Colgate: Why It Dominated India | Business Case Study
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Colgate's Unique Strategies in the Dental Hygiene Market
- Colgate's oral hygiene products were first sold in 1873, after starting as a soap company.
- Colgate introduced toothpaste in glass jars in 1896, and later switched to tubes.
- The company earns $6 billion in annual sales, with $2.76 billion in profit.
- Colgate's international sales account for 64% of their total sales.
- In India, Colgate has a 56% market share and dominates the toothpaste market.
- Colgate launched two lines of toothbrushes, targeting different consumer segments.
- They used buy one get one schemes to increase toothbrush sales by 170%.
- Colgate focused on in-store displays rather than billboards, recognizing unplanned toothbrush purchases.
- They strategically positioned their products in stores between competitors for maximum sales.
- Colgate conducted research surveys to gain insights and optimize their in-store positioning.
Factors that Influence Toothbrush Choices and the Importance of Differentiation
- Customers prioritize comfort in their choice of toothbrush.
- Colgate introduced a diamond-shaped toothbrush to fit comfortably in the mouth and differentiated themselves from competitors.
- Being different is more important than being better when it comes to toothbrush choices.
- Toothbrush features like shape and design matter more to customers than actual dental benefits.
- Differentiation is crucial for building a strong brand.
- Hollywood's influence on dental aesthetics led to the rise of dental veneers for color correction.
- Colgate faced challenges in keeping up with the demand for dental veneers in the market.
The Evolution of Colgate and the Changing Needs of Customers.
- Colgate introduced products like Colgate Visible White to cater to the demand for white teeth influenced by Hollywood.
- Customers began to prioritize dental health, leading to the rise of Oral B as a trusted brand.
- Colgate developed a close relationship with the Indian Dental Association, sponsoring events and providing scholarships, to promote their recommended status.
- In 2007, Colgate was told by the Advertising Standards Authority in the UK that their claim of dentists recommending their toothpaste was deceptive.
- Colgate has evolved its product line over the years to meet changing consumer needs, including lines for sensitivity, whitening, gel, and children's toothpaste.
- Colgate faces challenges in different segments as Oral B wins in the German tooth deck and sensitivity categories.
- Colgate has tried to address these challenges by spinning out separate toothpaste and toothbrush products for each segment.
Overview of Colgate's Oral Hygiene Products and Market Strategies
- Colgate's oral hygiene products date back to 1873 when they started as a soap company.
- They introduced toothpaste in glass jars in 1896 and later switched to tubes.
- The company earns $6 billion in annual sales with $2.76 billion in profit.
- Colgate's international sales account for 64% of their total sales.
- In India, Colgate dominates the toothpaste market with a 56% market share.
- Colgate launched two lines of toothbrushes targeting different consumer segments.
- They used buy one get one schemes to increase toothbrush sales by 170%.