Colgate Palmolive

Brand in Trouble

Contents
Executive Summary........................................................................... Error! Bookmark not defined. Colgate Palmolive India .................................................................................................................. 3 1. PART A ....................................................................................................................................... 5

The Problem ...................................................................................................................................... 5 2. Part B ........................................................................................................................................ 5 2.1 2.2 Introduction ....................................................................................................................... 5 Marketing Communication Objectives ................................................................................ 6 Introduction ................................................................................................................ 6

2.2.1

2.2.2 Communication Objectives- Product Wise ........................................................................ 6 2.2.3 2.3 Recommendations ...................................................................................................... 8

Message Decision ............................................................................................................... 9 Message Strategy........................................................................................................... 9 Creative Strategy ........................................................................................................ 9 Message Source ........................................................................................................ 10

2.3.1 2.3.2 2.3.3

2.2.4 Analysis and Recommendation ........................................................................................ 10 2.4 Media Decision ...................................................................................................................... 12 2.4.1 Media Selection Factors ...................................................................................................... 12 2.4.2 Major Media Types ............................................................................................................. 13 Recommendation ........................................................................................................................ 14 References....................................................................................................................................... 14

Executive Summary
Colgate Palmolive is a well-reputed company with a large series of its well-known products having different varieties in terms of flavour. Colgate Palmolive is the world leader in oral care industry. They cater the need of different segments by offering innovative products. The main objectives of this study is to analyse the existing channel strategies, physical distribution, sales force design and marketing strategies of Colgate Palmolive in India and recommend the improvement if any on these areas. Furthermore the communication strategies are discussed in detail. The communication strategy includes the study of the message strategy, creative strategy, the positioning of various brands of Colgate as well as the use of the various communication channels.

Colgate Palmolive India

   

Headquarter in Mumbai with an annual Turnover around 1100 crs Market leaders in Oral care Colgate consistently won Indias no 1 brand of the year award from last three years Colgate Ranked among Best Employer in India

In the oral care product segment following Colgate Palmolive are the toothpaste available in Indian market :
3

1. Colgate Dental Cream 2. Colgate Total 12 3. Colgate Sensitive 4. Colgate Sensitive-Pro-Relief 5. Colgate Max Fresh 6. Colgate Kids Tooth Paste 7. Colgate Fresh Energy Gel 8. Colgate Herbal 9. Colgate Cibaca Family Protection 10. Colgate Active Salt
11. Colgate Maxwhite

1. PART A The Problem

Colgate, the flagship brand of Colgate-Palmolive (India) Ltd, is losing ground in the toothpaste market with its market share falling marginally in terms of volumes in an expanding market. However, it appears to have retained its market share in terms of value.

According to market research firm AC Nielsen, the market share of Colgate (including its variants) has remained stagnant at 41.2% over two years, 2006-07 and 2007-08, even as the market has grown 14% a year to Rs2,263 crore in the same period. In terms of volumes, its share has declined from 38% in 2005-06 to 37% in 2006-07 and 36.9% in 2007-08. The market grew 10% in terms of volumes in 2007-08.

2. Part B

2.1 Introduction

The Indian advertising market was Rs. 236 billion in 2010 and is expected to grow to Rs. 277 billion by 2011, a growth rate of 17.4%. Currently advertising through television represents the largest segment of the Indian advertising market with a 44.5% share of the overall market, followed by print advertising with a 42.4% share of the overall market. Outdoor advertising comprises about 5.9% of the market, radio advertising about 3.8% and internet about 3.0.

2.2

Marketing Communication Objectives

2.2.1

Introduction

PLC of colgate toothpaste india and more on problem from internet- nagesh Brand value chain mrinal nidhi pg 318 Subdimensions of brand building blocks prerna rashmi makkar- pg 61 Colgate has a variety of products in its product line- Colgate dental cream, Colgate Activ Salt, Colgate Cibaca, Colgate Total, Colgate Sensitive Pro-relief. Each product has its own communication objectives, and these are widely discussed in detail. Colgate has always positioned themselves as the most recommended toothpaste by the dentists and this is always seen in all their communications. The various marketing communication objectives for a product are as follows: 1) Category Need: To establish a product or service category to remove or satisfy a perceived difference between current motivational state and a desired emotional state. 2) Brand Awareness: Ability to identify the brand within the category in sufficient detail to make a purchase. 3) Brand Attitude: To evaluate the brand with respect to its perceived ability to meet a currently relevant need. 4) Brand Purchase Intention: Self instructions to purchase the brand or to purchaserelated action
2.2.2 Communication Objectives- Product Wise

2.2.2.1 Colgate Sensitive Pro Relief :

The communication strategy objective is category need and brand attitude. With Sensitive Pro Relief, Colgate has tried to create a new product category in the premium sensitive teeth segment. The sensitive segment is a niche category, and its major competitor is Glaxo Smithklines Sensodyne. According to media reports, around 17% of individuals in India suffer the condition of sensitive teeth. Sensitive teeth are a condition where the individual suffers sharp pain while consuming anything that is hot or cold. Since the awareness about remedy for this condition is low, most consumers avoid consuming foods that causes this pain. Consumers often fear going to dentist because of perceived painful dental measures. Instead they choose to control their intake of chilled food and not address their remedy. This is perhaps the most important challenge that Sensitive Pro-Relief faces in cracking the Indian market. Sensitive through its campaign using chilled-tests has able to create a category need i.e sensitive teeth. Moreover the communication also shows how the brand is able to provide relief to the people who feel pain in consuming anything cold. This is how they are able to fulfil their objective of changing brand attitude
2.2.2.2 Colgate Dental Cream

Colgate Dental Cream has been the flagship brand of Colgate. It has been able to maintain its positioning in the germ-fighting segment. It had the famous Suraksha Chakra platform from where it built the brand to this level. Their communication strategies have always been the focus on brand attitude and brand awareness where they tried to showcase their germ-fighting capabilities through its advertisements. CDC has always faced competition from Pepsodent of HUL and many local brands.
2.2.2.3 Colgate Total

Colgate Total showcases the toothpaste as 12-hour protection that gives protection from 12 problems like cavities, plaque etc. The objective is again based on brand attitude.
2.2.2.4 Colgate Activ Salt

Colgate Activ Salt tries to focus on its gum strengthening quality, and the communication is based on creating brand awareness and brand attitude . The advertisement shows how a person in a flight was asked by a correspondent about whether his toothpaste has salt or not. The strategy is to create awareness among the consumer about the benefits of the brand by showing the advantages of salt in toothpaste.
2.2.3 Recommendations

The advertisements should also focus on Brand Purchase Intention. They should drive customers for repeated purchases, and thus help in expanding the market by increase in volume. It can be made through showing a certain quantity of toothpaste needed to have a good teeth cleaning, and thus help in expanding the volume.
8

In the sensitive segment, the focus should now shift to brand awareness, as the first phase of communications has been able to create the need for the category. Now the consumers must be able to recall the brand i.e. they must identify the brand outside the store and not just inside.

2.3 Message Decision

2.3.1

Message Strategy

In determining the message strategy, the company uses the themes and ideas to tie into their brand positioning and create points-of-difference (PODs). Using John Maloneys four rewards from a product- rational, sensory, ego-satisfaction and social, and buyers visualization of rewards from results of use experience, products in use experience, or incidental-to-use experience, it has been found that Colgates message strategy is focussed on rational rewards based on products-in-use experience. The Colgates Sensitive Pro-Relief helps reduces the pain on consuming anything cold. Colgate total helps fighting teeth from 12 different infections, whereas Colgate Activ Salt helps make the gums stronger. These all are rational rewards based on experiences through the results of using the product.
2.3.2 Creative Strategy

Communications effectiveness depends on how a message is being expressed, as well as the content of the message itself. There are two types of creative strategies- informational strategy and transformational strategy.
9

Colgates creative strategy has been based on informational appeal. The advertising shows how people get quick relief on using Sensitive Pro-Relief and how the toothpaste reduces the pain by showing its action on oral nerves graphically. The communication in Colgate dental cream shows how the cream protects teeth against the germs for 12 hours. The tagline Suraksha Chakra sheds a light on this strategy used by Colgate.
2.3.3 Message Source

The most important factor is the sources credibility. The sources credibility can be identified with three parameters- expertise, trustworthiness and likability. Expertise is the specialized knowledge the communicator possess to back the claim. Trustworthiness is how objective and honest the source is perceived to be. Likability describe the sources attractiveness. Colgate has positioned itself as the dentists most recommended toothpaste. The source in Colgates communications strategies has always been a dentist. A dentist stands out on all these three parameters. Customers are always conscious about their teeth, and hence they want a credible source of information. The dentist is able to provide expertise, likability and trustworthiness to the claim.
2.2.4 Analysis and Recommendation

The overall strategy is based on communicating the product benefits through a credible source i.e. dentist. This has been a powerful strategy till now. The message strategy should also focus on the sensory rewards through products-of-use experience. As toothpaste provides freshness and cooling sensation, the communication

10

should portray how Colgate provides sensation while in use. This will help to augment the current strategy of focussing on rational rewards through results-of-use experience. Based on the product life cycle, Colgate should rework on its creative strategies. The Colgate Dental Cream has been in the maturity stage, and this category is facing stiff competition from the freshness segment as well as the premium herbal and sensitive segment. The focus should now move towards creating a transformational appeal, as the information seems quite obvious in this segment. The transformational appeal will help Colgate to rejuvenate this brand, and maintain its brand equity of being No 1 .

11

2.4 Media Decision

After choosing the message, the next task is to choose the media to carry it. The steps include deciding on desired reach, frequency, and impact; choosing among major media types: selecting specific media vehicles; deciding on media timing; and deciding on geographical media allocation. Media selection is finding the most cost-effective media to deliver the desired number and type of exposure to the target audience.

2.4.1 Media Selection Factors

Reach: The number of different persons or households exposed to a particular media schedule at least once during a specified time period. Frequency: The number of times within the specified time period that an average person or household is exposed to the message. Impact: The qualitative value of an exposure through a given medium. Gross Rating Points: This is reach times the average frequency. Weighted number of Exposures: This is reach times average frequency times average impact. Cost: Television being most expensive and newspaper the least. The important factor used is cost per thousand exposures. Message Characteristics: Timeliness and information content are the crucial factors.

12

Product Characteristics: Media types have different potential for demonstration, explanation, believability and colour. Target Audience: Media habits of the target audience govern the selection process.

2.4.2 Major Media Types

 Newspaper  Television  Direct Mail  Radio  Magazines  Outdoor  Yellow Pages  Newsletter  Brochures  Telephone  Internet

Colgate also follows the industry pattern in selecting the media option. Most of the marketing communication is focussed on the television advertisement. But Colgate also relies heavily on word of mouth communication medium. It takes up initiative to educate people on how to take care of their teeth and help them have stronger teeth and healthier gums. It has recently launched a program to educate people who have sensitive teeth. For this they tie-up with

13

dentists who offer free advice to people in public places like shopping malls. This creates a sense of authenticity in their communication. In each of the media communication the dentist has been an integral part of the message. But recently Colgate launched a new ad without using dentist for its mouthwash. This might be an indication of the company moving towards new outlook to advertise its product. At the same time it has utilized its association with dentists to educate people about its new launch Colgate Sensitive.

Recommendation
. Colgate as of now is not very aggressive in online advertising. Of all the segments of the advertising market, the internet advertising segment is expected to be the fastest growing segment with an expected growth rate of about 35% between 2010 and 2011. This is expected to grow at approximately the same rate till 2016. High-end products which require high involvement of consumer could be advertised through this medium. This could be a medium to explore. Radio is generally a stable medium for communication. India with its liberalizing radio regime is likely to experience the worlds fastest growth rate for radio up by 21.9% each year on average through 2016.Radio becomes a generally tactical medium for some advertisers, or a vehicle to bring down costs per contact for others. The percentage of the population using autos for commute is increasing and therefore the time those commuters spend in their cars will increase as well, adding to aggregate levels of radio consumption. This medium could be used to remain in constant knowledge of consumer.

References

14

1. Kotler, Philip.; Kevin Lane Keller (2009). Marketing Management, 13th ed. Pearson Prentice Hall. 2. (2004). Colgate-palmolive go the purveyance way automating their sales force in to the future. Available: http://www.dedata.com.au/news_purveyance_colgate.pdf. Last accessed 12th November 2011 3. Cook, I. (2008). Dear Colgate Shareholder. Available:

http://www.colgate.com/app/Colgate/US/Corp/Annual-Reports/2008/Dear-ColgateShareholder.cvsp. Last accessed 10th November 2011. 4. (2004). Rural Distribution-Wholesale Channel Development. Available:

http://www.colgate.co.in/app/Colgate/IN/Corp/Careers/RuralDistributionChannel.cvs p. Last accessed 11th November 2011. 5. Colgate logistics delivers smiles Available: Last

http://www.inboundlogistics.com/cms/article/colgate-logistics-delivers-smiles/. accessed 12th November 2011

6. (2003). Colgate-Palmolive to focus on rural, urban distribution. Available: http://www.thehindubusinessline.in/2003/08/19/stories/2003081901540300.htm. Last accessed 12th November 2011 7. (2008). Research and Markets: Valuable Overview of Colgate Palmolive's History, M&A http://www.reuters.com/article/2008/02/06/idUS163357+06-Feb-

2008+BW20080206. Last accessed 12th November 2011

15