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Oral B: Entry In Toothpaste Market (Comparative Analysis)

2026 words - 9 pages

INTRODUCTION

Oral care industry in India has evolved from being just a purview of local homemade beneficial powders to attractive, cost-effective and user friendly gels neatly packed in a tube which can be easily applied on a Tooth brush. The use of tooth paste in India can be traced back to the year 1975. Nowadays, people are much more aware of oral hygiene which has led to a phenomenal growth in the Oral care Industry. But still, rural penetration is quite low as people there are still comfortable with the conventional methods of oral care. Due to this low per capita consumption, rural markets offer great opportunities for penetration. Rising per capita income of people and increasing ...view middle of the document...

ii) Increase in oral hygiene – Gum sensitivity and oral hygiene problems have engulfed more than 30% of India’s population.
Our project aims at discussing the market entry strategy of Proctor and Gamble’s new product Oral B Pro-Health. Besides, we wish to do a comparative analysis of different competitors: their market share, retail outlets and strategies to penetrate the oral care market. We would also discuss the SWOT Analysis of oral care market and Porter’s 5 Forces Analysis of entry in to the oral care market in India. After discussing these salient features, we would give our recommendations for the entry of P&G in to the Indian oral care market.

OBJECTIVES OF THE STUDY
The objectives of the study would be multi-fold. It involves an analysis of Indian oral care market, analysing various competitors with respect to their market shares and their vast outreach and thereby evaluating the market strategy of Proctor & Gamble’s new product Oral B Pro-Health. With India’s toothpaste consumption levels half that in China, Indian market possesses innumerable opportunities for players like P&G to enter in to the toothpaste market.
The study also aims to forecast the future of Indian oral care industry with respect to changing consumption trends and rising per capita income in rural and urban households.

FINDINGS AND ANALYSIS

To understand the viability of entry of ORAL –B in toothpaste market we must understand the oral care industry in India. In following section we would do the comparative analysis in terms of demographics, purchasing power, entry barriers, competitor analysis for the toothpaste industry in India. To have more informed perspective we would be using various strategy tools like SWOT analysis, Porter five forces model.
Oral care market in India
* The total oral care market is at 8,114 Crore INR out of which 6000 Crore INR could be pegged at Tooth paste. But to see if there is room for fresh entrant we must evaluate the penetration of tooth paste in India.

As we could see the tooth paste market in India has still a penetration level of only 64.30 % which accounts to only 2/3rd of the population. Next best form of dental hygiene is tooth powder used mailnly in the rural villages of the country. Third biggest player in the oral care in India i.e. Dabur Ltd. Is the largest supplier of the tooth powder with its brand “Dabur Lal Dantt Manjan”. There is a huge opportunity lying dormant for this segment which could be up graded to the tooth paste.

* Next we must analyse the per capita income of the people, so that we could position our product in the right segment of the population.

Advance estimate of national income at current prices ( 2012-2013 )

Now the per capita national income at 68,000 is relatively very low, this demands for very aggressive pricing of the product. If not then it could not reach the desired volume provided the cut throat competition and formidable position of...

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