Brand Wars

LAKSHMI NARASIMHAN SHOD-MBA

MVJ COLLEGE OF ENGINEERING BANGALORE09-02.2015

Colgate Vs Close Up

• Colgate and Close Up are two leading brands in the oral care FMCG markets

• The ups and downs witnessed through their brand wars is the discussion we propose to have today

Theoretical Background

• Need satisfaction of consumers forms the basis for successful marketing

• The product offered by a company should act as a solution to customers problems

• At the next level we can classify the customers ever changing needs on the lines suggested by the Maslow’s need hierarchy model

Oral care Market & Need Hierarchy model

• Having clean teeth can be considered as physiological need and having strong teeth can be considered as safety needs

• It is very important to understand this in the wake of brand wars between Colgate & Close up

Colgate’s Overall market leadership vs. Close up’s Segmental War

• Colgate• Colgate as the first entrant

into the oral care market captured and enjoys a larger overall market share

• Until late 1990’s the mass market for toothpastes was dominated by Colgate which catered to the physiological and safety needs of the consumers

• Close Up• Close up took up a brand

war by opening a new segment- the youth –by taking the needs of consumer to the next level claiming “ we need fresh breath energy” to be accepted in social platforms.

The War• Close Up• The market buzzed and a lot

of people in the youth segment switched to Close Up

• This growing segment till this date continues to be dominated by Close Up

• Colgate• Colgate responded to the

challenge by coming out with Colgate Gel

• It has also come out variety of customized offerings like Colgate Herbal, Colgate Gel, Colgate Active Salt etc

Same Purpose ,Different Focus• While the war for capturing customers and

improving market shares continue between Colgate & Close up there is need to understand their respective approaches.

• While Colgate aims to preserve its broad based advantage by offering problem solving solutions (strong teeth, salt for gums, caring for sensitive teeth etc) close up as the icon for the youth addresses the growing segments in the market by increasing the levels of customer needs.

• Take a look at the following pics……

Different Roads, Same Destiny

THE BATTLE CONTINUES……