In the face of a challenging market environment, Prabha Narasimhan, CEO of Colgate-Palmolive India, is striking a note of cautious optimism. Despite the turbulence in the business landscape, Narasimhan expressed satisfaction with the company’s performance and growth trajectory, emphasizing the importance of balanced growth as the company navigates these uncertain waters.
“Despite the tough market conditions we’ve seen recently, I’m pleased with the progress we’ve made,” Narasimhan remarked during the recent earnings call. Her optimism was fueled by a notable uptick in growth, particularly in the near-term, a key indicator of the company’s ability to adapt. For Colgate-Palmolive, the leader in oral care, balanced growth remains the cornerstone of its strategy. This approach is rooted in a carefully calibrated mix of price, volume, and product positioning — a formula the company plans to continue refining as it moves forward.
Narasimhan highlighted the importance of pricing strategy, especially when it comes to premium products in India. “The sweet spot for driving premiumization in the market lies between a price range of 140 to 170 index,” she explained. “That’s the window where consumers are more likely to adopt premium products.” This pricing insight, according to Narasimhan, is not just about profit margins but also about shifting consumer behavior toward higher-quality options. Colgate-Palmolive’s ability to align its products with this pricing sweet spot has been integral to its success, she noted. However, she acknowledged that this pricing approach is dynamic and will evolve as market conditions change. “For the moment, it’s working well for us,” she said, “but we remain open to adaptation.”
When it comes to competition, Narasimhan does not believe there is a dramatic shift in the market. “All players in this industry have always been driven to win, and that hasn’t changed,” she explained. In an industry where competition is fierce, she noted that growth is a zero-sum game — some brands will win, and others will lose. Still, Narasimhan believes the real differentiator for Colgate lies in understanding what drives consumer decisions.
“Consumers are ultimately buying benefits,” she explained. Whether it’s cavity prevention, fresh breath, sensitivity relief, or whiter teeth, these are the tangible benefits that influence purchasing decisions. “Our focus is on delivering the best possible solution for these needs,” Narasimhan asserted, emphasizing the company’s commitment to leveraging scientific innovation to meet consumer demands. The science behind the product — whether it’s a unique ingredient or a specialized delivery system — remains central to Colgate’s value proposition.
Beyond the benefits, however, lies another important factor in shaping consumer preferences: sensorial experience. Narasimhan pointed out that toothpaste, as a category, is one of repertoire — consumers do not typically buy the same brand for 12 months. This dynamic is especially true in India, where a single consumer may use multiple brands based on flavor, texture, or personal preference. For Colgate, this understanding has informed its product development efforts.
“Sensorial experience is key. Consumers are looking for different tastes and textures in their oral care products,” Narasimhan explained. Just as one might seek out the perfect Mexican dish at a restaurant, she likened the quest for toothpaste to a desire for a specific sensory experience that meets personal preferences.
“If I go to a Mexican restaurant, I want good Mexican food. I don’t want that restaurant to necessarily serve me the best dosa. So what we need to do is to make sure that what we are offering is superior to what competition is offering. That’s where all the effort goes in – on product development, taste and flavor, and essentially developing superior sensorial in the family in which we operate and not moving to a family that other people operate.”
For Colgate-Palmolive, ensuring that its offerings provide superior taste and sensory satisfaction is paramount in staying ahead of competitors. “We’ve focused our efforts on creating a sensorial experience that is unmatched,” she said, underscoring that it’s this commitment to taste, flavor, and overall satisfaction that has contributed to the company’s ongoing success. “Our approach to product development — focused on sensorial superiority — is central to our strategy, and so far, it’s working.”
A significant 90% of the company’s packaging has been upgraded, with the evolution from basic caps to more sophisticated stand-up and flip-top designs. In the premium range, the brand has even introduced double-walled acrylic caps. Additionally, tube artwork has been refreshed to further elevate the product’s appeal.
This push for quality extends beyond product design. Narasimhan emphasized that Colgate’s advertising strategy plays a critical role in driving its topline growth. “We test every piece of advertising before it goes on air, and 90% of our ads rank in the top quartile of FMCG advertising,” she said. The company further noted that the buzz surrounding the Colgate brand is a direct result of the high-quality advertising and products that the company consistently delivers.
As Colgate-Palmolive India moves into the future, Narasimhan remains confident that this approach—balancing innovation, pricing strategy, and sensory appeal — will allow the company to continue to flourish, even in uncertain times. For now, the company is riding a wave of premiumization success, but with an eye on flexibility and responsiveness to shifting market demands.