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Internal Assignment Applicable for
SEPTEMBER 2018 Examination
Course: Brand
Management
Colgate Case:
The brand Colgate has been one of the most trusted brands for decades.
It is not only the older generation which grew up with Colgate, it is a first
brand, even for the young, when it comes to oral care. The brand has faced
bursts of competition from time to time and has fought back effectively to
regain market share. In the 1960s and 1970s, Forhans was the challenger brand
but it is completely forgotten today. Binaca, which later became Cibaca and
finally got taken over by Colgate, was another challenger. However, maybe
because of the dominance of Colgate in India, this category has a fewer number
of brands than, say, soaps. Given that neither soaps nor toothpaste have any
technological barriers to entry and most entry barriers are created by
marketing muscle, one would have expected to see many more brands in the fray.
Despite the strong brand and Colgate’s focus on oral care, in the late 1980s
Close-Up changed the way toothpaste looked and felt in the mouth. High on
freshness ingredients, the transparent look and the youth-centric approach gave
Colgate some sleepless nights at the time. Close-Up gained a significant share
of the market, forcing Colgate to launch a similar product and alter its
strategies for some time. Colgate has regained its share since then, but
Close-Up continues to hold a majority share in the gel category, with Colgate
Gel remaining a distant second. Unilever also attacked Colgate on the ‘healthy
teeth’ platform with Pepsodent, thereby attacking on two fronts. Currently,
despite Colgate accounting for about 55 per cent share of the toothpaste
market, Pepsodent and Close-up are still sniping at its heels with intermittent
attacks.
Oral products market in India
The oral products market in India consists of toothpaste, toothbrush,
tooth-powder, and mouthwash. According to IRS data (2011), 66 per cent of
Indian households use toothpaste, 24 per cent use toothpowder, and 18 per cent
are non-dentifrice users.
The toothpaste market in India is estimated at Rs 6,000 crore, growing
at 19 per cent y-o-y. The broad segments are:
Germ and Tooth Decay: This is the biggest segment; Colgate gets its
major share from this segment. Of late, Pepsodent has begun attacking this
segment with its Germicheck variant.
As per a recent media report, more than half of Colgate’s overall share
comes from Colgate Strong Teeth, which competes in this segment (and the focus
of Pepsodent’s Ad).
Sensitivity: This is the fastest growing segment, already at Rs 950
crore, and is growing at 30-40 per cent a year. GSK’s Sensodyne has a slight
lead
Gel: The second biggest segment (Rs 1,500 crore) and the only one where
Colgate significantly trails the leader Close-Up (60 per cent market share)
Besides the direct attack from Pepsodent, entry of a large international
player like Oral B has further intensified competition in the general
toothpaste category. Brands such as Sensodyne and Paradontax have come in with
aggressive marketing strategies and have created small sub-categories for
themselves, possibly at the cost of Colgate. Colgate responded with Colgate
Sensitive but Sensodyne still has a larger share of the sensitive toothpaste
market.
Colgate has over the years tried to fight the sub-segments through a
sub-branding strategy and has launched sub-brands such as Colgate Gel, Colgate
Sensitive, Colgate Herbal, Colgate Active Salt and Colgate Total.
Their efforts are therefore to slowly grow these categories as well as
their shares in the market. While larger players such as Unilever are trying to
grow the market and capture shares, players such as GSK have created a niche
for themselves in the sensitive toothpaste market. Through a series of
extensions, Colgate has increased its share of the market from 52.4 per cent in
2011 to 54.5 per cent in 2012. While the extension strategy seems to have
worked in retaining and marginally growing its share, analysts wonder whether,
in the long run, this strategy will be effective. The oral care segment is
witnessing a battle over toothpaste like never before. In a bid to counter Baba
Ramdev Patanjali’s herbal toothpaste-‘Dant Kanti’- Colgate-Palmolive is
launching an Ayurved toothpaste-Cibaca Vedshakti. Although Colgate has a
variety of toothpaste in herbal segment, Cibaca Vedshakti will be the first one
in Ayurvedic segment.
"In India, the consumer believes strongly in natural ingredients. A
toothpaste launching
this quarter under the Cibaca sub-brand is Colgate Cibaca
Vedshakti," said Bina
Thompson, senior vice-president at Colgate-Palmolive, during an investor
call.
Nowadays, consumers are opting for more herbal products due to which the
Ayurved and
natural products now account for 13-14 per cent of the overall
toothpaste market.
Following Cibaca Vedshakti’s news, Patanjali said the name chosen by
Colgate was
inappropriate.
"We worship and respect Vedas like our gods, we don't use them in
our products. This is
not a toothpaste but a direct attack on our culture," Acharya
Balkrishna, MD of Patanjali
Ayurved, told ET. As per Nielsen’s data, Patanjali's oral care market
share has been
pegged at nearly 2 per cent in the year ended March. Meanwhile, analysts
expect Colgate
will be able to fight back against local competition despite being a
late mover.
You are the Brand Manager for Colgate and you have been asked to decide
its future brand
strategy. You have to specifically advise the CEO on whether the company
should
continue with a single-brand strategy in the increasingly competitive
scenario or create
different brands to fight the diverse competition more effectively.
Q1. Analyze the brand extension strategy of Colgate with respect to
whether it would have
positive effects on the brand. Do you think this strategy will help
Colgate to defend its
market dominance? (10 Marks)
Swiggy Case:
Swiggy is food ordering and delivering company based in Bangalore. It
provides a single
window for ordering from a wide range of restaurants and have their own
exclusive fleet of
delivery personnel pick up orders from restaurants and deliver it to
customers.It is
a complete food ordering and delivery solution that connects
neighborhood restaurants
with urban foodies.
Swiggy Founders:
Swiggy was founded by Nandan Reddy, Sriharsha Majety, and Rahul Jaimini
in
August 2014. Nandan Reddy aged 29 and Sriharsha Majety aged 31 both are
both alumni
of Birla Institute of Technology and Science (BITS) Pilani while Rahul
Jaimini aged 31 is
an alumnus of IIT Kharagpur.
Swiggy Journey:
Swiggy began its Journey from Bengaluru with six delivery executives and
25 restaurants
on its platform. In the time of 3 years, it has scaled up with over
6,000 delivery executives
across India in more than 8 cities like Delhi-NCR, Mumbai, Bengaluru,
Hyderabad,
Chennai, Kolkata, and Pune.
Swiggy Business Model:
Swiggy has two major revenue streams.
The major part of Swiggy’s revenue from commission it collects from
restaurants for lead
generation and for serving as a delivery partner.
Swiggy also charges a nominal delivery fee from customers on orders
below a threshold
value which 200 rupees for most cities.
Swiggy Funding:
Swiggy is backed by one of best investors available in the market.
Swiggy has raised a
total of 75.5 million dollars in funding from various investors,
including Bessemer Venture
Partners, Norwest Venture, Accel Partners, SAIF Partners, Harmony
Venture Partners, RB
Investments and Apoletto.
Swiggy Competitors:
Indian food delivery market is valued at 15 billion dollars and set for
an exponential
growth. Food delivery has become a very competitive market in India.
Swiggy is in direct
competition with major on-demand food aggregators like Zomato. Whereas
there are other
small startups like Foodpanda and Faasos also in the competition.Now
that Uber has
finally released its food delivery app UberEATS in Mumbai and Google has
launched its
hyperlocal services and meal delivery app Areo in Bangalore and Mumbai.
The competition is getting tougher for Swiggy. Swiggy is aiming to maintain its
market share
by keeping their maximum focus on 8 major cities which are Mumbai, Pune,
Bangalore,
Hyderabad, Chennai, Delhi, Gurgaon, and Kolkata.
Swiggy Marketing Strategies
Swiggy’s marketing strategy consists of both online and offline
marketing campaigns.It
promotes its campaigns via Facebook, Twitter, Youtube, Pinterest, and
Instagram. Some of
its campaigns include Secondtomom,#DiwaliGhayAayi, #SingwithSwiggy and
Know your
food series of pictures and food walks in a local area. The company has
successfully built
its brand awareness and connects with its audience through these
channels. Their facebook
page is quite active with regular updates, averaging to one post a day.
Swiggy uses its
Social media not only for campaigning but to engage with its customers
from solving the
greviences to taking the feedback.
Q2. Examine the marketing and branding strategy of Swiggy and analyze
the reason for its success/failure? (10 Marks)
Pepsi Case:
PepsiCo India Holdings Pvt Ltd, the local unit of American food and
beverages company
PepsiCo Inc., aims to double sales of Tropicana, the flagship brand for
its fruit-based
beverages, by 2020, Deepika Warrier, vice president (nutrition
category), PepsiCo India,
said on Thursday. Tropicana, which was launched in India in 2004 as 100%
juice and then
extended to other juice-based drinks, generated business of “more than
Rs1,000 crore” in
2017, according to the company. The focus on Tropicana comes as part of
the company’s
global strategy to focus on nutrition and healthier beverages as it
failed to check falling
sales of aerated drinks in the past five years as consumers shift to
healthier options.
To achieve the target, Warrier said, PepsiCo will expand retail reach by
moving deep into
smaller markets, reposition the brand with new packaging and campaigns
and double marketing spend on television, a medium more relevant for semi-urban
and rural markets, this year.“We’ll aim to make Tropicana available across
250,000 retail outlets, 2.5 times of 100,000 now by the end of this year. From
less than 100 towns, Tropicana will be made available across 300 towns.
Besides, we’ll utilize our coolers (used primarily for carbonated drinks at
retail points) for Tropicana so that it’s sold chilled even in smaller
markets,” Warrier said, adding that the company will follow segmented marketing
approach for the range. Certain variants of Tropicana will be given priority in
certain states, and the company will look at state-specific marketing approach,
she said.PepsiCo has, in January, entered into an agreement with its bottling
partner Varun beverages Ltd for distribution of Tropicana juice in North and
East India. “Varun Beverages’ contiguous reach will help the brand more than
double the distribution reach in these states, with a focus on rest of urban
and rural market expansion. For the other regions (south and west) in India,
this portfolio of products will ride on the existing PepsiCo go-to-market
system for core carbonated beverage in those geographies,” the company said in
a statement.For Tropicana, the company has appointed Hindi film actor Katrina
Kaif as brand ambassador. Kaif has been endorsing its mango drink brand Slice
for some years. Slice was launched in India in 1993 as a mango drink and
rebranded as Tropicana Slice in 2014.In the 100% juice segment, Tropicana had a
41.5% market share (retail volume) in 2016, up from 40% in 2015. Dabur India’s
Real juice leads the market with a 43.5% share, according to data compiled by
market research firm Euromonitor International. Slice, which is considered a
regular juice drink, lost market share from 19.4% in 2015 to 18.1% in 2016,
while Coca-Cola’s mango drink Maaza gained from 28.8% in 2015 to 29.7% in 2016,
Euromonitor added.
Q3 a) Discuss the brand positioning strategy of Tropicana. (5 Marks)
b) What are some of the key strategies to manage the brand Tropicana
over time and keep it relevant?
Course: Customer
Relationship Management
1. What are the various different approaches to CRM? Which one do you
find most pertinent in your career? (10 Marks)
2. If you were to advise your team on guidelines for external dispute
resolution scheme, how would you do it? (10 Marks)
3. Trends in every field keep on evolving. The only constant in today’s
world is change. Just as it is true for all aspects of business, customer
lifecycle management (CLM) is no exception.
a. Discuss 5 key trends that would help marketers in rolling out their
CLM strategies? (5 Marks)
b. Why is CRM believed to be a new way of thinking? (5 Marks)
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