Colgate Palmolive

Background Toothpaste has a history that stretches back nearly 4,000 years. Until the mid-nineteenth century, abrasives used to clean teeth did not resemble modern toothpastes. People were primarily concerned with cleaning stains from their teeth and used harsh, sometimes toxic ingredients to meet that goal. Colgate-Palmolive Company is an American multinational consumer products company focused on the production, distribution and provision of household, health care and personal products, such as soaps, detergents, and oral hygiene products. Colgate-Palmolive is Rs1, 300 crore company started in year 1937.In Rs2, 400 crore domestic market it enjoys 50% of market share. It spread across 4.5 million retails outlets out of which 1.5 million are direct outlets. The Company is having four wholly owned subsidiaries namely Colgate-Palmolive (Nepal),Multimint Leasing & Finance and Jigs Investments and Passion Trading & Investment Company. In November 2007, it acquired a 75% equity interest in Advanced Oral Care Products, Professional Oral Care Products and SS Oral Hygiene Products, the company is the fastest growing and one of the oldest company catering to the personal care products. The company is regularly coming up with new products and has been a consistent financial performer. In July 2009, the Bombay High Court sanctioned the amalgamation of both subsidiaries of the company Advanced Oral Care Products, Goa and Professional Oral Care Products, Goa. In March 2010, Colgate Palmolive (India) has acquired the remaining 25% of stake in CC Health Care Products from the local shareholders at an aggregate price of Rs 69.07 lakh. Colgate already has 75% stake in CC Health, which is engaged in the manufacture of toothpowder at Hyderabad. In 2003 Colgate was ranked as Indias Most Trusted Brand across all categories by Brand Equitys Most Trusted Brand Survey for four consecutive years from 2003 to 2007.

Products Oral care-Under this segment the company offers product like toothpastes, toothbrush, tooth powder & tooth whitening products. Personal care -In this segment it offer products skin care, hair care, body wash, & shaving creams Household care-Under this segment it has launched brand AXIOM-a dish washing paste. From the Dentist - New products line introduced by the company under which it provides products like Gingivitis Treatment, Colgate Sensitive treatment, Tooth Whitening, Fluoride Therapy, Mouth Ulcer Treatment, Specialty Cleaning.

It has also introduced new products namely Colgate dental floss, ORAGARD-B a mouth ulcer cream etc. In 2011 Colgate-Palmolive (India), the market leader in oral care, has introduced Colgate 360 Surround a ground-breaking and innovative toothbrush with a unique head. The key competitors are :
Company Hindustan Unilever Godrej Consumer Prod Dabur India Colgate Palmol. (I) Marico Godrej Industries Emami P&G Hygiene Gillette India Nirma Bajaj Corp Jyothy Laboratories Reckitt Benckiser Jyothy Consumer Prod Fem Care Pharma Rayban Safal Herbs Sales (Rs.Million) 221163.70 29800.80 37593.30 26932.27 29703.00 14380.40 13898.15 12974.09 12328.98 62315.80 4733.15 6629.69 34934.98 4507.58 1074.71 463.90 6.29 Current Price 471.10 780.75 143.20 1321.45 217.20 293.20 603.05 2532.70 2043.10 255.50 236.05 152.00 246.25 33.80 980.05 136.35 23.40 Change (%) 0.26 0.22 1.74 0.95 -0.07 0.12 2.05 0.21 -1.66 0.00 0.73 -4.40 0.00 -0.73 0.00 0.00 1.96 P/E Ratio 27.56 51.18 44.31 35.63 34.48 59.71 30.59 44.06 82.32 31.66 22.86 28.21 2.39 0.00 18.50 13.98 0.00 Market Cap.(Rs.Million) 1018740.71 265710.25 249588.29 179707.71 140044.43 98270.65 91248.55 82213.31 66574.86 40684.72 34817.38 24512.13 8104.87 3936.50 3458.99 3336.88 2340.00 52-Week High/Low 580/400 832/465 145/101 1580/1098 250/166 332/221 743/409 2785/2000 2624/1951 259/214 264/114 208/80 0/0 46/23 1010/980 137/135 65/14

Consumer behaviour Consumer purchases are influenced strongly by or there are four factors. 01. Cultural Factor 02. Social Factor, 03. Personal Factor, 04. Psychological Factor

01. Cultural Factor:Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class Culture:The set of basic values perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Culture is the most basic cause of a person's wants and behavior. Every group or society has a culture, and cultural influences on buying behavior may vary greatly from country to country Culture has a great influence on the behavior of a consumer. Because people learn from the society. If the culture of a country cannot suggest using toothpaste or Colgate is good quality toothpaste then people will not buy this. Sub Culture:A group of people with shared value systems based on common life experiences and situations. Each culture contains smaller sub cultures a group of people with shared value system based on common life experiences and situations. Sub culture includes nationalities, religions, racial group and geographic regions. Many sub culture make up important market segments and marketers often design products If the experiences of the group say that Colgate is bad toothpaste then people will not buy this product. Social Class:Almost every society has some form of social structure; social classes are society's relatively permanent and ordered divisions whose members share similar values, interests and behavior. If the social class of people is low or much high then people do not buy Colgate

02. Social Factors:A consumer's behavior also is influenced by social factors, such as the (i) Groups (ii) Family (iii) Roles and status Groups:-

Two or more people who interact to accomplish individual or mutual goals. A person's behaviors are influenced by many small groups. Groups that have a direct influence and to which a person belongs are

called membership groups. Some are primary groups includes family, friends, neighbors and coworkers. Some are secondary groups, which are more formal and have less regular interaction. These include organizations like religious groups, professional association and trade unions. Sometimes groups make the choices of an individual. Family:Family members can strongly influence buyer behavior. The family is the mostimportant consumer buying organization society and it has been researchedextensively. Marketers are interested in the roles, and influence of the husband, wife and children on the purchase of different products and services In context of Bangladesh if the head of family choice Pepsodent rather than Colgate, so the family cannot use other paste. So we can say that family has a influence on the consumer behavior. Roles and Status:A person belongs to many groups, family, clubs, and organizations. The person's position in each group can be defined in terms of both role and status. For an example, M & "X" plays the role of father, in his family he plays the role of husband, in his company, he plays the role of manager, etc. A Role consists of the activities people are expected to perform according to the persons around them Lower-lower and Upper-Upper people will not buy same product. Because they have different roles and status in the society.

03. Personal Factors:It includesi.Age and life cycle stage (ii) Occupation (iii) Economic situation, (iv) Life style,(v) Personality and self concept. Age and Life cycle Stage:People change the goods and services they buy over their lifetimes. Tastes in food, clothes, furniture, and recreation are often age related. Buying is also shaped by the stage of the family life cycle Children and old do not want to use toothpaste where the very older has no teeth and children like taste. So age has the influence on consumer behavior. Occupation:A person's occupation affects the goods and services bought. Blue collar workerstend to buy more rugged work clothes, whereas white-collar workers buy more business suits. A Co. can even specialize in making products needed by a

givenoccupational group. Thus, computer software companies will design different products for brand managers, accountants, engineers, lawyers, and doctors A doctor is always conscious about their health where a student has not same consciousness. And also the choice and buying capacity of a product is depends on their occupation. It varies according to their jobs category Economic situation:A person's economic situation will affect product choice Life Style:Life Style is a person's Pattern of living, understanding these forces involvesmeasuring consumer's major AIO dimensions.i.e. activities (Work, hobbies, shopping, support etc) interest (Food, fashion, familyrecreation) and opinions (about themselves, Business, Products) Life Style is a person's Pattern of living, understanding these forces involvesmeasuring consumer's major AIO dimensions. I.e. activities (Work, hobbies,shopping, support etc) interest (Food, fashion, family recreation) and opinions (about themselves, Business, Products) Personality and Self concept:Choice of a product depends on the personality and the self concept of anindividual. Personality depends on the status and self concept depends on the perception. 04. Psychological Factors:It includes these Factors (i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes Motivation:Company must take some motivated activities to persuade the customer. Ex-Advertising, give some free etc. Perception:oThe process by which people select, Organize, and interpret information to form ameaningful picture of the world. The company must try to create the positive perception on the mind of individual. Learning:Perception filters a thing and then take decision it should be taken or not. It means perception filter the knowledge and gives the shape of learning. Beliefs and attitudes:-

Belief is a descriptive thought that a person holds about something. So company always tries to make belief through making reliability. Attitude, a Person's consistently favorable or unfavorable evaluations, feelings, and tendencies towards an object or idea.

Rural marketing i) There are various reasons why every industry is taking a very serious look at rural markets: About 285 million live in urban India whereas 742 million reside in rural areas, constituting 69% of India's population resides in its 6, 00,000 villages. ii) The number of middle income and high income households in rural India is expected to grow from 80 million to 111 million by 2007 while urban India is expected to grow from 46 million to 59 million. Infact according to a recent survey, there are more crorepatis in rural Punjab than in a few big urban cities. iii) More rural development initiatives by the government. iv) Increasing agricultural productivity leading to growth of rural disposable income. v) Lowering of difference between taste of urban and rural customers. vi) Good Monsoons in the last couple of years. vii) Growing rural infrastructure. viii) Size of rural market is estimated to be 42 million households and rural market has been growing at five times the pace of the urban market. Opportunities in rural market Massive market - 12.2% worlds consumers in India Total Income above 43% of national income A huge growth prospects for every sector From 4P to 4A Challenges Scarcity of media bandwidth Slow to adopt brand & slow to give them up Seasonal income, yearlong expenses Receptivity to advertising with low persuasions Commercially profitable & socially acceptable Consumer profile Older generation: Misri user (traditional ground tobacco), salt, ash, neem Middle aged: toothpowder users Younger generation: toothpaste user

Colgate 4 As Availability: Used Taluka as center Affordability: Sachets & offers Acceptability: Change to toothpaste Awareness: Different programmes

Promotion of Colgate products in rural market The rural penetration scheme started by Colgate is called Sampark as they specialize and target in rural market. As we know that very few people own television therefore mass media cannot be used therefore Sampark is way of promoting through door to door selling. In terms of distribution, the company launched a rural van seeding programme called Operation Red Storm covering 35,000 villages. ``Innovative promotional schemes have been implemented to tap the rural wholesale channel which is critical for indirect distribution in the smallest of villages. COLGATE SURAKSHA CHAKRA Convincing to switch to toothpaste / toothpowder Launched Colgate Herbal for rural market Promoting powder to counter Misri Low price as compared to other brands Colgate rural initiatives The Colgate Rural Initiative, targeted at rural areas with a population between thirty and a hundred thousand people, aimed at disseminating information and spreading the message of oral hygiene to children and their families in schools and rural centers. To this effect, Colgate conducted dental checkups in along with various activities at schools. The dental check up camps were supervised by teams of dentists and organizers who interacted with over 1 lakh people teaching them the benefits of oral hygiene. Children were targeted through infotainment activities that included interactive activities like essay writing and painting competitions centred around the Spread a Smile theme. Colgate, a company also tied up with ITC E-Choupal and Rotary to spread the message of dental care and oral hygiene to villages across India. The campaign successfully targeted over 156 villages in Uttar Pradesh in association with Project Disha and 36 villages in Maharashtra. In addition, dental camps were also conducted in the Dussera Mela at Kota. Dental checkups and school activities have succeeded in spreading the message of 'Zero Tooth Decay' to children and adults in around 433 villages and towns, bringing a brighter, bigger smile to rural India. This grass root initiative went a long way in helping Colgate touch base with consumers in the interiors.

Brand management Brand introduction- Colgate-Palmolive (India) Ltd is engaged in the personal care business, which includes oral care. The oral care products manufactured by the company include toothpastes, toothbrushes, toothpowder, whitening products and mouthwash. The personal care products manufactured by the company include body wash, liquid hand wash, shave preps, skin care and hair care. The household care product manufactured by the company includes surface care. The other products and treatments provided by the company include gingivitis treatment, sensitivity treatment, tooth whitening, fluoride therapy, mouth ulcer treatment and specialty cleaning. Colgate-Palmolive Company is the company's ultimate holding company. Colgate-Palmolive (India) Ltd was incorporated in the year 1937. Value of brand Brand equity drivers The brand elements This includes its name and the logo and its tagline no 1 brand recommended by dentists.
Colgate Total 12 The most advanced toothpaste for your superior oral teeth Fast relief from the pain of sensitive tooth Get maximum all round protection Fights germs for healthy gums & teeth Not just fresh, max fresh

Colgate Sensitive Colgate Dental Cream Colgate Active Salt Colgate Max Fresh

Marketing activities Product Colgate has a wide range of product line targeting different segements of consumer base. - Colgate total - Colgate strong teeth - Colgate active salt - Colgate sensitive - Colgate maxi fresh - Colgate herbal - Colgate cibaca

Price- CPs pricing strategy is to deliver products at a reasonable price to earn a small profit margin for the Company.
Colgate Dental cream Active salt Max Fresh Total Sensitive Kids Advanced Whitening Herbal Cibaca Fresh energy gel 20gm 5 Rs. --------------------40gm ----------26Rs. ------50gm 14Rs. 14Rs. 15Rs. --35Rs. ----14Rs. ----75gm --------35Rs. ----27Rs. ------32Rs. ----------------35Rs. --60Rs. ----30Rs. 18Rs. 55Rs. 65Rs. ----53Rs. ----55Rs. ----------55Rs. 28Rs. 66Rs. 80gm --100gm 30Rs. 30Rs. 150gm 45Rs. --200gm 56Rs. 56Rs.

Place- Types of stores at which product available for sale: General store Departmental store Kirana store Super store Super market Medical store

Promotion Engage 36,000 doctors to recommend their products. Positioned Colgate dental white crme and toothpowder towards rural rich segment.

Positioned CDC consistently in the germ fighting platform. It had the famous suraksha chakra "platform from where it had built its brand to this level. Colgate Dental Cream: ye hai hamari ; suraksha chakra For rural consuming class they are endorsing lower priced Cibaca toothpaste. Sales promotion: Participate in Colgate "Learn & Earn" Offer and you could earn Rs 10,000/- scholarship.

Super Saver Offer for 'All Around Decay Protection'. Buy 200g plus a 100g tube with a Colgate Extra Clean Toothbrush in a Family Value Pack for Rs. 82/-. Save Rs. 18/-. Advertisement Advertisement through T.V. media, Print media, online media. FM Radio for Urban population & MW and SW radio for rural population. Hoarding on National highways.