1.1 TOOTHPASTE INDUSTRY:- AN OVERVIEW
The toothpaste history in India can be tracked back from 1975 with 1200 tonnes of toothpaste produced by the toothpaste industry. Prior to the toothpastes Oral Hygiene was the domain of local home made powders and ayurvedh practitioners. With the entry of Colgate in Indian marketplace the awareness about Oral care and the importance of oral care. In recent years the Industry has shown impressive growth rate of 18.6% (this growth is calculated in terms of value growth in Rs.).
The growth in the Urban market has been largely by the Gel Segment. Presently, a large chunk of the Market is still held by Colgate. The major players in the toothpaste Industry being Colgate Palmolive and Hindustan Lever Limited and several minor players like Balsara hygiene, Dabur etc.
Presently Colgate Dental Cream holds 52% of market share. HLL‟s Close up lies far behind with 23% of the existing market share. The third player in the marketplace in terms of market share is Colgate Gel with 10.5% of the market share. That leaves 14.5% market share for other Brands like Pepsodent, Pepsodent G,Promise, Babool, Sensofoam, Forhans, Cibaca, Neem, Vicco etc. The toothpaste market is presently valued at Rs. 750 crores out of which the Gel segment has already bagged 1/3rd portion of it. The Gel segment presently stands at Rs. 248 crores and is growing at a rate much faster than Cream. In India toothpaste usage as compared to other countries is very low which signifies about the potential of the market. In Urban India the usage of toothpaste per person per year is just 190gms. Where as it is 200gms of toothpaste per person per year in developing countries as Indonesia and Thailand. In developed countries as USA and other European countries the toothpaste usage is 375 gms per person year. In India the toothpastes companies are going in for advertising on a heavy note, on an average the companies managing this FMCG category are spending 6.15% of their sales on development. Colgate Palmolive had shelled out 15% of their sales on ads in the year 1994. Dabur had an ad expenditure of 5.07% for the year 1993. whereas balsara Hygiene spend a huge 10.17% of their sales.
In support of the text above the following pictures provide a bigger scenario of the current market state.
FIGURE 1.) Market share
1.2) TOP TEN TOOTHPASTE BRANDS IN INDIA
1. COLGATE (COLGATE PALMOLIVE Ltd.)2. PEPSODENT (HINDUSTAN UNILEVER) 3. CLOSE UP (HINDUSTAN UNILEVER) 4. SENSODYNE (GSK)
5. AQUAFRESH (GSK)
6. ANCHOR (ANCHOR HEALTH & BEAUTY CARE Ltd.) 7. DABUR RED (DABUR INDIA)
8. BABOOL (GSK) 9. MESWAK (GSK)
10. VICCO BAJRADANTI (VICCO LABORATORIES)
1.3) CURRENT MARKET SCENARIO(as of 2014).
The oral care market in India is estimated to generate revenues of upto USD 1.2 billion per annum and record an annual growth rate of 13% in 2014. Within the oral care market segment, the toothpaste market in India alone accounts for USD 0.9 billion and
isexpected to be growing at a CAGR of 15%. Previously, locally madeayurvedic powders and natural herbs that served the purpose of maintaining hygiene dominated the Indian oral care market. However, as consumer‟s awareness about hygiene grew, the market suddenly saw an influx of standardized products with leading players like Colgate- Palmolive India Ltd., Hindustan Unilever Ltd., Dabur India Ltd, Anchor Health and Beauty Care Pvt. Ltd., GlaxoSmithKline Consumer Healthcare Ltd., capturing the
market.Toothpaste Market in India to 2017 presents detailed data on consumption trends in the toothpaste category in India, analyzing consumption volumes and values at product segment levels. The report also studies crucial data on distribution channels along with the latest industry news and mergers and acquisitions in this segment throwing light on some of the key aspects driving the market.
1.4) OPPORTUNITIES IN CURRENT MARKET
Almost one third of the Indian population does not have access to any of the modern oral healthcare facilities, making it a lucrative prospect market for the leading players. With the per capita consumption of toothpaste in India at about 146g, it is the lowest in the world. Furthermore, toothpaste industry analysis revealed that dental cavities and other problems are prevalent in 63% of 15 year olds, while approximately 8% of adults in the age groups of 35-44 suffer from the same problems. Moreover, a study of the
demographics also shows that the Indian population suffers extensively from gum problems, especially periodontal diseases and other tooth sensitivity issues. The data analyzed predicts that the Indian toothpaste market can grow by 90% if the per capita consumption of toothpaste were to match that of China. Growth has already been recorded in sub segments like mouthwash and toothpastes that addresses sensitivity problems, citing which market experts are speculating growth of the segment as a whole.
1.4) DETAILED ANALYSIS OF THE TOP 4 MANUFACTURERS
1.4.1) COLGATE:-
Segmenting Factor : Family
Target Audience : The Brand Colgate and it‟s extensions are targeted at Indian
families taking booth economical and premium stances.
Availability : All over India.
Positioning Stance : on Health care through Duality of benefits, talks about
“Stops bad breath and fights tooth decay.” This positioning stance has worked well
in Indian probably because Oral. Now also the company is constantly following the
fresh breath route which proved successful for the company.
Care is not taken in a sensitized manner and hence the custom looks for
multi-benefits.
Product Range :
Colgate Dental Cream
Colgate Total
Colgate Visible White
Colgate Sensitive
ColgateSensitive-Pro-Relief
Colgate Max Fresh
Colgate Kids ToothPaste
Colgate Herbal
Colgate Cibaca Family Protection
Colgate Active Salt
Colgate Active Salt Healthy White
Colgate Maximum Cavity Protection plus Sugar Acid Neutralizer
1.4.2)PEPSODENT:- Segmenting Factor : Family
Target Audience : The Brand PESPOSDENT and it‟s extensions are targeted at
Indian families taking booth economical and premium stances.
Availability : All over India.
Product ranges:-
Pepsodent Germicheck
Pepsodent 2 in 1
Pepsodent Germicheck superior power
Pepsodent Whitening
Pepsodent Super salt 1 and 2
Pepsodent Kids
Pepsodent Gum Care.
1.4.3)CLOSE UP- Segmenting Factor : YOUTH
Target Audience : Young people. The target market being “Multi Brand
Households” where young does not use what their parents. This particular targeting
was significant when Close Up was launched because Colgate positioning was a
sort of Flip flop between Tooth decay and Bad Breath and Colgate was going for a
Broad market constituting of all the age groups.
Availability : All over India.
Product :
· Blue mint flavour introduced.
· Tangerines of Read reduced. (for serious buyers.)
· Soft Squeeze lamitubes for toothpastes introduced for the first time in the
country.
1.4.4)SENSODYNE:-
SEGMENTATION:- 20 to 50 years old.
TARGET AUDIENCE:-: Consumers who concern about their oral health and
hygiene.
AVAILABILITY:-Metros and other developing cities.
2.1 SOAP INDUSTRY:- AN OVERVIEW
Introduction
Soap Market in India to 2014 (Personal Hygiene) is a comprehensive resource for soap market data from 2004 to 2014 and market/company shares for 2008-09.This report also provides data on expenditure and consumption as well as key distribution channels, and reveals the leading companies in the Indian soap market.
Features and Benefits:
- Identify key market segments by analyzing market size data (value & volume) for the soap market
- Design business strategies by gaining insight into quantitative market trends over 2004-09 and expectations for 2010-14
- Identify key companies in the soap market in India and design M&A strategies by analyzing market share data
- Predict how consumer preferences will change in the future by analysis of expenditure and consumption information from 2004 to 2014
Highlights
- The soap market in India increased at a compound annual growth rate of 12% between 2004 and 2009.
- The bar soap segment led the soap market in India in 2009, with a share of 99.3%. - The leading player in soap market in India is Unilever.
2.2INDIAN SOAP INDUSTRY AT A GLANCE IN 2013 – 2014
The soaring palm oil price in the international market till July 2013 forced the Indian soap industry to increase the price of its commodity across the board. Then when the price of palm oil fell by about 20% the soap manufacturers in India started offering promotions. This increased the sales in 2013. Companies such as HUL, Godrej Consumer and Wipro Consumer were big gainers from the current round of promotions. Over the past two years, these large companies gained considerable market share from regional firms like Venus Soaps that were unable to keep prices low given the rising palm oil costs.
In the December quarter of 2013, HUL‟s Lux and Lifebuoy were India‟s leading soaps with a market share of 14.4% each, while Santoor had 8.8% and Dettol 7.8%, according to Nielsen data. Industry experts forecast that palm oil prices will stay near current levels for the next two quarters, which may prompt the Indian Soap industry to look up.
The following figures give the detailed vision to the above texts.
