Colgate: Regaining Leadership

UNDER THE GUIDANCE OF PROF. SACHIN LELE

Aditya Pal | Roll No. 17005 |Marketing Decision Making | 18/12/2016

The Colgate Palmolive Company
Colgate-Palmolive Company is a $15.6 billion global company serving people in more than
200 countries and territories with consumer products that make lives healthier and more
enjoyable. The company focuses on strong global brands in its core businesses oral care,
personal care, home care and pet nutrition. The company has maintained its toothpaste
leadership position at 55.9% volume market share in June 2016 which is an improvement
of 60 bps vs. 55.3% in May 2016. in the toothbrush category Colgate has grown its volume
market share to 46.8% in June 2016, an improvement of 100 bps vs 45.8% in march 2016.

ABOUT THE CASE

The case is all about how the market share of Colgate Palmolive has fallen with due to
influence of the other market competitors. Colgate which is the leading brand faces tough
competition from the upcoming brand GlaxoSmithKlines sensodyne. GSK Sensodyne
entered into the Indian market in year 2001, with its brand toothpaste sensodyne
toothpaste that has ultimately made suffer the existing Colgate brand toothpaste Colgate
sensitive which was launched in year 2009.

There is major role of tooth sensitivity. Indian were very prone to the brand Colgate and
with its ultimate solutions to their problems. In the year 2009, when Colgate launched its
first Colgate sensitive toothpaste, the successful thought plan of the Colgate is to increase
its customer loyalty by solving their problem of tooth sensitivity. But the problem was that
there were only 31% people who were aware of this problem and in this percent only 11%
of people take the action against this problem. So the initial huddle to cross for the Colgate
was to create awareness about the problem i.e. Sensitivity. To overcome this, Colgate tried
many activities like:

Colgate worked closely with the Indian Dental Association (IDA) in effort to build
awareness regarding the oral health.
Colgate ran school dental education like Bright Smiles, Bright Future
They also do oral health campaigns in rural areas to create awareness

With the endless effort Colgate has made its mission accomplished around the year 2011
and their product Colgate Sensitive Toothpaste was at boom but in the mid-year 2011 GSK
launched its product and almost captured the sensitive toothpaste market. This made
Colgate to think on their strategies.

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 Problem Statement
Ques 1. How should the company navigate these extremely competitive tides to regain
its lost market share?

Ques 2. Could Colgate regain its dominance?

SITUATIONAL ANALYSIS
Colgate Sensitive

Parent Company Colgate Palmolive

Category Personal Care Toothpaste

Sector FMCG

Tagline/ Slogan Relief from the Pain of Sensitive Teeth

USP The first and only toothpaste clinically proven to provide instant and effective
long lasting relief from Sensitivity

STP

Segment Personal Care Oral Hygiene Toothpaste for Sensitive Teeth

Target Group Urban middle class Men and Women

Positioning 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.

SWOT Analysis

Strengths 1. Helps maintain the natural whiteness of the teeth

2. Provides relief from the pain of sensitive teeth
3. Proven protection from sensitivity with regular use
4. Has a pleasant taste
5. Effective advertising showing product utility

Weaknesses 1. Higher pricing of the product, targets only the premium segment who can
spend more on oral hygiene
2.No variants offered in the toothpaste in terms of flavors or use
3. Only 2 sizes available 40g and 80g

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Opportunities 1. Leverage on Approval by Indian Dental Association
2. Capturing niche market segment of sensitive teeth in the toothpaste industry
3. This scientifically advanced toothpaste uses the break-through Pro-Argin
technology

Threats 1. High pricing can limit the market growth potential for the product
2.More competitors coming up with offerings for Sensitive teeth in Indian
Market
3. Tie-up with dental clinics

Competition

Competitors 1. Pepsodent
2. Sensodyne
3. Close Up

4Ps of Colgate

1. Product :-
The product, the Precision toothbrush, is a product that should add value to a
buyers 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 products design and packaging, which in return
will cause the toothbrush to stand out.

2. 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 toothpaste as a mainstream
product rather than a niche product.

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COLGAT 20g 40g 50g 75gm 80g 100g 150g 200g 300g
E ms ms ms s ms ms ms ms ms

10rs ---- 90rs ---- ---- 120rs 145rs 180rs 280rs

Dental
cream
--- --- 90rs --- 110r 110rs 155rs ---- ---
Max fresh
s
---- ---- --- 35rs --- --- 165rs --- ---
Total
--- 70rs --- --- 110r 130 --- --- 310rs
Sensitive
s
--- 40rs --- --- --- --- --- --- ---
Kids
--- --- --- 27rs --- --- 153rs --- ---
Advance
whitening
---- --- 84rs ---- ---- 130rs ---- 225rs ----
Active salt
--- --- --- --- --- 120rs --- 228rs ---
Cibaca
--- --- 94rs --- --- 130rs --- 255rs ---
Herbal
--- ---- ---- ----- --- --- 155rs 260rs ---
Fresh
energy gel

3. 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.

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 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 offices, 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.

SWOT Analysis of Sensodyne with USP, Competition, STP (Segmentation, Targeting,

Positioning) - Marketing Analysis

Sensodyne

Parent Company GSK

Category Oral Healthcare

Sector FMCG

Tagline/ Slogan Worlds no. 1 sensitivity toothpaste

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USP helps relieves the sensitive teeth problems

STP

Oral care products- toothpaste, toothbrushes, mouthwash and dental

Segment floss

Target Group Middle and upper class

Positioning Recommended by all the dentists worldwide for sensitive teeth

SWOT Analysis

1. Very well accepted in the market and enjoys the trust associated
with GSK brand.
2. Testimonial ads from doctors have worked well to strengthen the
brand.
3. It created a minor sub-category in toothpaste segment and the
only brand available in the category
Strengths 4. Due to strong parent brand, good distribution and availability

1. Not a very strong brand in emerging economies compared to

normal toothpaste brands
Weaknesses 2. Little more expensive than competitors

1. Can leverage on the unique positioning and differentiation it has

achieved
2. People are not aware of the special needs for sensitive teeth,
create awareness and capture large market.
3. The brand can target kids and youth also since they frequently
Opportunities suffer from such problems

1. Not much awareness in the market regarding the effectiveness of

the product.
Threats 2. Lot of competition in the market from regular toothpaste brands.

Competition

1. Pepsodent
Competitors 2. Colgate Sensitive

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Inference from BCG Matrix of Colgate

The matrix will position the products/services in two ways:

1. The rate of growth of the market;

2. The market share of a product offered facing the competitors.

Following chart shows the product line of Colgate

PARTICULARS COLGATE SENSITIVE SENSODYNE TOOTHPASTE

TOOTHPASTE
Year launched 2009 2011
Objective Cure teeth sensitivity Cure teeth sensitivity
Price per 40g tube Rs.35 Rs.42
Target customers Middle-to-high income group Middle-to-high income group

Place Major cities Major cities

Consumer behavior Reduced consumer Widely accepted

In the above table we can infer that though Colgate sensitive toothpaste was launched
previously than Sensodyne toothpaste and despite of having similar product benefits at a
slightly higher price, Sensodyne managed to steal Colgate toothpaste market.

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 PARTICULARS COLGATE SENSODYNE SENSODYNE
SENSITIVE PRO RAPID RELIEF REPAIR &
RELIEF PROTECT
TOOTHPASTE
Year launched June 2011 July 2011 April 2013
Objective Rapidly cure Rapidly cure Proven to repair the
sensitivity sensitivity sensitive areas of
teeth
Price per 40g Rs.70 Rs.60 Rs.80
tube
Price per 80g Rs.120 Rs.120 Rs.150
tube
Trademark Pro Argin technology Pro Argin Pro Argin
technology (creating technology (creating
mineral like coating) mineral like coating)
Target Customers Super premium Super premium Super premium
segment segment segment
Place Major cities Major cities Major cities
Promotion Integrated marketing Integrated marketing Integrated
campaign campaign marketing campaign

As the above table shows sensodyne launched back to back to super premium class
products in order to promote and capture the market. With the same market strategy that
Colgate has followed.

Recommendation
1. Colgate needs new branding strategy. Existing strategy of just one brand might not
be sufficient to sustain and grow the market share in the toothpaste market. So
recommending launching two new brands one each for the gel and sensitive
segments.
2. Its time for Colgate to reinvent itself to being tuned with present times. Urban
youth are becoming more individualistic as such. Concept of family brand and
family pack should fade. So Colgate should incorporate this trend in market
campaign.
3. Colgate can go for multi-branding strategies.
4. Colgate should also differentiate itself with its packaging.
5. Innovating bundling (Colgate toothbrush should be promoted through bundling
with Colgate sensitive pro relief toothpaste)
6. A competitive advantage can only be maintained through continues innovation
and appealing new features (value add) not through price cuts.
7. Colgate should increase its rural penetration by targeting customers for Colgate
visible Wight and Colgate herbal.

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