Asian Journal of Business and Economics

Volume 2, No.2.1 Quarter I 2012

ISSN: 2231-3699

The Mantra of Branding-A Case Analysis of Colgate Toothpaste

in Dehradun, India

Vipul Jain & Arvind Kumar Jain

Assistant Professors at University of Petroleum & Energy Studies, Dehradun, India

ABSTRACT
Interestingly, with all this wealth of information, some of it developed by the greatest minds
in the industry, we still hear “but what is branding?” Considering the multitude of sentences
that begin “branding is …”it’s an understandable question. What we believe people are
looking for is not another definition, what rather understanding, and an idea of how and
why this tool fits in to their business.
The brand Equation: Visual + Verbal + Experiential = Brand Perception

BR A N D

A brand is a distinguished name and/or symbol (such as a logo, trade mark, or package
design) intended to identify the goods or services of either one seller or a group of seller,
and to differential than goods or services from these of competitors. A brand thus signals to
the customer the source of the product, and protects both the customer and producer from
competitors who would attempt to provide products that appear to be identical

“A product is something that is made in a factory a brand is something that is bought by a

customer. A competitor can copy a product, a brand is unique. A product can be quickly
outdated, a successful brand is timeless.”( S T EP H EN K I N G )

RESEARCH METHODLOGY
Problem Formulation

In today’s competitive business environment, new toothpaste brands are entering into
market and old players are making efforts to hold their position strong in the market. This
leads to a problem that which brand is being preferred by consumers

O B J EC T I V E S

. 1. To find out the brand preference for toothpaste in Dehradun city.

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Asian Journal of Business and Economics
Volume 2, No.2.1 Quarter I 2012
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2. To study the factors influencing brand preference for toothpaste.

RESEARCH DESIGN
Descriptive Research is being used because a large number of respondents are to be
studied based upon the various factors. This research is adopted so as to know what is
happening in the market with respect to product, the customer and their attitudes.

SOURCES OF DATA COLLECTION

Primary Data – Primary data are those statistical data, which are collected by the
researcher for a fixed time period and are original in nature. If secondary data is found
inadequate the researcher goes for primary data. Primary data are obtained by a study
specifically designed to fulfill the data needs of the problem on hand.

Secondary Data – The Secondary data means data that are already available, which have
already been collected and analyzed by someone else. Secondary data is used here to know
that what exactly problem exist in rural marketing. Secondary data is collected from the
various sources.

TOOLS FOR DATA COLLECTION

Primary data: For primary data collection survey method is being used. In survey method
personal interview technique is used. Through this technique I could procure much more
different information. Personal interview is conducted through Questionnaire. A part of
Questionnaire is targeted to know the personal details of respondents. Another part
comprised of the questionnaire and consists of closed ended questions with every question
having its own importance and meaning.

Secondary data: Secondary data collection is done through various journals, books &
websites, and the final data will be analyzed systematically to achieve the desired result.

SAMPLE DESIGN: - Non probabilistic convenience sampling.

Sample Size - 100 Respondents

Sample Area - Dehradun City

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Asian Journal of Business and Economics
Volume 2, No.2.1 Quarter I 2012
ISSN: 2231-3699

Oral Care

The oral care market can be segregated into toothpaste (60%), toothpowder (23%) and
toothbrushes (17%). While 60% of toothpaste is sold on the family platform, around 35%
is sold on cosmetic propositions. On the other hand, while toothpowder accounts for 52%
of the market, red toothpowder accounts for 40% and black toothpowder accounts 8%.
The penetration level of toothpaste/powder in urban areas is 3X that in the rural areas.
Traditional materials such as neem and tobacco are popular for cleaning in the rural areas,
Frequency of usage for toothpaste is only 1.5 times among other consumers, compared
with 2 times in the developed world. Per capita consumption of toothpaste is only 70
gm compared with 300 gm in Europe and 150 gm in Thailand.

Given the low per capita consumption and penetration rates, toothpaste demand is mainly
being driven by the overall market gr o wt h o f 8-10%. The rural segment is also
driving toothpowder growth.

Indian Oral Care Market

 Many people in India still clean their teeth with traditional products like Neem
twigs, salt, ash, tobacco or other herbal ingredients.

 Average all India per capita consumption of toothpaste is a dismal 82gms.

 The dentist to population ratio is a critically low 1:35000 in the country. This
results in low oral hygiene consciousness and widespread dental diseases.

 Less than 15% of the Indian toothpaste users brush twice a day.

 The toothpaste market grew at a CAGR of 7-8% between 1995-2000. But in 2001
the market grew by only 4%.

 Colgate and Hindustan Lever together account for over 85% of the organized
toothpaste market.

 Red and Black toothpowder still accounts for 35% of the toothpowder market

 Brand loyalty is quite high for toothpastes, but is extremely low for toothbrushes.

 10 years ago the most expensive toothbrush was priced at Rs4. Today one can

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Asian Journal of Business and Economics
Volume 2, No.2.1 Quarter I 2012
ISSN: 2231-3699

also buy a toothbrush priced at Rs999!

The Rs. 2,200-crore toothpaste market (the largest oral care segment), grew a robust 10
per cent in value in 2000. But this wound down to 2.4 per cent in 2001. In the first six
months of 2002, the market for toothpastes in fact shrank by around 5.7 per cent in value;
in volumes terms it was much higher at 11 per cent. The going was tough for the oral care
industry.

Little wonder that teeth were bared between the market leader, Colgate Palmolive, and the
challenger, Hindustan Lever, as the marketing war between the two FMCG giants for
protecting market share got tough.

As if that was not enough, these players found new aggressive competition coming
their way from regional low priced competitors such as Anchor Healthcare & Ajanta
India, who priced their offerings at over 40% discount, giving market leaders a run for
their money.

These low priced competitors accounted for more than 80 per cent of the growing ‘discount
segment’. It looked as if the multinational companies were helpless against challenger
brands.

But then the big boys struck back, Colgate revitalized one of its existing brands, Cibaca
as Colgate-Cibaca. It was to act as the price flanker brand in the portfolio. Ditto by HLL
with Aim. At prices similar to the low priced challenger brands it took the battle right into
their turf. The market d ynamics changed. Within a year, Colgate Cibaca managed to
garner whopping 50% of the market share in the discount segment and established
Colgate’s supremacy once again. HLL’s Aim however could not match the success and
was subsequently withdrawn from the market.

Today not only has Colgate's flagship brand grown, but Colgate Cibaca has risen to
Become the 4th largest paste brand in the country in volume terms after Colgate Dental
Cream.
Pepsodent and Close-Up (in fact Colgate Cibaca is now #2 in some geographies)It is
interesting to note that Colgate Cibaca became big without any intensive communication
support. It relied more on trade level activities and below the line strategies for its
success.

However the journey for brand Colgate Cibaca has just begun. Having come up this far,
Colgate now aims to move Colgate Cibaca to the next level of growth. Hence the
challenge is to increase the share of Cibaca without cannibalizing mother brand Colgate.
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Asian Journal of Business and Economics
Volume 2, No.2.1 Quarter I 2012
ISSN: 2231-3699

With the huge consumer base waiting to be tapped and the expected rise in purchasing
power as the economy picks up, oral hygiene in India may receive a fresh lease of life.

Indian Toothpaste Market

The oral care market in India is valued at Rs 3,976 crore and is expected to reach Rs
4,373crore by 2012. The market can be segmented into mouthwashes, toothpastes,
toothbrushes and tooth powders. The toothpaste market is estimated at Rs 2,866 crore and is
expected to reach Rs 3,226 crore by 2012.

Today’s companies are operating in macro environment forces. They are facing the
toughest competition ever. So, all the companies are involved in winning customers and
outperforming competition. Indian tooth paste industry is one of the country largest
markets. The Indian tooth paste market is very big. Large numbers of manufacturers are
present. They are trying to go at top most position.

Segments in the Industry

Price-based segmentation of the toothpaste category on the basis of price, the

toothpaste market can be broken down into two distinct categories:

The Regular Segment The Low Price Point Segment

Weight in Grams Price Range Weight in Grams Price Range

50 12.5 -24 50 8-10

100 25-30 100 14-20
150 35-45 150 25
Volume Volume
64922 tons 21641 tons

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Asian Journal of Business and Economics
Volume 2, No.2.1 Quarter I 2012
ISSN: 2231-3699

Prominent Brands

Colgate Meswak Babool

Pepsodent Dabur Red Anchor
Close – up Colgate Cibaca Ajanta

Colgate – the dominance continues

Colgate has been present in the domestic oral care market for the last 70 years and its oral
care brands enjoy strong brand equity in the market.

The company has traditionally been the leader in the domestic oral care market.
Currently, it occupies a dominant position in the toothpaste segment with a 48% market
share in the domestic market. Its relative market share is 1.5 times the second largest
player.

Colgate acquired Cibaca in 1994 from Ciba Geigy. The company today has two main
brands in the toothpaste segment – Colgate and Colgate Cibaca.

Faced with tough competition from HLL during early 2000, Colgate made a slew of
successful new launches to protect its market share namely Colgate Herbal, Colgate Gel
& revitalized Colgate Cibaca Top (in the low price segment).

The company has continuously relied on innovations to stay ahead of the

competition. It launched 3 new innovative variants during the course of FY06.

1. Colgate Active Salt – that capitalises on the traditional use of salt for oral care

2. Colgate Advanced Whitening – that contains micro-crystals that polish ones teeth,
restores and maintains their whiteness.
3. Colgate MaxFresh Gel – An innovative gel-based toothpaste with cooling crystals

Current Brand portfolio: Toothpaste

1. Colgate Dental Cream

2. Colgate Total

3. Colgate Herbal

4. Colgate Kids Toothpaste

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Volume 2, No.2.1 Quarter I 2012
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5. Colgate Advanced Whitening

6. Colgate Active Salt

7. Colgate Fresh Energy Gel

8. Colgate Max Fresh

9. Colgate Cibaca

Strong Distribution

The company has backed its products with a very strong distribution network. The
company's distribution network covers 940 direct accounts and 3.8 million retail outlets.
Colgate is the 2nd most widely distributed product in the country. The company is tying
up with initiatives like E-Choupal and Disha to further strengthen its distribution
network.

Tremendous Brand Equity

Over the years, Colgate has been able to develop strong brand equity. It has been voted
the “The Most Trusted Brand” in the country for 3 consecutive years in the AC Nielsen
Brand Equity Survey.
HLL– The Challenger

In the late 1980s, Hindustan Lever used the novelty element in gel toothpaste to make
steady inroads into Colgate's dominance in the oral care market. Its gel toothpaste, Close-
Up helped HLL become the second largest paste brand; posing a stiff challenge to
Colgate.

However as the novelty of gel toothpastes wore off, HLL renewed focus on its other
brand Pepsodent to help it protect its turf. Its attempt at offering a low priced brand Aim
was not completed and the brand was subsequently pulled back after launching it in early
2000Both Close Up and Pepsodent have a combined market share of 30% .The current
brands offer distinct propositions; Close Up addresses the youth with new benefits and
value-driven propositions, whereas Pepsodent is firmly entrenched on the family health
platform with variants catering to oral health.

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Asian Journal of Business and Economics
Volume 2, No.2.1 Quarter I 2012
ISSN: 2231-3699

DATA ANALYS IS AND INTERPRETATION

DIFFERENT TOOTH PASTSE BRAND USER

S.N Brand No. of Respondent % of Respondent

o.

1 Colgate 27 27%

2 Pepsodent 23 23%

3 Close-up 20 20%

4 Babool 13 13%

5 Anchor 9 9%

6 Any other 8 8%

Total 100 100%

RATING FOR EFFECTIVENESS OF COLGATE ATTRIBUTES

PERCENTAGE
Effective Non-effective Standard
Deviation
S.No. Attributes Mean

1 2 3 4 5

1. Value for money 25.9 33.3 22.3 11.1 7.4 2.40 10.66

2. Economical 11.1 22.3 18.6 25.9 22.3 3.25 5.62

3. Taste 29.6 22.3 25.9 14.8 7.4 2.48 8.91

4. Prevention of decay 18.5 25.9 22.3 14.8 18.5 2.89 4.20

5. Freshness 33.3 25.9 22.3 11.1 7.4 2.34 10.68

6. Whitening Quality 25.9 22.3 18.5 18.5 14.8 2.74 4.23

7. Foaming 29.6 25.9 18.6 11.1 14.8 2.56 7.66

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Asian Journal of Business and Economics
Volume 2, No.2.1 Quarter I 2012
ISSN: 2231-3699

RATING FOR FACTORS AFFECTING COLGATE

PERCENTAGE

S. No. Highest Lowest Standard

Deviation
FACTORS

1 2 3 4 5 Mean

1. Availability 33.3 25.9 22.3 11.1 7.4 2.34 10.66

2. Advertisement 29.6 25.9 18.6 11.1 14.8 2.56 7.66

3. Price 11.1 22.3 18.5 25.8 22.3 3.25 5.60

4. Quality 40.7 25.9 22.3 11.1 0 2.03 15.39

5. Recommendatio 22.3 29.6 25.9 14.8 7.4 2.56 8.91

n by dentist

6. Brand Image 44.5 25.9 14.8 11.1 3.7 2.00 15.86

7. Flavour 37.8 29.6 18.5 14.8 0 2.12 14.47

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Asian Journal of Business and Economics
Volume 2, No.2.1 Quarter I 2012
ISSN: 2231-3699

OVERALL SATISFACTION LEVEL

S. No. Satisfaction level Percentage

1. Highly satisfied 44.4%

2. Slightly satisfied 25.9%

3. Neither satisfied 18.5%

Nor dissatisfied

4. Slightly 11.1%
dissatisfied

5. Highly 0%
dissatisfied

CONCLUSION

(1) After the critical analysis and the study of the data collection by me in Dehradun city I
have come to know that Colgate, Pepsodent, and close-up are the brands of toothpaste
which are mostly preferred by the consumers over other brands, the value of money,
freshness ,foaming and other attributes they require, they find in their preferred brand.

(2) From the analysis I have come to know that customers, who use Colgate ,and Close-up
are satisfied with the brand performance, as no one have ticked highly dissatisfied option
in questionnaire.

(3) Consumers prefer these brands of toothpaste because of toothpaste Freshness, whitening
quality, Taste and for some other reason.

(4) From above analysis I have come to know factors which affect consumers in their
purchase decision are Brand image, Flavor, quality for most preferred brands.

(5) Most of the customers get the information about the brand by Television commercials.

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Asian Journal of Business and Economics
Volume 2, No.2.1 Quarter I 2012
ISSN: 2231-3699

SUGGESTIONS

The findings based on the data collected give a fairly good idea about the various aspects o some
important popular brands such as Pepsodent, Close-up and Colgate. In terms of awareness,
people are aware of both these brands. But they have their own likings and disliking.

After considering all these facts of the market and the working of the market, it has been
recommended that in toothpaste Industry there is a cut throat competition is going on between
major players.

To the small players it will not affect, even people also considers brands in their purchasing.

So for the new entry it is difficult to capture the market share but for the existing company the
differentiation will not becomes that much difficult to capture the market. So, toothpaste Industry
is an industry in which all players needs to concentrate on customer’s changing demand and
preferences to survive in the market and to capture the market share.

Companies should make sure that the brand is available easily to their consumer.

Quality and taste of the product should be kept best at all times in order to retain the preferences
of the consumer.

REFERENCES

 Ariely & Dan “Controlling the Information Flow: Effects on Consumer’s

DecisionMakingandPreferences”http://ideas.repec.org/a/ucp/jconrs/v26y1999i3p293-
306.html.

 Dillon William R…,Madden Thomas J.Kirmani amna & Mukherjee Soumen

“Understanding What ‘s in a brand rating journal of marketing research
vol.38(November 2001),pp.415-429.
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Asian Journal of Business and Economics
Volume 2, No.2.1 Quarter I 2012
ISSN: 2231-3699

 Dhar, Nowils Rave, Sherman Stephen M. & J Steven “Comparison Effects on Preference
Construction” www.amsreview.org/articles/mcenallyh 02- 1999.pdf.

 Heilman Carrie M., Bowman Douglas and Wright Gordon P. “The evolution of brand
preference and choice behavior of consumers new to a market” Journal of marketing”
Journal of marketing Research vol. 37 (May 2000), pp. 139-155.

 Kothri C. R. (2002) “Introduction of Research” research , Research Methodology

pp: 3-28.

 Sciffman & Kaunk, (2006) “Consumer Behaviour” prentice hall India.

 D.D.Sharma (2008) , “Marketing Research Principle Application & Cases” Delhi, Sultan
chand & sons.

Website:
 www.scribd.com

 www.marketingjournal.com

 http:/www.amsreview.org/articles/mcenally02-1999.pdf.

 http:/ideas.repce.org/a/ucp/jconrs/v26y1999i3p293-306.html

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