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.
Procter and Gamble Co. also know as P&G, is an American multinational consumer goods company, founded by William Procter and James Gamble. Its products include cleaning agents and personal care products. It has in its kitty global brands such as Ariel and Tide in the Fabric care segments and Head & Shoulder, Pantene and Rejoice is the Hair care segment. For this case study selects P&G Company as it has an important role in the consumer segment products. As P&G was a popular company, the financials statement shows better performance in the previous year.
Colgate-Palmolive Co (CP) was an international leader in household and personal care product, with the sales of $6.06 billion and profit of $2.76 billion in 1991. CP set up a five-year plan in 1991, pointing out that company needed to focus on new product launching and entry into new geographic markets by improving the manufacturing, distribution and the continuance of the core consumer products. Started from 1984, CP’s CEO awaked the company from “sleepy and inefficient” to profitable. Both gross margin and annual volume growth increased from 1985. Although everything seemed good, CP was facing the worldwide strong competitions from other companies. In order to have some protections, 170 CP’s
The end of the first year, we had 30% of the products left, in view of the traditional market accounted for 40.5% of the overall toothpaste market, we decided to increase three sales people into traditional sales channels in the next year. Due to the selling of whole market Economy toothpaste are great, we add advertising investment. At the same time, the poor sell of children's toothpaste prompted us to reduce 5 million budgets on its advertising fee. According to the results of marketing, and sales of other companies, appropriate to improve the economy, white, healthy toothpaste price and their allowance, try to stimulate the sales.
By increasing successful and ideal operations and strengthening relationships with their customers, companies existing in this market diminish the significance of threat over newly accepted competitors. Toothpaste companies are still growing strongly, therefore additional firms are trying to enter the market to benefit from the increasing profits. However, most toothpaste companies have already made their name and their customers stay loyal to their brand, therefore it is hard to get into this market. With toothpaste being such a popular item and an essential in households,
Colgate as a company strives to be the best company to have the best dental products. In an article from the website live strong Norma Chew wrote, “Colgate Palmolive Company is one of many companies that provide dental care products to the consumer.” Colgate as a company is expanding their products. Colgate was once only known for selling toothpaste, but now they have a wide variety of dental products to promote clean teeth.
When asked about the awareness level of different brands of oral care products the Colgate and Close-up are the ones that have highest recall value and come instantaneously and it is followed by Pepsodent, Oral B and Vicco
The United States, Mexican and Chinese markets all took very different approaches to the release of Colgate-Palmolive’s (CP) newest oral care product in 2004-2005. The new toothpaste is called Colgate Max Fresh (CMF). It is a cavity preventing gel with breath-freshening strips suspended in it that dissolve while consumers brush their teeth. The technology behind the breath strips is patented, and Colgate was hoping the product would be a big success by providing unique freshness.
Culture has progressed with many consumer merchandises that have become necessities and transformed into the day-to-day routines of society without having to think twice about it. CP or Colgate-Palmolive, is an icon for the personal hygiene industry throughout the United States, and as a worldwide company has positioned the brand as a most important home care in multiple foreign countries.The CMF line is CP’s most popular brand. The brand was a huge hit because of its individuality and the value that it crafted for consumers was astonishing. Colgate Max combined a new breath-strip and a mixture of therapeutics’, which added to more
The ratio analysis indicates mostly positive outlook for Colgate-Palmolive as most of the measures look healthy. The ROE has reduced by increasing assets and reducing liabilities, the cash conversion cycle has decreased and the days payables outstanding has increased.
Question 3. Suggest guidelines for optimizing new product introductions for Colgate Palmolive worldwide. Provide appropriate justifications……………..……………………………….11
In the highly competitive Japanese skin-care market, P&G¡¦s new SK-II product has proven its success as a premium and prestige offering. P&G has gained significant knowledge transfers from SK-II development and further, has successfully tapped the fickle Japanese market and has devloped a loyal user-base in Taiwan and Hong Kong. With its phenomenal success, it is only logical that P&G consider rolling-out the SK-II product-line to the international market. However, while there is significant worldwide growth potential within the $9 billion prestige skin-care industry, based on recent organizational changes, new corporate priorities, and thorough market assessment, P&G must base its decision on current resources and capabilities to
Could you identify any product systems in this product mix? Is the toothpaste considered a shopping, specialty or convenience product? At what conditions, could this product considered a business product? With respect to Scope, do you consider it a "star" or "cash cow"? Why? With respect to the product life cycle of scope, what is the current status of the product? What is your marketing advice at this particular product life cycle stage?
Seeing the company records of Canadian Mouthwash Market Shares for past three years, I feel that the performance of scope in market was consistent despite the arrival of new products in market.
Context: In 2009, India was the world’s largest democracy; with a population of 1.16billion growing at 1.4% per annum, the country suffered from a huge disparity in income with the majority of Indian population (78%) living in rural areas, and as many as 80% living under $2 per day. The 78% who lived in rural areas accounted for c. 64% of total expenditures in India. Around 50% of the Indian population did not have sufficient awareness of dental healthcare, and did not associate dental problems with improper care but rather to eating habits or genetics; most of these Indians were using natural remedies as chewing twigs from the Neem tree. Among the remaining population who used modern dental healthcare or a toothbrush, 77% brushed their teeth less than twice a day (recommended usage), and out of the 747.1million brushes sold every year, only 8.6% replaced their brush every 3 months. Cottle-Taylor (CT) enjoyed a large market share in India and focused on toothbrushes. Given the peculiarities of the market, CT decided to focus on toothbrushes where it enjoys larger gross margins by virtue of its existing manufacturing infrastructure that has been built over the years.
The report is about the market segmentation, targeting and positioning of the tooth paste industry in the local market of Mauritius. For a total population size of approximately 1, 2 million, toothpaste represents 80% of the market. This market is being shares which Colgate Palmolive which represents Colgate has 45% of the market share and the rest is being played among Aquafresh 20% and Blendax occupies 14% of the market share. 21 % of the toothpaste market shares are occupied by Signal, Close up, Casino and other make of toothpaste. Nowadays to be able to survive in this fierce competition world, firms need to satisfy the needs of its potential customers, hence keeping the existing and gaining new ones. For this to be