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Integrated Marketing Communications

Evaluation Case Study
Colgate Cibaca The Road Ahead... (Courtesy FCB Ulka Comstrat 2006)
Case Outline
The Rs. 2,200-crore toothpaste market (the largest oral care segment), grew a robust 10 per cent
in value in 2000. But this woun own to 2.! per cent in 2001. "n the #irst si$ months o# 2002,
the market #or toothpastes in #act shrank b% aroun &.' per cent in value( in volumes terms it was
much higher at 11 per cent. The going was tough #or the oral care inustr%. )ittle woner that
teeth were bare between the market leaer, *olgate +almolive, an the challenger, ,inustan
)ever, as the marketing war between the two -.*/ giants #or protecting market share got
tough. 0s i# that was not enough, these pla%ers #oun new aggressive competition coming their
wa% #rom regional low price competitors such as 0nchor ,ealthcare 1 02anta "nia, who price
their o##erings at over !03 iscount, giving market leaers a run #or their mone% These low
price competitors accounte #or more than 40 per cent o# the growing 5iscount segment6. "t
looke as i# the multinational companies were helpless against challenger brans. But then the
big bo%s struck back, *olgate revitali7e one o# its e$isting brans, *ibaca as *olgate-*ibaca. "t
was to act as the price #lanker bran in the port#olio. 8itto b% ,)) with 0im. 0t prices similar to
the low price challenger brans it took the battle right into their tur#. The market %namics
change. 9ithin a %ear, *olgate *ibaca manage to garner whopping &03 o# the market share in
the iscount segment an establishe *olgate6s supremac% once again. ,))6s 0im however
coul not match the success an was subse:uentl% withrawn #rom the market. Toa% not onl%
has *olgate;s #lagship bran grown, but *olgate *ibaca has risen to become the !th largest paste
bran in the countr% in volume terms a#ter *olgate 8ental *ream, +epsoent an *lose-<p (in
#act *olgate *ibaca is now =2 in some geographies). "t is interesting to note that *olgate *ibaca
became big without an% intensive communication support. "t relie more on trae level activities
an below the line strategies #or its success. ,owever the 2ourne% #or bran *olgate *ibaca has
2ust begun. ,aving come up this #ar, *olgate now aims to move *olgate *ibaca to the ne$t level
o# growth( hence a new strateg%.
The challenge is to build the brand without cannibalizing Colgate.
This case is intended for classroom evaluation and training of students and it does
refect any criticism of any sort or situation. (The original case has been prepared by
FCB Ulka Comstrat !!"#
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1. Industry Overview
"nia is still a nascent countr% in ental h%giene, with the ma2orit% o# the population still not
having access to moern ental care but rel%ing on substances like coal ash an neem sticks. "n
"nia, per capita toothpaste consumption stoo at '!g in 200&, which is amongst the lowest in the
worl, compare to >&0g an >00g in .ala%sia an ?ietnam respectivel%. Toothpaste en2o%s a
countr% wie penetration level o# &03. The penetration levels o# enti#rice in the countr% have
been on an upwar tren over the last #ew %ears riven b% strong improvements in toothpaste
penetration
Table 1.1@ Toothpaste +enetration
9ith the huge consumer base waiting to be tappe an the e$pecte rise in purchasing power as
the econom% picks up, oral h%giene in "nia ma% receive a #resh lease o# li#e.
. The Tooth!aste market
Aral h%giene continues to be uner aggressive competition, with sales increasing b% a moest
>3 in current value terms in 200B to Rs. 2,!00 crs. Toothpaste accounte #or a whopping 4>3 o#
value sales.
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refect any criticism of any sort or situation. (The original case has been prepared by
FCB Ulka Comstrat !!"#
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"ong term growth drivers
C "mproving penetration Through better istribution an conversion #rom other moes o# oral
care
C "ncrease usage "mprove per capita consumption through increase usage #re:uenc%
C +opulation growth an annual 1.&3 increase in population will help broaen the user base #or
oral care.
#. Segments in the Industry
+rice-base segmentation o# the toothpaste categor% An the basis o# price, the toothpaste market
can be broken own into two istinct categories@
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refect any criticism of any sort or situation. (The original case has been prepared by
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"ow $rice $oint Segment
The )ower +rice +oint segment accounts #or aroun 2&3 o# total categor% volumes This segment
o##ers goo value #or mone% an has seen its volume market share increase #rom 10.'3 uring
2000 to current levels.
The entire categor% is characteri7e b% intense competition in both the price segments.
Threats %rom smaller brands in the low !riced segment
Dmall an regional brans #rom the low price segment are e$pecte to per#orm well because
the% are o#ten close to the market, respon #aster to changes an are willing to learn #rom
mistakes. "nustr% anal%sts believe that the new threat will come #rom smaller pla%ers who have
embrace a i##erent kin o# business moel with a i##erent value proposition. These inclue
regional brans an private labels. Regional brans t%picall% take on well-known, establishe
brans b% pursuing a #lanking strateg% which can be o# two t%pes E geographical or nee-base.
"n a geographical attack, the challengers ienti#% regions where the opponent is unerper#orming.
The other #lanking strateg% is to serve un#ul#ille market nees. The smaller brans have also
starte elivering on the :ualit% #ront.
&. 'ey $layers
The toothpaste segment is largel% a two pla%er inustr%, *olgate +almolive 1 ,)) accounting
#or 403 o# the entire market
Table !.1@ *ompan% Dhare (?alue)
&.1( Colgate ) the dominance continues
*olgate has been present in the omestic oral care market #or the last '0 %ears an its oral care
brans en2o% strong bran e:uit% in the market. The compan% has traitionall% been the leaer in
This case is intended for classroom evaluation and training of students and it does
refect any criticism of any sort or situation. (The original case has been prepared by
FCB Ulka Comstrat !!"#
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the omestic oral care market. *urrentl%, it occupies a ominant position in the toothpaste
segment with a !43 market share in the omestic market. "ts relative market share is 1.& times
the secon largest pla%er. *ibaca was ac:uire b% *olgate in 1FF! #rom *iba /eig%. The
compan% toa% has two main brans in the toothpaste segment E *olgate an *olgate *ibaca.
-ace with tough competition #rom ,)) uring earl% 2000, *olgate mae a slew o# success#ul
new launches to protect its market share namel% *olgate ,erbal, *olgate /el 1 revitali7e
*olgate *ibaca Top (in the low price segment). The compan% has continuousl% relie on
innovations to sta% ahea o# the competition. "t launche > new innovative variants uring the
course o# -G0B. 1. *olgate 0ctive Dalt E 9hich capitalises on the traitional use o# salt #or oral
care. 2. *olgate 0vance 9hitening E9hich contains microcr%stals that polish ones teeth,
restores an maintains their whiteness. >. *olgate .a$-resh /el E 0n innovative gel-base
toothpaste with cooling cr%stals.
Dtrong istribution
The compan% has backe its proucts with a ver% strong istribution network. The compan%6s
istribution network covers F!0 irect accounts an >.4 million retail outlets. *olgate is the 2
n
most wiel% istribute prouct in the countr%. The compan% is t%ing up with initiatives like
H*houpal an 8isha to #urther strengthen its istribution network.
Tremenous bran e:uit%
Aver the %ears, *olgate has been able to evelop strong bran e:uit%. "t has been vote the IThe
.ost Truste BranJ in the countr% #or > consecutive %ears in the 0* Kielsen Bran H:uit%
Durve%.
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refect any criticism of any sort or situation. (The original case has been prepared by
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&.( *"" ) the challenger
"n the late 1F40s, ,inustan )ever use the novelt% element in gel toothpaste to make stea%
inroas into *olgate;s ominance in the oral care market. "ts gel toothpaste, *lose-<p helpe
,)) become the secon largest paste bran( posing a sti## challenge to *olgate. ,owever as the
novelt% o# gel toothpastes wore o##, ,)) renewe #ocus on its other bran +epsoent to help it
protect its tur#. "ts attempt at o##ering a low price bran 0im was not complete an the bran
was subse:uentl% pulle back a#ter launching it in earl% 2000
Both *lose <p an +epsoent have a combine market share o# >03 The current brans o##er
istinct propositions( *lose <p aresses the %outh with new bene#its an value-riven
propositions, whereas +epsoent is #irml% entrenche on the #amil% health plat#orm with variants
catering to oral health.
&.#( +abur ) ,rowth through ac-uisition
8abur has manage to grab a '.23 market share with the ac:uisition o# Balsara6s oral care
brans@ Babool, +romise an .eswak in aition to its own bran 8abur Re (targete to
capture consumers shi#ting #rom toothpower to toothpaste).
.( To! . /rands
..1 Colgate +ental Cream
*olgate 8ental *ream is the most wiel% istribute oral care bran in "nia has
a market share o# >!3 in value terms. "t was revitali7e in 200> with an
improve germ #ighting #ormulation. "ts anti-bacterial ingreient has been
booste to o##er superior germ #ighting e##icac%. These improvements come in aition to its
calcium an minerals #ormula that helps repair weak spots on teeth an locks in aitional
calcium an essential minerals to make teeth stronger than ever be#ore.
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refect any criticism of any sort or situation. (The original case has been prepared by
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.. Close01! 2ctive ,el
)aunche in 1F'&, *lose-up was the #irst gel toothpaste in "nia. "t
has since then unergone perioic relaunches. "n 200!, *lose-up was
relaunche with a bang. 0n this time it was packe with the power
o# ?itamin -luorie D%stem E a power#ul mi$ o# ?itamins, -luorie, .outhwash an .icro
whiteners, the per#ect combination o# ingreients #or #resher breath an stronger, whiter teeth.
*lose-up is now the #irst /el toothpaste with -luorie in "nian .arket. *urrent market share
stans at 1!3.
..# $e!sodent Com!lete 13
+epsoent, the secon o##ering #rom ,)) with a market share o# 113
was launche in 1FF> an was the #irst toothpaste with a uni:ue
antibacterial agent to aress the consumer nee o# checking germs
even hours a#ter brushing. +epsoent has alwa%s been regare as a
mother6s oral health care all% an has been associate with inculcating goo ental habits
amongst kis. *urrentl% the bran is championing night brushing habits amongst kis through its
latest T? commercial. The thrust is on making brushing at night a #un activit% #or kis. The
bran plans to continue with its initiatives to promote health% brushing habits.
..& Colgate Cibaca To!
*olgate *ibaca Top is currentl% the #ourth largest bran with &.'3
market share. (+lease see +age F - &.F #or etails)
... Colgate 4resh Energy ,el
The *ompan% launche new *olgate /el Toothpaste in 1FF1. *olgate -resh energ% contains ic%
cool gel which leas to mouth coolness an minerals which make
teeth stronger. "t has a market share o# >3. The *olgate -resh
Hnerg% /el avertising campaign launche in 2001 use an
innovative catch phrase E ITalk to .eJ an use television, outoor an online meia to connect
with the %outh. The compan% continue to buil on its highl% success#ul campaign an re-
launche it with a new #lavour in a transparent tube, a #irst #or the categor% in "nia.
This case is intended for classroom evaluation and training of students and it does
refect any criticism of any sort or situation. (The original case has been prepared by
FCB Ulka Comstrat !!"#
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Other brands
..5 2nchor
0nchor belongs to 0nchor ,ealth an Beaut% *are (0,B*), a part o# the 0nchor /roup (makers
o# 0nchor electrical switches). 0nchor #ora%e into the -.*/ market
with the launch o# 0nchor 9hite Toothpaste, which was positione as
"nia6s #irst British 8ental ,ealth Dociet% certi#ie 100 per cent vegetarian toothpaste, in 1FF'.
"n #act this proposition ha so strong a consumer-pull that b% 2002 it was the number three
toothpaste bran. "n 200B, 0nchor ecie to irectl% compete with *olgate 8ental *ream,
thereb% i##erentiating itsel# #rom the )++ segment. "t signi#icantl% upgrae its prouct bunle,
both in terms o# superior #ormulation (almost parit% to *8*) claims an b% the evelopment o#
an 0ll-roun +rotection sub bran. This is currentl% enorse b% 8ravi with strong T? support.
..6 /abool
Babool originall% a Balsara prouct was ac:uire b% 8abur last %ear. Babool strales the
econom% an herbal plat#orms. "ts natural toothpaste contains a%urveic
an meicinal bene#its o# the Babul tree, ;0cacia 0rabica6. 9hile Babool
still pursues an aggressive promo strateg% on all its DL<s, it has also upgrae its bunle ever
since the ac:uisition, b% putting the 8abur bran on its pack an signing up ?ivek Aberoi as a
bran 0mbassaor
..7 28anta
02anta toothpaste is an o##ering #rom the personal care ivision o# 02anta *lock .anu#acturing
*ompan%. 9ith aggressive pricing as its <D+, the compan% ecie to
o a Kirma in the toothpaste "nustr%. Ariginall% price at one-thir o# a
*olgate or a +epsoent, 02anta rewrote the rules o# the game #or oral care proucts. "t targete its
o##ering in the low price, mass-market segment.
..9 Colgate Cibaca To!
"n the %ear 2000, *olgate revitali7e *ibaca which was relaunche nationall% in the econom%
segment as ;0ll Kew *olgate-*ibaca Top. 9ith the launch, *olgate entere a new price ban -
the econom% segment.
Salient %eatures o% Cibaca Tooth!aste
C -irst econom% toothpaste #rom *olgate
This case is intended for classroom evaluation and training of students and it does
refect any criticism of any sort or situation. (The original case has been prepared by
FCB Ulka Comstrat !!"#
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C "nitiative to maintain leaership o# the growing low price segment an capitalise on e:uit% o#
*olgate.
C Revitalise #ormulation #or strong teeth an #resh breath.
C -eatures *olgate logo on the pack an tube.
5 Cibaca:s steady climb in market share
8espite relaunches b% 0nchor 1 Babool, *ibaca continues to strengthen its ominance o# the
)ow price point segment in 200B
6 The Task
The task is to provie a comprehensive communication strateg% to take %orward brand Colgate
Cibaca without cannibalizing mother brand Colgate. The strateg% shoul cover the #ollowing
areas -
1) Target 0uience
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refect any criticism of any sort or situation. (The original case has been prepared by
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2) *onsumer unerstaning
>) +ositioning
!) *ommunication an creative strateg%
&) .eia strateg%
;ote( Mualit% o# insights, anal%sis an recommene strateg% will be given weightage.
.eia strateg% an creative strateg% shoul onl% be irectional in nature. 8etaile meia plan
an creatives are not e<!ected as part o# this case stu%. 0ssumptions mae, i# an%, shoul
clearl% be spelt out in the proposal.
This case is intended for classroom evaluation and training of students and it does
refect any criticism of any sort or situation. (The original case has been prepared by
FCB Ulka Comstrat !!"#
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This case is intended for classroom evaluation and training of students and it does
refect any criticism of any sort or situation. (The original case has been prepared by
FCB Ulka Comstrat !!"#
Page 12 of 12
This case is intended for classroom evaluation and training of students and it does
refect any criticism of any sort or situation. (The original case has been prepared by
FCB Ulka Comstrat !!"#