Colgate-Palmolive MD and CEO Prabha Narasimhan had put in place a four-pillar strategy that has been successfully driving growth for the company in the last few quarters. The first pillar is growing category consumption and the share of core brands within that; the second is to drive science-led premiumisation; third is building competitiveness of its toothbrushes and devices; and the last one is diversification. “It’s quite a simple strategy and one that we have executed quite well too,” she had said in an earlier interview.
She had articulated the view that in urban areas the challenge was to get people to brush twice a day (only 20 per cent do), while in rural areas the challenge was to get people to brush daily — only 45 per cent do! After much planning, Colgate has rolled out an activity which, it hopes, will eventually push forward the first pillar of its strategy of growing category consumption.
Colgate has rolled out an AI-powered app to put dental awareness and dental scanning in the hands of consumers. Users have to take a picture of their teeth and mouth through this app and they get an AI-generated report for cavities, gum diseases, staining. Colgate has gone a step further to ensure that once users get a report they can do something about it. The app will connect them to dentists in their area, based on their PIN code, for a first checkup paid for by Colgate. “Access to dentists is still limited as there are only around 1.4 lakh dentists in the country. Through our partnership with the Indian Dental Association, we’ve tied up with 50,000 dentists, with whom people can assess their oral health,” says Narasimhan. “As we get more awareness, we expect that the category will grow,” she adds.
The oral health movement (OHM), as Colgate has called it, is its single biggest campaign in a while. Earlier in November, it put QR codes on 800 million Colgate toothpaste packs (it produces over two billion packs a year), which users can scan for the oral checkup. Information on OHM will also be available across 500 stores, so Colgate expects to get good traction for its programme.
Tiered strategy
But, as Colgate’s CEO points out, it’s a long-term objective to move the needle on growing consumption. “What we’re learning is that you can’t do one thing and expect to move. So, we have a kind of tiered strategy with multiple programmes, like our school contact, which this year will reach 10 million more children and touch 180 million children in total. Then there is ‘above the line’ communication, and we have also been working with governments to participate in the education curriculum. Now, we have tied up with the UP and Goa governments to add to what we already had with the AP government,” she explains.
Meanwhile, Colgate-Palmolive has been among the fastest growing FMCG companies this past year with its core brands doing well. “Almost our entire portfolio now has new product formulations, and it has been revamped as far as packaging is concerned. So, in the second part of that first pillar of our strategy, which is about building our core brands and driving superiority, we’ve done a very good job,” says Narasimhan.
Colgate, says its MD, has done a good job on advertising, as “90 per cent of our advertising tracks above FMCG norms. Our assortment continues to increase, by about 15 per cent this year. So, all the pillars of driving our core brands look reasonably healthy. The second pillar of premiumisation, while I’m happy, we can do better. “
The premium brands, she says, have grown three times as fast as Colgate’s overall business this year. “So, it’s a start, but the headroom opportunity is really good,” she adds. In super-premium toothbrushes, where Colgate was not on top, it has achieved leadership. “Now we are leaders in pretty much every sub-segment of toothbrushes,” says Narasimhan. And, as for the second part of the company name, Palmolive, its hand and body washes, she says, are growing at about 3X of overall business, albeit on a smaller base. In the months to come, Colgate will chant OHM to drive core category consumption.