Marketing management II Project

Toothpaste Industry

Group Project

Submitted By: Group 1

Reshmi Raveendran

Contents

� Introduction - Industry background

� Brand 1 details

� Brand 2 details

� Brand 3 details

� Brand 4 details

References

Introduction

In terms of in dental hygiene, India is still a nascent country, with majority of the

population still not having access to modern dental care and is still relying on substances

like coal ash and neem sticks. Traditional materials like neem and tobacco are popular for

cleaning teeth in the rural areas. The oral care industry in India is worth Rs. 5,400 Cr.

annually & comprises of: Toothpastes: 60 %: Rs. 3,240 Cr., Tooth powder: 23 %: Rs. 1,242

Cr. and Toothbrushes: 17 %: Rs. 918 Cr.

Currently, toothpaste enjoys a country wide penetration level of 55 %, with only 15 % of

them brush twice a day. The per capita consumption in India stands at 127gms/year; one of

the lowest in the world.

Also, India’s per capita consumption is less than half of other emerging markets and almost

1/4th the amount of consumption in U.S. Given the low per capita consumption and

penetration rates, toothpaste demand is mainly being driven by the overall market growth

of 8-10 %. 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.

The toothpaste segment in India is largely a two player industry, Colgate &Hindustan

Unilever (HUL) which account for ~76 % of the entire market. For years, Colgate has

dominated the toothpaste market in India with ~ 54.30 % market share. The Company is

India's biggest oral care products company with more than 95 % of its sales coming from

this product category.

Opportunities for Toothpaste Industry in India in oral care market offers huge potential as

penetration and per capita consumption of oral care products is very low. However, rising

per capita income and increasing awareness is driving demand of oral care products.

Consumers have started switching to value-added toothpastes like sensitive toothpastes,

gels, mouth washes, and teeth whitening products. In rural areas, consumers are switching

from toothpowders to toothpastes.

Project Roadmap

For this project, we have picked these two organizations and will study the various aspects

of their marketing.

Under the toothpaste industry, we have analysed two sub industries :

a. Sensitive Toothpaste (Colgate Sensitive pro relief Vs Pepsodent Pro

Sensitive

b. Gel Toothpaste

Toothpaste Industry

Colgate-Palmolive

Colgate Sensitive

Pro Relief

Colgate Maxfresh

HUL

Pepsodent Pro

Sensitive

Closeup

Brand 1 - Colgate Sensitive Pro-Relief (Sensitive Toothpaste Industry)

1. Business Definition (Colgate –Palmolive)

Colgate –Palmolive is a top global maker and marketer of toothpaste and soap and cleaning

products. Colgate is an oral hygiene product line

of toothpastes, toothbrushes, mouthwashes and dental floss.

1. Company Mission

To provide Colgate with a significant competitive advantage by reducing total delivered

cost, extending technology resources and developing excellence in purchasing, logistics

and sourcing processes.

2. Defining the Market:Sensitivity Toothpaste Industry (Premium, Niche segment)

o Segment – Sensitive Toothpaste Market

o Target - People with teeth sensitivity issues, mostly Urban middle class Men and

Women

o Competitors – Sensodyne, Pepsodent

o USP - The first and only toothpaste clinically proven to provide instant and

effective long lasting relief from Sensitivity

Rising awareness among consumers has made the sensitive toothpaste category a highly

attractive segment to operate in. The sensitive toothpaste segment has been growing at a

very high rate (over a low base) and is likely to be a significantly large category of the total

toothpaste market in the next three to five years.

According to industry estimates, the total toothpaste market size in value terms is Rs. 5,784

crore and growing at about 17%. Of this, the relatively newer sensitive toothpaste category

accounts about 9% at Rs. 517 crore, and is growing at 32%. This is possibly the fastest a

segment has opened up in this category. In this case, advertising has definitely created an

impact with consumers.

3. Competitive Set

- Available with chemists and hypermarkets. Colgate has edge over its

competitors in terms of its distribution network of around 45 lakh stores all over

India.

- Colgate’s overall supremacy in the Colgate market, serious image of the brand

has helped it built committed customers

- Brand awareness of Colgate is high but still has not been able to capture

Sensitive Toothpastes market as much as Sensodyne has done through its

testimonial commercials.

4. Roles

� Colgate Sensitive – Follower

� Sensodyne – Leader

� Pepsodent Sensitive – Challenger

5. Profile of Consumers of Colgate Sensitive Pro relief

� All people with teeth sensitivity issues.

� Demography - Health Conscious customers (Oral care)

� Urban middle class Men and Women

Young Adults (married/single no

children)

18-29 yrs

Young Families (children upto 12 yrs) 25-45 yrs

Older Families (children above 12 yrs) 40-55 yrs

Older Adults (empty nesters) 50+ yrs

Senior citizens 60 yrs +

6. Positioning – Toothpaste providing instant relief. Clinically proven and approved

by Indan Dental Association (whereas Sensodyne has positioned itself as 24/7

sensitivity protection & worlds no.1 toothpaste recommended by dentists

worldwide)

Colgate Sensitive toothpaste soothes the nerve ends and builds a protective shield

providing both relief from sudden shocks of pain and long term sensitivity protection with

regular use.

They are capturing the Indian market by educating/creating awareness that teeth

sensitivity is not a disease, every 3 out of 5 person in India suffers from teeth sensitivity

and it can be cure by brushing twice a day using Colgate.

Colgate Sensitive Pro relief Vs Market Leader (Sensodyne)

- Single flavor available in 40 gm & 80 gm pack

- 40 gm – Rs 70 (Sensodyne 40 gm - Rs 42)

- 80 gm – Rs 120 (Sensodyne 80 gm – Rs 75)

- Premium pricing (whereas Sensodyne has penetrative pricing)

7. What Brands should do to improve positioning

� Sensodyne has taken over the market through its testimonial TV commercials.

� Colgate should bring confidence among people through its strategy like

“Clinically proven”

� Packaging also plays a vital role. They have to do rigorous TV Ads to maintain

their position and highlight certain formula in their toothpaste which no other

toothpaste has.

� Colgate has to review its pricing strategy as Sensodyne is delivering the same

value at a lesser cost and since a product like toothpaste has low involvement by

consumers; they switch to other products very easily if they are getting the value

at a lesser price.

- Brand Ambassador like Deepika Padukone as she has one of the best smiles in

Bollywood, to promote the brand just like Madhuri Dixit is promoting Oral B.

- Different flavours/colours definitely attracts the consumers in toothpaste

category

Brand 2 - Colgate Max Fresh Gel (Gel Toothpastes Industry

Colgate-Palmolive is the overall market leader in the Rs 3,000 crore Indian toothpaste

market. But the crown has eluded Colgate in the fastest growing segment of the toothpaste

market — the Rs 900 crore gel segment — where Hindustan Unilever’s Close Up has

widened its lead with a 60 per cent share.

To break into Close Up’s stronghold, Colgate’s Max Fresh gel has also been trying to don a

young image.

But breaking into the youth space will not be an easy feat for Colgate’s Max Fresh.

The first-mover advantage has helped Close Up secure an edge.

“Colgate gel’s biggest handicap it its mother brand equity of a serious health brand, that

makes it less appealing to younger consumers,” points out PraneshMisra, chairman and

managing director, Brandscapes Worldwide. Menon of Kotak Institutional Equities agrees.

“The family and health connotation associated with Colgate as the umbrella brand are so

strong that it has not been able to make a significant dent in the gel space. It would have

been wiser if the company had created a separate brand called Max Fresh, rather than

using the parent Colgate brand,” he opines.

“The younger generation is slowly graduating towards having their own variant or flavour

of toothpaste. In India, the trigger for most toothpaste purchase is still the homemaker and

a common toothpaste is used by the family, Thus, we want to project ourselves as a young-

at-heart brand, which appeals to the family.

Colgate Max Fresh Gel

Colgate MaxFresh gel is infused with cooling crystals (in strips), which dissolve completely

as you brush for a whole new dimension of freshness - freshness .

Fights Cavities. Whiter Teeth. Freshens Breaths.

The whitening formula of the Colgate Max Fresh 150 gm toothpaste acts on the persistent

yellowing coat over the teeth and gets rid of it in a matter of days

Variants: Peppermint Ice, Icy Blast Mint and Citrus Blast

Colgate Maxfresh Peppermint Ice has cooling crystals that dissolve in your mouth setting

off an icy wave of minty coolness.

Colgate Maxfresh Icy Blast Mint has strips of cooling crystals which dissolve in your mouth

and give an explosion of Icy freshness

Colgate Maxfresh Citrus Blast has strips of cooling crystals that dissolve in your mouth to

give a burst of freshness.

Business Definition (Colgate –Palmolive)

Colgate –Palmolive is a top global maker and marketer of toothpaste and soap and cleaning

products. Colgate is an oral hygiene product line

of toothpastes, toothbrushes, mouthwashes and dental floss.

Company Mission

To provide Colgate with a significant competitive advantage by reducing total delivered

cost, extending technology resources and developing excellence in purchasing, logistics and

sourcing processes.

Defining the Market:

- Colgate Maxfresh – premium costing

- Segment – Gel Toothpaste Market

- Target - Young people. The target market being “Multi Brand Households” where

young does not use what their parents.

Competitors – Closeup, Pepsodent

USP –It is the first and only toothpaste infused with Colgate-Palmolive, the leader in oral

care, is redefining the gel segment of toothpaste in India with the introduction of new

Colgate Maxfresh Gel

Competitive Set

- Available with chemists and hypermarkets. Colgate has edge over its

competitors in terms of its didtribution network of around 45 lakh stores all

over India.

Roles

Colgate Maxfresh – Follower

Close-up – Leader

Profile of Consumers of Colgate Max Fresh

Young Adults (married/single no

children)

18-29 yrs

Young Families (children upto 12 yrs) 25-45 rs

Positioning

The only toothpaste with cooling crystals that adds a new dimension to freshness.

Fights Cavities, Whiter Teeth, Freshens Breaths.

They have 3 different flavours and a very attractive packaging to attract the youth.

Peppermint Ice, Icy Blast Mint and Citrus Blast

What Brands should do to improve positioning

They should telecast very youth centric Ads on newspaper/TV.

Brand 3 – Pepsodent Sensitive

“You'll wonder where the yellow went / when you brush your teeth with Pepsodent!”

Pepsodent was launched in 1993 in India and since then the brand has raised the

benchmark on Oral Care solutions in India. Pepsodent is still sold as a Unilever property in

all markets except the United States and Canada.

Pepsodent as a toothpaste aimed at providing the oral health benefit.

Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth,

fresh breath and healthy gums.Pepsodent as an oral care expert offers solution to specific

problems like bleeding gums and sensitive teeth.

KEY FACTS

• Endorsed by FDI ( the largest dental association globally)

• Among the most trusted brands in India (Brand Equity, Economic Times, India)

• Also sold as Mentadent, Zhonghua, PS and Signal in other countries

Mission Statement:-

Pepsodent is developed by Unilever's oral care experts, bringing families around the world

a range of scientifically advanced toothpastes to keep tooth decay at bay.

Pepsodent sensitive Pro Sensitive Positioning

For instant relief from sensitivity pain and repair for lasting protection

Pepsodent Expert Protection Sensitive is a unique toothpaste with proven efficacy to not

only provide relief from tooth sensitivity but also improve gum health in the long term.

Why use Pepsodent Expert Pro-Sensitive?

We at Peposodent worked with Dentists to create Pepsodent Expert Protection Pro-

sensitive. It contains HAP mineral – the same material your teeth are made of - to not only

give you relief from the pain, but also to repair your tooth so the problem does not get

worse.

This advanced technology is also to strengthen and protect gums, thus reducing the risk for

future sensitivity.

Pepsodent Expert Protection Pro-Sensitive gives you back the chance to experience the

pleasures of eating and drinking your favorite things.

How does Pepsodent Expert Pro-Sensitive work?

Pepsodent Pro-Sensitive is the only toothpaste in India with a combination of

Hydroxyapatite, Zinc Citrate and Potassium Citrate, clinically proven to provide rapid relief

and give prolonged protection from dentine hypersensitivity.

Placing of Brands:-

Pepsodent:-

• Is a 19 year old brand that offers various oral care solutions to specific need

based solutions. Also, as per the facebook advertisement

Ad Campaigns to Supplement this Positioning:-

- Lasting Protection for Hours.

- Germ Fighting Campaign

- Dental Insurance

- DishumDishum

- Bhoot Campaign

Pepsodent has posted its print advertisement on its facebook page, which has over one

million fans. The ad shows two kids brushing their teeth with Colgate and Pepsodent, with

both packs clearly visible. When the children take a cavity test, the voiceover says that

Pepsodent Germicheck is ‘130% behtar’, or superior to Colgate, when it comes to germ

attack.

Pepsodent Pro Sensitive Ad

Sources: http://www.youtube.com/watch?v=LUNDx3fEWGI

The Ad highlights, Other toothpastes only remove stains but Main Cause of sensitivity is

enamel erosion and weekend gums

Pepsodent Pro sensitive has HAP formula not only repairs enamel but protects gums and

relieves from pain. Developed by dentists who care

Competitive Edge:-

• Price – The main competitive advantage which Pepsodent sensitive has is the

price. For 80 gms the price is Rs 80 as compared to Sensodyne which is for Rs

120.

• Under the Brand of HUL – One of the competitve advantage is that they are

under one of the most trusted company in India which give them an advantage

over Sensodyne.

• Strong Distrubution Network – HUL has used the same distrubutuion network

which they used for other FMCG products and for personal care products which

would again give an advanateg to Pepsodent.

• Brand Ambassador – The brand ambassador associate with Pepsodent is

Shahrukh Khan one of the most influenced film personality which can easily

attract kids and there parents (Target Audience)

Marget Segmentation:-

Geographic Segmentation –

• The Urban market for toothpaste is almost stagnant.

• Due to deeper penetration in rural market HUL introduced smaller packages of

100gms priced for Rs 10.

Behavioral Segmentation –

• Pepsodent has lots of variants in different segment for example Sensitive, Gem

Check, Whiting etc. This gives customer lots of choices.

• Pepsodent gives a complete care whether it is for oral or germi check.

Pepsodent Sensitive Pro Relief Mainly targets:-

• Though it affects people of all ages, those between the ages of 20 and 50 report dental

hypersensitivity very frequently, especially between the ages of 20 to 30

• It is reported more frequently in women than men

• Frequency of dental hypersensitivity is very high in patients suffering from gum problems

Issues:

» The role of product differentiation in making a consumer try out a new product

» How competitive advantages get eroded quickly in a marketplace

» The need to align oral care awareness programs with promotional campaigns for

developing the market for oral care

Brand 4 (Close Up)

Business Definition (Close up HUL)

India’s 1st gel toothpaste

Market leader in gel toothpaste category for over 3 decades

Some of the best known celebrities have been part of Close-up ads over the years

Close Up –World No.1 producer for Gel Tooth Paste

Close up has line toothpastesand mouthwashes all their lines are made to function as the

‘fresh breath maker’, promising consumers long-lasting fresh breath

Company Vision

Close Up envisions itself as the number one toothpaste brand for the youth. Their goal is to

get young adults to feel how much the brand can help them achieve fresh breath, which, in

turn, can boost their confidence to face their everyday challenges. Close Up’s goal is to be

the youth’s first choice when it comes to toothpaste brands.

• Defining the Market:

Gel toothpaste Industry (Fresh Breath Category)

• Segment – Fresh, Gel and Mouthwash

Target - People with Young and outgoing nature, Self actualization confident and mostly urban middle class Men and Women this is the focussed on the demographic of

youth aged between 15-35, young energetic workforce and active.

The brand has always been unique and fun, encouraging people to open up by getting over

their self doubt. It is aimed at every person who is young at heart.

Its marketing strategy involves पास आओ the literal Hindi translation for Close up.

• USP - For years, Closeup has been synonymous with fresh breath confidence that

we require during our social interactions

• Competitive Set

All Brands using Gel in their toothpaste

Mouthwash

Teeth whitening toothpaste

• Roles

Close up – Market Leader

Pepsodent Centre Fresh – Market Follower

Colgate Maxfresh – Market Challenger

Best Ad Campaign for Close Up

One of the earliest campaigns of Close up was “KyaAap Close UpKarteHai…” The

advertisement showed a Mr. Bean kind of looking guy brushing with Close up manages to

woo a beautiful girl who does not get impressed by a handsome looking guy giving her a

flying kiss. She rather gets impressed from a flying kiss from the ordinary looking Mr. Bean

due to his fresh breathe released while giving her the flying kiss.

Analysis

- Freshness is associated with the ad

- The product is clearly identified with the brand image of Close up which is

confidence.

- The jingle is the USP of the advertisement. The funny voice and the way the

singer modulates the voice is attractive.

- Lyrics of the background score are really catchy.

- Mr. Bean is the main face of the ad

- The ad was very popular as my six year old niece never used to get tired singing

the song every time she saw the ad on the television.

References:

http://articles.economictimes.indiatimes.com/2013-02-15/news/37119591_1_oral-care-

cibaca-consumer-awareness)

http://www.business-standard.com/article/management/close-up-smile-gets-wider-

111072700034_1.html