Presented By:Agrawal Bhavin (02)Ishani Dave (14)Aakash Gajjar (18)Nitin Madhavi (28)

Colgate

Type Public

Industry Personal Care

Founded 1806

Headquarter United States

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

Revenue US$ 17.42 BILLION (2013)

No. of employees 37,700 (2012)

Slogan “world of Care”

Website www.colgatepalmolive.com

History• In 1806, William Colgate introduced starch, soap and

candle factory on Dutch Street in New York City under the name of "William Colgate & Company".

• In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son.

• In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.

• His company sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896.

• 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.

• Today Colgate has numerous subsidiary organisations spanning 200 countries, but it is publicly listed in only two, the United States and India.

Introduction• The brand name ‘Colgate’ is synonymous with toothpaste. This world-

renowned brand is sold in more than 200 countries.

• In India, the company has successfully replicated the strong brand image and awareness in the minds of consumers.

• Today, Colgate is a household name in India with one out of every two consumers using a modern dentifrice. The company manufactures and markets its oral care, personal care and household care products under the ‘Colgate-Palmolive’ brand name.

• Colgate India earns around 93% of its revenues from the oral care segment.

The Toothpaste Market• Oral hygiene continues to be under aggressive competition, with

sales increasing each year making it a Rs. 3,000 crs. Market.

• The toothpaste segment is largely a two player industry, Colgate Palmolive & HUL accounting for 85% of the entire market.

• Oral care is expected to have a value CAGR of 9% at constant 2013 prices to reach INR131.0 billion by 2018

Long term growth drivers for the industry

• Improving penetration

• Through better distribution and conversion from other modes of oral care

• Increased usage

• Improved per capita consumption through increased usage frequency

• Population growth

• An annual 1.5% increase in population will help broaden the user base for oral care.

Colgate Palmolive milestone

• 1806: Company is founded by William Colgate in New York to make starch, soap, and candles.

• 1873: Toothpaste was launched

• 1928: Colgate and Palmolive-Peet merge, forming Colgate-Palmolive-Peet Company.

• 1937: the company moved into India.

Colgate Palmolive milestone in India• 1937: launch first toothpaste Colgate dental cream

• 1949: launch tooth powder and toothbrush

• 1950: Palmolive shave cream

• 1976: launch programme “young India.”

• 1989: Palmolive extra care soap launched.

• 2003: launch oral health month program

• 2003 to Present: No. 1 Toothpaste Brand in India

Colgate Palmolive productsTooth brush

• Colgate360

• Colgate Zigzag

• Colgate Cibaca

Tooth powder

Colgate Toothpaste:

• Colgate Total 12

• Colgate cibaca

• Colgate Sensitive

• Colgate Active salt

• Colgate Max Fresh

• Colgate Fresh Energy Gel

Market share (2014)

56.70%

21.50%

13.40%8.40%

Market Share

Colgate PalmoliveHULDaburothers

Source: www.financialexpress.com

The Brand Equity of Colgate• In 1992,93,94 Colgate was ranked No 1 brand in all categories surveyed

by annual brand power survey India.

• In 1997 Colgate calciguard and Colgate plus get IDA seal of acceptance.

• 1999 Colgate was rated “India's premier brand” by A&M annual survey of India's top brand.

• 2002 again No 1 brand in India- surveyed by Taylor Nelson MODE.

• “ Best Employer India”- surveyed by BT Hewitt

• 2003-05 ranked “Most trusted Brand in India” Surveyed by AC neilson ORG-MARG.

• 2009 celebrated Colgate Oral Health month.

• 2013 to till now Colgate is the most successful Brand in India

Major competition to Colgate in rural India

• Pepsodent• Close up• Babool• Meswak• Dabur red• Amar• Anchor white• Other small Players

Segmentation• The Company has divided its market into two product

segments: Oral care & Personal care.

• Colgate is considered to be the global leader in the Oral care Products such as toothpaste, Toothbrushes and many other pharmaceutical products.

• Colgate also possesses a strong market in the Personal Care segment that includes products like bar, liquid hand soaps, shower gels, shampoos etc.

• Geographic Segmentation Strategy: The Colgate Company has implemented this strategy by expanding its business in over 200 countries. The company does not market the same product in every country. For instance, in United States they are selling sixteen different types of toothpastes while in UK; they are selling twenty two different types of varieties.

• Demographic Segmentation Strategy :The Company caters the market segment based on different demographics such as age, gender, social class etc. For kids aged 8-10, they have products like transitional toothpastes. They have a separate section for infants, children, teenagers and adults.

• Psychographic Segmentation Strategy: Here the company sells the products considering the lifestyle and needs of the consumers. For people who are sensitive about their teeth, they have introduced Sensitive pro-relief toothpaste and brushes which are made to decrease tooth sensitivity issues.

The Product Life Cycle

A company's positioning and differentiation strategy must change as the product, market and competitors vary over the Product Life Cycle. to say that a product has a life cycle consist of four things:-

1. Products have limited life

2. Product sale passes through different stages, each posing a different challenge and opportunity to seller.

3. Profits rise and fall at different stages of life cycle.

4. Products need different strategies in different life cycles.

1. Introduction:

A period of slow growth, because the product is just introduced in the market, the profits here are nonexistent due high cost of advertising and other product introduction strategies.

For Colgate- • 1873 Colgate toothpaste introduced in jars to market.• 1986 Colgate toothpaste sold in tubes called as Colgate ribbon.• 1937 Colgate entered Indian market.• 1949 it touched a new height in India.• 1976 it tried to growth it's sales in India by launching YOUNG

INDIA PROGRAM -"bright smile becomes brighter".

2. Growth:A period of rapid market acceptance and substantial profit

improvement.

For Colgate-• 1990 to 2003 Colgate reaches out to every rural customer and

strengthen it's supply chain.• Colgate herbal white toothpaste launched.• 2003-2009 Colgate awarded no.1 toothpaste brand for 7

consecutive years.• Colgate acquired 51%  market share during this period.• Launched many initiatives and promotions to further increase it's

sale•  As it's initiative it started oral care weak and targeted schools

and Anganwadis

3. Maturity:A slowdown in sales growth, because the product has achieved

acceptance by most potential buyers. I believe this to be more of a stable stage for the product, where the graph is almost flat.

For Colgate-• HUL and P&G emerged as major competitors for Colgate.• With some other niche player Colgate facing tough

competition in toothpaste market. • they roped SRK as their brand ambassador in 2009• oral health month launched in 2010.• colgate with IDA worked to develop toothpastes

for different needs of customer.• 2011-2013many variants of Colgate toothpaste launched.

4. Decline:

Here the sales show a downward drift and profits decrease. This is where the company has to really think of ways to get its product back in business. It may try hard at advertising, or may be add new features, but basically come with a new marketing strategy to increase its falling profits.

SWOT Analysis• Strengths

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 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

4A’s adapted by Colgate to attract Rural IndiaAcceptability:

• They try to position some innovative toothpaste with a brand name other than Colgate but under the umbrella of Colgate Palmolive

• Focusing toward rural rich and consuming class by endorsing the development of ‘Colgate Ayurvedic Toothpowder

• They came up with sachets of tooth powder and position toward rural population who buy in smaller lots.

• Eg: 1.They launch different toothbrushes for different age groups. 2.They launch a special toothpaste and toothbrush for kids in the age

group from 4-10 years.

Affordability:

• As rural consumers are price conscious people, so its good to set a low price for them

• Quantity which the Colgate offers to consumer is much higher than its competitors at the same price

• Colgate has adopted Market penetration pricing strategy in order to gain market dominance.

Availability:• 940 direct accounts

• 3.8 million retail outlets.

• 2nd most widely distributed product in the country.

• The company is tying up with initiatives like E-chopal and Disha to further strengthen its distribution network .

• In 1998, Colgate contacted 6 million people in 20,000 villages.

Awareness:

• It is often said that markets are made, not found. This is particularly true of the rural market of India.

• It is a market meant for the truly creative marketer. Promotion has become the biggest challenge, to rural marketers today.

• Rural marketers have to skillfully communicate with a much larger but scattered audience characterized by variations in language, culture and lifestyles.(companies have to adopt the principle of multi-national companies i.e., “ think global and act local”

Colgate create a awareness of their product in:

• Melas• Door to door selling• Haats• Sampark campaign• Vans• Free dental checkup• Free samples

The requirement is threefold (for strategic promotion)

1. To explore the available media at the different locations.

2. To develop region-specific consumer profiles to understand the characteristics of target market.

3. To design right communication and motivation strategies to induce target audience to buy the product.

Sampark Penetration• Suggesting and implementing a rural promotional scheme

was what Colgate called ‘Sampark’ for, as they were specialist in rural advertising category.

• Going in for mass media would not prove to be costly but the reach would be limited as, still only very few people own and possess a T.V. or a radio. Sampark decided to their advertising by door to door selling

Distribution Channel

• Whole seller• Retailer• Vans• Weekly Haats• Bazaars

• Wholesalers The Indian wholesaler is principally a Galla – Kirana (food-grain) merchant who sustains the belief that business is speculative rather than distributive in character.

• Retailers Village retailers have traditionally been among the most mobile of rural residents.

CREDIBILITY He enjoys the confidence of the villagers.

INFLUENCE LEADER His role as influence leader is indisputable.

BRAND PROMOTER In rural market retailers remains the deciding factor to sell particular brand. Retailers helps in identification and selection of brands, there is less influence of shelf displays and point of purchase promotion.

• Melas and Fairs: This is another low cost distribution channel available to the marketers. It is comparable with urban events like Wills Trophy, India International Trade Fair (IITF),Most of the fairs are associated with either a religious event or a festival. Among the most famous melas is the mighty Kumbh Mela at Allahabad (Triveni Sangam), Pushkar mela in Rajasthan, Kullu Dusshera mela in Himachala Pradesh, Sonepur mela in Bihar and Makar Vilakku in Kerala. According to the Indian Market Research Bureau (IMRB) around 8000 melas are held in rural India every year.

• Educational Films :Educational films were also shown in between movies in theatres, these are usually 10-40 seconders which were educational and used to feature either actors, local lenders, for a farmer just like the ones viewing the documentary, later on after the movie would end free samples were distributed to the audience

• Teachers Training Program Teachers Training Program is an integral part of the School Dental Health Program, conducted regularly across the country to promote preventive dental health care. Colgate also has launched its first-ever online school curriculum featuring fun and entertaining activities.

• “ Oral Health Educational Program” The  Colgate Rural Initiative , targeted at rural areas with a population between thirty and a hundred thousand people. The dental check up camps were supervised by teams of dentists and organisers who interacted with over 1 lakh people teaching them the benefits of oral hygiene.

• ITC E-ChoupalColgate, a company also tied up with  ITC E-Choupal  and Rotary to spread the message of dental care and oral hygiene to villages across India. The campaign successfully targeted over 156 villages in Uttar Pradesh in association with Project Disha and 36 villages in Maharashtra. In addition, dental camps were also conducted in the Dussera Mela at Kota.

Vans:

Free Dental Check-up in mobile vans

Challenges face by companies:• Many companies view the rural markets as great opportunity for

expanding their sales but find distribution as a major problem. Unfortunately, it is almost impossible to transplant strategies which work successfully in urban markets on to rural markets.

The road blocks to reach the rural customers are: Lack of adequate transport facilities. Large distances between villages. Lack of Good roads connecting villages to nearest townships. Lack of proper retail outlets· Lack of mass media infrastructure.

Conclusion• Colgate is still most successful brand in Rural India

• Future for Colgate also seems bright

• Main reasons are:Strategic initiativesCreating Demand in rural areas Innovative Promotions

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