Dominant player and market leader for long time

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Reference no: EM132185682

Colgate has 51% share in the Indian oral care market, and has been a dominant player and market leader for a long time. Dental Cream (CDC) is Colgate’s core brand and the largest selling toothpaste brand in the Indian oral care market. As a core brand and market leader, it generates positive cash flows and is highly profitable. However, it is for these reasons that it is constantly under threat from rival brands Pepsodent and Close-up owned by Hindustan Lever (now Unilever). In order to defend its position, Colgate relaunched the Colgate Dental Cream brand in 2001 with a new positioning, and also introduced new brands , Colgate Herbal, targeted at a traditional consumers who prefer natural ingredients , and Colgate Cibaca Top, targeted at the price-sensitive economy segment. This defensive flanking strategy afforded some self-protection, and helped to avoid a frontal battle with Hindustan Unilever. From a challenger’s perspective, Hindustan Unilever faced a huge task trying to dislodge the well-entrenched market leader. In an effort to avoid a frontal attack and all the ensuing cost. It repositioned its own brands to attack Colgate’s vulnerable flanks. The new positioning saw Close-Up repositioned on freshness, and Pepsodent adopted a health-value proposition; and in doing so challenged Colgate’s established claim in this area. By consolidating its brand strategy with Colgate Dental Cream and developing target flanker brands, Colgate repelled the threat of direct attack. To some extent, therefore, the defensive flanking strategy beat off the attacking flanking strategy of the market challenger. At present Colgate’s market share in the toothpaste market is 54.5%, its highest since 1998, a rare instance of market leader gaining new ground.

a. Using each of the attacks strategies, suggest ways in which Close-up might be used to attack CDC.LO-4;5

b. Using each of the defense strategies, suggest ways in which CDC might protect its market leader in position. LO-4;5

c. Based on the toothpaste market in your own country, identify a market niche. LO-4;5

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Reference no: EM132185682

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