A Report On Consumer Behaviour Towards Colgate Colgate Palmolive (I) LTD
A Report On Consumer Behaviour Towards Colgate Colgate Palmolive (I) LTD
of US$ 9.1 billion Colgate Palmolive company ,USA, has been a leading player in oral care category for over 5 decades in India with sales $9.9B and net income of $1.42B in financial year 2003 Colgate is the dominant player in the oral care market with a market share of 50.6% in the tooth paste, 45%in toothpowder and 30.8% in tooth brush segments .Colgate has significant presence in protection social interaction and economy segment. CPIL derives around 85% of its revenues from the oral care category .Colgate had a market share of about 65% till the late 80s .With the increased competition ,Colgates market share was considerably hit in the early 90s and so to salvage its position Colgate took over Ciba Geigys ,Cibaca brands oral care business. But Colgates market share continued to fall and currently stands at around 50.06% from a high of 65% in 1995 .Colgate responded to close up by Colgate gel in 1990, which achieved an 8% market share by 1991.In its successful drive the new close up also managed to create a new social interaction segment and this segment recorded strong growth with close up maintaining leadership and Colgate gel at number second position. CPIL s focus in urban markets is primarily on conversion of non users ,encouragement of the habit of brushing twice a day and meeting the evolving needs of consumers by providing a variety of differently formulated tooth paste offering unique benefits .Its traditional strategy of targeting non users in rural India and converting them into consumers of tooth paste has been one of Colgates strong points .The company has novel ways to enhance awareness of oral hygiene in the interior areas of the country .The campaign will include wall paintings rural van operations ,puppet shows .Colgate spend Rs.4 crore every year to preach the value of the using branded oral care products to villagers .Using 72 vans ,covering 78000villages per annum .Using a 30 minute film as its communication vehicle ,the company distributes for free an average of 7 million toothbrushes every year to initiate toothpaste usage. The company maintained a rural thrust to bring non users into the consumption bracket and Colgate has also launched toothpaste and toothpowder in sachets with a free toothbrush thrown in to offer an entry pricing point for the low spending customer. Colgate launched fresh stripe gel nationally in May 1998 with its alterating red and white stripes with red gel containing actrinse for fresh breathe and white stripes containing actiwhite to lend sparkle to teeth. Colgate Palmolive India then decided to with draw four sub brands of its toothpaste ,Colgate double protection ,Calciguard ,fresh mint and fresh stripes due to poor market share and introduce new variants .The company had invested Rs 20-25 crore in these four brands .The company focuses on new sub brands Colgate dental cream and Colgate herbal. Colgate has launched its cibaca toothpaste as all new Colgate cibaca top .It is targeted at towns with a population of less than one lakh.
Products of Colgate: Tooth powder segment Colgate toothpowder Economy Segment Colgate Capacitor Natural Segment Colgate Herbal Regular paste segment Colgate dental cream Breathe freshness Segment Colgate Gel Oral hygiene Segment Colgate sensitive care Top end users Colgate total Whitening toothpaste Segment Colgate Sensation Whitening INDUSTRY HISTORY: The history of the toothpaste goes back to 300-500 years before the birth of the Christ but toothpaste and powders first appeared in printed pots round the 1860s.By the 1880smany chemists were making their own toothpaste packaged in their one printed pots .The date of the first manufactured toothpaste was 1873 but it was not until 1896 that a product similar to that on the market today appeared in 1873,colgate introduced aromatic toothpaste in ajar in the U.S in 1896,Colgate dental cream was the first to be packaged in collapsible tube similar to those in use today .The number and varieties of toothpaste being manufactured by high street chemists started to decline as large scale manufacturing chemists were able to supply such outlets with mass produced toothpaste sold in metal tubes .Toothpaste today is chiefly packaged in plastic rather than metal tubes and the choice of flavors is fairly uniform OVERVIEW OF INDIAN TOOTHPASTE MARKET: The oral sector consists of three main segments Toothpaste Toothpowder and Tooth Brush. Prior to the 80s ,Colgate was the dominant player in the Indian toothpaste market with its leading brand namely Colgate dental cream .The rest of the market was fragmented and some of the better known brands at that time were Binaca,Forhans,Vicco and Close up. In the toothpowder segment Daburs Lal Dant Manzan Red tooth powder and Bandar chaap black toothpowder manufactured by the unorganized segment were the two well known brands. In the early 80s ,Balsara Hygiene s promise was able to achieve a product break through with its positioning of the product on clove oil ingredient .Indians have been traditionally using cloves as a household remedy for cavity problems.Balsara Hygiene introduced another product Babool at a significant price discount catering to the lower end of the market. The late 80s witnessed a significant shift in industry structure and positioning platforms .In 1987, Hindustan Lever was a minor player who had launched close up .Forthans was withdrawn from the Indian market in 1987 due to problems with fluoride formulations .Close up was re launched in 1988 with proposition of gel and mouth wash .The toothpaste market is dominated by white toothpaste followed by gel and then stripes. World wide annual per capita consumption of toothpaste averaged 363 grams while consumers in India used only 107 grams of tooth paste annually .The average annual percapita consumption of toothpaste in India is lower than the world wide average due to a lower average personal income and a lack of consumer education Also recent studies have indicated a high price elasticity of almost 300%for certain mass consumer products i.e. a 10% drop in prices could lead to 30% increase in consumption.
Consumers in the lower end of the market in rural semi urban areas use toothpowder and natural products such as neem, tobacco and black powder for cleaning their teeth. These products are largely manufactured by unorganized sector .From a recent survey it has been found that the upper class consumers in urban areas are looking for specialized product with cosmetic promises like fresh breath, white teeth and functional benefits of controlling plaque, preventing cavity etc.Among tooth paste users about 15% of consumers brush twice a day. The growth in the tooth paste market demand can be attributed to a number of factors .Perhaps the two most important are rising penetration and higher intensity of use .Penetration is driven by purchasing power ,reach of media availability and also price. Growth in the rural areas is driven by conversion of non-users .Various initiatives such as distribution of free samples, low unit price packs in small sizes and conducting oral care education in the rural areas are being undertaken by leading players. Paralleling these trends had been dramatic increase in advertising expenditure and new value proposition introduced by the players in the market .The cumulative of above initiatives had been to increase the consumer awareness in rural areas and conversion of non-users to branded product History of tooth paste Ever wonder where toothpaste and mouthwash came from? Have you ever thought about what people used for toothpaste before the invention of Crest, Colgate or Aqua fresh? (North American brand name toothpastes). Below are some interesting, point form facts and recipes that may help satisfy your curiosity - or spur it on!!
Back in the Days of Buddha....
The activity of keeping the mouth clean dates all the way back to the religious figure Buddha. It has been recorded that he would use a "tooth stick" from the God Sakka as part of his personal hygiene regimen. In 23 - 79 AD the practice of oral hygiene included: Drinking goats milk for sweet breath Ashes from burnt mice heads, rabbits heads, wolves heads, ox heels and goats feet were thought to benefit the gums. (This probably wouldn't go over very well today) Picking the bones out of wolves excrement and wearing them (maybe in the form of a necklace?) was considered to be a form of protection against toothaches. Washing your teeth with the blood from a tortoise three times a year was a sure bet against toothaches as well. Mouthwashes were known to consist of pure white wine, or (get ready for this one) old urine kept especially for this purpose.
The 18th Century:
The earliest record of actual toothpaste was in 1780 and included scrubbing the teeth with a formula containing burnt bread. (A common North American breakfast) Other toothpastes around this time called for: 1 1/2 oz. dragons blood (So that's where they all went!!) 1 1/2 oz. cinnamon 1 oz. burnt alum
Beat the above ingredients together and use every second day. The 19th Century
In the 19th century, charcoal became very popular for teeth cleaning purposes. Most toothpaste at this time was in the form of a powder. The purpose of the tooth powder was not only to clean the teeth, but to give fresh breath. (Hmmm....that idea isn't so outdated!!) The succulent strawberry (still available today) was considered to be a "natural" solution for preventing tartar and giving fresh breath. In 1855, the Farmers Almanac included this recipe for an appropriate toothpaste: 1 oz. myrrh (fine powder) 2 spoonfuls of your best honey (This does not refer to your significant other!!) A pinch of green sage
Mix together and use every night on wet teeth. Toothpaste included: 2 oz. cuttlefish bone 1 oz. cream of tartar 2 drachms drop lake 15 drops clover oil Powder, mix, sift.
The 20th Century
Liquid cleansers (mouth rinses) and pastes became more popular, often containing chlorophyll to give a fresh green color. Bleeding gums became a concern as well as aching teeth. In 1915 leaves from certain trees in South East Asia (Eucalyptus) were beginning to be used in mouthwash formulas.
sodium monofluorophosphate (not to be confused with MSG) color flavoring fluoride foaming agents detergents humectants (prevent the paste from hardening) Herbal toothpastes have gained popularity for people looking for a "natural" toothpaste or for those who don't want fluoride in their dental cleansers. Some herbal toothpastes contain: peppermint oil myrrh plant extract (strawberry extract) special oils and cleansing agents
Hey, didn't we see these ingredients in the toothpastes of the early 19th century?
And the 21st Century....
Your guess is as good as ours!! If the trends of the 20th century continue we should see more toothpastes that whiten and brighten the teeth, are canker sore friendly, and give you the ultimate brushing or rinsing experience.
The more things change, the more they stay the same! The ancient Egyptian recipe for toothpaste
The world's oldest-known formula for toothpaste, used more than 1,500 years before Colgate began marketing the first commercial brand in 1873, has been discovered on a piece of dusty papyrus in the basement of a Viennese museum. In faded black ink made of soot and gum arabic mixed with water, an ancient Egyptian scribe has carefully described what he calls a "powder for white and perfect teeth". When mixed with saliva in the mouth, it forms a "clean tooth paste". According to the document, written in the fourth century AD, the ingredients needed for the perfect smile are one drachma of rock salt - a measure equal to one hundredth of an ounce two drachmas of mint, one drachma of dried iris flower and 20 grains of pepper, all of them crushed and mixed together. The result is a pungent paste which one Austrian dentist who tried it said made his gums bleed but was a "big improvement" on some toothpaste formulae used as recently as a century ago.
Important Features given by ADA:
Fluoride. You should only buy toothpastes that contain fluoride. On the label, this may be called stannous fluoride, sodium fluoride or monofluoride phosphate (MFP). This is the ingredient all oral care professionals seem to agree upon as the basis for using commercial toothpastes. As long as the product has fluoride, it will help maintain oral health. American Dental Association (ADA) Seal of Acceptance. The ADA awards its seal only after reviewing the "appropriate clinical and/or laboratory studies and scientific data." Any toothpaste with the ADA seal has been proven safe and effective. Tartar control. The active tartar-control ingredient, pyrophosphate, has been proven to prevent tartar, but it can't remove tartar already on the teeth. Only a professional cleaning can do that. Some dentists say tartar-control pastes can cause mouth irritation, and do not do enough extra to warrant the risk of this irritation. Baking soda. Despite all the hype about baking soda toothpastes, there is no proof that they have any effect whatsoever. Some dentists warn that the baking soda is far too abrasive for continual use, and may actually lead to gum problems and irritation in the mouth. Some consumers, however, like the taste and feel of baking soda in the mouth. Peroxide. While the ADA believes current levels of peroxide in toothpastes are safe, some dental experts say peroxide can irritate and damage gum tissue. The bubbling may make you feel like you're getting a better cleaning, but there is no scientific proof of this. Desensitizing toothpastes. These work for mild cases of tooth hypersensitivity, but expect to wait four to six weeks before you feel any results. The ADA recognizes two effective ingredients in treating sensitive teeth and gums: Strontium chloride and potassium nitrate. These "block the tube-like channels that pass through teeth and connect to nerves," thereby reducing "the ability of the nerves to transmit pain," says the ADA. Abrasives. These are essential for removing plaque, and are usually in the form of silica. All ADA-approved toothpastes contain mild abrasives. Heavily abrasive
smokers' toothpastes are not recommended by some experts, as they can cause gum recession and damage to tooth enamel.
Whitening ability. As mentioned above, no toothpaste has been proven effective in actually changing the color of teeth. The whitening toothpastes merely clean surface stains, and cannot change the underlying tooth color.
The company recorded 12% sales growth during fiscal 2000. Colgates well-planned strategic marketing and infrastructure investment resulted in strong 11% unit volume growth. This was despite lack of buoyancy in the FMCG sector in addition to the devastating cyclone in Orissa. The transporters strike further impacted the generally depressed market situation. Net operational profit registered excellent growth of 23% during fiscal 2000. The company has taken several steps to strengthen its market leadership and has drawn up aggressive plans for the rest of the year to maintain its growth rate. A significant portion of revenue will be reinvested in market support programme for new products and brand equity building. With all these initiatives, the company is confident of recording reasonable growth during fiscal 2001 as well. The government has discriminated between toothpaste and tooth powder, by exempting tooth powder from excise duty w.e.f. March 1, 2000 while that on tooth paste has increased from 8% to 16% though it is an item of use by common man. This levy has increased the price of toothpaste. The exports to neighbouring countries such as Nepal, Sri Lanka and Bangladesh have increased to Rs. 130 mn in fiscal 2000 from Rs. 80 mn in fiscal 1999. Due to the attack on the companys subsidiary in Nepal, the tooth paste plants finishing line was damaged. As a result, production of toothpaste at this plant will be halved until replacement of damaged finished line. The company enjoys a strong brand heritage and brand equity. For 7 th time in past 8 years, Colgate was adjudged Indias 1st brand across all categories in 1999 by A&M annual survey of Indias top brands. It is the market leader in the toothpaste, toothbrush, toothpowder and the shaving cream market. The companys vision is to be innovative leader with its brands in every home. The company plans to focus aggressively on market (coverage) expansion programme. It plans to do this by increasing the width of coverage through rural expansion, increasing the depth of coverage by extending the distribution network to the downscale urban areas / paan shops / kiosks, by leveraging the companys distribution capacity and improving customer service. The companys rural expansion programme will be the key thrust area for delivering volumes and competitive advantage. It targets 60,000 villages which are under the programs direct coverage. It has a dedicated rural sales organisation in key states. Operation Jagruti, is helping the company increase its oral care penetration in rural areas synergistically with physical reach. The operation involves conducting village consumer contact programmes, creating awareness about the need for oral hygiene,
increasing product penetration by generating product trials and seeding products in village outlets by exploiting Shandies / Haats and unconventional rural media to broaden consumption.
The companys School Dental Health Programme was started in 1976. The programme involves educating school children by professional dentists. It involves teachers training programme and conducting dental check-ups and Healthy Teeth Contests in schools. Since 1976, the program has reached 15 million school children in over 33,000 schools in 112 towns. For past 25 years, the company has had a partnership with the Dental Profession. Through this, Colgate has reached 17,000 dentists (total practitioners 28,000) in 1,280 towns. "Colgate Total" is the only premium toothpaste brand endorsed by Indian Dental Association. The key to success in emerging markets, is the ability of the company to make available its products at affordable prices. Since it has revitalised Colgate Dental Cream, the product has gained market share. It relaunched Fresh Energy Gel using breakthrough graphics and advertising, tailored to gain share in urban markets in reclosable sachets. The company launched Colgate Cibaca Top in the economy segment in direct competition to HLLs Aim. Both are priced at Rs. 8 for a 50 gm pack. The company promoted Colgate Tooth Powder through aggressive advertising and packaging innovations like pouches. It relaunched Palmolive Soap three months ago. The platform that it has used for building Palmolive equity is as being a source of world class personal care products. It is a unique brand in India with strong acceptance among men (Shave Foam / Gel / Round) and women (Soaps). The companys distribution consists of 1,400 direct stockists for urban coverage, 220 super stockists and 3,200 rural stockists for rural coverage. Also is has 300 strong field force. Colgate Dental Cream has highest reach in urban India across all categories. It is available in 27 lakh outlets nationally (Urban + Rural). The company directly covers 8 lakh outlets. The company plans to focus on its core competencies. The company is strong in the oral and personal care segment. It has an advantage where analysis, microbiology and packaging is concerned. It is very strong where technical consumer research is concerned. Colgate will develop competencies in key local bundles - e.g. starter forms and new product bundling is in the pipeline. There will be closer linkages with marketing and faster implementation of projects. The future focus will be to target total reduction in total delivery cost, tackle the issue of importing substitutes for key quality ingredients, going in for an efficient freight management program and improving vendor management for cost effective sourcing. The company has implemented a SAP - ERP package. This has resulted in increased connectivity which includes customer relation, demand forecasting and development of e-commerce systems. It has implemented Project Intell which will increase connectivity between distributors and the company.
Colgate Total toothpaste is a good toothpaste because it contains the anti-bacterial ingredient Triclosan. It has a germ-fighting ability that lasts for up to 12 hours after you brush. Colgate Total has also become the first toothpaste accepted by the American
Dental Association for the prevention and reduction of bad breath. It has been shown to reduce bad breath up to 51% for 12 hours after brushing. Toothpaste that contains sodium pyrophosphate which is the most commonly-used tartar control agent in toothpastes, only limits tartar above the gumline. It has no effect on the development of tartar below the gumline. Tartar below the gumline is a far more serious problem. It provides an excellent hiding place for the kind of bacteria that can cause periodontal disease. In addition, it is not uncommon for people using tartar-control toothpaste to develop tooth hypersensitivity. Your teeth can become very sensitive to temperature extremes, especially cold. Colgate About their Vegetarian Products One of Colgate's three global values is Caring, especially for our consumers. One of the most important ways we demonstrate that value is by providing our consumers with information to help them choose the right products to meet their specific needs. For vegetarian consumers, Colgate offers a large selection of products free of animalderived ingredients. With more consumers seeking such products every day, Colgate is committed to making it easier for consumers to identify and select these products. All Colgate Toothbrushes are free of any animal-derived ingredient.
Regarding Colgate toothpaste, the information below may be helpful to you. The following products do not currently contain glycerin or contain only synthetic or vegetable sourced glycerin: All Colgate Toothpastes for Children (Kids, Junior, My First -- all variants) Colgate Cavity Protection Winterfresh Gel Colgate Cavity Protection Great Regular Flavor (2.7 oz.) Colgate 2-in-1 Toothpaste & Mouthwash Fresh Mint, Icy Blast Whitening, Whitening and Tartar Control Colgate 2-in-1 Kids Toothpaste & Mouthwash: Watermelon, Bubble Gum, Fairly Odd Parents Colgate Fresh Confidence with Whitening Toothpaste Colgate Herbal White Fresh Mint Toothpaste Colgate Sparkling White Cinnamon Spice Gel Colgate Max Fresh Toothpastes
About triclosan : Triclosan is a synthetic antimicrobial agent, which is classified as a Class III drug by the Food and Drug Administration (FDA). As the result of its broad-spectrum bacteria-fighting ability, it has found increasingly popular use in personal care products, cosmetics, antimicrobial creams, acne treatments, lotions, hand soaps, and dish soaps. It is also used as an additive to plastics, polymers, textile, and implantable medical devices like kitchen tiles, children's toys, cutting boards, toothbrush handles and hot tubs. Triclosan is most often used to kill bacteria on the skin and other surfaces and is sometimes used to preserve products including food. The safety of triclosan has long been questioned in regard to environmental and human health. While the companies that manufacture products containing this chemical claim that it is safe, the United States Environmental Protection Agency (EPA) has registered it as a pesticide. The chemical formulation and molecular structure of this compound are similar to some of the most toxic chemicals on Earth, relating it to dioxins and PCBs. The EPA gives triclosan high scores both as a human health risk and as an environmental risk.
The effect of Triclosan on Colgate market: Some facts
Toothpaste producer Colgate said it would not recall its products amid reports in the Chinese media that its toothpaste contained a chemical that might cause cancer under certain conditions.
Colgate-Palmolive (Guangzhou) Co. issued a statement saying its products had been certified by health and drug authorities worldwide, and were safe and effective.
"A large quantity of scientific research and more than a decade's use by our global users showed our products are safe," said the statement.
It said that the testing results published by the Evening Standard in the United Kingdom did not involve toothpaste or any warning against Colgate.
A Crest toothpaste produced by Procter & Gamble's Guangzhou branch was also found to contain triclosan.
Both Colgate and Crest remain on the Chinese market but are seeing a decline in sales volume.
An online survey on the Web site www.sina.com.cn showed that more than 90 percent of those surveyed had lost their trust in Colgate products.
Only 5,906 people of the 60,025 surveyed said they would continue to use Colgate products.
Colgate accounts for more than 30 percent of the toothpaste market share in China while Crest has a share of about 15 percent.
The two famous brands also occupied about half of the global toothpaste market, Chinese media said.
Some supermarkets in Shanghai began to refund consumers, the Shanghai Morning Post reported.
A saleswoman in one of Shanghai's Carrefour supermarkets on Wuning Road said she had received notice to refund those consumers who asked to return Colgate Total Plus Whitening, one of the products that contains triclosan.
The notice promised to refund consumers even if the product had been used, so long as the consumer had the receipt.
The saleswoman said she received two refund requests Tuesday at the shopping center.
The problem was first reported by the Evening Standard in the United Kingdom, citing research results from Professor Peter Vikesland of Virginia Tech University in the United States.
The U.K. newspaper said that many antibacterial cleaning products, including dishwashing liquid and handwashing soap, were implicated.
It said researchers had discovered that triclosan, a chemical in the products, could react with water to produce chloroform gas. If inhaled in large enough quantities, chloroform can cause depression, liver problems and, in some cases, cancer.
Marks & Spencer confirmed last week it was removing products containing triclosan from all its stores in the United Kingdom.
But Peter Vikesland said Monday that a decision by British retailer Marks & Spencer to take triclosan-enhanced toothpastes off its shelves was "an apparent overreaction."
Some Chinese scientists and experts also echoed Peter Vikesland's view that such an overreaction or panic was not necessary.
Professor Wu Weikai of the China Center for Disease Control and Prevention said Tuesday he believed the risk posed by use of the toothpaste is almost "negligible," since triclosan is only present in very small amount in toothpaste, and the chloroform produced when it is mixed with chlorinated water is also minimal.
Chen Yulian, director of the public health college in Nanjing Medical University, said the public need not panic about the issue.
"Media reports on such issues should be careful as we do not know what exact effect the products would have on human health," Chen said.
Chen said a safety assessment from an authorized government department was necessary to tell the public what to do.
No authorized government department has issued a statement on the toothpaste cancer scare.
The news office of the national Ministry of Health said that the ministry was responsible for food and cosmetics but not toothpaste.
However, toothpaste products are classified as cosmetics in many Western countries and some containing fluorine are listed in the Over-the-Counter category, according to a report by the Shanghai-based daily newspaper Wenhuibao.
Chemicals in toothpaste might cause more severe damage to people than common cosmetic products, the report said.
The General Administration of Quality Supervision, Inspection and Quarantine said Tuesday both they and the Standardization Administration of China had begun looking into the case.
The agency was quoted as saying that the process would take some time before an accurate and reasonable judgment could be made.
China's national toothpaste standard, GB8372, makes no stipulation on the amount of the antibacterial compound triclosan allowed in toothpaste, and tests on the products focus on the presence of microbes and heavy metals, according to industry sources.
A People's Daily report said Wednesday that the Chinese media was overreacting to the issue, as no major international news agencies had reported the toothpaste scare.
Colgate market: Brighter future for toothpaste The toothpaste market is undergoing a resurgence, with manufacturers playing to the new trend for inexpensive cosmetic surgery. The combined market is worth about $208 million with consumers happy to pay for more upmarket pastes that promise whiter, brighter smiles. To take advantage of the new demand, Macleans has launched a large marketing campaign for its Macleans Revitalise 40+ which addresses several of the symptoms of oral ageing. The campaign advises that the product should be part of a wider oral care routine.
"As you age, more attention needs to be paid to maintaining optimum oral health," the campaign says. Colgate has a dominant 63 per cent market share, Macleans has 18 per cent and Sensodyne (also GSK) has 7.5 per cent. No-name brands take the remaining 3 per cent of the market. The most popular pastes are the base items, which is dominated by Colgate Fluoriguard, Macleans Protect, Aim and Cedel, which cover about 35 per cent of the market. Premium pastes comprise about 25 per cent of the market and the major brands are Colgate Total, Macleans Active Whitening paste, Colgate Whitening and Macleans Advanced Whitening Therapeutic. A total of 42 per cent of sales go through Woolworths and 35 per cent through Coles and BiLo. Only a tiny proportion of sales come from pharmacies. All sectors are very price-driven - both Colgate and Macleans discount extensively. More than half of all toothpaste is sold on promotion. Colgate spends significantly more on advertising, than Macleans. Consumers view Colgate as the benchmark for protection and therapy. The relationship they have with Colgate is like that of child and parent - as in you do what you are told with Colgate! Colgate continues to extend its market share of toothpaste, and now controls 50.4% of the market. Colgate Irelands Lorna OMeara says the brand has been built on a constant stream of successful new products, with added benefits for consumers. About 14% of Colgate products sold are ones that did not exist three years ago, and the company has added 7 million to the toothpaste market via NPD (New Product Development) during the past three years - no other brand on the market can claim that level of success, she says. One of the new products, Colgate Total plus Whitening, was recently launched with a new TV campaign and outdoor media, quickly achieving 3% market share. Other recent successful launches include Colgate Fresh Confidence, which was introduced in mid-2000 and now has a steady market share of 3.1%. Another is Colgate Herbal, which combines oral science with the freshness of natural herbs. It was supported by TV advertising and has already achieved a 2.2% share. The nations No.2 toothpaste - but possibly the fastest growing due to new product launches and marketing support is - GlaxoSmithKlines Aquafresh. A new look and improved formulation was introduced across the entire range of Aquafresh family variants recently, extending to include the premium all-in-one product Aquafresh Multi-Active. GlaxoSmithKline plans to make its biggest ever investment in the brand in 2002, with an extensive marketing campaign.
Also one of the top-selling brands in the sector, Macleans experienced continued brand development in 2001. The latest range offers a choice of specialist variants and premium products including new Macleans Complete Care. The brands strong positioning in the whitening toothpaste market has also been further boosted by the recent launch of new Macleans Ice Whitening Gel toothpaste, specifically designed to appeal to a youthful and appearance conscious audience. Sensodyne has been trusted by millions of tooth sensitivity sufferers worldwide for more than 30 years. With one in four Irish people suffering from sensitive teeth, the brand continues to be popular in this country and performed particularly well in the market during 2001. Ongoing demand for the brand continues to be driven by Sensodynes unrivalled product proposition to relieve the pain of sensitive teeth. As the first oral care company to introduce whitening variants to the mainstream toothpaste market, GlaxoSmithKlines Aquafresh, Sensodyne and Macleans Whitening continue their strong position in this booming sector. A futuristic and striking packaging design ensures that Aquafresh Whitening in particular strongly appeals to the key target market of appearance conscious consumers. Set to further strengthen the brands position in this fast-growing segment, new Aquafresh Whitening Multi-Action was launched last year - the first All-in-One Whitening toothpaste, combining whitening benefits with complete care protection for teeth. The new product is already experiencing a very strong demand, especially among younger consumers.
Internet has great potential as a marketing tool for our brands, said Jack Haber, Vice President, E-Business, Colgate-Palmolive. And as a lead marketer we have to harness the Internets potential to connect with our consumers to influence purchasing decisions and to increase brand awareness. Colgate supported its Total Toothpaste brand with print, television, and online advertising. The objective of the campaign: increase purchase intent. The target: adults, ages 18-49, who are occasional or non-users of Colgate Total. The Challenge By measuring each mediums ability to increase purchase intent and enhance key branding metrics compared to its cost, Colgate wanted to identify the optimal media mix. How They Did It Through traditional testing methodology and analysis, Colgate determined the absolute again that advertising causes for different branding metrics. The company allocated more money to online efforts, then conducted ROI analysis, which studied the branding impact and dollars spent in each advertising medium. What They Found Colgate's data showed that it cost23% more toencourageconsumer purchase using TV alone
Compared to using TV in combination with on line. For their multichannel campaign, reallocating marketing dollars to online advertising would be significantly more costeffective at driving purchase intent and enhancing key branding metrics. By allocating 7% of media dollars toonline, purchase intent increased 3.8%,a 9% increase over a plan that used only television and print. By increasing online allocation to 11%, purchase intent increased to 4.3%,a 20% increase over a plan that used only television and print. The company achieved significant branding lifts without spending any additional money. Online is also an effective way to grab the attention of hard-to-reach television consumers with lighter media usage habits. In fact, by using just TV and subtracting those exposed to online, purchase intent would have increased just 3.4%. Theres been an explosion of toothpastes that have the word "whitening" in their name. However, experts insist that no toothpaste can change the color of your teeththey can only work to remove stains so that your natural tooth color shows through. Reviewers tests show that no product actually "whitens" teeth. Neither the Food and Drug Administration (FDA) nor the ADA actually defines what "whitening" means, so any manufacturer can use the term on product labels. The only way to substantially whiten teeth is to see your dentist and receive a professional whitening treatment. Toothpaste is only a means to clean and protect teeth from cavities and decay. The products chosen most often by reviewers simply do a good job of cleaning teeth. We found some recommendations for organic or natural toothpastes, such as Toms of Maine, Enamel Saver, and Green People. These, however, are not always readily available in grocery stores, and they do not do any more or less for your oral health. But if choosing planet friendly or preservative-free products is important to you, they appear to be good choices. Cost is often higher for these brands. Colgate Total (*est. $3.50/7.8 oz.) did not rate as highly as other pastes in one comparative test for removing superficial stains, as it is not a highly abrasive formula. Even so, its added benefits of continued protection due to ingredients Triclosan and Gantrez are often enough to make it a top recommendation. Triclosan is an antibacterial agent that is often found in hand cleaners and soaps. Gantrez is an ingredient which allows the Triclosan to stay on teeth for a longer period of time. Experts say Colgate Total continues to protect teeth during the day, which is not true of regular toothpastes. This added protection might outweigh its merely adequate
scores for stain removal. Lower abrasiveness makes it a good choice for those with sensitive teeth.
Since Colgate Total was recommended by several other reviewers, none of whom substantiated claims about the paste's mediocre stain removal ability, and since it has earned the ADA seal for decay prevention, tartar control, gingivitis prevention and plaque control, we included it in ConsumerSearch Fast Answers. Reviewers, such as Kimberly A. Loos, DDS of Parents Place.com, say Colgate Total is the last toothpaste to add anything radically new to the world of toothpaste since fluoride was introduced. Aside from price, taste and consistency preferences, reviewers say abrasiveness is an important consideration, especially for those with mouth and teeth sensitivities. Abrasive agents are essential for removing plaque, and are usually in the form of silica. All ADAapproved toothpastes contain abrasives. However, toothpastes vary in degree of harshness. While more abrasive toothpastes often are better at removing plaque and stains, they can also irritate sensitive teeth and gums. Save Your Smile.com includes an interesting chart rating abrasiveness of toothpastes, and of regular brands, Colgate has the lowest abrasiveness in the chart.
Brands such as Crest and Aquafresh are significantly more abrasive than Colgate Total, which may not be a problem for those without tooth sensitivities. Even so, experts say that a more abrasive toothpaste, coupled with too-aggressive brushing, can wear away tooth enamel, causing the underlying dentin to be exposedthat means your teeth could become more sensitive to hot/cold foods and sweets. Since dentin is less white in color than tooth enamel, your teeth could appear more yellow. Most people probably wont have problems using more abrasive toothpastes, as long as they are used properly, and without aggressive brushing. Toothpastes containing baking soda and higher amounts of silica are generally more abrasive, and for sheer cleaning ability, do a better job. In a major comparative roundup, Colgate Baking Soda and Peroxide Whitening with Tartar Control (*est. $3.00/8.2 oz.) beat out thirtyeight other brands for overall cleaning ability, bacterial inhibition and fluoride release. While some consumers dislike the baking soda and peroxide combination, others find the taste and texture particularly appealing. Some dentists warn that with regular use and aggressive brushing, baking soda can cause gum damage due to its higher abrasiveness. This toothpaste does not contain Triclosan, the ingredient in Colgate Total that has been proven to fight gingivitis, but it does help fight tartar build-up. And for sheer cleaning ability, Colgate Baking Soda and Peroxide beats Colgate Total. For some with tooth and mouth sensitivities, a low-abrasiveness toothpaste like Colgate Total is not enough to eliminate discomfort. Experts such as Kimberly A Loos, DDS and Jeffrey Kohlhardt, DDS (of Dental Resource.com) say that toothpastes containing potassium nitrate work well for those whose teeth are sensitive. According to Dr. Loos, potassium nitrate influences the minerals in your saliva to crystallize and cover the pores in your tooth. Regular brushing with a toothpaste containing potassium nitrate should gradually improve sensitivity. Both Loos and Kohlhardt cite Sensodyne (*est. $5.00/4 oz.) as a good choice. Canker sores are a problem for some people. These are small, painful sores in the mouth that can be aggravated by salt and citric acid, among other food ingredients. DentalZone.com says that one common toothpaste ingredient can also contribute to the formation of canker sores sodium lauryl sulfate. This ingredient is used in nearly all toothpaste as a foaming agent so that toothpaste stays in your mouth. Studies have shown it to aggravate canker sores in some who are susceptible to them. Choosing a toothpaste that does not use sodium lauryl sulfate may help with canker sores. However, there are not many available. DentalZone.com recommends Enamel Saver (*est. $8.50/4 oz.), and consumers posting to Drugstore.com rave about Rembrandt for Canker Sore Sufferers (*est. $7.00/3 oz.).
while now. It is probably the increases in selling prices (see accompanying piece) which kept the value growth going for so long. The toothpowder and toothbrush markets shrank at a much higher rate. De-growth by downtrading Why is the market for oral care products shrinking? The favourite explanation, of course, is that consumers have been cutting down on their consumption levels because of the economic and agricultural slowdown; rural demand accounts for a chunk of the market. Around 32 per cent of toothpaste demand originates from rural areas, with 68 per cent coming from urban areas, while the Rs 500-crore toothpowder market depends almost entirely on rural demand. While HLL has a presence mainly in the toothpaste and toothbrush markets, Colgate has a significant presence in toothpowders as well. Therefore, it has a larger exposure to the rural market. It may be difficult to believe that consumers would actually stop buying toothpastes or toothpowders to save on their monthly bills. But it is certainly plausible that low-income consumers will cut down on the quantity or frequency of usage. The sharp drop in income levels appears to have forced users to look for the cheapest possible substitute to their current brand, leading to downtrading within the category. This explanation is indeed supported by the fact that a debutant brand such as Anchor White has been able to build a significant market share mainly by aggressive pricing and distribution in non-urban areas. Even for the larger players, low-priced brands, such as Cibaca Top and Colgate Herbal, have been the growth drivers. Aggravated by promotions? The shrinkage in the market has probably been aggravated by the pricing and promotional strategies of the players. The sharp increase in the selling prices of the key toothpaste brands over the past three years (which is prompted partly by excise duty and sales tax increases) could have hastened the trend of consumer downtrading. But Mr.Pradeep Banerjee, Category Head, Oral Care, at Hindustan Lever has a different opinion. "The price hikes have been in line with inflation; and we have largely held prices over the past year" he says. The substantial free grammage distributed by way of promotions may have dented the volume offtake, persuading consumers to stock up during the offer period, postponing their next buy. This would, in fact, explain why the shrinkage in volumes of toothpastes accelerated towards the end of 2001, just after the promotional offers were at their peak. If the toothpaste segment was impacted adversely by the downturn, the lower-end toothbrush market has been severely dented. Given that toothbrushes are low-cost, high-margin products, they have been the favourite add-ons in promotional campaigns. Several toothpaste brands have tagged "free toothbrush" offers to sales. These offers have had a direct impact on toothbrush sales. In 2001, Colgate's toothbrush portfolio shrank 14 per cent in value terms, and HLL's 4 per cent. Pepping up growth The shrinking market size has spurred the two largest players in the market into frenetic activity to pep up growth rates. The players first trained their guns on enhancing the penetration level, that is, bringing new users into the toothpaste segment. Toothpastes now reach only 67 per cent of the urban households and 33 per cent of the rural households, and there is considerable scope for market expansion through the conversion of toothpowder users. There was also potential for converting users of red toothpowders to white toothpowders. For much of 1999 and 2000, both Colgate and HLL pepped up their rural distribution network and refocussed on low-unit packs (smaller packs of toothpastes at
affordable prices). However, the crisis in the agricultural economy appears to have impeded these efforts at penetration. The break-up of the toothpaste market between urban and rural areas has not changed significantly during the period. Nor has volume growth in toothpastes or white toothpowders, picked up to any significant extent. By the end of 2001, players redoubled efforts to persuade existing consumers to use more of the product. Many recent toothpaste promotions focus on offering the consumer additional quantities of toothpaste at the same price. Much of the action here has been in the larger, 150 and 200 gm, pack sizes which have traditionally accounted for 60-70 per cent of the market. Makeover of existing brands Below-the-line promotions have held the centrestage in the oral care market and portfolio rationalisation has kept new launches to a minimum. But marketers have milked their existing brands through periodic re-launches. For instance, HLL has tried to rejuvenate the Close-Up franchise through the launch of Close-Up Tingly Red and Eucalyptus Waves variants. The company has also refurbished the message for Pepsodent by launching a child-centric campaign highlighting the paste's germ-fighting abilities. Even some of the more successful brands have seen periodic makeovers. Colgate has re-launched its Blue Gel variant as Fresh Energy Gel in a transparent tube. Even the recent entrant, Colgate Herbal, has been relaunched with a new formulation. It is early days yet to evaluate the efficacy of the Close-Up and the Colgate Herbal relaunches. But Colgate claims that Fresh Energy Gel has seen its market share climb from 4.1 per cent to 5.7 per cent after its re-launch. HLL claims that Pepsodent has beaten the shrinking market to grow by 5.2 per cent in the first half of 2002. With focus on power brands emerging as the new mantra for growth, there have hardly been new product launches from the two major players over the last couple of years. Even Colgate Herbal and Cibaca Top, among the few new launches over this period, appear to be part of a strategy to protect Colgate's existing brands. This strategy has helped Colgate score a few points over HLL in the ongoing battle for shares between the two largest players in the oral care segment. The HLL Vs Colgate tooth paste: Experts recommend Colgate Total more often than any other toothpaste. According to both the Food and Drug Administration and the American Dental Association, this was the first toothpaste on the market to include the antibacterial ingredient Triclosan, which has been proven effective for fighting gum disease (gingivitis). Total contains another ingredient Gantrezthat allows Triclosan to remain active between brushings, even after you eat or drink. Colgate Total is not recommended for kids under 6 years old, since its antibacterial properties have not been tested for young children. In a major comparative roundup, this toothpaste beat out 38 other brands for overall cleaning ability, bacterial inhibition and fluoride release. While some consumers dislike the baking soda and peroxide combination, others find the taste and texture particularly appealing. Also, some dentists warn that with regular use and aggressive brushing, baking soda can cause gum damage due to its higher abrasiveness. This toothpaste does not contain Triclosan, the ingredient in Colgate Total that has been proven to fight gingivitis, but it does help fight tartar build-up. And for sheer cleaning ability, Colgate Baking Soda and Peroxide beats Colgate Total. This formula is approved for kids older than 2 years of age. The Hindustan Lever-Colgate toothpaste war
It is a war that is bound to make anyone froth at the mouth and has shades of the United States-Europe rivalry. The current war between the two dental care giants, Hindustan Lever Limited (a subsidiary of Anglo-Dutch multinational company Unilever) and ColgatePalmolive (the Indian subsidiary of the American giant), has all the ingredients of a Hindi potboiler that will make even a veteran producer like G P Sippy go green with envy. The fracas between the two, one of the many long-running battles to gain ascendancy in the Rs 12 billion dental care market, erupted on August this year when Hindustan Lever launched another toothpaste from their stable. The new toothpaste, New Pepsodent, a relaunch of the old Pepsodent G and Pepsodent 2-in-1 promised consumers throughout the length and breadth of the country to do something which the other toothpaste brands could not do, namely clean more than any other toothpaste. It was the advertisements that Hindustan Lever Limited launched that got the goat of its rival, Colgate-Palmolive: the advertisement promised consumers that it would get protection form tooth decay at 102 per cent more than any other leading brand in the country. Given that the country's consumers are often swayed by advertisements and press campaigns, the wording and the claims caused an immediate uproar. Colgate-Palmolive saw red at the Hindustan Lever attitude that "my toothpaste is better than yours" and geared itself up for a long and intense legal battle. Crying foul, it initiated proceedings with the Monopoly and Restrictive Trade Practices Commission in early November, claiming that the offending advertisement by Hindustan Lever was misleading the consumers. Thundered Colgate-Palmolive Managing Director N Jayaraman, "The advertisements are a blatant attempt to gain leadership through any means." The MRTPC issued an interim injunction to Hindustan Lever, restricting it from comparing its product with other toothpastes. The situation took a turn for the worse after HLL countered by issuing press releases on the MRTPC injunction and still holding forth the superiority of its product. Colgate filed two contempt pleas in the MRTPC against HLL pointing out that the Lever releases deliberately distorted the MRTPC's injunction besides advertising its product. Colgate has sought appropriate MRTPC action against HLL, its officers, employees, and advertising agents for the contempt committed. Acting on the Colgate plea, the MRTPC on November 17 directed HLL to file a reply within three weeks. HLL has also been directed to file its reply to another injunction application filed by Colgate-Palmolive. The Colgate plea said: "It is submitted that millions of consumers are being misled into believing the distorted version of the order passed by this hon'ble Commission and that such unfair trade practice needs to be injected forthwith." According to the Colgate-Palmolive lawyers, the claims made by Hindustan Lever on the research done by the latter to prove its product's superiority was done in a petri dish -- using a limited amount of sample taken from six people mouths after using the toothpaste. The lawyers say the sample taken by Hindustan Lever to determine the level of efficiency of the toothpaste was an extremely small one and only a few germs could be detected, thus invalidating the test. Hindustan Lever, however, claims that its tests were carried out by the University of Leeds and University of Bristol, United Kingdom, and the University of Pittsburgh, United States, which proved the efficacy of the toothpaste and thereby confirming its claim that the New Pepsodent was indeed superior to other leading brands in the market. There is undoubtedly much more than product superiority at stake. According to Jagdeep Kapoor, marketing consultant, HLL is pulling out all stops to ensure that it becomes the number one player in the market. "It has already tasted blood and it is not going to stop in its
endeavours," he said. What has spurred Lever's thrust is the fact that its market share in the dental care market has grown from a mere five per cent in 1979 to an impressive 36 per cent today, whereas Colgate-Palmolive has been seen its market share decline from a dominating 75 per cent to a struggling 56 per cent. One of the factors behind the stupendous rise of Hindustan Lever has been the company's ability to constantly innovate its products and continuously introduce new products, practically every week. Dalip Sehgal, marketing controller, Hindustan Lever, said, "Due to our constant new releases, the other companies feel threatened and that is why they are resorting to any measure (read MRTPC, etc) to stop us." Another aspect is that Hindustan Lever latest market offering, New Pepsodent, is a direct attack on Colgate-Palmolives main brand, Colgate Dental Cream. The New Pepsodent from Hindustan lever is priced at an attractive Rs 17.50 and contains a chemical called tricolsan, a well-known germ fighter. On the other hand, the Colgate-Palmolive brand containing a similar chemical agent is the Colgate Total toothpaste, which is priced at an expensive Rs 32, practically double New Pepsodent's price. Therefore, by keeping the pricing of New Pepsodent so low in the extremely price conscious Indian market, Hindustan Levers is trying to take on Colgate-Palmolives flagship brand, Colgate Dental Care, which contributes 45 per cent to Colgate-Palmolive's entire sales portfolio. While Colgate officials readily admit that Hindustan Levers product is a superior product, it is the use of the "102 per cent" claim that has raised the hackles of the entire ColgatePalmolive management team, and which saw the debate being dragged to the MRTPC courts, with both sides claim and disclaiming that their tests were superior. The claim is also causing confusion in the entire marketing community. How did Hindustan Lever arrive at the 102 per cent figure? What did they use or is it just a figment of their imagination? The MRTPC judge, while restricting Hindustan Lever from further using the "102 per cent" in any future advertisements, has called for an independent body to test the veracity of the Hindustan Lever claim. J D Singh, professor of marketing at Delhis International Management Institute, saw a motive in the advertisement. "Hindustan Lever's lack of explanation shows their desperation to sell a product they were not sure about," he said. And while the entire oral health care industry awaits the final hearing, which is scheduled for December 10, there is no doubt that the wrangling between the two dental care market leaders is far from over. The question now is when will the next salvo be fired by Colgate-Palmolive, clearly perceived at the receiving end of Hindustan Lever aggressive marketing strategy and which is waiting eagerly in the wings to retaliate. Till then, the entire country can enjoy the lull before another the next storm breaks out. Facts Toothpaste is an abrasive paste (an abrasive is something that will scratch or grind something) In the case of toothpaste it grinds away the leftover food and plaque on your teeth, with the help of your toothbrush. The abrasive in toothpaste is called Dicalcium phosphate dihydrate and it makes up about a 5th of a tube of toothpaste The other main part of toothpaste is the paste which is made up of water and things to help it spread through your mouth easily like a type of detergent which makes it foam
and something to make your teeth The flavours of toothpaste are usually from plants like Spearmint and Peppermint most toothpastes are sweetened with artificial sweetener. Before toothpaste was invented people used all kinds of dry, rough things as an abrasive to clean their teeth things like crushed eggshell, pumice the burnt hooves of animals!!! Before toothbrushes were invented people used twigs or their fingers to brush their teeth. A couple of hundred years ago when people didnt know about brushing their teeth most people had black rotten teeth especially if they ate lots of sugar like Queen Elizabeth the first.
Colgate may cause cancer: Toothpaste brand Colgate could produce a cancer-causing gas when mixed with water, a U.S. researcher warned. Triclosan, a chemical in the product, could react with the chlorine in tap water to produce chloroform gas, according to Peter Vikesland, assistant professor in civil and environmental engineering, of the Virginia Polytechnic Institute. Chloroform can cause depression, liver problems and, in some cases, cancer if inhaled in large enough quantities. The General Administration of Quality Supervision, Inspection and Quarantine of China said it was closely watching the matter. China forbids the use of triclosan in cosmetics, but had no rule on its use in toothpastes. Chinese experts said it was not necessary to panic. Professor Wu Wei'ai with the Chinese Center for Disease Control and Prevention said the toothpaste could produce minute amounts of the chloroform gas. "If you brush your teeth three times a day, you might breath a very limited amount of chloroform. So it's not necessary to panic," said Prof. Wu. However, Giles Watson, a toxicology expert at wildlife charity WWF, warned the long-term effects of exposure to chloroform were still unknown and advised consumers to check the tubes before buying products.A British newspaper Evening Standard investigation found dozens of products on supermarket shelves containing triclosan, including Colgate, Aquafresh, Dentyl and Sensodyne.Marks&Spencer was removing products containing triclosan from all its stores. Asda said it was investigating the problem and would be urgently talking to its suppliers, according to the Evening Standard.Colgate said it held almost one-third of China's toothpaste market.Colgate's sales in Shenzhen are not influenced at the moment. BRANDS AND THEIR PRICES:
Colgate cibaca Top Colgate cibaca Top Colgate Super Shakthi Colgate Super Shakthi Colgate Super Shakthi Colgate Super Shakthi Colgate Super Shakthi
Colgate fresh energy sparkling reed gel 200gms 62.50 Colgate fresh energy sparkling reed gel 150gms 45.00 Colgate fresh energy sparkling reed gel 150gms 42.00 Colgate fresh energy ice blue gel Colgate fresh energy ice blue gel Colgate fresh energy ice blue gel Colgate fresh energy ice blue gel Colgate fresh energy ice blue gel Colgate fresh energy ice blue gel Colgate fresh energy gel Colgate total Colgate total Colgate herbal Colgate bubble fruit Colgate 200gms 62.50 200gms 53.00 150gms 42.00 150gms 45.00 40gms 80gms 20gms 12.50 25.00 5.00
200gms 53.50
___________________________________________________________________________. Colgate is manufactured from which country(put tick mark)? India[ ] China[ ] America [ ] I dont know[ ]
How many brands you have used(put tick mark) A)one time [ ] B)Two times[ ] C)Three times [ ] D)Four times[ ]
Which one is best(put tick mark) a)Colgate total [ ] b)Colgate herbal [ ] c)Colgate gel [ ] d) Colgate dental cream[ ] Is colgate tooth paste is (put tick mark) a)Good[ ] b)Bad[ ] c)Average[ ] d)I cannot say[ ]
You need more offers or price to be reduced(put tick mark) More offers [ ] reduce the price [ ]
Thank you
Signature: