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The FMCG industry in India,
valued at Rs. 85,000 cr is
the fourth largest sector generating employment for
more than three million people. According to CRISIL, this
sector may go up to INR 140,000 in terms of market value
in the coming few years. The constituents of FMCG are: household items, personal
care items and food & beverages.
The oral care sector caccountd for 5% of the FMCG
industry. Products in the oral care sector include: toothpaste,
toothpowder and toothbrush. This sector has registered double-digit growth
over the past few years, which indicate the growth potential existing in
this sector.
Colgate Palmolive India Limited is the market leader
in the toothpaste segment. Colgate has been present in the market for
the last 70 years and its oral care brands enjoy strong brand equity in
the market. The size of the Indian oral care industry is valued at
around INR 4,000 cr, with toothpastes, toothpowders and
toothbrushes having shares of 60%, 23% and 17% respectively. Colgate has a
market share of 48% and the next leading market player, HUL, has a
market share of 30%. The other market players like Dabur, Ajanta and
Amar have around one-fifth of the total market share.
Colgate, faced with tough competition from HUL during
early 2000 made a slew of successful new launches and special offers to
protect its market share. The common types of promotional measures used
by toothpaste manufacturing companies include:
offering coupons, refunds, premiums, sweepstakes, premiums and
other offers. Worldwide, the promotional activities for oral care products
was fueled by Crest's (Procter & Gamble Co.) Tartar Control
Crest Guarantee Program. Today, Colgate stands second and
Smithkline Beecham third in introducing promotional campaigns. |
