Toothpaste and Colgate

Background

Colgate-palmolive is Rs 1. 300 crore company started in year 1937. In Rs 2,400 crore domestic market it enjoys 50% of markets share.

It spread across 4. 5 million retails outlets out of which 1. 5 million are direct outlets. Financials Total Income – Rs 20606. 60 Million (year Ending Mar 2010) Net Profit – Rs 4232. 60 Million (year Ending Mar 2010) Company Secretary K V Vaidyanathan

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INTRODUCTION

Colgate – Palmolive Company is an American diversified multinational corporation focused on the production, distribution and provision of household, healthcare and personal products, such as soaps, detergents, and oral hygiene products (including toothpaste and toothbrushes). Under its “Hills” brand, it is also a manufacturer of veterinary products. The company’s corporate offices are on Park Avenue in New York City, across from the Waldrof Astoria. In India, it operates under the name as Colgate-Palmolive (India) limited and its head office is at Mumbai. Colgate Palmolive is a $10. 6 billion global company serving people in more than 200 countries and territories with consumer products that make lives healthier and more enjoyable.

COLGATE PALMOLIVE INDIA:

Headquarter in Mumbai. Annual Turnover around 1100 crs. Market leaders in oral care. Colgate consistently won India no 1 brand of the year award from last three years. Colgate ranked among best employer in India. Customer base of more than 8 lacs retailers. Serviced by company field force, more than 1800 stockiest & super stockiest & their field force. Colgate is the brand that people trust, for complete oral care protection for themselves and ones they lov

COMPANY HISTORY

• 1806 - William Colgate starts a starch, soap and candle business on Dutch Street in New York City.
• 1817 - First Colgate advertisement appears in a New York newspaper.
• 1820 - Colgate establishes a starch factory in Jersey City, New Jersey.
• 1857 - Upon the death of founder William Colgate, the company is reorganized as Colgate & Company under the management of Samuel Colgate, his son.
• 1873 - Colgate introduces toothpaste in jars.
• 1879 - Gerhard Mennen establishes a pharmacy in Newark, NJ, later ecoming the Mennen Company.
• 1896 - Colgate introduces toothpaste in a collapsible tube.
• 1902 - Stylish Colgate advertising begins, emphasizing ingredient purity and product benefits.
• 1906 - Colgate & Company celebrates its 100th anniversary. Product line includes over 800 different products.
• 1911 - Colgate distributes two million tubes of toothpaste and toothbrushes to schools, and provides hygienists to demonstrate tooth brushing.
• 1914 - Colgate establishes its first international subsidiary in Canada.
• 1930 - On March 13, Colgate is first listed on the New York Stock Exchange.
• 1939 - Dr. Mark L. Morris develops a pet food to help save a guide dog named Buddy from kidney disease. This breakthrough leads to the first Hill's Prescription Diet product.
• 1956 - Colgate opens corporate headquarters at 300 Park Avenue in New York City.
• 1968 - Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities.
• 1972 - Colgate acquires Hoyt Laboratories, which later becomes Colgate Oral Pharmaceuticals.
• 1985 - Colgate-Palmolive enters into a joint venture with Hong Kong-based Hawley ; Hazel, a leading oral care company, which adds strength in key Asian markets.
• 1989 - Annual Company sales surpass the $5 billion mark.
• 1995 - Colgate enters Central Europe and Russia, expanding into fast-growing markets.
• 1997 - Colgate Total toothpaste is introduced in the U. S. and quickly becomes the market leader. Only Colgate Total, with its 12-hour protection, fights a complete range of oral health problems.
• 2004 - Colgate acquires the GABA oral care business in Europe, with its strength in the important European pharmacy channel and its ties with the dental community.
• Today …

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

MARKETING MIX MARKETING MIX CUSTOMER WANTS AND NEEDS PRODUCT COST TO SATISFY PROMOTION PLACE PRICE CONVIENCE TO BUY COMMUNICATION

Product :-

The product, the Precision toothbrush, is a product that should add value to a buyer’s life. It should also add utility, and meet the wants and needs of targeted consumers. The product should be unique and different from all similar products that are already available on the market. The strategy is to differentiate the product’s design and packaging, which in return will cause the toothbrush to stand out.

VARIOUS TYPES OF COLGATE

Price:-

The price of a product says something about the quality. * Even though the quality of the Precision toothbrush will be significantly higher than other leading 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 mainstream product rather than a niche product. Place:- * Place represents the location where a product can be purchased. * The most important part of marketing is how a product will get from the seller to the buyer. * Many products go through a channel of distribution, which involves manufacturers, wholesalers, retailers, and consumers. The distribution strategy proposed for the Precision toothbrush is through dentists, plastic surgeons, drug stores, grocery stores, large retail stores, and department stores. * The product is available in the all India market, including semi-urban & rural markets which are their primary focus. 4. Promotion :- * Product promotion is communication spread through advertising, Publicity and sales promotion. * Promotion represents all of the communication that marketers use in the market. * We suggest that Colgate-Palmolive advertise their products by using commercial, magazine ads, the radio, ads that are to be placed in dentist ffices, billboards, and the 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. We also suggested that Colgate offer special coupons and rebates through their other products, and also food products. * Also, Colgate could benefit from the usage of in-store displays. * Most of the promotional activities would be T. V. media. * T. V. , FM radio for urban population. * Promotion towards rural population also.

BCG MATRIX

* The BCG matrix or also called BCG model relates to marketing.

The BCG model is a well- known portfolio management tool used in product life cycle theory. * BCG matrix is often used to prioritize which products within company product mix get more funding and attention. * The BCG matrix model is a portfolio planning model developed by Bruce Henderson of the BOSTON CONSULTING GROUP in the early 1970’s. * The BCG model is based on classification of products (and implicitly also company business units) into four categories based on combination of market growth and market share relative to the largest competitor. SWOT ANALYSIS “SWOT is an acronym for the internal strength and weakness of a firm and the environmental opportunities and threats facing the firm. * SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. * The technique is based on the assumptions that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weakness) and its external situation (opportunities and threats).

INTERNAL FACTORS:

STRENGTH:

* Colgate dental cream offers all-round cavity protection, even where a toothbrush cannot reach. Its great mint taste freshens breath. * It protects against root caries. * It cleans ; makes teeth whiter and repairs early decay spots. * Extremely popular brand and high brand awareness due to advertising.

WEAKNESS:

* High dependence of the company on a single category i. e. , oral care. * Reduction in advertisement expenditure in order to maintain growth.

EXTERNAL FACTORS (3) OPPORTUNITIES:

* Leverage on fact that Colgate has been ranked as the most trusted brand in India. * Focus on innovations and new product launches by deploying advanced technologies. Growth in emerging markets – rural and semi- urban.

THREATS:

* High competition from competitive brands like Pepsodent from HUL. * Increasing commodity prices for manufacturing.

STP ANALYSIS (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 product needs. * Colgate uses a segmentation bases by knowing that certain groups of people need Colgate toothpaste for a 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. * Also, toothbrushes are made to attract young children with cartoon characters and different tastes and are less strong so that it wouldn’t damage their gums.

TARGET GROUP:

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 cause 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 don’t like to brush teeth, so for them this toothpaste was launched. Colgate had focused on taste aspect to encourage kids to brush teeth.

COLGATE WHITENNING – A whitening toothpaste that is "Clinically-proven to whiten in 14 days”. Its whitening ingredient is hydrogen peroxide, which gradually bleaches the teethFocus is given on group of customers in this segment those who are already suffering from plaque in their teeth. *

COLGATE 2in1 :

People who want both strongness and fresh breath are targeted. (3)

POSITIONING:

Colgate dental cream positions itself as toothpaste that has the 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 a different style or taste to the toothpaste. Colgate repositions 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. Lately with competition from indigenous “vegetarian” toothpastes, Colgate dental cream has also positioned itself as an “always 100% vegetarian” toothpaste. The tagline of its advertisements, “trusted by generations to make teeth stronger”. Colgate total12 have been projected as the “most advanced toothpaste” that provide 12 hr germ protection even after eating and drinking by building a protective shield around the teeth. Colgate max fresh positions itself on the basis of “freshness”. The tagline “new dimensions brings” home this very point. Colgate kids toothpaste tries to position itself based on emotions which is apparent in its tagline “makes fighting cavities fun”

RECOMMANDATION

S Colgate should hire celebrities for the advertisement. They should also increase their CSR activities because they have very good image in the market. Target market should be clearly emphasized in the advertisement. Colgate should emphasize on digital branding i. e. , online purchase. Colgate should use colorful paste to create uniqueness.

CONCLUSION

By the Detailed study on the product and market of COLGATE it was able to get a clear picture of the past and present of the products and was able to get in to the assumptions about the future of the product. The Brand “COLGATE” has been sold successfully and has created a good demand all the time. It is also holding a good place in the toothpaste market with a share of around 10% - 15%. As like for all other products Colgate is also facing a tight competition in the toothpaste Market. Since the competition is too strong the company has to keep on watching market closely for avoiding any sudden collapse for the product. Finally, it should note that the company may have to face lot of threats in coming years like political threats, legislation threats ongoing economic crisis, changing life style of the people etc. If the company is able to overcome all the threats and can prepare themselves for facing the problems in advance it can achieve a good growth for “COLGATE”.

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