Rural Marketing Strategy by Colgate
A
Report
On
Rural Marketing Strategy by Colgate
By:-
Pulkit Garg (F019)
Rohit Ginoria (F022)
Sakshi Goyal (F026)
Siddharth Pandey (F039)
Raina Shah (F050)
Shrutkirti Vashisht (F055)
INTRODUCTION
From a modest start in 1937, when hand-carts were used to distribute Colgate Dental Cream Toothpaste, Colgate-Palmolive (India) today has one of the widest distribution networks in India – a logistical marvel that makes Colgate available in almost 4.93 million retail outlets across the country.
The Company has grown to a Rs. 2805 crore plus organization with an outstanding record of enhancing value for its strong shareholder base. The company leads the Rs.5200 crore Indian toothpaste market by holding 53.2% of the market share. This report details about the strategies that Colgate adapted in order to expand its market share.
RURAL MARKET SCOPE IN INDIA
According to the FDI World Dental Federation, in rural areas of India, the penetration of oral care products is just one third of that in urban areas. Here people predominantly clean their teeth with natural items like twigs of neem tree, salt and ash. One can conclude that a tremendous opportunity lies in the oral care market in rural India. The Accenture report gives several indications, including increase in procurement prices resulting in greater purchasing power of rural population allowing consumers to buy discretionary goods. Between 2009 and 2012, spending in rural India reached US$69 billion, significantly higher than the US$55 billion spent by urban populations. Rural India accounts for about 50 percent of India’s GDP and nearly 70 percent of India’s population.
STRATEGIES ADOPTED
Colgate adopted the following marketing strategies for their low end product, Cibaca Top through which they entered rural segment:
1. ‘Sampark’ – Promotion Strategy
Sampark – a specialist in rural advertising, was hired by Colgate to promote their product in the Indian
Report
On
Rural Marketing Strategy by Colgate
By:-
Pulkit Garg (F019)
Rohit Ginoria (F022)
Sakshi Goyal (F026)
Siddharth Pandey (F039)
Raina Shah (F050)
Shrutkirti Vashisht (F055)
INTRODUCTION
From a modest start in 1937, when hand-carts were used to distribute Colgate Dental Cream Toothpaste, Colgate-Palmolive (India) today has one of the widest distribution networks in India – a logistical marvel that makes Colgate available in almost 4.93 million retail outlets across the country.
The Company has grown to a Rs. 2805 crore plus organization with an outstanding record of enhancing value for its strong shareholder base. The company leads the Rs.5200 crore Indian toothpaste market by holding 53.2% of the market share. This report details about the strategies that Colgate adapted in order to expand its market share.
RURAL MARKET SCOPE IN INDIA
According to the FDI World Dental Federation, in rural areas of India, the penetration of oral care products is just one third of that in urban areas. Here people predominantly clean their teeth with natural items like twigs of neem tree, salt and ash. One can conclude that a tremendous opportunity lies in the oral care market in rural India. The Accenture report gives several indications, including increase in procurement prices resulting in greater purchasing power of rural population allowing consumers to buy discretionary goods. Between 2009 and 2012, spending in rural India reached US$69 billion, significantly higher than the US$55 billion spent by urban populations. Rural India accounts for about 50 percent of India’s GDP and nearly 70 percent of India’s population.
STRATEGIES ADOPTED
Colgate adopted the following marketing strategies for their low end product, Cibaca Top through which they entered rural segment:
1. ‘Sampark’ – Promotion Strategy
Sampark – a specialist in rural advertising, was hired by Colgate to promote their product in the Indian