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COLGATE MARKETINGIN INDIA

'Brush your teeth the Colgate way, every day,' ends the long copy from a 1939 print ad for
Colgate. And every day since then millions of Indians, young and old, have used the oral-care
brand in various forms, everything from powder to paste, for generations. It is perhaps the
consumer's first brand encounter of the day. That is of course if oral hygiene takes
precedence over breakfast routine.

Colgate Palmolive is a well-reputed company with a large series of its well-known products
having different varieties in terms of flavor. Colgate Palmolive is the world leader in oral care
industry. They cater the need of different segments by offering innovative products.

Colgate Palmolive India

 Headquarter in Mumbai with an annual Turnover around 1100 crs

 Market leaders in Oral care
 Colgate consistently won India’s no 1 brand of the year award from last three years
 Colgate Ranked among Best Employer in India

In the oral care product segment following Colgate Palmolive are the toothpaste
available in Indian market:
1. Colgate Dental Cream
2. Colgate Total 12
3. Colgate Sensitive
4. Colgate Sensitive-Pro-Relief
5. Colgate Max Fresh
6. Colgate Kids Tooth Paste
7. Colgate Fresh Energy Gel
8. Colgate Herbal
9. Colgate Cibaca Family Protection
10. Colgate Active Salt
11. Colgate Maxwhite

The study has been divided in three major parts:

 marketing strategies .
 communication strategies .
 branding strategies
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Marketing
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Marketing Channel Strategies:

The company had 1713 direct stores as of may 2010. The oral care distribution network is distribution network is
spread across 90 cities in India. The company products are available across 4.3 mn retail outlets. Flag ship
Brand – Colgate Dental Cream is the largest distributed product in the Toothpaste market available in 4.1 MM
stores. Serviced by Company field force, more than 1800 stockiest & super stockiest & their field force

Distribution Channel of Colgate Palmolive

Colgate uses different marketing channel strategies for its different toothpaste product. We have analysed some
of the marketing channel strategies used by Colgate Palmolive:

1.1.1 Channel of distribution:

A set of interdependent organizations that help make a product or service available for use or consumption by the
consumer or business user. Colgate Palmolive uses all the available intermediaries wholesalers, retailers, and
stockist. Distribution strategy for the Colgate Total is Indirect. It is through Dentist, plastic surgeon, drug stores,
grocery stores, large retail stores and department stores.

1.1.1 Channel level

A layers of intermediaries that perform some work in bringing the product and its ownership closer to the final
buyer. Colgate Palmolive uses level 2 channel level containing wholesalers and retailers.

1.1.2 Channel conflict

Disagreement among marketing channel members is generated when one channel member’s action prevents
another channel from achieving its goal. Colgate Palmolive fallow the traditionally distribution channel not
involving overlapping of intermediaries so there is very less amount of channel conflict.

1.1.3 Intensity of distribution

As the product is daily useable commodity so the company is using intensive distribution.
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1.1.4 Multichannel distribution system

As the time changes the companies changed from single channel distribution system to the multichannel
distribution system, often called as hybrid marketing channels. Multichannel marketing occurs when a firm sets
up two or more marketing channels. With each new channel, the company can expand its sales and market
coverage. But those are hard to control, and may create conflicts. Colgate Palmolive uses the Multichannel
distribution.

1.1.5 Recommendation
 § Dentist’s plays a big role in the distribution of oral care products. Colgate Palmolive should more
focus on distribution of toothpaste in dentists’ offices.
 § Colgate Palmolive should focus more strongly on other retail locations, even it adapted intensive
distribution there is still scope of other retail location where small unknown brand capture the market share.
 § Colgate could direct market the toothpaste by sending special coupons in the mail to consumers,
or by offering rebates to consumers who purchase other Colgate-Palmolive oral care products.
 § The toothpaste could be distributed through plastic surgeons because many people who visit a
plastic surgeon are concerned about their appearance, and would likely consider the different options
available to them that will enhance their appearance, such as their teeth.
 § It could be distributed through make-up departments because most people who shop for make up
at large department stores are also concerned with looking their best.
 § The company can approach the government to distributing the products in military canteen or
other organisation which needs these oral care kind products.
 § The company can come up the concept of forming a retail chain of oral care products across all
over India as it is follows the marketing strategy of Umbrella branding.

1.2 Distribution Channel

The distribution strategy proposed is through dentists, plastic surgeons, drug stores, grocery stores, large retail
stores, and department stores. Therefore, Colgate Total channel system is indirect because its consumers are
spread throughout many geographic areas and often prefer to shop for certain products at specific places.

Beside convenience stores and large retail stores, many food stores play a key role in the distribution of oral
health care products. “Mass merchandisers gained share due to increased in-store promotional support”.
Because of the increase in the demand for oral care products, stores began shelving more oral care products.
This is a big advantage for Colgate because there would be more room in the stores for them to market the new
Colgate Total. Dentists also play a big role in the distribution of oral care products.

Customer service level desired by target market

Colgate uses store promotions to provide the customers with a high customer service level. The product will be
stocked to provide rapid and dependable delivery to the customer.

Examples:
 § Retails: Reliance, Big Bazaar, Hypercity, Food Bazaar, etc.
 § Small Retails: Religare Health, Doral pharmacy, Fontainblue Store, etc
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Transportation:
 · Truck
 · Rail
 · Water
 · Air

1. 3 Sales Force Design

1.3.1 Sales Force Objective and Strategy

In January, sales teams are apprised of the yearly objectives, which are framed from the
Organization goals for the year. Colgate uses ‘360-Degree’ marketing to reach its
customers and the Sales force is empowered to understand its Marketing strategy, build
relationships with large and small retailers. Colgate continues to make investments in
training to improve the skills of its people and expand their capability to deliver strong
business results. For example, every Colgate employee attends a program called
“Valuing Colgate People” that stresses Colgate’s global values of Caring, Continuous
Improvement and Global Teamwork as well as the importance of treating all people with
respect. Personal Selling, Customer Relations, in-store monitoring of consumer
behaviour etc. are employed depending on the stage a product is in its PLC. It wants to
have brand leadership across all its brands. It assigns specific priorities to each product
category which is agreed upon by all geographies and functions.

1.3.2 Sales Force Structure

Colgate Sales Teams are structured on a functional basis. But since it’s a MNC, they also employ a Matrix
structure. Their product categories don’t have dedicated Strategic Business Units but are centrally
governed. This enables the sales force to handle a broad portfolio and develop a holistic perspective of the
business. In India their Sales & Distribution function operates in branches in the four metropolitans. Each
branch comprises a multifunctional sales team and a field force, to plan and implement various trade
schemes and drive sales volumes.

In India, sales teams report to the Function Heads of each function, who in turn report to the Managing
Director. Each Function Head also reports to the Divisional Function Head, who in turn reports to the Global
Category Head.

1.3.3 Sales Force Size

Colgate employs Sales force of differing sizes based on their strategy for the product and the estimated
workload for the product. For example in oral care, they have expanded the size of the Colgate professional
sales force who visit dental offices, and are placing a sharper focus on partnering with academia and key
opinion leaders. This is based on Colgate’s strategy to drive growth through relationships with dental
professionals. Endorsements by these professionals strengthen customer perception about the product,
drive trial, long-term loyalty and in turn market leadership for Colgate.
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1.3.4 Sales Force Compensation

The appraisal period for Colgate-Palmolive is January-December. Employee achievements are measured
against these objectives. Stress is not only on results but also methods behind the results and adherence to
the Organization principles.

There is a half yearly performance appraisal as well. Regular coaching and feedback for the salesperson is
emphasized for his development in the organization.

Colgate offers competitive compensation which depends on the level of responsibility, qualification and
experience of the candidate. Compensation levels are driven by:
o  Market Compensation standards
o  Internal compensation structure
o  Performance and Potential of candidate

Communication
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Marketing Communication Objectives

The communication strategy objective is category need and brand attitude

Colgate has a variety of products in its product line- Colgate dental cream, Colgate Activ Salt, Colgate
Cibaca, Colgate Total, Colgate Sensitive Pro-relief. Each product has its own communication objectives,
and these are widely discussed in detail.

Colgate has always positioned themselves as the most recommended toothpaste by the dentists and this is
always seen in all their communications.

The various marketing communication objectives for a product are as follows:

1) Category Need: To establish a product or service category to remove or satisfy a perceived

difference between current motivational state and a desired emotional state.

2) Brand Awareness: Ability to identify the brand within the category in sufficient detail to make a
purchase.

3) Brand Attitude: To evaluate the brand with respect to its perceived ability to meet a currently relevant
need.

4) Brand Purchase Intention: Self instructions to purchase the brand or to purchase-related action

Communication Objectives- Product Wise

Colgate Sensitive Pro Relief :

With Sensitive Pro Relief, Colgate has tried to create a new product category in the premium sensitive teeth segment.
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The sensitive segment is a niche category, and its major competitor is Glaxo Smithkline’s Sensodyne.

According to media reports, around 17% of individuals in India suffer the condition of sensitive teeth.
Sensitive teeth are a condition where the individual suffers sharp pain while consuming anything that is hot
or cold. Since the awareness about remedy for this condition is low, most consumers avoid consuming
foods that causes this pain. Consumers often fear going to dentist because of perceived painful dental
measures. Instead they choose to control their intake of chilled food and not address their remedy. This is
perhaps the most important challenge that Sensitive Pro-Relief faces in cracking the Indian market.

Sensitive through its campaign using “chilled-tests’ has able to create a category need i.e sensitive teeth.

Moreover the communication also shows how the brand is able to provide relief to the people who feel pain
in consuming anything cold. This is how they are able to fulfil their objective of changing brand attitude

Colgate Dental Cream

Colgate Dental Cream has been the flagship brand of Colgate. It has been able to maintain its positioning in
the germ-fighting segment. It had the famous ‘Suraksha Chakra’ platform from where it built the brand to
this level.

Their communication strategies have always been the focus on “brand attitude” and brand awareness where
they tried to showcase their germ-fighting capabilities through its advertisements. CDC has always faced competition
from Pepsodent of HUL and many local brands.

Colgate Total
Colgate Total showcases the toothpaste as “12-hour protection” that gives protection from 12 problems like
cavities, plaque etc.

The objective is again based on brand attitude.

Colgate Activ Salt

Colgate Activ Salt tries to focus on its gum strengthening quality, and the communication is based on
creating brand awareness and brand attitude . The advertisement shows how a person in a flight was asked by a
correspondent about whether his toothpaste has salt or not. The strategy is to create awareness among the consumer
about the benefits of the brand by showing the advantages of salt in toothpaste.

Recommendations
 The advertisements should also focus on “Brand Purchase Intention”. They should drive customers
for repeated purchases, and thus help in expanding the market by increase in volume. It can be made through
showing a certain quantity of toothpaste needed to have a good teeth cleaning, and thus help in expanding
the volume.

 In the sensitive segment, the focus should now shift to “brand awareness”, as the first phase of
communications has been able to create the need for the category. Now the consumers must be able to recall
the brand i.e. they must identify the brand outside the store and not just inside.
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 Colgate also follows the industry pattern in selecting the media option. Most of the marketing
communication is focused on the television advertisement. But Colgate also relies heavily on word
of mouth communication medium. It takes up initiative to educate people on how to take care of
their teeth and help them have stronger teeth and healthier gums. It has recently launched a
program to educate people who have sensitive teeth. For this they tie-up with dentists who offer
free advice to people in public places like shopping malls. This creates a sense of authenticity in
their communication.

 Colgate as of now is not very aggressive in online advertising. Of all the segments of the
advertising market, the internet advertising segment is expected to be the fastest growing segment
with an expected growth rate of about 35% between 2010 and 2011. This is expected to grow at
approximately the same rate till 2016. High-end products which require high involvement of
consumer could be advertised through this medium. This could be a medium to explore.

 Radio is generally a stable medium for communication. India with its liberalizing radio regime is
likely to experience the world’s fastest growth rate for radio up by 21.9% each year on average
through 2016.Radio becomes a generally tactical medium for some advertisers, or a vehicle to
bring down costs per contact for others. The percentage of the population using autos for
commute is increasing and therefore the time those commuters spend in their cars will increase as
well, adding to aggregate levels of radio consumption. This medium could be used to remain in
constant knowledge of consumer.
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Branding
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Branding Strategy
Colgate has developed a powerful Branding Strategy which has significantly helped the
Brand in acquiring substantial amount of share in the oral care market of India. The
Brand Colgate emerged as a market leader as it bagged considerable amount of market
share in all the segments of oral care market like toothpaste segment, tooth powder
segment and toothbrush segment.
Colgate has succeeded in establishing its Brand Image and gaining substantial market
share in spite of facing tough competition from the brands like Hindustan Liver, Babool
and Anchor. Still the Brand Colgate is continuously updating and improving its' branding
strategy in order to strengthen its' Brand Name and Brand Identity.
The future Branding Strategy of Colgate may comprise the following steps and actions :

 For maintaining the Brand Equity in the market, every company requires a
system of continuous growth and upgradation . So, in order to develop new products,
Colgate may give emphasis on Research and Development Projects.

 The Brand Strategy of Colgate also aims at reaching to the rich and consuming
customers of rural India by introducing some Ayurvedic Oral Care Products.

 In order to strengthen its' Brand Image in the urban market of India, Colgate may
launch some oral care products specifically targeting the urban youth and the urban
rich class.

 Colgate Branding Strategy aims at introducing some special oral care products
which will focus on functional benefits. The Brand can launch specific oral care
products for different age groups.

 The Branding Strategy of Colgate also plans to customize its packaging

techniques, based on price points. This, in a way will establish a new pricing
strategy.

 Colgate Branding Strategy has a objective strengthening its' business promotion

network. The company is undertaking advertising strategies and campaigning
programs with the objective of reaching to the customers of India across income
classes.

Brand Update
Colgate celebrates October as Oral Health Month. This is a unique example of a brand embarking on
strong value system. Colgate has long been positioned on the oral hygiene platform. Strong teeth and
prevention of tooth decay has been the main communication points of this brand. To further reinforce
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this positioning and also to demonstrate the brand's commitment towards society Colgate observes
October as the oral health month. Colgate also sponsors various initiatives to educate the masses
about proper oral hygiene.Colgate for the first time tried an animated viral campaign aimed at
youngsters. The brand uses a fictional plot involving a dangerous new species Germosaurus which
evolved from the germs that causes tooth decay.

Germosaurus
Colgate has set a grand vision for itself. The mission aims at ZERO tooth decay. The brand is trying to
promote this vision through various initiatives in partnership with Indian Dental Association. Brand
offers many potential benefits:
a. Building brand awareness
b. Enhancing brand image
c. Establishing brand credibility
d. Evoking brand feelings
e. Creating a sense of brand community
f. Eliciting brand engagement
g. Humanizing the firm.

Colgate has been a consistent topper in the Brand Rankings throughout the world. The reason behind
a brand sustaining its world leadership position is that it had identified a much nobler cause than the
usual market share numbers.

Most Trusted Brands 2012: How Colgate has

managed to retain the top-most ranking
Brand Colgate has come a long way since the days when a tube cost 14 annas. Today, in
addition to a wide range of toothbrushes, mouthwashes, whitening and expert care products,
Colgate has well over ten variants of toothpaste including everything from regular plain ol'
white paste and flavoured toothpaste for kids to Active Salt and Sensitive Pro-relief

In a hyper-competitive consumption-driven market like India, most virtual monopolies,

from Maruti Suzuki to Nokia, have had to contend with steady erosion in market share over the years.
Whilst the share of India's No 1carmaker is today well below 50 per cent, the Finish handset
manufacturer's leadership position is under constant threat from Samsung.
 Against such a backdrop, one long-standing consumer brand has been not just holding on to
its pole position but actually inching further head in its core category of oral care. In the first
half of calendar year 2012, Colgate Palmolive India's market share in the toothpaste
market stood at 54.5 per cent, its highest since 1998, a rare instance of a market leader
gaining new ground.
 Aggressive marketing and a huge 32 per cent jump in advertising spend in the first quarter of
fiscal year 2013 over a year ago coupled with a launch of new variants across consumer
segments has helped the largely single-product company drive growth.
.
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 Unlike most virtual monopolies that typically have few competitors - think Google in
internet search and ESPN in sports television in the US - Colgate's rise has been in a
highly competitive market. The biggest threat to Colgate in India is Hindustan Unilever
Ltd (HUL), which has put its might behind two brands, Close-Up and Pepsodent.
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 The other MNC in the game is GlaxoSmithKline Consumer Healthcare with Aquafresh and
Sensodyne.
 Dabur leading the way with three brands on the ayurvedic platform plus the Promise label that
it had acquired from Balsara in the mid-2000s.
 Other local brands that keep the big boys on their toes include Vicco and Anchor.
Colgate's India top team is publicity-averse - the company was unwilling to participate in this feature -
and that may not be a bad thing for the brand. "The brand is not bigger than the leadership. Its
leadership is anonymous yet the brand does exceedingly well in the market," says Jagdeep Kapoor,
founder Samsika Marketing Consultants

Conclusions & Suggestions:

Other categories in the Colgate portfolio include the Palmolive range of personal care products (body
washes and hair gels) and dishwashing paste brand Axion.
Colgate has backed its extended product range with robust distribution clout. The essentially
single-brand company has one of the widest networks, touching 4.5 million retail outlets in
India."Colgate's sustained distribution strength, coupled with product innovation and creation of
sub-categories such as mouthwash and sensitive oral care have helped it drive growth
aggressively, explains Gautam Duggad, vice president, equity, at Motilal Oswal.
Analysts, however, warn that the HUL threat and forays like the first move by GSK in the sensitive
teeth segment with Sensodyne - which forced Colgate to react with the Sensitive extension - will keep
the leader on its toes.