COLGATE CIBACA

The Road Ahead

COLGATE CIBACA The

Road Ahead Anindya PalAbhijit SamantaKamalika MondalSaugata DastiderSubhadip Chakraborty

International School of Business & Media; Kolkata

Presentation Overview

Indian Toothpaste Industry Overview

Target Audience & their Understanding

Creative, Media & Communication Strategy

Situation Analysis & Problem Identification

Positioning

Conclusion

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INDIAN TOOTHPASTE INDUSTRY:AN 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.

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.

It is a Rs. 2,200-crore market.

• The dentist to population ratio is a critically low 1:35000 in the country. This results in low oral hygiene consciousness and widespread dental diseases

• Less than 15% of the Indian toothpaste users brush twice a day.

INDUSTRY OVERVIEW Contd…

• 10 per cent growth in 2000, 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.

• The market leader is Colgate Palmolive, and the challenger, Hindustan Lever. Colgate and Hindustan Lever together account for over 85% of the organized toothpaste market

• Regional low priced competitors such as Anchor Healthcare & Ajanta India, who priced their offerings at over 40% discount, are giving market leaders a run for their money

INDUSTRY OVERVIEW Contd…

• Low priced competitors like Anchor and Ajanta accounted for more than 80 per cent of the growing ‘discount segment’.

• Colgate revitalized one of its existing brands, Cibaca as Colgate-Cibaca. It was to act as the price flanker brand in the portfolio. Ditto by HLL with Aim.

SITUATION ANALYSIS

• 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 HLL’s Aim however could not match the success and was subsequently withdrawn from the market.

• 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)

SITUATION ANALYSIS Contd…

• Building the brand Cibaca without cannibalizing its parent brand Colgate Dental Cream.

• Cibaca needs to have a strong communication strategy in order to grow.

• Moreover, a major portion of the rural segment is still untapped- an enormous potential market for Cibaca.

PROBLEM AT HAND

First economy toothpaste from Colgate.

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

Initiative to maintain leadership of the growing low price segment and capitalise on equity of Colgate.

Revitalised formulation for strong teeth and fresh breath.

COLGATE CIBACA

• Cibaca targets the low price segment. The Lower Price Point segment accounts for around 25% of total category volumes.

• Class1 towns and others in order to leave the metros for the flagship brand -Colgate dental cream.

Target Audience

The TARGET GROUP can be categorized as:

Geographic – The target group is not geography specific but more focussed on tier1 and tier2 cities.

Demographic i) Age – Targets the entire family

ii) Income – Cibaca targets low income group and middle class.

iii) Sex – Both male and female.

Target Audience

• 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.

• Colgate Cibaca caters to low economy segement as a competitor to brands like Babool, Anchor etc.

• Consumer do prefer private levels like Cibaca because of the low rates, flexibility and quality assurance.

• Moreover, as population and purchasing power of the individuals are increasing there is increased market for toothpaste industry

Consumer Understanding

Cibaca is positioned as the first economy toothpaste by Colgate with its tagline “ Lajawab Kam Kifayati Daam” proves its commitment i.e. ROI to the consumer.

To put a step ahead, the brand needs to reposition Cibaca to change the mindset that Cibaca targets only economy class. It should target the enormous potential in rural areas.

It can position itself with new variants like mint, cardamom, cinnamon, elaichi etc. which makes it toothpaste with freshness as well as medical benefits.

Positioning

Cibaca Mint for freshness and Cibaca Cardamom, Cinnamon for pain, plague etc.

Cibaca can be positioned as toothpaste which gives value for money along with flavours like mint, cardamom etc.

Cibaca can be positioned with respect to product benefit which meets the consumer need.

Hence, it can be positioned by price, quality, product attributes and culture.

Positioning contd…

Cibaca can use rational appeal to attract customers i.e. provides strong teeth and fresh breath.

It can project its ad campaign with teasers, scientific evidence and drama.

It can go for endorser like Dhoni who can relate to mass.

It can also focus on its USP i.e. value for money.

Creative Strategy

Setting up of objectives like that of “ To create a awareness and familiarity with the brand for Cibaca.”

Different media is to be used delivering same idea or theme of Cibaca.

Since the campaign is national ;television, print media will have the maximum target coverage.

Media Strategy

Media Strategy contd…

Scheduling- Since Cibaca is an FMCG product continuity scheduling method will be the best way.

The media used for the Cibaca ad campaign should very necessarily create a mood and excitement in the minds of the consumer.

The media strategy should be very flexible for a product like Cibaca to threats, availability of media etc.

Cibaca needs a high level of reach and frequency.

Since, Cibaca is repositioned there should be heavy amount of investment in media which will further help in creating imagery.

It can organize camps for rural segment where they can demonstrate the product and usage.

Budget consideration is an important factor while designing media strategies.

Media Strategy contd…

• Colgate’s flagship dental cream is popular in metros. Hence its ads should be in cosmopolitan TV channels and newspapers.

• Cibaca’s ads should come in local Indian channels like ETV Bangla, Alpha Bangla etc. Advertising in between the daily soaps to gain attention of women folks.

• Print ads in local newspapers like Dainik Jagran, Navbharat Times etc.

Communication Strategy for Cibaca

• Dental heath camps in rural areas. Word of mouth can be effective in rural areas.

• Below the line activities are to be organized which will help in sales promotions, lead generation etc.

• Offers like brush free with toothpaste for limited period.

Communication Strategy for Cibaca

There is a huge untapped market in suburban and rural areas as people still use neem sticks and coal for brushing.

With its new promotional and creative strategies, Cibaca can mark a distinct image and put and end to competition posed by Babool, Anchor and Ajanta.

Cibaca catering the needs of both the segments i.e. lower and middle class will help it to increased market share compared to other competitors.

CONCLUSION

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