Marketing strategy of Oral -B

Marketin g Strategy Toothpas te (Oral care industry) Team members:

Celesteena R (F14012) Delin Jeni (F14016) Divrina Vyas (F14018) Sharanya Prasad (F14052) Spikenard Felix Deepak (F14053) Stephen Sebastian (F14054) Surendaran (F14055) Viplav Kashyap (F14060)

Contents INTRODUCTION TO ORAL CARE INDUSTRY.............................................................3 INDUSTRY OVERVIEW.......................................................................................... 4 TOP TEN TOOTHPASTE BRANDS :........................................................................4 GROWTH RATE:................................................................................................... 4 MAJOR PLAYERS:................................................................................................. 5 Top 5 Brands :..................................................................................................... 5 Colgate-Palmolive (About the company)................................................................6 Corporate Vision:............................................................................................. 7 Corporate Objectives:...................................................................................... 7 Caring:............................................................................................................. 7 Industry and Market Analysis................................................................................. 7 Distribution............................................................................................................ 9 Marketing Strategy Of Colgate Toothpaste.........................................................12 Product:............................................................................................................ 12 Product Analysis:........................................................................................... 13 Price................................................................................................................. 16 Place................................................................................................................. 17 Promotion......................................................................................................... 17 STP(Segmentation, Targeting, Positioning)..........................................................18 SWOT ANALYSIS................................................................................................... 19 SWOT ANALYSIS................................................................................................ 21 Strength........................................................................................................ 21 Weakness...................................................................................................... 21 Opportunity................................................................................................... 21 Threats.......................................................................................................... 21 Competitor Analysis...................................................................................... 21 Segmentation, Targeting and Positioning.........................................................22 Segmentation................................................................................................ 22 Targeting....................................................................................................... 22 Positioning..................................................................................................... 23 Product Mix....................................................................................................... 23 Product.......................................................................................................... 23 Product Life cycle.......................................................................................... 25 1

Price................................................................................................................. 25 Place................................................................................................................. 26 Promotion......................................................................................................... 27 Brand Ambassador........................................................................................ 27 Free Gifts....................................................................................................... 28 CONCLUSION.................................................................................................... 28 Sensodyne........................................................................................................... 30 TOOTHPASTE MARKET IN INDIA...........................................................................30 ABOUT GLAXOSMITHKLINE................................................................................... 31 PRODUCTS DEVELOPED AT GLAXOSMITHKLINE................................................32 ABOUT SENSODYNE............................................................................................. 32 PRODUCT LINES UNDER SENSODYNE...............................................................33 BRANDING OF THE PRODUCT...............................................................................33 4P’s OF SENSODYNE............................................................................................ 34 PRODUCT.......................................................................................................... 34 PLACE............................................................................................................... 35 PROMOTION...................................................................................................... 35 MARKET STANDING IN INDIA................................................................................36 Close up............................................................................................................... 38 About Hindustan Unilever:................................................................................... 38 Brands in action at Hindustan Unilever:...........................................................39 About Close up:................................................................................................... 41 Key facts.......................................................................................................... 41 Segmentation, Targeting and Positioning:............................................................41 1. Segmentation............................................................................................... 41 2. Targeting....................................................................................................... 42 3. Positioning.................................................................................................... 42 Marketing Mix:..................................................................................................... 42 1. Product......................................................................................................... 42 2. Pricing:.......................................................................................................... 43 3. Place:............................................................................................................ 44 4. Promotion:.................................................................................................... 44 Branding:............................................................................................................. 45 Competition:........................................................................................................ 45 Dabur Tooth Paste (Introduction):.....................................................................47 2

Dabur dental care:............................................................................................ 47 Corporate governance:..................................................................................48 Vision:............................................................................................................ 48 Strategic Intent:............................................................................................ 48 STP...................................................................................................................... 49 SWOT Analysis..................................................................................................... 49 Competitors:........................................................................................................ 50 4P’s of DaburToothpastes:................................................................................... 51 Product:............................................................................................................ 51 Price:................................................................................................................ 51 Place:................................................................................................................ 51 Promotion:........................................................................................................ 51 Branding strategies:............................................................................................ 52 PROMOTIONAL SCHEMES USED FOR STOCKIESTS...............................................53 PROMOTIONAL SCHEMES USED FOR RETAILERS..................................................54 PROMOTIONAL SCHEMES USED FOR CONSUMERS..............................................56 References:.......................................................................................................... 57

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INTRODUCTION TO ORAL CARE INDUSTRY In India, oral care market offers huge potential as penetration and per capita consumption of oral care products is very low. However, rising per capita income and increasing awareness is driving demand of oral care products. Consumers have started switching to value-added toothpastes like gels, mouth washes, and teeth whitening products. In rural areas, consumers are switching from toothpowders to toothpastes. A key industry trend is the move towards natural products comprising of herbs, vitamins and minerals. A serious challenge for the industry is the low dentist-population ratio, with just one dentist for 10,000 people in urban areas and about 0.25 million people in rural areas. There is an urgent need of more dental health practitioners with relevant qualifications and training. Government has taken various initiatives like dental health camps to promote good oral care. Manufacturers have used advertising campaigns to promote higher consumption of toothpastes and toothbrushes. Colgate and HUL together account for over two-thirds of the organized toothpaste market. In toothpowder market, Colgate, HUL and Dabur are the major players. Opportunities for Toothpaste Industry In india : In India, oral care market offers huge potential as penetration and per capita consumption of oral care products is very low. However, rising per capita income and increasing awareness is driving demand of oral care products. Consumers have started switching to value-added toothpastes like gels, mouth washes, and teeth whitening products. In rural areas, consumers are switching from toothpowders to toothpastes.

INDUSTRY OVERVIEW Total market of 750 crores.Growth rate of 18.6%Per capita usage mere 85 gms per person.Major player – Colgate Palmolive and Hindustan Unilever.

TOP TEN TOOTHPASTE BRANDS : COLGATE (Coalgate Palmolive Ltd.) PEPSODENT (Hindustan unilever) CLOSE UP (Hindustan Unilever) SENSODYNE (GlaxoSmithKline) AQUAFRESH (GlaxoSmithKline) ANCHOR (Anchor health & beauty care Ltd.) DABUR RED (Dabur India) BABOOL (GlaxoSmithKline) MESWAK (GlaxoSmithKline) VICCO BAJRADANTI (Vicco Laboratories)

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GROWTH RATE: Growth rate of 18.6%Registered a compound growth rate of 6.6% between 2004-09 Changing spending pattern – with a increase in purchasing power, there is a upward trend in the expenditure incurred upon FMCG.Changing profile and mindset – People look for “MONEY FOR VALUE” rather than “VALUE FOR MONEY”. Switching from economy to premium brands.

MAJOR PLAYERS: Colgate – Palmolive Ltd. (Market Share- 47.3%)Hindustan Unilever Ltd (Market share- 30%)Dabur India Ltd. (Market Share- 7.2%)Other companies like Vicco, Patanjali, Promise etc.

Top 5 Brands : Market Share (2009)Colgate Dental Cream 34%Close-Up 14%Pepsodent Complete 10 11%Colgate Cibaca Top 5.7%Colgate Fresh Energy Gel 3%Other Brands 32.3%

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Colgate-Palmolive[Stephen Sebastian(F14054), Viplav Kashyap(F14060)] Colgate-Palmolive (About the company) Colgate-Palmolive Company is a $16.7 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. Colgate follows a tightly defined strategy to grow market shares for key products, such as toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants, dishwashing detergents, household cleaners, fabric conditioners and specialty pet food. It all began in 1806, when soap was commonly made at home; William Colgate had the genius idea to start selling individual portions of starch, soap and candles. This business was born on Dutch Street, in New York City, from where he delivered his merchandise to all customers, an innovative approach at the time. By 1817, the first Colgate advertisement appeared in a New York newspaper, and several years later, they expanded and established a factory in New Jersey, an indication of their growing success. This company was passed down from son to son, each and every one of them striving for integrity and quality in every aspect of the business. Concepts such as “Colgate people” were a way of managing, not just a team, but a family. This concept was first introduced by the founder and is still used today. Throughout the years, Colgate was an innovator, always developing new products. They were able to forecast market trends before the competition and develop strong brand equity through mergers, acquisitions, and joint ventures. The first merger was with Palmolive Company, a soap company as well. Together, they created the first scented soaps, perfumes, and essences. In 1872, Colgate introduced toothpaste in malleable tube similar to the one we know today. Superior merits gave this convenient and simple brand the prestige to successfully tap into several different markets. In 1900, they won an honourable award for their premium soaps and perfumes at the World’s Fair, which was conducted in Paris. In 1906, the 100th anniversary pronounced the success of over 800 brands, multiplying considerably in the years to follow. The years to come involve Colgate starting to think globally, by doing so through a subsidiary in Canada, quickly followed by operations in Europe, Asia, Latin America, and Africa. The development of new brands begins going rapidly, and what seems to be like one influential brand after the other is constantly bombarding the market. Many cleaning products are established such as Ajax and Soup line, which was first popular in France and is now sold in 54 countries around the world. The Palmolive 6

dishwashing liquid was introduced in 1966 and can now be found on rack of your local grocery store. Irish Spring, Caprice hair care, and Protex, are brands that you are also probably aware of, proving to still be successful to this day, and can be found in over 70 countries. In 1976, they even acquired a leader in dog food named Hill’s, which shows to what extent they were confidently conquering the world horizontally with this wide variety of products. In 1983, one of today’s extremely popular products, the Colgate Plus toothbrush, is launched. So many are sold annually that “if you lined them up end to end, they would circle the globe 16 times.” (Colgate Website) Soon after, a joint venture is made with leading oral care companies in Hong Kong. Acquisitions are made buying Murphy Oil Soap, Mennen, Kolynos Oral Care, popular in Latin America, Gaba, prevalent in Europe, and they most recently bought Tom’s of Maine, a US based natural toothpaste. By 1989 the annual sales were surpassing 5 billion dollars, and by 1997, Colgate Total toothpaste is recognized as the market leader. With sales today surpassing the 15$ billion benchmark, Colgate continues to be a strong player in today’s oral care market. Moreover, the company also conducts triple bottom line practices, reaching for success while targeting benefits for people, profits, and the environment. They have a “You Can Make A Difference Program”, which distinguishes the Colgate people for their grand efforts. Furthermore, they established Colgate’s HIV/AIDS initiatives in South Africa. As for performance and profit, they have been ranked in Business Week and Governance Metrics International Inc. as having the top Oral Care products. Concerning sustainable practices and respect for the environment, they contributed in a 40% decrease in water use, a 22% reduction in C02 emissions, and were the first of its industry to use recycled material in Europe. Corporate Mission: Colgate-Palmolive Company’s mission is to consistently deliver strong business results and superior returns to stakeholders by providing consumers with the best of their products to healthier and more enjoyable lives. Corporate Vision:

Colgate-Palmolive Company is to become the best among the consumer products by understanding consumers and consumers‟ expectations better and by continually innovating and improving their products, services and processes. Corporate Objectives:

ColgatePalmolive’s business operations have been guided by three fundamental objectives which include: Caring, Teamwork and Continuous Improvement are part of everything we do. They foundation for our business strategy and are reflected in every aspect work life.

always Global are the of our

Caring:

The Company cares about people: Colgate people, customers, shareholders and business partners. Colgate is committed to act with compassion, integrity, honesty and high ethics in all situations, to listen with respect to others and to value differences. The Company is also committed to protect the global environment, 7

to enhance the communities where Colgate people live and work, and to be compliant with government laws and regulations.

Industry and Market Analysis With over 24% category share in 2009, Colgate-Palmolive maintained its position as a world leader in oral care followed by Procter & Gamble Co with 19.9% of company shares, and GlaxoSmithKline Pc with 9.9% share. A significant reason why Colgate benefits from the highest market share in the oral care category is due to it high level of product development. They constantly launch new and innovative products, which give them a competitive advantage in the market, and this is a big part of the company’s strategy driving profitable growth. For example, in 2009 the company introduced the Colgate Wisp which was the first disposable mini-toothbrush with a breath freshening bead that allows the user to have a clean, fresh mouth with no water or rinsing. Due to their strong product development capability and focus on innovation, Colgate-Palmolive is in a position to continuously upgrade its product line regularly, thereby increasing customer loyalty and revenues. Another reason why Colgate has been able to acquire such a high market share is because of its high focus on marketing, leading to strong brand equity. Their marketing strategies involve offering products based on consumers needs and communicating the benefits though methods like free sampling as well as the Internet. Using this approach worldwide has been successful in increasing sales but also in acquiring a larger size of the overall category of the market. A further reason why the market share is high is because the brand enjoys a strong level of consumer recognition. Therefore, they have the possibility of gaining leverage in new markets and maintaining loyalty of existing customers. In addition to being a global leader in terms of company shares, Colgate Palmolive Co also has the highest brand share in oral care, with Colgate possessing 19.8% in 2009. The Colgate brand is followed by the Braun Oral-B brand having 9% of the market and then by Crest obtaining 6.4% of brand shares in that same year (GMID- product development) (appendix with brand shares graph). Other smaller but still significant competitors that Colgate-Palmolive faces in the oral care category include Johnson & Johnson Inc, with their Listerine brand accounting for 6.4% of brand shares, followed by the Unilever group with Signal that has 4.1%, and finally GlaxoSmithKline Pc who owns the Aquafresh brand with 3.3% of brand shares.

It is important to note that although the Colgate brand is experiencing growth year after year, the oral care is a mature category with limited room for innovation. Even though there are some growth opportunities, because oral care accounts for around 63% of Colgate-Palmolive’s beauty and personal care revenue, it is highly exposed 8

to a slump in this category. In addition to being a mature category, the oral care products are facing a higher level of competition from private labels, which again hinders the profitability of the category. The increasing purchase of private labels is largely due to the decreasing spending power, which is caused by the high level of unemployment in many sectors since the economic downturn occurred. With a minimal cost per purchase, maintaining a high level of brand equity allows Colgate to remain competitive versus lower cost rivals. It also prevents recently established firms from gaining market share. With the threat of private label, Colgate increased their effort towards innovation and branding by promoting the fact that they are the most recommended brand by dentists. This has helped Colgate fight the competitive pressures they are facing in the market. Not only does Colgate face increased competition from low-market brands but also from their major competitors such as Procter & Gamble oral care products, who are also looking to expand globally in more perspective markets. Therefore, it is primordial for Colgate to continue investing in product development catering to customer needs, in order to face their increasing competition. There is also the issue of counterfeiting oral care products which is posing a significant threat to the company in terms of revenue loss. In 2009 thousands of tubes of fake Colgate toothpaste were recalled. This had a negative effect on customer satisfaction since purchasers of the authentic Colgate could stop buying this brand in the future believing that it is inferior to other brands and therefore decreasing customer retention. Despite the significant threats that Colgate faced in the oral care category, the company intends to remain in a market leading position and continues to have globally recognized brands by seeking opportunities allowing them to do so. For instance, Colgate had begun taking advantage of the economic and population growth with developing and emerging economies such as Brazil, India and China. Each of these economies show very high growth prospects in terms of demand in the upcoming years for consumer goods like oral care products. For instance, it is expected that between 2009 and 2014, Brazil will be the fastest growing market in oral care by accounting for 20% of the global growth, followed by China with 18%, and India with 9%. Although Colgate-Palmolive dominates oral care in Brazil, China and India with 44%, 26% and 38% of market share respectively, it is essential for the company to maintain and increase its presence in these economies in order to reap the benefits of this growth rate (GMID-product development). However, they have already begun facing strong competition from their rivals P&G and Johnson and Johnson in these countries. Local players in India and China have also begun gaining importance in their individual markets. Domestic companies such as Yunnan Baiyao in China, and Dabur in Japan, have begun offering herbal/natural oral care products and there is a growing demand for them. Since Colgate is one of the most valued and recognized brands globally, they are in a good position to take advantage of this market and further increase their market share. basic predecessors, and therefore carry a higher price tag. Colgate manual toothbrushes sold at a variety of retailers range from $1.99 to $5.99. This strategy has been particularly successful as Canadian consumers have developed loyalty to their brand of toothbrush for they sense a more significant difference between the 9

“regular” and “improved” toothbrushes, thus dissuading many from switching or trading down, thus increasing consumer lifetime value and profitability. Colgate is also catering to more health conscious but price-sensitive consumers by increasingly introducing affordable electric toothbrushes.

Distribution Being low priced and requiring low consumer effort, Colgate products must be mass distributed and accessible to most if not all Canadians. Colgate employs an intensive distribution strategy aimed at a maximum market coverage which supports the application of product replenishment based on “pull” strategies, as these come closest to reflecting true consumer demand. Research suggests supermarkets are the largest distribution points for toothpaste as well as other oral care products, followed by mass merchandisers and drug stores. With that in mind, it would simply not be efficient for Colgate to sell directly to small distributors, therefore Colgate products often go through at least one wholesaler before reaching the shelves of our supermarkets. Colgate does however, directly sell to some of the larger retailer chains such as Wal-Mart, who purchase in such large volumes that it is more efficient to do so. Colgate therefore operates in what is called a “parallel” distribution network in which some retailers are forced to buy through a mass distributor while others are not. However, Colgate is working closely with small shop owners and local wholesalers through Joint Business Plans to ensure greater availability of Colgate products, as well as to provide the right assortment of products with the best visibility on the store shelves. Prior to distribution, while Colgate products are produced around the world, use of contract manufacturers is very limited as more than 90% of products were made in Colgate facilities. Colgate does concede however that the use of contractors often allows to optimize their supply chain capabilities, deliver innovative technologies, increase speed of delivery, and especially increases flexibility which is key in a rapidly changing marketplace. Three-year globalization contracts with their main suppliers enabled a reduction of the supplier base from 11 to 4 suppliers. For a key toothpaste ingredient, the supplier base was reduced from 7 to 3 to help achieve record savings and cost reductions. With optimized supply chain logistics and control over the manufacturing process, Colgate products are quick to move from their respective factories to stores all throughout Canada. In five years, Colgate managed to cut its time from product concept to retail shelves by 50%.

Boosting Sales – Introduction Of Colgate Total Beginning in the late 1980s, Colgate had begun development of a toothpaste that contained a gingivitis-fighting antimicrobial agent, triclosan. Researchers found a way to use polymers to bind triclosan to teeth for up to 14 hours, allowing users to 10

fight bleeding gums and bad breath continuously with only two brushings a day. The company began marketing the product overseas in 1992 under the name Total, eventually distributing it to 100 countries. The toothpaste was a major success, and enabled Colgate to increase its worldwide share of that market segment. In the United States, however, introduction of Total was held up by the Food and Drug Administration (FDA), which required extensive tests to prove the product's effectiveness before Colgate could make gingivitis-fighting claims on package labels. After some five years the agency granted final approval, and Total reached store shelves in December 1997. The response was even stronger than anticipated, and cemented Colgate's place as leader of the U.S. toothpaste market, a position it had actually reached in the months prior to Total's introduction. This was the first time since 1962 that ACNielsen's rankings had shown Colgate on top. Following the successful launch, the company's profits and stock price climbed steadily. In December 1998 the FDA also approved a variant of Total, Total Fresh Stripe, which reached stores several months later. A year after Total's release it was the number one toothpaste brand in the United States. Competitors such as Procter & Gamble, which already marketed a triclosan-based toothpaste in Canada, were prevented from mounting a quick response by the lengthy FDA approval process. Powered by Total and the strong U.S. economy, Colgate continued to do well in 1999, with record earnings approaching the $1 billion mark.

New Challenges in the Early 2000s Under Mark's continued leadership, Colgate-Palmolive maintained its momentum into the early 2000s. By keeping a tight rein on costs, the company boosted its gross profit margin to 54.6 percent by 2002, when net income reached $1.29 billion on sales of $9.29 billion. On the new product front, the Colgate Actibrush batterypowered toothbrush was brought to market in 2000, soon followed by products in the burgeoning at-home tooth-whitening sector, such as Simply White gel and Total Plus Whitening toothpaste. In pet food, the company in 2002 introduced Hill's Science Diet Nature's Best, a new line of premium dog and cat food made with natural ingredients. Long unable to compete with Procter & Gamble in that firm's mainstay detergent lines, Colgate pulled back from that sector in certain markets. In 2001 it sold its detergent business in Mexico, headed by the Viva brand, to Henkel KGA, and then two years later off-loaded its European detergent brands to Procter & Gamble. In 2004 Colgate sold its detergent business in Ecuador and Peru. In June of that year, the company completed its first major acquisition since the 1995 purchase of 11

Kolynos. Colgate spent $866 million for GABA Holding AG, a privately held European oral care company based in Switzerland. GABA, operating in 15 countries, had annual sales of about $300 million. Its strength in the pharmacy channel complemented Colgate's leading presence in the European retail market. The addition of GABA boosted Colgate's share of the European toothpaste market to 33 percent.

Although revenues increased another 7 percent in 2004, topping the $10 billion mark for the first time, profits fell 7 percent, to $1.33 billion. Intense global competition-particularly from a resurgent Procter & Gamble--forced Colgate to allocate additional money for advertising, and the firm also had to contend with increased raw material and packaging costs and the growing power of discount retailers such as Wal-Mart Stores, Inc. who were forcing consumer product makers to hold the line on price increases. To free up funds for marketing initiatives and new product development efforts, Colgate launched a sweeping restructuring in December 2004, its first major overhaul since 1995. The latest reorganization, a four-year program, aimed to generate between $250 million and $300 million in after-tax cost savings by 2008 by closing 26 of the firm's 78 factories around the world and eliminating about 12 percent of the workforce, or more than 4,400 jobs. Cumulative after-tax restructuring charges of between $550 million and $650 million were anticipated. As part of the restructuring, further divestments of noncore lines were very possible. As Colgate continued to deemphasize its detergent business, it seemed likely to seek buyers for its Fab and Ajax brands. Just as the restructuring began, however, Colgate faced the prospect of an even more formidable chief foe. Procter & Gamble reached an agreement to acquire The Gillette Company in January 2005 for $57 billion, which would add Gillette's Oral-B toothbrushes and toothpastes to P&G's Crest line. This deal was likely to compound the competitive pressures that Colgate-Palmolive faced, making the successful implementation of the restructuring that much more important

Marketing Strategy Of Colgate Toothpaste Product: Product Overview Toothpaste works with tooth brushing to clean teeth and fight plaque and bacteria. Specifically: • Toothpaste contains abrasive materials that physically scrub away plaque. In addition, toothpaste abrasives help remove food stains from teeth and polish tooth surfaces. 12

• Toothpaste delivers fluoride to the teeth. Fluoride incorporates itself into tooth enamel weakened by acid attack, making it more resistant to future acid attack from plaque bacteria and food. • Technological improvements in some toothpaste contain ingredients that chemically hinder the growth of plaque. Colgate’s brands consists of a multitude of unique toothpastes lines, specializing in the preservation and treatment of oral hygiene. Colgate has created an array of 40 different patented toothpastes keeping Colgate competitive in the market place. There are 13 different classifications and varieties of Colgate toothpastes. Colgate’s toothpastes feature; cavity protection, plaque & gingivitis prevention, long lasting fresh breath, tartar control toothpastes, tooth whitening, baking soda and peroxide, enamel strengthening, sensitivity relief and toothpaste designed for children. Product Analysis:

* Colgate Cavity Protection Great Regular Flavor * Colgate Total Advanced Whitening * Colgate Cavity Protection Winterfresh Gel * Colgate Total Advanced Clean * Colgate Total Advanced Fresh Gel * Colgate Tartar Control Whitening Cool Mint Gel * Colgate Total Clean Mint * Colgate Tartar Control Whitening Crisp Mint * Colgate Total Whitening Paste * Colgate Total Enamel Strength *Oxygen Bubbles Whitening Brisk Mint® Paste *Oxygen Bubbles Frosty Mint Striped™ Gel * Colgate 2in1 Oxygen Whitening * Colgate 2in1 Whitening * Colgate 2in1 Icy Blast * Colgate 2in1 Kids Strawberry * Colgate 2in1 Kids Watermelon * Colgate Max Fresh w/ Mini Breath Strips * Colgate Max Fresh w/ Mouthwash Beads * Colgate Max White w/ Mini Bright Strips * Colgate Sparkling White CinnamonMint * Colgate Sparkling White Mint Zing * Colgate Sparkling White Caribbean Cool

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* Baking Soda & Peroxide Oxygen Whitening Frosty Mint Striped™ Gel * Colgate Baking Soda & Peroxide Whitening * Colgate Sensitive Multi Protection * Colgate Sensitive Enamel Protect * Colgate Sensitive Maximum Strength Whitening * Colgate ProClinical Daily Whitening * Colgate ProClinical Daily Cleaning * Colgate ProClinical Daily Renewal for Enamel * Colgate Dora the Explorer Mild Bubble Fruit * Colgate SpongeBob Mild Bubble Fruit * Colgate My First Toothpaste * Colgate Pop Stars * Colgate Luminous Crystal Clean * Colgate Luminous Paradise Fresh Colgate Regular: In over 173 years, Colgate’s original flavored mint toothpaste has changed very little. It cleans, strengthens, protects teeth and breath. Colgate’s Original formula uses active fluoride to keep teeth and gums healthy. Colgate Regular is ADA approved and doctor recommended. Colgate Tartar Control Toothpaste: One of the top sellers in the Colgate toothpaste line and for good reason. Colgate Tartar Protection fights tartar build up and removes stains to whiten teeth and fight cavities. Colgate Total is the most popular toothpaste under the Colgate brand. It has eight products and flavors within the line that all promote 12-hour protection from: gingivitis, stains, plaque, whitening, cavities, tartar, weak enamel, tender gums and bad breath. Colgate Total’s products all protect against these unwanted oral issues, but some target specific individual problems in a variety of toothpastes and gels. Including, Colgate Total Enamel Strength Striped paste, protects from acid wear. Advanced Clean is available in both a gel and paste form and contains silica, which is similar to what dentists use to maintain a professional cleaning feel.

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Colgate Total Advanced Fresh Gel contains an added flavor booster to keep breath ultra fresh for up to 12 hours. Colgate Total Clean Mint Paste has a delightful mint taste. Colgate Total Mint Stripe Gel is a minty blend of gel and paste that leave the users mouth fresh and clean. Colgate Oxygen Bubbles Toothpaste: When activated, the product foams to get in between teeth to fight cavities and kill germs that cause bad breath. Oxygen Whitening works to gently remove surface stains to reveal the natural whiteness of your teeth. Colgate 2in1 Toothpastes is a mix of two distinct features in one gel toothpaste. Whitening foaming that gets between teeth to fight cavities and kill germs that cause bad breath and Oxygen Whitening works to gently remove surface stains to reveal the natural whiteness of teeth. Colgate Sparkling White Toothpaste is clinically proven to protection teeth from wear and tear staining. The formula is a patented creation for sparkling, healthy, white teeth accompanied by a unique flavour experience. It is available in the following flavours: Colgate Sparkling Mint Zing, Colgate Sparkling White CinnaMint, and Colgate Sparkling White Caribbean Cool. Colgate

Sensitive

Multi

Protection fights

tartar,

removes

plaque,

promotes healthy gums and whitens teeth for a healthier smile. The sensitive element in the three Colgate Sensitive Toothpastes protects from painful oral sensation. Colgate Sensitive Enamel Protect helps protect tooth enamel from acid attacks. Colgate Sensitive Whitening helps restore the natural whiteness of teeth. Colgate Pro Clinical is relatively new to the market. It comes in three varieties inspired by dentists to create a high quality and satisfaction guaranteed product. Colgate Max Line established in 2007 consists of three varieties. Colgate Max White with Mini Bright Strips freshens breath and helps to bring back the natural whiteness of a persons smile. Colgate Max Fresh with Mini Breath Strips is packed with hundreds of mini breath strips. These breath strips unleash a powerful rush of freshness and are formulated to whiten teeth. Colgate Max Fresh with Mouthwash

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Beads contains concentrated mouthwash beads that leaves the users mouth ultra clean and fresh. Colgate has several lines of toothpaste targeting children in regard to packaging, flavour and theme. Including Colgate Dora the Explorer Mild Bubble Fruit, Colgate SpongeBob Mild Bubble Fruit, Colgate My First Toothpaste and Colgate Pop Stars. Colgate Luminous is Colgate’s newest brand launched in early 2009. It is manufactured in two flavours, Crystal Clean Mint and Paradise Fresh Colgate. Luminous is a specific formula that safely lifts off yellowing surface stains to restore the natural whiteness to teeth. Using fluoride mineral formulation, ColgateLuminous strengthens weakened teeth enamel. Marketing Mix

Price Colgate features products in the oral health isle of almost all stores carrying oral health products. Colgate has a large span of shelf space on nine rows, totalling 35 items per store that illustrates the wealth of variety Colgate offers. It is important to note that Colgate is the first product on display in the toothpaste section of the oral health isle. The subtotal of all of Colgate’s products per ounce is 28.58 equalling $0.81 per ounce, making it the most expensive brand of the three toothpaste category leaders. The most expensive toothpaste per ounce is the Colgate Pro Clinical, which is featured at eye level on the top shelf. The least expensive toothpaste per ounce is the Colgate Regular super tube, which is located on the second shelf from the store floor or shin level of the consumer. Sl. No. Product

Price

1.

Colgate Dental Cream

20 gram±Rs. 5/-, 40 gram±Rs. 10/-, 50 gram±Rs.14/-, 100 gram±Rs. 30/- and 200 gram±Rs. 50/-

2.

Colgate 12

150 gram-Rs. 62/-

3.

Colgate Sensitive

100gram-Rs. 58/-

4.

Colgate Max Fresh

150 gram-Rs. 50/- (Both blue and Green Flavours)

5.

Colgate Kids Toothpaste

150 gram-Rs.48/-

6.

Colgate Fresh Energy Gel

50 gram-Rs. 15/-, 100 gram-RS.32/and 200gram-Rs. 58/-

7.

Colgate Herbal

100 gram-RS.29/- and 200gram-Rs. 54/16

8.

Colgate Cibaca Family Protection

50 gram-Rs. 10/-, 100 gram-RS.17/and 200gram-Rs. 27/-

9.

Colgate Active Salt

100 gram-RS.29/- and 200gram-Rs. 54/-

Place Colgate’s product distribution is immense. Almost all super markets, discount chains and pharmacies such as Wal-Mart, Albertsons, Target, Walgreens and CVS carry Colgate Toothpaste. Colgate toothpaste is physically located in the oral health isle of stores. Colgate toothpaste can sometimes be found in more prominent locations when on sale or launching new products into the market. Colgate is sold over almost all the retail outlets of India viz.,Kirana stores, supermarkets, medical shops, co-operative stores, etc. It is well-distributed through the supply chain of company distributors to whole sealers to retailers to final consumers. All the products are available in the all-India market, including semi-urban and rural markets which are their primary focus areas. But the various varieties of Colgate are not so easily available other than in the oral care outlets or super markets. The small tubes of Colgate are also available in small road-side shops and from the vendors.

Promotion The Colgate Toothpaste promotions can be found throughout the marketing mix in a variety of mediums. The advertisements and promotions are located in a targeted media selection that appeals to the target consumer. • Website: Colgate has a dynamic website with the title, “Colgate World of Care,” that details products, oral care, company history, e-newsletter and special offers. The website also has a social networking page called Colgate Smile to engage the consumer to get involved with their oral health and the ColgatePalmolive Company. Colgate also has social media pages on Facebook, Twitter and MySpace. • Coupons: Colgate Toothpastes has printable weekly coupons online in the special offers section of the website. Colgate coupons can also be found as cut outs in the weekend coupon sections of 500+ newspapers around the country. 17

•

Television:

Colgate

and

its

advertising

agency

produce

several

television advertisements a year using humour and pseudo-scientific displays to appeal to consumers. • Magazines/Outdoor: Colgate’s marketing campaigns have been known to use historical, sexual, cultural and social inferences in their advertisements. • Donations: Colgate donates millions of dollars annually to the ADA’s “Give a Kid A Smile.” Colgate is a direct partner with this ADA program. Coupons are the largest form of promotion offered by the home product giant P&G. Coupons can be found online via the Crest and Oral-B e-newsletter. Sent out monthly, the E-mail newsletter includes updates, latest advances, new products and exclusive offers at P&G. Crest also sends out the P&G Brand Saver found in over 500 local Sunday Newspapers nationally. This coupon booklet provides discounts on P&G products that are redeemable at purchase. Colgate normally gives out small product samples at annual events like ³Oral Health month´ to remind target consumers, especially kids to take better care of their teeth after eating sweets. This method does not drive strong results as most consumers tend to forget the message, even if they have collected the samples. Now, instead of giving away product samples, Ice cream and cotton candy were given out. The stick carrying the ice-cream and cotton candy carries a hidden message. Once consumers are done the message printed on the tip of the stick shaped like a toothbrush reveals ³Don’tforget´ with the Colgate logo. This simple message effectively reminded consumers to brush their teeth.

STP(Segmentation, Targeting, Positioning) 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 TARGETING:- 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 18

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 teeth. Focus 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 strength and fresh breath are targeted. 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”.

SWOT ANALYSIS INTERNAL FACTORS:-(1) 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.(2) 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 19

– rural and semi- urban.(4) THREATS:- High competition from competitive brands like Pepsodent from HUL. Increasing commodity prices for manufacturing.

Pepsodent Toothpaste[ Divrina Vyas(F14018), Sharyna Prasad(F14052) Pepsodent Toothpaste 20

The parent company of Pepsodent is HUL, which is the world’s largest fast moving consumer goods company with 80 factories across India. It was formerly Hindustan Lever Limited and renamed as Hindustan Unilever Limited in June 2007 with Unilever commanding a majority stake in it. HUL has a diverse portfolio of brands offering home care solutions for millions of consumers across India. Pepsodent toothpaste was launched in 1993 and its products today include: Germicheck, Whitening , 2in1, Center Fresh, Gum Care, Sensitive, Kids. It noted a sales growth of 17% in 20112012. In fact pepsodent and close up together accounted for 22% of market share in 2011-2012.

SWOT ANALYSIS Strength

It is the largest dental association in the world and is also supported by FDI. It has established itself as a strong brand having the second largest market share only next to Colgate of Colgate-Palmolive Ltd. It has used celebrities like Shahrukh han that have helped it capture the mind space of the customer as a reliable brand.

It is one of the most trusted brands of India. Pepsodent toothpaste fights germs to protect teeth against cavities and gives strong teeth, fresh breath and healthy gums. Pepsodent as an oral care expert offers solution to specific problems like bleeding gums and sensitive teeth. Weakness

Pepsodent toothpastes face severe competition from Colgate that enjoys huge customer loyalty and brand equity. Moreover, it has low penetration in the rural areas. Opportunity

Pepsodent has used innovative marketing strategies like pepsodent toothpaste packs in 2002 would include a germ indicator that would allow customers to check the efficacy of the toothpaste in fighting germs. Moreover, Pepsodent campaigns aim at educating consumers on the need for germ protection through the night. It has also used smaller packaging for rural markets, tied up with hotel chains and schools. Threats

It faces intense competition from internal brands like Close up and external brands like Colgate. Competitor Analysis

The major competitors of pepsodent are Colgate, Oral B, Dabur. 21

Segmentation, Targeting and Positioning Segmentation

Pepsodent toothpaste has segmented the market based on geographic, behavioural and demographic lines. Geographic: In terms of geographic segmentation the market is divided into urban and rural areas. The urban market for the toothpaste is almost stagnant. Hence for deeper penetration into the rural markets they have taken measures such as selling 100 gms packets at 10 rupees and conducting tooth campaigns in schools in villages. Behavioural: They have made different variants of products to suit different consumer preferences such as G for gum care, germicheck for cavities, and whitening for white teeth. Age: They came up with different coloured packets to make it appear attractive to the kids such as pink depicting Barbie, blue depicting superman, and orange for Tom and Jerry. Targeting

Most of pepsodent products are sold in urban areas and the sales from these areas constitute about 80% of the income. Currently it is into selective specialisation like Pepsodent kids for kids, smaller and cheaper variants for rural markets, Pepsodent complete for educated urban consumer.

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Figure 1 Depicting Selective Specialisation

This type of targeting means targeting different markets with different products. Positioning

Pepsodent was launched in 1993 by HUL to capture the market from Colgate. It was launched in the platform of Germ fighting property. Pepsodent has experimented with its positioning throughout its life. Ad Campaigns to supplement this positioning include:    

Lasting Protection for hours Germ Fighting Campaign Dental Insurance and Dishum Dishum Bhoot Campaign

HLL launched the famous Dishum Dishum campaign. The insight for this campaign was that mothers were really worried about the eating habits of their kids. From that insight came the Big Idea “let Pepsodent fight germs for you". The campaign and the smart pricing virtually killed the regional brands in the oral care market. Pepsodent knew that they should expand the total market of toothpaste and hence decided to increase market by increasing the usage of the product. Thus they came up with the bhoot campaign. Pepsodent aims to teach the kids to brush at night; (with Pepsodent of course).Research shows that brushing teeth at night can reduce chances of tooth decay by 30%. And because of this campaign 12 lakhs kids are brushing teeth at night now and mothers are happy.

Product Mix Pepsodent has its products which cover a large area. Product

Pepsodent offers a wide range of toothpastes catering to needs and the wants and the demands of the consumers both in Rural and Urban areas. Their products are:  

Pepsodent Germicheck + Pepsodent Whitening 23

  

Pepsodent 2 in 1 Pepsodent G Pepsodent kids

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Product Life cycle

From the Diagram Above, it can be deduced that Pepsodent is currently at the Maturity stage of the product Lifecycle The different characteristics of maturity include: heavy Competition search for other target markets, and Psychological Pricing Methods to gain market share.

Price A brief comparison of the product variants and their corresponding price range and product weight of Pepsodent and its competitors- Colgate and Sensodyne has been discussed. Colgate also has 4 other variants :    

Salt Herbal Total and Cibaca Family Protection

Pepsodent has no equivalents (Pepsodent Complete has been discontinued). Pepsodent has the ‘2 in 1’ variant for which Colgate doesn’t have an equivalent. Some of the variants mentioned above have subvariants which have a price variation of 1-2 rupees.

25

Figure 2: Prices for Pepsodent and its competitors

Overall, Pepsodent is priced at the same level as Colgate, however, they have different selling points. Pepsodent has the ‘Offers protection against germs’ angle while Colgate has the ‘Makes teeth stronger’ angle

Place Pepsodent Toothpastes are readily available at all retail shops, Kirana shops and Supermarkets . The figure given below indicates the three Distribution Channels employed for FMCG goods. Since Pepsodent Toothpaste is an item of daily Usage irrespective of the income groups, hence it follows a relatively Simple distribution channel illustrated in the third level in the chart.

26

Figure 3: Pepsodent uses level 3 of the Distribution Channel

Promotion There are various promotional activities taken up by HUL in the promotion of its product “Pepsodent”. The following are the promotional activities adopted by HUL for Pepsodent    

Free dental check-ups, Organise health camps involving villagers to fortify its campaign Offer free samples to the villagers to try out the product Offer discount coupons on wrapper redemption schemes

Brand Ambassador In May, 2010, Pepsodent had roped in Shah Rukh Khan to be their Brand Ambassador.

27

SRK had been roped in for Pepsodent’s latest campaign ‘Pappu & Papa’.

Free Gifts

Pepsodent has agreed to sell its Products with a toy along with the purchase of the product. With phrases like “Collect Them All!” the customers would want to buy more products in order to collect all the gifts.

CONCLUSION Even though the demand of pepsodent is more than any of its competitors, its sales are the second best behind Colgate. In the coming years, Pepsodent is going to increase in the toothpaste market but just gradually every year. Through its promotional strategies, it can spread its brand name which can help increase sales.

28

Color Variants: It’s been a proven fact that children are attracted to bright colors more than the dull dark colors. The variants available in the market are Tom & Jerry (Orange Packs), Barbie (Pink Packs) and Superman (Dark Blue Packs). By the sales figures in the retail outlets, it was seen that the children respond positively only to first two variants.Alternatives Attractive colors can be introduced to keep children pulled in to try the new variants every time. Special limited editions during festive seasons & holidays can be sold to increase revenue. New cartoon characters in the current day channels (Cartoon Network etc.) can be added as new variants. By the TRP ratings, children are found to watch Shin Chan show more and form a potentially attractive market for the new variant. Future Prospects to Increase Its Sales: 1. A kit can be introduced along with a “Kids Stand” to hold only the Pepsodent Kids toothpaste and toothbrush in sockets. The sockets must be made to hold only the Pepsodent products. 2. The Kids Stand can be introduced in variety of themes matching different characters. The kit can also contain a booklet/ sheet depicting a small story or characters description. The children view these as their toy and also feel proud of owning it. 3. Children generally use the toothbrush for 3 months but the toothpaste gets over in a month considering 40 gm pack. Hence once the tooth paste gets over, children refill the socket with Pepsodent Kids toothpaste in that place

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SENSODYNE (Surendaran S(F14055) Sensodyne Sensodyne is an oral health brand targeted at people with sensitive teeth. Sensodyne products are applied at home by the patient to treat this condition. Sensodyne is owned by GlaxoSmithKline and is marketed under the name Shumitect in Japan.

TOOTHPASTE MARKET IN INDIA Competition in India’s toothpaste market has been heating up in the last few months. India accounts for 5% of the global market which values the country’s oral care market at about $1.5 billion The Indian oral care market has grown by lowdouble digits to high-teens in the last few years. It registered annual growth of 13% during March 2012–2013, while the global market grew by only 3% during the same period. With a 17% simultaneous increase, the toothpaste segment is witnessing the fastest growth. n the back of increasing oral hygiene awareness, improving discretionary income and high advertising expenditure by oral care companies, India’s oral care market is forecast to grow at a CAGR of 14% in the next three to four years. This is much higher than the 3% CAGR forecast for the global market. The expected high growth rate in India presents an opportunity for oral care players to offset the impact of lower growth rates in developed countries. The toothpaste segment is particularly attractive to these players. It accounts for over 70% of the total value of the oral care market in the country. The penetration level of toothpastes in India (55%) is low, as toothpaste usage in rural India is still very limited. Also, the per capita toothpaste consumption in India (127gm/year) is one of the lowest in the world. These factors allow room for extensive growth in oral care.

Key Trends Fueling Growth In India’s Toothpaste Market? 1. Rising demand from rural India: Although only 42% of the people living in India’s villages and small towns use toothpastes, the proportion is increasing with rising rural income and greater awareness about oral hygiene through advertisements, dental camps and free dental checkups. 30

2. Rife oral hygiene problems: More than 30% of India’s population suffers from gum sensitivity and oral hygiene problems. Thus, India’s urban population is continuously upgrading from regular to functional toothpastes due to which the category is growing by 30%–40% annually.

ABOUT GLAXOSMITHKLINE GalxoSmithKline is a British multinational pharmaceutical, biologics, vaccines and consumer healthcare company which has its headquarters in Brentford, London. As of March 2014, it was the world's sixth-largest pharmaceutical company after Johnson & Johnson, Novartis, Hoffmann-La Roche, Pfizer, and Sanofi, measured by 2013 revenue. The company was established in 2000 by the merger of Glaxo Wellcome (formed from the acquisition of Wellcome plc by Glaxo plc) and SmithKline Beecham plc (formed from the merger of Beecham Group plc and SmithKline Beckman Corporation, which in turn was formed by combining the Smith, Kline & French and Beckman companies). The company has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. As of 2 May 2014 it had a market capitalisation of £79 billion, the fourth-largest of any company listed on the London Stock Exchange. It has a secondary listing on the New York Stock Exchange. Andrew Witty has been the chief executive officer since May 2008. GSK manufactures drugs and vaccines for major disease areas such as asthma, cancer, infections, diabetes, digestive and mental health conditions, the biggest selling of which were Advair, Avodart, Flovent, Augmentin, Lovaza, and Lamictal in 2013. Many medicines were historically discovered or developed at GSK and its predecessor companies and are now sold as generics. Its drugs and vaccines earned £21.3 billion in 2013. Its consumer healthcare division, which earned £5.2 billion in 2013, sells oral healthcare and nutritional products, drinks and over-the-counter medicines, including Sensodyne, Boost and Horlicks. Various areas for which GlaxoSmithKline has developed products are as follows Prescription: Augmentin, Betnovate, Ceftin etc Vaccines: for influenza, tetanus, diptheria and many other Consumer health care : Horlicks, Boost, Aquafresh, Sensodyne, Iodex, Crocin, Eno, Boost etc; Stiefel:Skin health [Dermatology] 31

PRODUCTS DEVELOPED AT GLAXOSMITHKLINE GSK manufactures drugs and vaccines for major disease areas such as asthma, cancer, infections, diabetes, digestive and mental health conditions, the biggest selling of which were Advair, Avodart, Flovent, Augmentin, Lovaza, and Lamictal in 2013.Its drugs and vaccines earned £21.3 million in 2013. Top-selling products include its asthma/COPD therapeutics Advair, Ventolin, and Flovent; its diphtheria/tetanus/pertussis vaccine Infanrix and its hepatitis B vaccine; the epilepsy drug Lamicatal; the antihyperlipemia drug Lovaza; and the antibacterial Augmentin.Its consumer healthcare division, which earned £5.2 million in 2013, sells oral healthcare, and nutritional products, drinks and over-the-counter medicines,including Sensodyne, Boost and Horlicks.Medicines historically discovered or developed at GSK and its legacy companies and now sold as generics include amoxicillin and amoxicillin-clavulanate,ticarcillin-clavulanate and ceftazidime for bacterial infections, zidovudine for HIV infection, valacyclovir for herpes virus infections, albendazole for parasitic infections, sumatriptan for migraine, lamotrigine for epilepsy, bupropion and paroxetine for major depressive disorder, and cimetidine and ranitidine for gastroesophageal reflux disorder. Among these, amoxicillin, amoxicillin-clavulanate, mupriocin, zidovudine, albendazole, and ranitidine are listed on the World Health Organization's list of essential medications. The company's over-the-counter health-care products include Abreva to treat cold sores; Aquafresh, Maclean's and Sensodyne toothpastes; Night Nurse, a cold remedy; Breathe Right nasal strips; and Nicoderm and Nicorette nicotine replacements. It also sells several drinks, including Horlicks, a malted milk drink and Boost, a chocolateflavoured drink, and formerly sold Lucozade, marketed as an energy drink, and Ribena, a fruit drink

ABOUT SENSODYNE Sensodyne is the Number1 toothpaste for sensitive teeth, offering a range of specifically formulated toothpastes. Sensodyne works to relieve tooth sensitivity due to sensitive teeth and to provide lasting protection all day, every day when used as directed. Since being introduced in 1961, Sensodyne has become the favorite sensitive toothpaste of dentists around the world. Sensodyne has continually provided clinically proven relief from sensitive teeth.

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PRODUCT LINES UNDER SENSODYNE *Sensodyne Repair and Protect *Sensodyne Fast Acting Relief * 24*7 Protection *Gentle Brushing are the various product lines in Sensodyne. It is sold as an over-the-counter medicine.The productlines cater to the varied needs of the customers based on the problem faced by them.

BRANDING OF THE PRODUCT The product is branded by saying that it provides relief from sensitive teeth in 2 weeks’ time when the product is used continuously. Sensodyne toothpastes work in one of three ways to relieve the pain of sensitive teeth. Depending on the product's active ingredient - Potassium Nitrate, Strontium Acetate, or NovaMin technology. Sensodyne is branded as the number 1 dentist recommended desensitizing toothpaste brand than can help provide relief from dentin hypersensitivity. The Sensodyne range is available in many types and flavors, each offering specific benefits to patients and helping them comply in the long term with a good oral hygiene regimen. Since being introduced in 1961, Sensodyne has become the favorite sensitive toothpaste of dentists around the world. Sensodyne has continually provided clinically proven relief from sensitive teeth

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Sensodyne toothpastes works to relieve the discomfort of sensitive teeth. This depends on the product's active ingredient, which is either Potassium Nitrate or, for Sensodyne Rapid Relief, Strontium Acetate, or for Sensodyne Repair & Protect, patented NovaMin technology.

Potassium Nitrate: The potassium ion in Sensodyne is believed to soothe the nerves inside the teeth. Clinical studies show potassium nitrate progressively reduces the pain of sensitivity over a period of weeks. As long as a toothpaste with potassium like Sensodyne is used twicedaily in brushing, the nerve response will gradually be reduced and sensitivity pain is relieved. To protect against tooth sensitivity every time you eat and every time your drink, you need all day sensitivity protection. Sensodyne toothpaste provides all day, every day sensitivity protection when used twice daily.The potassium ion in Sensodyne toothpaste builds a protective barrier and prevents transmission of nerve impulse to brain which results in relief from sensitivity. Strontium Acetate: Sensodyne Rapid Relief contains strontium acetate, which is similar to calcium. The strontium in Sensodyne Rapid Relief replaces some of the calcium lost from the dentine and blocks the exposed tubules in the dentinal tissue. This helps prevent the movement of the fluid within the tubules in response to a sensitivity stimulus that could otherwise cause tooth pain. Sensodyne Rapid Relief: relieves sensitivity pain when directly applied to the sensitive area of a tooth with a fingertip for one minute. This is because it is formulated to create a physical seal against sensitivity triggers. Bioactive glass: Sensodyne contains calcium sodium phosphosilicate (Brand name Novamin) which some studies have shown to reduce tooth sensitivity and cause remineralisation.

4P’s OF SENSODYNE PRODUCT Value Providing relief from ‘sensitive’ pain within two weeks. 34

Sensodyne targets customers with varied tooth ailments and also customers that purchase toothpastes for the routine use on a daily basis.Sensodyne targets customers with sensitive teeth and provides products that can provide relief to them from their tooth ailments. Branding: No.1 toothpaste recommended by dentists globally. Sensodyne has contracts with nearly 15k dentists that are spread globally in order to conduct clinical experiments and based on the results the product is marketed as the number 1 oral product for providing relief to people with sensitive teeth. Variety: Fresh Mint and Fresh Gel. Sensodyne comes out in two different flavours as Fresh Mint and Fresh Gel to cater to the needs of its customers.

Packaging: Attractive paper box The product is packed in an attractive and protective paper box.The tooth brush is also packed in a similar kind of attractive box.The packaging is significantly different to other products that are available in the market. Size: Available in 40gms. and 100gms. Design: Simple and appealing Product

PLACE The product is sold in Retail Stores and hypermarkets in urban markets. [Tier-1 cities].The product is sold as an over the counter medicine in the pharmacies . It is also sold through distributors to cater to the needs of the people living in the unchartered territories of the market.

PROMOTION TV Commercials in regional languages.The‘Chill Tests’in hypermarkets Promotion through dentists and dental colleges go a long way in winning over the hearts of the potential customers who ponder over the product to go with to get rid of their tooth 35

ailment . A dentist telling about a product in favour of it definitely helps the product to get a broader customer base . PRICING

Packet Price Rs.42 for 40gm tube of Fresh Mint.Rs.75 for 80gm tube of Fresh Mint . Rs.45 for 40gm tube of Fresh Gel. Discounts Rs.2 discount in D-Mart. Pricing Strategy Penetration Pricing . Penetration pricing is a pricing strategy where the price of a product is initially set at a price lower than the eventual market price, to attract new customers. The strategy works on the expectation that customers will switch to the new brand because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term.The price will be raised later once this market share is gained.

MARKET STANDING IN INDIA

GlaxoSmithKline's Sensodyne is now India's No.1 dentist recommended brand for sensitive teeth as per research conducted among dentists by TNS, an independent market research firm. Sensodyne came out as the clear leader and was voted “most recommended” brand by more than 500 dentists surveyed across the country. According to the research more than 8 out of 10 dentists recommend Sensodyne to their patients suffering from sensitivity. Within three years of its launch and close on the heels of becoming the No 1 brand in the sensitive toothpaste category last year, Sensodyne clinched yet another major milestone in the short span of time to become No 1 recommended brand for sensitive teeth by dentists across the country. Commenting on the No 1 ranking, Mr. Zubair Ahmed, Managing Director, GlaxoSmithKline, said, “Sensodyne is the global sensitivity expert and works closely with dentists across the globe. We have been rated as No 1 recommended brand by 36

dentists worldwide and are extremely pleased and delighted to have been rated No 1 by dentists in India too. We want to thank the dentists in India for showing trust & confidence in the brand and for recommending the brand to help their patients lead sensitivity free life. We are aware that we still have a long way to go and we will continue to work closely with the dentists to create a world where every life is sensitivity- free.” Since its launch, Sensodyne has worked closely with Dentists in India to raise awareness about the sensitivity condition and help their patients lead a sensitivity free life. In a first of its kind initiative, Sensodyne partnered with leaders in the dental care community to create “Sensitivity Guideline” document to help dental experts and professionals make informed decisions on sensitivity and build awareness around the condition. Going forward, Sensodyne will work closely with dentists to update them on latest advancements to enable them to recommend sensitivity management solutions to their patients. In addition to strengthening its existing relationships, Sensodyne also aims to reach out to more experts' year on year to help more patients lead a sensitivity free life and enjoy small pleasures of life.

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Close Up[Spikenard Felix Deepak.S(F14053)]

Close up Close-up is a popular brand of toothpaste in India and is marketed by Unilever. Unilever is a well FMCG company in Indian markets. It has an experience of around 50 years and has the faith of millions of people in India. Close-up is an important product through which Unilever launched themselves as a leading company in India. Close-up, launched in 1967, is said to be the first gel toothpaste in the world. From the day of launch, it has been compared to ‘Freshness’ and has been targeted to the youth crowd. In 2003, Unilever sold the licensing rights to Church & Dwight in United States and Canada. But, in India the Unilever continues its sales and it has not failed to appeal the youth crowd even today. The advertising campaigns of this toothpaste are also very stylish and many famous stars have been roped in to endorse this brand. It has been market leader in the Indian markets for over 3 decades.

About Hindustan Unilever: Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 80 years in India and touches the lives of two out of three Indians.

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HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pure-it. The Company has over 16,000 employees and has an annual turnover of INR 27408 crores (financial year 2013 - 2014). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of €49.8 billion in 2013. Unilever has 67.25% shareholding in HUL. HUL was established in 1933 as Lever Brothers and, in 1956, became known as Hindustan Lever Limited, as a result of a merger between Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and employs over 16,500 workers, whilst also indirectly helping to facilitate the employment of over 65,000 people. The company was renamed in June 2007 as "Hindustan Unilever Limited" Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products.

Brands in action at Hindustan Unilever: Food brands: 

Annapurna salt and atta



Bru coffee



Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea



Kissan squashes, ketchups, juices and jams 39



Lipton tea



Knorr soups & meal makers and soupy noodles



Kwality Wall's frozen dessert



Modern Bread, ready to eat chapattis and other bakery items



Magnum (ice cream)

Homecare Brands 

Active Wheel detergent



Cif Cream Cleaner



Comfort fabric softeners



Domestos disinfectant/toilet cleaner



Rin detergents and bleach



Sunlight detergent and colour care

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Surf Excel detergent and gentle wash



Vim dishwash



Magic – Water Saver

Personal Care Brands: 

Aviance Beauty Solutions



Axe deodorant and aftershaving lotion and soap



LEVER Ayush Therapy ayurvedic health care and personal care products 40



Breeze beauty soap



Clear anti-dandruff hair products



Clinic Plus shampoo and oil



Close Up toothpaste



Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant deodorants



Denim shaving products



Fair & Lovely skin-lightening products



Hamam



Lakmé beauty products and salons

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Lifebuoy soaps and handwash range



Liril 2000 soap



Lux soap, body wash and deodorant



Pears soap



Pepsodent toothpaste



Pond's talcs and creams



Rexona soap



Sunsilk shampoo



Sure anti-perspirant

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

Vaseline petroleum jelly, skin care lotions



TRESemmé



TIGI

Water Purifier Brand: 

Pure-it Water Purifier

About Close up: Unlike the typical opaque, mint-flavored toothpaste of the time, Close Up debuted in 1967 as a clear red gel with a spicy cinnamon taste and mouthwash right in the toothpaste. A unique brand identity was developed, with Close-Up positioned as the toothpaste that gives people confidence in those very "up close and personal" situations. Couples with bright smiles in very "close" situations were featured on the packaging, and commercials depicted youthful adults blowing kisses at each other. The idea of a toothpaste that could give them fresh breath, white teeth and, subsequently, a little extra self-confidence and sex appeal provided instant appeal to consumers. Over the years, Close-Up briefly flirted with a few variations, from a green mint-flavored version to a trendy clear gel. In 2006, Close-up Limited Edition launch in Arabia redefined the toothpaste market with its unique new flavors: Choco-loko, Tangerine Burst, and Lychee. It brought excitement and life into the rather boring toothpaste category and helped the brand achieve record sales and shares. One thing remains constant: Close-up is still symbolized by attractive white smiles in very close situations. Key facts   

First toothpaste in US to combine mouthwash and toothpaste in one formula First gel toothpaste in the world The Fluoride in Close Up called monofluorophospate, makes the entire tooth structure more resistant to delay. It also strengthens teeth, which aids in repairing early delay



before the damage can even be seen. Close-Up is the number 2 brand in the GCC

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Segmentation, Targeting and Positioning: 1. Segmentation Market segmentation is broadly classified into two categories: 

Specific need based segmentation. o Enhancement needs : this cater the need for having fresh breath and whiteness of teeth o Hygienic needs : This caters to the overall Oral care needs



Demographic segmentation The segmentation was specially to target youth between 18-25 years, however it did not alienate the people who were above the age of 30 years (especially the ones who feel young at heart).This product was also targeted to those groups of audiences who liked experimenting with different products.

2. Targeting Close up is targeted at young people; the target market being “Multi Brand Households” where the young does not use what their parents use. This particular targeting was significant when Close Up was launched because Colgate positioning was a sort of oral care and hygiene benefits. Also, Colgate was going for a broad market constituting of all the age groups

3. Positioning Positioning Close up falls under the third pillar of toothpaste Freshness Segment particularly dealing the need for white teeth and freshness. Also Close Up has positioned itself for Emotional benefit of closeness and rational benefit of freshness. The name “Close Up” was propounded with a motive of building social confidence to get closer to others. Close Up was positioned as a youth oral care brand from the very beginning. In 2004, the brand was relaunched with a publicity blitz that communicated virtues of a ‘Vitamin Fluoride system’ present in the product -- a powerful mix of vitamins, fluoride, mouthwash and microwhiteners, for fresher breath and stronger, whiter teeth. The two words which positions the product in the mind space of the consumer is:  

Freshness Confidence 43

Marketing Mix: 1. Product In an industry where technology has almost come to a standstill and toothpaste is just toothpaste, the one bog strength of close up is its distinctive product. In a world of white pastes, Close up owns the minds of bright red gels. While white pastes use calcium carbonate, Close up uses silica as its base. Silica is considered to be a more efficient abrasive and an ingredient that is non-reactive to other ingredients in the formulation (flavours or actives).

Close up offers the following types of toothpastes in the market:      

Crystal with soft blue granules Lemon Mint Menthol chill Peppermint Splash Red Hot Fire Freeze

2. Pricing: The price of the product is the same for the rural and the urban market, however the products are offered in a smaller pack in rural area to enable them to purchase the same. Decision to fix the price is taken into consideration after evaluating the competitors pricing strategy. However the price for Close Up was on premium basis at par with the premium variance of the competitors. In India, there is a high consideration given to the basic need of the consumer and based on which price of the product is decided, which is mostly in parity with the basic needs.

Brand

Size

Amount (Rupees)

Close Up Red Hot

40 gms

15

80 gms

33

150 gms

59

44

150 gms x 2 (Combo Pack)

94

80 gms

32

150 gms

58

Close Up Peppermint Splash

150 gms

55

Close Up Lemon Mint

150 gms

60

Close Up Fire Freeze

80 gms

35

150gms

65

Close Up Menthol Chill

Pricing Strategy: Market Penetration Strategy

3. Place: Close Up has its presence in both urban and rural markets. However, the sales is more in urban market rather than the rural market. The urban market has 60% of the sales whereas the rural market has 40% of the sales.    

Close up is easily available in all retail stores and super markets. Pharmacies Distributors Wholesalers

4. Promotion: Promotion for Close Up is done through various modes of media. There i s a d v e r t i s e m e n t telecasted on television, especially on the youth oriented channels like MTV and so on. The C l o s e U p t u n e “ P a a s a a o . . P a s s a a o . . P a a s a a o n a ” i s v e r y p o p u l a r a m o n g t h e youth. There are also promotional activities on radio, and outdoor media like banners and hoardings. Also there are promotional activities done in mall. In Philippines promotion was carried out by asking people to get their breath tested and then they were asked to brush their teeth in mall, after which again there was a test conducted to know the difference in the freshness of their breath after using Close Up. The findings of this experiment were that the subjects were convinced that Close Up was effective in providing freshness. T h e r e w a s a l s o a p r o m o t i o n a l a c t i v i t y c o n d u c t e d i n N i g e r i a b y c o n t a c t i n g t h e S c h o o l s a n d helping the 45

young students to understand the effect of using Close Up. Close Up also conducts promotional activities in colleges all over the world to increase their sale. T h e y h a v e recent tied up with online gaming company Zapak.The brand plans to u s e t h e gaming platform to promote 'Fire Freeze'. Gaming apart, the brand is also betting on Facebook. Close Up has sponsored a reality show called ‘Nachenge Gayenge Joomenge’ on Doordarshan. The main promotional events include:    

Advertisement in Television and Movie Theatres Distributing sample packets in super markets and stores Promotion through dentists Conducting Dental camps.

Branding: Close-Up toothpaste targeted youth people and hence their marketing strategies are youthful and trendy. Their advertisements had lot of music and dance. Popular stars who appeal to the youth crowd have been roped in the advertisements. The strategies emphasized on white teeth, fresher breadth, no tooth decay, more confidence to come close to their preferred sex, etc, and this was exactly the characteristics of the toothpaste that teens demand. The covers of the toothpaste had couples with bright smiles with white teeth. This gave a fresh look to the brand. When we consider niche market of people between 13 to 24 year old, Close-up continues to be a leader in the market.

Competition: Main competitor for Close Up is Colgate - Colgate Max Fresh and Colgate Fresh Energy Gel in gel form. To break into Close Up's stronghold, Colgate's Max Fresh gel has also been trying to don a young image. A few months ago it roped in numerous celebrities like Shahid Kapoor, Genelia D ' S o u z a , Vir e n d e r S e h w a g , G a u t a m G a m b h i r a n d Z a h e e r K h a n t o p r o m o t e t h e p o w e r o f freshness. It is also building an engaging Facebook page and organized a Max Fresh Alarm contest during the IPL season 4, where winners got the opportunity to meet cricketer Virender Sehwag. However, breaking into the youth space will not be an easy feat 46

for Colgate's Max Fresh as Colgate gel's biggest handicap is its mother brand equity of a serious health brand and this fact itself makes it less appealing to younger consumers. C o l g a t e h a s b e e n a c t i v e l y a d v e r t i s i n g i t s g e l t o o t h p a s t e i n t h e s o u t h a n d h e n c e , i n o r d e r t o counter this, Close Up roped in Suriya as its Brand Ambassador in the south.Close Up's success has not been enjoyed by Hindustan Unilever's sister brand Pepsodent (white tooth paste) which has seen a steady decline in sales in the last few years. This has largely been due to getting the price points and rural strategy wrong. The main competitors of Close Up are:      

Colgate Palmolive India Limited Hindustan Unilever Limited (Pepsodent Toothpaste) Vicco Group of companies Henkel India Limited Johnson and Johnson Limited Dabur

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Dabur Tooth Paste [Celesteena R(F14012), Delin Jeni(F14016)]

Dabur Tooth Paste (Introduction): Dabur India Limited is a leading consumer goods company with interests in hair care, oral care, health care, skin care, home care and foods. From its humble beginnings in the bylanes of Calcutta way back in 1884 as an ayurvedic medicine company, Dabur India Ltd has come a long way today to become a leading consumer products manufacturer in India. At present, it is India’s leading FMCG companies with sales of Rs.52,832 million, market capitalisation of Rs.2,09,133 million and net profit of Rs.6,449 million. They have their distribution network covering 2.8 million retail outlets. It is available in over 60 countries across the globe. It has 17 manufacturing plants catering to needs of diverse markets. Dabur’s overseas revenue accounts for 30% of the total turnover. Consumer care business addresses consumer needs across the entire FMCG spectrum through 4 distinct business portfolios of personal care, health care, home care and foods. Its master brands are     

Dabur – Ayurvedic health care products Vatika –Premium hair care Hajmola - Tasty digestives Real – Fruit juices and beverages Fem – Fairness bleaches and skin care products

International business division caters to the health and personal care needs of customers across different international markets spanning Nepal, Bangladesh, the Middle East, North and West Africa, EU and the US with its brands Dabur and Vatika. This contributes to about 30% of total sales. It leverages the ‘Natural” preference among local consumers to increase share in personal care categories.

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Dabur dental care: Dental care is critical, not just for a radiant smile, but also because unhealthy gums and teeth can lead to other serious health problems.

The various dental care products of Dabur are      

Dabur Red Paste DaburBabool DadurLalDantManjan DaburMeswak Dabur Super Babool Salt Promise Tooth Paste

Their products classification based on age groups are    

Dental Care for Kids Dental Care for Adults Dental Care for Youngsters Dental Care for Seniors

Corporate governance:

    

Professionalisation of board Less and active board Less number of promoters on the board More professionals and independent directors for better management Governed through board committees for audit, remuneration, shareholder



grievances, compensation and nominations Meets all corporate governance code requirements of SEBI

Vision:

“Dedicated to the health and well-being of every household” Strategic Intent:

Dabur intend to significantly accelerate profitable growth. To do this, 

It focuses on growing its core brands across categories, reaching out to new geographies, within and outside India and improve operational efficiencies by



leveraging technology. It tries to be the preferred company to meet the health and personal grooming needs of its target customers with safe, efficacious, natural solutions by synthesizing its deep knowledge of ayurveda and herbs with modern science. 49

 

Its tries to provide its consumers with innovative products within easy reach. It tries to build a platform to enable Dabur to become a global ayurvedic



leader. It tries to be a professionally managed employer of choice, attracting,



developing and retaining quality personnel. It tries to be responsible citizens with a commitment to environmental



protection. It provides superior returns, relative to our peer group, to its shareholders.

Dabur toothpastes – Dabur red, Daburbabool, Promise etc: Category – Tooth paste Parent company – Dabur Sector – FMCG Tagline – Keep dental problems away, daantswasth life mast USP – Gets rid of dental problems through ayurvedic solutions

STP Segment: Their segment is toothpowder or toothpastes Targeting: Their target is the people facing dental problems Positioning: They have positioned themselves as toothpaste containing ayurvedic ingredients and effective in preventing and curing dental problems

SWOT Analysis Strengths: Their main strengths are, 50

  

Scientifically validated formulation and ayurvedic ingredients Contains ingredients trusted by Indians as home remedies for dental problems Does not contain fluoride- a toxic industrial waste which most toothpastes

 

contain Reasonable price Belonging to a strong family of Dabur having a name in ayurvedic products

Weakness: Their weaknesses are,   

Marketing not as powerful as colgate Unusual colour of the toothpaste or toothpowder Limited customer base

Opportunity: Their opportunities are,   

Expansion in markets outside India at a large level Better promotion and expansion online Explore rural segments

Threats: Their threats are,   

Price wars between competitors Presence of easily available and lesser priced substitutes New products from the competitors

Competitors: Their main competitors are  Colgate  Closeup  Pepsodent

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4P’s of DaburToothpastes: Product: All products of Dabur are divided into five power brands of high quality available in different sizes. This gave many benefits like Dabur could specialize in non ayurvedic products, tap consumers of various age groups, position itself as an herbal specialist in the lucrative FMCG sector etc. Dabur also introduced new products looking at demand and different trends in the market.Dabur targeted Rs 19 billion toothpaste market by introducing Dabur Red toothpaste and increased its market share from 1.8% to 8%. Besides, they also produced different products for different class of people and also in different sizes.

Price: Competitive pricing was one of the growth strategies adopted by Dabur. Dabur maintained very competitive pricing for selling their products. Dabur could have charged high prices in their ayurvedic products but they kept their prices competitive with other players in the market. To increase demand, dabur introduced Rs.5 smaller pack segments in toothpastes. Thus, Dabus chose to stand out against its competitors by cutting prices.

Place: Dabur constantly kept on increasing its geographical spread to increase its sales revenue. From 8 percent of dabur sales from South Indian market in 2003, Dabur improved its sales to 10 percent in 2004. It has expanded its market in the international arena very successfully. Dabur has its branches in over 50 countries with subsidiaries being established in Nepal, Nigeria, Bangladesh and Pakistan and this international business has added Dabur’s turnover. Main focus areas include Afghanistan, Russia, Asia Pacific and other CIS countries.

Promotion: Dabur is well known for its promotional campaigns. Dabursigned Mr.Bachchan for a sum of Rs. 80 million for advertising campaign undertaken by Dabur. Dabur also signed cricketer VirendraSehwag and his wife for Oral products. Moreover, different brands Have their own marketing and advertising teams. Apart from thisDabur has also adopted integrated marketing communication program which included ground promotion, sampling exercise, mass media advertising, institutional promotion etc. 52

Branding strategies: A Banyan tree has been the logo of the company for since its Inception.The banyan tree stands for what has not been achieved. The company has been branching out. It has seven brands in the oral care category, nine in the hair care space and six brands in foods. “Hazam sab,chahe jab” “Hajmola kare khana complete” “Chatpata swad,jhatpat aaram” People could relate to the product immediately because of the 125 year long trust in Dabur. Brand has innovated to keep up with the evolution of consumers.Changed its branding strategy by moving from the Umbrella Strategy to the Key brand Strategy 

Categorized itself into five power brands

 Dabur (HEALTHCARE)  Vatika (HAIR CARE)  Anmol (PERSONAL CARE)  Real

( JUICES)

 Hajmola (DIGESTIVE SUPPLEMENTS)



PRODUCT LINE EXTENSION

 In the JUICES range Dabur introduced :  Coolers (Low fruit Content)  Real

( High fruit pulp Content)

 Real ACTIV (Health Conscious Youth)  Real Juniors (for the children below 6 years of age)  Real Schoolpack .

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Dabur is trying to capture market by launching product with a regional twist. Planned an agressive marketing strategy to increase its sales in the four southern states. Currently 10 per cent sales of consumer care products in the south .Renaming them in local languages.Come out with special products with distinct local flavour .Even roping in local celebrities as brand ambassadors, the company is adopting every trick in the book to drive deeper into the south indian markets.In tamil nadu- sivappu pal podi- lal dantmanjan. The Astra training consultancy module- Bengali, Tamil, Telugu, Malayalam and Kannada. PROMOTIONS : Among Dabur’s promotional focus, 75% of total sales from rural markets. Increasing Brand awareness through fairs and festivals like the Kumbh Mela and haats & holding reality shows . 

Different brands had its own marketing and advertising team



Different brands had different promotions



Utilized the popularity of Indian films in the domestic and global markets to promote its brands

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Undertook the most advertising campaign with Mr. Bachchan endorsing Dabur brands

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Signed cricketer Virendar Sehwag and his wife for selected Oral, Hair and Healthcare products

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Adopted the INTEGRATED MARKETING COMMUNICATION programme in 2003 to increase its market share

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Targeted the Institutional market which included hotels and airlines

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Partnered with Institutional clients to provide value added services

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Held various contests

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Training sessions and workshops for food and beverage professionals

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Tie-up with Discovery Channel.

PROMOTIONAL SCHEMES USED FOR STOCKIESTS 

Encourage stockiest to participate in displays and sales contests.

§ Higher Margins: Tries to give higher margins to stockiest so that they don’t loose interest in the product and can earn good profits after meeting all the expenses. 54

§ Sales Contests: Sales contest are held annually and whichever stockiest has the best sales record a prize is given to him, like free holiday to the family etc. § Allowances: Special allowances are given to both stockiest and stockiest sales man if they achieve their monthly target. § Subsidy for Promotion Budget: Company gives subsidy to the stockiest, who spend some money on the promotional schemes, like conducting a sampling activity. § Danglers and Posters: Company gives posters and danglers to stockiest which are further pasted and distributed by stockiest sales man. § Training: Special Training is given to Stockiest Sales Man, a training workshop is organized by the company for stockiest sales man so that they don’t face any problem while placing their products and taking orders from retailers. § Annual Gathering: All the stockiest meet under one roof at least once a year and then the stockiest whose performance was best in term of sales is awarded. § Fun Trip: A zone wise fully paid fun trip is organized by the company for all the stockiest once a year. § Gathering While Launch of New Products: All the stockiest and their sales man gather when there is a launch of a new product. Company gives free samples & gifts to stockiest and their sales man. § Special Trade Schemes: Special trade schemes like two SKU free with the 12 SKU. § Free danglers and posters for publicity. § Buyback: Dabur foods have a scheme of replacement of products which gets expired.

PROMOTIONAL SCHEMES USED FOR RETAILERS 

Trade allowances: Short term incentives are offered to induce a retailer to stock up more dabur products.



Dealer loader: An incentive given to induce a retailer to purchase and display the products of dabur.



Trade contest: A contest to reward retailers those sells the most product of dabur foods and after a specific period they are rewarded.

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

Point-of-purchase displays: Extra sales tools given to retailers by dabur to boost sales, like danglers, posters, banners etc helps in promoting sales.



Push money: Also known as "spiffs". An extra commission paid to retail employees to push products. This kind of practice dabur hardly follows.

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Free samples: Dabur foods gives free samples are given to retailers so that they can try that product if the product is new, or gives some discounts.

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Demos: Special demos are given to retailers and even some stands, fridge are given by retailers.

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Discount Sales: Some special discounts are given to retailers from time to time, like 1% cash discounts if payment is made in cash.

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Retailer Coupons: Dabur gives some coupons like free lunch for family etc if the retailer buys and sells a specific amount of products.

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Higher Margins: Retailer has the highest margins and dabur foods also have the same criteria, and retailer can further sell the dabur product to consumer at discount keeping his margin safe.



Allowances for additional shelf space: Company as such does not pay anything to retailer but gives some additional benefits for giving them shelf space which is visible to customer when ever they enter the shop.



Merchandising Allowances: Allowances are given to Stockiest sales man for merchandising dabur products. When ever the Stockiest sales man goes to take orders then he also merchandises dabur products.

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Bonus Packs: Time to time dabur gives bonus packs to retailers like buy 10 get 2 free with that.



Trade Allowance: Dabur comes with different types of trade discounts from time to time, like sometime price discounts, sometimes gifts etc.

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

Free goods: Dabur gives free goods on the purchase of specific number of goods.



Cash Rebate: Generally cash rebate is given by stockiest if retailer makes the payment in cash at the time of purchase.

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Product sampling: Dabur organizes sampling activities for its products which are new, these activities are generally at the place where footfall is very high.

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Displays: Dabur tries to give special displays to the retailers, so that they can display their products on that.



Point-of-Purchase Material: POP material is available in the form of stickers, banners, displays, posters, signs, streamers, etc. put up inside and outside the stores & other possible purchase locations.

PROMOTIONAL SCHEMES USED FOR CONSUMERS § Price deal: A temporary reduction in the price is given to consumer during some festival session by dabur foods. § Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra). § Coupons: Dabur foods gives coupons during different sampling activities to consumers and it have become a standard mechanism for sales promotions. § Loss leader: Dabur foods temporarily reduce the price of its popular product in order to stimulate other profitable sales. § On-shelf coupons: Coupons are present at the shelf where the product is available. § Rebates: Consumers are offered money back, rebate at different point of time. § Contests/sweepstakes/games: if a customer wins some game or contest at the time of sampling activities then they are given a discount coupon of products of dabur foods. § Point-of-sale displays: Displays helps the consumer easily recognize their products, dabur keeps a special check on the displays and merchandising of dabur products. § Sampling Activities: Dabur organizes different sampling actives at different retail outlets. § Gift with purchase: Dabur foods gives gift items with purchase like a glass, spoon etc.

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§ Money Refunds: Customer can claim for refund of money if they face some problem with the product § Contest /demos: There are different contests where customers play games and win contests. § Festival Sales: Dabur foods come out with some special offers during festival seasons like buy one get one free. § Multi-packs: Dabur foods has some products in multiple packaging which are comparatively priced lower to the products sold in a single pack. § Trade Fairs & exhibitions: Here dabur foods displays all range of its products, making it easier for customers to know about product line and choose the best out of that. § Customer feedback: dabur foods consider its customer most important and in case of any complaint by customer the foods department will leave all its important work and will contact the customer. § Contact points: Customer can contact dabur foods by writing the mail or letter on the addresses given at the back of dabur products, or even they can call and visit the dabur web site.

References: http://en.m.wikipedia.org/wiki/Dabur https://www.daburdentalcare.com/DentalCareByNature/Pages/default.aspx http://www.slideshare.net/mobile/abhike/marketing-strategy-of-dabur-india-ltd http://www.managementparadise.com/ http://mbaskool.com/ http://www.slideshare.net/Ken_Research/india-oral-care-industry-30075703 http://www.researchandmarkets.com/reports/602416/indian_oral_care

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