In a hyper-competitive consumption-driven market like India, most virtual monopolies, from MarutiSuzuki to Nokia, have had to contend with steady erosion in market share over the years. Whilst the share of India's No 1 carmaker is today well below 50 per cent, the Finish handset manufacturer's leadership position is under constant threat from Samsung.
Against such a backdrop, one long-standing consumer brand has been not just holding on to its pole position but actually inching further head in its core category of oral care. In the first half of calendar year 2012, Colgate Palmolive India's market share in the toothpaste marketstood at 54.5 per cent, its highest since 1998, a rare instance of a market leader gaining new ground.
Aggressive marketing and a huge 32 per cent jump in advertising spend in the first quarter of fiscal year 2013 over a year ago coupled with a launch of new variants across consumer segments has helped the largely single-product company drive growth.
Analysts who met up with the company said the leadership team exuded confidence about its growth plans and medium to long-term strategy. Colgate's executive management team includes three women: along with managing director Prabha Parmeswaran, there are Sarala Menon, VP, customer service & logistics, and Rekha Rao, VP, marketing.
Colgate's India top team is publicity-averse - the company was unwilling to participate in this feature - and that may not be a bad thing for the brand. "The brand is not bigger than the leadership. Its leadership is anonymous yet the brand does exceedingly well in the market," says Jagdeep Kapoor, founder Samsika Marketing Consultants.
Unlike most virtual monopolies that typically have few competitors - think Google in internet search and ESPN in sports television in the US - Colgate's rise has been in a highly competitive market. The biggest threat to Colgate in India isHindustan Unilever LtdBSE 1.46 % (HUL), which has put its might behind two brands, Close-Up and Pepsodent.
The other MNC in the game is GlaxoSmithKline Consumer Healthcare with Aquafresh and Sensodyne. Then, there are a clutch of domestic players, with Dabur leading the way with three brands on the ayurvedic platform plus the Promise label that it had acquired from Balsara in the mid-2000s. Other local brands that keep the big boys on their toes include Vicco and Anchor.
If Colgate has been able to stay convincingly ahead of the market, it's thanks to its ability to segment a category (including toothbrushes and mouthwashes) in which product differentiation is notoriously difficult to achieve.
With at least 10 extensions to the flagship Colgate Dental Cream (including a kids' toothpaste and a whitening product), one mouthwash (Plax), and a wide range of toothbrush extensions (including one with a flexible head and a cheek and tongue cleaner as well as battery toothbrush), Colgate has been able to make oral care account for over 80 per cent of its total sales.
Analysts, however, warn that the HUL threat and forays like the first move by GSK in the sensitive teeth segment with Sensodyne - which forced Colgate to react with the Sensitive extension - will keep the leader on its toes. Also, if Procter & Gamble does eventually take the plunge into toothpastes by launching Crest in India, the competitive scenario could become more intense.
Against such a backdrop, one long-standing consumer brand has been not just holding on to its pole position but actually inching further head in its core category of oral care. In the first half of calendar year 2012, Colgate Palmolive India's market share in the toothpaste marketstood at 54.5 per cent, its highest since 1998, a rare instance of a market leader gaining new ground.
Aggressive marketing and a huge 32 per cent jump in advertising spend in the first quarter of fiscal year 2013 over a year ago coupled with a launch of new variants across consumer segments has helped the largely single-product company drive growth.
Analysts who met up with the company said the leadership team exuded confidence about its growth plans and medium to long-term strategy. Colgate's executive management team includes three women: along with managing director Prabha Parmeswaran, there are Sarala Menon, VP, customer service & logistics, and Rekha Rao, VP, marketing.
Colgate's India top team is publicity-averse - the company was unwilling to participate in this feature - and that may not be a bad thing for the brand. "The brand is not bigger than the leadership. Its leadership is anonymous yet the brand does exceedingly well in the market," says Jagdeep Kapoor, founder Samsika Marketing Consultants.
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The other MNC in the game is GlaxoSmithKline Consumer Healthcare with Aquafresh and Sensodyne. Then, there are a clutch of domestic players, with Dabur leading the way with three brands on the ayurvedic platform plus the Promise label that it had acquired from Balsara in the mid-2000s. Other local brands that keep the big boys on their toes include Vicco and Anchor.
If Colgate has been able to stay convincingly ahead of the market, it's thanks to its ability to segment a category (including toothbrushes and mouthwashes) in which product differentiation is notoriously difficult to achieve.
With at least 10 extensions to the flagship Colgate Dental Cream (including a kids' toothpaste and a whitening product), one mouthwash (Plax), and a wide range of toothbrush extensions (including one with a flexible head and a cheek and tongue cleaner as well as battery toothbrush), Colgate has been able to make oral care account for over 80 per cent of its total sales.
Other categories in the Colgate portfolio include the Palmolive range of personal care products (body washes and hair gels) and dishwashing paste brand Axion.
Colgate has backed its extended product range with robust distribution clout. The essentially single-brand company has one of the widest networks, touching 4.5 million retail outlets in India."Colgate's sustained distribution strength, coupled with product innovation and creation of sub-categories such as mouthwash and sensitive oral care have helped it drive growth aggressively, explains Gautam Duggad, vice president, equity, at Motilal Oswal.Analysts, however, warn that the HUL threat and forays like the first move by GSK in the sensitive teeth segment with Sensodyne - which forced Colgate to react with the Sensitive extension - will keep the leader on its toes. Also, if Procter & Gamble does eventually take the plunge into toothpastes by launching Crest in India, the competitive scenario could become more intense.
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