COLGATE v/s PEPSODENT

TY.BMS (SEMESTER VI)

oothpaste industry has grown immensely in the Indian

T scenario. There is a lot of competition in the industry mainly

between two major players Colgate and HLL .The companies
are coming up with new schemes as well as products to lure
the customers. The usage of toothpaste has grown because of
the lifestyle and the way the individuals are living i.e. more
awareness about health.

The earliest known reference to toothpaste is in a manuscript from

Egypt in the 4th century A.D., which prescribes a mixture of powdered salt,
pepper, mint leaves, and iris flowers.
The Romans used toothpaste
formulations based on human urine.
Since urine contains ammonia, it was
probably effective in whitening teeth.
An 18th century American toothpaste recipe containing burnt bread has been
found. Another formula around this time called for dragon's blood,
cinnamon, and burnt alum.

However, toothpastes or powders did not come into general use until
the 19th century. In the early 1800s, the toothbrush was usually used only
with water, but tooth powders soon gained popularity. Most were homemade,
with chalk, pulverized brick, and salt being common ingredients. An 1866
Home Encyclopedia recommended pulverized charcoal, and cautioned that
many patented tooth powders then commercially marketed did more harm
than good.

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By 1900, a paste made of hydrogen peroxide and baking soda was

recommended. Pre-mixed toothpastes were first marketed in the 19th century,
but did not surpass the popularity of tooth-powder until World War I. In
New York City in 1896, Colgate & Company manufactured toothpaste in the
first collapsible tube, similar to that recently introduced for artists' paints.

Fluoride started to be added to toothpastes in the 1950s. Countries

limit and suggest different amounts acceptable for health. Much of Africa has
a slightly higher percent than the US.

Toothpaste is most commonly sold in flexible tubes, though harder containers

are available. The hard containers stand straight up, availing more of the
toothpaste and saving shelf space.

Many Multinational Companies entered in the business of Toothpaste

world but there are two major toothpaste brand that are famous than any
other product in this world which we are going to discuss below.

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C
olgate-Palmolive is a $13.8 billion global company serving
people in more than 200 countries and territories with
consumer products that make lives healthier and more
enjoyable. Colgate focuses on strong global brands in its core businesses —
Oral Care, Personal Care, Home Care and Pet Nutrition.

Colgate is delivering strong global growth by following a tightly defined

strategy to increase market leadership positions for key products, such as
toothpaste, toothbrushes, bar and liquid soaps, deodorants/antiperspirants,
dishwashing detergents, household cleaners, fabric conditioners and specialty
pet food.

Colgate – Palmolive Company which is an America based multinational

corporation focused on the production, distribution and provision of
household, health care and personal products, such as soaps, detergents, and
oral hygiene products (including toothpaste and toothbrushes). The
company's corporate offices are on Park Avenue in New York City.

William Colgate, a soap and candle maker, opened up a, soap and

candle factory on Dutch Street in New York City under the name of "William
Colgate & Company". In the 1840s, the firm began selling individual cakes of
soap in uniform weights. In 1857, William Colgate died and the company was
reorganized as "Colgate & Company" under the management of Samuel
Colgate, his son. In 1872, Colgate introduced Cashmere Bouquet, a perfumed
soap

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Colgate Dental Cream Colgate Herbal

Colgate Total 12 Colgate Cibaca Family
Colgate Sensitive Protection
Colgate Max Fresh Colgate Advanced Whitening
Colgate Kids Toothpaste Colgate Active Salt
Colgate Fresh Energy Gel Colgate Whitening

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P
epsodent is a brand of toothpaste with a wintergreen flavor. It
was formerly owned by Unilever (but, since 2003, by Church
and Dwight in USA,).

Pepsodent was a very popular brand before the mid '50s, but its makers
were slow to add fluoride to its formula to counter the rise of other highly
promoted brands such as Crest and Gleem toothpaste by Procter & Gamble,
and Colgate's eponymous product; sales of Pepsodent plummeted. Today
Pepsodent is a “value brand” marketed primarily in discount stores and retails
for roughly half the price of similarly-sized tubes of Crest or of Colgate.

Pepsodent is still sold as a Unilever property in India, Indonesia, Chile,

Finland, and several other countries.

Pepsodent advertisements spotlighted the toothpaste's distinguishing

features. It had a minty flavor that was derived from sassafras, an ingredient
found in some varieties of tea and such soft drinks as root beer and
sarsaparilla. Advertisements also pointed out the presence of irium (otherwise
known as sodium lauryl sulfate) as a mechanism for fighting tooth decay, and
to an ingredient known as IMP for preventing tooth decay.

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Complete + Gum Care Pepsodent Milk Teeth

Strawberry
Complete 12 Pepsodent
Pepsodent Sensitive
Herbal Pepsodent
Pepsodent Whitening
Pepsodent Milk Teeth
Orange Pepsodent Cavity Prevention

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COLGATE

C
olgate-Palmolive informs its customers about its new
products as well as the product that is being used by the
customers. Colgate-Palmolive persuades and convinces its
new as well as old customers to purchase its new product. Adopting a good
promotional strategy Colgate has succeeded to retain its customers and image.
By this Colgate strongly focuses on different promotional strategies i.e.
mass selling, advertising, publicity and sale promotion etc. Colgate-Palmolive
has proved itself as a keen observer of the market and the culture all around
itself. Colgate has done in the past and still doing at the moment. It is
producing & introducing the products especially for the kids.
Colgate is very popular among young kids just because of its perfect
promotion. Colgate- Palmolive is promoting kids products by labeling the
cartoon Characters like Looney tunes, Barbie, Barney and many more which
are being loved by the children. It also educating Children by b slogan
“Stronger say bhe Strong, Mera Colgate”

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Colgate-Palmolive has list of products for the children like:

Oral health for children.
Toothpastes.
Toothbrushes.
Great Flavor.
Games.
Track for Brushing.

Through the strong promotion by the media i.e. TV, radio, newspaper
etc. It is rightly successful to capture the mass market. So, we can say that the
Colgate is the product of mass selling. Colgate is not only using the
traditional advertising media for its Promotion. However it is also using the b
electronic advertising media i.e. internet etc. Because a large number of people
are using the internet. So, Colgate also advertises on the different websites
with its required information for its customers and has a specific website to
promote each Colgate product.

Colgate also promotes its product by sales Promotion to attract its customers
to use the product. Sometimes, Colgate introduces the product at low prices
according to the quantity and to facilitate its customer. Which effect
positively on the Colgate’s end customer or consumer. Colgate’s positive
Promotion effect on the product as well as company. Which helps a lot to
establish the product image as well as company image in the minds of
customers. By using the idea of AIDA and IMC, Colgate’s promotional
activity not only became strong but also helps to convincing the customers to
adopt the product for using

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PEPSODENT

P
epsodent packs included a Germ Indicator in February-May
2002, which allowed consumers to see the efficacy in fighting
germs for themselves. As a follow-up, in October 2002,
Pepsodent offered Dental Insurance to all its consumers to demonstrate the
confidence the company has in the technical superiority of the product.

Pepsodent connects directly with kids and their parents. Pepsodent has
always worked in the direction of an overall awareness of dental health. The
relaunch campaign in October 2003 widened the context to "sweet and sticky"
food and leveraged the truth that children do not rinse their mouths every
time they eat, demonstrating that this makes their teeth vulnerable to germ
attack.

Pepsodent's most recent campaign aims at educating consumers on the

need for germ protection through the night. Pepsodent also includes a range
of toothbrushes.

Pepsodent, Unilever’s leading oral care brand, recently announced its

collaboration with the Indian Dental Association (IDA) in conjunction with
World Dental Federation (FDI) to help improve the oral health and hygiene
standards in India.

This project is part of a wider global collaboration between Pepsodent’s

parent company, Unilever and FDI, the international organisation which
represents nearly one million dentists globally.

This unique partnership aims to increase oral health education and

promotion in countries in both the developed and developing world. The

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Pepsodent-FDI collaboration, established in 2005, now operates 42 projects

in 38 countries.

The new partnership in India will build on existing programmes that

Pepsodent and the IDA have been running in schools targeting behaviour
change amongst children. Going forward, the programme will focus on
increasing awareness of good oral habits and concentrate on the importance of
twice daily brushing, and particularly night brushing amongst children. The
Oral Health initiative will feature many practical elements including dental
check-ups, live demonstrations with audio-visual aids and the distribution of
oral health educational materials. It will also involve schoolteachers and rural
health workers working to educate children about the benefits of better oral
health and hygiene.

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COLGATE

T
he CPIL is the market leader in the Indian oral care market
with a market share of 51 per cent in the toothpaste segment,
48 per cent in toothpowder segment and 30 per cent in the
toothbrush segment.

The Company has reported Net Sales for nine months ended at Rs.
1239.4 crores, an increase of 15% over the same period of the previous year.
Net profit for nine months period stood at Rs. 213.2 crores, an increase of
21% over net profit recorded in same period of the previous year.

DRIVING GROWTH

The growth of 14% achieved over the same quarter of the previous year
has been led by a steady 14% volume growth in the toothpaste category, with
the Company maintaining its leadership position at 49.6% market share.
Major brands such as “Colgate Dental Cream”, “Active Salt”, and “Cibaca”
continue to contribute to this consistent growth.

The Toothbrush category market share saw an increase of 2.8% taking

Colgate’s share to 38% during Jan08–Dec08. In the Toothpowder category,
the Company’s market share has also increased by 2.9% to 48.9% .

The Company continues its thrust in spreading oral health awareness

and good oral hygiene practices through various programs conducted across
the country, mainly targeting consumption building in rural areas.

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The Company observed October 2008 as “Oral Health Month” (OHM)

in association with the Indian Dental Association. OHM covers a wide
spectrum of activities designed to spread oral health awareness and good oral
hygiene practices, its mission being “Zero Tooth Decay”. The program
involved 10,000 dentists spread across 200 towns. Colgate’s unique “Little
Dentist” program covered 1.5 lakh children from 190 schools across 7 cities.

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PEPSODENT

P
epsodent, Hindustan Lever Ltd s leading oral care brand,
announced the launch of Pepsodent Dental Insurance, a first
of its kind initiative in the oral care category in India.
Undertaken through a partnership with the New India Assurance, India s
largest General Insurance Company, Pepsodent now offers its consumers free
dental insurance of Rs. 1000/- on purchase of any pack of Pepsodent.

Under this initiative Pepsodent offers its consumers insurance cover

against expenses for the extraction of a permanent tooth or teeth due to severe
Caries and Periodontitis including cost of medication in relation there to.
Caries and Periodontitis are two of the most widespread dental ailments in
India.

Announcing the launch of Pepsodent Dental Insurance Pradeep

Banerjee, Category Head - Oral Care, HLL, said, "Pepsodent Dental
Insurance is a unique concept and first of its kind in the Oral Care category in
India. The initiative not only strengthens Pepsodent s proposition of being a
germ-protector but also displays our commitment towards improving oral
hygiene for our consumers."

Elaborating further on the concept of Dental Insurance, Pradeep said

"Pepsodent Dental Insurance is a unique concept in this category and will
further strengthen the equity of Pepsodent in the minds of the consumers."

Insurance cover under Pepsodent Dental Insurance will be provided for

one year, which comes into effect after a period of six months from the date of
issue of the Pepsodent Dental Insurance Certificate.
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Pepsodent Dental Insurance forms will be soon available in all Superior

Pepsodent packs of 100 and 200 gms as well as select retail outlets. The
company also plans to make the forms available through advertising in the
print media starting November.

Pepsodent has steadily gained market share from 16.4 % last year to 17.3 %
in Aug 02. HLL Oral Care, today commands an overall market share of 34.9
% in the toothpaste market with its range of toothpastes under the Close Up
and Pepsodent brands. With a strong focus on promoting oral care and
hygiene amongst consumers, HLL Oral Care under its Pepsodent brand
conducts various oral care and hygiene programs across the country including
dental check-up programs in community.

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COLGATE
The packaging and labels can be used by marketers to encourage
potential buyers to purchase the product. Package design has been an
important and constantly evolving phenomenon for dozens of years. Colgate
uses attractive packaging which visible it from competitor’s brand. They have
used following colours:

* White:
Classic color, Accurate background, Sophistication & agility of company,
Natural colour

* Red:
Strength, energy, love, excitement, leadership, power, Active, exciting,
good
luck, Young Generation.

* Blue:
Research process, Calmness and peace, Innovation, Freshness

* Yellow:
Sunlight, joy, happiness, wealth (gold), hope .

* Green:
Nature, spring, fertility, youth, environment, wealth, money (US), good
luck, vigor, generosity, go, grass , Green also symbolizes go because of its use
in traffic signal
Colgate also focuses mainly on the following factors at the time of packaging:

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* Reducing the Environmental Impact of Packaging:

Colgate is always looking for ways to minimize the impact of its

packaging on the environment, and has been an industry leader in the
continuous use of a type of post-consumer recycled plastic known as PET.

* Global sustainability packaging strategy focuses on the 4 Rs:

Reduce the weight of the packaging where feasible

Remove secondary and tertiary packaging where possible
Recycle — increase the use of recycled materials and convert to more
recycling-friendly materials
Reuse/Refill — design packages to be reusable and focus on refill
package development

Guidelines have been developed to help the packaging designers and

engineers to create more sustainable packaging starting from the concept
stage. packaging teams publish monthly internal Packaging Sustainability
Newsletters to share best practices, news and market trends from around the
world

* Reducing Material in Toothpaste Tubes

Colgate continues its effort to reduce the amount of material in its

toothpaste tubes while maintaining the required dispensing performance,
toothpaste quality and packaging integrity. From 2000 to 2008, the packaging
reductions resulted in over 30% reduction in consumption of energy and
natural resources.

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Colgate's progress in this area was recognized as a "Sustainability Success

Story" by a major retail customer. For example, in Latin America:

The tube weight reduction resulted in 1,150 metric tons of savings in

2006 and 2007
The cap weights were reduced in 2008, resulting in an annual savings of
400 metric tons of plastic

At Colgate, sustainability is a critical criterion for any new package design and
development. Through our core value of continuous improvement, we
constantly search for ways to minimize the environmental impact of product
packaging.

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PEPSODENT
* Our approach:

Their approach towards responsible packaging seeks to take into

account environmental, social and economic considerations. In 2007 the
company created a Sustainable Packaging Steering Team to define a strategy.
This team is building on the work already carried out over the past few years
by the Unilever Packaging Group.

Achieving truly sustainable packaging is a complex challenge. Some

energy is always required to make packaging and some waste is inevitable even
with highly effective reuse and recycling schemes.

The approach is based on three elements:

Consideration of the whole product, not just packaging in isolation

Assessment via our new vitality metric, which covers the waste
generated – taking into account all the different kinds of packaging a
product requires. It also takes into account an estimate of the recycling,
reuse and recovery rates of the materials as used in a particular region
Use of leading-edge design techniques and choice of materials to
minimise impacts.

* Guiding principles

Underlying this strategy are five guiding principles that they seek to
apply: remove, reduce, reuse, renew and recycle. Sustainable Packaging
Steering Team implements this approach across Unilever.

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More on the five guiding principles: (4R)

Remove: to eliminate, where possible, unnecessary layers of packaging

such as outer cartons and shrink-wrap film.
Reduce: to reduce the material we use in our packages and ensure they
are the optimal size and weight for their contents.
Reuse: to reuse packaging from the materials we receive at our factories.
Renew: to maximise the proportion of packaging from recycled and
renewable resources and to investigate the technical feasibility of
biodegradable and compostable materials
Recycle: to increase the use of recyclable and single-material
components in packaging for easy sorting and recycling at the end of its
use.

* Enhancing design

Innovative packaging design can minimise the environmental impact of

packaging itself. But it can also enhance a product's lifecycle impacts. For
example, effective packaging can reduce product leakage and consequent
waste during transportation.

* Sustainable paper sourcing

A significant proportion of packaging relies on paper. They estimate

that most of the paper purchased for European business comes either from
recycled material or sustainably managed forests. While this is an encouraging
picture for Europe, the situation in other regions can be very different as
sustainable forestry practices differ greatly. The company is working with the
Rainforest Alliance to develop a sustainable sourcing policy for paper.

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* Litter in the developing world

A particular concern is the volume of sachets we use to package single-

use products, especially in developing and emerging markets. These may end
up as litter where there are no appropriate disposal facilities.

The approach is to:

implement design improvements to create sachets that use less material

or material with less environmental impact
support litter awareness programmes
work with others to explore economic models which create incentives
for collection and reuse of our packaging.

Working with others

Effective solutions require a partnership approach. Unilever is a

founding member of the Sustainable Packaging Coalition, which has over 160
members, including packaging producers, users and retailers. We are also
members of EUROPEN (the European Organisation for Packaging and the
Environment).

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T
he toothpaste industry is going to be more competitive in the
near future. The profit margin is going down over the year
and going to be continuing for the future also.
So the main mantra for the companies to be successful is to satisfy the
consumers and develop brand image and brand loyalty amongst them. So it
has become very necessary for the consumers to understand the Indian
consumers very well.
So in the future the companies who come up with new products at
competitive prices and with good quality are going to the successful one.
Promotional activities are also going to play an important role that should to
be for both retailers and consumers.
So we are going to see a market which is going to heat up in the near
future where mainly two major players Colgate and HLL will fight the war.

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