Fore school of Management, New Delhi Post Graduate Diploma in Management
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Telecom Industry Analysis, 2020
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- Instructions: a. This question paper contains 5 Pages b. Possession and use of cell phone is prohibited c. Only Non-Programmable calculator can be used
- g. Marks are indicated in the right hand parenthesis against each question. Part A
- Please answer the following questions (Q1, 2 and 3) based on the Caselet
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FORE School of Management, New Delhi Post Graduate Diploma in Management (FMG 28/IMG 13 /FM 02/ FPM) End Term Examination Term-4* (2020-2021) Course Name: Advertising Brand Management Time: 2 Hours Max Marks: 100 Instructions: a. This question paper contains 5 Pages b. Possession and use of cell phone is prohibited c. Only Non-Programmable calculator can be used d. Be brief and to the point in the response e. State assumptions made, if any f. Answer all questions g. Marks are indicated in the right hand parenthesis against each question. Part A More than 214 years ago, a New York City man named William Colgate made a living making and selling soap and candles. Today, his name makes up half of that of a multi-billion-dollar consumer goods corporation known as Colgate-Palmolive. Colgate-Palmolive Company is an American multinational consumer products company headquartered in New York City, US. It specializes in the production, distribution, and provision of household, health care, personal care, and veterinary products. They have a strong presence in the following categories: soaps (one being Palmolive itself) toothpaste and other oral care products (under the Colgate brand) and, pet food (Hills). The oral products market in India consists of toothpaste, toothbrush, tooth-powder, and mouthwash. According to IRS data (2018), 66 percent of Indian households use toothpaste, 24 percent use toothpowder, and 18 percent are non-dentifrice (e.g. mouth wash) users. The toothpaste market in India is estimated at Rs 6,000 crore with a CAGR of 19%. The market over the years has evolved into newer and different segments like gel, sensitivity, whitening, and so on. India’s per capita consumption is reportedly almost one-fourth that of the US, and less than half that of other emerging markets. Toothpaste has a high penetration of around 78 percent in urban India. Colgate is the overall market leader, with a share of 55.9 percent. In India Colgate Toothpaste brand has come a long way since the days when a single tube would cost customers 14 annas. Globally this 200+-year-old brand has added zing and freshness in many forms over the years, including through its packing and some of its brand elements. “ Brush your teeth the Colgate way, every day” ends the advertisement’s long copy from a 1939 print ad for Colgate. Colgate’s advertising has changed over the years; long copy has given way to celebrities showing off their pearly whites or getting advice from the experts. Over the years Colgate has held a very strong position in the oral care category in India with close to 56% market share (HUL (Pepsodent etc.) – 17%; Dabur – 11%; Patanjali – 11%; GSK (Sensodyne) – 3%). Experts attribute the success to the company’s efforts of continuously being relevant and constantly evolving their flagship brands as well the range offered. For example, while launching Colgate for kids they had upped the innovation on the packaging to engage its younger customers with contests and collectibles. For many of its flagship brands, its roster of celebrities now includes YouTube stars like Shraddha Sharma, alongside more standard favorites Virat Kohli and Ranveer Singh. Further, new media channels like digital are now increasingly becoming an integral part of the communications mix. For example, to connect with youth, a core segment of their TG for Colgate Plax, they leveraged the augmented reality medium for heightened consumer engagement and also partnered with the Sunburn Festival and Mood Indigo, popular youth-centric platforms, to create brand awareness and relevance. T he company engages in frequent line-optimizations to add or remove variants, product forms, and extensions that are not just exciting and relevant for their core audiences but also attract younger and diverse audiences. Today, in addition to a wide range of toothbrushes, mouthwashes, whitening and expert care products, Colgate has extended the brand to many other newer variants and forms of oral care, including everything from the regular plain white paste and flavoured toothpaste for kids to Active Salt, Charcoal and Sensitive Pro-relief mouth wash. The company clearly has a good pulse of the consumers in India as many of its brands “Are made in India and for India.”. For instance, Colgate Vedshakti and Colgate Pain Out, are indigenously developed ayurvedic remedy for quick pain relief. Sometime in early 2019, Colgate embarked on the journey of evaluating its flagship product Colgate Strong Teeth in one of the biggest moves for the oral-care major's 'bread-and-butter' brand since the 1950s. The change involved a new packaging and new formulation with 'Amino Shakti' to make the product more effective. Thus, moving the largest selling toothpaste in the country to the newly coined 'Andar se Strong' platform. It was a complex task for the ubiquitous brand. Ram Raghavan, Managing Director, Colgate-Palmolive (India) shares “It was an India-first shift, and the company was very clear in the strategy that India would lead the way.” He adds, “Until that point, we always spoke of problems (cavities), but with the shift to strong teeth, the conversation has moved to a more proactive solution.” The ‘Andar se Strong’ campaign had real life stories of Deepika Padukone (with her mom). Also, its recently launch Colgate Vedshakti, which caters to the growing consumer demand for products based on natural ingredients, has become an important part of the brand’s portfolio. As per company data, Colgate Vedshakti today is a Rs 100 crore brand with 10 crore consumers using it and is the 2nd highest distributed brand in Maharashtra, Tamil Nadu, Andhra Pradesh, and Karnataka in the naturals/ ayurvedic category of toothpaste. Despite the strength of the brand and Colgate’s focus on constantly evaluating its oral care product range, Close-Up, a strong challenger, changed the way toothpaste looked and felt in the mouth. High on freshness ingredients, the transparent look and the youth-centric approach gave Colgate some sleepless nights until they launched Colgate Gel and soon Colgate MaxFresh with its ultra-fresh cooling crystals and transparent packaging. Close-Up gained a significant share of the market, forcing Colgate to launch a similar product and alter its strategies for some time. Colgate has over the years tried to fight the sub-categories in oral care by creating a portfolio of brands catering to niche consumer needs. It is clear that the other players, Unilever(Pepsodent), GSK(Sensodyne), and P&G (Oral-B), are not very keen to take Colgate head-on in its main product line. Hence, they have started carving smaller segments for themselves and, with a focused strategy, are managing to remain leaders in their respective sub-segments. Through a series of extensions, Colgate has increased its share of the market from 52.4 per cent in 2017 to 55.9 percent in 2018. While the extension strategy seems to have worked in retaining and marginally growing its share, analysts wonder whether, in the long run, this strategy will be effective. In other countries, Colgate has other brands in the oral care category, such as Elmex and Dentagard, which are very well positioned in some of the peculiar and niche oral care needs. But in India, it has only Colgate. Please answer the following questions (Q1, 2 and 3) based on the Caselet Question 1: With competition set to intensify in the main oral care category, and smaller players carving out their niches and sub-segments, is Colgate risking its main flagship brand and thereby likely to lose the consumer mindshare battle in the coming years? Give a detailed account of your judgment (Marks 25) Question 2: Has the company done enough to let Colgate remain relevant for its target audiences? Substantiate your answer with alternatives, if needed (Marks 25) Question 3: Develop a detailed sales promotion campaign for Colgate Vedshakti. What are all the factors that the company would have to consider to develop an effective campaign? (Marks 25) Part B Question 4: Pick any one brand of your choice (mass brand and not from the oral care category) and explain how the brand has been managed using any two models that facilitate brand management (Marks 25) Download 1.46 Mb. Share with your friends:
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