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COLGATE vs PEPSODENT

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COLGATE v/s PEPSODENT TY.BMS (SEMESTER VI) 1 | Page oothpaste industry has grown immensely in the Indian scenario. There is a lot of competition in the industry mainly between two major players Colgate and HLL .The companies are coming up with new schemes as well as products to lure the customers. The usage of toothpaste has grown because of the lifestyle and the way the individuals are living i.e. more awareness about health. The earliest known reference to toothpaste is in a manuscript from Egypt in the 4th century A.D., which prescribes a mixture of powdered salt, pepper, mint leaves, and iris flowers. The Romans used toothpaste formulations based on human urine. Since urine contains ammonia, it was probably effective in whitening teeth. An 18th century American toothpaste recipe containing burnt bread has been found. Another formula around this time called for dragon's blood, cinnamon, and burnt alum. However, toothpastes or powders did not come into general use until the 19th century. In the early 1800s, the toothbrush was usually used only with water, but tooth powders soon gained popularity. Most were homemade, with chalk, pulverized brick, and salt being common ingredients. An 1866 Home Encyclopedia recommended pulverized charcoal, and cautioned that many patented tooth powders then commercially marketed did more harm than good. T
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Page 1: COLGATE vs PEPSODENT

COLGATE v/s PEPSODENT TY.BMS (SEMESTER VI)

1 | P a g e

oothpaste industry has grown immensely in the Indian

scenario. There is a lot of competition in the industry mainly

between two major players Colgate and HLL .The companies

are coming up with new schemes as well as products to lure

the customers. The usage of toothpaste has grown because of

the lifestyle and the way the individuals are living i.e. more

awareness about health.

The earliest known reference to toothpaste is in a manuscript from

Egypt in the 4th century A.D., which prescribes a mixture of powdered salt,

pepper, mint leaves, and iris flowers.

The Romans used toothpaste

formulations based on human urine.

Since urine contains ammonia, it was

probably effective in whitening teeth.

An 18th century American toothpaste recipe containing burnt bread has been

found. Another formula around this time called for dragon's blood,

cinnamon, and burnt alum.

However, toothpastes or powders did not come into general use until

the 19th century. In the early 1800s, the toothbrush was usually used only

with water, but tooth powders soon gained popularity. Most were homemade,

with chalk, pulverized brick, and salt being common ingredients. An 1866

Home Encyclopedia recommended pulverized charcoal, and cautioned that

many patented tooth powders then commercially marketed did more harm

than good.

T

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By 1900, a paste made of hydrogen peroxide and baking soda was

recommended. Pre-mixed toothpastes were first marketed in the 19th century,

but did not surpass the popularity of tooth-powder until World War I. In

New York City in 1896, Colgate & Company manufactured toothpaste in the

first collapsible tube, similar to that recently introduced for artists' paints.

Fluoride started to be added to toothpastes in the 1950s. Countries

limit and suggest different amounts acceptable for health. Much of Africa has

a slightly higher percent than the US.

Toothpaste is most commonly sold in flexible tubes, though harder containers

are available. The hard containers stand straight up, availing more of the

toothpaste and saving shelf space.

Many Multinational Companies entered in the business of Toothpaste

world but there are two major toothpaste brand that are famous than any

other product in this world which we are going to discuss below.

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olgate-Palmolive is a $13.8 billion global company serving

people in more than 200 countries and territories with

consumer products that make lives healthier and more

enjoyable. Colgate focuses on strong global brands in its core businesses —

Oral Care, Personal Care, Home Care and Pet Nutrition.

Colgate is delivering strong global growth by following a tightly defined

strategy to increase market leadership positions for key products, such as

toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants,

dishwashing detergents, household cleaners, fabric conditioners and specialty

pet food.

Colgate – Palmolive Company which is an America based multinational

corporation focused on the production, distribution and provision of

household, health care and personal products, such as soaps, detergents, and

oral hygiene products (including toothpaste and toothbrushes). The

company's corporate offices are on Park Avenue in New York City.

William Colgate, a soap and candle maker, opened up a, soap and

candle factory on Dutch Street in New York City under the name of "William

Colgate & Company". In the 1840s, the firm began selling individual cakes of

soap in uniform weights. In 1857, William Colgate died and the company was

reorganized as "Colgate & Company" under the management of Samuel

Colgate, his son. In 1872, Colgate introduced Cashmere Bouquet, a perfumed

soap

C

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epsodent is a brand of toothpaste with a wintergreen flavor. It

was formerly owned by Unilever (but, since 2003, by Church

and Dwight in USA,).

Pepsodent was a very popular brand before the mid '50s, but its makers

were slow to add fluoride to its formula to counter the rise of other highly

promoted brands such as Crest and Gleem toothpaste by Procter & Gamble,

and Colgate's eponymous product; sales of Pepsodent plummeted. Today

Pepsodent is a “value brand” marketed primarily in discount stores and retails

for roughly half the price of similarly-sized tubes of Crest or of Colgate.

Pepsodent is still sold as a Unilever property in India, Indonesia, Chile,

Finland, and several other countries.

Pepsodent advertisements spotlighted the toothpaste's distinguishing

features. It had a minty flavor that was derived from sassafras, an ingredient

found in some varieties of tea and such soft drinks as root beer and

sarsaparilla. Advertisements also pointed out the presence of irium (otherwise

known as sodium lauryl sulfate) as a mechanism for fighting tooth decay, and

to an ingredient known as IMP for preventing tooth decay.

P

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Complete + Gum Care

Complete 12 Pepsodent

Herbal Pepsodent

Pepsodent Milk Teeth

Orange

Pepsodent Milk Teeth

Strawberry

Pepsodent Sensitive

Pepsodent Whitening

Pepsodent Cavity Prevention

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COLGATE

olgate-Palmolive informs its customers about its new

products as well as the product that is being used by the

customers. Colgate-Palmolive persuades and convinces its

new as well as old customers to purchase its new product. Adopting a good

promotional strategy Colgate has succeeded to retain its customers and image.

By this Colgate strongly focuses on different promotional strategies i.e.

mass selling, advertising, publicity and sale promotion etc. Colgate-Palmolive

has proved itself as a keen observer of the market and the culture all around

itself. Colgate has done in the past and still doing at the moment. It is

producing & introducing the products especially for the kids.

Colgate is very popular among young kids just because of its perfect

promotion. Colgate- Palmolive is promoting kids products by labeling the

cartoon Characters like Looney tunes, Barbie, Barney and many more which

are being loved by the children. It also educating Children by b slogan

“Stronger say bhe Strong, Mera Colgate”

C

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Colgate-Palmolive has list of products for the children like:

Oral health for children.

Toothpastes.

Toothbrushes.

Great Flavor.

Games.

Track for Brushing.

Through the strong promotion by the media i.e. TV, radio, newspaper

etc. It is rightly successful to capture the mass market. So, we can say that the

Colgate is the product of mass selling. Colgate is not only using the

traditional advertising media for its Promotion. However it is also using the b

electronic advertising media i.e. internet etc. Because a large number of people

are using the internet. So, Colgate also advertises on the different websites

with its required information for its customers and has a specific website to

promote each Colgate product.

Colgate also promotes its product by sales Promotion to attract its customers

to use the product. Sometimes, Colgate introduces the product at low prices

according to the quantity and to facilitate its customer. Which effect

positively on the Colgate’s end customer or consumer. Colgate’s positive

Promotion effect on the product as well as company. Which helps a lot to

establish the product image as well as company image in the minds of

customers. By using the idea of AIDA and IMC, Colgate’s promotional

activity not only became strong but also helps to convincing the customers to

adopt the product for using

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PEPSODENT

epsodent packs included a Germ Indicator in February-May

2002, which allowed consumers to see the efficacy in fighting

germs for themselves. As a follow-up, in October 2002,

Pepsodent offered Dental Insurance to all its consumers to demonstrate the

confidence the company has in the technical superiority of the product.

Pepsodent connects directly with kids and their parents. Pepsodent has

always worked in the direction of an overall awareness of dental health. The

relaunch campaign in October 2003 widened the context to "sweet and sticky"

food and leveraged the truth that children do not rinse their mouths every

time they eat, demonstrating that this makes their teeth vulnerable to germ

attack.

Pepsodent's most recent campaign aims at educating consumers on the

need for germ protection through the night. Pepsodent also includes a range

of toothbrushes.

Pepsodent, Unilever’s leading oral care brand, recently announced its

collaboration with the Indian Dental Association (IDA) in conjunction with

World Dental Federation (FDI) to help improve the oral health and hygiene

standards in India.

This project is part of a wider global collaboration between Pepsodent’s

parent company, Unilever and FDI, the international organisation which

represents nearly one million dentists globally.

This unique partnership aims to increase oral health education and

promotion in countries in both the developed and developing world. The

P

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Pepsodent-FDI collaboration, established in 2005, now operates 42 projects

in 38 countries.

The new partnership in India will build on existing programmes that

Pepsodent and the IDA have been running in schools targeting behaviour

change amongst children. Going forward, the programme will focus on

increasing awareness of good oral habits and concentrate on the importance of

twice daily brushing, and particularly night brushing amongst children. The

Oral Health initiative will feature many practical elements including dental

check-ups, live demonstrations with audio-visual aids and the distribution of

oral health educational materials. It will also involve schoolteachers and rural

health workers working to educate children about the benefits of better oral

health and hygiene.

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COLGATE

he CPIL is the market leader in the Indian oral care market

with a market share of 51 per cent in the toothpaste segment,

48 per cent in toothpowder segment and 30 per cent in the

toothbrush segment.

The Company has reported Net Sales for nine months ended at Rs.

1239.4 crores, an increase of 15% over the same period of the previous year.

Net profit for nine months period stood at Rs. 213.2 crores, an increase of

21% over net profit recorded in same period of the previous year.

DRIVING GROWTH

The growth of 14% achieved over the same quarter of the previous year

has been led by a steady 14% volume growth in the toothpaste category, with

the Company maintaining its leadership position at 49.6% market share.

Major brands such as “Colgate Dental Cream”, “Active Salt”, and “Cibaca”

continue to contribute to this consistent growth.

The Toothbrush category market share saw an increase of 2.8% taking

Colgate’s share to 38% during Jan08–Dec08. In the Toothpowder category,

the Company’s market share has also increased by 2.9% to 48.9% .

The Company continues its thrust in spreading oral health awareness

and good oral hygiene practices through various programs conducted across

the country, mainly targeting consumption building in rural areas.

T

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The Company observed October 2008 as “Oral Health Month” (OHM)

in association with the Indian Dental Association. OHM covers a wide

spectrum of activities designed to spread oral health awareness and good oral

hygiene practices, its mission being “Zero Tooth Decay”. The program

involved 10,000 dentists spread across 200 towns. Colgate’s unique “Little

Dentist” program covered 1.5 lakh children from 190 schools across 7 cities.

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PEPSODENT

epsodent, Hindustan Lever Ltd s leading oral care brand,

announced the launch of Pepsodent Dental Insurance, a first

of its kind initiative in the oral care category in India.

Undertaken through a partnership with the New India Assurance, India s

largest General Insurance Company, Pepsodent now offers its consumers free

dental insurance of Rs. 1000/- on purchase of any pack of Pepsodent.

Under this initiative Pepsodent offers its consumers insurance cover

against expenses for the extraction of a permanent tooth or teeth due to severe

Caries and Periodontitis including cost of medication in relation there to.

Caries and Periodontitis are two of the most widespread dental ailments in

India.

Announcing the launch of Pepsodent Dental Insurance Pradeep

Banerjee, Category Head - Oral Care, HLL, said, "Pepsodent Dental

Insurance is a unique concept and first of its kind in the Oral Care category in

India. The initiative not only strengthens Pepsodent s proposition of being a

germ-protector but also displays our commitment towards improving oral

hygiene for our consumers."

Elaborating further on the concept of Dental Insurance, Pradeep said

"Pepsodent Dental Insurance is a unique concept in this category and will

further strengthen the equity of Pepsodent in the minds of the consumers."

Insurance cover under Pepsodent Dental Insurance will be provided for

one year, which comes into effect after a period of six months from the date of

issue of the Pepsodent Dental Insurance Certificate.

P

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Pepsodent Dental Insurance forms will be soon available in all Superior

Pepsodent packs of 100 and 200 gms as well as select retail outlets. The

company also plans to make the forms available through advertising in the

print media starting November.

Pepsodent has steadily gained market share from 16.4 % last year to 17.3 %

in Aug 02. HLL Oral Care, today commands an overall market share of 34.9

% in the toothpaste market with its range of toothpastes under the Close Up

and Pepsodent brands. With a strong focus on promoting oral care and

hygiene amongst consumers, HLL Oral Care under its Pepsodent brand

conducts various oral care and hygiene programs across the country including

dental check-up programs in community.

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COLGATE The packaging and labels can be used by marketers to encourage

potential buyers to purchase the product. Package design has been an

important and constantly evolving phenomenon for dozens of years. Colgate

uses attractive packaging which visible it from competitor’s brand. They have

used following colours:

* White:

Classic color, Accurate background, Sophistication & agility of company,

Natural colour

* Red:

Strength, energy, love, excitement, leadership, power, Active, exciting,

good

luck, Young Generation.

* Blue:

Research process, Calmness and peace, Innovation, Freshness

* Yellow:

Sunlight, joy, happiness, wealth (gold), hope .

* Green:

Nature, spring, fertility, youth, environment, wealth, money (US), good

luck, vigor, generosity, go, grass , Green also symbolizes go because of its use

in traffic signal

Colgate also focuses mainly on the following factors at the time of packaging:

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* Reducing the Environmental Impact of Packaging:

Colgate is always looking for ways to minimize the impact of its

packaging on the environment, and has been an industry leader in the

continuous use of a type of post-consumer recycled plastic known as PET.

* Global sustainability packaging strategy focuses on the 4 Rs:

Reduce the weight of the packaging where feasible

Remove secondary and tertiary packaging where possible

Recycle — increase the use of recycled materials and convert to more

recycling-friendly materials

Reuse/Refill — design packages to be reusable and focus on refill

package development

Guidelines have been developed to help the packaging designers and

engineers to create more sustainable packaging starting from the concept

stage. packaging teams publish monthly internal Packaging Sustainability

Newsletters to share best practices, news and market trends from around the

world

* Reducing Material in Toothpaste Tubes

Colgate continues its effort to reduce the amount of material in its

toothpaste tubes while maintaining the required dispensing performance,

toothpaste quality and packaging integrity. From 2000 to 2008, the packaging

reductions resulted in over 30% reduction in consumption of energy and

natural resources.

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Colgate's progress in this area was recognized as a "Sustainability Success

Story" by a major retail customer. For example, in Latin America:

The tube weight reduction resulted in 1,150 metric tons of savings in

2006 and 2007

The cap weights were reduced in 2008, resulting in an annual savings of

400 metric tons of plastic

At Colgate, sustainability is a critical criterion for any new package design and

development. Through our core value of continuous improvement, we

constantly search for ways to minimize the environmental impact of product

packaging.

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PEPSODENT

* Our approach:

Their approach towards responsible packaging seeks to take into

account environmental, social and economic considerations. In 2007 the

company created a Sustainable Packaging Steering Team to define a strategy.

This team is building on the work already carried out over the past few years

by the Unilever Packaging Group.

Achieving truly sustainable packaging is a complex challenge. Some

energy is always required to make packaging and some waste is inevitable even

with highly effective reuse and recycling schemes.

The approach is based on three elements:

Consideration of the whole product, not just packaging in isolation

Assessment via our new vitality metric, which covers the waste

generated – taking into account all the different kinds of packaging a

product requires. It also takes into account an estimate of the recycling,

reuse and recovery rates of the materials as used in a particular region

Use of leading-edge design techniques and choice of materials to

minimise impacts.

* Guiding principles

Underlying this strategy are five guiding principles that they seek to

apply: remove, reduce, reuse, renew and recycle. Sustainable Packaging

Steering Team implements this approach across Unilever.

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More on the five guiding principles: (4R)

Remove: to eliminate, where possible, unnecessary layers of packaging

such as outer cartons and shrink-wrap film.

Reduce: to reduce the material we use in our packages and ensure they

are the optimal size and weight for their contents.

Reuse: to reuse packaging from the materials we receive at our factories.

Renew: to maximise the proportion of packaging from recycled and

renewable resources and to investigate the technical feasibility of

biodegradable and compostable materials

Recycle: to increase the use of recyclable and single-material

components in packaging for easy sorting and recycling at the end of its

use.

* Enhancing design

Innovative packaging design can minimise the environmental impact of

packaging itself. But it can also enhance a product's lifecycle impacts. For

example, effective packaging can reduce product leakage and consequent

waste during transportation.

* Sustainable paper sourcing

A significant proportion of packaging relies on paper. They estimate

that most of the paper purchased for European business comes either from

recycled material or sustainably managed forests. While this is an encouraging

picture for Europe, the situation in other regions can be very different as

sustainable forestry practices differ greatly. The company is working with the

Rainforest Alliance to develop a sustainable sourcing policy for paper.

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* Litter in the developing world

A particular concern is the volume of sachets we use to package single-

use products, especially in developing and emerging markets. These may end

up as litter where there are no appropriate disposal facilities.

The approach is to:

implement design improvements to create sachets that use less material

or material with less environmental impact

support litter awareness programmes

work with others to explore economic models which create incentives

for collection and reuse of our packaging.

Working with others

Effective solutions require a partnership approach. Unilever is a

founding member of the Sustainable Packaging Coalition, which has over 160

members, including packaging producers, users and retailers. We are also

members of EUROPEN (the European Organisation for Packaging and the

Environment).

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he toothpaste industry is going to be more competitive in the

near future. The profit margin is going down over the year

and going to be continuing for the future also.

So the main mantra for the companies to be successful is to satisfy the

consumers and develop brand image and brand loyalty amongst them. So it

has become very necessary for the consumers to understand the Indian

consumers very well.

So in the future the companies who come up with new products at

competitive prices and with good quality are going to the successful one.

Promotional activities are also going to play an important role that should to

be for both retailers and consumers.

So we are going to see a market which is going to heat up in the near

future where mainly two major players Colgate and HLL will fight the war.

T


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