Colgate-Regaining Market Leadership in India's Sensitive Teeth Market
Autor: sainivicky04 • January 22, 2017 • Case Study • 2,697 Words (11 Pages) • 2,433 Views
The purpose of this case is to analyse if Colgate-Palmolive can regain its market position in Indian Oral Care market. Could Colgate-Palmolive win the market leadership from its closest rival GlaxoSmithKline in the sensitive teeth market of India? How should Colgate-Palmolive navigate through the extremely competitive tides to regain its lost market share?
Answer 1)
To understand the competitive positioning of Colgate-Palmolive we will first perform a SWOT Analysis of Colgate-Palmolive for Indian Oral Care market:
STRENGTHS
• Brand Name: Colgate is synonymous to toothpaste in Indian Market
• Highest Distribution channel and retail penetration in India
• Stable Financial position for advertising and promotional budgets
• Huge Market Share and Good presence in rural areas of India
• India’s #1 most trusted brand and Closely worked with Indian Dental Association
• Innovative products WEAKNESSES
• Commoditization of Brand Name
• Unclear positioning of CP’s products in comparison to one of its biggest competitor GlaxoSmithKline’s product Sensodyne in the Dentine Sensitivity market
• Huge dentist references for GSK toothpastes
• Loss of Innovation and letting GSK gain first mover advantage in diversified oral problems such as bleeding and receding gums
OPPORTUNITIES
• Huge population suffering from Dentine hypersensitivity
• Increasing shift of Indian consumers towards Oral Care such as specialized toothpastes and mouthwash
• Increasing number of Dentist coming out of universities per year
• Increasing purchasing power of Indian consumers
• Growing CPG market in Tier 2 and Tier 3 Indian cities
• Huge rural market available to capture THREATS
• Competition from present Local Indian Brands such as Dabur, Himalya and upcoming Local Indian Brand Patanjali
• Competition from Global brands such as GlaxoSmithkline, Unilever and Proctor and Gamble
• Low profit margins of toothpaste industry
• One of the Lowest per capita toothpaste consumption
• Limited knowledge of Indian population about the causes and solution for tooth sensitivity
Colgate-Palmolive
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