Analysis of Toothpaste industry in

India

Introduction
Earlier in India oral hygiene was the domain of local

home made ayurvedic powders or natural herbs. The

history of toothpaste in India can be traced back in
year 1975.Now the awareness regarding oral hygiene
in Indian society has increased with the different
brands of toothpaste.

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 valueadded toothpastes like gels, mouth washes, and teeth
whitening products. In rural areas, consumers are
switching from toothpowders to toothpastes.

GROWTH PROSPECTS

Increased at a compound growth rate of 6.6%

Rising income level i.e increasing purchasing power of consumer
Large domestic market with population over a billion
Untapped rural market

Industry Overview
Growth Rate
Toothpaste Sub Segment
Major Players
Per Capita Consumption
Penetration Level

Segments:

Popular Segment

Colgate , Pepsodent
Declining
Low Price Packs
Cibaca, Babool
Growing
Niche Products
Ayurvedic and Sensitive toothpastes Growing
Freshness Segment
Colgate MaxFresh,Close Up,Anchor Gel Growing

Porter's
Five Forces Analysis

HIGH

HIGH

HIGH

MED

Porter's Five Forces Analysis

HIGH

Swot analysis
Strength
Market reach for both rural and
urban area
Availability of raw materials
Low operational cost
Opportunities
Purchasing power increases
Health camp
Low dentist population ratio

Weakness
Point of parity
Research and development

Threats
Well established
competitor
subsitutes

Overview
Total market of 750 crores.
Growth rate of 18.6%
Per capita usage mere 85 gms per person.
Major player Colgate Palmolive and HUL

Top ten tooth pastes

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)

MARKET SHARES - TOOTHPASTE

3 companies taken for analysis

Colgate
HUL
Dabur

Colgate

Introduction
In 1806, William Colgate introduced starch, soap and

candle factory on Dutch Street in New York City under the

name of "William Colgate & Company".
Colgate Palmolive company is an American diversified
multinational corporation focused on the production,
distribution and provision of household, healthcare and
personal products, such as soaps, detergents, and oral
hygiene products (including toothpaste and toothbrushes).
In 1873, the firm introduced its first toothpaste, an
aromatic toothpaste sold in jars.

OSITION IN GLOBAL MARKET

Future strategy on 4p`s basis:

1. Product:
They try to position some innovative toothpaste with a brand name

other than Colgate but under the umbrella of Colgate Palmolive.

Focusing toward rural rich and consuming class by endorsing the
development of Colgate Ayurvedic Toothpowder.
They would come up sachets of these tooth powder and position
toward rural population who buy in smaller lots.
For Urban population, they would come up
with the products suiting to young generation.
For Urban rich and consuming class, they would come up with the
products on the basis of functional benefits.
Eg: they launch a special toothpaste for kids in the age group from 4-10
years.

2. Price
Based on the competitor's price .
Pricing done on the basis of price points
Packaging would be customized on the basis of price

points.

3. Promotion
They

positioning Colgate dental white crme and

toothpowder towards rural rich segment.
For rural consuming class they endorsing Cibaca
toothpaste.
Advertisement through T.V. media, Print media.
FM Radio for Urban population & MW and SW radio for
Rural population.
Hoarding on National highways.

4. Place

They would try to increase product penetration to rural

population.
They would try to increase the wholesalers to smaller
towns.
They would track the distribution path so that they are
covering all the village areas around the towns

Distribution strategy

Dentists and plastic surgeons.

Drug stores or Grocery stores.
Large retail stores and department stores.

ADVERTISEMENT

In 1940,the Colgate Company used

Slogan was "It cleans your breath

while it cleans your teeth " .
The 1960s onwards, the slogan was
"The Colgate ring of confidence" .
In the late 1950's and early 1960's,
Colgate stressed the fact their
"Dental Cream" contained Gardol,
a formula that helped protect teeth
from cavities and tooth decay .

"Gardol" was actually their trademark for the

ingredient Sodium lauroyl sarcosinate .
Now they used various Slogan for different different
products like For MAX FRESH is A Whole new
Dimension of Freshness & For WHITE TOOTHPASTE is
All Around Decay Protection.

Promotional tools

Increasing circumference of toothpaste tube.

Free Dental Check-up in mobile vans

Target Market
Kids :
Sparkling gel comes in 2 exciting variants Bright Pink gel ,
and Bright Blue gel ,yummy Bubble Fruit flavour
Tweety and bugs bunny are favourites with kids
The fruity bubble gum flavour kids brush longer developing
good oral care habits
Family :
Strong teeth and fresh breath
Developed using Colgates international expertise in oral care
Unique formula protects teeth from decay
Refreshing minty flavour makes breath
super fresh
Youth :
Icy wave of minty coolness
Cooling crystals and emphasis on taazgi

People with sensitive teeth

Fights pain due to
sweet/sour/hot/cold foods by desensitising nerves
Helps maintain the natural whiteness of your teeth
Significant inhibitory effect on the formation of supragingival calculus
Pleasant taste
Notice improvement in 2-4 weeks
Relief from the pain of sensitive teeth
Proven protection from sensitivity with regular use
Fresh breath

Marketing Strategies
Market Dominance
Market leader - dominance in Oral Care
Catering to all the segments -long product line
Massive advertising, awareness ,especially in
child segment
Product Differentiation
Different packaging for all its product line
Changes packaging according to product innovation
Differentiation due to massive promotion on channels
Create a different image in the eyes of consumers
Innovation Strategy
Pioneered in new product development and business
model innovation
Cutting edge technology- innovation strategy

Segmentation:

Colgates 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 wouldnt
damage their gums.

Positioning and creating Brand

Equity
Consumer- more health and hygiene conscious
Vast consumer base in India
Sectoral opportunity in other oral products
Smaller packs to drive growth
Direct media promotions
Operation Jagruti program

Educate villagers about oral hygiene

Its benefits vis--vis traditional products like Neem
Conducted by giving product trials and free samples

Hindustan Unilever Limited

PEPSODENT
CLOSE UP

Hindustan Unilever Limited

In India since 1895
Formed by merging3 subsidiaries of unilever limited

in 1956
A $2.2billion company
Indias largest FMCG company
Over 20 distinct product categories
Market leader across categories

PRODUCT

Pepsodent has its products

which cover a large area

Their products are
Pepsodent Germicheck +
Pepsodent Whitening
Pepsodent 2 in 1
Pepsodent G
Pepsodent Kids

PRICE

PRICE

TYPE

PEPSODENT

COMPETITORS

Vanilla variants

Pepsodent Germi-Check
Rs. 62 for 200g.

Colgate Dental Cream

Rs. 65 for 200g

Gel variants-

Pepsodent Center Fresh

Rs. 65 for 150g

Colgate Max Fresh

Rs. 64 for 150g

Whitening variants

Pepsodent WhiteningRs. 65 for 150g

Colgate Max WhiteRs. 65 for 150g

Gum care variants-

Pepsodent GRs. 37 for 80g

Colgate SensitiveRs. 80 for 80g

Pepsodent SensitiveRs. 80 for 80g

SensodyneRs. 80 for 80g

Colgate Sensitive Pro-reliefRs. 120 for 80g

PLACE

PLACE

PRODUCT DISTRIBUTION CHANNEL

PROMOTION

Along with an offer of free dental check-ups, HUL is

also planning to organise health camps involving

villagers to fortify its campaign.
To promote Pepsodent, we will also offer free samples
to the villagers to try out the product and offer
discount coupons on wrapper redemption schemes,

Brand Ambassador
In May,2010, Pepsodent had roped in Shah Rukh

Khan to be their Brand Ambassador.

SRK had been roped in for pepsodents latest
campaign Pappu & Papa

Free Gifts
Pepsodent had

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.

Segmentation

TARGET MARKET SELECTION

Pepsodent is currently into Selective Specialization
Pepsodent Kids for kids
Smaller and cheaper variants for rural markets
Pepsodent complete for the educated urban

consumer

Positioning Matters

Pepsodent 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 have experimented with its positioning althrough its life.
Ad Campaigns to supplement this positioning:

Lasting Protection for hours

Germ Fighting Campaign
Dental Insurance
Dishum Dishum
Bhoot Campaign

Dabur India Limited

Established in 1884 : 125 Years of Trust & Excellence
Indias leading FMCG Companies with Sales of Rs.52,832 million , Market
Capitalization of Rs.2,09,133million & Net profit of Rs.6,449million
Worlds largest Ayurvedic and Natural Health Care Company
Consumer products categories like Hair Care, Oral Care, Health Care, Skin Care,
Home Care and Foods
Distribution network, covering over 2.8 million retail outlets
Available in over 60 countries across the globe
17 world class manufacturing plants catering to needs of diverse markets
Dabur's overseas revenue today accounts for over 30% of the total turnover

Key Players: FMCG

Source: Dabur Corporate Profile August 2012

in Rs. million

Market Cap. as of Aug 8,2012

ProductMixWidthStrategy
Home Care
Home Care

Hair Care

Skin
Care

Personal Care

Foods

Digestives

OTC and
Ethical's

Oral Care

Health
Supplement

International Sales (FY 12)

6%

22%

26%

16%

30%

Source: Dabur Annual Report 2011-2012

Africa
Middle East
Asia
US
Others

12 Billion- Rupee Brands

Dabur Amla
Dabur Chyawanprash
Vatika
Real
Dabur Red Tooth paste
Dabur Lal Dant Manjan
Babool
Hajmola
Dabur Honey
Glucose
Fem
Odonil

INDUSTRY COMPETITORS

DABUR

Colgate-Palmolive Ltd.

HUL(Hindustan
Uniliver Limited)

P&G(Proctor
&Gamble)

Four Ps of Dabur
PRODUCT

1.Dabur red
toothpaste
a) 200 gm
b) 100 gm
c) 50 gm
d) 20 gm
2.Dabur Meswak
e) 200 gm
f) 300 gm

PRICE

65
42
17
12

75
112

PLACE OR
DISTRIBUTIO
N CHANNEL

PROMOTION

Manufacturer

Wholesaler

Retailer

Consumer

TV commercials
Newspapers
POP Display
Wall Painting
Video Vans

Four Ps of Dabur
3) Babool Tooth
Paste
a) 380 gm
b) 190 gm
c) 90 gm
d) 50 gm
e) 30 gm

Manufacturer
Wholesaler
65
42
20
15
10

4) Promise 340 gm 65

Agents

Retailers

TV commercials
Newspapers
POP Display
Wall Painting
Video Vans
Sales Proportions

Product line length strategy

Hair oil

Shampoo

Oral care

Skin care

Digestives

Dabur amla hair

oil

Dabur vatika
shampoo

Dabur red tooth

paste

Gulabri skin
care

Hajmola tablets

Vatika hair oil

Babul mintfresh gel

Dabur uveda

Hajmola candy

Dabur Almond

Babool tooth
paste

Fem Range

Hingoli

Promise
toothpaste

Pudin Hara

Meswek

Pudin Hara
Lemon Fizz

Lal dant manjan

Nature Care

Pricing Strategy :
Dabur implented value based, cost based, compititor based pricing
stragies.
Value based:
pricing is done based on companies'
Ex:chwanprash

image in the

Cost based:

pricing is done based on cost of production.

Ex: hajmola.
Competitor based:

pricing is done based on competitors.

Ex: vatika dandruff control shampoo.

market.

Segmentation is done only on the basis of

income of the consumers. So they have made
sure to produce a product in different quantity
and made it available to every customer. Under
the new strategy, Dabur segmented its products
into two - those operating in larger urban
markets requiring exclusive category focused
sales and those meant for smaller towns and
rural markets requiring an integrated sales force.
Dabur has a wide portfolio catering to all the
categories
Masses
value seeking
premium.

Targeting: Dabur's latest move follows the

company's recent rejig in 'route to market'
strategy to utilise synergies across divisions,
maximise reach and maintain cost.
Dabur plans to double its rural reach to
have direct access to some 27,000 villages
with more than 3,000 people this fiscal, in a
bid to keep pace with market leader
Hindustan Unilever.

Positioning
Youth
Health conscious people
School children
Mothers
Existing old age groups

Dabur Herbl Toothpaste positioned as a herbal alternative

to other toothpaste brands.
Dabur International, one of the most trusted and
recognized personal and healthcare brands in the world, has
revealed that its Dabur Herbl Toothpaste, a new range of oral
care products specially formulated with herbs, has been
positioned in the market as a healthier oral care
alternative, as it does not contain chemicals that can cause
harmful effects on the teeth such as dental fluorosis.
It has taken a strong head start in the Middle East market as
it is specially formulated with trusted herbs that are actively
used in the region for various health purposes.

F ACTORS INFLUENCING BUYING BEHAVIOUR

FACTORS

HIGH/ME JUSTIFICATION
DIUM/LO
W
IMPACT

Cultural factors High

impact

As dabur company is based on ayurvedic

and natural methods. Ayurvedic is
basically from and Indians believe that
method.

Social factors

Dabur is having a history of 125 years.

Its a well known and old company in the
society, and as companys vision is to
provide the well being of society.

High
impact

Personal factors High

impact

Dabur products are categorized into

oral care, hair care, skin care, health
care, food, home care, which mainly
concentrate on children, old age
people, womens teenagers etc.
company is promoting its products
through famous celebrities like amitab
bachhan, dhoni,rani mukharjee etc.

Pschycological
factors

Dabur is old, and well known

company, mainly it is ayurvedic based.

Medium
impact

Dabur is international company

customer has trust on dabur company.

Conclusion
Nature is the lifeline of Dabur company. Dabur

works in active collaboration with nature to

provide the best of ayurvedic ,herbal health
and personal care products to its consumers.
They define their business in ways that provide

societal, environmental, and economic

benefits to the communities and Geographics
where they operate.