BUSINESS SPECIAL ...................The Great White Challenge

The Great White Challenge 

For years, it has been smooth sailing for Colgate, still the leader by a wide margin in the oral care category. But the past few years have placed the odd iceberg or three in the shape of hyper-specialised competitiors, all trying to make a dent in its hull

    For the longest time, toothpaste was all about cleaning the pearly whites and the dazzling 'ring of confidence'. Colgate was and still is the clear leader, registering a 56% volume market share for Jan'13-Sep'13. There have been periodic attempts to dethrone it, but finally the competition appears to be getting its gameplan right. The doughty toothpaste brand is starting to get flanked by new and nimble players who focus on recently acknowledged specialist needs like sensitivity or bleeding gums. This marks a paradigm shift in the segment.
    Dr Nagesh Rao, president and director, Mudra Institute of Communications admits, "Till recently, we did not acknowledge how different types of toothpaste helped us. In many cases, price was the deciding factor." One brand worked for the entire family. With increasing awareness, urban Indians have a better understanding of diet and its impact on teeth. They are willing to pay for preventive attention. "A typical urban family is nowadays buying different toothpastes as each member needs something specific, which broadens the category and allows for newer products", says Dwarika P. Uniyal, associate professor (marketing and retailing), Indian Institute of Management, Kashipur.
    The overall toothpaste market is pegged at approximately 5900 crores. Sensodyne leads the 525 crore sensitivity segment with a 27% share. All the major players are upping the ante to identify and occupy niches in an overcrowded market. That's no exaggeration, especially in urban India, where toothpaste constitutes a saturated category with a penetration of 99%, as per Vinay Khamkar, group business director, IMRB-Kantar WorldPanel. Driving category growth are basic whites, gel and specialist needs, and it is the latter that has grown the heaviest — almost double in three years — from 11% in 2010 to a whopping 22% in 2013. Explaining the trade-off in launching offerings like Sensodyne and Parodantox, Jayant Singh, executive vice president - marketing, GSK Consumer Healthcare says, “There is no dearth of general purpose toothpastes and Indians did not need one more product in the category.”
    Initially Sensodyne was test marketed in the South before launching pan-India. Shares Singh, “Data showed 17% in India talked about a short sharp sensation in their gums or teeth, but only 4% visit the dentist and that only when their dental concern is severe.” Thanks to lessons from other markets GSK realised India was ready for its specialist solution. Aggressive marketing and distribution have made Sensodyne a formidable 100 crore plus brand since its launch in 2011 and it is expected to touch 150 crores, according to industry sources.
    Calling it a wedge-in-the-market strategy, marketing consultant Harish Bijoor says, “The effort is to hit out at the leader with specific and focused efforts and then expand.” As more specific needs are being addressed, the market leader (Colgate) needs to be watchful, he adds.
    Even as Sensodyne took the first step in actively creating the sensitivity category, Colgate too has been expanding its portfolio to include Active Salt, Max Fresh and Colgate Total along with the recently launched Visible White. With two out of five Indian consumers suffering from tooth sensitivity, it is an emerging concern area, says a company spokesperson.
    Many countries have seen an inflection point where the advanced care segment rapidly became significant. "We are seeing a similar trend in India" according to HUL's spokesperson. Its investment in the segments is disproportionately high because “we want to make consumers aware of these products and the benefits they offer so they can choose the best for his or her needs”, adds the spokesperson. The portfolio includes Pepsodent G, which stops gum bleeding, Pepsodent Expert Protection Pro-Sensitive that claims instant relief from sensitivity as well as to repair teeth.
    The job of building awareness around specialist needs is done through advertising, as well below-the-line initiatives like sampling, retail activations etc. The advertising is kept basic and educational. For instance, Sensodyne decided to bring the dentist to the living room of consumers through its campaign, where real practicing dentists were shown explaining the condition and sharing their experience with the brand.
    The growth of modern trade has helped niches. Typically, oral care has a high incidence of tunnel shoppers : people who aren't very involved with the category. Says Rahul Saigal, president, Geometry Global, “Since modern trade lends itself to product discovery, brands that want to interrupt can do a lot. Over the last couple of years, we've seen a lot of activity in the toothpaste category that includes new launches and aggressive in-store campaigns." Marketers invest disproportionately in modern trade given that it is most conducive for inducing new category adoption and brand switch.
    Colgate for instance has been holding Oral Health Month (OHM) annually in partnership with the Indian Dental Association (IDA). The chill test activations by Sensodyne have worked in creating buzz as well as sampling opportunities. The aim was to educate the consumer about the condition through a demonstration, and aid his knowledge of sensitivity. Pepsodent ran a campaign where consumers from anywhere in India could call a toll free number to address their query about oral health to trained experts who guided them on good hygiene practices and helped identify the most suitable product.
    Says Dheeraj Sinha, chief strategy officer, Grey India, "As a country we are on the upgradation path and the game will be about premiumisation." Going forward more specialised segments will open up as the generic product user base shrinks. The shift from generic toothpastes to special need pastes is a futuristic move in that direction.
Amit Bapna ETBE131211