COLGATE-PALMOLIVE (INDIA)

RAVI MISHRA 934SAHIL JANDIAL 938ARPITA JAIN 911ANAND SHUKLA 904DEEPESH AGRAWAL 916RASHI ARORA 933

Colgate-palmolive at a glance

• Colgate-Palmolive Company • Type : Public• Industry : Personal products • Founded :1806 • Headquarters : New York City, New York,U.S• Key people : Ian M. Cook, CEO• Revenue : US$15.3 billion (FY 2009)• Operating income : US$3.73 billion (FY 2009)• Net income : US$2.29 billion (FY 2009)• Total assets : US$11.1 billion (FY 2009)

HISTORY• Founded in 1806 by WILLIAM COLGATE.• 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 in jars.• Colgate ribbon dental cream was the first toothpaste sold

in tubes, in 1896.

Contd…

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

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

• Colgate has numerous subsidiary organisations spanning 220 countries, but it is publicly listed in only two, the United States and India.

Five major breakthroughs

MASS MARKETING STRATEGY (1937-1990)

• Major emphasis was to cater to oral care market in India when it was introduced in 1937 and was supplied with the help of carts.

• Tooth pastes where supplied in convenient tubes of different sizes

• Had a mass appeal.• No specific differentiation strategy.

PRODUCT DIFFERENTIATION (1990)

• With the introduction of Colgate powder toothpaste, the company started differentiating itself as a consumer oriented company.

• It focused on both rural and urban customers• Also catered to lower segment of the society

and was also good for people who can’t afford toothbrushes.

NICHE MARKETING(1991)

• Colgate introduced Colgate fresh tooth paste to cater to the segment of population which emphasized on freshness.

• Was a major success in urban cities.

LOWER SEGMENT STRATEGY(2000)

• In year 2000 colgate launched its cibaca varient in india which it acquired in year 1994.

• It was economical and carried the logo of colgate on its pack which provided it the customer loyalty of colgate

• Attracted customers who used colgate powder toothpaste.

• Also introduced sachet of tooth powder

Innovative marketing(2005)

Development of three varients 1. colgate max fresh 2.colgate active whitening 3.colgate active saltCatered to the segment of indian society which

was more conscious about their teeth and gums like tooth decay and gum protection.

Few basic facts

• 51% market share in toothpaste,48% in toothpowder and 30% in toothbrush.

• They came up with sachets of toothpowder catering to the lower segment which prefers to buy in lesser quantity.

• For toothbrush CP worked on functional benefits and launched different types of toothbrushes for different age groups.

• The prices were largely based on the competitor's price. �• For the niche products e.g. Colgate herbal, Colgate Blue etc, It

charged higher premium than the generic dental white creme that was focused on consumption by lower income classes.

COLGATE'S BRIGHTSMILES, BRIGHT FUTURES.

�

• The Colgate BrightSmiles, Bright Futures Oral Health Educational Program was practiced to teach rural children positive oral health habits of basic hygiene, diet and physical activity.

• Under this Program Indian children in primary and government schools received instructions on dental care from members of the dental profession nominated by the Indian Dental Association.

Cont…

�• Education was imparted with the aid of audio-visuals and

printed literature created by the company. • Free dental health care packs, including samples, were also

distributed by the company to encourage the practice of oral hygiene.

NIRMA“Value for Money”

Vision & Mission

• Nirma is a customer-focused company committed to consistently offer better quality products and services that maximise value to the customer.

NIRMA at a Glance

•Started as a One-man operation in 1969.

•An endeavor of Dr. Karsanbhai Patel

Incorporation

•14, 000 employee-base

People

•Annual turnover is above Rs. 25, 00 crores

•Nirma’s annual sales touch 800,000 tones, making it one of the largest volume sales.

Sales & Financials

•Nirma Consumer Care Limited operates with two parallel distribution networks (NIRMA & NIMA).

Reach

•Ahmedabad (Gujarat).

Headquarters

•Chairman : Mr. K.K Patel

•M.D : Mr. Hiren Patel

Top Management

Some Key Facts

• “Nirma” is named after Nirupama, daughter of Dr. Karsanbhai Patel.

• Purnima is the advertising agency that has been handling brand Nirma’s creative and media mandate for the last 30 years.

• 'Doodh si safedi Nirma se aye, rangin kapda bhi khil khil jaye' - this jingle has been used by Nirma for the last 25 years.

• Nirma's radio spot has been aired without a break for 28 years.

• Till 1986, Nirma was a single product brand.

Some Key Facts

• Nirma products are sold through two million retailers and reach 400 million consumers.

• Launched at Rs. 3 per kilo. • Largest Player of the Indian Detergent Market

with 38% of the market share.• 2nd Largest toilet soap marketer

of the country with a share of 20%.

Strategies Involved in Marketing Brand NIRMA

• Nirma clearly hit the fortune at the bottom of the pyramid as proposed by C.K. Prahlad.

• Its simple and catchy jingle – ‘Doodh si safedi Nirma se aye, rangeen kapda bhi khil khil jaye’. The jingle, which was first aired on radio in 1975, was broadcast on television in 1982.

• For the first time, in late 1980’s, Nirma experimented with its campaign without the famous jingle in its TV commercial, with the punch line : “ Maan gaye, aapki paarki nazar aur Nirma Super dono ko”.

Strategies Involved in Marketing Brand NIRMA

• In the mid 1990’s in a survey it was found that Nirma is considered a cheap brand by consumers.

• Repositioning- It forayed into the premium segment detergents & soaps. It released corporate advertisements worth Rs 10 bn throughout India. For endorsing soaps, the company used starlets like Sangeeta Bijlani, Sonali Bendre, and Riya Sen.

Strategies Involved in Marketing Brand NIRMA

• Analysts felt that the fast growing shampoo market was a better bet than the premium soaps market. In 2000, the company entered the hair care market with Nirma Shikakai, Nirma Beauty Shampoo, and oral care with Nirma Toothpaste.

Strategies Involved in Marketing Brand NIRMA

• HLL launched its detergent, Wheel, in the low segment market. Nevertheless, Nirma started frontal attack by positioning its products straight against to the HLL products like Nirma Bath against Lifebuoy, Nirma Rose against Breeze etc.

Strategies Involved in Marketing Brand NIRMA

• In 2009, Nirma appointed TapRoot India as its marketing agency, to revitalise its communication. The result was the 'underwater' commercial, which showed dancers moving with flowing fabric - a metaphor for clothes being washed in a bucket. An important point in the ad was that it did not use the iconic Nirma jingle.

http://www.youtube.com/watch?v=aaUMePqzNgA

Strategies Involved in Marketing Brand NIRMA

• Now, Nirma wanted its communication to get back to talking about the dirt tackling properties of the detergent, as well as use the legendary 'Washing powder Nirma' jingle. This task was given to ThoughtShop. The brand was firm that it needed a different take on dirt removal. Thus, the ad came about where Sanjeeda Sheikh is Scolding the puddle of dirty water to stay away.

http://www.youtube.com/watch?v=AkcbGGPQKB0&feature=related

NIRMA Over the Years

1969• Nirma Detergent powder came in polythene bags and was

promoted by door to door selling technique.

1970’s• In the early years, the Nirma packet featured a lady washing a

garment. Later, however, the design was changed and an image of Dr. Patel’s daughter was featured on the pack.

1975 & 1982• Its Catchy jingle first aired on radio in1975.• Broadcasted first time on TV in 1982.

NIRMA Over the YearsMid- 1990’s• Nirma’s Repositioning as a premium brand by foraying into premium

category detergents and soaps.

2000• Nirma’s foray into Hair & oral care products.

2009• Nirma’s underwater ‘modern’ commercial to revitalise the brand- without

the famous jingle.

2010• Nirma trying to reconnect with the famous jingle in a firm tone.

Nirma’s Differentiating Factors• Brand Nirma has never believed in showing a cliched animated product

demo/ or comparison of stain/ dirt, which is used by 80 per cent of the players in the category. They know the brand and their consumers very well, which they passed on to use it in terms of what need to be communicated.

• The company pioneered product sponsorship through the electronic media.

• The company has developed a unique advertising strategy - new products are launched with no advertising support. Once the distribution glitches are sorted out and the product reaches the shelves of retailers, the company begins to advertise it.

• Also , the umbrella branding strategy helps to give new products instant recall without increasing the advertising expense.

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