Colgate Is A Market Leader And Improve Its Revenue And Profitability

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Problem/Issue Statement In order to establish itself as a market leader and improve its revenue and profitability, Colgate-Palmolive (CP) must overcome competition in sensitive teeth toothpaste market.The once dominant brand CP is facing severe competition particularly with its sensitive oral care products. The monopoly it had as a leader, has started to decline after 2011. As new entrants in the market have captured share, creating a fierce competitive environment. Resultantly, there is drop in market share of CP. If the market share is not recaptured the revenue and profits will continue to drop. In 2009 CP launched a toothpaste for people suffering from dentine hypersensitivity, allowing CP to take charge of the market as a first mover in the market. However, over the next few years competition began in special toothpaste. As, GlaxoSmithKline (GSK) launched its global success ‘Sensodyne’ in India in January 2011. The launch was a success as it quickly started to capture the market of remedy for tooth sensitivity pains. In two years, it had a slightly higher share in the market than CP in sensitive toothpaste. During the 2011, CP responded to the threat of new competition with a new product ‘Colgate Sensitive Pro Relief’. It utilized the same distribution channel as the ‘Colgate Sensitive’ resulting in a market cannibalization. This trend followed as GSK responded with another brand ‘Sensodyne Rapid Relief’ and continued till 2013 with new brands from both companies.

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