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Toothpastes

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Product Features

Toothpaste is a low involvement product

Grinds away the leftover food and plaque on your

teeth, with the help of your toothbrush Abrasive paste

The abrasive in toothpaste is called dicalcium phosphate dihydrate

The other main part of toothpaste is the paste which ismade up of water and things to help it spread throughyour mouth easily

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The Toothpaste Market Industry size: Rs ! billion

Toothpaste can be considered as a solution to the needof oral care

Types of toothpastes:

" #hites" Gels

"$erbals

%layers: &'( dominated mar)et *(olgate, $++

&ar)et growth: -./0 (AGR 

%er capita consumption: / gms

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Porter’s Five Forces Analysis (ompetition in the sector 

" 1ominated by large multinational companies such as (%, $++" A few Indian companies such as 1abur, Anchor and 2abool

Threat from substitute products

" Traditional products li)e twigs of the neem tree, salt, ash, and other herbal items" Toothpowders with 30 mar)et share can act as a threat to the toothpastemar)ets

Threat of new entrants:

" 4ector is not capital intensive 2argaining power of suppliers

" &ost of the companies in the industry are integrated bac)wards" &anufacturing is largely outsourced 2argaining power of customers

" 5ery low

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Players

Company Types of toothpaste

(olgate %almolive #hites, Gels

$++ Gels

2alsara $ygiene +td *now 1abur $erbal

1abur India +td Toothpowders, Gels

4mith)line 2eecham Gels

Anchor #hite

5icco +abs $erbal

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Market Share

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Analyzing Market Opportunities

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Consumer Needs (lean teeth

%revention of tooth decay

6resh breath

%revention of plaque, tartar and other diseases

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Customer Segments

Customer 

segments

Habit driven

Value-driven

(price conscious

Variet! see"ing

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Competitors &'( dominated mar)ets

Two largest players constituting /70 of the

mar)et share

2rand.wise share:

" (olgate !80

" $++ 330

" 1abur 90

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Colgate !80 mar)et share

6lagship brand is largest selling toothpaste brand

%roduct 4hare

(olgate 1ental (ream 390

(ibaca Top !0

(olgate Gel 70

(olgate $erbal 0

(olgate Total 80

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!! Indias leading 6&(G company

+ate entrant

330 mar)et share

" %epsodent 8-;

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"a#ur  Acquired 2alsara

%resence in all segments

3=0 share in toothpowders 90 share in toothpastes

" 2abool !0

" %romise > &eswa) 70

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"eveloping Marketing Strategy

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Positioning

(olgate

" 1iversified portfolio" &ar)et leader " ?uality products, catering to all needs of customers

" (olgate gel positioned as lifestyle product" (olgate Total for tartar control" (ibaca Top for low income groups

$++

" (loseup: Targeted towards youth; 6resh breath, confidence inducing

" %epsodent: %roviding e@tended protection from germs and toothdecay 1abur 

" $erbal oral care for all segments 

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Product$Service %nnovations (olgate

" (ontinuous line e@tention and upgradation" Increased R1 spending" 7=0 sales *==7 came from new product launches

" 5ariants li)e (olgate Total, 6resh Bnergy Gel, (olgate $erbal to fill allgaps $++

" 3.way convergence of product availability, brand communication and brand e@perience

" (reating new touch points" Csing the $++ distribution networ) " Aggressively entering the out.of.home consumption category

1abur 

"  'ew campaign *Subah babool ki to din tumhara"  'ew pac)aging

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"elivering Marketing Programs

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Promotional Strategies

+ow involvement products

&ostly habitual purchases, low brand loyalty

1ifferentiation through mar)eting

communications required

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Colgate

6reebies galore

" Dne of the first to introduce 2DGD6" E2elow.the.line promotion strategy

" +arge discounts on offer *upto !0 (overage by higher realizations

" 4ustained promotional offers possible because of highmanufacturer margins

" 3=.3!0 price hi)e during ===.=3 on almost all brands Ad.spendF4ales ratio 8/;0 *==8→ 89;90 *==

Dperating profit margins /;0→ 9;0

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!! &Closeup and Pepsodent'

Rural:Crban mi@ 3=:-=

Target is to achieve a !=:!= mi@

Removing wea) brands and strengthening strong brands

" Aim, green variant of (loseup, (loseup o@yfresh withdrawn fromthe mar)et

" 4trong brands li)e %epsodent Germichec) flan)ed by brands li)e.in.8 and %epsodent G

+oo)ing at brand e@tentions with a Ewhitening proposition

6ree dental insurance *Rs 8=,=== scheme launched in

== for %epsodent

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!!

4trategic advertising

" Tie.up with the movie EHyon, $o Gaya 'a *==7

" ‘Kya aap closeup karte hain ingle, designed by +intas" %epsodent.4ha)timan contest *==!

" ‘Dhishoom-dhishoom’  campaign for %epsodent

&ar)et e@pansion by using the tagline Etwice.a.day brushing for %epsodent

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"a#ur 

 'ew pac)aging with logo and celebrity

endorsement

$arping on natural strength of teeth bystrengthening the roots

E+ive life big bite campaign

&edia spend: Rs ! crore in ==!.=<

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(earing )p *or the Future

$uge opportunities because of low per.capita

consumption

Reaching rural consumers )ey to growth (onsumer education also necessary to increase

toothpaste use

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(earing )p *or the Future (Cont.)

(olgate

" (ompetencies in analysis, microbiology, pac)aging and consumerresearch

" Target

  6aster proect implementation2etter supply chain management $++

" 4egmentation of general trade" 4elf.service stores and supermar)ets

"%roect 4ha)ti

1abur 

" %lans to restructure its sales and distribution structure in line withthe recommendations of Accenture

  Increase direct coverage to gap outlets and gap towns where 1abur isnot present

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!aunching P+(’s Crest in %ndia

$istory

" 6irst.ever toothpaste to use clinically proven fluoride to prevent toothdecay

" Bndorsed by the American 1ental Association 

(urrent status" (olgate )noc)ed (rest off its throne as the 'o; 8 toothpaste in 899- with

the launch of (olgate Total

" In late ===, after five years of research and development (rest#hitestrips was introduced

Rationale for entering the Indian mar)et

" %enetration of modern oral care products and average per capitaconsumption of toothpaste very low" Industry sources e@pect penetration of oral care products to increase

around