COMPETITOR ANALYSIS-
Competitor is nothing
but rivals sellers, manufacturers ,product or services trying to capture market
share, achieve same goals, increasing profit by trying different methods in
price, product ,distribution and promotion.
For Colgate the main competitors
in India :
1. Pepsodent
2. Close up
3. others (Amway-Blister ,VICO bujradanti ,dabur
etc)
This competition is
greatly affected Colgate in India and it production.
In the first half of calendar year 2011, Colgate Palmolive
India's market share in the toothpaste
market stood at 53.1 per cent, its highest since 1998, a rare
instance of a market leader gaining new ground.
Aggressive marketing and huge 32% jump in spending on advertising makes it’s sales better and
better.
STRATEGIC POSITION
|
CATEGORY
|
VOLUME SOM%
|
MARKET SHARE
|
RELATIVE
SHARE
|
|
Toothpaste
|
53.1
|
1
|
2.3
|
·
Source ac Nielsen
VOLUME MARKET SHARE TILL
MAR-2011
|
NAME
|
2008
|
2009
|
2010
|
APR-MAR 2010
|
APR-MAR 2011
|
|
Colgate
Competitior1(market
challenger)
all other(market
follower)
|
49.4
24.5
26.1
|
52.4
22.8
24.8
|
53.5
22.5
24.0
|
52.9
22.6
24.5
|
53.1
22.8
24.1
|
PORTER’S
FOUR CORNER MODEL
This model designed
by Michael porter describes best about a competitors course of action.
Motivation – drivers
This helps in determining competitor's action by
understanding their goals (both strategic and tactical) and their current position vis-à-vis their
goals. A wide gap between the two could mean the competitor is highly likely to
react to any external threat that comes in its way, whereas a narrower gap is
likely to produce a defensive strategy. Question to be answered here is: What
is it that drives the competitor? These drivers can be at various levels and
dimensions and can provide insights into future goals.
·
The likely entry of the world's largest
consumer goods company, Procter & Gamble (P&G), into the Rs.4,500-crore branded oral care sector in India is creating ripples
for Colgate.
·
Both Crest and Oral-B are very strong global brands. In fact, Crest is the
largest selling brand in the US.
·
GlaxoSmithKline Consumer forayed
into the sector by launching Sensodyne, while
Future Group launched its toothpaste brand Sach.
·
Colgate is facing stiff competition from HUL &
DABUR. later’s share increased from 10% to 15%.
Motivation – management
assumptions
The perceptions and assumptions the competitor has about itself and its
industry would shape strategy. This corner includes determining the
competitor's perception of its strengths and weaknesses, organization culture
and their beliefs about competitor's goals. If the competitor thinks highly of
its competition and has a fair sense of industry forces, it is likely to be
ready with plans to counter any threats to its position. On the other hand, a
competitor who has a misplaced understanding of industry forces is not very
likely to respond to a potential attack. Question to be answered here is: What
are competitor's assumption about the industry, the competition and its own
capabilities?
- Colgate India, which, so far,
has not been too aggressive on the publicity front, has roped in tennis
star Mahesh Bhupathi and film star Rahul Bose as brand ambassadors for its
flagship brand Colgate Total.
·
To sustain our leadership, we are
chalking out a three-pronged strategy, which includes, innovations, innovative
integrated marketing plans and oral care awareness programmes, Rekha Rao,
vice-president-marketing Colgate-Palmolive told FE.
Actions – strategy
A competitor's strategy determines how it
competes in the market. However, there could be a difference between the
company's intended strategy (as stated in the annual report and interviews) and
its realized strategy (as is evident in its acquisitions, new product
development, etc.). It is therefore important here to determine the competitor's realized strategy and how they are
actually performing. If current strategy is yielding satisfactory results, it is safe to assume that the competitor is
likely to continue to operate in the same way. Questions to be answered here
are: What is the competitor actually doing and how successful is it in
implementing its current strategy?
·
We see a big opportunity for growth in
driving the penetration of the oral care category. With around 35 % of people
still not using toothpastes, it offers us a huge opportunity-p&g.
Actions – capabilities
This looks at a competitor's inherent ability to
initiate or respond to external forces. Though it might have the motivation and the drive to initiate a strategic
action, its effectiveness is dependent on its capabilities. Its strengths will
also determine how the competitor is likely to respond to an external threat.
An organization with an extensive distribution network is likely to initiate an
attack through its channel, whereas a company with strong financials is likely
to counter attack through price drops. The questions to be answered here are:
What are the strengths and weaknesses of the competitor? Which area is the
competitor strong in?
·
P&G
is flying high on it’s two strong global brands crest and oralB.crest is the
market leader in America and brazil.
·
HUL
is targeting youth segment through it’s strongest supply chain.
Colgate
is also facing stiff competition from dabur as this product is doing good job
in herbal toothpaste market by creating it’s image as pioneer of “ayurvedic”
brand. 
