PROJECT REPORT ON

SUBMITTED TO-

(__________________) PREPARED BY-

Dr.KUNAL GAURAV M.KALYAN

DATE-17TH MAR’16 SECTION-C

ROLL NO: 15-110

INDEX

INTRODUCTIONPROFILE OF COMPANYHISTORYBRAND PORTFOLIOHISTORICAL PERSPECTIVEPRESENT ADVERTISEMENTCONCULSION 

Introduction:

Indian oral care market: Many people in India still clean their teeth with traditional products

like Neem twigs, salt, ash, tobacco or other herbal ingredients. Average all India per capita consumption of toothpaste is a dismal

82gms. 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. The toothpaste market grew at a CAGR of 7-8% between 1995-

2000. But in 2001 the market grew by only 4%. Colgate and Hindustan Lever together account for over 85% of the

organized toothpaste market. Red and Black toothpowder still accounts for 35% of the

toothpowder market. In toothpowders, Colgate and Dabur are the leading players sharing

between the 75% of the market. Penetration of toothpowder in the urban areas has been declining,

as more and more consumers switch from powders to paste. Brand loyalty is quite high for toothpastes, but is extremely low for

toothbrushes.

The Rs. 2,200-crore toothpaste market (the largest oral care segment), grew a robust 10 per cent in value in 2000. But this wound down to 2.4 per cent in 2001. In the first six months of 2002, the market for toothpastes in fact shrank by around 5.7 per cent in value; in volumes terms it was much higher at 11 per cent. The going was tough for the oral care industry .Little wonder that teeth were bared between the market leader, Colgate Palmolive, and the challenger, Hindustan Lever, as the marketing war between the two FMCG giants for protecting market share got tough. As if that was not enough, these players found new aggressive competition coming their way from regional low priced competitors such as Anchor Healthcare &Ajanta India, who priced their offerings at over 40% discount, giving market leaders a run for their money. These low priced competitors accounted for more than 80 per cent of the growing‘discount segment’. It looked as if the multinational companies were helpless against challenger brands. But then the big boys struck back, Colgate revitalized one of its existing brands, Cibaca 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 .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 the challenge is increase the share of Cibaca without cannibalizing mother brand Colgate.Profile of Colgate-Palmolive India Limited:Colgate (sub-brand of Colgate-Palmolive) is an oral hygiene product line of toothpastes, toothbrushes, mouthwashes and dental floss. Colgate toothpaste was first sold by the company in 1873, sixteen years after the death of its founder, William Colgate

The Colgate-Palmolive Company is an American multinational consumer products company 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. The company's corporate offices are on Park Avenue in Midtown Manhattan, New York City.

Colgate has been ranked ranked as India's #1 most trusted brand across all categories for four consecutive years from 2003 to 2007.It is also a market leader with major market share 56.70% in toothpaste segment and 43% in toothbrush segment in 2015.

History:In 1806, when the company was founded by 23-year-old William Colgate, it concentrated exclusively on selling starch, soap, and candles from its New York City-based factory and shop. Upon entering his second year of business,

Colgate became partners with Francis Smith, and the company became Smith and Colgate, a name it kept until 1812 when Colgate purchased Smith's share of the company and offered a partnership to his brother, Bowles Colgate. Now called William Colgate and Company, the firm expanded its manufacturing operations to a Jersey City, New Jersey, factory in 1820; this factory produced Colgate's two major products, Windsor toilet soaps and Pearl starch. Colgate-Palmolive Company's growth from a small candle and soap manufacturer to one of the most powerful consumer products giants in the world is the result of aggressive acquisition of other companies, persistent attempts to overtake its major U.S. competition, and an early emphasis on building a global presence overseas where little competition existed. The company is organized around four core segments--oral care, personal care, home care, and pet nutrition--that market such well-known brands as Colgate toothpaste, Irish Spring soap, Softsoap liquid soap, Mennen deodorant, Palmolive and Ajax dishwashing liquid, Ajax cleanser, Murphy's oil soap, Fab laundry detergent, Soupline and Suavitel fabric softeners, and Hill's Science Diet and Hill's Prescription Diet pet foods. Colgate-Palmolive has operations in more than 200 countries and generates about 70 percent of its revenue outside the United States.

In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son.

In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.

His company sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896.

In 1928, Palmolive-Peet bought the Colgate Company to create the Colgate-Palmolive-Peet Company.

In 1953 "Peet" was dropped from the title, leaving only "Colgate-Palmolive Company", the current name.

1997,Colgate Total toothpaste is introduced in the U.S. and quickly becomes the market leader. Only Colgate Total, with its 12-hour protection, fights a complete range of oral health problems.

2004,Colgate acquires the GABA oral care business in Europe, with its strength in the important European pharmacy channel and its ties with the dental community.

Today Colgate has numerous subsidiary organizations spanning 200 countries, but it is publicly listed in only two, the United States and India. 

Colgate Palmolive milestone:

• 1806: Company is founded by William Colgate in New York to make starch, soap, and candles.

• 1873: Toothpaste was launched

• 1928: Colgate and Palmolive-Peet merge, forming Colgate-Palmolive-Peet Company.

• 1937: the company moved into India.

• 1966: Palmolive dishwashing liquid is introduced

Colgate Palmolive milestone in India:

• 1937: launch first toothpaste Colgate dental cream

• 1949: launch tooth powder and toothbrush

• 1950: Palmolive shave cream

• 1976: launch programme “young India.”

• 1989: Palmolive extra care soap launched.

• 2003: launch oral health month program

Brand portfolio:• Colgate® Strong Teeth

• Colgate Total®

• Colgate® Visible White®

• MaxFresh®

• Colgate® Sensitive

• Colgate Sensitive Pro-Relief®

• Colgate® Active Salt

• Colgate® Maximum Cavity

Protection plus Sugar Acid

NeutralizerTM

• Colgate® Kids

• Others

Historical prospective of advertising :

1950s - An Colgate commercial promising an end to 'unpleasing breath', and featuring a very trustworthy-looking dentist.

colgate tv advertising with tag line of 3way cleaning in1960

TV advertisement of Colgate toothpaste sometime in 1972, featuring the phenomenal superstar, Nora Aunor

1980’s- Colgate given a advertisement about new testy blue minty gel toothpaste

1990’s – colgate started aggressive celebrity endorsement with

Aishwarya Bachan and Sachin Tendulkar, bollywood actor Sanjay Sharma

Aishwarya Bachan add- about colgate gel

Sachin Tendulkar add- about colgate total

Sanjay Sharma add- about colgate tooth powder

2000’S- in this decade colgate come with new concepts

"COACH" Ad Campaign

Colgate started it’s advertisement of colgate active salt with a

unique concept, with a question tag line of “Kya apkei toothpaste mei namak hai…?” till now colgate is following this concept with few changes, with celebrity endorsement

Celebrity endorsement with Priyanka Chopra, with a modified

question tag line of “Kya Apkei toothpaste mei namak aur neem hai…?”

2015- celebrity endorsemeny with Allu Arjun for colgate maxfresh

Present advertisements: Celebrity endorsement with Sonam Kapoor for Colgate

Visible White add with a shine song

Celebrity endorsement with virat kohli for colgate flexible toothbrush. In this add the toothbrush is related with cricket bat.

Conclusion:The advertisement is a marketing tool which helps a company to let the people know about the product. The main purpose of the advertisement is to Create Awareness, Persuasion, Education, Information, Emotion, Brand Loyalty, Understanding, etc.

Colgate-Palmolive informs its customers about its new products as well as the product that is being used by the customers. Colgate-Palmolive persuades and convinces its new as well as old customers to purchase itsnew product. Adopting a good promotional strategy Colgate has succeeded to retain its customers and image. By this Colgate strongly focuses on different promotional strategies i.e. mass selling, advertising, publicity and sale promotion etc. Colgate-Palmolive has proved itself as a keen observer of the market and the culture all around itself. Through the strong promotion by the media i.e. TV, radio, newspaper etc. It is rightly successful to capture the mass market. So, we can say that the Colgate is the product of mass selling. Colgate is not only using the traditional advertising media for its Promotion. However it is also using the electronic advertising media i.e. internet etc. Because a large number of people are using the internet. So, Colgate also advertises on the different websites with its required information for its customers and has a specific website to promote each Colgate product. Colgate also promotes its product by sales Promotion to attract its customers to use the product. Sometimes, Colgate introduces the product at low prices according to the quantity and to facilitate its customer. Which effect positively on the Colgate’s end customer or consumer. Colgate’s positive Promotion effect on the product as well as company. Which helps a lot to establish the product image as well as company image in the minds of customers. By using the idea of AIDA and IMC, Colgate’s promotional activity not only became strong but also helps to convincing the customers to adopt the product for using. So, we can say that the Colgate’s proper promotion makes new room in the market for establishment

ADVERTISEMENT: Its different products which are designed for different segments are targeted to the audience by highlighting itsfeatures. Its common tagline for all products is-

No1 brand recommended by dentist.´ Sales promotion:-for rural market COLGATE uses VAN (van is a

mobile promotion station having facilities for screen show, slide show and mike publicity.

Thank you