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Research Report On Consumer Behavior in FMCG (Toothpaste) Industry" and To Find Out

This document provides an introduction and objectives for a research report on consumer behavior in the fast-moving consumer goods (FMCG) toothpaste industry. It discusses how Colgate Palmolive Ltd. changes its plans and strategies to meet market demands and compete effectively. The objectives are to understand the oral care market, study retailers and consumers' responses to Colgate sensitive toothpaste and toothbrushes, and promote their sales. It outlines the scope of studying overall customer and retailer responses, conducting competitive analysis to gain advantages, and making necessary changes based on SWOT analysis findings.

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shakti shanker
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0% found this document useful (0 votes)
156 views80 pages

Research Report On Consumer Behavior in FMCG (Toothpaste) Industry" and To Find Out

This document provides an introduction and objectives for a research report on consumer behavior in the fast-moving consumer goods (FMCG) toothpaste industry. It discusses how Colgate Palmolive Ltd. changes its plans and strategies to meet market demands and compete effectively. The objectives are to understand the oral care market, study retailers and consumers' responses to Colgate sensitive toothpaste and toothbrushes, and promote their sales. It outlines the scope of studying overall customer and retailer responses, conducting competitive analysis to gain advantages, and making necessary changes based on SWOT analysis findings.

Uploaded by

shakti shanker
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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INTRODUCTION

“Necessity is the mother of invention” New formats of all organization is to create new
strategy, planning and implement those things to get a better result when compared to
competitor. Colgate Palmolive ltd. in one of the largest FMCG company in India. So their
planning and strategy should be remarkable ,and they are doing this very well. Colgate
Palmolive ltd. change their plan, strategy according to the market demand, competitor.

This project is also a sincere attempt of mine to discuss about A Research


Report on Consumer Behavior in FMCG (Toothpaste) Industry” and to find out
importance of Chemist stores and how these are playing a major role in bridging
relationship between colgate and customer requirement in FMCG sector, those are
emerging formats of FMCG sector.

While doing this project I had learnt a lot which I would not have been able to know had
I not pursued this project in my summer training.

“Continuous enhancement is the key factor to success in every sector, FMCG sector
also”

In the project the customer expectations and aspirations have been dealt with to analyze
the quality of product and services provided by COLGATE-PALMOLIVE Ltd and what
customer wants from them, and how much they are satisfied with the present quality of
products and services. The project has tried to recommend ways of enhancing customer
satisfaction by the quality of products and services provided by COLGATE-
PALMOLIVE LTD to use those qualities of products and services to position them for
the COLGATE-PALMOLIVE Ltd. in the competitive environment of FMCG sector. I
hope that my efforts shall be considered by the COLGATE-PALMOLIVE Ltd. for
implementation in their business strategy.

pg. 1
OBJECTIVE

Understand the oral care markets.

To study the market area, its size and the habit of the market.

To find out retailers and customers response towards Colgate sensitive toothpaste and
toothbrush.
Detailing of the product to the retailer and Dentists.

Made an attempt to promote and increase the sales of Colgate sensitive toothpaste and
toothbrush.

To study and analyze the medicals owners view about the packs of new Colgate
sensitive toothpaste and toothbrush.

To carry out a market survey in the city to find the demand estimation Colgate sensitive
toothpaste and toothbrush.

To study the opinion of customers and chemists regarding Colgate sensitive toothpaste
and toothbrush.

Study the competitor’s in market.

pg. 2
Scope of study

Project location map

pg. 3
The scope of the study to revealed overall customers and retailers response over
Colgate sensitive toothpaste and toothbrush.
Competitor’s analysis to gain competitive advantage.

That will help to study SWOT ANALYSIS and according to which necessary changes

could be implied.

Source of data

1. Secondary data was collected by visiting medical association office, medical


representative and dental association diary.
2. Primary data was collected by Interviewing Various person-
Dentist

Chemist Shop

Distributer

City development officers

End consumer

pg. 4
RESEARCH METHODOLOGY

Research Design Followed:

Descriptive Research is the research method used because descriptive studies embrace a
large proportion of market research. The purpose is to provide an accurate snapshot of
some aspect of the market environment. Descriptive research is more rigid than
exploratory research and seeks to describe users of a product, determine the proportion of
the population that uses a product, or predict future demand for a product. As opposed to
exploratory research, descriptive research should define questions, people surveyed, and
the method of analysis prior to beginning data collection. In other words, who, what,
where, when, why, and how aspects of the research should be defined.

Sampling:-

Sampling Technique Followed:

In this project the technique of sampling used was Judgment sampling. Judgment
sampling involves the choice of subjects who are most advantageously placed or in the
best position to provide the information required.

Sample unit:

In this project case sample were the retailers in Aurangabad City region & the aim was to
know the penetration level of Colgate Sensitive and the competitors present in the market.

pg. 5
Data Collection Techniques:

SOURCES OF DATA

SECONDARY DATA

Secondary data collected from different website. This secondary data formed the
conceptual background for the project. This secondary data was compared with the
primary data collected in area.

RESEARCH INSTRUMENT

The research instrument used in the project was Questionnaire to collect primary
information, it provided flexibility by using more close ended and few open ended
questions.

METHOD OF DATA COLLECTION

Information was collected by personally contacting retailers through interviews

pg. 6
ANALYSIS AND STATISTICAL TECHNIQUE USED

Types of data analysis techniques used in the project:

Tabular analysis.

Graphical analysis

Percentage analysis.

pg. 7
COMPANY PROFILE

HISTORY

In 1806, William Colgate, himself a soap and candle maker, opened up a starch, soap and
candle factory on Dutch Street in New York City under the name of "William Colgate &
Company". In the 1840s, the firm began selling individual cakes of soap in uniform
weights. In 1857, William Colgate died and the company was reorganized as "Colgate &
Company" under the management of Samuel Colgate, his son. In 1872, Colgate
introduced Cashmere Bouquet, a perfumed soap. In 1873, the firm introduced its first
toothpaste, aromatic toothpaste sold in jars. His company sold the first toothpaste in a
tube, Colgate Ribbon Dental Cream, in 1896. By 1908 they initiated mass selling of
toothpaste in tubes.

1806

William Colgate starts a starch, soap and candle business on Dutch Street in New York
City.
1817

First Colgate advertisement appears in a New York newspaper.

1820

Colgate establishes a starch factory in Jersey City, New Jersey.

1857

Upon the death of founder William Colgate, the company is reorganized as Colgate &
Company under the management of Samuel Colgate, his son.
1866

pg. 8
Colgate introduces perfumed soap and perfumes/essences.

1873

Colgate introduces toothpaste in jars.

1879

Gerhard Mennen establishes a pharmacy in Newark, NJ, later becoming the Mennen
Company.
1896

Colgate introduces toothpaste in a collapsible tube.

1900

Colgate wins top honors for its fine soaps and perfumes at the World’s Fair in Paris.

1902

Stylish Palmolive advertising begins, emphasizing ingredient purity and product


benefits.

1906

Colgate & Company celebrates its 100th anniversary. Product line includes over 800
different products.

1908

Colgate is incorporated by the five sons of Samuel Colgate. Ribbon opening added to
Colgate tube: “We couldn't improve the product so we improved the tube.” 1911

pg. 9
Colgate distributes two million tubes of toothpaste and toothbrushes to schools, and
provides hygienists to demonstrate tooth brushing.

1912

William Mennen introduces the first American shaving cream tube.

1914

Colgate establishes its first international subsidiary in Canada.

1920

Colgate begins establishing operations in Europe, Asia, Latin America and Africa.

1928

Colgate merges with Palmolive-Peet to become Colgate-Palmolive-Peet Company.

1930

On March 13, Colgate is first listed on the New York Stock Exchange.

1939

Dr. Mark L. Morris develops a pet food to help save a guide dog named Buddy from
kidney disease. This breakthrough leads to the first hill's Prescription Diet product.

1947

pg. 10
Ajax cleanser is launched, establishing a powerful now-global brand equity for cleaning
products.
1953

Colgate-Palmolive Company becomes company's official name.

1956

Colgate opens research center in Piscataway NJ.Fabric conditioner is launched in France


as Soupline. Today, fabric conditioners are sold in over 54 countries around the world.
1966

Palmolive dishwashing liquid is introduced and today it is sold in over 35


countries. 1968
Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities.

1970

Irish Spring launches in Germany as Irische Frühling and in Europe as Nordic Spring. In
1972, Irish Spring is introduced in North America.

1972

Colgate acquires Hoyt Laboratories, which later becomes Colgate Oral


Pharmaceuticals. 1975

Caprice hair care launches in Mexico. Today, hair care products are sold in over 70
countries, with variants to suit every type of hair need.

1976

Colgate-Palmolive acquires Hill's Pet Nutrition. Today Hill's is the global leader in pet
nutrition and veterinary recommendations.

pg. 11
1983

Colgate Plus toothbrush is introduced. Today over 1.6 billion Colgate toothbrushes are
sold annually worldwide. If you lined them up end to end, they would circle the globe 16
times.

1985

Protex bar soap is introduced, and today offers all-family antibacterial protection in over

56 countries. Colgate-Palmolive enters into a joint venture with Hong Kong-based


Hawley & Hazel, a leading oral care company, which adds strength in key Asian markets.

1986

The Chairman's You Can Make A Difference Program is launched, recognizing


innovation and executioner excellence by Colgate people.

1987

Colgate acquires Soft soap liquid soap business from the Minnetonka
Corporation.

Today, Colgate is the global leader in liquid hand soap.

1989

Annual Company sales surpass the $5 billion mark.

1991

pg. 12
Colgate acquires Murphy Oil Soap, the leading wood cleaner in the U.S. Today, its
product portfolio has expanded to include all-purpose cleaners, sprays and wipes.

1992

Colgate acquires the Mennen Company. Today, Mennen products are sold in over 52
countries. Colgate Total toothpaste introduced.

1995

Colgate enters Central Europe and Russia, expanding into fast-growing markets. Colgate
acquires Kolynos Oral Care business in Latin America and launches market-leading
Sorriso toothpaste.

1996

Bright Smiles, Bright Futures oral health education program expands to 50 countries, and
today reaches over 50 million children annually.

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.
2006

pg. 13
Colgate enters the fast-growing Naturals segment by purchasing Tom’s of Maine, a
leader in that market in the United States.

Today …

Today, with sales surpassing $15 billion, Colgate focuses on four core businesses: Oral
Care, Personal Care, Home Care and Pet Nutrition. Colgate now sells its products in over
200 countries

Business Operation Background

Household & Personal Products Colgate-Palmolive is Rs 1,300 crore. Company started in


year 1937. In Rs 2,400 crore domestic market it enjoys 50% of market share. It spread
across 4.5 million retails outlets out of which 1.5 million are direct outlets. The Company
is having four wholly owned subsidiaries namely Colgate-Palmolive.

Financials

Total Income - Rs. 18025.707 Million (year ending Mar 2009) Net Profit - Rs. 2902.194
Million ( year ending Mar 2009).

Business Description

The Company manufactures and markets a number of products in the U.S. and around
the

pg. 14
world in two distinct business segments: Oral, Personal and Home Care; and Pet
Nutrition.

Colgate Palmolive (I) is one of the leading companies in India in the FMCG industry
segment. Colgate Palmolive (I) is the subsidiary of Colgate Palmolive Ltd., New York
which is the parent company. Colgate Palmolive is a foreign-based public limited
company. The company is in the business of consumer products for more than 100 years.
In India it is the numerous brands.

Company Product

ORAL CARE
Toothpastes

Tooth brushes

Kids products

Whitening product

Over the counter

PERSONAL

Men’s & women’s Antiperspirant and Deodorant

Bar soap

Body wash

Liquid hand wash

pg. 15
Toiletries for men

HOME CARE

Dishwashing

Fabric

Conditioner

Household

Cleaners

Institutional products
PET NUTRITION

Science Diet

Prescription Diet

pg. 16
Toothbrush:-

Colgate 360

Colgate Navigator Plus

Colgate Sensitive

Colgate Extra-Clean Gum Care

Colgate Massager

Colgate Kids 2+

Colgate Zig Zag

pg. 17
Colgate Dental Cream:-

Colgate Total 12

Colgate Sensitive

Colgate Max Fresh

Colgate Kids Toothpaste

Colgate Fresh Energy Gel

Colgate Herbal

Colgate Advanced Whitening

Colgate Cibaca Family Protection

Colgate Active Salt.

pg. 18
MARKETING STRATEGIES

Colgate delights consumers around the world with an array of Oral Care, Personal Care,
Home Care and Pet Nutrition products. Behind the success of Colgate’s brands are
carefully developed business and marketing strategies.

Known for having a long history of strong relationships with its retail trade partners.
Small stores around the world are just as important to Colgate as large ones. Based on
consumer and shopper insights, the Company works closely with local merchandisers and
shop owners to offer a relevant assortment of products and merchandising services to
achieve high visibility in each store.

Colgate is sharply focused on aligning its strategies and goals with those of its trade
partners in order to achieve mutual success. Colgate people understand that the way they
do business is just as important as the results they achieve.

Colgate has developed global commercial selling principles that apply to their
relationships with all customers, regardless of their size or location. These principles
provide specific guidelines on how to achieve business goals, while maintaining Colgate’s
commitment to its values and to upholding the highest ethical standards in its business
dealings.

Innovation is a cornerstone of Colgate’s strategy to drive profitable growth. While


innovation in new product development is key, equally important is innovation
throughout all of the Company’s business functions and processes.

New product development for products expected to be launched within three years takes
place at nine consumer innovation centers strategically located around the world. These
centers create new product concepts and ideas based on specific insights into consumer
wants, needs and behaviors. For projects extending three to five years into the future,
work is focused in three category-specific long-term innovation centers: Oral Care, Pet

pg. 19
Nutrition and Personal Care. Supplementing these efforts, Colgate scientists conduct early
research to establish a scientific foundation for new product ideas generated, and develop
robust formulations that deliver new benefits to consumers.

In marketing, Colgate is breaking ground in connecting with consumers in non-traditional


ways, particularly by leveraging the Internet and mobile phones. One successful program
is capitalizing on the popular use of the term “Colgate Smile” for any great smile. Colgate
encourages a personal, emotional connection with our brand by inviting consumers to
share their “Colgate Smiles” via photographs, stories and videos posted on
www.ColgateSmile.com and numerous social networking sites, such as MySpace and
Facebook. To best reach today’s consumers, Colgate uses integrated marketing
communications that include a mix of traditional and new media, as well as creative
promotional activities. For example, as part of its very successful “ FEEDING IS
BELIEVING” Maketing campaign

pg. 20
Company Performance

Colgate's long history of steady growth and strong performance comes from a strategy of
tight focus on global brands in four core businesses: Oral Care, Personal Care, Home
Care and Pet Nutrition. Among the Company's goals for 2010 are to: Remain the
undisputed global market leader in Oral Care. Become the undisputed global market
leader in Specialty Pet Nutrition Become a stronger global No. 2 competitor in Skin
Cleansing, leading in liquids and successful in other large Personal Care categories
Become a stronger regional leader in selected Home Care categories Colgate becoming
ever more streamlined and sustainable as we progress toward a truly global supply chain,
providing us with greater flexibility and increased cost efficiencies. Since 2004, Colgate
has reduced the number of manufacturing plants worldwide by over 25%, which includes
five new state-of-the-art facilities. These new factories are environmentally friendly,
making more efficient use of energy, water, materials and land.

By developing the full potential of all Colgate people and demonstrating our commitment
to our stakeholders’ health and wellness.

pg. 21
By growing consistently and responsibly, continuously meeting or exceeding our
financial goals and focusing on product sustainability.

By maintaining our commitment to our environmental targets and expanding our focus on
water quality and availability.

Performance

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Global 8.66 8.80 9.00 9.08 9.29 9.90 10.5 11.3 12.2 13.7
Sales 1 1 4 4 4 3 84 97 38 90

The Market Size & The Major Players Are :-

Category Major Players Market share (In billions)


SKIN CARE HLL 13
Personal Wash HLL 46

Hair care MARICO 28


Oral care COLGATE 23

pg. 22
OVERVIEW OF PERSONAL CARE MARKET

50%
45%
40%
35%
30%
25%

pg. 23
About the product

Colgate Sensitive Toothpaste

Colgate Sensitive toothpaste is medicated toothpaste. This toothpaste is effective a


against Sensitive teeth.

Wouldn't you love a sensitivity toothpaste that not only relieves the immediate pain, but
goes beyond sensitivity relief to provide proven protection, fresh breath and whiter teeth?
New Colgate Sensitive, a sensitivity toothpaste that gives you more: fast relief, proven
protection, fresh breath and whiter teeth. Always read the label.

What Is Sensitivity?

Many adults suffer from sensitive teeth. Cold, heat and high sugar concentrations can
alter the fluid dynamics in microscopic tooth tubules, which in turn stimulate the nerve
deep inside the tooth causing pain and discomfort.

How Can Colgate Sensitive Help?

Colgate Sensitive's Potassium Citrate formula soothes the nerve ends and with regular use
builds a protective shield, providing both immediate relief from sudden shocks of pain
and long term sensitivity protection with regular use.
Fight pain to sweet/sour/hot/cold foods by desensitizing nerves.

pg. 24
Helps maintain the natural whiteness of your teeth.

Significance inhibitory effect on the formation of supra-gingival calculus.

Has a pleasant taste.

INTRODUCING COLGATE SENSITIVE TOOTHPASTE

It gives you fast relief from sensitivity pain, lasting protection with regular use, proven
protection against cavities and plaque, fresh breath and gently restores the natural
whiteness of your teeth. Its advanced formula contains potassium citrate that provides fast
soothing relief. Colgate Sensitive is available in 50ml and 75ml tubes and 100ml pumps.

Colgate Sensitive Multi Protection offers complete protection for sensitive teeth. With

unbeatable protection for sensitive teeth whilst also protecting teeth and gums, thanks to
its clinically proven bacteria fighting system.

Colgate Sensitive Toothpaste 100g sensitivity relief and fluoride protection, as well
as

a great taste and fresh breath, for patients suffering from dental hypersensitivity. Colgate
sensitive is a toothpaste containing potassium nitrate, which has a direct desensitising
effect on the pulp nerve fibers of the tooth. Potassium nitrate is clinically proven to
actively relieve tooth sensitivity. Colgate sensitive also contains fluoride to provide
everyday care. Fluoride is proven to protect against cavities, and with regular brushing, it
helps fight plaque. Its foaming ingredients ensure effective cleaning.

pg. 25
Active Ingredients:

Potassium Nitrate

Copolymer/ Pyrophosphate

Sodium Monoflurophosphate.

Dosage:

Adults and children 12 years of age and older: apply approximately a 2.5cm strip of the
product onto a soft toothbrush. Brush thoroughly for at least one minute twice a day
(morning and evening) or as recommended by a dental professional. Make sure to brush
all sensitive areas of the teeth.

Warnings:

Do not swallow. Children under 12 years of age: use only on the advice of a dentist or
doctor. If sensitivity persists, see your dentist.

pg. 26
COMPETITORS OF THE COMPANY

As the company is in the market, the company has to face the competition from many

other companies. Colgate is also not an exception for that and company has following direct
competitors

DIRECT COMPETITORS:

Emoform

Sensitive teeth, inflamed and slightly bleeding gums The active ingredient potassium nitrate is the
only substance classified by the FDA as a safe and effective tooth desensitizer. With regular
brushing of the teeth, the patient experiences a marked alleviation of pain after 1-2 weeks and an
improvement in the condition of the inflamed gums.

For the acute stage of painful and sensitive tooth necks, inflamed and mild bleeding of the
gums

For the regular long-term care of sensitive teeth, prevention of dental decay and
periodontitis

Thermoseal

Sensodent

Thermo kind-f

pg. 27
Pepsodent

HUL

Sensoform

P&G

Competitor’s Analysis

One of the best sources of information is to investigate competing businesses. These


businesses can provide a wealth of information that can be used in evaluating the
potential for your business. By evaluating how a company markets its business, it is
possible to determine the markets it is targeting. For example, if competing businesses are
advertising in Southern Living, they are targeting affluent, middle age females. However,
if they are advertising in the sports section of a metropolitan newspaper, they are most
likely targeting males. In addition to collecting information on the markets they are
targeting, a competitor analysis can reveal packaging preferences, target market
information, pricing strategies, distribution channels and marketing strategies. Simply
evaluate the products and services your competitor is providing. Are they producing
family packs or individual serving sizes of their processed food product? How are they
getting their products to their customers? Are their products value prices or are they
priced for the high-end market? Are they focused on convenience, quality or quantity?
What type of packaging material are they using?

pg. 28
Price of available competitors in market

Theromoseal 100 gm, 50gm Rs 54 , Rs 28 Strontium chloride


hex hydrate

Sensodent-K 100 gm, 50gm Rs 65, RS 42 Potassium nitrate

Emoform 150gm,100gm, RS 50, RS 63, RS Potassium nitrate


50gm 30

Thermokind-F 100 gm, 50gm RS 43, RS 24 Potassium nitrate


5% w/w, sodium
Monoflurophosphate
0.7 % w/w, triclosan
0.3 % w/w

pg. 29
Introduction of Toothpaste Industry

The toothpaste history in India can be tracked back from 1975 with 1200 tonnes of toothpaste
produced by the toothpaste industry. Prior to the toothpastes Oral Hygiene was the domain of
local home made powders and ayurvedh practitioners. With the entry of Colgate in Indian
marketplace the awareness about Oral care and the importance of oral care. In recent years the
Industry has shown impressive growth rate of 18.6% (this growth is calculated in terms of value
growth in Rs.).

The growth in the Urban market has been largely by the Gel Segment. Presently, a large chunk
of the Market is still held by Colgate. The major players in the toothpaste Industry being Colgate
Palmolive and Hindustan Lever Limited and several minor players like Balsara hygiene, Dabur
and Patanjali etc.

Presently Colgate Dental Cream holds 52% of market share. HLL’s Close up lies far behind
with 23% of the existing market share. The third player in the marketplace in terms of market
share is Colgate Gel with 10.5% of the market share. That leaves 14.5%

market share for other Brands like Pepsodent, Pepsodent G, Promise, Babool, Sensofoam,
Forhans, Cibaca, Neem, Vicco etc. The toothpaste market is presently valued at Rs. 750 crores
out of which the Gel segment has already bagged 1/3rd portion of it. The Gel segment presently
stands at Rs. 248 crores and is growing at a rate much faster than Cream. In India toothpaste
usage as compared to other countries is very low which signifies about the potential of the
market. In Urban India the usage of toothpaste per person per year is just 190gms. Where as it is
200gms of toothpaste per person per year in developing countries as Indonesia and Thailand. In
developed countries as USA and other European countries the toothpaste usage is 375 gms per
person year. In India the toothpastes companies are going in for advertising on a heavy note, on
an average the companies managing this FMCG category are spending 6.15% of their sales on

pg. 30
development. Colgate Palmolive had shelled out 15% of their sales on ads in the year 1994.
Dabur had an ad expenditure of 5.07% for the year 1993. whereas balsara Hygiene spend a huge
10.17% of their sales.

SWOT analysis of the Industry

Strengths

Market reach for both rural and urban areas

Availability of raw material

Low operational cost

Weaknesses

Point of parity

Research and Development

Opportunities

Purchasing power increase

Health camp

Low dentist population ratio

pg. 31
Threats

Well established competitor substitute

Top Ten Toothpaste Brands

COLGATE (Colgate Palmolive Ltd)

PEPSODENT (Hindustan Unilever)

CLOSE UP (Hindustan Unilever)

SENSODYNE (GlaxoSmithKline)

AQUAFRESH (GlaxoSmithKline)

ANCHOR (Anchor health & beauty care Ltd.)

DABUR RED (Dabur India)

BABOOL (GlaxoSmithKline)

MESWAK (GlaxoSmithKline)

VICCO BAJRADANTI (Vicco Laboratories)

pg. 32
Colgate is an umbrella brand principally used for oral hygiene products such as toothpastes,
toothbrushes, mouthwashes and dental floss. Manufactured by the American consumer-goods
conglomerate Colgate-Palmolive, Colgate oral hygiene products were first sold by the company
in 1873, sixteen years after the death of the founder, William Colgate. The company originally
sold soap.

According to a 2015 report by market research company Kantar Worldpanel, Colgate is the only
brand in the world purchased by more than half of all households.[1] Colgate has a global market
penetration of 67.7% and a global market share of 45%.[2] Despite this, it maintained the highest
growth rate of all brands in the survey, with 40 million new households purchasing Colgate-
branded products in 2014.[3] Its global market penetration is nearly 50%; higher than the second-
placed brand in the study, Coca-Cola with 43.3% penetration.

History

Colgate was the first toothpaste in a collapsible tube, introduced in 1896 in New York City. It
had been sold in glass jars since 1873.[4]

It has been in Malaysia since the 1920s. It is in Nepal and India, with manufacturing units based
in India and exported to Nepal. While in the Philippines, it was introduced in 1926 under The

pg. 33
Palmolive Company Philippines before it changed its name to Colgate-Palmolive Philippines in
1949.[citation needed]

In 1957, Colgate established its first factory in India to produce toothpaste for the domestic
market, and by 1999 became the highest selling brand in the world.[citation needed] Colgate products
are marketed in China under its Chinese Brand name 高露洁 (Pinyin: Gāolùjié), which means
"high-quality cleaning gel".[citation needed] As of 2002, Colgate occupied 20% of the market share
for toothpastes in China.[5] As of 2015, it also commanded approximately 70% of the oral care
market in Brazil.[3]

In 2007, the Advertising Standards Authority in the UK told Colgate that it could no longer make
the claim that 4 out of 5 dentists recommended Colgate. Investigation had showed that the study
had telephone surveyed dentists to list toothpastes they recommended, and their competitors
were recommended at similar rates. The claim was deemed deceptive.[6]

As of 2015, oral care products (principally produced under the Colgate brand) were the Colgate-
Palmolive company's largest source of income, making up around US$7.5 billion, or 47% of net
sales globally (with personal care products such as shampoos making up 20%, home care
products such as laundry detergents 19% and pet nutrition products making up the remaining
14%).

History of Colgate

pg. 34
3. 1806 William Colgate starts a starch, soap and candle business on Dutch Street in New
York City.

4. 1817 First Colgate advertisement appears in a New York newspaper.

5. 1820 Colgate establishes a starch factory in Jersey City, New Jersey.

6. 1857 Upon the death of founder William Colgate, the company is recognized as
Colgate & Company under the management of Samuel Colgate, his son.

7. 1873 Colgate introduces toothpaste in jars.

8. 1879 Gerhard Mennen establishes a pharmacy in Newark, NJ, later becoming the
Mennen Company.

1896 Colgate introduces toothpaste in collapsible tube.

1902 Stylish Colgate advertisement begins, emphasizing ingredient purity and product
benefits.

1906 Colgate & Company celebrates its 100th anniversary. Product line includes over
800 different products.

1911 Colgate distributes two million tubes of toothpaste and toothbrushes to schools,
and provides hygienists to demonstrate tooth brushing.

pg. 35
1914 Colgate establishes its first international subsidiary in Canada.

1930 On March 13, Colgate is first listed on the New York Stock Exchange.

1939 Dr. Mark L. Morris develops a pet food to help save a guide dog named Buddy
from kidney disease. This breakthrough leads to the first Hill's Prescription Diet
product.

1956 Colgate opens corporate headquarters at 300 Park Avenue in New York City.

1968 Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities.

1972 Colgate acquires Hoyt Laboratories, which later becomes Colgate Oral
Pharmaceuticals.

1985 Colgate-Palmolive enters into a joint venture with Hong Kong based Hewley &
Hazel, a leading oral care company, which adds strength in key Asian markets.

1989 Annual Company sales surpass the $5 billion mark.

1995 Colgate enters Central Europe and Russia, expanding into fast growing
markets.

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

pg. 36
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, with sales surpassing $15 billion, Colgate focuses on four core businesses; Oral
Care, Personal Care, Home Care and Pet Nutrition. Colgate now sells its products in
over 200 countries and territories worldwide.

pg. 37
History of Pepsodent

Pepsodent toothpaste was introduced in the USA in 1915 by the Pepsodent Company of
Chicago. The original formula for the paste contained pepsin, a digestive agent designed to break
down and digest food deposits on the teeth, hence the brand and company name.

From 1930 to late 1933 a massive animated neon advertising sign, featuring a young girl on a
swing, hung on West 47th Street in Times Square in New York City. (This ad was re-created
for the climax of the 2005 film King Kong and was featured in the original film in a
establishing shot of Times Square itself.)

Following the acquisition of the Pepsodent Company by Unilever in 1944, sales of Pepsodent in
the UK increased rapidly, more than doubling between 1944 and 1950. The

pg. 38
company outgrew its original factory in Park Royal, and the manufacture of the product was
moved to the factory of another Unilever-owned toiletry manufacturer, Joseph Watson and
Sons of Whitehall Road, Leeds, in 1951.

Pepsodent was a very popular brand before the mid-1950s, but its makers were slow to add
fluoride to its formula to counter the rise of other highly promoted brands such as Crest and
Gleem toothpaste by Procter & Gamble, and Colgate's eponymous product; sales of Pepsodent
plummeted. Today Pepsodent is a “value brand” marketed primarily in discount stores and
retails for roughly half the price of similarly sized tubes of Crest or of Colgate.

The product was discontinued in South Africa in 1974 but was revived in 1976 with a new
ad slogan "Gets Your Teeth Their Whitest" featuring celebrity endorsers Rita Moreno, Steve
Lawrence, and others. The popular slogan was also changed in South Africa to "You'll
wonder where the dullness went / when you polish your teeth with Pepsodent".

In 2003, household-manufacturing company Church & Dwight purchased the Pepsodent brand
rights in the United States from Unilever. Unilever still holds the rights to Pepsodent, where it is
sold outside the U.S. Church & Dwight also holds the rights to such toothpaste brands as Aim,
Arm & Hammer, Close-Up and Mentadent. This change of ownership eventually led to addition
of fluoride to the toothpaste. The company’s new marketing strategy was retro packaging, retro
flavor, modern levels of fluoride content and low price. They offer two versions of Pepsodent;
one with the original flavor, as some consumers like the minty flavor it had in its glory days, and
another with enhanced whitening ingredients. Both versions, according to Church & Dwight,
feature a “proven cavity-fighting formula” that aids in the removal of plaque and promotes
strong enamel and healthy gums as well as tartar control.

The American Dental Association recommends brushing your teeth at least twice a day with a
fluoride toothpaste that bears the ADA’s Seal of Acceptance. Church & Dwight’s Aim Cavity
Protection Toothpaste and Arm & Hammer Dental Care Advance Cleaning Mint Toothpaste
with Baking Soda bear the ADA seal of acceptance. However, as of July 2010, Pepsodent
toothpaste, despite its staying power over the decades, did not.

pg. 39
Pepsodent is still sold as a Unilever property in all markets except the United States and Canada.
In Vietnam, Pepsodent is called P/S. In 2013, Pepsodent was ranked 201st among India's most
trusted brands according to the Brand Trust Report 2013 India study, a research conducted by
Trust Research Advisory. According to the Brand trust Report 2014, Pepsodent moved up to
71st position among India's most trusted brands. Pepsodent's parent company Hindustan
Unilever was ranked 47th in the Trust Report 2014.

Swot analysis of Colgate

Strength

Geographically diversified industry

Strong brand image

Strong market share

Appealing advertisements

Huge sales growth

Skilled workforce

Strong promotional strategies

Weaknesses

Saturated market

Market share is limited due to the presence of other strong FMCG brand

pg. 40
Fake brands are supplied under their brand names

Opportunities

Tap rural market and increase penetration in same

Emerging markets may attract business

Differentiation strategy is required

Threats

Increase in commodity prices

Fierce competition

New entrants in the market can be a threat to Colgate

Swot analysis of Pepsodent

57 Strengths

Endorsed by FDI ( the largest dental association globally)

Among the most trusted brands having celebrities like Shahrukh Khan as brand
ambassador

Pepsodent toothpaste fights germs to protect teeth against cavities and gives
strong teeth, fresh breath and healthy gums

pg. 41
Pepsodent as an Oral Care expert offers solution to specific problems like
bleeding gums and sensitive teeth

Pepsodent also includes a range of toothbrushes

58 Weaknesses

Colgate is the top-of-the-mind toothpaste brand hance intense


competition

Low penetration in the rural areas

59 Opportunities

Innovative marketing like Pepsodent packs included a Germ Indicator in


February-may 2002, which allowed consumers to see the efficacy in fighting
germs

Pepsodent campaign which aims at educating consumers on the need for germ
protection through the night

Smaller packaging for rural markets, tie-ups with hotel chains, schools

60 Threats
Competition from internal brand like Close Up in the same segment and
external brand like Colgate

Oral hygiene still lacks in the rural parts of the country

pg. 42
Comparison between Colgate and Pepsodent

Colgate Pepsodent

Definition Colgate is a sub brand of Pepsodent is another leading name


Colgate Palmolive. Colgate in oral care solution. It has been
provides a range of hygiene around since 1920s. It provides a
related products. The name has range of toothbrushes and
been extensively popular for its toothpaste.
oral care products.

Toothpastes Colgate Total Pepsodent 2 in 1


Colgate Visible White Pepsodent Center Fresh
Colgate Max Fresh Pepsodent Germi check
Colgate Kids Toothpaste Complete + Gum Care
Colgate Herbal Complete 12 Pepsodent
Colgate Cibaca Family Pepsodent Milk Teeth
Protection Orange
Colgate Active Salt Pepsodent Milk Teeth
Colgate MaxWhite Strawberry
Colgate Kids Toothpaste Pepsodent Whitening
Pepsodent Cavity Prevention

Toothpastes Colgate Sensitive Pepsodent Expert Pro-


for sensitive Colgate Sensitive-Pro- sensitive
teeth Relief

pg. 43
Main Potassium Nitrate Potassium Citrate
ingredients of Fluoride Hydroxyapatite
the sensitive Zinc Citrate
range
Fluoride

Guiding Reduce the weight of Remove the unnecessary


Packaging packaging components of packaging
Principles Remove the secondary Focus on the optimal size
and tertiary packaging and weight
layers Reusablitity of packaging
More use of recycled materials
materials Focus on renewable
Focus on the reusable resources
packages Increase the use of recycled
components

COLGATE

Mission - “To become a fast growing consumer goods industry by

developing and delivering innovative new products to consumers and marketing them
more efficiently”.

Vision- “Colgate’s vision is to become the best truly global products

company.

pg. 44
Company Profile of Colgate

Type Public

Industry Personal Care

Founded 1806

Founder William Colgate

Slogan "World of Care"

Website www.colgatepalmolive.com

Key People Ian M. Cook, C.E.O.

Headquarter United States

Competitor Pepsodent & Close Up

pg. 45
Key Persons

Ian M. Cook Chairman, President, C.E.O.

Vinod Nambiar Chairman

Issam Bachaalani Managing Director

Franck J. Moison Vice Chairman

R.A. Shah Vice Chairman (Non-Executive & Independent Director)

Dennis Hickey Vice Chairman

P.K. Ghosh Deputy Chairman

M. S. Jacob Chief Financial Officer

Henning Jakobsen Chief Financial Officer

P. Justin Skala Chief Operating Officer

Noel Wallace Chief Operating Officer

Jennifer M. Daniels Chief Legal officer and Secretary

Vikram Singh Mehta Non-executive & Independent Director

Indu Sahani Non-executive & Independent Director

pg. 46
Shyamala Gopinath Non-executive & Independent Director

Sukanya Kripalu Non-executive & Independent Director

M. Chandrasekhar Vice president (Sales & Customer Development)

Variety of Colgate

Brand Colgate deals in various products relating to oral hygiene care. Besides its normal
variants used by every genre, it has also launched special products for kids. The product kitty
includes Colgate toothbrush with bristles that are soft and reachable at every nook and corner of
the mouth to fight tooth decay and germs. Colgate toothpowder and mouthwash is one of the
very common products of this brand as they both relate to a different section of the customers.
The mouthwash makes the mouth feel fresher.

The Colgate toothpaste comprises abrasive materials like fluoride that help in scrubbing the
plaque away from the teeth and polishes the surface by removing the food stains. Presently,
thirteen variants of the toothpaste are available in the market that provides protection from
cavities, prevention of gingivitis and plaque, longer duration of fresh breath, controlling of
tartar, and whitening of teeth, strengthening of enamel and sensitivity relief. Some of the various
Colgate toothpaste products are-

Colgate Toothpaste

Colgate Total Advanced Whitening


Colgate Total Advanced Clean
Colgate Advanced Fresh Gel

pg. 47
Colgate 2 in 1 Oxygen Whitening
Colgate 2 in 1 Icy Blast
Colgate 2 in 1 Kids Strawberry
Colgate Regular
Colgate Tartar Control Toothpaste
Colgate Total
Colgate Active Salt
Colgate Total 12
Colgate Cibaca
Colgate Sensitive
Colgate Max Fresh
Colgate Fresh Energy Gel

Colgate Toothbrush

Colgate 360
Colgate Zigzag
Colgate Cibaca

Colgate Tooth Powder

pg. 48
PEPSODENT

Mission- "Unilever's mission is to add Vitality to life. We meet every

day needs for nutrition, hygiene, and personal care with brands that help people feel good,
look good and get more out of life.

Vision-

We work to create a better future everyday.


We will inspire people to take small everyday actions that can add up to a big difference
for the world.
We will develop new ways of doing business with the aim of doubling the size of our
company while reducing our environmental impact.

Introduced in USA in 1915.


Acquired by Unilever in 1944.
In 1960, it failed because of awareness about Fluoride which helps in fighting cavity.
In 1993, came to India.
Since 2003, Church and Dwight acquired Pepsodent, but in India it is still sold under
Unilever.
Involved in CSR activities like dental check up and School Program.

pg. 49
Key Persons:-

Mr. Harish Manwani Chairman

Mr. Nitin Paranjpe CEO and Managing Director

Mr. R. Sridhar Chief Financial Officer

Mr. Gopal Vittal Executive Director, Home & Personal


Care

Mr. Pradeep Banerjee Executive Director, Supply Chain

Mr. D.S. Parekh Independent Director

Mr. A. Narayan Independent Director

Dr. R. A. Mashelkar Independent Director

Mr. S. Ramadoral Independent Director

pg. 50
COLGATE

STP Process of Colgate

Segmentation > Targeting > Positioning

Segmentation:-

Demographic :- > On the basis of age group, gender.

Different products for kids & adults, for boys & girls.

Psychographic/Behavioral:- > On the basis of their oral care needs

Whitening, Sensitivity

Targeting:-

Target group is mostly middle class families

The Target group for various products differ on the basis of value proposition

For CAS:-

Current user of Toothpaste products

People who are conscious about the oral health

pg. 51
People facing issues with oral health

Positioning:-

Functional benefits

(A) Dental hygiene

(B) Product basis

The Doctor recommendation confirming the quality of the product

(A) Competitor based

The added value than the competitor products

Price Positioning

Trial products, products at multiple price points

pg. 52
PLC - PRODUCT LIFE CYCLE OF COLGATE

PEPSODENT

STP Process of Pepsodent

Segmentation > Targeting > Positioning

Segmentation :- Pepsodent is a brand for "Aspiring" as well as "Striving" i.e.


for both mid and mass segments

The segmentation has been done as :-

Geography:- > Rural Segment

Urban Segment

Behavior:-> Benefits - Type of Oral Problem

pg. 53
Demography:- > Age - Kids, Youngsters, Elders

> Income - Low Price, Medium Price, High Price

Targeting:-

1. Pepsodent is targeting the adult male/female and kids by different varieties of


products.

2. They also target mothers as they use kids in their ads.

3. The variants of Pepsodent in totality target complete family as a family care


products.

1 Positioning:-

3. Pepsodent is positioned as long-lasting protection from germs; it could fight germs


for hours after brushing

4. Research suggested that mothers worry about what their kids eat, especially when
they are away from them, and its impact on their dental health. Using that insight,
Pepsodent launched the 'Dishoom Dishoom' ad that said; Let Pepsodent fight germs
for you.

pg. 54
✓Marketing Mix of Pepsodent

7. P's

Product

Price

Place

Promotion

Marketing Mix of Pepsodent analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the Pepsodent marketing strategy.

Product:

Pepsodent is one of the leading oral care brands primarily into toothpastes and toothbrushes. A
brief about the product portfolio in its marketing mix can be explained as follows. Pepsodent
offers 5 different products in its dental cream segment namely Expert protection, Clove and Salt,
Germicheck, Supersalt, Whitening. Pepsodent is among the most trusted brands in India (Brand
Equity, Economic Times, India). Pepsodent has positioned the product as one that fights germs
and offers protection against cavities and gum related problems. The brand also offers
toothbrushes to its product range. In the oral care market in India, toothpastes have the highest
share followed by toothbrushes. HUL has bundled certain product ranges of Pepsodent to offer it
in SKUs of 150 g, 300g, 100g and 175 g. For its premium offerings like Gum care, expert
protection, the SKUs has been maintained at 70g. Pepsodent mainly caters to the urban market.
There is a growing preference for products with natural and ayurvedic ingredients. Indian

pg. 55
toothpaste market is a growing segment with several opportunities available. Almost one third of
the population does not have access to any of the modern oral healthcare facilities making it an
attractive prospect for leading key players. Toothpastes are available in the powder, gel and
cream formats in the market.

Price:

Pepsodent mainly targets the urban segment who do not mind spending more for a quality
product. The brand has positioned some of its daily use products a little above that of Colgate.
The additional price is commanded for its Germ shield active ingredients. The key value
proposition of Pepsodent is the value it offers for protection against germs and cavities. Despite
the USP the pricing of Pepsodent products in its marketing mix is competitive enough to have
a strong market share.

Place:

Pepsodent is sold through retail outlets. It is also available on e-commerce platforms like flipkart
and amazon. HUL has an amazing distribution and retail channel. Pepsodent uses this similar
retail channel to get the reach and breadth to sell its products across all corners of the country.
HUL has close to 7,000 redistribution stockists covering about one million retail outlets. 2,000
suppliers and 7,000 distributors currently serve the 100 factories that HUL operates in India.
Pepsodent is made available in traditional mom and pop (kirana) stores and supermarket type
retail outlets too. Hence, due to the extensive network spread across, Pepsodent toothpaste and
toothbrushes are available easily.

pg. 56
Promotion:

Pepsodent has strong marketing focus and uses all channels to ensure good brand visibility.
Pepsodent used a problem-solving approach initially when the product was launched. Its
advertisements communicated about the problems that arise out of germs and the film that
deposits on teeth after food consumption. It was launched as a 10-day trial pack product
allowing the consumers to test it before making volume purchases. Pepsodent ads usually target
children. Unilever believes in catching the customers young, hence they specifically
communicate its advertisements to children. Toothpastes are tunnel products where consumers
do not spend much time trying to understand which product is the best. Hence, aggressive
advertisements will help the brands to gain a higher brand recall among consumers. Recently
Pepsodent launched a digital behaviour change programme that aims at making brushing a
happy family activity. Pepsodent are trying to move away from their traditional image of a
product exclusively for the children. Hence, this gives an overview of the marketing mix of
Pepsodent.

pg. 57
PROMOTIONAL

CAMPAIGN

pg. 58
COLGATE

pg. 59
pg. 60
pg. 61
pg. 62
PEPSODENT

pg. 63
COMPANY PHOTOGRAPH

COLGATE

pg. 64
PEPSODENT

pg. 65
pg. 66
PRODUCTS

pg. 67
DATA ANALYSIS AND INTERPRETATION

Source - Website

Key Difference: Colgate is a sub brand of Colgate-Palmolive. Colgate provides a range of


hygiene related products. The name has been extensively popular for its oral care products.
Pepsodent is another leading name in oral care solutions. It has been around since 1920. It
provides a range of toothpastes and toothbrushes.

Colgate is named after William Colgate who started off with a small soap and candle business in
the early 19th century. Since then, the company has evolved itself and has become a popular
brand name. Colgate-Palmolive Company is an American based Multinational Corporation.
Colgate is a sub brand of Colgate-Palmolive. Colgate provides a range of hygiene related
products. The name has been extensively popular for its oral care products. The products of
Colgate can be classified into the categories of oral care, personal care and household care. All
toothpastes under the Colgate brand are approved by the FDA and are also recommended by the
American Dental Association.

pg. 68
Pepsodent is another popular name in oral care solutions. It has been around since 1920. It
provides a range of toothpastes and toothbrushes. This brand was initially owned by Unilever but
after 2003, it is owned by Church and Dwight of USA. Before 1950, Pepsodent was a very
popular brand. After 1950, the brand received a major setback and struggled hard to revive itself.
The company was slow to add flouride to its formula for toothpastes, and thus faced a tough
competition with other brands. Now, this well-known minty-flavored toothpaste is majorly sold
in discount stores and chains. However, it still has numerous faithful consumers.

Comparison between Colgate and Pepsodent:

Colgate Pepsodent
Colgate is a sub brand of
Pepsodent is another leading
Colgate-Palmolive. Colgate
name in oral care solutions.
provides a range of hygiene
It has been around since
Defintion related products. The name
1920s. It provides a range of
has been extensively
toothpastes and
popular for its oral care
toothbrushes.
products.
 Pepsodent 2 in 1
 Colgate Total
 Pepsodent Center
 Colgate Visible
Fresh
White
 Pepsodent Germi
 Colgate Max Fresh
check
 Colgate Kids
 Complete + Gum
ToothPaste
Toothpastes Care
 Colgate Herbal
 Complete 12
 Colgate Cibaca
Pepsodent
Family Protection
 Pepsodent Milk
 Colgate Active Salt
Teeth Orange
 Colgate Maxwhite
 Pepsodent Milk
 Colgate Kids
Teeth Strawberry

pg. 69
ToothPaste  Pepsodent
Whitening
 Pepsodent Cavity
Prevention

 Colgate Sensitive
 Colgate Sensitive-  Pepsodent Expert
Toothpastes for sensitive
Pro-Relief Pro-Sensitive
teeth

 Potassium Citrate
 Potassium Nitrate  Hydroxyapatite
Main ingredients of the
 Flouride  Zinc Citrate
sensitive range
 Flouride

 Remove the
unnecessary
 Reduce the weight of
components of
packaging.
packaging.
 Remove the
 Focus on the optimal
secondary and
size and weight.
tertiary packaging
Guiding Packaging  Reusability of
layers.
Principles packaging materials.
 More use of recycled
 Focus on renewable
materials.
resources.
 Focus on the
 Increase the use of
reusable packages.
recycled
components.

pg. 70
Let us first understand what a brand is:
The American Marketing Association defines a brand as a “name, term, sign, symbol, design or a
combination of them, intended to identify the goods or services of one seller or group of sellers
and to differentiate them from those of competitors.”

Pepsodent and Colgate – Market Positioning

pg. 71
While Pepsodent germi-check has a market share of 6.4%, Colgate strong teeth has a market
share of 29.4%. The below discussion is of Pepsodent claiming in a television commercial that
Pepsodent has 130% more germ attack power than Colgate.

[sociallocker]
The interesting fact to be highlighted here is that Colgate strong teeth, the largest selling brand in
the Colgate portfolio is not the one which claims of any germ killing attribute; rather it is
Colgate Total which does so. But instead of attacking Colgate Total, Pepsodent chose to attack
Colgate strong teeth. Delhi High court declined to restrict consumer goods manufacturer
Hindustan Unilever Limited from advertising its toothpaste Pepsodent Germi-check, saying its
commercial does not “defame” the product of its competitor Colgate.

What is the point of creating and maintaining or defending a brand?


Brand not only allows the consumers to assign responsibility for performance and satisfaction to
the manufacturer or distributor or service provider but also helps decision making where they
need to choose as to which brand is satisfying their needs. Now talking of the hot topic of “Brand
Wars or Brand Destruction”, the following questions arise at the very sound of these two words-
“Is it an ethical practice to destroy a brand?”, “Is it negative marketing?”, “Is it positioning
your products in a way so as to harm other’s products or market share?”

pg. 72
Is Brand war right or wrong?
Well there are no absolutes like there are always two sides of a coin. The concept of brand war or
brand destruction also needs to be analyzed in two aspects. As it happens in any game, there is a
healthy spirit of competition and then there is this league of accomplishing it by whatever means
you possibly can. The same analogy applies to the concept of brand war wherein the motive can
be to destroy an established brand image by either providing better products or services in a
competitive approach in which case you engage your energies and strengths in building better
than what prevails or else take the shortcut approach. The shortcut approach which I choose to
mention separately is the concept of defaming a brand. A very evident example of this concept
which can be very well guessed upon is in the war between Pepsodent and Colgate as illustrated
in the beginning.

Is the concept of competitive advertisement trending again?


Yes the trend can be seen even in the soft drinks segment. There are numerous companies which
get into the practice of brand destruction in this negative way. In this global village, where you
have access to the world information by few clicks, one can consider the ill effects of brand war a
serious threat for any company- big or small.
Any challenger brand benefits by launching direct comparative ads against a well-established
market leader because of the shock value as well as the marketing war yielding brand eyeballs
and media space. However the risk factor involved is of the market leader reacting with full
might which might even destroy the challenger brand.

E-News Paper

NEW DELHI: The Delhi High Court today declined to restrain consumer goods manufacturer
Hindustan Uniliver Ltd from advertising its toothpaste Pepsodent Germicheck, saying its
commercial does not "denigrate" the product of its competitor ColgateNSE 0.42 %.

Dismissing Colgate Palmolive (India) Ltd's plea for interim injunction against HUL, Justice S
Muralidhar said, "The court is not persuaded to hold at this stage that the impugned TV

pg. 73
advertisement or the printed advertisement by HULNSE 0.32 % is disparaging of or denigrating
the product Colgate Strong Teeth of the plaintiffs (Colgate).

"The court is not satisfied that the plaintiff has made out a prima facie case for the grant of an ad-
interim injunction as prayed for. The application is dismissed," the court said.

On August 9, HUL had launched its Pepsodent Germicheck's advertisement which compared the
toothpaste's germ attack power with Colgate Strong Teeth claiming that Pepsodent Germicheck
has "130 per cent superior" germ attack power over Colgate Strong Teeth after four hours of
brushing.

Rejecting Colgate's argument that as per the commercial, Colgate Strong Teeth was "zero" when
compared to Pepsodent's 130 per cent, the judge said, "The court is unable to view it that way."

"It is arguable that the appearance of the two indices at the bottom of the left and right screens as
well as the 'Super' which shows that Colgate Strong Teeth is indexed 100 per cent and Pepsodent
Germi Check 130 per cent will enable a discerning viewer to appreciate the comparison in its
proper perspective," the court said.

"In any event, the claim of 130 per cent germicheck power appears more consistent with the
defendant (HUL) puffing up Pepsodent GSP to show that it is better than Colgate Strong Teeth. It
is difficult to view this as denigrating, slandering or rubbishing Colgate Strong Teeth," the court
order said.

pg. 74
Findings

1) Retailers Perception

The retailers have always given the feedback as consumers often buy the medicated tooth
pastes only after the recommendation of a dentist. Example Thermoseal. They cannot
convince the consumers to buy a different product even after it is associated with Colgate.
Colgate as a brand has created an image of a normal toothpaste and not as a medicated
toothpaste.

2) Brand awareness with respect to its competitors

Colgate Sensitive has low brand awareness as most of the customers purchase the tooth
paste on the recommendation of the dentists and currently not doing well in the market as
it is often seen as a normal toothpaste.

3) Distribution Channel

The product is dispatched from the company to Depot in Aurangabad from which it is
transferred to regional Stockiest which distribute them to retailers (Medical Stores) and
then it brought by consumers.

While working we made details of the feedback given to us by the retailers as well as the
distributors. This feedback helped us basically to understand what are the problems faced
by them and what are the actions which the organization could possibly take on them.
The problems faced by them are mentioned below:

During the survey it was found that still there are 80% people who have not tasted
Colgate sensitive.

pg. 75
Lake of Awareness in consumers. Many people are not known about Colgate
sensitive.
When we interviewed people then many of the people cannot recall Colgate
sensitive advertisement. It shows Lake of Advertisement or advertisement is not
timely given or advertisement is not given on right time.
There is lack of Sales Promotional Activities i.e. free sample.

4) Problems of Distributor:-

Salesmen are not readily available.

It’s very difficult for them to arrange a new salesman if old one leaves job.

Stocks are being purposely dumped by the organization.

Availability of stock.

5) Problems of Retailers:-

Margins provided to them are not sufficient.

Distributors most the times don’t provide service in time, in return they have to
face loses.

Distributors show their monopoly.


Schemes are rarely provided to them.
Replacements are hardly provided to them.

pg. 76
SUGGESTIONS

1. First and foremost Colgate should take proper action in order to improve service.

2. Company should launch Colgate sensitive toothpaste in new attractive packing to

change image of Colgate sensitive toothpaste in consumers mind


.
3. Company should introduce sales promotion schemes.

4. Company should launch Colgate sensitive toothpaste in new flavors.

5. Establish good relationship with dentist because the source of demand for medicated
paste is dentist.

6. Conduct the awareness campaign of Colgate sensitive.

7. Improve the distribution network.

8. Small pack of Colgate sensitive should be provided for rural market.

9. Adopt aggressive marketing strategy for Colgate sensitive brand.

10. Do more publicity of the brand.

11. Can come up with different flavors as per the need and demand of the customers.

pg. 77
LIMITATION

1. One of the most important things which came to my notice is that to some extent retailers
do control the amount of sales of the products of Colgate.
2. This matter should be taken seriously by the Colgate Company and should be worked
upon immediately.
3. The Pepsodent Company can appoint a separate sales executive for these customers.
4. The reason for this is some of these medicals face problems as the distributors in their
area create monopoly thus directly affecting the sales of the Pepsodent Company.
5. Working with the Colgate gave me good knowledge of the retail market and marketing of
F.M.C.G. products.

pg. 78
CONCLUSION

1. Since Colgate Company is well established in the market and its products have
high demand in the market taking an undue advantage of this the distributors
create monopoly in the market.
2. Considering this point the separation of Colgate Sensitive as a separate business
line in the market is really good as it breaks the monopoly of the well settled
distributors in the market and this has helped us to understand the actual
functioning of an organization as we were a part of it.
3. The retailers if given good range of margin will also help in increasing the sales of
the products to some extent as at a certain level the retailers do control the sales of
the products in the retail market.

The survey resulted into following conclusions:

1.
Colgate must come up with new promotional activities such that people become
aware about Colgate Sensitive.

2.
Quality is the dominating aspect which influences consumer to purchase Colgate
product, but prompt availability of other brands and aggressive promotional
activities by others influences the consumer towards them and also leads to
increase sales.

3.
In comparison to Colgate sensitive, the other players such as thermo seal,
Sensodent, oral-B provides a better availability and give competition to the hilt.
People are mostly satisfied with the overall quality of Colgate sensitive brush but
for the existence in the medicated toothpaste market Colgate has to use aggressive
selling techniques.

pg. 79
BIBLIOGRAPHY

http.www.google.com

http.www.wekipedia.com

htttp.www.colgate.co.in

pg. 80

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