THE TOOTHPASTE INDUSTRY

Toothpaste Industry In India Many people in India still clean their teeth

with traditional products like neem twigs, salt, ash, tobacco or other herbal ingredients.

Average all India per capita consumption of toothpaste is a dismal 82gms.

The dentist to population ratio is a critically low 1:35000 in the country. This results in low oral hygiene consciousness and widespread dental diseases.

Less than 15% of the Indian toothpaste users brush twice a day.

Toothpaste Industry In India

Colgate and Hindustan Lever together account for over 85% of the organized toothpaste market.

In toothpowders, Colgate and Dabur are the leading players sharing between them 75% of the market.

Penetration of toothpowder in the urban areas has been declining @ 12%, as more and more consumers switch from powders to paste.

Micro Environment

Company

Suppliers

Publics

Marketing Channel Firms

(Intermediaries)Customer Markets

Competitors

Suppliers• Suppliers play a vital role in

satisfying customer needs and wants of the selected target market.

• Pay great attention to the brand name

• Keen on increasing their profit margins

• Supply according to the demand for the product.

Cont…. Suppliers Hindustan Phosphates Private Limited

Manufacturers, suppliers and exporters of various chemicals including calcium phosphates, mono calcium phosphate, tri calcium phosphate, sodium phosphates and tri sodium phosphate. Also offering magnesium phosphates, tri magnesium phosphate.

Phosphate India Private Limited Dealing in supply and manufacture of mono calcium

phosphate, di sodium phosphate, tri sodium phosphate, tri calcium phosphate, sodium acid pyro phosphate, tetra sodium phosphate, sodium hexa metal phosphate, mono ammonium phosphate and ammonium phosphate

Customer Market Less than 15% of the Indian toothpaste users brush

twice a day. The dentist to population ratio is a critically low

1:35000 in the country. This results in low oral hygiene consciousness and widespread dental diseases.

People are switching from tooth powders to toothpastes all across the country due to change in lifestyles.

62 % of people in India still clean their teeth with traditional products like neem twigs, salt, ash, tobacco or other herbal ingredients.

Cont… Customer Market• They buy more when there are discounts

and offers.• The brand name plays a very important

role for the consumers.• Prefer buying products with natural

ingredients like neem and salt.• A lot of awareness is spreading

regarding the need of oral hygiene today which will lead to a subsequent rise in sales.

Marketing Intermediaries Try to improve their sales through

discounts and offers. There has been a 20 % rise in the

number of distributors as the toothpaste industry in India is growing at a fast rate.

Dentists also play a big role in the promotion of oral care products.

Babool, Sensofoam, Cibaca, Neem, Vicco

14.5% of market share Has products like Red Toothpaste,

Lal Dant Manjan, Meswak, Babool, Dabur has a registered growth of

22.87%

Hindustan Lever Limited 23% of market share Known for Close Up which was

the first gel toothpaste in India Tried to tap the rural market by

launching Rs 10 packs.

Colgate Palmolive 52% of market share. Spread over Italy, Spain ,

Germany, Philippines, Malaysia, Singapore, Poland.

It has products like Duraphat, Colgate Total, Colgate, Cavity Protection, Colgate Simply White.

Colgate’s basic white toothpaste, priced at Rs79 for 300 gm., is the costliest option in the mass segment

According to 2011 surveys the global toothpaste market will expand even more by 2016.

Colgate Total is the most expensive product in the category priced at Rs59 for 150 gm.

Close-Up’s 150 gm. pack sells for Rs48, Babool and Pepsodent cost Rs48 for a 200

gm. pack.

2009 2010 2011 2012 2013

Rs. C

rore

(In

Th

ousa

nds)

3000

4000

4800

5600

8000

Forecast of the Toothpaste Industry

Macro Environmen

t

Social

Technological

PoliticalEconom

ic

Social The toothpaste market grew at a rate

of 7-8% between 1998-2002. But in 2004 the market grew by only 4%.

The market is said to increase steadily after 2010

Less than 15% of the Indian toothpaste users brush twice a day.

6 % of the population is sensitive/allergic to flouride.

Cont… Social 72 % of the India 's 1.1 billion

people live in rural areas.

Shortage of water in rural areas forces many people to use traditional methods to brush their teeth.

31 % of the Indian population are vegetarians.

Economic The country's per capita GDP (PPP)

was $ 4,060,392 (IMF. 4th) in 2010.

Indian Toothpaste Market to Reach Rs. 12000 Crores by 2016.

Presently the total toothpaste market is estimated to be around Rs. 4,800 Cr.

Technological Colgate Palmolive has come up with

varieties in its toothpastes like colgate sensitive and colgate active salt that are produced widely with the help of technology.

Advancements in technology has lead to an increase in the awareness of oral hygiene thus leading to a 45 % increase in sales.

Companies like Colgate & HUL have increased production by 40 %

Political The Indian government has implemented

policies that aim to achieve international competitiveness through:

Abolition of Commodity Transaction Tax introduced in The Finance Act, 2008 .

Reduction of excise duty for Petrol driven trucks from 20% to 8%.

4% cut in excise duty.

Thank You!!o Group 8

o Maitreyio Alano Shriyalo Shubhamo Sulaimano Sankalp