Colgate-Palmolive - Global Marketing

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Another important thing to note is the rise of Dentists coming out of university. The number of Dentists is estimated to increase to 300,000 by 2018 from 180,000 in 2014 (Morulla, 2016). In India approximately 12000 to 15000 new dental practices are being started every year and this will serve as a channel for companies to sell their products (IDA, 2015). Colgate can tap into these new breed of dentists to increase their product references.

What market coverage and positioning strategy should CP undertake for its line of tooth sensitivity toothpaste?

Colgate-Palmolive is the biggest player in Indian toothpaste market. The Dentine hypersensitivity is a common problem in India with almost 31% population suffering from sensitivity issue. Neilsen study suggested that only 11% people used the sensitivity relief toothpastes in comparison to 31% suffering from sensitivity which points at the potential of market to expand.

The growth rate for the sensitivity market from 2010 to 2012 has been approximately 50% CAGR thus increasing the value of segment to 470 Crores in 2012(Bushan and Malviya, 2012). 58% of rural Indian consumers and overall 45% of Indian consumers still don’t use toothpastes and hence present a huge opportunity for CP to further increase its market share for traditional toothpastes and cater sensitivity toothpaste to its existing customer base.

CP’s biggest competitor GSK has taken away a huge chunk of customers from CP with its specialized sensitivity toothpastes. Any new customer that starts using GSK or any other competitor’s sensitivity product instead of Colgate’s sensitive toothpaste is essentially the eating into Colgate’s old customer base. The fact that customers in the Urban India are looking for these specialized products presents a threat to CP if they don’t move aggressively into sensitivity toothpaste market. If Colgate has to retain this customer base they have to make sure that the customers use CP’s sensitivity toothpastes. For CP it is not just tapping into the new sensitivity stricken customer base but also to retain its existing customer base.

Sensitivity toothpastes are also priced higher than the normal toothpastes and if CP can improve its sales mix with sensitivity toothpaste they can increase their profit margins also. Sensodyne and other sensitivity products are priced almost 3.5 times the price of normal toothpastes and hence the monetary value attached to this segment is huge (Bhushan and Malviya, 2012).

CP should target particular dimensions of Indian Teeth Market segments. The Rural Indian consumers have been contributing more and more yearly to the expenditures because of more employment opportunities and the low impact of the recession on rural areas. This particular geography should be a particular interest of CP as they have a huge distribution network. Another important geography is the Tier 2 and Tier 3 cities where consumers are first time buyers and are willing to spend on new products.

If we look at the demographic the Indian upper middle class and Global Indians are able to spend on the premium category products and would make an important segment for CP. The age segmentation is also of importance as the maximum problems occur between the ages of 18-55 with 33% problems in age 18-25 and rising to 54% in age 51-55 (Wangmo T,

In Behavioural segment the Brand loyalty, benefits and price sensitivity dimensions are important to consider as the perceived increased benefits sought from other similar products priced at lower or equal price can take away the loyal customers. Consumer products are low price items and consumer can easily change the brands.

How should CP target the segments in the Indian Market for sensitive toothpaste? What positioning and marketing mix should be used for each segment?

The 4 main segmentations are Geographic, Demographic, Psychographic and Behaviour (Milne, 2016) and they are discussed below for Indian Teeth Market:

Geographical Segmentation

In Geographic segmentation, the primary driver for the teeth market is the rural vs urban divide. Rural Indian customers are switching from traditional Neem twigs and teeth powders and buying more oral care products and that is resulting in growth of oral care market in these areas. Companies like Dabur have their main share of revenues from the rural India. The Urban Indian population is now moving towards the specialized toothpastes, mouthwashes, chewing gums etc. and that is driving the growth.

Indian cities are divided into the tiers. Tier 1 is the largest cities or the metropolitans. Tier 2 and Tier 3 are the mid-size cities and Tier 4 to Tier 6 is the small towns and villages. Tier 2 and Tier 3 cities are the major growth drivers of the future as the market in the Tier 1 cities has become saturated.

Demographic Segmentation

In Demographic segmentation, the primary drivers are the Annual disposable Income factors and the age. India’s 1.2 billion population is divided into 5 annual disposable income levels in Rupees. The Deprived (less than 90,000) and Aspirers (90,000 - 200,000), Seekers (200,000 – 500,000), Strivers (500,000 – 1,000,000) and Global Indians (more than 1,000,000). These distinct Income classes have distinct spending habits based and that essentially decides the consumption of consumer products. India’s population is moving from lower Income categories to upper Income categories because of dramatic growth in India in recent years. This increase in spending power is driving consumer products sales such as oral care products in India.

Behavioural Segmentation

The urban Indian consumers are getting knowledgeable about the oral care product benefits. They are looking at more specialized products in oral care such as specialized toothpastes, mouthwash and dental chewing gums. This behavioural change has created a niche segment for these products that was essentially non-existent earlier in India. The sensitive toothpaste category was the India’s largest toothpaste functional category with 10% of the country’s 54 billion toothpaste market in 2012.

Brand loyalty is another driver of this segment. Colgate has been the oldest brand in India and has become synonymous with the toothpaste. This brand loyalty has helped Colgate to keep the higher share of the market even when they face a stiff competition from international brands such as HUL, GSK, P&G and local brands such as Dabur. In the rural areas and the low income classes, Price is also one of

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