Q] How have the enduring qualities of Palmolive stayed the same over the years, and what aspects have had to change to keep up with the times?
In India, Colgate-Palmolive is currently an oral care behemoth. However, globally, less than 50 percent of our business comes from oral care. More than 50 percent of our business comes from categories such as home care, personal care, skin health, and pet nutrition. Within personal care, Palmolive is a leading brand in many regions around the world. Palmolive has a heritage of 50 years in this country and has always been at the forefront of personal care, including shaving cream, bar soaps, and today, body wash. In fact, Palmolive pioneered body wash as a category in this country about 20 years ago. Over time, the brand has evolved, and even though it had a rich heritage and was at the forefront of personal care for many years, it has been somewhat undervalued in recent years. That is why, strategically, we have now made it a top priority, and reprioritising Palmolive is a key part of our growth plan.
Q] In 2022, you revitalised the Palmolive shower range. However, there's a common perception that younger consumers are reluctant to engage with brands strongly associated with previous generations. Are you encountering this challenge?
Over the years, the key category that was once the leading face of Palmolive has changed. Previously, it was shaving cream, with Kapil Dev as the prominent figure. Today, as we focus on rich natural beauty and sensory experiences, the current generation associates Palmolive with body washes and hand soaps. They no longer connect it with the shaving cream of the past, as the communication around that has faded. The two competitive strengths for Palmolive that stand out today are the appeal of its packaging and the fragrance experience.
Q] For a big chunk of the country, soaps and body washes are considered a premium offering. And yet, the price point is not very high. So, what is the target audience here?
Like you said, most consumers in this country still use bar soap. The penetration of body washes in the country is only about two to 3%. Even in urban India, it's not more than a low single-digit percentage. So, there's a huge headroom for growth. The category is growing at a fast pace, even though some of these consumers may not have purchased a body wash. Yet, a lot of them travel all across the country and stay in hotels, and what you get in a hotel is a body wash. So, a trial is getting generated for the category. Once people use it, they realise that the product is softer and gentler on their skin. Also, it's much more hygienic because it is not being shared by people, and the fragrance experience can be significantly superior as well.
Q] You recently launched an intriguing campaign for Palmolive. In the past, you featured celebrities such as Sunil Gavaskar, Kapil Dev, and even Dia Mirza in your advertisements. When you decided to reintroduce a major campaign for Palmolive, why did you choose not to involve a celebrity this time?
This question often comes our way. Our strategy is not about whether to use celebrities or not, but about expressing what our brand stands for and achieving the communication objective in the most effective way. A celebrity may or may not align with that brief. In this instance, we felt that a celebrity was not necessary to meet the brief, so we chose not to use one.
Q] What is your earliest memory of Palmolive?
My earliest memory of Palmolive is of the Palmolive bar soaps, followed by the body wash, because I've been using the body washes for the past 15 years.
Q] Tell us about ‘Slow down and savour the feeling', the new campaign that you've launched for Palmolive, and how are you creating the buzz around the big brand now?
I’m truly excited about this, as it’s the first time we’re launching a national campaign for Palmolive body wash. The primary consumers for Palmolive body washes are young, ambitious women in urban India, many of whom are working professionals. They are eager to achieve a lot while navigating their busy lives. However, in the rush of daily life, they might not fully experience it. That’s where Palmolive comes in. Palmolive offers them a moment to slow down with our body wash shower gel experiences. We aim to encourage consumers to savour these moments and enjoy the experience. Throughout their day, we’re providing the Palmolive experience through dedicated zones in gyms, bus shelters or metro stations, office buildings, and more. Once they are convinced, if they are in a supermarket, they will experience the Palmolive zones there as well.
Q] If you were to talk about your marketing mix, which medium would get the bulk of your spends in this case?
It spans across various touchpoints. However, our strategy for this campaign is to be more focused, impactful, and personalised. This means we can target our audience more precisely, increase frequency, and enhance personalisation. This approach is, of course, more manageable on digital platforms, so the majority of our communication is happening there. Nonetheless, we are also utilising other touchpoints.
Q] Colgate-Palmolive has been present in the country for nearly nine decades. During this time, Colgate has become synonymous with oral care in India, while Palmolive is still making steady progress in establishing itself. Currently, you face significant competition from established players such as HUL, ITC, Fiama, Nivea, and even some homegrown brands like Plum. How challenging will it be for you to gain market authority in this context?
One can often get obsessed with competition, but one has to be obsessed with the consumer. That will be our approach. We need to be obsessed with understanding consumer needs and aligning them with our brand strategy. Palmolive has three significant advantages: its long-standing heritage, our competitive edge in packaging appeal and fragrance experience, and our global expertise in both the consumer and the category. We will continue to offer superior product experiences and enhance our offerings, leveraging our extensive knowledge. We will remain committed to meeting consumer needs and delivering on our promises.
Q] Last year was a great year for Colgate-Palmolive, with more than 25% profit. I want to understand how much of a role advertising played in upping the brand appeal in the country.
India is a vast country, and in a category like oral care, which has nearly 100% penetration with toothpaste in almost every household, there are many factors that drive the business. Advertising and superior communication are crucial, especially given the prevalence of traditional trade stores. It is essential that people actively seek out Colgate toothpaste, which underscores the importance of effective advertising. Until a few years ago, not all of our communication was of the highest standard. However, now 100% of our campaigns, according to consumer tracking, rank in the top quartile of communication quality. As a result, our communication has significantly improved. Our media reach has also expanded, leading to increased demand.
Q] I think some of your recent campaigns have been fantastic, and my favourite has been the toothless granny, which was hilarious. You've done a fantastic job in changing the tone of communication. I would also like to understand whether humour will be an integral part of Colgate's overall communication strategy, and potentially for Palmolive as well.
Tonality is going to be different according to the brands and the task at hand. For instance, the tonality of the Colgate ‘Strong Teeth’ campaign, featuring the toothless granny, was intended to be endearing, warm, and entertaining, reflecting the fact that Colgate Strong Teeth has always been a family brand. In contrast, Colgate MaxFresh employs a more fun tone. We have recently launched a campaign for Colgate Total with a more scientific tone. However, what will remain consistent is that every piece of communication must be engaging. If people don't notice it, nothing else matters. Additionally, it needs to be persuasive enough to prompt action.
Q] Since the revamp of products, what kind of growth have you seen for brand Palmolive in the last year?
The shower gel business is at double digit growth. The good news is that it is competitive growth, which means that we've been growing share over the last few quarters as well. So, we are on the right track, but like I said, the category penetration still has a lot of headroom for growth. So, we have to continue to outpace that category growth and keep winning.
Q] Do you have an agenda or a date by when you wish to be in the top three or perhaps number one?
Every brand has such goals. We engage in budget planning annually, but I always emphasise to my team that while there are major milestones, achieving them requires completing smaller, incremental steps—every small step counts. We focus on these incremental steps. If we progress steadily in the right direction, reaching our long-term goals will follow..
Q] I recall Prabha Narasimhan discussing how Colgate-Palmolive plans to diversify significantly. As you mentioned, you have a presence beyond oral care. So, what is the next big category for Palmolive?
Diversification beyond oral care is indeed a stated strategy. We possess expertise in multiple categories globally, and India is performing exceptionally well. We are advancing on several fronts, and this progress is expected to continue for many years. Therefore, it is an opportune time for us to diversify. We will assess everything based on three criteria: the readiness of the market in India today, our understanding of the consumer, technology, and the category, among other factors; and, ultimately, whether we have the capability to succeed. These are the key metrics for our assessment.
