The likely entry of the world?s largest consumer goods company, Procter & Gamble (P&G), into the R4,500-crore branded oral care sector in India is creating ripples.
With P&G getting set to launch either its Crest or Oral-B toothpaste brand in India, rivals Colgate-Palmolive India, the largest player with a 52% market share, and Hindustan Unilever (HUL) are bracing up with new marketing and promotion plans.
P&G India is now conducting a pilot project for the two brands near Pune, prior to a formal launch, a person with knowledge of the development said. Through the acquisition of Gillette in 2005, P&G sells toothbrushes under the Oral-B brand in India. ?In some markets such as Brazil, P&G sells toothpastes under the Oral-B brand,? the person said on condition of anonymity. ?The company may either introduce its Oral-B toothpastes or it may opt for Crest, which is the biggest oral care brand in the US.?
A P&G spokesperson told FE that the company ?will not comment on speculation?.
?P&G?s foray into the branded toothpaste is in line with the company?s renewed focus on Indian markets,? said an analyst with the domestic brokerage firm in Mumbai. ?Both Crest and Oral-B are very strong global brands. In fact,Crest is the largest selling brand in the US.?
Colgate India, which, so far, has not been too aggressive on the publicity front, has roped in tennis star Mahesh Bhupathi and film star Rahul Bose as brand ambassadors for its flagship brand Colgate Total. HUL, which has around 26% market share, is also betting big on star power to promote its flagship brand Pepsodent. At present, HUL is beaming a high-voltage television campaign featuring cine star Shah Rukh Khan to sell Pepsodent in domestic markets.
?To sustain our leadership, we are chalking out a three-pronged strategy, which includes, innovations, innovative integrated marketing plans and oral care awareness programmes,? Rekha Rao, vice-president-marketing Colgate-Palmolive told FE.
?We have opted for SMS campaigns on mobiles to promote our brand ?Colgate Active? featuring film star Sonakshi Sinha. We see a big opportunity for growth in driving the penetration of the oral care category. With around 35 % of people still not using toothpastes, it offers us a huge opportunity.?
Experts say competition has shaken up the market leader over thirty years, Colgate-Palmolive India. ?The company faces stiff competition from existing players such as HUL and Dabur, too. ?Dabur?s overall market share now stands at 15% up from 10% two years ago,? an industry analyst from a domestic brokerage firm said.
As part of its oral care awareness programme, Colgate-Palmolive recently rolled out Oral Health Month and dental check-ups across the country. ?This year, we have kicked off a new initiative called ?Adopt a School? where school children will act as as little dentists to spread the message of oral care,? explained Rao.
Nitin Mathur, FMCG analyst with Espirito Santo Securities, said Colgate?s future growth in toothpaste will be driven by increase in penetration in usage and new products.
Colgate has already increased its ad spend in the second quarter to fight competition. ?While the oral care portfolio registered healthy volume growth during the quarter, increased competitive activity coupled with increased brand investments resulted in higher advertisement and promotion spends during this quarter,? Pritesh Chheda and Sweta Jain of brokerage Emkay Global Financial Services said in a note on October 31, 2011.
Last year, GlaxoSmithKline Consumer forayed into the sector by launching Sensodyne, while Future Group launched its toothpaste brand Sach.