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A
PROJECT REPORT
ON
MARKETING STRATEGIES
OF
COLGATE TOOTHPASTE
IN INDIAIn the partial fulfilment of degree of bachelor of
business administration.
Submitted to: - submitted by:-
Mr. Ashish saxena gagandeep kaur
1
DECLARATION
This is to declare that Ms. GAGANDEEP KAUR of BBA VIth A in
our institute has successfully completed her winter training project
entitled “MARKETING STRATEGIES OF COLGATE
TOOTHPASTE IN INDIA” for the partial fulfilment of degree of
BACHELOR OF BUSINESS ADMINISTRATION.
(H.O.D- BBA) PROJECT GUIDE
Dr. S.M MEHDI Mr. ASHISH SAXENA
2
ACKNOWLEDGEMENT
“It is not possible to prepare a project report without the assistance
encouragement of other people. This one is certainly no exception.”
On the very outset of this report, I gagandeep kaur would like to
extend my sincere & heartfelt obligation towards all the personages
who have helped me in this would not have made headway in the
project. I am extremely thankful and pay my gratitude to my Mr.
Ashish Saxena for his valuable guidance and support on completion
of this project in its present. I extend my gratitude to INVERTIS
UNIVERSITY for giving me this opportunity.
At last but not least gratitude goes to all of my friends who directly or
indirectly helped me to complete this project report.
3
CONTENTS
S.NO. TOPIC NAME PAGE NO.1. INTRODUCTION 6-132. COMPANY PROFILE 14-153. COMPANY HISTORY 16-274. PRODUCT PROFILE 28-335. FOUR P’S OF MARKETING 34-376. SWOT ANALYSIS 38-497. STP 40-428. COMPETITIVE ANALYSIS 43-459. LITERATURE REVIEW 4610. OBJECTIVES 47
11. RESEARCH METHODOLOGY 48-54
12. FINDINGS 55
13. SUGESSTION 56
14. CONCLUSION 57
15. BIBLIOGRAPHY 58
4
INTRODUCTION
Colgate is an oral hygiene product line of toothpaste, toothbrushes,
mouthwashes, and dental floss. Colgate was the first toothpaste in a
collapsible tube, introduced in 1896, when it had previously been sold
in glass jars since 1873.Present in India since the 1930s, Colgate is
almost synonymous with toothpaste in the Indian market. It is
accepted well both in the rural and urban areas.
In 1992, Colgate established its first factory in China to produce
toothpaste for the domestic market, and by 1999 became the highest
selling brand in that country. Colgate products are marketed in China
using the transcription 高露洁 which is pronounced gaolujie, similar
to Colgate, and has a positive meaning of high-quality cleaning gel.
As of 2002, Colgate occupied 20% of the market share for toothpastes
in China.[3] As of 2009, Colgate and its four core businesses including
Oral Care, Personal Care, Home Care and Pet Nutrition surpassed
sales of over $15, selling in over 200 countries worldwide.
5
Colgate Palmolive is a well reputed company with a large series of its
well-known products having different varieties in terms of
flavor.colgate is one of the most prominent products of Colgate
Palmolive.
Here in my project I am going to introduce a Colgate toothpaste
product line offering by Colgate Palmolive India limited.
My aim is to study how Colgate Palmolive have introduced the
innovations in the products line of Colgate toothpaste and reason of
bringing such innovations. There are many toothpaste under Colgate
toothpaste product line like Colgate dental cream, Colgate total,
Colgate strong teeth, Colgate sensitive, Colgate total, Colgate
sensitive pro relief, Colgate visible white, Colgate max- fresh,
Colgate kids toothpaste, Colgate herbal, etc.
The company’s competitive edge is the best quality gums cooling
paste with new pro arginine technology which contains potassium
nitrate, arginine. This will distinguish Colgate products from their
competitors. Their competitors include pepsodent, close-up,
sensodyne, dabur red, babool.
6
PRODUCT PROFILE OF COLGATE TOOTHPASTE:-
1. COLGATE STRONG TEETH:-
Colgate dental cream offers all around cavity protection, even where a
toothpaste cannot reach. It repairs early cavity spots. Its great mint
taste freshens breath. It protects against root caries. It cleans and make
teeth whiter.
2. COLGATE TOTAL 12:-
Colgate Total 12 Toothpaste is an effective decay preventive
dentifrice and helps prevent and reduce gingivitis when used as
directed in a conscientiously applied programme of oral hygiene and
7
regular professional care. It also helps reduce the formation of plaque
and tartar above the gum line.
Colgate Total 12 is approved by the IDA to aid in the prevention of
cavities, plague and gingivitis. It has not been approved to treat
periodontitis. Most published research to date shows that there is a
possible association between periodontitis and systemic health. A
causal relationship between the two has not yet been clearly
established.
3. COLGATE VISIBLE WHITE:-
Brand ambassador: - Sonam Kapoor
Colgate visible white provides one shade whiter teeth in one week. It
takes the rigid kind of effort to get a beautiful smile. Introducing
Colgate visible white with whitening accelerators that makes your
teeth one shade whiter in just one week, so that you look best always.
And dazzle the world with your beautiful smile.
8
4. COLGATE SENSITIVE:-
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.
It fights pain due to sweet/sour/hot/cold foods by desensitising nerves.
Helps maintain the natural whiteness of teeth’s.
5. COLGATE SENSITIVE PRO RELIEF:-
9
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.
It provides instant and long lasting relief.
6. COLGATE MAX FRESH:-
Brand ambassador:- Shahrukh khan
Colgate max fresh gel is infused with cooling crystals (in strips),
which dissolve completely as you brush for a whole new dimension of
freshness that you can see. It contains menthol for fresh breath, whiter
teeth, fights cavity.
Colgate max fresh is also available in three flavours:
i) COLGATE MAXFRESH PEPPERMINT ICE :-
It has cooling crystals that dissolve in your mouth setting off an icy
wave of minty coolness.
ii) COLGATE MAX FRESH ICY BLAST MINT :-
It has strips of cooling crystals which dissolve in your mouth and give
an explosion of icy freshness.
iii) COLGATE MAX FRESH CITRUS BLAST:-
10
It has strips of cooling crystals that dissolve in your mouth to give a
burst of freshness.
7. COLGATE TOOTHPASTE FOR KIDS:-
Fluoride toothpaste for kids comes in two exciting flavours with your
favourite cartoon characters:-
Strawberry flavour (Barbie)
Bubble fruit flavour (Spiderman)
It helps protect against cavities, it contains fluoride for cavity
protection, makes fighting cavities for fun, sparkling colourful gel,
freshens gel.
8. COLGATE CIBACA:-
11
It is a family protection toothpaste developed using Colgate’s
international expertise in oral care, unique formula protects your teeth
from decay, refreshing minty flavour makes your breath super fresh.
9. COLGATE ACTIVE SALT:-
Brand ambassador: - Kareena Kapoor.
Salt is well known for its oral care benefits. Colgate’s active salts
unique formula fights germs and makes your gums healthy and teeth
strong, and gives refreshing minty taste.
1.
12
COMPETITORS OF COLGATE TOOTHPASTE:-
1. HUL (22 %)
a. PEPSODENT (09 %)
b. CLOSE UP (18)
2. GLAXOSMITH
a. BABOOL(0.5 % )
b. SENSODYNE (27 %)
3. DABUR (11 %)
a. DABUR RED (11%)
13
COMPANY PROFILE
COMPANY NAME: - COLGATE PALMOLIVE LTD.
CHAIRMAN:-MV DEORAS
CFO: - G NTUNZI
MANAGING DIRECTOR: - P PARAMESWARAN
SLOGAN/TAGLINE: - Colgate world of care.
USP: - Colgate toothpaste brands are the most respected brands in the
world.
ESTABLISHMENT DATE: - 1937
HEADQUARTERS: - MUMBAI
MARKET SHARE: - 65.31 %
ANNUAL INCOME:-
2011:- 2351 crore
2012:- 2786.58 crore
2013:- 3191.53 crore
14
GLOBAL VISION: - Be the innovative leader with our brands every
day in every home.
GLOBAL MISSION: - Achieve market dominance in oral care
through aggressive volume growth, and establish a significant
presence in personal care.
MARKET LEADER IN ORAL CARE.
Colgate-Palmolive (India) Limited is engaged in the personal care
business, which includes oral care. The oral care products
manufactured by the Company include toothpastes, toothpowder,
mouthwash, toothbrushes and whitening products. The personal care
products manufactured by the Company include body wash, liquid
hand wash, shave preps, skin care and hair care. The household care
product manufactured by the Company includes surface care. The
other products and treatments provided by the Company.
Colgate Palmolive is one of the leading companies in India in the
FMCG industry segment. Colgate Palmolive is the subsidiary of
Colgate Palmolive ltd. Network which is parent company.
Colgate Palmolive is the foreign based public limited company. The
company is in business of consumer products for more than 100
years. In India it is the numerouno brand.
Today for millions of Indians, toothpaste means Colgate. Colgate is
one of the most widely distributed brands, with the presence in 4.85
million retail outlets out of total 5.72 million in the country. It is the
15
most used brand as well, with over 66 million mothers and over 100
million families preferring Colgate above all else.
COMPANY HISTORY:-
Colgate-Palmolive (India) Ltd is engaged in the personal care
business, which includes oral care. The oral care products
manufactured by the company include toothpastes, toothbrushes,
toothpowder, whitening products and mouthwash. The personal care
products manufactured by the company include body wash, liquid
hand wash, shave preps, skin care and hair care. The household care
product manufactured by the company includes surface care. The
other products and treatments provided by the company include
gingivitis treatment, sensitivity treatment, tooth whitening, fluoride
therapy, mouth ulcer treatment and specialty cleaning. Colgate-
Palmolive Company is the company's ultimate holding company.
Colgate-Palmolive (India) Ltd was incorporated in the year 1937. In
the year 1983, the company introduced their successful product
Colgate Plus toothbrush in the market. In the year 1988, CPIL
received a licence for producing 24,000 tonnes per annum of fatty
acids. They also registered with DGTD for production of 30,000
tonnes of toilet soap per annum. In June 1988, the company
established a wholly owned subsidiary at Hatband in Nepal to
16
manufacture the toothpaste and tooth powder initially. In the year
1991, the company launched new Colgate Gel Toothpaste, Palmolive
Extra Care and new Palmolive soap. They also re-launched a high
quality Colgate Plus and other toothbrushes. In the year 1994, the
company acquired the oral hygiene business of Hindustan Ciba-Geigy
Ltd. In the year 1996, the company introduced the Colgate fresh stripe
toothpaste and Palmolive naturals soap in personal care products
segments, Keratin Treatment Shampoo and Palmolive optima in Hair
care segment. Also, they established a modern facility at Aurangabad
to manufacture Calcium phosphate, a key ingredient for toothpaste. In
the year 1998, the company launched Colgate Double Protection
toothpaste for the entire family. They launched the ad campaign for
their new product Colgate Double Protection toothpaste in
competition with rival brand Pepsodent from the Hindustan Lever
stable. In the year 1999, the company launched three new products,
such as Colgate Double Protection, Colgate Total and Colgate
Sensation. They started a new research and development centre, a
manufacturing facility in Nepal. Also, they completed a dicalcium
phosphate facility in Aurangabad. In the year 2000, the company
introduced two new variants to their Palmolive Naturals soap range
and revitalised their sandalwood soap. Also, they launched two new
variants in their Palmolive Naturals range of beauty soap lime and
milk cream. The company re-launched their Colgate Gel as Colgate
Fresh Energy Gel. During the year, the company entered into a
strategic tie-up with Calcutta-based First-net Solutions Ltd for joint
17
sales promotion of Colgate Fresh Energy Gel toothpaste on the Web
portal called www.yantram.com. They made a foray into a new
category of herbal care with the launch of Colgate Herbal touted to be
a vehicle for increasing the company's rural market penetration over a
period of time. During the year 2000-01, the company launched
Colgate Herbal Toothpaste, Economy Toothpaste, Colgate Zig Zag
Toothbrush, Colgate Navigator Toothbrush and Transparent Skin
Care Soap in the year market. They came out with a mega promotion,
'Colgate ke andar kya hai', which was one of the key drivers in
strengthening the consumer bond with the Company's oral care and
personal care brands.
During the year 2001-02, the company re-launched Colgate Fresh
Energy Gel with a refreshing flavour in a unique first-of-its king
transparent tube and economy toothpaste. During the year 2002-03,
the company re-launched their flagship brand, Colgate Dental Cream.
Also, they re-launched their premium toothpaste, Colgate Total, in a
green and white striped paste format. They launched Colgate
Navigator Plus toothbrush to deliver excellent cleaning with a high
degree of comfort and control. Also, they re-launched Colgate Super
Flexible with the consumer promise of '3-way action for a
comfortable clean'. During the year, the company divested their entire
shareholding in Camelot Investments Company Ltd (Camelot), a
wholly owned subsidiary of the company. During the year 2003-04,
the company launched Colgate Herbal White striped toothpaste with
lemon extracts, eucalyptus and mint. They launched Colgate
18
Navigator plus Toothbrush in the market. During the year 2004-05,
the company established a state-of-the-art additional toothpaste
manufacturing facility at Baddi, Himachal Pradesh to meet the
growing market demand. The first phase of the facility became
operational in April, 2005 during the year 2005-06, the company
established Oral Care Category Innovation Centre works closely with
the Technology Centres in India and U.S.A. to shape ideas into
products that meet today's consumer needs. They launched Colgate
Advanced Whitening, Colgate Active Salt, Colgate MaxFresh Gel and
Colgate Super Flexible Toothbrush with Unique Tongue Cleaning
Feature. During the year 2006-07, Sewri manufacturing facility
discontinued its operations with effect from September 27, 2006.
During the year 2007-08, the company acquired 75% shareholdings in
three companies, namely, Advanced Oral Care Products Pvt Ltd,
Professional Oral Care Products Pvt Ltd and SS Oral Hygiene
Products Pvt Ltd and thus they became subsidiaries of the company
with effect from November 1, 2007. In April 2008, the company
acquired 75% shareholding in CC Health Care Products Pvt Ltd at
Hyderabad for a total consideration of Rs 1,93.83 lakh.
Thus, the company became a subsidiary company. During the year
2008-09, the company acquired the remaining 25% shareholding in
SS Oral Hygiene Products Pvt Ltd at a total consideration of Rs 77.70
lakh. Also, as per the scheme of amalgamation, SS Oral Hygiene
Products Pvt Ltd was amalgamated with the company with effect
from March 26, 2009. During the year 2009-10, the company
19
acquired the remaining 25% shareholdings in Professional Oral Care
Products Pvt Ltd and CC Health Care Products Pvt Ltd at a total
consideration of Rs 2.40 crore and Rs 69.07 lakh respectively. Also,
as per the scheme of amalgamation, Professional Oral Care Products
Pvt Ltd and CC Health Care Products Pvt Ltd were amalgamated with
the company with effect from April 1, 2009. In June 2011, Essel
Propack Ltd signed a long-term agreement with the company to set up
a plant in Goa at an investment of Rs 400 million. The company has
decided to set up a greenfield facility at an upcoming industrial estate
in Sanand in Gujarat with an estimated investment of Rs 200 crore.
The company has been allotted 100,000 sq metres of land at the
upcoming GIDC industrial estate in Bol village in Sanand-II by the
Government.
20
TIME LINE OF COLGATE IN INDIA:-
1937:- Colgate dental cream was introduced.
1949:- Colgate toothpowder and toothbrushes were launched.
1950:- Palmolive shave cream was introduced.
1951:- halo shampoo was launched.
1952:- charms cream was launched.
1967:- manufacturing operations were commenced at sari, Mumbai.
1972:- Colgate introduced a truly refreshing product- Palmolive after
shave lotion.
1976:- Colgate launched a ‘young India program’... right smiles
becomes brighter.
1978:- the Indian public were offered 60 % equity in the company,
with shares being listed on Bombay stock exchange.
1978:- Colgate Palmolive became a blue chip company on the Indian
bourses.
1988:- Colgate relocated its toothpowder plant to wale, Aurangabad.
1989:- Colgate invests in a state-of-the-art manufacturing plant for
fatty acids and soaps at the same location.
1989:- Palmolive extra care soap launched.
1990:- Colgate gel was launched and brighter smiles fallowed.
21
1990:- Palmolive shave foam was also launched.
1992:- Colgate was rated India’s No. 1 brand across all categories.
1993:- Colgate total- the most technologically advanced toothpaste
was launched.
1993:- Colgate Palmolive U.S.A reaffirms its commitment, by raising
its equity from 40% to 51 %.
1993:- Colgate was once again rated India’s No. 1 brand across all
categories.
1994:-Colgate calciguard was launched.
1994:- once again the annual brand power survey ranked Colgate No.
1across all categories for the 3rd year in succession.
1995:- Colgate ranked India’s No. 1 brand across all categories for the
4th year.
1996:- Colgate oral pharmaceutical products were launched in the
Asia-Pacific region.
1996:- An ISO 9002 certification was awarded to Aurangabad fatty
acid, toilet soap and toothpowder plant.
1996:- Colgate was ranked India’s No. 1 brand across all categories
for the 5th success year.
1996:- Colgate Palmolive entered a new category- household surface
care, with the launch of Axiom dish washing paste.
22
1997:- Colgate calciguard and Colgate plus toothbrushes, became the
first to receive the India’s dental association’s seal of acceptance.
1998:- Colgate ranked India’s No. 1 brand across all categories (for
6th time)
1999:- Colgate was rated ‘India’s premier brand’ by A & M
magazine’s annual survey of India’s top brands.
1999:- this was a decade in which Colgate Palmolive introduced the
best of its products in India.
1999:- the Indian consumers were offered top-of-the-line products.
2000:- International Palmolive shave gel & shave foam launched with
two variants, new Palmolive shave cream 2-in-1 also launched.
2000:- launch of Colgate navigator toothbrush, new superior- Colgate
zig zag toothbrush, Colgate herbal toothpaste.
2000:- new Palmolive charms launched.
2001:- introduction of toll free consumer helpline for easy access to
the company.
2001:- Website launched with the information on the company & its
products.
2002:- Voted brand No. 1 in A & M‘s annual survey of India’s top
brands conducted by Taylor nelson sores-MODE.
23
2002:- ranked as ‘best employers in India’ in the survey conducted by
BT-Hewitt.
2003:- introduction of Colgate herbal white & Colgate simply white.
Relaunch of Colgate dental cream & Colgate fresh energy gel.
2003:- Colgate kid’s toothpaste added to the oral care portfolio.
2003:- ranked India’s No. 1 ‘most trusted brand’, in a survey by brand
equity- A C Nielsen ORG-MARG.
2004:- ranked as India’s most trusted brand for the 2nd consecutive
years in the survey by brand equity- A C Nielsen ORG-MARG.
2004:- for the first time the oral care month was conducted in
association with the Indian dental association (IDA), to establish and
promote the importance of good oral hygiene and regular dental
check-ups.
2005:- Colgate inaugurated a toothpaste manufacturing facility at
Baddi in himachal pradesh.
2005:- partnered with dentist for the 2nd consecutive year under the
banner of the oral health month.
2005:- addressed consumer needs with innovative products.
2005:- A Hat-trick as India’s No. 1 most trusted brand in brand
equity-A C Nielsen ORG-MARG.
24
2006:- Colgate initiated an oral care health training camp for
anganwadi workers.
2006:- Colgate and the Indian dental association organised the 3rd
edition of oral health month.
2006:- Colgate maxfresh gel with cooling crystals launched to give
consumers a new whole dimension of freshness. Colgate 360
toothbrush enters the market.
2006:- Colgate establishes the oral care category innovation centre in
India.
2006:- Palmolive aroma shower gel portfolio expanded to include
‘vitality’.
2007:- Colgate maxfresh introduces citrus blast to its range.
2007:- Palmolive adds family health and milk and honey to the liquid
hand wash range.
2007:- Colgate introduces an exclusive Palmolive thermal spa body
wash.
2007:- Colgate celebrates being India’s No. 1 most trusted brand in
the brand equity-A C Nielsen annual survey for the 4th consecutive
year.
2007:- a special 70th anniversary dividend for the financial year 2006-
2007 at rs 2 /- per share was paid to Colgate Palmolive, India
shareholders.
25
2008:- Colgate created Guinness world record with the total number
of 177,033 people brushing their teeth simultaneously at 380 locations
across India, in one day and at one time.
2008:- the fifth edition of the annual national awareness campaign,
oral health month was successfully completed.
2009:- Colgate organised oral health month campaign spreading over
two months, September & October 2009.
2009:- CPIL was adjudged as best value creator in 2009 outlook
money NDTV profit awards- the country’s most prestigious awards.
2009:- launched Colgate sensitive toothpaste.
2009:- launched Colgate extra clean gum care toothbrush.
2009:- launched Colgate kids 2+ toothbrush.
2010:- oral health month, the awareness generation program was
successfully conducted over September and October.
2010:- Colgate and IDA achieved another Guinness world record by
providing dental check-ups to 66,322 children across multiple
locations involving 33 schools in five cities across world.
2010:- Colgate maintained its status of the most trusted FMCG brand
position in the tenth year of the brand equity survey. Was presented
“hall of fame” for being in the top 3 consistently for 10 years.
2010:- introduced Colgate max white toothpaste
26
2010:- introduced new Colgate total variant, Colgate total
professional.
2010:- launched Colgate 360 anti-flex toothbrush.
2010:- Colgate kids 0-2 toothbrush launched.
2011:- launches Colgate 360 surrounds toothbrush.
2011:- introduces Colgate sensitive pro-relief toothpaste & Colgate
360 sensitive pro-relief toothbrush.
2011:- Colgate oral health month, the annual national awareness
program, with the participation of 22,146 dentist was successfully
conducted.
2011:- Colgate in India’s No. 1 most trusted brand in brand equity
most trusted brands survey 2011.
2011:- Guinness world record was achieved for maximum number of
people rinsing with the mouthwash at the same time.
2012:- Colgate added fresh tea variant to the Colgate Plax mouth
washes range.
2012:- two new exotic Palmolive body wash variants, thermal spa
skin renewal and aroma sensual were introduced.
2012:- Baddi plant achieved the prestigious United States
environmental protection agency (USEPA) ENERGY STAR
challenge for industry sites.
27
2012:- Colgate Palmolive was ranked the 3rd most admired company
in India, by the global business magazine fortune and management
consultancy hay group.
28
PRODUCT PROFILE OF COLGATE PALMOLIVE:-
COMPANY PRODUTS:-
a) ORAL CARE:-
1. Tooth paste:
Colgate dental cream
Colgate max fresh
Colgate active salt
Colgate total 12
Colgate sensitive
Colgate kids
Colgate advanced white
Colgate cibaca
Colgate fresh energy gel
2. Tooth brushes :
29
Colgate massager
Colgate navigator plus
Colgate extra clean
Colgate extra clean gum care
Colgate sensitive tooth brush
Colgate 360 toothbrush
Colgate zig zag
3. Tooth powder:
Colgate super Rakshak
4. Whitening products:
Colgate advanced whitening
5. Mouth wash:
Colgate Plax
b) PERSONAL CARE:-
1. Body wash:
Palmolive aroma body wash relaxing
Palmolive thermal spa body wash firming
Palmolive aroma body wash vitality
Palmolive thermal spa body wash massage
Palmolive natural moisturizing body wash milk & almond
Palmolive naturals moisturizing body wash milk & honey.
2) Liquid hand wash:
30
Palmolive naturals milk & honey hand wash
Palmolive aroma liquid hand wash relaxing
Palmolive natural’s liquid hand wash family health.
3) Hair care:
Palmolive halo shampoo
4) Skin care:
Palmolive charmis cream
5) Shave preps:
Shave creams
c) HOME CARE:-
AXION- dish washing paste
d) PROFESSIONAL ORAL CARE:-
1. Gingivitis treatment
Colgate periogard
2. Sensitivity treatment
Colgate sensitive
Colgate gel kam
3. Mouth ulcer treatment:
Oragard-B
4. Speciality cleaning
Speciality cleaning
31
PRICE OF COLGATE TOOTH PASTES:-
Sr.
No.
Product Amount Price
(MRP)1. Colgate strong teeth 50 gm 162. Colgate strong teeth 100 gm 393. Colgate strong teeth 150 gm 554. Colgate strong teeth 200 gm 755. Colgate total 12 70 gm 576. Colgate total 12 15 gm 927. Colgate visible white 100 gm 84
8. Colgate visible white 200 gm 150
9. Colgate sensitive 40 gm 49
10. Colgate sensitive 80 gm 9011. Colgate sensitive pro relief 70 gm 9512. Colgate max fresh blue gel 40gm 1713. Colgate max fresh blue gel 80gm 4414. Colgate max fresh blue gel 150gm 8215. Colgate max fresh red gel 28 gm 1016. Colgate kids protection 80gm 7417. Colgate cibaca 35 1018. Colgate cibaca 90 2519. Colgate cibaca 175 4020. Colgate active salt 50gm 1721. Colgate active salt 100gm 45
32
22. Colgate active salt 200gm 80
MARKETING STRATEGIES
33
4 P’s OF MARKETING
Product
Price
Place
Promotion
PRODUCT STRATEGY
Colgate reorganised its portfolio Introduced a wide range of products
but with very clear positioning. In oral care, Colgate identified four
categories – premium, freshness, popular and economy. Focused on
only those products within this category which could give results.
Introduced new products in whichever segment the need gap was felt.
Wherever sluggishness was felt, a relaunch took place to reposition
the product over the product life cycle. They should come up with
sachets of Colgate toothpowder and toothpaste and position towards
rural population who buys in small lots. The product should be unique
and different from all similar products that are already available in the
market. The strategy is to differentiate the product’s design and
packaging, which in return will cause the toothbrushes to stand out.
TO ADHERE:-
To adhere Colgate pulled out 4 variants Colgate double protection
Calcigaurd Fresh mint Fresh strips And Launched Colgate Herbal – 34
Targeted at semi-urban, rural areas – priced cheaper than Colgate
dental cream In other segments Battery operated Colgate Act brush
Palmolive Naturals Transparent Soap in the premium toilet soap
segment Palmolive range of shaving products was expanded Charmin
Skin Cream with vitamins was repositioned Colgate Cibaca Top And
Revitalised – Colgate Dental Cream.
PLACE STRATEGY
Place represents the location where a product can be purchased. The
most important part of marketing is how product will get from seller
to the buyer. Many products go through the channel of distribution,
which involves manufacturing, wholesaler, retailer, and consumer.
They would try to increase product penetration to rural population.
They would try to increase the wholesalers to smaller towns. They
would track the distribution path so that they are covering all the
village area around the towns. Colgate Palmolive makes its best to
enhance their availability in different kinds of retail outlets and in as
many geographical areas as possible.
PROMOTION STRATEGY
Product promotion is communication spread through advertising,
publicity and sales promotion. Promotion involves all the
35
communication that the marketers use in market. Colgate Palmolive
should advertise their product by using commercial, magazines ads,
and the radios, ads that are to be placed in dentist offices, billboards,
and sides of buses. Advertising is done to promote new products,
remind consumers of existing products, and also promote the image of
the company at hand. Colgate should offer special coupon and rebates
through their other products, and also food products.
Boarding the land undertook a series of communication initiatives
Colgate Shoppe – where selected retail outlets in key cities depict a
clear dominance of Colgate-Palmolive Hero no. 1 - wherein stockists
salesmen are motivated with recognition and reward for outstanding
achievements Dil Se – which reward wholesalers for their loyalty and
consistency in marketing the company’s products. nurturing mutually
beneficial relationships with its various trade partners For Consumers
‘ Colgate Ke Andar Kya Hai ’ for rewarding consumer loyalty. Rural
Promotion the school Dental Health education program – The Young
India Bright Smiles, Bright Futures Program in collaboration with the
Indian Dental Association. Introduction of a Toll Free Consumer
Helpline for easy access to the company. They position Colgate dental
white cream and toothpowder towards rural rich segment. For rural
consuming class they are endorsing cibaca toothpaste. Advertising
through T.V media, print media. FM radio for urban population &
MW and SW radio for rural population. Hoarding on national
highway.
36
PRICE STRATEGY
The price of a product says something about the quality. Even though
the quality of the precision toothbrushes, the price of the toothbrush
will be determined by the prices of the other toothbrushes already in
the market. This pricing strategy is a result of positioning the
toothbrush as a main stream product rather than a niche product.
Price Strategy introduced a flanking pricing strategy by launch of
brands in all price segments. Backward integrated. It has
manufacturing facilities for flavour and other ingredients, which
yields significant cost savings. It has set up a world class facility for
manufacture of Di-Calcium Phosphate, a key ingredient in toothpaste.
It has a World Class Technology and Research Centre. The company
has implemented SAP to enhance operational and supply management
effectiveness. The company has set up a wholly owned subsidiary in
Nepal for manufacture of toothpaste and toothpowder. Besides,
Colgate Palmolive has adopted a Global Raw Materials/Packaging
Materials Suppliers System. At the same time, while inventory and
debtor days were maintained at levels 28 days and 14 days
respectively, creditor days registered a sharp increase from 82 days to
110 days. Operations therefore generated cash of Rs.2 bn. Overhead
expenses reduction exercise.
SWOT ANALYSIS
37
Swot is an acronym for the internal strength and weakness of a firm
and the environmental opportunities and threats facing the firm. It is
the widely used technique through which managers create a quick
overview of company’s strategic situation. The technique is based on
the assumption that an effective strategy derives from a sound “fit”
between a firm’s internal resources (strength and weakness) and its
external situation (opportunities and threats).
INTERNAL FACTORS:-
STRENGH
1. It is one of the biggest brands in the personal care consumer
products industry
2. It has over 38000 employees globally
3. One of the market leaders globally with excellent R&D
4. Colgate focuses on four core businesses: Oral Care, Personal Care,
Home Care and Pet Nutrition
5. Colgate has excellent reach and distribution and its products are
available in over 200 countries
6. Excellent advertising and brand visibility of products with a strong
customer loyalty for brands.
WEAKNESS:-
38
1. Market share is limited due to presence of other strong FMCG
brands
2. Fake brands are supplied under their brand names
EXTERNAL FACTORS:-
OPPORTUNITY:-
1. Tap rural markets and increase penetration in urban areas
2.Mergers and acquisitions to strengthen the brand
3.Increasing purchasing power of people thereby increasing demand
THREAT:-
1. Intense and increasing competition amongst other FMCG
companies
2.FDI in retail thereby allowing international brands
3. Competition from unbranded and local products.
STP ANALYSIS
39
(1) SEGMENTATION :-
Colgate’s market segmentation is very broad because all their
products are of need to most people so those people share a
similar interest in products need.
Colgate uses a segmentation basis by knowing that certain groups
of people need Colgate toothpaste for specific similar reason like
yellow teeth, sensitive teeth, or just teeth with cavities.
Colgate also uses the family life cycle because they make
toothpaste that could be used for grownups and children’s.
Also, toothbrushes are made to attract young children with
cartoon characters and different tastes and are less strong so that it
would not damage their gums.
(2) TARGETING:-
40
Max fresh:-
Colgate targeted youth with the introduction of this toothpaste,
as this helps in refreshes breath.
Active salt :-
Elder people are targeted in this segment as it makes teeth
stronger and provides protection from cavities.
Colgate total :-
Colgate total contains the anti-microbial ingredient triclosan,
which reduces the number of bacteria that causes gingivitis,
cavities and halitosis. Basically it’s for kids but mothers are
targeted as they are very concerned about their kids. This
toothpaste safeguards teeth for 12 hours.
Colgate sensitive:-
People who have sensitive teeth are targeted in this segment
who have problem in their gums.
Kids toothpaste:-
Often small children’s don’t like to brush teeth, so for them this
toothpaste was launched. Colgate has focused on taste aspect to
encourage kids to brush teeth.
Colgate whitening:-
41
A whitening toothpaste that is “clinically proven to whiten in 14
days”. Its whitening ingredient is hydrogen peroxide, which
gradually bleaches the teeth focus is given on group of
customers in this segment those who are already suffering from
plaque in their teeth.
(3) POSITIONING:-
Colgate dental creams positions itself as a toothpaste that has a
necessary calcium and minerals to provide decay protection, strong
teeth, germ protection and fresher breath.
Colgate positioned several toothpaste so that people would like the
products more like adding the different styles or taste to the
toothpaste.
Colgate repositioned their products because with the way they
market and promote their products, consumers know that these
products are way better than other brands and competition that is
out there.
Colgate total 12 have been projected as the ‘most advanced
toothpaste’ that provides 12 hr germ protection even after eating
and drinking by building a protective shield around the teeth.
Colgate kid’s toothpaste tries to position itself based on emotions
which appears in its tagline “makes fighting cavities fun”.
42
COMPETITORS ANALYSIS
One of the best sources of information is to investigate competing
businesses. These businesses can provide a wealth of the information
that can be used in evaluating the potential for your business.
By evaluating how the 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 the metro Politian
newspaper, they are most likely targeting males.
In addition to collecting information on the markets they are targeting,
a competitor’s analysis can reveal packaging preferences, pricing
strategies, distribution channels and marketing strategies. Simply
evaluate the product and services your competitor is providing.
43
PRICE OF COMPETITORS OF COLGATE:-
Sr.no. PRODUCT Amount Price1. Pepsodent (centre fresh) 80 412. Pepsodent (centre fresh) 150 823. Pepsodent expert protection (sensitive) 40 294. Pepsodent expert protection (sensitive) 80 805. Pepsodent germi check 2 in 1 80 416. Pepsodent germi check 2 in 1 150 787. Pepsodent germi check expert
protection whitening
80 58
8. Pepsodent germi check expert
protection whitening
150 95
9. Pepsodent kids germi check(strawberry) 80gm 6010. Pepsodent kids germi check(fruity) 80gm 4911. Close up fire freeze 80gm 5212. Close up fire freeze 150 10013. Close up deep action red hot 40 1714. Close up deep action red hot 80 4115. Close up deep action red hot 150 8016. Close up deep action pepriment splash 150 8617. Babool 360gm 7618. Sensodyne fresh gel 40gm 5019. Sensodyne fresh gel 80gm 9020. Sensodyne fresh gel 150gm 16021. Sensodyne rapid relief 40gm 6022. Sensodyne rapid relief 80gm 120
44
23. Sensodyne fresh mint 80gm 9024. Sensodyne repair and protect 40gm 8025. Dabur red 50gm 1726. Dabur red 100gm 4027. Dabur red 200gm 7528. Dabur red family value pack 300gm 115
LITERATURE REVIEW
45
Market is likely to see a few key launches in the toothpaste segment
this year. Procter & Gamble (P&G) is set to throw another gauntlet at
Colgate-Palmolive and Hindustan Unilever (HUL). The company
plans to launch its global toothpaste brand Crest at an aggressive price
point this year. As and when P&G introduces Crest in India, it will
entail price competition as well as heavy brand investment in the
category from all the players, in our view. It will put the market share
and margins of Colgate under pressure. Colgate will need to sustain
its higher-than-industry ad spends to protect its turf. The consumer
products arm of Johnson & Johnson (J&J) may launch toothpaste
under the Listerine umbrella, while GlaxoSmithKline (GSK)
Consumer Healthcare may prelaunch its Aquafresh brand, phased out
a few years earlier. GSK had launched Sensodyne toothpaste last
year. A mass-market toothpaste product is what is missing at the
moment, which GSK will plug with the re launch of Aquafresh.
OBJECTIVES
46
To study the product line of Colgate toothpaste offered by
Colgate Palmolive India limited.
To know the innovations in the Colgate toothpaste products
Of the Colgate Palmolive India limited.
To analyse the competitors in market ( pepsodent,babool,
Sensodyne, closeup)
RESEARCH METHODOLOGY47
RESEARCH METHODOLOGY
Marketing research means the systematic gathering, recording,
analysing of data about problems relating to the marketing of goods
and services” Marketing research has proved an essential tool to make
all the need of marketing management. Marketing research therefore
is the scientific process of gathering and analysing of marketing
information to meet the needs of marketing management. But
gathering of observation is must be systematic. The systematic
Conduct of research requires:
1) Orderliness, in which the measurements are accurate.
2) Impartiality in analysis and interpretation. All of research can be
categorized into basic and applied.
BASIC RESEARCH: - Basic Research is that intended to
expand the body of knowledge for the use of others.
APPLIED RESEARCH: - Applied Research is one, which is
carried out to find the solution for a particular problem or for
guiding a specific decision. It is usually private in nature.
RESEARCH DESIGN:
48
Research design indicates the methods and procedure of conducting re
searchstudy. Research design can be done in following three types:-
1. Exploratory Research:-
Exploratory research focuses on the discovery of new ideas and is
generally based on secondary data.
2. Descriptive Research:-
Descriptive research is undertaken when the researcher want to
Know the characteristics of certain groups.
3. Causal or Experimental Researches:-
An experimental research is undertaken to identify causes and effect
relationship between two variables.
The Research Design is: Descriptive Research Design
RESEARCH DESIGN FOLLOWED:-
49
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 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 research should be defined.
The focus of descriptive research is to provide an accurate
descriptive for something that is occurring. For example, which group
is buying a particular brand, a product’s market share within a certain
industry, how many competitors a company faces, etc.
This type of research is a far most popular form of market
research. It is used extensively when the research purpose is to
explain, monitor, and test hypothesis, and can also be used to lesser
extent to help make predictions and for discovery.
Marketers routinely conduct basic descriptive research using informal
means. For instance, the head of marketing of Colgate Company may
email a retailer how the products are selling. But informal descriptive
research, while widely undertake, often fails to meet the test of
research validity and reliability and, consequently, the information
should be used as an important component in marketing decisions.
50
Rather, to be useful, descriptive research should be conducted in a
way that adheres to a strict set of research requirements to capture
relevant results. This often means that care must be taken to develop a
structured research plan. Under most circumstances this requires
researchers have a good grasp of research methods including
knowledge of data analysis.
DATA COLLECTION TECHNIQUES:-
The secondary techniques of data collection were used to collect the
data.
a) Primary techniques of data collection:-
Primary data is that type of data which includes the first hand
information which is being collected from the respondents
through observation or direct communication with the
respondent in one form or other.
Sources of primary data collection:-
Observation
Questionnaire.
Discussion with some concerned people.
b) Secondary techniques of data collection:-
Secondary data means the data that is already available i.e. they
refer to data which have already being collected and analysed by
51
someone else. Secondary data has been taken from the company
booklets, information manuals, website etc. This has been used
to know about the organisation, market share of the
organisation, sales policy.
1. Internal Source:
Various internal sources like employee, books, sales activity, stock
availability, product cost, etc.
2. External Sources:
Libraries, trade publications, literatures, etc are some important
Source of external data
B) Data collection Tools:
To conduct a survey, the Researcher has selected a structured
questionnaire as an instruction for gathering valuable information
from the customers. Questionnaire, which is used for the survey,
is consisting of questions and checklist questions to check the
customer feedback.
C) Sampling Plan:
The researcher has design a sampling plan that is consist of five
decisions.
52
(I) Sampling unit :
Who is to be surveyed? The Researcher has selected youngsters,
businessmen, and housewives, employees to conduct survey and
to measure satisfaction level.
(II) Sampling types:
There are two types of sampling i.e. Probability Sampling and Non
– probability Sampling.
i) Probability Sampling: -Probability sampling means each
unit of the universe has equal chance of getting selected. The
most frequently used probability sampling methods are
as below:
a) Simple Random Sampling.
b) Stratified Random Sampling.
c) Multi-stage Random Sampling.
d) Cluster Sampling.
e) Multi – phase Sampling.
f) Replicated Sampling.
ii) Non – Probability Sampling:-
Non – Probability sampling contains following methods:-
a) Judgment Sampling.
53
b) Convenience Sampling.
c) Panel Sampling.
d) Quota Sampling
e) For this purpose the researcher has used non probability
convenience sampling.
FINDINGS
54
Colgate Palmolive offers a number of toothpaste for their every
class of customers with small, medium and family packs with
different price structure as their quantity.
Colgate toothpaste targets and every age of customer for kids its
Colgate kids toothpaste having flavours and cartoons printed on
pack, for youth its Colgate max fresh with three different
categories, Colgate total 12 which provides maximum germ
protection for 12 hours,etc
Colgate has increased its toothpaste range in the country with the
launch of ‘Colgate active salt healthy white’. It was first time the
company launched toothpaste that combines the power of salt and
lemon to remove yellowness in the teeth.
The company has launched Colgate total pro gum health which
helps to prevent bleeding of the gums, their inflammation and
recession for healthy teeth.
Colgate total 12 claims that toothpaste provides 99.99 % of germ
protection where as pepsodent claims that it provides 130%
protection against germs.
Colgate has the tough competition in the market with pepsodent,
sensodyne and closeup having market shares as 9 %, 27 %, and 18
% respectively.
55
SUGGESTIONS
Colgate Palmolive should increase their germ protection
content in their toothpaste as in pepsodent it claims 130 % germ
protection and Colgate just claims 99.99% germ protection.
Colgate should offer schemes with their products so that peoples
may buy more of it.
Colgate must do more innovations in their products so that their
competitors always remain behind them as they did the one in
Colgate active salt healthy white.
Colgate should come up with free dental check-up scheme for
kids so that they can promote their products to kids also.
Colgate may bring sensitive toothpaste in powder at low price
and promote it to rural area so that they can afford it.
CONCLUSION
56
After the detailed study of the product line offering and
marketing strategies of the Colgate toothpaste, it was able to get
the clear picture of the past and present of the products and was
able to get into the assumption about the future of the product.
The Colgate toothpaste products were successfully sold and the
company holds 65.31% of market share whereas the competitors
company holds less share than it.
It has 55.4% market share in toothpaste market.
It is facing a tight competition in toothpaste market from its
competitors pepsodent, sensodyne, etc
Finally, it should be noted that the company may have to face
lot of threats in coming years like changing life style of people
as a results changing demands.
BIBLIOGRAPHY
57
Website visited: - www.colgate-palmolive-india-ltd.com
Website visited: - www.colgate.co.in
Books referred: - C.M Kothari
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