COLGATE HERBALBY- ANKITA GOSWAMI MAYANK SRIVASTAVA

NITIN SHARMANIKHIL KUMAR

SRIJANI CHATTERJI

INTRODUCTION

• The brand name ‘Colgate’ is synonymous with toothpaste. This world renowned brand is sold in more than 200 countries.

• In India , the company has successfully replicated the strong brand image & awareness in the mind of consumer.

• Colgate India earns around 93% of its revenues from the oral care segment.

BRIEF ON RURAL MARKETING

• Rural Marketing is defined as any marketing activity in which the one dominant participant is from a rural area. This implies that rural marketing consists of marketing of inputs (products or services) to the rural as well as marketing of outputs from the rural markets to other geographical areas.

WHY RURAL MARKETING IS IMPORTANT

• The rural market is booming in terms of opportunities which they give to the corporate sector. In total consumption of Fast Moving Consumer Goods, Rural India has 55% share in it. From the year 1993 to 1998, Rural India had a growth of near about 14% per annum.

• In India, the number of supermarkets (42,000) has exceeded the number of retail stores (35000) in the United States.

• In the year 2001-2002, LIC sold 55% of its policies in the rural India. • 50% of BSNL mobile phone connections are in rural India. • The (KCC) Kisan Credit Cars(24 Million) issued in rural India has certainly

exceeded the Number of Debit plus credit cards (17.7 Million) issued in Urban areas.

• The number of higher and middle income families (Earning Rs. 70,000+ annually) in rural India (21.7 Million) and Urban India (24.2 Million)are almost same.

SWOTSTRENGTHDistinctive competenceStrong financial resourcesCost of price leaderStrong brand nameInnovative skillsSkilled human resourcesLoyal customersSuperior technological know how

WEAKNESSNo clear directionWeak market-shareWeak distribution networkWeak market silagePoor marketing competencyLack of distinct competencyAbsolute plant and facilitiesPoor track record of strategic implementation

OPPORTUNITIESGrowth in new marketNew product developmentQuality improvementExpand product lineVertical integrationEmerging customer needsEconomic advantageRelated product diversificationAdverse demographic change

THREATSEntry of low costCompetitorsSlow market growthSubstitute productsChange in technologyAdverse legislation

MARKETING APPROCAHES• Communication and change of perception• Proper communication in local languages• Target changing perception• Understanding social and cultural values• Fulfilling customer’s needs• Product promotion through celebrities• Indian association• Promotion through Indian sports teams• Communicating about Indians• Products for rural locations• Using Indian names• Indian brands• Media communication

PRODUCT MIX• Product variety – COLGATE HERBAL is the tooth paste which we are going to sell in the

rural market by applying different research methodologies and then applied different rural marketing technique to sell this product in the near future The brand was launched in 2001 and is essentially targeted at traditional consumers who seek natural ingredients (such as in semi-urban and rural towns)

• Quality – Being a popular segment product and an offering by quality parameters are thoroughly tested to ensure consumer satisfaction.

• Features – COLGATE HERBAL White promises a ‘unique formula’ including a special blend of eucalyptus, calcium and minerals and ;lemon extracts.

• Brand Name – The use of Herbal in the brand name is self-explanatory. NEEM Herbal has been highlighted to stress their brand proposition of ensuring ‘pearly white teeth’.

• Packaging – The green-coloured packaging enhances the ‘herbalness’ of the product, while the pneumonics of mint leaves, lemon and eucalyptus supplement the ingredients which lend uniqueness to the product. The colours red and the word ‘new’ in blue are the two colours researched to be the most eye-catching on the shop shelf and aid the choice of the product during the purchase decision process.

• Sizes – It is available in three sizes as most others in the segment - 50g, 100g and 200g..

PRICING

• List Price – The list price of the product is Rs. 12.50 for the 50g pack, Rs. For the 100g pack, and Rs. For the 200g pack.

• Discounts/Allowances – No promotional discounts are allowed for.

• Payment period/Credit terms – Being an off-the-shelf FMCG, in line with the category, no credit is allowed by the company (though the store allows credit on purchase of all items).

PROMOTION

• Sales Promotion• Advertising• Sales Force • Public Relations • Direct Marketing

PLACE• Channels – The products is sold in retail outlets like Karina stores,

supermarkets, medical shops, co-operative stores etc. It is distributed through the supply chain of company distributor to wholesaler to retailer to final consumers.

• Coverage – The product is available in the all-India market, including semi-urban and rural markets which is their primary focus.

• Locations – The product is placed at just below eye-level at the store surveyed among other brand clutter, unlike at most other supermarkets, where product placement at eye level and near the payment counter is generally preferred for such relatively low-involvement products, especially in the case of small packs which might be impulse purchases on a trial basis.

• Inventory - The retailer stock varied by size. The store surveyed contained 15 items as turnover of the product is not very high.

RECOMMDATION

• Colgate should use colorful paste to create uniqueness.

• Colgate should emphasize on digital branding i.e. online purchase.

• They should also increase their CSR activities because they have very good image in market.

THANK YOU