Sunday, July 17, 2016

Brand Update : How Colgate is fighting Patanjali

Colgate holds around 54% market share in the Rs 6000 Crore Indian toothpaste market. Of late, the brand is facing tough competition from Patanjali Ayurveda. Patanjali which is a brand which is closely associated with Yoga guru Baba Ramdev is touted to be a disruptive force in the consumer products market.

Patanjali which recently got aggressive in the market has garnered around Rs 5000 crore within a short span of time. It has overtaken firms like Jyothi Lab, Emami etc in the turnover. 
According to business news reports, Colgate is expected to face the toughest challenge with Patanjali's Dant Kanti cornering a Rs 450 crore turnover in 15-16. 
Colgate is a very aggressive marketer and is not expected to take competition lightly. Even with a market share of 54%, the brand is not known to be complacent in the addressing of competition. This case also Colgate took pro-active steps in countering the onslaught of Patanjali Ayurveda.

Colgate chose to fight  Dant Kanti using the variant Colgate Active Salt Neem. It is interesting to see that Colgate Herbal was not aggressively promoted rather it chose the Active Salt variant. Secondly, Colgate chose to rope in Priyanka Chopra to endorse the variant.

Watch the ad here : Colgate Active Salt Neem
While the neem + salt combination brings the brand parity with Dant Kanti, the celebrity endorser enhances the strength of the counter attack. 
Since Dant Kanti's main positioning is the Natural Platform, Colgate now has three variants - Herbal,Active Salt , Active Salt Neem in its portfolio. 

With the aggressive counter attack, Colgate expects to arrest the growth of  Dant Kanti. Some damage will be done since Patanjali uses price as the major strategy for market growth. But with the natural attribute neutralised, Colgate expects to retain its current customer base  with the Colgate brand portfolio.