Toothpaste History The development of toothpaste began as long ago as 300/500BC in China and India.

According to Chinese history, a learned man, Huang-Ti, studied the care of teeth and claimed different types of pain felt in the mouth could be cured by sticking gold and silver needles into different parts of the jaw and gum. It was theories such as these that led to the development of dental cream. First attempts at tooth cleaning included using abrasives such as crushed bone, crushed egg and oyster shells, which were used to clean debris from teeth. Tooth powders were the first noticeable advance and were made up of elements like powdered charcoal, powdered bark and some flavouring agents. This would be applied to teeth using a simple stick. Toothpowder or dentifrice was first available in Britain in the late eighteenth century. It came in a ceramic pot and was available either as a powder or paste. The rich applied it with brushes and the poor with their fingers. Modern toothpastes were developed in the 1800s. A dentist called Peabody was the first to add soap to toothpaste in 1824. Chalk was first added to toothpaste by John Harris in the 1850s. In 1873, toothpaste was first mass-produced into nice smelling toothpaste in a jar. In 1892, Dr. Washington Sheffield of Connecticut was the first to put toothpaste into a collapsible tube. Sheffield's toothpaste was called Dr. Sheffield's Creme Dentifrice. Advancements in synthetic detergents (after World War II) replaced the soap used in toothpaste with emulsifying agents such as Sodium Lauryl Sulphate and Sodium Ricinoleate. The 1960's saw the introduction of fluoride into toothpaste. This development was followed in the 1980's with the addition of soluble calcium fluoride to fluoride toothpastes. It is therefore within the last thirty years that toothpastes contains the two ingredients - calcium and fluoride. Nowadays, there are controversial views on the effectiveness and safety of fluoride toothpaste. For those who are safety concious, the use of natural toothpaste might be a better choice.

The toothpaste history in India can be tracked back from 1975 with 1200 tonnes of toothpaste produced by the toothpaste industry. Prior to the toothpastes Oral Hygiene was the domain of local home made powders and ayurvedh practitioners. With the entry of Colgate in Indian marketplace the awareness about Oral care and the importance of oral care. In recent years the Industry has shown impressive growth rate of 18.6% (this growth is calculated in terms of value growth in Rs. ). The growth in the Urban market has been largely by the Gel Segment. Presently, a large chunk of the Market is still held by Colgate. The major players in the toothpaste Industry being Colgate Palmolive and Hindustan Lever Limited and several minor players like Balsara hygiene, Dabur etc. Presently Colgate Dental Cream holds 52% of market share. HLLs Close up lies far behind with 23% of the existing market share. The third player in the

marketplace in terms of market share is Colgate Gel with 10.5% of the market share. That leaves 14.5% market share for other Brands like Pepsodent, Pepsodent G, Promise, Babool, Sensofoam, Forhans, Cibaca, Neem, Vicco etc. The toothpaste market is presently valued at Rs. 750 crores out of which the Gel segment has already bagged 1/3rd portion of it. The Gel segment presently stands at Rs. 248 crores and is growing at a rate much faster than Cream. In India toothpaste usage as compared to other countries is very low which signifies about the potential of the market. In Urban India the usage of toothpaste per person per year is just 190gms. Where as it is 200gms of toothpaste per person per year in developing countries as Indonesia and Thailand. In developed countries as USA and other European countries the toothpaste usage is 375 gms per person year. In India the toothpastes companies are going in for advertising on a heavy note, on an average the companies managing this FMCG category are spending 6.15% of their sales on development. Colgate Palmolive had shelled out 15% of their sales on ads in the year 1994. Dabur had an ad expenditure of 5.07% for the year 1993. whereas balsara Hygiene spend a huge 10.17% of their sales. TOOTHPASTE COMPANIES AND TOOTHPASTE BRANDS (1) Company : Shri Niranjan Aurvedh Bhawan, Tumsur (Mah) Product Range : Niranjan (a) 200 gm Tube Rs (b) 100 gm Tube Rs (c) 50 gm Tube Rs Segmenting Factor : Veg. / Non-veg. Population Target : 20% educate customers that all toothpastes have di-calcium phosphate or bone ash which is animal based. Whereas they use calcium rich PIPAL insted. Availability : Maharastra Distributors : 107 (newly appointed) Positioning Stance : Yoga For Teeth. Direct Competitor : Vicco Vajradanti, but they feel that will beat them in the price game as VICCOs 200 gm tube for Rs 44. (2) Company : Hindustan Lever Limited Brand Name : Close Up Marketed By : Hindustan Lever limited (HLL) Product Range : Close Up (Red, Green, Blue) 50 gm Rs 100 gm Rs 150 gm Rs Pepsodent : 50 GM Rs

100 GM Rs 200 GM Rs Pepsodent G : 50 gm Rs 150 gm Rs Segmenting Factor : Age Targeted At : Young people. The target market being Multi Brand Households where young does not use what their parents. This particular targeting was significant when Close Up was launched because Colgate positioning was a sort of Flip flop between Tooth decay and Bad Breath and Colgate was going for a Broad market constituting of all the age groups. Sought to be perceived by the customers was Fresh Breath. The physical appearance by the users, the Bright Red Gel synerized well with the Fresh breath Benefit. The advertising account was handled by LINTAS which focused on Fresh Breath that brought teenagers closer. By 1980 Close Up had 3% of the 16,000 tonnes toothpaste market. The production capacity was doubled through a deal with third party manufacturer and the Brand was taken National over the next year and a half, the Premium slashed by 30%. In 1983 Colgate started fearing after witnessing a downfall in market share and started airing its campaign by inviting customers into its Dental ring of confidence, by stressing more on breath and posing as a complete toothpaste. Close Up countered this move by sharpening product benefits, while urging the customers to do the HA test by blowing air on the palm, the message was that Close Up feels a lot cooler which reiterated the basic benefit of a fresh breath. 1987 was a Probe into Problem year for HALL as Close Up was much below expectations with only 4.5% of the 32,000 tonnes toothpaste market. They identified two basic problems: (1) Appearance of Toothpastes detracts prospects from its serious buyers. (2) Commercials displayed too much of proximity between couples which was too much for a mother, who actually purchased the Toiletries. 1998 Lever reworked 3 Ps in its Marketing mix in Tamil Nadu where people have a strong sense of Oral Hygiene and the area has a cost effective media Reach. The three reworked Ps are as follows: (1) Product : Blue mint flavour introduced. Tangerines of Read reduced. (for serious buyers.) Soft Squeeze lamitubes for toothpastes introduced for the first time in the country. (2) Communication Advertisement focus moved from spotlight to Gregarious couples. This group orientation was more acceptable to the Mother. (3) Distribution

 Took Brand to Sub Urban and Rural areas. Posters and Mobile Vans arrived in areas where Urban lifestyle was a matter of aspiration. This was a purposeful move as the company did not want the Brand to be saddled with a restrictive. Up market image In the year 1990, Colgate followed Close Up by launch of its Blue Colgate Gel. It was targeted at the youngsters within its Brand fold who were seeking Freshness. It was priced at par with Close Up gel. The Colgate ad showed a fluorescent Blue spiral round the users body and it talked of Fresh Breath Energy. By this time Gel became the Battleground in order to become the leader because: * There is rapid expansion in gel segment. * Youngsters thought white paste to be outdated. In 1991, Close Up launched Zing Green and simultaneously Lever sponsored Close Up Sangeet Muquabala targeted at the rural youth. In 1991 Close Ups market share increased to 16% of Rs 377 crores per year market. 1991 witnessed a few problems for Close Up Blue, which was faltering on repeat purchases as customers did not perceive much freshness value in it. In 1992, HLL launched AQUA BLUE with added attributes like increased Mouthwash contents and a more Minter flavour, so that customers perceived benefit is Freshness which is Levers Positioning stance. In response Colgate introduced Red Actirinse and then Colgate Blue. People at HLL thought to counter Colgates growth by cashing in on Medicinal appeal and came out with Pepsodent with Germicheck snf Mentadent G now renamed as Pepsodent G for Gum problems. Colgate countered this move by launching Colgate Total as an advanced paste to fight. Tartar, Gingivitis, and other Dental ailments. 1993 was the year when HLL tried to woo the customers by innovative packaging. Firstly it introduced Stand Up Pump dispensers for metros but it bombed in the market because of High price perception as compared to benefits. Sachets formula was used by lever to break into Colgates fort. The Close Up sachets was priced at Rs. 3 per unit and it offered 20 uses, which means that a family of five could use it four times each. The year it sponsored zee Close Up Antaksharee. HLL also went in for Close Up Toothbrushes under the Brand name Confident and launched it in Tamil Nadu. The confident toothbrushes were taken National and most importantly HLL advertisement account shifted from LINTAS to FTA due to Global alignment move by Levers parent Unilever. The brief given to the new agency was to Strengthen the Audiences perception of Brands functional values.

Toothpaste Market in India

Synopsis (part) of our research on toothpaste market in India.

o Toothpaste market in India is worth Rs 2200 Crore (2006). o In India, per capita toothpaste consumption stood at 74g in 2005, which is amongst the lowest in the world, compared to 350g and 300g in Malaysia and Vietnam respectively. o Toothpaste enjoys a country wide penetration level of 50%. o Rural: o Urban: 75% o Oral hygiene continues to be under aggressive competition, with sales increasing by a modest 3% in current value terms in 2006 to Rs. 2,400 crs. Toothpaste accounted for a whopping 83% of value sales. o HLL's market share in the dental care market has grown from a mere five per cent in 1979 to an impressive 36 per cent today, whereas ColgatePalmolive has been seen its market share decline from a dominating 75 per cent to a struggling 56 per cent. Segments: Popular Segment Low Price Packs Niche Products Freshness Segment Growing Colgate Dental Cream, Pepsodent Cibaca, Babool Colgate MaxFresh,Close Declining Growing Up,Anchor Gel 39%

Ayurvedic and Sensitive toothpastes Stagnant

Price-based Segments: Regular Segment: Low Price Segment: 100 gm: Rs 25-30 100 gm: Rs 14-20

o The Lower Price Point segment accounts for around 25% of total category volumes. Small and regional brands from the low priced segment are expected to perform well because they are often close to the market, respond faster to changes and are willing to learn from mistakes. Colgate o Colgate has been present in the domestic oral care market (of India) for the last 70 years. o A dominant position in the toothpaste segment with a 48% market share in the domestic market. o 1.5 times the second largest player. o Cibaca was acquired by Colgate in 1994 from Ciba Geigy. o The company today has two main brands in the toothpaste segment ' Colgate and Colgate Cibaca. o Colgate Cibaca has risen to become the 4th largest paste brand in the country in volume terms after Colgate Dental Cream, Pepsodent and Close-Up

Pepsondent o Brand of Hindustan Unilever Ltd (HUL, erstwhile HLL) o In a declining toothpaste market, HLL has managed to grow its brands and this has been attributed to Pepsodents value proposition being redefined. o Pepsodents share has been climbing steadily from 15.5 per cent in the last quarter of 2002 to 16.3 per cent in the quarter ending June 2006. o HLL's Dental insurance scheme, being launched through a partnership with the New India Assurance, offered a dental insurance of Rs 1,000 on purchase of any pack of Pepsodent. Anchor o Anchor belongs to Anchor Health and Beauty Care (AHBC), a part of the Anchor Group (makers of Anchor Electrical switches). o Anchor White Toothpaste was positioned as Indias first British Dental Health Society certified 100 per cent vegetarian toothpaste, in 1997. o Anchor and Ajanta price their offerings at more than 40% discount, giving the market leaders a run for their money. These low priced competitors accounted for more than 80 per cent of the growing 'discount segment'. Top 5 Brands - Market Share (2006) 1. Colgate Dental Cream 34%

2. Close-Up 4. Colgate Cibaca Top

14% 5.7% 3% 32.3%

3. Pepsodent Complete 10 11% 5. Colgate Fresh Energy Gel 6. Other Brands

a. Anchor, Babool, Ajanta, etc Company 1. Colgate Palmolive Ltd: 2. HLL: 3. Dabur: 7.2% Market Share (Value), 2006 47.3% 30%