Friday, April 12, 2019
Toothpaste Industry in India Essay Example for Free
Toothpaste Industry in India EssayThe toothpaste market in India is estimated at 7000 crores with a CAGR of approximately 12% between the 2008-2013 timeframe. The toothpaste (or in general, the viva care) industry is marked by petty(a) Bargaining Power of Suppliers owing to commoditized raw materials High Bargaining Powers of Customers owing to low switching cost and high number of options. High Rivalry amongst players owing to multi-player nature of the industry with frequent product launches. mass medium Threat of New Entrants owing to high barriers of diffusion network tickup costs countered by handsome number of FMCG players. Low Threat of Substitutes since toothpastes are marked from completion from tree barks use of goods and services and toothpowder usage which have steadily declined in the new millennium. Given the above industry structure, the toothpaste industry is marked by steady and comfortable margins. Analyzing the demand drivers, the customers purchase to othpastes that are easily available and those they can trust for oral care solutions. Therefore, the key success drivers for the industry are marked by competencies in Branding, Distribution, and Dental research. In this industry, 4 companies occupy more than 80% of the market share. These are Colgate-Palmolive India (48% market by value dispersion reach to 4.64 one million million million retail outlets) Hindustan Unilever (20% market by valueDabur India (11% market by value FMCG distribution reach to 5.8 million retail outlets) GlaxoSmithKline (4.3% market by value distribution reach to approx. 1 million retail outlets) The toothpaste industry is further sub-categorized into 6 segments comprising Regular, Whitening, Gel, Salt, Herbal, and Sensitive. The market share occupied by the 6 sub-categories is provided in Figure 1 as below. Due to low switching costs involved in purchase of toothpaste, the success factors in positioning follow the Hoteling Model/Median Voter Theoremwhere in the regular toothpastes that offer benefits for the largest set of customers attain the highest market share and usage.