Brand Update : Patanjali is making Colgate Confused !

Patanjali’s Dant Kanti has really made the market leader Colgate in a tight spot. The aggressive promotions and the positioning based on Ayurveda has slightly dented the market share of Colgate. More than the market share, the Ayurveda push may shift the parameters on which the consumers decide on the toothpaste purchase. 

During the initial phase, Colgate tried to counter the Dant Kanti’s challenge by strengthening the existing variant  Colgate Herbal and Colgate Salt. But that did not make an impact on the forward march of Dant Kanti. 

Colgate then used the flanker brand Cibaca to fight the challenger. Earlier, when the price warriors like Anchor and Babool challenged Colgate, the market leader used Cibaca to neutralize the threat effectively. This time, the same strategy was used by launching Cibaca Vedshakti which boasted of the natural content. The flanker brand was priced at almost 30% lower than Dant Kanti. 

The strategy seemed to have failed. Recently Colgate launched another variant Colgate Swarna Vedshakti in the Ayurveda space. This time the market leader is launching a direct attack on the competitor with the flagship brand. 

The variant is priced at a premium to the challenger brand. The new variant is positioned as a toothpaste that combines traditional with modern. 

The ads follow the testimonials from mothers to build authenticity to the brand. The current campaign is aimed at increasing the adoption of the brand. 

Now Colgate has two variants with the similar brand name ( or part)- Colgate Cibaca Vedshakti and Colgate Swarna Vedshakti with different prices. My hunch is that Colgate is migrating Vedshakti to the parent brand and may discontinue Cibaca Vedshakti in near future.

Colgate has realized that Dant Kanti is not about fighting on price. Patanjali is making the Ayurveda segment of the toothpaste market which was a niche in to a mainstream segment. If such a shift happens then Colgate’s leadership position will be under threat. Colgate probably had done the right thing by fighting Dant Kanti with its flagship brand.