Brand Extension Analysis – Colgate Plax

SUBMITTED BYJITENDRA BHARTI

PGP30376

COLGATE – World of Care

Colgate-Palmolive

Oral Care

Toothpaste, Toothbrush,

Toothpowder, Whitening Product,

mouthwash

Personal Care

Body wash, Hand wash, skin care, hair

care, men’s grooming

Household Care

Surface care

Colgate-Palmolive India is 51%-owned subsidiary of US Colgate-Palmolive Co. Leading player in oral hygiene in India since 1950s

Categories

Net Profit

2011 INR 4 billion

2012INR 4.5 billion

2013INR 5 billion

New product launches and increase in penetration in rural India aids value and volume growth

Market share

Product Type Value Share Rank

Beauty & personal Care 6.8% 2

Bath & Shower Negligible 22

Men’s grooming 0.8% 17

Oral care 46.1% 1

COLGATE - Oral Care

Oral care in India

Toothpaste is the biggest

category with 80% share

Increase awareness by educating consumers about good dental hygiene via TV advertisements as well as urging them to brush twice a day

Mouthwashes/ Dental rinses

has the highest value

growth of 44% in 2013

Oral Care is expected to grow at a

CAGR of 9% to reach 131

billion by 2018

Increasing awareness of oral care products, increasing penetration in rural market and expanding product portfolio of leading companies

Market shares in Oral Care

2010 2011 2012 20130

5

10

15

20

25

30

35

40

45

5045.3 44.7 44.6

46.1

22.2 21.6 21.319.7

11.7 11.9 11.3 10.8

4.3 4.5 4.6 4.7

Colgate HUL Dabur Gillete

Mouthwash

Mouthwash Category

2010 2011 2012 20130

10

20

30

40

50

60

70

8076

72.6 70.866.4

12.116.1 17.3 17.6

7.6 6.7 6 5.24.3 4.6 610.8

% share of different companies

Listerine Colgate Plax AM PM Mouthwash Others

Comparison of Mouthwash & Oral care industry

2008 2009 2010 2011 2012 20130

10000

20000

30000

40000

50000

60000

70000

80000

90000

133.8 409.4 696.9 1079.9 1550.4 2231.1

46226.850117.9

55414.5

63296.1

72374.6

83449.8

Comparative growth of mouthwash against oral care(in INR million)

Mouthwashes/Dental rinses Oral Care

Mouthwashes/dental rinses witnessed the highest value growth of 44% in 2013 against 15.3% for overall oral care industry as urban consumers used it for better protection, although it is still nascent in India

Mouthwash/dental rinses grew at a CAGR of 75.6% between 2008-13 as against 12.5% for total oral care

HUL launched Pepsodent Mouthwash in 2012 with the value proposition of “First Non-Alcoholic herbal mouthwash”

Mouthwashes/dental rinses is expected to grow at a value CAGR of 29% during 2013-2018

Product

Available in 7 variants in India– Fresh Tea, Complete Care, Sensitive, Freshmint, Peppermint, Active salt, Visible white

Remaining 2 variant - Ice, Fruity Fresh not available in India

Packaged in multiple sizes – 50 ml, 60 ml, 100 ml, 250 ml, 500 ml

Different colours to differentiate between variants

Price

Pricing is based on competitor’s price

Pricing varies with variants and packaging

Product size Price

50 ml Rs. 30

60 ml Rs. 40

100 ml Rs. 55

250 ml Rs. 115

500 ml Rs. 190

Place

Widely available in Urban areas from malls to retailers

Placed along with competitors product like Listerine or along with other oral products from Colgate

Greater thrust on increasing product penetration to rural areas

Promotion

Quick and easy method for a cleaner, fresher and healthier mouth

Educate customers to use it twice a day after brush

Help remove 99.9% germs for 12 hours

Channels – TV, newspaper, Hoardings, social media

Segmentation

Demographic Target busy adults

People whose income fall in middle and upper class as it is a supplementary product which can be used after brushing

Geographic Mainly for Urban and semi-urban population

Behavioural

Adults who want cleaner, fresher and healthier mouth

Target adults who want white teeth, have sensitive gums

Targeting

Adults in the age group of 18-60

Working people who frequently interact with others and have scarcity of time

Adults who have teeth problems like cavities, sensitive gums, plaque

Positioning

Colgate Plax positioned itself based on its functionalities as a mouthwash which provide fresher breath and germ protection Long lasting fresh breath

Removes up to 99.9% germs

Alcohol free formulation

No burning sensation

The mouthwash that gives 12-hour germ protection

Competitors

Points of Parity

Prices are similar to its competitors

SKU’s are similar in packaging and size

Positions similarly as other competitors to remove bad odour

Contains fluoride to fight oral problems

Points of Difference

More variants are present compared to other competitors

More trusted and popular brand among users

Alcohol free formulation

References

http://www.colgate.co.in/app/Colgate/IN/OralCare/Mouthwash/PlaxClassic/Name.cvsp

Financial Report-http://www.colgate.co.in/Colgate/IN/Corp_v2/Investor/FinancialReports/annual-report-2014-15.pdf

GMID database - http://www.portal.euromonitor.com/portal/analysis/tab

http://www.colgate.co.in/app/Colgate/IN/OralCare/Mouthwash/ColgatePlax/benefits-of-colgate-plax.cvsp

http://www.colgate.co.in/app/Colgate/IN/OralCare/Mouthwash/PlaxClassic/ProductInfo.cvsp

http://www.colgateprofessional.co.in/products/Colgate-Plax-Mouthwash/details

http://www.colgate.co.in/app/Colgate/IN/OralCare/HomePage.cvsp

http://www.dreamstime.com

http://www.studylecturenotes.com/mba-marketing/marketing-segmentation-targeting-positioning-or-stp-process

http://www.zopnow.com/mouthwash-c.php