View
16
Download
0
Category
Tags:
Preview:
Citation preview
1
Toothpastes
2
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 is
made up of water and things to help it spread through your mouth easily
3
The Toothpaste Market Industry size: Rs 25 billion Toothpaste can be considered as a solution to the
need of oral care Types of toothpastes:
• Whites
• Gels
• Herbals
Players: MNC dominated market (Colgate, HLL) Market growth: 7-8% CAGR Per capita consumption: 82 gms
4
Porter’s Five Forces Analysis Competition in the sector
• Dominated by large multinational companies such as CP, HLL
• A few Indian companies such as Dabur, Anchor and Babool Threat from substitute products
• Traditional products like twigs of the neem tree, salt, ash, and other herbal items
• Toothpowders with 23% market share can act as a threat to the toothpaste markets
Threat of new entrants: • Sector is not capital intensive
Bargaining power of suppliers• Most of the companies in the industry are integrated backwards
• Manufacturing is largely outsourced Bargaining power of customers
• Very low
5
Players
Company Types of toothpaste
Colgate Palmolive Whites, Gels
HLL Gels
Balsara Hygiene Ltd (now Dabur) Herbal
Dabur India Ltd Toothpowders, Gels
Smithkline Beecham Gels
Anchor White
Vicco Labs Herbal
6
Market Share
39%
17%
16%
13%
5%
4%3% 2% 1%
Colgate Dental Cream PepsodentClose-up Others Cibaca Top Colgate GelPrudent Colgate herbalColgate Total
7
Analyzing Market Opportunities
8
Consumer Needs
Clean teeth
Prevention of tooth decay
Fresh breath
Prevention of plaque, tartar and other diseases
9
Customer Segments
Customersegments
Habit driven
Value-driven(price conscious)
Variety seeking
10
Competitors
MNC dominated markets
Two largest players constituting 84% of the market share
Brand-wise share:
• Colgate 51%
• HLL 33%
• Dabur 9%
11
Colgate
51% market share Flagship brand is largest selling toothpaste brand
Product Share
Colgate Dental Cream 39%
Cibaca Top 5%
Colgate Gel 4%
Colgate Herbal 2%
Colgate Total 1%
12
HLL
India’s leading FMCG company
Late entrant
33% market share
• Pepsodent 17.6%
• Closeup 15.3%
13
Dabur
Acquired Balsara Presence in all segments 30% share in toothpowders 9% share in toothpastes
• Babool 5%
• Promise + Meswak 4%
14
Developing Marketing Strategy
15
Positioning Colgate
• Diversified portfolio• Market leader• Quality products, catering to all needs of customers• Colgate gel positioned as lifestyle product• Colgate Total for tartar control• Cibaca Top for low income groups
HLL• Closeup: Targeted towards youth. Fresh breath, confidence
inducing• Pepsodent: Providing extended protection from germs and tooth
decay Dabur
• Herbal oral care for all segments
16
Product-Service Innovations Colgate
• Continuous line extention and upgradation
• Increased R&D spending
• 40% sales (2004) came from new product launches
• Variants like Colgate Total, Fresh Energy Gel, Colgate Herbal to fill all gaps
HLL• 3-way convergence of product availability, brand communication and
brand experience
• Creating new touch points
• Using the HLL distribution network
• Aggressively entering the out-of-home consumption category Dabur
• New campaign (Subah babool ki to din tumhara)
• New packaging
17
Delivering Marketing Programs
18
Promotional Strategies
Low involvement products
Mostly habitual purchases, low brand loyalty
Differentiation through marketing communications required
19
Colgate Freebies galore
• One of the first to introduce BOGOF
• ‘Below-the-line’ promotion strategy
• Large discounts on offer (upto 25%) Coverage by higher realizations
• Sustained promotional offers possible because of high manufacturer margins
• 30-35% price hike during 2000-03 on almost all brands Ad-spend/Sales ratio 18.2% (2001) 19.9% (2002) Operating profit margins 8.2% 9.2%
20
HLL (Closeup and Pepsodent) Rural:Urban mix = 30:70 Target is to achieve a 50:50 mix Removing weak brands and strengthening strong brands
• Aim, green variant of Closeup, Closeup oxyfresh withdrawn from the market
• Strong brands like Pepsodent Germicheck flanked by brands like 2-in-1 and Pepsodent G
Looking at brand extentions with a ‘whitening’ proposition
Free dental insurance (Rs 10,000) scheme launched in 2002 for Pepsodent
21
HLL
Strategic advertising
• Tie-up with the movie ‘Kyon, Ho Gaya Na’ (2004)
• ‘Kya aap closeup karte hain’ jingle, designed by Lintas
• Pepsodent-Shaktiman contest (2005)
• ‘Dhishoom-dhishoom’ campaign for Pepsodent
Market expansion by using the tagline ‘twice-a-day brushing’ for Pepsodent
22
Dabur
New packaging with logo and celebrity endorsement
Harping on natural strength of teeth by strengthening the roots
‘Live life big bite’ campaign
Media spend: Rs 5 crore in 2005-06
23
Gearing Up for the Future
Huge opportunities because of low per-capita consumption
Reaching rural consumers key to growth
Consumer education also necessary to increase toothpaste use
24
Gearing Up for the Future (Cont.) Colgate
• Competencies in analysis, microbiology, packaging and consumer research
• Target Faster project implementation Better supply chain management
HLL• Segmentation of general trade• Self-service stores and supermarkets• Project Shakti
Dabur• Plans to restructure its sales and distribution structure in line with
the recommendations of Accenture Increase direct coverage to gap outlets and gap towns where Dabur is
not present
25
Launching P&G’s Crest in India History
• First-ever toothpaste to use clinically proven fluoride to prevent tooth decay
• Endorsed by the American Dental Association Current status
• Colgate knocked Crest off its throne as the No. 1 toothpaste in 1997 with the launch of Colgate Total
• In late 2000, after five years of research and development Crest Whitestrips was introduced
Rationale for entering the Indian market• Penetration of modern oral care products and average per capita
consumption of toothpaste very low • Industry sources expect penetration of oral care products to increase
around 65-70% from current levels of around 49% in the next three to four years time
Recommended