The toothpaste market in India is estimated at 7000 crores with a CAGR of about 12 % between the 2008-2013 timeframe. The toothpaste ( or in general. the unwritten attention ) industry is marked by: Low Bargaining Power of Suppliers owing to commoditized natural stuffs High Bargaining Powers of Customers owing to low shift costs and high figure of options. High Rivalry amongst participants owing to multi-player nature of the industry with frequent merchandise launches. Medium Threat of New Entrants owing to high barriers of distribution web apparatus costs countered by big figure of FMCG participants. Low Menace of Substitutes since toothpastes are marked from completion from tree barks use and tooth powder use which have steadily declined in the new millenary. Given the above industry construction. the toothpaste industry is marked by steady and comfy borders. Analyzing the demand drivers. the clients purchase toothpastes that are easy available and those they can swear for unwritten attention solutions. Therefore. the cardinal success drivers for the industry are marked by competences in Branding. Distribution. and Dental research. In this industry. 4 companies occupy more than 80 % of the market portion. These are: Colgate-Palmolive India ( 48 % market by value: distribution range to 4. 64 million retail mercantile establishments ) Hindustan Unilever ( 20 % market by value:
Dabur India ( 11 % market by value: FMCG distribution range to 5. 8 million retail mercantile establishments ) GlaxoSmithKline ( 4. 3 % market by value: distribution range to approx. 1 million retail mercantile establishments ) The toothpaste industry is farther sub-categorized into 6 sections consisting Regular. Whitening. Gel. Salt. Herbal. and Sensitive. The market portion occupied by the 6 sub-categories is provided in Figure 1 as below. Due to low shift costs involved in purchase of toothpaste. the success factors in positioning follow the Hoteling Model/Median Voter Theoremwherein the regular toothpastes that offer benefits for the largest set of clients attain the highest market portion and use.