5 Top Tooth Paste

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_______________________________________Top Five Toothpaste Brands in Mumbai Executive Summary A day to day necessity of our life is toothpaste. We have variety of brands available in market. People use variety of toothpaste as per their requirement and as per their need, the main objective of using toothpaste is to keep our teeth healthy, 24 hours freshness and to avoid cavity so that we can enjoy our life as we want and we can enjoy variety of food. We have Colgate, Pepsodent, Close – up, Cibaca, Babool, Anchor, Ajanta, etc. The main objective behind making this project is to provide detail analysis of top 5 brand used in Mumbai, and to know most preferable toothpaste in south Mumbai. The top 5 brands used in Mumbai are COLGATE, PEPSODENT, CLOSE – UP, CIBACA, COLGATE FRESH ENERGY GEL. This project gives you brief introduction about Toothpaste Industry, History of Toothpaste, Industry Overview, Segments in the Industry. It includes primary and secondary information. 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. 1

Transcript of 5 Top Tooth Paste

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_______________________________________Top Five Toothpaste Brands in Mumbai

Executive Summary

A day to day necessity of our life is toothpaste. We have variety of brands

available in market. People use variety of toothpaste as per their requirement and as per

their need, the main objective of using toothpaste is to keep our teeth healthy, 24 hours

freshness and to avoid cavity so that we can enjoy our life as we want and we can enjoy

variety of food. We have Colgate, Pepsodent, Close – up, Cibaca, Babool, Anchor,

Ajanta, etc.

The main objective behind making this project is to provide detail analysis of

top 5 brand used in Mumbai, and to know most preferable toothpaste in south Mumbai.

The top 5 brands used in Mumbai are COLGATE, PEPSODENT, CLOSE – UP,

CIBACA, COLGATE FRESH ENERGY GEL.

This project gives you brief introduction about Toothpaste Industry, History of

Toothpaste, Industry Overview, Segments in the Industry. It includes primary and

secondary information.

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.

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.

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.

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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.

Index

Chapter No. Topic Page No

1 Introduction Toothpaste Industry 1-9

2 Consumer Behavior 10-13

3 Top Five Toothpaste Brand 14-20

4 Analysis Of Toothpaste Brands 21-54

5 Case study Based on Cibaca 55-56

6 Conclusion 57

7 Recommendations 58

8 Bibliography 59

9 Webliography 60

10 Annexure 61

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Ch.1 Introduction of Toothpaste Industry

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

(Table 1.2): Toothpaste Penetration

All India Urban Rural

Penetration% 50% 75% 39%

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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

(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

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(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.

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:

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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.

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.

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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%

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.

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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.

3. Colgate MaxFresh Gel – An 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

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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.

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:

1. To study the buying pattern of consumers towards toothpaste

2. To identify the various types of attributes of the toothpaste

which influences consumers.

3. To understand which kind of advertisements are effective for attracting consumers.

4. To study different promotional activities which are most accepted by the respondent

1.5 Research Methodology:

A) Methods of data collection

For the present study, method of data collection adopted were Primary sources

as well as secondary sources. Primary sources comprises of data collected from 128

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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.

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.

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Ch.2 Consumer Behaviour

2.1Meaning of Consumer Behaviour:

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 behavioural 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 behaviour

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

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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.

2.3Characteristics of the Indian Consumer Behavior

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.

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.

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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.

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.

2.6 Marketing Strategies

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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.

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

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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.

Ch.3 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 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

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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 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 theAnchor

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.

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.

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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 ambas

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 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%

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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

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.

Anchor “Naye zamaane ki nayi

suraksha.”

Advanced formula that protects one teeth from

germs & keep them strong.

3.8 Survey Report & Data Analysis:

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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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Ch.4 ANALYSIS OF TOOTHPASTE BRANDS

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.

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• 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

Following Table / Chart show Net sale of colgate

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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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 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

PRODUCT

S

Percentage

%

Toothpast

e

50.85%

Toothpow

der

48%

Toothbrus 31%

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h

While market share of Colgate Dental Cream dropped from 41% to 38.5% in

2001, other have 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. 5-6 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. Anchor 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.

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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.

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.

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.

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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 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%.

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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.

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.

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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 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

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manufacturing facility in Nepal, and completed a dicalcium phosphate facility in

Aurangabad.

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 of consumer centric promotional initiatives, impactful

visibility and an add campaign featuring sunil shetty.

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Percept D'Mark 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 - Colagate-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

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

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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".

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 do 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.

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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, 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

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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 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.

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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 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 Programs are

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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.

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

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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 employmen

4.2 CLOSE UP

A) Introduction:

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

Other Names: None

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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)

Closeup 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, Closeup has broken

every rule in the book on how toothpastes should behave! Closeup was the first gel

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

2004, Closeup was re-launched 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. Closeup 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.

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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 relaunch 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 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

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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.”

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. 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.

Red's the colour-

Jennifer Garner in

AXN's Alias

The revamped Close Up toothpaste

pack

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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 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 to a 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

The Yahoo! India homepage

branded by Close Up on 4

June

The new revamped

Close Up

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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 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

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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.

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

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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, 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.

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

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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

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

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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 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

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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

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:

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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.

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 attac. 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-closan. 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 germicheck formula "Fights

Germs Longer Makes Teeth Stronger". Pepsodent has introduced a range for complete

dental care solutions with these products.

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Gel for fresh and original flavor combined with germi check paste makes

brushing fun rather than a chore and teeth stronger

Long Lasting Protection Its advanced Germicheck formula fights germs even

hours after brushing to give superior protection.

Long Lasting Freshness its Germicheck Gel gives lasting freshness

Pepsodent regular is available in following sizes and prices

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 malodour for hours after brushing Contains

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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 (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 gumline when used in an ongoing daily program. Flouride 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 childrenSporting 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

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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 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 acceptancein the marke

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 a

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.”

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.

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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 marketshare 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.

"We have got in a few new users. Cibaca Top has also cannibalised a little bit on

our other toothpastes. But in the market, it has cannibalised 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.

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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-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:

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Despite relaunches by Anchor & Babool, Cibaca continues to strengthen its

dominance of the Low price point segment in 2006

Ch.5 Case Study Based on Cibaca

The Rs. 2,200-crore toothpaste market (the largest oral care segment), grew a

robust 10 percentin 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; 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.

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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 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.

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Conclusion

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.

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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.

Company shall improve R&D facility try to innovate more flavour

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.

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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.

Bibliography

The information is collected from the following books, journals and report:

Books: Leslie Lazar. Kanuk and Leon G. Schiffman Consumer Behaviour Prentice

Hall of India (Private Limited)

Journal: Mrs. Satya Gilani Indian Journal of Marketing

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Report: Annual Report of Colgate for year 2006-07

Webliography

www.google.com

www.wikipedia.com

www.toothpastefordinner.com

www.colgate.com

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www.pepsodent.com

www.closeup.com

www.hll.com

Annexure

Questionnaire

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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

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