This Presentation gives u detail about how colgate doing advertising or promotion in rural areas

1. Presented By:
Agrawal Bhavin (02)
Ishani Dave (14)
Aakash Gajjar (18)
Nitin Madhavi (28)

2. Colgate
Type Public
Industry Personal Care
Founded 1806
Headquarter United States
Key People Ian M. Cook, C.E.O
Revenue US$ 17.42 BILLION (2013)
No. of employees 37,700 (2012)
Slogan “world of Care”
Website www.colgatepalmolive.com

3. History
• In 1806, William Colgate introduced starch, soap and
candle factory on Dutch Street in New York City under the
name of "William Colgate & Company".
• In 1857, William Colgate died and the company was
reorganized as "Colgate & Company" under the
management of Samuel Colgate, his son.
• In 1873, the firm introduced its first toothpaste, an
aromatic toothpaste sold in jars.

4. • His company sold the first toothpaste in a tube, Colgate
Ribbon Dental Cream, in 1896.
• In 1928, Palmolive-Peet bought the Colgate Company to
create the Colgate-Palmolive-Peet Company.
• In 1953 "Peet" was dropped from the title, leaving only
"Colgate-Palmolive Company", the current name.
• Today Colgate has numerous subsidiary organisations
spanning 200 countries, but it is publicly listed in only two,
the United States and India.

5. 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
and awareness in the minds of consumers.
• Today, Colgate is a household name in India with one out of every two
consumers using a modern dentifrice. The company manufactures and
markets its oral care, personal care and household care products under
the ‘Colgate-Palmolive’ brand name.
• Colgate India earns around 93% of its revenues from the oral care
segment.

6. The Toothpaste Market
• Oral hygiene continues to be under aggressive competition, with
sales increasing each year making it a Rs. 3,000 crs. Market.
• The toothpaste segment is largely a two player industry, Colgate
Palmolive & HUL accounting for 85% of the entire market.
• Oral care is expected to have a value CAGR of 9% at constant 2013
prices to reach INR131.0 billion by 2018

7. Long term growth drivers for the
industry
• Improving penetration
• Through better distribution and conversion from other modes of oral care
• Increased usage
• Improved per capita consumption through increased usage frequency
• Population growth
• An annual 1.5% increase in population will help broaden the user base for
oral care.

8. Colgate Palmolive milestone
• 1806: Company is founded by William Colgate in New York
to make starch, soap, and candles.
• 1873: Toothpaste was launched
• 1928: Colgate and Palmolive-Peet merge, forming Colgate-
Palmolive-Peet Company.
• 1937: the company moved into India.

9. Colgate Palmolive milestone in India
• 1937: launch first toothpaste Colgate dental cream
• 1949: launch tooth powder and toothbrush
• 1950: Palmolive shave cream
• 1976: launch programme “young India.”
• 1989: Palmolive extra care soap launched.
• 2003: launch oral health month program
• 2003 to Present: No. 1 Toothpaste Brand in India

10. Colgate Palmolive products
Tooth brush
•Colgate360
•Colgate Zigzag
•Colgate Cibaca
Tooth powder
Colgate Toothpaste:
•Colgate Total 12
•Colgate cibaca
•Colgate Sensitive
•Colgate Active salt
•Colgate Max Fresh
•Colgate Fresh Energy Gel

11. Market share (2014)
56.70%
21.50%
13.40%
8.40%
Market Share
Colgate Palmolive
HUL
Dabur
others
Source: www.financialexpress.com

12. The Brand Equity of Colgate
• In 1992,93,94 Colgate was ranked No 1 brand in all categories
surveyed by annual brand power survey India.
• In 1997 Colgate calciguard and Colgate plus get IDA seal of
acceptance.
• 1999 Colgate was rated “India's premier brand” by A&M
annual survey of India's top brand.
• 2002 again No 1 brand in India- surveyed by Taylor Nelson
MODE.
• “ Best Employer India”- surveyed by BT Hewitt

13. • 2003-05 ranked “Most trusted Brand in India” Surveyed by AC neilson
ORG-MARG.
• 2009 celebrated Colgate Oral Health month.
• 2013 to till now Colgate is the most successful Brand in India

14. Major competition to Colgate in rural
India
• Pepsodent
• Close up
• Babool
• Meswak
• Dabur red
• Amar
• Anchor white
• Other small Players

15. Segmentation
• The Company has divided its market into two product
segments: Oral care & Personal care.
• Colgate is considered to be the global leader in the Oral care
Products such as toothpaste, Toothbrushes and many other
pharmaceutical products.
• Colgate also possesses a strong market in the Personal Care
segment that includes products like bar, liquid hand soaps,
shower gels, shampoos etc.

16. • Geographic Segmentation Strategy:
The Colgate Company has implemented this strategy by expanding its
business in over 200 countries. The company does not market the same
product in every country. For instance, in United States they are selling
sixteen different types of toothpastes while in UK; they are selling twenty
two different types of varieties.
• Demographic Segmentation Strategy :
The Company caters the market segment based on different demographics
such as age, gender, social class etc. For kids aged 8-10, they have products
like transitional toothpastes. They have a separate section for infants,
children, teenagers and adults.
• Psychographic Segmentation Strategy:
Here the company sells the products considering the lifestyle and needs of
the consumers. For people who are sensitive about their teeth, they have
introduced Sensitive pro-relief toothpaste and brushes which are made to
decrease tooth sensitivity issues.

17. The Product Life Cycle

18. A company's positioning and differentiation strategy must
change as the product, market and competitors vary over the
Product Life Cycle. to say that a product has a life cycle
consist of four things:-
1. Products have limited life
2. Product sale passes through different stages, each posing a
different challenge and opportunity to seller.
3. Profits rise and fall at different stages of life cycle.
4. Products need different strategies in different life cycles.

19. 1. Introduction:
A period of slow growth, because the product is just introduced in
the market, the profits here are nonexistent due high cost of
advertising and other product introduction strategies.
For Colgate-
• 1873 Colgate toothpaste introduced in jars to market.
• 1986 Colgate toothpaste sold in tubes called as Colgate ribbon.
• 1937 Colgate entered Indian market.
• 1949 it touched a new height in India.
• 1976 it tried to growth it's sales in India by launching YOUNG
INDIA PROGRAM -"bright smile becomes brighter".

20. 2. Growth:
A period of rapid market acceptance and substantial profit
improvement.
For Colgate-
• 1990 to 2003 Colgate reaches out to every rural customer and
strengthen it's supply chain.
• Colgate herbal white toothpaste launched.
• 2003-2009 Colgate awarded no.1 toothpaste brand for 7
consecutive years.
• Colgate acquired 51% market share during this period.
• Launched many initiatives and promotions to further increase it's
sale
• As it's initiative it started oral care weak and targeted schools
and Anganwadis

21. 3. Maturity:
A slowdown in sales growth, because the product has achieved
acceptance by most potential buyers. I believe this to be more
of a stable stage for the product, where the graph is almost flat.
For Colgate-
• HUL and P&G emerged as major competitors for Colgate.
• With some other niche player Colgate facing tough
competition in toothpaste market.
• they roped SRK as their brand ambassador in 2009
• oral health month launched in 2010.
• colgate with IDA worked to develop toothpastes
for different needs of customer.
• 2011-2013many variants of Colgate toothpaste launched.

22. 4. Decline:
Here the sales show a downward drift and profits decrease.
This is where the company has to really think of ways to get
its product back in business. It may try hard at advertising,
or may be add new features, but basically come with a new
marketing strategy to increase its falling profits.

23. SWOT Analysis
• Strengths
 Geographically diversified industry.
 Strong brand image.
 Strong market share.
 Appealing advertisements.
 Huge sales growth.
 Skilled workforce.
 Strong promotional strategies.
• Weaknesses
 Saturated market.
 Market share is limited due to the presence of other strong FMCG Brand
 Fake Brands are supplied under their brand names

24. • Opportunities
 Tap rural market and increase penetration in same
 Emerging markets may attract business
 Differentiation strategy is required.
• Threats
 Increase in commodity prices.
 Fierce competition.
 New entrants in the market can be a threat to Colgate

25. 4A’s adapted by Colgate to attract Rural India
Acceptability:
• They try to position some innovative toothpaste with a brand name other
than Colgate but under the umbrella of Colgate Palmolive
• Focusing toward rural rich and consuming class by endorsing the
development of ‘Colgate Ayurvedic Toothpowder
• They came up with sachets of tooth powder and position toward rural
population who buy in smaller lots.
• Eg: 1.They launch different toothbrushes for different age groups.
2.They launch a special toothpaste and toothbrush for kids in the age
group from 4-10 years.

26. Affordability:
• As rural consumers are price conscious people, so its good to set a
low price for them
• Quantity which the Colgate offers to consumer is much higher than
its competitors at the same price
• Colgate has adopted Market penetration pricing strategy in order to
gain market dominance.

27. Availability:
• 940 direct accounts
• 3.8 million retail outlets.
• 2nd most widely distributed product in the country.
• The company is tying up with initiatives like E-chopal and Disha
to further strengthen its distribution network .
• In 1998, Colgate contacted 6 million people in 20,000 villages.

28. Awareness:
• It is often said that markets are made, not found. This is
particularly true of the rural market of India.
• It is a market meant for the truly creative marketer. Promotion
has become the biggest challenge, to rural marketers today.
• Rural marketers have to skillfully communicate with a much
larger but scattered audience characterized by variations in
language, culture and lifestyles.(companies have to adopt the
principle of multi-national companies i.e., “ think global and act
local”

29. Colgate create a awareness of their product in:
• Melas
• Door to door selling
• Haats
• Sampark campaign
• Vans
• Free dental checkup
• Free samples

30. The requirement is threefold (for
strategic promotion)
1. To explore the available media at the different locations.
2. To develop region-specific consumer profiles to understand
the characteristics of target market.
3. To design right communication and motivation strategies to
induce target audience to buy the product.

31. Sampark Penetration
• Suggesting and implementing a rural promotional scheme
was what Colgate called ‘Sampark’ for, as they were
specialist in rural advertising category.
• Going in for mass media would not prove to be costly but the
reach would be limited as, still only very few people own and
possess a T.V. or a radio. Sampark decided to their
advertising by door to door selling

32. Distribution Channel
• Whole seller
• Retailer
• Vans
• Weekly Haats
• Bazaars

33. • Wholesalers
The Indian wholesaler is principally a Galla – Kirana (food-grain) merchant
who sustains the belief that business is speculative rather than distributive
in character.
• Retailers
Village retailers have traditionally been among the most mobile of rural
residents.
 CREDIBILITY
He enjoys the confidence of the villagers.
 INFLUENCE LEADER
His role as influence leader is indisputable.
 BRAND PROMOTER
In rural market retailers remains the deciding factor to sell particular brand.
Retailers helps in identification and selection of brands, there is less
influence of shelf displays and point of purchase promotion.

34. • Melas and Fairs:
This is another low cost distribution channel available to the marketers. It
is comparable with urban events like Wills Trophy, India International
Trade Fair (IITF),Most of the fairs are associated with either a religious
event or a festival. Among the most famous melas is the mighty Kumbh
Mela at Allahabad (Triveni Sangam), Pushkar mela in Rajasthan, Kullu
Dusshera mela in Himachala Pradesh, Sonepur mela in Bihar and Makar
Vilakku in Kerala. According to the Indian Market Research Bureau
(IMRB) around 8000 melas are held in rural India every year.
• Educational Films :
Educational films were also shown in between movies in theatres, these are
usually 10-40 seconders which were educational and used to feature either
actors, local lenders, for a farmer just like the ones viewing the
documentary, later on after the movie would end free samples were
distributed to the audience

35. • Teachers Training Program
Teachers Training Program is an integral part of the School Dental Health
Program, conducted regularly across the country to promote preventive
dental health care. Colgate also has launched its first-ever online school
curriculum featuring fun and entertaining activities.
• “ Oral Health Educational Program”
The Colgate Rural Initiative , targeted at rural areas with a population
between thirty and a hundred thousand people. The dental check up camps
were supervised by teams of dentists and organisers who interacted with
over 1 lakh people teaching them the benefits of oral hygiene.
• ITC E-Choupal
Colgate, a company also tied up with ITC E-Choupal and Rotary to spread
the message of dental care and oral hygiene to villages across India.
The campaign successfully targeted over 156 villages in Uttar Pradesh in
association with Project Disha and 36 villages in Maharashtra. In addition,
dental camps were also conducted in the Dussera Mela at Kota.

36. Vans:
Free Dental Check-up in mobile vans

37. Challenges face by companies:
• Many companies view the rural markets as great opportunity for
expanding their sales but find distribution as a major problem.
Unfortunately, it is almost impossible to transplant strategies which work
successfully in urban markets on to rural markets.
 The road blocks to reach the rural customers are:
 Lack of adequate transport facilities.
 Large distances between villages.
 Lack of Good roads connecting villages to nearest townships.
 Lack of proper retail outlets·
 Lack of mass media infrastructure.

38. Conclusion
• Colgate is still most successful brand in Rural India
• Future for Colgate also seems bright
• Main reasons are:
 Strategic initiatives
 Creating Demand in rural areas
 Innovative Promotions

39. THANK YOU
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