P&G India (Procter & Gamble India) is dropping the toothpaste brand Oral-B as is shifts away from the low margin market segments and concentrates on profitability. In India, P&G introduced the Oral-B toothpaste in July 2013 after many years of speculation that the company will bring Crest to the country. Crest is one among the largest oral care brands in the world.
In almost three years of time, P&G India managed to grab just 1 percent of the toothpaste market segment. The newcomer Patanjali Ayurved has managed to grow rapidly in the country. This market share of the Oral-B toothpaste brand is very less when compared with that of Colgate-Palmolive that controls over half the Indian market and Unilever that has one fourth of the market share.
As per people familiar with the development, the company will stop the supply of Oral-B toothpaste in a few weeks. Right now, the brand is clearing the old stock. However, it has not been confirmed by P&G India. A spokesperson of the company denied that the toothpaste brand will be completely withdrawn. As per the spokesperson, it was launched in limited geographies, so it covered a small share of the overall market. India is a highly strategic market in terms of oral care and it is very important for the business, the spokesperson stated.
According to the experts, Colgate would have lost quite a major market share if the Oral-B toothpaste had a making unit in the country and it could have given higher margins to the company.
In January, P&G stated that it has decided to de-prioritize many of its unprofitable brands of business in the country that affected the top line growth rates. This way, the company aims to make a more profitable business that will definitely grow in the longer term.
