After a period of stagnation, Colgate Palmolive India started growing with force in last fiscal and the upward trend seems positioned to continue for this fiscal year as well. The key to success is the proper implementation of the conventional marketing concepts.
The fundamental 4P marketing concept (Product, Price, Place, Promotion) has again proved its relevance. Colgate Palmolive India Ltd. bet on it and is now reaping the benefits. In fiscal year 2000-01, Colgate's growth exceeded that of the oral care market and the overall performance achieved defied the downward market trend. Although Colgate faced intense competition, the company has been an unquestionable market leader in its principal business _ manufacturing and marketing of oral care products.
However, two years ago Colgate was a brand which lacked freshness and aggressiveness in its marketing efforts. Somehow the company remained sluggish in the marketing warfare _ it was a follower rather than a leader _ reactive rather than proactive in introducing smart strategy. The year 1999 ended with a net profit of Rs.456.4 mn as against Rs.801 mn in the previous year (a fall of almost 43 percent). Fortunately, a new management team has given a new look to the company. Colgate Palmolive India Ltd. decided to distinguish the two strong equities in India: Colgate _ which is synonymous with orals are _ and Palmolive _ the powerhouse brand in personal care, and to submit them to proven marketing principles and guidelines.
At first, Colgate tried to reorganize its product portfolio in a more methodical manner. The company introduced a wide range of products but with very clear positioning. In oral care, Colgate identified four categories _ premium, freshness, popular and economy. Further, it demonstrated strong focus within these categories _ on only those products that could give results. To adhere to this policy, Colgate even pulled out four variants _ Colgate double protection, calciguard, fresh mint and fresh strips. Having clarified the main points of its product strategy, Colgate went on with a series of differentiated products. In whichever segment the need gap was felt, a launch to cash on that gap was planned. Wherever sluggishness was felt, a relaunch took place to reposition the product over the product life cycle. For example, the growth in the toothpaste segment during the year was driven by: the launch of "Colgate Herbal" toothpaste based on a combination of traditional Indian herbs, targeted at semi-urban, rural areas, priced cheaper than "Colgate Dental Cream"; the launch of "Colgate Cibaca Top" targeted at the lower end segment; and the revitalization of the flagship brand "Colgate Dental Cream".
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