 "An Oral-B toothpaste? Colgate must be worried")
Oral B’s Smile India movement, launched by Madhuri Dixit, promises to protect a billion valuable Indian smiles. But that surely doesn’t include its competitors, especially, Colgate.
An Edelweiss report says Procter & Gamble has done well with its toothbrush segment and might soon foray into the toothpaste segment as well with its popular brand Oral-B. It could also use brand Crest, but Oral-B looks more likely. P&G plans to invest Rs 1,000 crore in manufacturing and distribution network across product line in the next two years and wants to increase focus on India.
[caption id=“attachment_274950” align=“alignleft” width=“380” caption=“If P&G gets into the toothpaste market, Colgate will be the most affected.”]  [/caption]
But Colgate is also not far behind. It roped in Mahesh Bupati, Rahul Bose and Anushka Sharma for its latest ad campaigns and is spending aggressively on marketing its products. In order to capture the youth’s attention it got Telugu super star Allu Arjun as the new brand ambassador for Colgate MaxFresh. But it must be cautious as it has lost 300 bps (100=1 percent) of market share in the last two years to P&G’s Oral B and would not like to repeat a similar fate in toothpaste category too.
Colgate is the market leader in the toothpaste category and globally has three times the market share of the next player, says the Edelweiss report. Not only in India, Colgate has earned handsome market share in Brazil, China, Russia and Mexico. So given the brand value Colgate enjoys, P&G might gain its share not at the cost of Colgate but of other players in the market.
Edelweiss says P&G generally targets one category at a time. HUL just gets 4 percent of its revenue from toothpaste. So if P&G gets into the toothpaste market, Colgate will be the most affected.
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