ESSAR STEEL-New Marketing Strategy

Stiff Competition THE slow-down in the economy and continued competition has eaten into Colgate-Palmolive' s margins. Over the years, the oral health care major has been facing a fall in its profitability due to the increasing competition in the domestic market. In fact, since 1994-95 the company's net profit has increased by around 10percent from Rs 72 crore to Rs 80crore, even while its net sales grew by around 45 per cent. The company has lost a significant market share to aggressive players like Hindustan Lever, Colgate is, fighting tooth-and-nail to maintain its leadership position in the market, as is evident in the 42.6 per cent increase in its advertising expenditure during the year under review.