The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of th...
Toothpaste industry in india.
1. Submitted By-
Deepak Singh Negi
Amity Business School
deepak2009negi@gmail.com
MBA-(General), Sec-A
2. INTRODUCTION
Earlier in India oral hygeine was the domain of local
home made ayurvedic powders or natural herbs. The
history of toothpaste in India can be traced back in
year 1975.Now the awareness regarding oral hygeine
in Indian society has increased with the different
brands of toothpaste.
3.
4. Opportunities for Toothpaste
Industry In india
In India, oral care market offers huge potential as
penetration and per capita consumption of oral care
products is very low. However, rising per capita income
and increasing awareness is driving demand of oral care
products. Consumers have started switching to value-
added toothpastes like gels, mouth washes, and teeth
whitening products. In rural areas, consumers are
switching from toothpowders to toothpastes.
5. INDUSTRY OVERVIEW
Total market of 750 crores.
Growth rate of 18.6%
Per capita usage mere 85 gms per person.
Major player – Colgate Palmolive and
Hindutan uniliver
6. GROWTH PROSPECTS
Increased at a compound growth rate of 6.6%
between 2004-09
Rising income level i.e increasing purchasing
power of consumer
Large domestic market with population over a
billion
Untapped rural market
7. TOP TEN TOOTHPASTE BRANDS
COLGATE (Coalgate Palmolive Ltd.)
PEPSODENT (Hindustan unilever)
CLOSE UP (Hindustan Unilever)
SENSODYNE (GlaxoSmithKline)
AQUAFRESH (GlaxoSmithKline)
ANCHOR (Anchor health & beauty care Ltd.)
DABUR RED (Dabur India)
BABOOL (GlaxoSmithKline)
MESWAK (GlaxoSmithKline)
VICCO BAJRADANTI (Vicco Laboratories)
9. GROWTH RATE
Growth rate of 18.6%
Registered a compound growth rate of 6.6% between
2004-09
Changing spending pattern – with a increase in
purchasing power, there is a upward trend in the
expenditure incurred upon FMCG.
Changing profile and mindset – People look for
“MONEY FOR VALUE” rather than “VALUE FOR
MONEY”. Switching from economy to premium
brands
10. MAJOR PLAYERS
Colgate – Palmolive Ltd. (Market Share- 47.3%)
Hindustan Unilever Ltd (Market share- 30%)
Dabur India Ltd. (Market Share- 7.2%)
Other companies like Vicco, Patanjali, Promise etc.
11. Top 5 Brands - Market Share (2009)
Colgate Dental Cream 34%
Close-Up 14%
Pepsodent Complete 10 11%
Colgate Cibaca Top 5.7%
Colgate Fresh Energy Gel 3%
Other Brands 32.3%
13. Price-based Segments
Regular Segment: 100 gm: Rs 25-30
Low Price Segment: 100 gm: Rs 14-20
The Lower Price Point segment accounts for around
25% of total category volumes
14. INTERNAL EXTERNAL
SWOT
Analysis of the Toothpaste Industry
15. Strengths->
Low operational costs.
Presence of well known brands.
Presence of established distribution network.
S
16. Weakness->
Low export level.
Low scope of investing in technology and achieving
economies of scale.
Me-too products which illegally depicts the label of
the established brands.
W
17. Opportunities->
Untapped rural market.
Purchasing power increase.
Low Dentist Population ratio 1:35000
People being aware of dental health.
Penetration level has increased with cable TV,
internet and FM radio stations.
O
22. QUESTIONNAIRE
Q1 Which particular toothpaste brand is generally
demanded by customers?
Q2 Which of these brands of toothpaste have customers
asked in the past or are currently demanding?
Coalgate
Pepsodent
Dabur Red
Close Up
25. Q5 Do you tell your customers about a certain brand to
purchase?
Yes
No
Q6 Which of the following brands do you always prefer
to customers?
Coalgate
Pepsodent
Dabur Red
Close Up
Babool
Sibaka
26. Miswaak
ViccoTermeric
Q7 What are the other variants these products have?
Coalgate
Pepsodent
Dabur Red
Close Up
Babool
Sibaka
Miswaak
ViccoTermeric
27. Q8 Where do u prefer buying brand from?
Distributers
Dealers
Agency
Wholesaler