Report on Tooth Paste

8/2/2019 Report on Tooth Paste

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PRODUCT GROUP

A product group or a product class can be defined as the set of products and brands which

are perceived as substitutes to satisfy some specific consumer needs.

The product group that we have chosen is the Oral Carewhich consists of Toothpaste,Toothbrush, Toothpowder and Mouthwash. In this group we will be focusing on theMarket Segmentation of Toothpaste.

AN OVERVIEW OF TOOTHPASTE INDUSTRY

Toothpaste- we use it every single day. In fact, Indians brush their teeth nearly 100 billiontimes a year. Toothpaste is not a just modern phenomenon but it dates back to thousands of

years when people used chew sticks and ashes instead of toothpastes to brush their teeth.

In urban areas, toothpaste penetration is higher at 95% whereas in rural areas, thepenetration is only of 66%. Although the awareness about twice a day brushing is prettyhigh, even in urban India, very few people brush twice a day.

With population in the rural areas set to rise to 153 million households by 2009-10 andwith higher saturation in the urban markets, future growth in the FMCG sector will comefrom increased rural and small town penetration. The market potential for growth in theeconomy segment toothpaste brands is huge in case of rural areas.

Today the toothpaste market is estimated at around 95,000 tons in volumes and Rs 2500Cr. in value. The toothpaste industry has grown at the rate of 9% in the year 2004-05. Thetoothpaste market is segmented as Whites and Gels wherein whites account for almost 80%of the market.

Colgate and Hindustan Lever Ltd are the two dominant players in the toothpaste markettogether occupying 80% of the market. Then we have Anchor who came in a few yearsago. We also have smaller players like Dabur whose products now include red geltoothpaste, Meswak and Babool that, in all comprise around 8% of the market share.

The leader in the toothpaste market is by far Colgate with a market share of 50.4% with its

flagship brand- Colgate dental cream that alone accounts for nearly 39.4% of the tonnageof the Indian toothpaste market. However, Colgate has been under sustained attack fromHindustan levers brands- Close-up and Pepsodent, which account for 34% market sharetogether.

Colgate has niche brands under its umbrella like Colgate salt, Colgate total etc. Afterseveral relaunches on the part of Hindustan levers, Pepsodent is reportedly doing well on

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the tooth care platform. Together, Close-up and Pepsodent can mean a formidablechallenge to Colgate in the future. To consolidate its position in the market, Colgate tookover a languishing brand Cibaca.

It is difficult to attain 5% market share in toothpaste market today. But if any newlylaunched toothpaste acquires a market share of 5% in two years and grows faster than themarket, it is a successful brand. Toothpastes successful at one time like Babool, andPromise has slid down to this share. In fact very few types of toothpaste have toucheddouble-digit market share. The latest one to do this is Pepsodent.

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BASIS OF SEGMENTATION

Unless a business has a strong or leading share of a market, it is unlikely to maximize itsprofitability. Minor brands suffer from lack of economies of scale in production and

marketing, pressures from distributors and limited space on the shelves. Through carefulsegmentation and targeting, businesses can often achieve competitive production andmarketing costs and become the preferred choice of customers and distributors. In otherwords, segmentation offers the opportunity for smaller firms to compete with bigger ones.

Toothpastes have been segmented on the basis of the benefits people seek from them.

Benefit segmentation of the toothpastes can be done on the following basis:

Benefits Sought Brands

White BrightTeeth Colgate Advance Whitening, ColgateHerbal, Close-up

Fresh Breath Close-up, Colgate Dental Cream (CDC),Colgate Total, Colgate Gel, ColgateHerbal, Cibaca Top, Pepsodent, Dabur RedGel, Neem Active

Taste/Flavor Colgate Kids, Colgate Gel, CDC

Decay

Prevention

CDC, Colgate Total, Cibaca Top,Pepsodent, Meswak, Vicco, Neem Active

Gentler

Toothpaste

Colgate Kids

Tartar Control Colgate Total, Colgate AdvanceWhitening, Meswak, Vicco, Neem Active

Therapeutic Babool, Meswak, Vicco, Dabur Red Gel,Colgate Herbal, Neem Active

Healthy Gums Vicco, Colgate Total, Colgate Herbal,Colgate Salt, Babool, Meswak, Dabur RedGel.

Low Price Cibaca, Babool

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COLGATE

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COLGATEAbout The Company

Colgate-Palmolive is a $9.4 billion consumer products powerhouse that serves peoplearound the world with well-known brands that make their lives healthier and more

enjoyable. Truly global in scope, Colgate operates in over 200 world markets, andapproximately 70% of its sales come from international operations. Colgate's tightlydefined leadership strategy focuses on five core businesses: Oral Care, Personal Care,Household Surface Care, Fabric Care and Pet Nutrition.

Colgate Palmolive India Ltd is a 51% subsidiary of Colgate Palmolive Company, USA. Itis the market leader in the Indian oral care market, with a 51% market share in thetoothpaste segment, 48% market share in the toothpowder market and a 30% share in thetoothbrush market. The company has maintained its leadership position in the oral careindustry despite strong competition from No 2 player HLL as well as local players. Thetwo flagship brands of Colgate are- Colgate dental cream & Cibaca top.

Pioneer advantage and family habit put together make Colgate a formidable brand. Being apioneer gave CDC the advantage of being everything to everybody. (It claims successfullyto be germi-check toothpaste, a family toothpaste as well as toothpaste that tastes good.) Itis reasonably priced. Its positioning SURAKSHA CHAKRA has consistentlymaintained. Colgate was, till recently, ranked as the brand with the highest top-mind-awareness among consumers in the country. It is a successful toothpaste.

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Under the Colgate Umbrella Various Brands along with their market share are:

Brand Market share (%)

Colgate dental cream 39.1

Colgate gel 5.2

Cibaca 4.1

Colgate Herbal 2.2

Other brands of Colgate < 1

Colgate toothpaste brands as we can see can be broadly categorized as:

Whites

Gels

Herbal

Kids Toothpaste

COLGATE (WHITES)

Under whites, the various brands are as follows:

CDC

Colgate Total

Colgate Advance Whitening

Cibaca Top

Colgate Active Salt

The most predominant being the CDC.

Brand Essence of Colgate Whites

Reliability and Reassurance

Brand Promise

The brand promises to: Protect your whole familys teeth and gum related problems withcalcium and minerals i.e. Meri big super shakti meri big suraksha.

Brand Personality

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Trustworthy

Popular

Protective

Vigorous

Target Audience

Generally the parent, who buys toothpaste for the whole family and is looking for a uniquecalcium and minerals formula that provides him & his family with the following benefits:

Maximum protection from tooth decay

Makes teeth stronger

Fight germs for hours

And lastly provides fresher breath

COLGATE (GELS)

Under gel toothpaste, the major brand is Colgate fresh Energy Gel, which

comes in two flavors namely:

Icy Blue

Sparkling Red

Brand Essence of Colgate Fresh Energy Gel

Invigorates the senses

Brand Promise

It promises, Long lasting fresh breath and cooling sensation.

Brand Personality

Youthful

Vibrant

Appealing

Confident

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Target Audience

The target audience of Colgate Fresh Energy Gel is highly social young adults who areconcerned about their bad breath and looking for a germ-fighting system that keeps mouthfresh for hours.

COLGATE (HERBAL)

Under herbal toothpaste, the major brand is: Colgate Herbal Colgate Herbal White

Brand Essence of Colgate Herbal

Protecting gums in a natural way

Brand Promise

Herbal White toothpaste promises a unique formula including a special blend of

eucalyptus, calcium, minerals and lemon extracts that keeps gums and teeth healthy.

Brand Personality

Natural

Remedial

Protective

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Tender

Target Audience

Its target audience is the Traditional consumers, who seek natural ingredients for brushing

especially in semi-urban and rural towns.

COLGATE (KIDS)

This brand comes in two exiting bubble fruit flavours namely: Bright Pink Gel (Tweety)

Bright Blue Gel (Bugs Bunny)

Brand Essence of Colgate Kids

Makes fighting cavities fun

Brand Promise

Colgate kids promises to make brushing more effective and fun for kids.

Brand Personality

Caring

Tender

Effective

Fun-loving

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Vibrant

Target Audience

It targets parents who are looking for gentle toothpaste with a light foaming action for their

kids to strengthen their teeth and fight cavities. Along with this it is also targeting childrenwith its vibrant colours and fruit flavours that makes brushing fun and motivates them tobrush regularly.

CLOSE-UP&

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PEPSODENT

HLL- CLOSE-UP & PEPSODENT

About The Company

Hindustan Lever Limited (HLL), a 51%-owned subsidiary of Anglo-Dutch giant Unilever,made its foray in India in the year 1888. Hindustan Lever Limited (HLL) is India's largestfast moving consumer goods company, with leadership in Home & Personal Care Productsand Foods & Beverages. HLL's brands spread across 20 distinct consumer categories, touchthe lives of two out of three Indians. They endow the company with a scale of combinedvolumes of about 4 million tonnes and sales of Rs.10, 000 crores.

HLLs distribution network is recognized as one of its key strengths -- that which helpsreach out its products across the length and breadth of this vast country. HLL's products,manufactured across the country, are distributed through a wide network of distributors.The distribution network directly covers the entire urban population.

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HLL is India's largest marketer of Soaps, Detergents and Home Care products. It has thecountrys largest Personal Products business, leading in Shampoos, Skin Care Products,Oral Care Products, Colour Cosmetics, and Deodorants. HLL is also the market leader inTea, Processed Coffee, branded Wheat Flour, Tomato Products, Ice cream, Soups, Jamsand Squashes.

Its brands include Kwality Wall's ice cream, Lifebuoy soap, Lipton tea, Pepsodent &Close-up toothpaste, and Surf laundry detergent.

Hindustan Lever Ltd is the second largest player in the Indian oral care market with a 33%market share. Close-up & Pepsodent are the leading brands of the company. Thecompanys rural urban mix is 30:70 wherein it is targeting majority of the urbanpopulation.

Market Share of its major toothpaste brands is:

Brand Market share (%)

Pepsodent 17.6Close-Up 15.3

CLOSE-UP

About The BrandIn 1970s, Close-up was the first gel toothpaste with mouthwash to be launched in India.For the first time, people had the option to brush with transparent, shiny, bright redtoothpaste. For the first time, too, toothpaste tasted good spicy clove and icy mouthwash.Close-up emancipated mornings from their boring white toothpaste routines. While othersoffered cavity control and strong teeth, Close-up offered the cosmetic benefits of superiorfresh breath and shiny white teeth.

The brand allowed people to get over their insecurity of bad breath and get closer to each

other. Close-up appropriated the world of happy smiles, of happy couples having funtogether. Consistent communication in this genre helped create a distinct, aspirationalimagery for the brand that has remained strong over time.

Brand Essence of Close-up

Confidence, Youth & Romance

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Brand Promise

Close-up didnt just promise the young romantics fresher breath and whiter teeth, it alsopromised them the confidence to get up close to the person that matters the most.

Brand Personality

Youthful

Refreshing

Fun

Romance

Contemporary

Confident

Energetic

Differentiated

Empowered

Target Audience

Its target audience involves youngsters and those people who are conscious about how theirbreath smells when they are up close- especially with the people of the opposite sex. Apartfrom its dual benefits of fresh breath and white teeth, the brand also targeted youth collegegirls and guys who wanted to get over their insecurity of bad breath and provided themwith the confidence to stand up for themselves. It was in fact, the first brand that showedsmart modern girls who were standing up for them, going up on stage and being smarterthan the boys.

PEPSODENT

About The Brand

Pepsodent, launched in 1993, was the first toothpaste with a unique anti-bacterial agent toaddress the consumer need of checking germs even hours after brushing. Pepsodent packsincluded a Germ Indicator, which allowed consumers to see the efficacy in fighting germsfor themselves.

Pepsodent connects directly with kids and their parents. Pepsodent has always worked in

the direction of an overall awareness of dental health. The relaunch campaign in October2003 widened the context to "sweet and sticky" food and leveraged the truth that childrendo not rinse their mouths every time they eat, demonstrating that this makes their teethvulnerable to germ attack.

Brand Essence

Doing away with germs

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Brand Promise

Pepsodent promises mothers that they no longer have to worry over the out of controleating habits of their children; Pepsodent will take care of this by its long lasting protection

of germs.

Brand Personality

Protective

Reliable

Fighter

Responsible

Emotional

Target Audience

The target audience of Pepsodent is the mothers that tend to show anxiety about theirchilds teeth and their eating habits more so when they are out of her sight. Not only thisbut they also dont want to fight with their children over this but if they dont do anythingthey feel irresponsible. This is evident from the sound mnemonic of Dishoom Dishoomthat depicted the conflict between the mother and child, and also, the action of Pepsodenton germs.

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DABUR

DABUR

About the Company

Dabur India is the countrys fourth largest FMCG Company with interests in Health care,

Personal care and Food products. Building on a legacy of quality and experience for over100 years, today Dabur has a turnover of Rs.1536.95 crore with powerful brands likeDabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real. The company has wide anddeep market penetration with 47 C&F agents, more than 5000 distributors and over 1.5million retail outlets all over India.

Recently, Dabur India Limited has entered into a definitive agreement to acquirecontrolling stakes in three Balsara Group companies Balsara Hygiene Products, Balsara

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http://www.dabur.com/EN/Products/Personal_Care/http://www.dabur.com/EN/Products/Foods/http://www.dabur.com/EN/Products/Personal_Care/Hair_Care/Amla/http://www.dabur.com/en/products/Health_Care/Health_Supplements/Chyawanprash/http://www.dabur.com/EN/Products/Personal_Care/Hair_Care/Vatika/http://www.dabur.com/en/products/Health_Care/Digestive/hajmola/http://www.dabur.com/EN/Group/Foods/real/http://www.dabur.com/EN/Products/Personal_Care/http://www.dabur.com/EN/Products/Foods/http://www.dabur.com/EN/Products/Personal_Care/Hair_Care/Amla/http://www.dabur.com/en/products/Health_Care/Health_Supplements/Chyawanprash/http://www.dabur.com/EN/Products/Personal_Care/Hair_Care/Vatika/http://www.dabur.com/en/products/Health_Care/Digestive/hajmola/http://www.dabur.com/EN/Group/Foods/real/


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Home Products and Balsara Cosmetics. The acquisition brings into its fold importantFMCG brands like Promise, Babool and Miswak toothpaste.

Dabur currently owns three brands in the oral care segment namely: Dabur Red toothpaste -launched in 2003, Babool and Miswak.

Market Share of Toothpastes under Dabur Umbrella are as follows:

Brand Market Share (%)

Dabur Red Gel 1.8

Babool 1.4

Miswak 1.2

DABUR RED GEL TOOTHPASTE

Brand essence

"Celebrate life

Brand Promise

Dabur promises stronger teeth and freshness through natural herbs.

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Brand Personality

Rejuvenating

Healing

Powerful

Stable

Target Audience

Dabur Red Gel targets the entire family and even the young couples who are looking fortoothpaste that will help in keeping all their dental problems away and provides freshbreath and with a good flavour.

BABOOL TOOTHPASTE

Brand Essence

Live life Big Bite

Brand Promise

Babool promises its consumers that they will remain fresh throughoutthe whole day after brushing their teeth with it. Subah Babool ki to din tumhara.

Brand Personality

Youthful

Appealing

Tender

Healthy

Pleasant taste

Target Audience

Its target audience is mainly the people who are looking for herbal protection at anaffordable price. Its target audience mostly resides in states like Rajasthan, Gujarat,Maharastra, MP, UP (it is in these states that the Babool tree is found and hence peoplethere knew of its benefits).

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Recently, it has started targeting the urban youth through its new brand ambassador VivekOberoi to attract people showing that how with Babool they can make their teeth strongerfrom the roots by biting hard fruits.

MESWAK

Brand Essence

Memorize old traditions

Brand Promise

Meswak promises to provide traditional benefits of the extracts of Meswak plant- thefamous toothbrush tree used for centuries.

Brand Personality

Traditional

Therapeutic

Refreshing

Effective

Target Audience

It targets elderly people who are looking for traditional way of brushing their teeth in themodern life and also who love strong flavor.

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VICCO LABS

VICCO

About The Company

Founded in 1952 by late Shri K.V. Pendharkar, the VICCO Group has emerged today asmakers of the best internationally known products of the Ayurveda, the ancient Indiansystem of natural medicines. Having production units at Dombivli, Nagpur and Goa inIndia, their annual turnover has scored to Rs. 700 millions. Their best known products areVicco Turmeric skin / sun screen cream, Vicco Vajradanti powder and paste and Vicco SF(Sugar free) paste. About 15% of company's total production goes to overseas market.

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Right from its inception in the 1952, the VICCO Group of companies has been charting anunwavering course that has catapulted the group into international limelight. Today, 50years later, the group stands majestically as a grand conglomerate of 13 companies.

Market share of Vicco Vajradanti Toothpaste

VICCO products constitute 4% of India's paste market.

About the brand

Vicco Vajradanti Toothpaste is the nature's perfect dental care program. The pure extractsof 20 herbs and barks, tested over generations, have been blended into a potentcombination that not only cleans teeth, but also protects gums and strengthens them.

It offers a unique formula in a dental care paste that has natural astringent, antiseptic, andanalgesic properties. These ingredients also stimulate and reinforce gums, while resistingplaque formation. It gives you strong gums, which makes your bite mighty, which nocosmetic toothpaste can ever give.

The paste removes food particles from the cavities and crevices of the teeth and alsostrengthens the gums by allowing the essences from 20 rich herbs to percolate down thegum - layers.

Brand Essence

Combining ancient wisdom with modern technology

Brand Promise

The brand promises to rejuvenate teeth and gums to give a never fading smile.

Brand Personality

Healing

Effective

Fragrant

Stimulating

Analgesic

Powerful

Therapeutic

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Target Audience

It is recommended for people both young adults and elderly who have any gum discomfortsuch as gingivitis, ageing teeth, gum recession, people who use tobacco and are at a higher

risk for periodontal diseases. It also targets people who want to avail all the benefits ofancient ayurveda and want to protect their teeth from harmful chemicals.

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NEEM ACTIVE

NEEM ACTIVE TOOTHPASTE

About the brand

Henkel SPIC India Ltd, a joint venture between Henkel KgaA, Germany and Tamil NaduPetroproducts Limited, is the marketer of its Neem toothpaste i.e. Neem Active.

Brand Essence

Natural Astringent & Antiseptic

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Brand Promise

Neem Active promises germ-killing properties with an un-bitter taste and also enrichedpower of Neem and improved product formulation to ensure strong teeth and healthy gums.

Brand Personality

Germicidal

Effective

Therapeutic

Traditional

Refreshing

Target Audience

The Target Audience of Neem Active toothpaste includes the entire family who are lookingfor herbal products to prevent their teeth from decay as well as to control plaque along withhealthy gums. It is also targeting children with its new spearmint flavour and with an un-bitter taste so that they enjoy brushing their teeth with it along with availing the naturalbenefits of herbs.

BIBLIOGRAPHY

www.Agencyfaqs.comBrand positioning by Subroto Sen Gupta

www.Colgate.com

www.hll.com

www.viccolabs.com

www.dabur.com
http://www.colgate.com/http://www.hll.com/http://www.viccolabs.com/http://www.dabur.com/http://www.colgate.com/http://www.hll.com/http://www.viccolabs.com/http://www.dabur.com/

Documents

Report on Tooth Paste