COLGATE PALMOLIVE PRECISION TOOTH BRUSH Synopsis :- The analysis of the two different launch strategies 1. Introduction and Company Background. Colgate Palmolive was the global leader in household and personal products, with sales of $6.06 billion and gross profit of $2.76 billion, as in 1991. The company was also the No. 1 in US retail tooth brush market with 23.3% of volume share. The company had 43% of the world’s tooth paste market and 16% of the world tooth brush market. In 1991 there was an increase. There was an increase of 12% in the worldwide sales of CP’s oral care products amounting to $1.3 billion which was 22% of CP’s total sale. The Colgate-Palmolive case involves the Precision toothbrush, which was entered into the …show more content…
In order to meet consumer demand CP could introduce the toothbrush as a niche, super-premium or amainstream, professional product. It could also introduce the product using standard naming conventions or introduce anew labeling system by calling it the “Precision by Colgate.” CP could leverage existing industry relationships and makean effort to form new ones in order to gain a competitive edge. At launch, CP could plan to offer competitive promotions,a popular offering that was slowly becoming standard practice in the oral care industry. The company could also increaseits advertising budget to include educating the public on the dangers of gum disease. Depending on how it chooses tointroduce the Precision toothbrush to the market, 1992 could serve as an important year for CP to establish itself as thedefinitive oral health care company. Situation Analysis Environmental Analysis In 1992, Colgate-Palmolive (CP) was the global leader in household and personal care products. It was also the leader inretail toothbrush sales in the United States. Prior to the 1990s, consumers were satisfied with toothbrushes that were aesthetically pleasing. As therapeutic toothbrush sales rose it became apparent that baby boomers were becoming increasingly concerned with their oral health, specifically their gums. As a result, the toothbrush industry
Also surveys were conducted of mouthwash user’s image of the major brands based on several attributes such as, reducing bad breath, killing germs, removing plaque and others. The results showed that Plax achieved a strong image on removing plaques and healthier teeth and gums, whereas scope scored a weaker image on those attributes.
Colgate-Palmolive Company (CP) launched a new toothbrush, Colgate Precision, to the market. But having developed for three years, CP was fiercely competing with other companies in the market. In order to have the power to fight in the highly competitive market with substantial product activity, Colgate-Palmolive Co. was in a problem of considering the how to position its new product--Precision, and to define the market strategy in terms of positioning, branding, and communication strategy. It provided some options with details to the reader, hence, for such purpose, this case would be a decision case, finding the optimum to segment the new product to the target and how it should be marketed.
By examining three of the commercials from the 1950s, we can conclude what the initial perceived dental problem was in the era. In each of the commercials I analyzed, the issue of tooth decay was mentioned repeatedly. I examined the 1956 Pepsodent commercial, the 1950s Colgate Dental Cream commercial, and the 1956 Crest commercial. The competing companies all had a similar substantive characteristic in that they used science and scientific terms to sway their consumers. In the particular situation of tooth decay, all of the rhetors chose science and special terminology that would cause a response in their audience. It is hard to argue against “science” after all.
Proctor and Gamble-Scope is faced with a very important decision, they need to prepare a marketing plan for P&G’s mouthwash business for the next three years. They want to know how they are going to be able to
According to Brazil basic social characteristics, and several other major competitors’ product, we decided our product types covered by the child toothpaste for the kids, healthy toothpaste for the elder, white toothpaste for young people, economic toothpaste for family. Our team pricing standards are to ensure that company earnings, guaranteed price competitive enough in the market, and guaranteed consumers can afford the price.
As seen in exhibit 2 as well, the company’s unit share and dollar share steadily increased minimally from 2005 to 2007. Unit share increased from 21% to 21.3%, while dollar share increased from 15.7% to 16.1%. Similarly, US sales increased in HPL’s Target Markets for skin care, oral hygiene, personal hygiene, and hand and body care from 2003 to 2007, making the package more appealing to the company. With HPL’s sales into its retail channels increasing from 2003 to 2007, in addition to the increase in sales, label shares, and such aspects as revenue, it is evident that the company’s financial performance for the past few years has been favorable.
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,
The advertisement of the Colgate toothbrush shows the positivity of the toothbrush. The advertisement is on a red background. They have their product which is a blue and white tooth brush, slanted in the middle of the ad. The toothbrush appears have blue, white, and yellow on the stationary part of the brush. The brush of the tooth brush has a glorified glow behind it in white. The bottom left of the
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
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?
In 1988 and 1989 , its market shares were 33% of whole mouth-wash market while it slightly came down to 32.3% in 1990. It is good that the company didn't let its market shares decline despite introduction of new products. But it is also noticeable that the company did not make any progress in its market shares.
This was apparent with the case of Colgate ' Palmolive introducing a new toothpaste that fights not only cavities but bad breath, yellowing teeth, sensitive gums and also gingivitis.
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