Case Study On Colgate

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PATANJALI’S “DANT KANTI” TOOTHPASTE IS THE NEXT BIG THING Dental problems are the most severe problems which affect body’s system very badly and leaves body good for nothing as intake of eatables will be low during dental problems. When we talk about a product it is necessary to look at the ingredients of the product and see the origin of the product that from where the product has been extracted. As in this era of technology and modernity we want to get rid of the problems as soon as possible and in the way to this people adopt the solution which provides relief fast but we would recommend you to make you and your relatives schedule in such a way that they do not fall for any problem especially dental problems. Our herbal product Patanjali…show more content…
Toothpaste sales volume growth, which hovered around 11 per cent two years ago, is now down to one per cent, Colgate's slowest rate in a decade. Colgate, for the record, derives bulk of its India revenues (Rs 3,982 crore for the financial year 2014-15) from toothpastes, which means that sales volume growth in this category is critical. A slide in this segment hardly bodes well for the company. Colgate, in fact, has consistently lost volume growth in toothpaste sales over the last two years, from 11 per cent in the December 2013 quarter to seven per cent in the March 2014 quarter, five per cent in the June, December 2014 and March 2015 quarters, three per cent in the June and October 2015 quarters and one per cent in the December 2015 quarter. The drop quite clearly has been dramatic. While Colgate remains the leader in the Rs 7,000-crore (Rs 70 billion) toothpaste market with a market share of 57.3 per cent for calendar year 2015, the brand has been hard hit by the actions of its rivals, notably, Patanjali, a brand that has scaled dizzying heights in a remarkably short span of time and has drawn consumer as well as investor…show more content…
Despite the volume slowdown, the company did not cut prices. We believe the industry will face stiff competition from new entrants, such as Patanjali, which can have a sizeable impact on Colgate among other companies. Colgate has a bigger worry today among FMCG companies. Consumers are clearly opting for natural/ ayurvedic products in oral care, which is something Colgate did not quite anticipate. The manner in which Patanjali has grabbed share is a clear threat for Colgate and something it will have to fend off in the future. Patanjali's Dant Kanti toothpaste, considered to be a best-seller in its category, is estimated to be a brand worth Rs 300-crore (Rs 3 billion) today, according to industry sources. And the company says it is eyeing a turnover of Rs 500 crore (Rs 5 billion) for Dant Kanti in the future; the key selling points will be quality and affordability say experts tracking the market. As if this were not all, old rival brands such as Dabur's Red toothpaste and Sensodyne from GlaxoSmithKline Consumer at the premium end of the market are also snapping at Colgate's

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