com

www.managementparadise.com

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Annexure

Questionnaire

Name: ________________________________________________

Age: __________

Gender: _________

Q1. Which toothpaste your prefer to use the most?

Ans: 1. Colgate 2. Pepsodent

3. Close-up 4. Cibaca 5.Others

Q2. On what basis you are buying toothpaste?

Ans: 1. Advertisement 2. Suggested by dentist 3. Other

Q3.Which toothpaste advertisement influences you the most?

Ans: ___________________________________________________

Q4.Which toothpaste gives you more freshness?

Ans:

_____________________________________________________

Q5.On what basis you buy toothpaste?

Ans: 1.Quality 2.Price

84