Q1. MyDentist a nationwide chain of Dentists has been going through a bad phase of late. In order to get back on track, it has rebranded itself as “Sabka Dentist”. Do you think this strategy will help it regain its market? What other steps should be taken by them?
Q2. “Rumors”, the 3rd largest brand in India in the Furnishing Fabrics segment is planning to undergo a change. Known for its high end range of Fabrics, for the first time the brand is planning to come out with a low priced range of fabrics as a part of its latest collection to be launched next month. Market is skeptical that this strategy is a wrong move and might backfire. What are your thoughts about the same? How should Rumors go about it?
Q3. The country’s largest oral care company, Colgate-Palmolive, will need to ramp up its herbal portfolio in the next few quarters. It reported a three per cent decline in volume growth for the March quarter 2017. While in line with estimates and lower than the 12 per cent decline in volume growth reported for the December 2016 quarter, this does not bode well for the company.The trend, says analyst for fast-moving consumer goods appears to be in favour of companies pushing herbal oral care products.
“Patanjali has been growing its share in oral care, where it said it had achieved market share of 14-15 per cent in toothpastes. Dabur has seen a share gain of one per cent (110 basis points) for the March quarter, indicating there is traction for its products, which are based on Ayurveda.
Colgate, on the other hand, saw market share fall sequentially from 55.6 per cent in the December quarter to 55.1 per cent in the March one.
Cibaca Vedshakti, herbal toothpaste it launched in August 2016, would not be the last thing in its natural’s portfolio. So far, Vedshakti has been doing well. Soon, there will be other natural products from Colgate as they continue to innovate in the category. Colgate has been working on its natural portfolio for nearly two years. It first responded to the herbal revolution, kicked off by Patanjali, in June-July of 2015 when it launched Active Salt Neem toothpaste, its first indigenously developed one and followed it with launching variants containing clove oil and charcoal respectively.
The year 2016 saw the company launch its second indigenously developed toothpaste in Cibaca Vedshakti, with additional ones supporting its clove oil portfolio (sensitive clove toothpaste). But, for all the effort in the herbal category, the overall toothpaste share for Colgate has declined 220 basis points in the past year and three months.
a. What strategies should be followed by Colgate in order to protect its market share?
b. What strategies should be followed by Patanjali in order to dent Colgate’s market share more?