Date post: | 20-Aug-2015 |
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INTRODUCTION Earlier in India oral hygeine was the domain of local
home made ayurvedic powders or natural herbs. The history of toothpaste in India can be traced back in year 1975.Now the awareness regarding oral hygeine in Indian society has increased with the different brands of toothpaste.
Opportunities for Toothpaste Industry In india
In India, oral care market offers huge potential as penetration and per capita consumption of oral care products is very low. However, rising per capita income and increasing awareness is driving demand of oral care products. Consumers have started switching to value-added toothpastes like gels, mouth washes, and teeth whitening products. In rural areas, consumers are switching from toothpowders to toothpastes.
INDUSTRY OVERVIEWTotal market of 750 crores.Growth rate of 18.6% Per capita usage mere 85 gms per person.Major player – Colgate Palmolive and
Hindutan uniliver
GROWTH PROSPECTS
Increased at a compound growth rate of 6.6% between 2004-09Rising income level i.e increasing purchasing power of consumerLarge domestic market with population over a billionUntapped rural market
TOP TEN TOOTHPASTE BRANDS COLGATE (Coalgate Palmolive Ltd.) PEPSODENT (Hindustan unilever) CLOSE UP (Hindustan Unilever) SENSODYNE (GlaxoSmithKline) AQUAFRESH (GlaxoSmithKline) ANCHOR (Anchor health & beauty care Ltd.) DABUR RED (Dabur India) BABOOL (GlaxoSmithKline) MESWAK (GlaxoSmithKline) VICCO BAJRADANTI (Vicco Laboratories)
Industry OverviewGrowth RateToothpaste Sub SegmentMajor PlayersPer Capita ConsumptionPenetration Level
GROWTH RATEGrowth rate of 18.6%Registered a compound growth rate of 6.6%
between 2004-09 Changing spending pattern – with a increase
in purchasing power, there is a upward trend in the expenditure incurred upon FMCG.
Changing profile and mindset – People look for “MONEY FOR VALUE” rather than “VALUE FOR MONEY”. Switching from economy to premium brands
MAJOR PLAYERSColgate – Palmolive Ltd. (Market Share-
47.3%)
Hindustan Unilever Ltd (Market share- 30%)
Dabur India Ltd. (Market Share- 7.2%)
Other companies like Vicco, Patanjali, Promise etc.
Top 5 Brands - Market Share (2009) Colgate Dental Cream 34%Close-Up 14%Pepsodent Complete 10 11%Colgate Cibaca Top 5.7%Colgate Fresh Energy Gel 3%Other Brands 32.3%
Segments: Popular Segment Colgate , Pepsodent
DecliningLow Price Packs Cibaca, Babool GrowingNiche Products Ayurvedic and Sensitive toothpastes
StagnantFreshness Segment Colgate MaxFresh,Close Up,Anchor Gel
Growing
Price-based Segments Regular Segment: 100 gm: Rs 25-
30Low Price Segment: 100 gm: Rs
14-20
The Lower Price Point segment accounts for around 25% of total category volumes
Strengths->
Low operational costs.Presence of well known brands.Presence of established distribution
network.
S
Weakness->
Low export level.Low scope of investing in technology and
achieving economies of scale.Me-too products which illegally depicts the
label of the established brands.
W
Opportunities->Untapped rural market.Purchasing power increase.Low Dentist Population ratio 1:35000People being aware of dental health.Penetration level has increased with
cable TV, internet and FM radio stations.
O
QUESTIONNAIREQ1 Which particular toothpaste brand is generally
demanded by customers?
Q2 Which of these brands of toothpaste have customers asked in the past or are currently demanding?
CoalgatePepsodentDabur RedClose Up
CoalgatePepsodentDabur RedClose Up
Q3 Which toothpaste brands have promotional schemes and what are the prices and discount offers?
Coalgate PepsodentDabur Red
Close Up Babool SibakaMiswaak ViccoTermeric
Q4 Are customers brand conscious when it comes to buying a toothpaste?
YesNo
Q5 Do you tell your customers about a certain brand to purchase?
YesNoQ6 Which of the following brands do you always
prefer to customers?CoalgatePepsodentDabur RedClose UpBaboolSibaka
MiswaakViccoTermericQ7 What are the other variants these products
have?Coalgate PepsodentDabur RedClose Up BaboolSibaka Miswaak ViccoTermeric